How do businesses handle their workforce during Tet holiday?

Approximately 2,000 employees of this company received Tet gifts in the form of a thick 7cm compressed cotton pad.

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Recently, the fanpage of May Song Hong – Song Hong Nghia Hung Joint Stock Company posted a picture of a team delivering mattresses for Tet. It is known that besides 2 months’ salary, this is the Tet gift from the company for its employees. This mattress is a pure cotton mattress from Song Hong, 7cm thick, worth over 4 million VND.

“This is the first year the company has given mattresses to all of its employees. Although it’s possible to convert the gift into cash, the company wants employees to bring home the products they produce themselves as gifts for their loved ones, which is more meaningful,” said a representative from May Song Hong.

May Song Hong – Nghia Hung Joint Stock Company is a subsidiary of Song Hong Joint Stock Company (HoSE: MSH). The company’s headquarters is located in Nghia Hung district, Nam Dinh province, and its main activity is garment production.

May Song Hong – Nghia Hung was established in 2013 with a charter capital of 250 billion VND. Currently, May Song Hong holds 51% of the capital in May Song Hong – Nghia Hung Joint Stock Company.

Photo: Fanpage of May Song Hong – Song Hong Nghia Hung Joint Stock Company

May Song Hong JSC is one of the leading garment and bedding manufacturers in Vietnam. This enterprise was established in 1988 under the name Factory 1/7, under the state ownership with 100 employees. In 1993, the factory changed its name to May Song Hong JSC. In 2004, the company was equitized and became May Song Hong Joint Stock Company.

According to the information posted on the company’s official website, the company has more than 20 production workshops concentrated in Nam Dinh province. This is an advantageous location in terms of geographical proximity to airports and seaports, trained labor force with quality and competitive costs, Vietnamese management combined with recruitment of international experts in the industry. The company has become a reliable partner of many famous fashion brands worldwide.

According to the newly announced consolidated financial report, in 2023, the company’s main activities were the production and processing of garments and the production of cotton, carpets, and mattresses. May Song Hong’s charter capital is over 750 billion VND.

The shareholder structure of this company as of December 31, 2023 is quite concentrated. Mr. Bui Duc Thinh – Chairman of the Board of Directors holds 23.91% of the charter capital, Mr. Bui Viet Quang – a member of the Board of Directors owns 11.35%, Ms. Bui Thu Ha owns 7.72%, Ms. Pham Thi Song Ngan owns 7.40%, FPT Securities Joint Stock Company holds 12.79%, and other shareholders hold 36.83%.

May Song Hong has 3 subsidiaries: May Song Hong – Nghia Hung Joint Stock Company with a charter capital of 250 billion VND, May Song Hong – Xuan Truong Joint Stock Company with a charter capital of 150 billion VND, and Song Hong BSS Logistics Joint Stock Company with a charter capital of 8 billion VND. As of December 31, 2023, May Song Hong and its subsidiaries have 11,809 employees, an increase of 2,360 employees compared to the end of 2022.

In terms of business performance, in Q4 2023, the company recorded a more than 1% increase in net revenue to 1,157 billion VND. May Song Hong reduced financial costs by 69% and selling costs by 14%. However, enterprise management costs increased by 21%. As a result, MSH’s Q4 profit increased by more than 150% compared to the same period last year, reaching over 81 billion VND.

Due to having more orders and additional revenue from Song Hong BSS Logistics Joint Stock Company, the company’s profit increased significantly in the last Q4, according to the company’s management.

For the full year of 2023, May Song Hong achieved a net revenue of 4,542 billion VND, a decrease of nearly 18% compared to the previous year and only achieved 95% of the set plan.

The company’s pre-tax profit for the year also decreased by 30% to 307 billion VND, equivalent to 88% of the target. After deducting expenses, the company made a post-tax profit of over 245 billion VND, a decrease of nearly 28% compared to the same period last year.

In 2023, May Song Hong set aside over 40.6 billion VND as a provision for difficult-to-collect debts. Of which, the highest amount is at Prime Apparel Group, nearly 27.8 billion VND, Quoc Te Nam Sao Joint Stock Company is 10 billion VND, and the remainder is from other customers.

The bonus and welfare fund of May Song Hong increased significantly, from nearly 35.8 billion VND in 2022 to 45.8 billion VND in 2023.

SOURCEcafef
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