City Auto said it has successfully owned 99% of the charter capital of VW Tan Thuan – a 3S dealer of Volkswagen in Phu My Hung, District 7, Ho Chi Minh City.
On January 2, City Auto Joint Stock Company (Stock code: CTF) announced that it owned 99% of the charter capital of VW Tan Thuan Joint Stock Company. Previously, in December 2024, City Auto’s Board of Directors had a Resolution approving the policy of buying 11.88 million shares to own 99% of VW Tan Thuan’s capital.
Established in June 2023, VW Tan Thuan is Volkswagen’s 3S Dealer in Phu My Hung, District 7, Ho Chi Minh City.
VW Tan Thuan’s founding shareholders include: DAF Group Joint Stock Company (accounting for 97% of capital), Mr. Tran Quang Tri (1.5%) and Mr. Le Nguyen Ho (1.5%). In November 2024, VW Tan Thuan increased its capital to 120 billion VND. Mr. Le Nguyen Ho became the legal representative and Chairman of the Board of Directors of the company.
DAF Group, founding shareholder of VW Tan Thuan, has had many transactions with City Auto. In December 2020, Phu My Auto Joint Stock Company (subsidiary City Auto) spent 8 billion VND to buy 8 million shares of Easy Car Joint Stock Company (the unit that owns the chain of business systems and repair services). used car repair) from DAF Group.
In addition, City Auto and DAF Group on July 20, 2023 signed an investment trust contract. Accordingly, City Auto sent DAF Group 147 billion VND in investment trust money. The trust term is 84 months.
Not stopping at economic transactions, Ms. Pham Thi Ai Hanh – founding shareholder contributing 35% of DAF Group’s capital, and her husband, Mr. Ngo Cong Minh, hold a total of more than 5.6 million CTF shares (ratio 5 .91%).
Established in March 2009, City Auto is the official authorized dealer of the Ford and Hyundai brands with nearly 25 years of operation in the industry. Mr. Tran Ngoc Dan is currently Chairman of the Board of Directors of City Auto, he is also the largest shareholder, holding 9.23% of City Auto’s capital. Mr. Dan’s son, Mr. Tran Lam, holds 8.4% of the company’s capital.
In the first 9 months of 2024, City Auto’s revenue reached more than 5,400 billion VND, up 10% over the same period last year. Minus expenses and taxes, the company reported a net profit of 13 billion VND, down 65% and only completing 15% of the year’s target.
The company said that its profit results decreased due to the impact of the global recession, and the Government’s support policy on reducing registration fees for domestically produced cars applied from September 1 to November 30, 2024 has not yet been implemented. major impact on business results.