Vietnam's oldest bicycle brand gears up for stock market debut

The transaction value for these shares is VND237 billion (US$9.3 million), priced at VND10,000 per share.

Established in 1960 as the Thong Nhat Bicycle Factory, Thong Nhat Ha Noi has a rich history. Thong Nhat bicycles were once a beloved brand synonymous with generations of Vietnamese people.

As of June, ahead of the UpCom listing registration completion, major shareholders in Thong Nhat Ha Noi include the Hanoi People’s Committee, representing 45% of state capital, VSD Investment JSC with a 41.68% stake and Trinh Nguyen Khanh with 12.17%.

The iconic Thong Nhat brand saw consistent revenue growth from 2020 to 2023.

Revenues increased from VND77.9 billion in 2020 to VND100.5 billion in 2021. However, the company faced losses of VND10 billion and VND10.7 billion in 2020 and 2021, respectively, due to the impact of the COVID-19 pandemic.

By 2022, its revenue surged by almost 42% to VND142 billion, with TNV returning to profitability at VND13.7 billion. In 2023, revenue continued its upward trajectory, reaching VND176.6 billion, although net profit decreased to VND2.6 billion.

Last year, sports bicycle sales at the Thong Nhat Ha Noi JSC dropped by 50%, totalling around 12,000 units. Conversely, sales of children's bicycles saw a significant 140% increase year-on-year, with over 74,000 units sold.