In a significant divestment, two individual investors successfully bid for shares of Giay Thuong Dinh Company, totaling nearly 1,380 billion VND. This transaction far exceeded initial estimates and occurred during an auction organized by the Hanoi People's Committee.

According to the Hanoi Stock Exchange, 15 individual investors registered to buy over 39 million shares of Giay Thuong Dinh Company. However, the Hanoi People's Committee offered less than 6.4 million shares for auction. The starting price for the divestment was 20,500 VND per share. In yesterday's auction, each Giay Thuong Dinh share sold for 216,000 VND, 10 times the initial price and three times the trading price on the stock exchange. The total value of the deal, nearly 1,380 billion VND, significantly surpassed the estimated starting price of 131 billion VND.

Giay Thuong Dinh has not yet disclosed the personal information of the two winning investors. To complete the transaction, these two investors must pay for the shares within one week.

On the stock exchange this morning, Giay Thuong Dinh shares continued their upward trend, reaching 82,800 VND. The stock has risen seven times compared to its price before the divestment information was announced. In two explanatory documents regarding the series of consecutive limit-up increases in late November and early December, Giay Thuong Dinh's leadership consistently stated that this was an objective development driven by market supply and demand. The company did not exert any influence on the share price.

Established in 1957, Giay Thuong Dinh was once a well-known brand, primarily famous for its canvas and fashion shoes. The company exported these products to former Eastern European and EU markets starting in 1985. In the early 1990s, this shoe brand held a near-monopoly. The image of canvas shoes with blue stripes on flexible rubber soles became familiar to many. However, Giay Thuong Dinh's golden age only lasted until the early 21st century. The brand was gradually pushed out of major cities due to competition from imported brands.

In the last 10 years, the company only reported profits in three years. In the remaining years, it incurred losses ranging from several hundred million to over 10 billion VND. Last year, the company produced over 811,000 pairs of shoes, generating nearly 79 billion VND in revenue, but recorded an after-tax loss of approximately 13 billion VND.

The management stated that they have explored all measures, such as securing domestic and international processing orders and expanding domestic distribution channels. However, due to outdated factories and fire prevention and fighting systems that do not meet approval standards, customer requirements could not be met, leading to a sharp decline in orders. The company has repeatedly faced auditor doubts about its ability to continue operations due to short-term liabilities exceeding short-term assets and after-tax losses. The auditors emphasized that the company's going concern depends on its ability to recover receivables, extend loans, settle payables to banks and suppliers, and achieve future business efficiency.

This year, Giay Thuong Dinh aims for a production output of 700,000-900,000 pairs. The company expects revenue and other income to reach 100 billion VND, along with a profit of 100 million VND. The management plans to intensify efforts to find export orders and stimulate domestic consumption. Additionally, the company intends to diversify by processing additional bags and briefcases to provide employment for workers and increase revenue.

Phuong Dong