During this morning's annual general meeting, shareholders repeatedly raised questions about the financial health of Yeah1 Group (YEG). This year's discussions differed significantly from previous years, which largely focused on the group's entertainment programs.

One shareholder requested an explanation from the board of directors regarding Yeah1's 2025 financial performance: revenue reached 1,653 billion VND, the highest in seven years, yet profit decreased by nearly 35% to just over 80 billion VND. The net profit margin was only 4.8%.

Responding to these concerns, Ms. Le Phuong Thao, chairwoman of the board, affirmed that the profit decline resulted from increased costs as the company invested resources into building platforms for sustainable development.

Last year, Yeah1 focused capital injection into the core systems of its Mango+ online content viewing application and the 1Creators platform. Concurrently, the group invested in concert organization, including LED screen systems, lighting, and sound equipment. This aims to differentiate Yeah1 in the market and establish a "new standard" for the entertainment industry. According to Ms. Thao, these efforts will build a foundation for Yeah1's sustainable growth, ultimately benefiting the audience.

"The increase in cost of goods sold and expenses is not because we 'buy revenue' or trade off for market share", Ms. Thao stated.

Ms. Le Phuong Thao, chairwoman of Yeah1 Group, speaking at the annual general meeting on the morning of 22/4. _Photo: YEG_

In business, the phrase "buying revenue" describes companies achieving high revenue by incurring excessive costs, resulting in low profits. Typically, cost of goods sold, marketing expenses, and promotions erode most revenue, leaving businesses with minimal real profit.

Experts suggest this situation might stem from a proactive business strategy, where companies accept "burning money" short-term to expand market share or attract customers. However, if this persists without improving profit margins, it signals a potentially unsustainable business model with significant financial risks.

Yeah1's leadership asserts they are not "burning money" because, in reality, their eight concert series last year sold out, attracting tens of thousands of spectators each night. For the Y-Concert at year-end, YEG reported approximately 60,000 tickets were sold.

A view inside a concert with 60,000 spectators organized by Yeah1 at the end of 2025. _Photo: YEG_

For this year, the company targets consolidated revenue of 1,650 billion VND, a slight 0.2% decrease. However, due to long-term platform investments, management expects reduced costs and improved profits. They anticipate an after-tax profit of approximately 105 billion VND, a 36% increase.

Growth drivers include launching new seasons of the shows "Anh trai vuot ngan chong gai" and "Gia dinh Haha", along with managing music groups and independent artists. Additionally, leadership plans to develop new business segments, including 1Creators.

The first spearhead of this business segment involves collaborating with banks to provide digital banking services. The platform aims to offer products such as: credit cards, payment and savings accounts, and business loans. Concurrently, 1Creators also provides management and tax declaration solutions for content creators. This product is a collaboration with MobiFone TP HCM, a branch of MobiFone Telecommunications Corporation.

On the stock exchange, YEG shares closed at 10,200 VND per unit, 17% lower than at the start of the year. Generally, over the past year, the market price of this ticker has fluctuated primarily between 10,000-16,000 VND.