MWG has announced its decision to dissolve Tran Anh, a subsidiary company, as part of its restructuring plan to optimize operations.
Tran Anh, an electronics chain, was acquired and merged with MWG in early 2018.
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Tran Anh, a well-known electronics supermarket chain, became a part of MWG at the beginning of 2018. At the time of the merger, Tran Anh had annual revenue of nearly VND 4,000 billion and served as a crucial stepping stone for MWG‘s expansion into Hanoi and the Northern market.
MWG’s financial report disclosed an investment of nearly VND 861 billion, equivalent to more than 99.3% of Tran Anh’s shares, as of June 2024.
Prior to the dissolution of Tran Anh, MWG had already liquidated two other subsidiary companies, Logistics Toan Tin (established in 2021) and 4K Farm (established in 2020), as part of its strategic restructuring.
At an investor meeting in the first quarter of this year, MWG‘s Chairman, Mr. Nguyen Duc Tai, mentioned that the liquidation of inefficient subsidiaries like Toan Tin and 4K Farm was part of the company’s restructuring plan, which they refer to as “reducing quantity to increase quality.”
In addition to liquidating subsidiaries, MWG‘s management has also taken decisive action by closing down hundreds of electronics and mobile phone stores. The weakening consumer technology market and intense competition prompted the retail giant to implement stringent operational optimization measures. From the beginning of 2023 to June 2024, 191 Dien May Xanh and 144 The Gioi Di Dong stores were shut down.
| Attached documents: |
| 20240819_20240819 – MWG – CBTT Trich Yeu Noi Dung Nghi Quyet HDQT So 10.pdf |
Mobile World achieves revenue of VND118,000 trillion: TVs, tablets, and phones all decrease by 10% – 50%, while one product grows in both quantity and revenue.
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