Con Cung baby product chain reports 95% drop in 2022 profit

ConCung Investment Corporation (CCI), owner of the Con Cung baby product chain, made a post-tax profit of VND4.7 billion ($200,200) in 2022, down 95% year-on-year.

In 2022, the company's equity reached VND729.74 billion ($31.09 million), up 0.5% compared to 2021, according to its disclosure to the Hanoi Stock Exchange (HNX). Its debt to equity ratio increased to 3.35 times, compared to 2.56 in 2021.

Notably, ConCung Investment no longer records outstanding bond debt in its equity. In 2021, it issued VND50 billion ($2.1 million) in bonds with an interest rate of 11% per year. These were non-convertible bonds without collateral and share purchase rights.

ConCung Investment is the parent company of Con Cung JSC which invests, owns, develops, and operates the Con Cung baby product chain.

Its main business activities are market research, public opinion polling, management consulting, and information technology services.

The Investor data shows that from 2017-2019, ConCung Investment did not generate a net profit, and in 2019 its net revenue was negative VND737 million ($31.4 million).

However, in the first half of 2020, despite the effects of Covid-19, the firm recorded an after-tax profit of over VND25 billion ($1.06 million), up 21 times over the previous year, while equity reached VND416 billion ($17.7 million).

Con Cung JSC focuses on developing retail chains for pregnant mothers and babies, including Con Cung, Toycity, and CF (Con Cung Fashion).

The representative of both companies is Nguyen Quoc Minh, who is also a representative of Liam JSC, another subsidiary of ConCung Investment.

Con Cung, established in 2015, quickly became a pioneering retail chain providing products for mothers and babies in the Vietnamese market.

At the beginning of 2022, Con Cung had 800 stores, and is aiming to have 2,000 stores by 2025, according to its website. In terms of scale, the chain is far ahead of its competitors like Bibo Mart, Kids Plaza, Shoptretho, and Tuti Care.