VNG (VNZ) sued for copyright infringement
On October 13, 2023, the High People's Court in Ho Chi Minh City will hear the appeal of the lawsuit between TK-L Media JSC and VNG JSC (VNZ).
Accordingly, TK-L Joint Stock Company is the exclusive unit to exploit the 3 films “The Story of Minglan – Minh Lan story”, “Princess silver - Bach Phat Vuong Phi”, “Legend of the Phoenix – Phuong Dich” in Vietnam. TK-L discovered that VNG had copied, stored and exploited these 3 films on the website tv.zing.vn.
VNG (VNZ) was sued for copyright infringement, may have to pay 14.3 billion VND in compensation (Photo TL)
TK-L Company filed a lawsuit and the Court of First Instance decided on September 29, 2022, forcing VNG to pay 14.3 billion VND in compensation for copyright infringement of the above 3 films.
The above lawsuit took place in the context of VNG having many changes in its shareholder structure, along with the unit's business situation facing many problems.
Founder Le Hong Minh sells nearly 1 million shares to BigV
On August 22, 2023, Mr. Le Hong Minh, Member of the Board of Directors, General Director and Founder of VNG Corporation, completed the sale of nearly 1 million shares to BigV Technology Corporation.
The volume of shares traded was 983,783 VNZ shares. After the transaction, Mr. Minh still holds 2,542,054 shares. This means that Mr. Minh's ownership ratio has decreased from 12.27% to only 8.85%.
The transaction was conducted in the form of an agreement, and it is estimated that BigV Technology had to spend 929 billion VND to carry out this transaction. And VNZ shares were sold to BigV at an average price of about 944,700 VND/share.
Also after the above transaction, the number of shares owned by BigV Technology JSC was increased to 6.11 million shares, equivalent to 21.26% of charter capital. BigV is also the unit that has continuously bought VNZ shares in the recent past.
VNG has suffered consecutive losses for many quarters.
VNG's business results over the past year have also fluctuated as the company has continuously suffered losses for many consecutive quarters. In just one year from the first quarter of 2022 to the end of the first quarter of 2023, the company has not recorded any profits.
The peak loss was in the fourth quarter of 2022 with a negative VND547.4 billion. In 2022 alone, VNG's accumulated loss for the year reached VND1,533.9 billion. In the first quarter of 2023, VNG's revenue reached VND1,852.5 billion, still with a loss after tax of VND90.1 billion.
VNG's loss situation has just stopped in the second quarter of 2023. Revenue reached VND 2,245.9 billion, up more than 11% over the same period. Gross profit reached VND 1,099.3 billion, gross profit margin reached 48.9%.
Financial revenue in the period was VND24.4 billion, down half compared to the same period last year. Meanwhile, financial expenses increased 11 times, from VND7.5 billion to VND83.7 billion. Business activities at affiliated companies also recorded a loss of VND22.1 billion.
VNG's selling expenses and administrative expenses in the second quarter of 2023 were both recorded at high levels, VND554.3 billion and VND344.4 billion, respectively. The company's after-tax profit reached VND50.2 billion, just enough to help VNG escape losses.
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