Sunday , August 14 2022

VNG to post record losses

Vietnam tech unicorn VNG Corp expects revenues to surge by 33 percent this year, but losses to rise nine-fold to an all-time high.

Its sales are expected to rise to VND10.2 trillion (US$439.5 million) from VND7.6 trillion last year.

Losses are likely to go up to VND993 billion.

Subsidiary Zion, operator of e-wallet ZaloPay, is dragging the company’s profits down. Last year it lost VND1.21 trillion, resulting in losses of VND72 billion for the parent.

At the upcoming annual general meeting, the VNG board plans to get approval for not paying dividends reinvesting in its payment, AI and cloud computing products.

It also proposes to acquire the 47 percent shares owned by foreign investors through VNG Limited, a legal entity founded in April in the Cayman Islands, a tax haven.

The transaction is likely to be linked to VNG’s plans for an international listing as the Cayman Islands’ regulations allow firms to fast-track foreign IPOs through special-purpose acquisition companies.

Last August, Bloomberg reported that VNG was considering going public in the U.S. through a merger with a blank-check company, which could put its valuation at $2-3 billion.

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