Recently, the Board of Directors of Yeah1 Group Joint Stock Company (stock code: YEG) has approved borrowing capital from individuals to supplement capital for production and business activities. The borrowed money can also be used to buy shares, capital contributions in other companies or pay off loans.

Yeah1 borrowed nearly VND190 billion from three individuals. Specifically, the lenders were Ms. Nguyen Hai Tuong Vi with over VND54.7 billion, Mr. Vo Xuan Huy with about VND55.6 billion and a related person of the company, Ms. Vu Thi Tuyet Van with over VND79.1 billion. The term of the loans was one year with an interest rate of 8% and an overdue interest rate of 12%.

Yeah1 announced the loan information shortly after the company announced its highest quarterly revenue results in more than 2 years along with many new business development plans. Specifically, the financial report for the second quarter of 2024 of the producer of "Anh trai vu ngan cong gai" reached 207 billion VND, 2.5 times higher than 81.3 billion VND in the same period last year. This is the highest level of this company since the first quarter of 2022.

After deducting the cost of goods sold, Yeah1's gross profit was approximately VND16 billion, 2.5 times higher than the same period. The gross profit margin for this period reached 7.7%, equivalent to the level achieved in the same period in 2023. After deducting expenses, Yeah1 reported a profit after tax of VND8.5 billion, up 66.7% over the same period.

Accumulated for the first half of the year, Yeah1 had net revenue of nearly VND281 billion, nearly double the VND142 billion in the first 6 months of last year. Profit before and after tax reached VND24.7 billion and VND20.5 billion, respectively 4.8 times and 2.3 times higher than the same period last year.

According to Yeah1's management, the positive business results in the first half of this year were mainly due to revenue from advertising and media consulting activities growing 136% over the same period.

This year, Yeah1 targets revenue of VND800-1,100 billion, an increase of 94-167% compared to 2023. The company expects after-tax profit of VND65-105 billion, an increase of more than 145-296% compared to last year.

Previously, in May, Yeah1 also issued 54.8 million shares to existing shareholders, equivalent to 40% (shareholders owning 10 shares have the right to buy 4 new shares). Charter capital is expected to increase from VND1,370 billion to VND1,918 billion.

The company's board of directors said the newly collected funds of about VND548 billion will be used to improve capital capacity, implement capital contribution plans or cooperate to establish new business segments, M&A, debt restructuring and supplement working capital.

At the 2024 annual meeting, answering a shareholder's question about whether increasing charter capital could reduce profitability, Ms. Le Phuong Thao, Chairwoman of the Board of Directors, said that 2023-2024 is the golden period to invest in basic resources such as people, studios, technology... to serve the high-quality content production sector.

She believes this is the right direction when most competitors in the industry have not focused on investing in the foundation but only on individual projects. In the future, when the economy recovers, the above preparations will help the company record high profits, thereby improving profitability and bringing great value to shareholders.

As of the end of June 2024, Yeah1's total assets reached VND2,005 billion, an increase of VND145 billion compared to the beginning of the year. The company has more than VND1,057 billion in short-term assets, most of which are short-term receivables.

The Group recorded total liabilities of nearly VND607 billion, an increase of VND130 billion compared to the beginning of the year. Short-term loans accounted for the largest proportion in the company's debt structure with more than VND199 billion. Owner's equity currently reached VND1,398 billion, an increase of VND15 billion compared to the beginning of the period.