Recently, Digiworld Corporation (Code DGW) has just explained to the State Securities Commission and the Stock Exchange about the sharp decline in revenue and after-tax profit in the first 6 months of the year.
Specifically, Digiworld's revenue in the first 6 months of the year was recorded at VND8,555 billion, down 28% compared to the same period last year. Profit after tax reached VND162.4 billion, down 53% compared to the same period last year.
Digiworld (DGW) recorded a 53% decrease in profit in the first 6 months of the year (Photo TL)
According to the company's explanation, the reason for the decline in revenue is due to the impact on core business activities. In particular, the sales of laptops and tablets have decreased sharply due to low demand during the economic recession.
This segment alone brought in revenue of VND2,426 billion for Digiworld, down 28% year-on-year. Compared to the plan set at the beginning of the year, only 44% of the annual revenue plan has been completed.
Another business segment that was also affected by the economic recession was the mobile phone business segment, with revenue recorded in the first 6 months of the year reaching 4,089 billion VND, down 38% compared to the same period. Compared to the yearly plan, the mobile segment only achieved 47% of the target.
By the end of the second quarter of 2023, DGW's total assets reached VND 6,559.6 billion. Of which, liabilities accounted for VND 4,006.7 billion. Most of which was short-term debt, accounting for VND 3,990.2 billion. Meanwhile, equity only reached VND 2,552.9 billion.
It can be seen that Digiworld's equity is much lower than its short-term debt, showing the level of risk in Digiworld's capital management.
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