At the annual General Meeting of Shareholders for 2025, RAL set a revenue target of VND 6.1 trillion, a significant decrease from 2024. The profit before tax target is VND 395 billion, a 37% decrease and the lowest since 2019.
RAL’s leaders attributed the conservative business plan to a volatile market and intensifying competition. Foreign goods, especially from China, are flooding the Vietnamese market at low prices, while the relocation of manufacturing operations to Vietnam increases competitive pressure.
| RAL’s revenue and profit are forecast to decline sharply in 2025 |
Additionally, RAL expressed concerns about new tax policies. The abolition of the lump-sum tax and the introduction of a turnover-based tax calculation have led to requests for direct discounts on selling prices from distributors. This could potentially reduce the company’s revenue by an estimated 10%.
The first-quarter financial results reflect these challenges, with revenue of just over VND 1.5 trillion and profit before tax of VND 113 billion, both nearly halved compared to the same period last year.
Not only is the domestic market affected, but RAL’s exports are also expected to face hurdles. The possibility of increased import taxes in the US makes the outlook for LED exports uncertain. Meanwhile, tensions in the Red Sea and rising logistics costs negatively impact the export of kettles to the Middle East.
In 2025, the company plans to maintain a dividend payout ratio of 50% of charter capital, in cash, with the first payout in September 2025 and the second in April 2026, each accounting for 25%.
Addressing shareholders’ queries about allocating up to 60% of post-tax profits to funds, RAL’s leaders emphasized the exceptional nature of this year, requiring a focus on restructuring and consolidating operations. “Despite the challenges, we must ensure the company’s survival,” the leaders were quoted as saying in the meeting minutes.
RAL’s leaders conducting the 2025 Annual General Meeting of Shareholders on June 7. Source: FB Rang Dong Lamp
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The company intends to continue investing significantly in technology, particularly artificial intelligence (AI), to enhance its competitive edge. Therefore, retaining profits instead of distributing them entirely as dividends is necessary. Additionally, welfare funds play a crucial role in encouraging innovation and retaining high-quality personnel during challenging times.
Regarding the progress of utilizing the over VND 1 trillion raised from the 2021 offering for a high-tech factory in Hoa Lac High-Tech Park (Hanoi), as of March 2025, RAL had disbursed nearly VND 400 billion. The project, with a total investment of over VND 2.3 trillion, commenced in October 2024 and is expected to be operational by early 2027.
The delay in progress compared to the initial plan is due to a change in the managing authority from the Ministry of Science and Technology to Hanoi city, resulting in more complex procedures. However, RAL’s leaders view the postponement positively, as operating the factory amid weak consumption would not yield benefits even with increased production capacity.
At the meeting, Mr. Khuc Chi Tung, Head of Planning, was elected to the Supervisory Board for the 2022-2027 term.
– 10:05 10/06/2025
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