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9 Dec

FPT sells iPhone 12 Series

The event to open sales of iPhone 12 at 261 Khánh Hội, District 4, HCM City on Friday evening. — Photo courtesy of FPT

HÀ NỘI — FPT Shop and F.Studio by FPT systems started selling the iPhone 12 Series from Friday.

This is the first chain authorised to sell the phone in Việt Nam.

FPT Shop and F.Studio by FPT organised a programme to open the sales at 12am on Friday at its store at 261 Khánh Hội, District 4, HCM City.

Customers who deposited previously and picked up the device at the event received a set of gifts worth up to VNĐ6 million (US$260) and more.

In addition, FPT Shop also offered accessory combos to customers who come to receive the devices on Friday morning at three stores of 261 Khánh Hội, District 4, HCM City; 422 Cầu Giấy, Hà Nội and Lot A1 Nguyễn Văn Linh, Đà Nẵng.

Previously, FPT Shop launched a programme to pre-order the iPhone 12 Series from October 14 to Thursday and received more than 41,000 orders by noon on Thursday. — VNS

According to Vietnamnews

Published November 27, 2020

21 Oct

Two representatives from Vietnam are in the list of powerful businesswomen in Asia by Forbes Asia

25 most outstanding female leaders in the Asia-Pacific region will be in the list of most powerful businesswomen of Asia this year. The two Vietnamese representatives that are in this list are Ms. Truong Thi Le Khanh, the founder and the Chairwoman of Vinh Hoan Company and the Chairwoman Nguyen Bach Diep of FPT Retail.

2020 is the year that leaders have continuously experienced many challenges because of the Covid-19 pandemic. 25 entrepreneurs honored by Forbes Asia this year did and have been undergoing many difficulties, showing their morale in chaotic period.

These female entrepreneurs represent for many industries, from biotechnology, technology finance, technology education to more traditional industries such as retail, logistics and law. These excellent individuals either own companies with huge revenue or startups that are worth more than 1 billion dollars.

The Vietnamese person that was first mentioned in Forbes Asia’s list is Ms. Truong Thi le Khanh. During the past 23 years, Ms. Khanh has led Vinh Hoan Company to become a listed seafood company with the largest market capitalization in Vietnam.

In 2019, Vinh Hoan was an enterprise with the best business results in the fisheries sector, with the net profit of USD 50 million and revenue of USD 340 million.

Ms. Khanh had been working for state-owned companies for 10 years before she established Vinh Hoan Company in 1997. At the present, the company has more than 6000 employees and 6 processing plants.

The Chairman of Vinh Hoan Company shares that their main business is in international market, while the downtrend of the global F&B industry has caused the company’s revenue to drop by 20% this year. Currently, she is looking for a new growth engine for her business by expanding the domestic market and cooperating with partners in Europe.

The other business woman that was honored in the list is Ms. Nguyen Bach Diep, the Chairman of FPT Retail. Ms. Diep graduated from Open University and started her work at FPT in 1997. In 2017, Ms. Diep became the Chairman of FPT Retail and has led the company to become the second largest electronics retailer in Vietnam with more than 630 stores nationwide.

In 2017, she promoted the pharmaceutical retail sector for FPT Retail through the acquisition of a majority of shares in Long Chau pharmacy chain and expanded the chain from 4 to nearly 160 stores. With the aim to meet the demand of pharmaceutical products during the pandemic period, FPT Retail plans to newly open 60 pharmacies this year.

According to Forbes Asia.

Published September 15, 2020

21 Oct

The Chairman of FPT Retail is in the top 25 most powerful businesswomen in Asia in 2020

Mrs. Nguyen Bach Diep, the Chairman of the Board of Management of FPT Retail, has just been honored by Forbes Asia Magazine in the list of the 25 most powerful businesswomen in Asia in 2020.

FPT Retail’s Chairman, was honored as one of the 25 most powerful businesswomen in Asia announced by Forbes Asia.

Accordingly, Forbes Asia Magazine has just announced 25 most powerful businesswomen in Asia 2020 (Asia’s Power Businesswomen). This year, the representatives came from many countries in the region such as Japan, China, Korea, Singapore, etc. and participated in many different business fields.

Mrs. Nguyen Bach Diep, the “Female General” of FPT Retail, is one of the two representatives from Vietnam honored in this list. 2020 is the year that leaders have continuously experienced many challenges because of the Covid-19 pandemic.

According to Forbes, Ms. Nguyen Bach Diep started her career at FPT, a leading technology corporation and the parent company of FPT Retail, in 1997 right after graduating from university. “Since joining FPT Retail 8 years ago and becoming the Chairman in 2017, Ms. Nguyen Bach Diep has contributed to develop the company into the second largest technology equipment retailer in Vietnam with more than 630 stores nationwide. In 2017, she joined the pharmaceutical retail sector with the acquisition of a majority shares in Long Chau pharmacy chain and expanded the number of stores from 4 to 160. With the aim to meet the high demand of pharmaceutical products during the pandemic period, FPT Retail plans to newly open 60 pharmacies this year”, according to Forbes Asia.

It is known that Forbes Asia Magazine published the list of 50 excellent leaders of the region in 2012. Since that time, the name of the list and its criteria have been changed a number of times: in 2013, it was renamed to Women In the Mix; in 2018, it was Emergent 25 and in 2019, Asia’s Power Businesswomen.

According to Thanh Luan, Thanh Nien.

Published September 15, 2020.

16 Jul

FPT Shop most engaging brand on Facebook in Vietnam: report

A store of FPT Shop in the northern city of Hai Phong. Photo courtesy of FPT Shop.

FPT Shop under FPT Retail, Vietnam’s second largest electronics retailer, has topped the list of 10 brands garnering the most interactions on Facebook.

FPT Shop’s fanpage recorded a total of 7.3 million interactions on Facebook in the first half of 2020, followed by Lazada Vietnam (6.4 million) and Shopee Vietnam (5.2 million), according to a report by Prague-based social media marketing company Socialbakers.

The fanpage of food review and delivery startup Foody Vietnam ranked fourth with a total of 4.9 million interactions.

Socialbakers said in its report that “The global Covid-19 pandemic clearly shows the importance of launching social media campaigns to contribute to improving business efficiency.”

Facebook is the most popular social media network in the country of 96 million people. Vietnam ranked a global seventh in number of Facebook users with 58 million, or 75 percent of the population aged 13 or more, according to a report released last year by U.K. advertising agency We Are Social.

According to Hoang Phong, VnExpress

Published July 14, 2020

24 Jun

2020 is the year when FPT Retail is at the bottom of business, the Company is ready for new products

2020 is the year when FPT Retail is at the bottom of business

On 28 May afternoon, FPT Digital Retail Joint Stock Company (FPT Retail, HoSE: FRT) held the General Meeting of Shareholders of 2020. In 2020, the Company sets the target of VND 15,320 billion of revenue, down by 8%, and VND 220 billion of profit before tax, decreased by 21%.

In 2019, FPT Retail’s revenue was increased by more than 5% to nearly VND 17,000 billion, and profit before tax, decreased sharply by 36% to VND 278 billion. According to the Chairman of the Board of Management Ms. Nguyen Bach Diep, such result was because at the end of last year, the Company made provision for bad debts for 2 programs, F.Friend and Subsidy for loyal customers, and also handled the accessories inventories, promoted the investment for Long Chau pharmacy and information technology system.

According to the leader, for the plan in 2020, the Company has taken the impact of Covid-19 pandemic and the closing of stores in April due to social distancing into account. The bright spot during that period was the online sales witnessed a significant increase, which contributed 50% to the total revenue, compared to the rate of 25% before.

Regarding FPT Shop chain, its revenue is expected to be down from VND 16,123 billion to VND 13,820 billion due to the intentional decrease of revenue of F.Friend and Subsidy programs. Because there is a down sign in the number of visitors, the Company has determined to increase the successful rate and average value of the orders, as well as expand customer groups.

In terms of Long Chau chain, the Company plans to open 150 new stores to increase the number of stores to 220 at the end of the year; accordingly, it is anticipated that the revenue will rise from VND 500 billion to VND 1,500 billion. The Company will also promote the development of products with private labels such as functional foods, medical equipment, pharmaceuticals and cosmetics, etc.

With the target of VND 220 billion of revenue in 2020, Ms. Diep considered that was the bottom of business of the Company. The Company also intends to increase the accessories portfolio, along with reduce the costs such as investing in security cameras in order to save VND 30 billion of cost every year, requesting to increase the business productivity to 25%, etc.

For the plan in 2021, FPT Retail sets the target of VND 18,573 billion of revenue (VND 3,000 billion from Long Chau, in particular) and VND 250 billion of profit before tax. In 2022, the Company aims to achieve VND 21,827 billion of revenue (VND 4,500 billion from Long Chau, in particular) and VND 370 billion of profit.

Revenue in the second quarter may be decreased by 15 to 20% compared to that of the previous quarter

Assessing the impact of Covid-19, Ms. Diep said that the business results have been affected from the end of March. Particularly, in April, the Company had to close about 170 stores, equivalent to one-third of FPT Shop chain. Although the stores have reopened, Ms. Diep assessed that the people’s income had been affected, thus, the demand for non-necessities reduced, which resulted in the fall of revenue in the second quarter by 15 to 20% compared to that of the previous quarter.

Regarding the cost reduction, the Company also asked for adjustment of the premise rental from the owners and it was approved with a period of about 3 months (from April to June).

Currently, private pharmacies need a pharmacist in their name so that they can be put into operation, but for a pharmacy chain like Long Chau, there is no legal problems in the procedures when the Company is the entity that owns that pharmacy chain, the pharmacist is only for professional value.

The Chairman of FPT Retail also emphasized that the investment in Long Chau is at an early stage, so the chain has not reached the break-even yet. The initial investment for the pharmacies depends on size but it may range from VND 400 million to VND 1 billion. Ms. Diep expected that by 2022, the chain can break even on an EBITDA basis.

Long Chau is expected to break even in 2022

Ms. Diep also admitted that there had not been any substitutes to ensure the growth of the Company. Drawing from that lessons, the Company has started to research on new business segments in order to ensure the growth when the pharmaceutical business comes into saturation stage like FPT Shop today.

Another leader of FPT Retail shared that the Company already has significant resources with 600 premises, stable customer volume and qualified personnel, which can easily help the Company to start with new suitable products. The current business lines that are in interest are selling air tickets, insurances or testing beauty products (FBeauty), etc.

At the moment, the aviation market is developing rapidly and the number of tickets is about 50 million units per year. FPT Retail’s leaders estimated that about 20% of air tickets are sold via corporate channel, 10 to 15% via online channel and the majority of 50 to 60% via retail agents, which is a huge market for the Company to exploit.

The Meeting also approved the appointment of an independent member of the Board of Management in place of Mr. Hoang Trung Kien. The nominated person was Mr. Nguyen Dac Viet Dung, whose date of birth was on 4th August 1974. Mr. Dung is currently the Chairman of the Board of Management of Sendo, it is expected that he will promote the development of FPT Retail’s online segment.

The Company also passed the distribution plan of dividends paid by cash with the rate of no more than 10% of 2019. The estimated timeline is in the third quarter. For 2020, FPT Retail sets the target that rate of dividends paid by cash will not exceed 15%.

According to Huy Le, NDH

Published May 28, 2020

24 Jun

FPT Retail’s General Meeting of Shareholders: Ready for new products

On 28 May afternoon, FPT Digital Retail Joint Stock Company (FPT Retail, stock code: FRT) held the General Meeting of Shareholders of 2020

In 2019, FPT Retail’s revenue was increased by more than 5% to nearly VND 17,000 billion, and profit before tax, decreased sharply by 36% to VND 278 billion. In 2020, the Company sets the target of VND 15,320 billion of revenue, which is down by 8%, and VND 220 billion of profit before tax.

Such result in 2019 was because at the end of last year, the Company made provision for bad debts for 2 programs, F.Friend and Subsidy for loyal customers, and also handled the accessories inventories, promoted the investment for Long Chau pharmacy and information technology system. For the plan in 2020, the Company aims to decrease its target because of the impact of Covid-19 pandemic and the closing of stores in April due to social distancing.

Regarding FPT Shop chain, its revenue is expected to be down from VND 16,123 billion to VND 13,820 billion due to the intentional decrease of revenue of F.Friend and Subsidy programs. The Company has determined to increase the successful rate and average value of the orders, as well as expand customer groups.

In terms of Long Chau chain, the Company plans to open 150 new stores to increase the number of stores to 220 at the end of the year; accordingly, it is anticipated that the revenue will rise from VND 500 billion to VND 1,500 billion. The Company will also promote the development of products with private labels such as functional foods, medical equipment, pharmaceuticals and cosmetics, etc.

Moreover, the Company also intends to increase the accessories portfolio, along with reduce the costs such as investing in security cameras in order to save VND 30 billion of cost every year, requesting to increase the business productivity to 25%, etc.

For the plan in 2021, FPT Retail sets the target of VND 18,573 billion of revenue (VND 3,000 billion from Long Chau, in particular) and VND 250 billion of profit before tax. In 2022, the Company aims to achieve VND 21,827 billion of revenue (VND 4,500 billion from Long Chau, in particular) and VND 370 billion of profit.

The General Meeting has approved the appointment of Mr. Nguyen Dac Viet Dung as an independent member of the Board of Management. The dividends of 2019 were approved at the rate of 10%. For 2020, FPT Retail expects the rate of dividends paid by cash will not exceed 15%.

According to VnReview

Published May 28, 2020

24 Jun

FRT’s General Meeting of Shareholders: ICT revenue will be decreased by more than 14%, while that of Long Chau pharmacy chain is expected to be increased by threefold to VND 1,500 billion

According to FRT, the Company has been affected by Covid-19 since March and in April, 170 stores closed, equivalent to one-third of FPT Shop’s total national scale, which has caused an impact on the whole business activities. After the social distancing was released in May, the stores were opened, however, the consumers’ demand is affected, their income was reduced, thus, the purchasing power and demand for non-necessities decreased. According to the preliminary forecast, the revenue of the second quarter may be down by 15 to 20% compared to that of the first quarter of 2020.

On 28 May afternoon, FPT Digital Retail Joint Stock Company (FRT) has held the Annual Meeting of Shareholders of 2020, approving the business plan in which the revenue will be decreased by 8% to VND 15,320 billion, profit before tax of VND 220 billion, down 21%. With the above target, the Company suggested that dividends in 2020 will be paid by cash with the rate of no more than 15%.

In 2020, the Board of Director aims to maintain the growth of ICT segment. This is also a fulcrum for FRT to invest in new business strategies. FRT plans to increase the turnover of the store chain by introducing sun glasses and watches under shop-in-shop model.

In contrast, after discovering the secret to success for the pharmacy chain, the Company will focus on investing, expanding the scale to 220 stores and increasing its coverage nationwide. The Company will also promote logistics. Long Chau chain has reached the milestone of 100 stores, and has decided on 40 locations to open new stores in the second quarter of 2020.

In the second quarter of 2020, the revenue is anticipated to be decreased by 15 to 20% due to Covid-19

Regarding the effect of Covid-19, Ms. Diep said that in general, the first quarter of 2020 was quite better than the fourth quarter of 2019, thanks to the favorable business index of the first 2 months.

Since March, the Company has been affected by Covid-19 and in April, 170 stores closed, equivalent to one-third of FPT Shop’s total national scale, which has caused an impact on the whole business activities. After the social distancing was released in May, the stores were opened, however, the consumers’ demand is affected, their income was reduced, thus, the purchasing power and demand for non-necessities decreased.

According to the preliminary forecast, the revenue of the second quarter may be down by 15 to 20% compared to that of the first quarter of 2020.

The new General Director, Mr. Hoang Trung Kien: “What am I going to do in my new position?”

In the opening speech, Mr. Hoang Trung Kien – the new General Director shared that: “In the new position, I understand that everyone is wondering what the new leader will do in order to bring value to the Company, the customers and shareholders. FRT’s strategy is to become to leading multidisciplinary retailer of Vietnam in the next 3 years. We will diversify the digital products, expand the scale under shop-in-shop model”.

Moreover, FRT will also stimulate the development of Long Chau chain after discovering the secret to success. In 2020, FRT plans to reach 220 pharmacies.

Lastly, according to Mr. Kien, FRT will seek for new business lines where the Company can promote retail chain management experience as well as experience in managing digital technology industry.

“I am also thinking on the next question is what I am going to do for that strategy. I always have in mind that I will contribute all of my capacity, by focusing on 3 things:

Firstly, technology, in order to improve the efficiency;

Second, personnel, in order to nurture and build key leadership force for the near future. With the expansion pace of the chain, the leadership enhancement is urgent;

Lastly, focusing on improving the culture and core values for the Company”, said the new General Director.

In 2019 – online sales were increased by more than 60% to VND 3,899 billion, contributing up to 24% to the Group’s total revenue

By the end of 2019, total assets were increased to VND 6,594 billion, the revenue was VND 16,634 billion, profit after tax was reduced by 41% to VND 204 billion, in which, online sales were increased by more than 60% to VND 3,899 billion – contributing more than 24% to the total revenue. Revenue of offline sales was nearly unchanged during the period, contributing 70% to the total revenue with VND 11,324 billion.

The turnover of 2 programs F-Friends and Subsidy witnessed a sharp decrease, which resulted in the fall of the Company’s turnover. The turnover of F-Friends was VND 800 billion in 2019, down 1.4%; that of Subsidy was VND 100 billion, which was deceased by more than 85% compared to that of the same period in 2018 (in 2018, VND 764 billion).

The profit of 2019 was affected by the system, which made the Group have to handle bad debts for 2 programs F-Friend and Subsidy. In addition, in accordance with the orientation of importing international accessories to increase the profit margin, in 2019, the Company must liquidate all domestic accessories

Finally, FRT also promoted the investment to speed up the opening of Long Chau, as well as the development of the information technology system (in order to reduce costs, increase benefits for the customers, etc.) in order to increase the operating capital.

In 2020, Long Chau chain anticipates to increase its revenue by threefold to VND 1,500 billion

In terms of the plan for 2020, Ms. Nguyen Bach Diep said that the Company will draw lessons from the previous year, for instance, reducing the investment in 2 programs F-Friends and Subsidy. Concurrently, due to Covid-19, the Company anticipates that the revenue will be reduced by 8%, profit before tax, by 21% down to VND 220 billion.

To be specific, the Company plans to reach the target of VND 15,320 billion of revenue in 2020, ICT segment will contribute VND 13,820 billion – down by more than 14% compared to that of last year (in 2019, the revenue was VND 16,100 billion). In contrast, for Long Chau chain, its revenue is expected to be increased dramatically by threefold from VND 500 billion (2019) to VND 1,500 billion. Long Chau chain also plans to reach 220 stores. Long Chau will expand its product portfolio, especially private label products such as functional foods.

 “Covid-19 scenario has been taken into account when calculating this figure”, the Company’s Chairman said. There was a bright spot in Covid-19 pandemic, Ms. Diep emphasized, on average, online sales contributed about 25% of the total revenue, while in the pandemic, the proportion rose sharply to 50%.

In 2020, FRT will also record results from cost-saving activities, such as installing cameras at stores to minimize the recruitment of security guards.

In addition to the trading of accessories, in 2019, there was a significant increase of profit with the growth rate of 26% (but still not reaching the target of increasing by 50% compared to 2018). Accordingly, accessories and digital sims continue to be the goal to improve the profits of 2020, the plan of the previous year has not been completed, so the Company will maintain the target of VND 1,000 billion of revenue from accessories and 1 billion sims.

By the end of the first quarter of 2020, there was a slight increase in the Company’s revenue to VND 4,141.5 billion. After deducting expenses, FRT recorded VND 35.6 billion of gross profit – which was decreased nearly by double compared to the first quarter of 2019.

According to the Company’s explanation, the gross profit plummeted due to Covid-19 pandemic, which also caused the factories in China to cease operating. Thus, the revenue of the first quarter of 2020 was decreased by VND 163 billion compared to that of the same period.

In addition, the first quarter was the time when the rental was increased periodically, and at the same time, FRT distributed salaries according to actual results, which led to a signigicant increase in management and sales cost.

Regarding the Board of Management, on 6 March 2020, Mr. Nguyen The Phuong had a resignation letter from the position of member of the Board of Management. After Mr. Hoang Trung Kien holds the position of General Director, he will no longer be an independent member of the Board of Management. Accordingly, the Company has elected Mr. Nguyen Dac Viet Dung as an independent member of the Board of Management.

According to Tri Tuc, CafeF

Published May 28, 2020

24 Jun

FRT’s General Meeting of Shareholders: Encroaching on “self-made products”, Long Chau chain plans to reach the revenue of VND 1,500 billion

At the General Meeting of Shareholder of FPT Digital Retail Joint Stock Company (stock code: FRT), which was in this afternoon, Ms. Nguyen Bach Diep, Chairman of FRT’s Board of Management, said that Long Chau chain aims to increase its revenue by triple to VND 1,500 billion, which is by expanding the number of stores to 220 in 2020. And Long Chau is also promoting the development of “self-made” products of functional foods, medical equipment, pharmaceuticals and cosmetics. In the second quarter of 2020, FRT’s revenue may be decreased by 10 to 15% due to Covid pandemic.

Sharing at the General Meeting, Ms. Diep said that in the first quarter of 2020, FRT achieved quite good results compared to the fourth quarter of 2019, however, in the second quarter of 2020, the revenue could be reduced by 15 to 20% compared to the first quarter. Due to the impact of the Covid pandemic, one-third of the total number of FPT Shop, equivalent to 170 stores, closed and although opened in May, the consumers’ demand still sharply decreases.

However, during the closing, FRT asked for the adjustment of the rental price and also acquired approval. The duration of the discount is 3 months, from April to June of 2020. This is a great support for the overall business results of the Company.

In 2020, the revenue of the pharmacy chain grows while that of FPT Shop chain decreases

In 2020, FRT plans to achieve VND 15,320 billion of revenue and VND 220 billion of profit before tax, down by 8% and 21% respectively compared to the initial target of 2020.

Regarding the revenue structure, Ms. Diep said that after assessing the impact of the Covid pandemic, FRT set a target of VND 13,820 billion of revenue from FPT Shop chain, while that in 2019 was VND 16,100 billion. And in 2020, the Company will proactively minimize the flaws and weaknesses of F-Friends and Subsidy in 2019, which will also affect the Company’s revenue.

“2020 can be considered the year when FPT retail system is at the bottom,” Ms. Diep said.

In order to achieve the above revenue target, according to Ms. Diep, the Company will continue to promote online sales for FPT Shop chain. In the previous pandemic, online revenue has contributed up to 50% to the Company’s total revenue, while on average, it was 25%.

Besides the common difficulties in the market, the decline in non-essential needs and the flow of visitors at store will affect FRT in achieving its target of exploiting sales opportunities.

Ms. Diep took a specific example, if in the past, we could only successfully reach the deal with 3 out of 10 visitors, now our goal is to successfully reach the deal with 5 visitors. At the same time, we will boost the average value of the invoices, for instance, on average, an invoice of a customer is at VND 5 million, now we will try to stimulate their spending, to VND 7 million by instalment payment policy, for example.

Moreover, the Company will diversify the customer group instead of passively waiting for the customers to come to the stores, to be specific, the Company will cooperate with Mobifone, DH FPT, or FPT Telecom.

For Long Chau chain, the significant increase in its revenue is due to the continuing expansion of stores

“Long Chau’s gross profit margin is higher than that of mobile segment, by nearly 3%. However, this is just the beginning, after the investment period, dominating the market, reaching a stable scale, negotiating with the firms, and implementing the strategy of self-producing some products will definitely improve the profit margins,” said Ms. Diep.

Regarding the expansion of Long Chau chain in a time when the Company has not yet generated profits from this segment, along with large debts and being affected by the Covid pandemic, Ms. Diep said that opening a new business chain requires investment and losses at the start. The important thing is when the number of new stores opened is less than the number of existing stores, will come the chance of break-even.

Besides that, when the scale is large enough, the ability to negotiate with the landowners will have an effect. In addition, the ability to manage the cost of deploying back-office teams to support the business teams will be more optimal, and gradually it will become fixed costs.

“The same story happened for FPT Shop, it used to incur losses for 2 to 3 years during its expansion. However, in the following years, it has been growing very quickly”, Ms Diep said, “For Long Chau pharmacy, it will break even and gain profits after 6 months”.

Sharing at the General Meeting of Shareholders, the Chairman of FRT said that stabilizing the cash flow is also a key goal of the Company, thanks to the cash flow from 600 FPT Shops (with no current expansion plan), the optimal management of inventories, negotiation with the suppliers on time of delivery and term of payment.

Regarding to target of reaching VND 220 billion of profit, Ms. Diep said that the Company will try efforts to achieve VND 1,000 billion of turnover from accessories (in 2019, only VND 800 billion). FRT expects the investment in technology improvement in 2019 will help optimize the costs in 2020.

New business line expansion

Mr. Hoang Trung Kien, General Director, said that FRT is oriented to become the leading multidisciplinary retailer in Vietnam in the next 3 years, through the diversification of digital lines and the development of shop-in-shop model. At the same time, the Company will continue to focus on investing in Long Chau pharmacy chain after finding its secret to success in 2019.

Currently, FRT and the Board of Directors of Long Chau has proceeded the expansion, in the past week, it is declared that there have been 100 stores nationwide. In 2020, Long Chau chain aims at reaching 220 stores.

Simultaneously, FRT is also seeking for new business chances, new business lines to promote existing experience such as retail chain management, technology-based management, customer service experience, etc. In the reports to the Meeting, the content of supplementing new business lines is for the purpose of preparing for this goal.

“These are the motivations for FRT in the next 3 years”, said Mr. Kien.

 

In 2019, FRT has to make provision of approximately VND 100 billion to handle bad debts

In 2019, FRT’s revenue was VND 16,634 billion, up 9% compared to that of the previous year; profit before tax was VND 278 billion, down 26%. The reason for the decrease was mainly because FRT made provisions for bad debts in the fourth quarter of 2019; invested in digital conversion for FRT, including 2 chains being FPT Shop and Long Chau, and expanded Long Chau chain.

Ms. Nguyen Bach Diep said that, in 2019, the turnover of 2 programs F-Friends and Subsidy witnessed a sharp decrease, which resulted in the fall of the Company’s turnover. To be specific, the turnover of F-Friends was VND 800 billion, down 1.4%; that of Subsidy was VND 100 billion, which was deceased by more than 85% compared to that of the same period in 2018 (in 2018, VND 764 billion).

The profit of 2019 was affected by the system, which made the Group have to handle bad debts for 2 programs F-Friend and Subsidy. The provision made in 2019 was about VND 100 billion, while in 2020, only VND 10 to 15 billion.

In addition, in accordance with the orientation of importing international accessories to increase the profit margin, in 2019, the Company must liquidate all domestic accessories.

According to Phan Hang, Dau tu Chung khoan

Published May 28,2020