Rạng Đông Plans to Pay 50% Cash Dividends for 2024

According to the 2025 Annual General Meeting documents of Rang Dong Lightbulb and Jar Joint Stock Company (RAL), the company plans to distribute a 50% cash dividend for 2024, as per the resolution of the 2024 Annual General Meeting.

RAL has already paid two cash dividend installments for 2024, each at a rate of 25%, on August 28, 2024, and May 15, 2025, respectively.

The Board of Directors also intends to present to the shareholders for approval, a related-party transaction involving Gia Loc Phat Joint Stock Company.

The proposed transaction value for the upcoming period exceeds 35% of the Company’s total assets, as per the latest financial statements. The transaction is expected to take place between 2025 and 2026, until the next Annual General Meeting.

Previously, in 2024, the transaction value with Gia Loc Phat amounted to VND 3,077 billion, accounting for 37.03% of the Company’s total assets. Gia Loc Phat has been a long-standing major customer of RAL since 1990, contributing 60-70% of the Company’s total revenue in the North in recent years.

In the last six months of 2024, when cash flow was particularly challenging, Gia Loc Phat provided capital support to enhance RAL’s business performance. They also boast a nationwide distribution network, which has been instrumental in boosting RAL’s sales and revenue.

Currently, Mr. Le Dinh Hung, a member of the Supervisory Board (term 2022-2027) of RAL, also serves as the Chairman of Gia Loc Phat’s Board of Directors. Mr. Hung and his sister, Le Thi Kim Yen, are major shareholders of RAL, holding 9.26% and 11.1% stakes, respectively.

Additionally, the Board of Directors seeks shareholder approval to authorize the Board to proceed with the necessary procedures for the implementation of the project “High-tech electronic product manufacturing plant integrated with a smart LED lighting ecosystem.”

On April 28, 2021, the Company received the Investment Registration Certificate No. 48/QD-CNCHL from the Management Board of Hoa Lac High-Tech Park, approving RAL as the investor for this project.

The Company is currently in the process of completing the necessary procedures for the investment project.

Rang Dong, with its iconic lightbulbs and jars, has been a familiar brand in millions of Vietnamese households, evoking memories of the subsidy period and symbolizing a long-standing domestic brand.

Established in 1961, the company has been operating for over 60 years and focuses on three main segments: lighting, jars, and smart solutions, with an extensive distribution network.

Recently, the company released its first-quarter financial report for 2025, reflecting a decline in performance. Revenue reached VND 1,528 billion, a 46% decrease compared to the same period last year. Net profit amounted to nearly VND 101 billion, a 48% drop year-over-year.

The company attributed the decrease in business results to several reasons, including intense competition from foreign goods, especially Chinese products and companies relocating to Vietnam. Additionally, a significant number of enterprises exited the market, with 67,000 businesses withdrawing in the first two months of 2025 alone, double the average for 2024.

Moreover, foreign retail conglomerates with their advanced organization and experience, modern business models, and online and O2O platforms, have been rapidly capturing the Vietnamese market of over 100 million consumers, attracting customers away from Rạng Đông.

The rapid evolution of the I-4.0 revolution, particularly the widespread adoption of 5G, artificial intelligence (AI), and renewable energy, also poses a direct threat to the company’s development.