Yeah1 clears losses and raises capital for a new game in 2020

13:00 | 01/04/2020
Pouring investment in smaller-scale firms while being backed by soft drink giant Tan Hiep Phat is expected to help Yeah1 to recover from its tremendous losses last year.
yeah1 clears losses and raises capital for a new game in 2020
Yeah1 targets VND1.8 trillion ($78.26 million) in revenue in 2020

Yeah1 Group Corporation (HSX: YEG) has just published the documents related to its coming shareholders' meeting on April 9. After the vicissitudes of 2019, Yeah1 seems to anchor great hope in 2020, reflected by the 11 vital proposals it is planning to put to investors for approval.

Those include moving the new headquarters to 191 Nam Ky Khoi Nghia, requesting approval for several transactions with large shareholders and distributing part or whole of the 1.77 million treasury stocks worth VND141.7 billion ($6.16 million) purchased in last July.

Regarding its business plans, Yeah1 targets VND1.8 trillion ($78.26 million) in revenue, up 24 per cent on-year. The firm also expects its pre-tax profit to hit VND155 billion ($6.74 million), and the dividend rate will be 10 per cent.

Notably, another proposal would be to use the proceeds of a stock issuance from 2018 to double the company's charter capital by issuing one stock after each already in circulation. The issuance in question was conducted in August 2018, when the group issued 3.91 million stocks at VND300,000 ($13) for chairman Nguyen Anh Nhuong Tong. The proposed issuance of new stock this year would cost VND1.1 trillion ($47.83 million) of these proceeds.

At the same time, Yeah1 Group is also collecting suggestions about using the proceeds of the issuance to clear the VND307.7 billion ($13.38 million) accumulated losses.

In case these two proposals are approved, there will be VND512 billion ($22.26 million) left from the proceeds of the issuance which will be used to eliminate its losses from last year and help rebalance its books, creating a firm base for 2020.

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After the breakdown with YouTube last year, Yeah1 has been reaching for new plans, aiming to lessen its dependence on other tech giants. Specifically, the local media firm has been making increasing investments in small-scale platforms like Media One, Kolorlife, and Giai tri 100D. It also entered into co-operation with South Korea-based The E&M to develop a platform for celebrities, and with People & Story to launch a comic-book application.

Early this year, Yeah1 continued to partner up with Cambodia-based YAK Capital PLC to open a platform specialised in beauty. Accordingly, the projects will take advantage of Yeah1's current ecosystem to optimise its media impact.

However, it will take time for these projects to bear fruits for Yeah1, and the firm has recognised the need to jump into a larger game to assert itself and regain the trust of its investors – which it aims to do via the recent partnership with beverage manufacturer Tan Hiep Phat. 

Yeah1 is researching the new application called Mega1 to collect promotions for customers. The new app is expected to boost the Tan Hiep Phat’s sales increase to 50 per cent and reach 150 million interactions.

While the new campaign will bring economic gains for the two sides, but Yeah1’s targets go beyond that. At the signing ceremony with the soft drink maker on March 12, chairman Nguyen Anh Nhuong Tong said that Yeah1 is planning to convert dozens of millions of its users from YouTube and Facebook to Mega1. Reaching success with Tan Hiep Phat will be a launchpad for Yeah1.

 

 

By Van Anh

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