BHS Electronics Company, owned by Mr. Nguyen Tu Quang, reduces capital from 10 billion VND to 1 billion VND amidst employee wage debt controversy.

Mr. Quang still holds 98% of the company's charter capital, equivalent to 980 million Vietnamese dong.

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On February 5th, 2024, Lao Dong newspaper reported that Mr. Tran Xuan Hoa (born in 1996, from Ha Tinh province) revealed that he was owed a total of more than 29 million dong in wages by BHS Electronics Joint Stock Company.

Ms. Nguyen Thi Anh Tuyet, Head of the Human Resources Department at BHS Electronics Joint Stock Company, represented the company at a labor dispute reconciliation meeting with Mr. Hoa on October 31st, 2023. At the meeting, Ms. Tuyet stated that BHS Electronics Joint Stock Company is facing many difficulties but committed to paying wages according to the agreed-upon schedule between the two parties.

However, the company did not fulfill this commitment. Up to now, BHS Electronics Joint Stock Company has not made any statements about the incident in the media.

BHS Electronics Joint Stock Company (abbreviated as BHS Electronic) was established on December 2nd, 2022, according to its business registration certificate. The company’s main business activity is manufacturing communication equipment. Its initial charter capital was 10 billion dong, with Mr. Nguyen Tu Quang contributing 98% and the remaining two shareholders each contributing 1%.

It is known that since July 2023, BHS Electronics Joint Stock Company has reduced its charter capital from 10 billion dong to 1 billion dong. The legal representative has changed from Mr. Tran Viet Hai (born in 1986), the General Director, to Mr. Nguyen Tu Quang, the Chairman of the Board of Directors cum General Director. Mr. Quang still holds 98% of the company’s charter capital, equivalent to 980 million dong.

Previously, in May 2022, Bkav widely announced the launch of its subsidiary, Bkav Hardware Solution (BHS), providing research, development, and production of electronic products, operating as an ODM manufacturer, similar to the Foxconn model.

According to Bkav’s introduction, BHS has obtained the Golden Design Partner certification from Qualcomm, one of the world’s largest chipset manufacturers.

BHS provides technology solutions in various fields, including mobile devices, AIoT products, Automotive, and network equipment. Moreover, BHS develops System on Module (SOM) modules packaged as solution sets to expedite the development process by eliminating design complexity, allowing customers to focus on solution innovation.

In October 2022, through Facebook, Bkav’s CEO, Mr. Nguyen Tu Quang, personally called for Bfans to invest in BHS with an interest rate of 10% per year. After 3 years, investors will receive the principal amount back plus additional cash equal to the principal amount. The registration limit is 100 million dong under a business cooperation contract.

According to Mr. Quang, BHS has recently entered into partnerships with the two largest chip manufacturers in the world, Qualcomm and MediaTek. The AI View camera has been sold in the United States and is beginning to expand into the markets of Malaysia, Thailand, and Singapore.

Therefore, in order to promote and seize market opportunities, Bkav plans to spin off these segments into independent companies, requiring additional capital.

Prior to that, in May 2021, another Bkav subsidiary, Bkav Pro, raised 170 billion dong through bonds. Bkav said that the funds from the issuance of Bkav Pro bonds will be used to expand and develop the AI View camera; invest in digital transformation; and partially allocate to the development of affordable Bphone models with the goal of reaching a wider market and accessing more customer segments.

However, the separate financial statements for Q4/2023 of VNDirect Securities Joint Stock Company revealed a difficult-to-collect accounts receivable of nearly 31.6 billion dong (as of December 31st, 2023) for Bkav Pro.

In terms of business performance, after reaching its record high in 2019 with revenue of 176 billion dong and profit of 118 billion dong, Bkav Pro only earned a net profit of 4.4 billion dong in the first 6 months of 2023, a decrease of over 74% compared to the same period last year.

SOURCEcafef
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