Founded in 2024, initially operating in the field of online games. Later, VNG under the leadership of Mr. Lê Hồng Minh continuously expanded its operations, launching the online messaging platform Zalo (in 2012), Zalo Pay (2016), cloud computing and data centers (2006-2007), computer programming, software production, and commercial advertising…
Among them, Zalo is considered VNG’s most successful platform, currently used by 77 million monthly active users (MAU) as of the end of June 2024, an increase of 2% compared to the same period last year, with 1.9 billion messages sent daily, an increase of 7%.
In the gaming sector, VNG remains the market leader in Vietnam with popular titles such as Võ Lâm Truyền Kỳ and Kiếm Thế. The online gaming service is the most revenue-generating segment for VNG in recent years.
This year, VNG aims for a revenue of 11.069 trillion VND, with a post-tax profit of about 150 billion VND. The VNG Board of Directors aims to continue developing business sectors in the direction of diversifying products and services and expanding the market. In addition to continuing to invest in products such as electronic games, advertising, data centers, and cloud computing, the company will increase investment in products utilizing artificial intelligence (AI).
VNG sets a target for the next three years, where revenue from foreign markets in the online gaming and AI cloud computing sectors will account for a higher proportion than domestic revenue.
Currently, VNG has a charter capital of 358.4 billion VND, in which VNG Ltd is the main shareholder, holding 49% of the capital, BIGV Technology Joint Stock Company holds 17.84% of the capital, and Mr. Lê Hồng Minh, CEO of VNG, holds 8.846% of the capital…
At the beginning of 2023, VNZ shares of VNG officially traded on the UpCoM exchange at a price of 240,000 VND/share, then continuously skyrocketed to a record price of 1,434,700 VND/share and has been steadily declining to the current price of 488,000 VND/share.
In 2014, VNG was valued at 1 billion USD according to the World Start-up Report, becoming the first technology unicorn in Vietnam. VNG once planned to go public in the US but later announced to postpone this plan.
However, VNG’s business results have somewhat declined over the past three years, with continuous increases in losses. From 2021 to 2023, the company reported losses of 72 billion VND, 1.534 trillion VND, and 2.317 trillion VND, respectively.
In the first half of this year, VNG achieved consolidated revenue of 4.314 trillion VND, up 30% compared to the same period last year. In the revenue structure, online gaming services continued to account for the highest proportion, reaching 72%. Additionally, value-added services in telecommunications and internet services, as well as online advertising services, also contributed to revenue.
However, expenses such as sales costs and large corporate management costs have “eaten away” profits, along with losses from affiliated companies, causing VNG to incur nearly 586 billion VND in losses. However, this amount is still lower than the loss of 1.205 trillion VND in the same period last year.
In the first half of the year, VNG still recorded a loss of 18 billion VND from affiliated companies. In the same period last year, the company recorded a loss of 206 billion VND.
VNG has 11 direct subsidiaries and 27 indirect subsidiaries. As of June 30, the company invested more than 2.213 trillion VND in affiliated companies such as Tiki Global, Telio, Funding Asia, and VTH… These businesses are mainly established abroad. However, this investment has incurred a cumulative loss of more than 1.047 trillion VND, reducing VNG’s investment value to 1.166 trillion VND.
VNG also holds a large amount of cash and deposits. As of June 30, the company had more than 3.402 trillion VND in idle cash, down 14% compared to the end of last year. The enterprise has total assets of over 10.126 trillion VND.
Regarding loans, VNG has a financial debt of 2.031 trillion VND, an increase of 37% compared to the beginning of the year. Among them, short-term debt accounts for 71%. The debt-to-equity ratio is 1.2 times.