The Demise of Tran Anh: Unraveling the Reasons Behind its “Disappearance”
In a recent development, MWG, a prominent investment company, has made a move that has caught the attention of the market. The company has decided to dissolve its subsidiary, The Gioi So Tran Anh Joint Stock Company, widely known for its Tran Anh electronics store chain. This decision was communicated through an official announcement to the State Securities Commission of Vietnam, the Vietnam Stock Exchange, and the Ho Chi Minh City Stock Exchange.
Tran Anh electronics chain faces an uncertain future.
The Gioi So Tran Anh, with MWG holding a significant 99.33% of its charter capital, has been a well-known name in the electronics and IT equipment distribution industry, particularly in the Northern market. However, MWG’s decision to restructure its subsidiaries to optimize operations has led to this unexpected turn of events.
Tracing back its history, Tran Anh was established in 2002 and quickly rose to prominence. During the period from 2007 to 2017, the company witnessed steady growth, peaking at a remarkable revenue of over VND 4,000 billion in 2016. However, their ambitious expansion plans took a turn for the worse, resulting in significant losses in 2017, amounting to over VND 60 billion.
The company’s journey included a listing on the Hanoi Stock Exchange (HNX) in 2010 under the code TAG, followed by a shift to Upcom and eventually losing its public company status in October 2022 due to non-compliance with legal requirements regarding shareholder structure.
In January 2018, MWG acquired 99.3% of Tran Anh’s charter capital, inheriting a network of over 30 supermarkets. This acquisition was intended to solidify MWG’s presence in the Northern market. Consequently, Tran Anh’s business model underwent a transformation, shifting from an independent retailer to a partner within the MWG ecosystem.
This strategic shift led to a significant decline in Tran Anh’s revenue, plunging from billions of VND annually to just over VND 100 billion. While selling expenses dropped to zero, the company’s profits primarily stemmed from financial activities. From 2019 to 2022, Tran Anh managed meager profits of a few billion VND each quarter.
How many subsidiaries are left in MWG’s portfolio now?
Prior to Tran Anh’s dissolution, MWG also liquidated two other subsidiaries, 4KFarm Joint Stock Company and Logistics Toan Tin Joint Stock Company, as part of their group restructuring strategy to optimize operations.
With a registered address in Vung Tau, 4KFarm focused on agricultural production and trading. MWG held a dominant 99% stake in the company’s charter capital, which stood at VND 162 billion. Ms. Chau Tran Kim Ngan, 34 years old, served as the company’s General Director and legal representative.
On the other hand, Logistics Toan Tin, based in Ho Chi Minh City, specialized in road freight transportation. Mr. Nguyen Phu Duc, 36 years old, led the company as its General Director and legal representative.
MWG continues to streamline its business portfolio.
Logistics Toan Tin played a crucial role as a service provider for MWG’s supermarket chains, including Bach Hoa Xanh, The Gioi Di Dong, and An Khang, offering warehousing and goods supply services nationwide. MWG held a near-total ownership stake in the company, with 99.99% of its VND 100 billion charter capital.
With the dissolution of Tran Anh, Logistics Toan Tin, and 4KFarm, MWG now has eight remaining subsidiaries under its belt. These include The Gioi Di Dong, Bach Hoa Xanh, The Gioi So Tran Anh, Dược Phẩm An Khang Pharma, Vui Vui, Cong Nghe va Dau Tu Bach Hoa Xanh, Tan Tam, and MWG (Cambodia). However, this isn’t the first time MWG has made such strategic moves to optimize its business portfolio.
In early 2023, MWG exited the Cambodian market after six years of operations to focus on other business models and markets. Additionally, their forays into fashion retail with AVAFashion and the e-commerce platform vuivui.com met with similar fates, with both ventures shutting down within a short span.
MWG also made the decision to discontinue the sale of eyeglasses in March 2020, just nine months after entering the market. Similarly, their venture into the budget smartphone market with Dien Thoai Sieu Re in August 2019 was short-lived, with the website ceasing operations and redirecting users to thegioididong.com in June 2020.
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