Van Lang Technology Development and Investment Joint Stock Company (stock code: VLA) – a company specializing in selling investment and wealth creation courses, recently announced its Q2/2024 financial results with net revenue of only VND 1.4 billion, down 75% over the same period.
However, due to operating at a loss (VND 1.4 billion), along with a significant increase in selling expenses and management expenses, the company’s net profit was negative VND 5.3 billion, while in the same period last year, it made a profit of VND 53 million.
Notably, this is the third consecutive quarter that Van Lang Technology has reported losses since Q4/2023.
For the first six months of 2024, the company reported a net loss of nearly VND 6.9 billion. The value of the cash and cash equivalent portfolio plummeted compared to the beginning of the year, from over VND 20 billion to VND 6.2 billion.
VLA stock price movement over time Source: Fireant
Explaining the less-than-optimistic Q2/2024 financial results, Van Lang’s management attributed it to the “difficult economic conditions”, which led to a significant decrease in the number of students enrolling in their courses.
Van Lang Technology Development and Investment Joint Stock Company is known for its courses on investment and personal development.
The company’s Chairman of the Board of Directors is Mr. Nguyen Thanh Tien, a well-known speaker in the field of investment with millions of followers on social media.
Mr. Tien introduces himself as Vietnam’s highest-paid real estate trainer and claims to have trained over 200,000 students since 2012. His courses are offered for free and at a cost, with the paid ones priced as high as VND 180 million.
In its 2023 annual report, Van Lang stated that it had successfully organized courses such as Real Estate Investment Strategy, Intelligence 5.0, Effective Capital Mobilization Secrets, and Corporate Intelligence…
However, Van Lang itself has not been very successful in its investment activities.
Specifically, in 2022, Van Lang purchased a hotel in Quang Ninh province for VND 18 billion. The main purpose was to use a part of it as a representative office while maintaining the main business items such as the restaurant, hotel, and accommodation services.
However, due to difficulties in the process of transferring the ownership of the asset and the impact of the economy, the enterprise had to terminate this contract.
In the stock market, VLA stock once attracted attention when, in 2022, it had a series of rising sessions, pushing the stock price from VND 30,000/share to nearly VND 90,000/share – the highest level ever.
Up to now, this stock has plummeted and is fluctuating in the range of VND 14,000 – 15,000/share and is currently closed at VND 14,300/share.Compared to the beginning of 2024, VLA stock is down nearly 27%, but compared to its peak in 2022, it has dropped more than sixfold.
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