“The ‘Pen King’ Thiên Long takes a ‘punch’ as demand weakens: Q4 2023 profits continue to plummet to only 28 billion VND”

TLG's profits have declined by over half compared to the previous quarter. This also marks the first time in "pen king's" history that they have not achieved a hundred billion profit milestone in the same period (excluding Q4/2022, where they incurred unexpected marketing expenses).

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The Thiên Long Group (TLG) has just announced its consolidated financial statements for the fourth quarter of 2023, reporting net revenue of VND 689 billion – a decrease of 7% compared to the same period last year. Deducting expenses, the company achieved a net profit of VND 28 billion, compared to a loss of VND 3 billion in the same period last year.

Compared to the previous quarter, TLG’s profit declined by more than half. This is also the second quarter to witness a rapid decline in profit. If we exclude the loss in the fourth quarter of 2022 due to the recognition of extraordinary marketing expenses, the fourth quarter of 2023 recorded the lowest profit in the history of year-end quarters.

Throughout 2023, the company recorded revenue of VND 3,462 billion and a net profit of VND 356 billion – a decrease of 11% compared to 2022.

To explain the above results, TLG states that the overall purchasing power of 2023 significantly decreased compared to 2022, both domestically and internationally. However, the company made great efforts to carry out sales programs to maintain revenue and market share. The company also invested in brand development and research for new products, which increased costs and impacted profit.

It is known that TLG, formerly known as Thiên Long Pen Company, was founded by Mr. Cô Gia Thọ in 1981. In 1996, Thiên Long Pen Company was transformed into Thiên Long Production Trading Co., Ltd.

In March 2005, Thiên Long Production Trading Co., Ltd officially converted into a joint-stock company with a capital of VND 100 billion. In 2010, the company was officially listed on HoSE with the ticker TLG.

Currently, the company is considered an “empire” in the production and trading of stationery. Its market capitalization is currently around VND 4,300 billion. The company is also the leading stationery manufacturer in Vietnam with a diverse range of products, including pens, office supplies, school supplies, and art supplies. This office stationery giant currently holds 60% of the domestic pen market and is actively expanding its export activities.