Vietnam tech unicorn VNG suffers $56 mln loss in 2022

Vietnamese tech giant VNG Corporation reported a loss of more than VND1,315 billion ($56 million) in 2022, a record since its business indices went public for the first time and breaking its loss target of VND993 billion ($42.35 million).

VNG's net revenue reached VND7,800 billion ($332.63 million), up 2% year-on-year, according to the company's consolidated Q4 financial statement.

In the fourth quarter of 2022, its net revenue was VND2,037 billion ($86.87 million), up 6%, and loss of VND547.4 billion ($23.34 million), while the same period last year saw a loss of VND267 billion.

By the end of 2022, VNG's total assets were more than VND9,092 billion ($387.73 million), down 1% compared to the beginning of the year. Of this, long-term assets increased 2.2 times to VND4,313 billion ($183.93 million), mainly due to an increase of nearly VND910 billion ($38.81 million) in construction cost of VNG Data Center. The center, a new data hub with the largest rack scale in Vietnam, opened in mid-December, 2022. Cash, cash equivalents and bank deposits were VND3,079 billion ($131.3 million).

In 2022, VNG poured more than VND1,000 billion ($42.64 million) into startups, but in the portfolio, only the investment in Dayone JSC - a data processing and leasing company - recorded a profit in the year.

As of December 31, 2022, the accumulated loss from VNG's investment reached VND643 billion ($27.42 million), of which the accumulated loss that VNG incurred from Tiki hit VND510 billion ($21.75 million), followed by Telio VND58 billion ($2.47 million), Funding Asia VND44 billion ($1.88 million) and Ecotruck VND24 billion ($1.02 million).

VNG's liabilities stood at VND3,758 billion ($160.26 million), while equity was VND5,333 billion ($227.42 million).

On the Unlisted Public Company Market (UpCOM), VNZ shares matched orders for the first time at Wednesday's closing session. With only 100 shares traded, VNZ increased by 40% to VND336,000 ($14.33 billion), equivalent to a market capitalization of VND12,000 billion ($511.74 million).

According to its information disclosure, as of November 28, 2022, VNG had three major shareholders: VNG Limited, headquartered in the Cayman Islands, holding 49% of charter capital or 61.1% of outstanding shares; BigV Technology Corporation with a 4.6% stake and accounting for 5.7% of outstanding shares; and Le Hong Minh, who owns a 9.8% stake and 12.3% of outstanding shares.

Founded in 2004 by Vietnamese businessman Le Hong Minh, 45 now, VNG is currently the leading technology services provider in Vietnam. It was officially valued at $1 billion in the World Startup Report, becoming the first unicorn in Vietnam.

Vietnamese tech giant VNG Corporation in January named Vo Sy Nhan as its new chairman, replacing Le Hong Minh. Minh remains to be general director of VNG.