DIEU PHUC TECHNOLOGY SERVICES AND TRADING COMPANY LIMITED

DIEU PHUC TECHNOLOGY SERVICES AND TRADING COMPANY LIMITED: High Revenue Retailer with Alarming Profit Collapse

DIEU PHUC TECHNOLOGY SERVICES AND TRADING COMPANY LIMITED (Vietnamese name: CÔNG TY TNHH THƯƠNG MẠI VÀ DỊCH VỤ KỸ THUẬT DIỆU PHÚC) is a fast-growing private enterprise best known for operating the popular Vietnamese electronics retail chain CellphoneS. Founded on March 2, 2020, and headquartered at 350-352 Vo Van Kiet Street, District 1, Ho Chi Minh City, the company trades smartphones, tablets, laptops, and tech accessories through both online and offline platforms including cellphones.com.vn and dieuphuc.com.vn. It operates under Tax Code (TIN): 0316172372 and employs approximately 3,000 people across Vietnam.

The company is directed by Mr. Do Tran Trung, with majority shareholder Ms. Dam Thi Thu Trang holding an 88% stake. Dieu Phuc is structured as a limited liability company, and despite its relatively short operating history, it has achieved impressive top-line scale.

In 2023, Dieu Phuc reported USD 226.03 million in sales, up 4.32% from 2022—a solid if slowing increase. However, from a risk advisory standpoint, the most notable—and concerning—trend is the company's steep 51.61% year-over-year drop in net profit, which fell to USD 1.13 million, down from over USD 2.3 million the previous year and more than USD 3.7 million in 2021. This marks two consecutive years of sharp profit deterioration despite revenue growth.

The financial risks deepen when considering capital structure: the company’s paid-up capital remains extremely low at just USD 2.05 million, despite a declared charter capital of over USD 8.2 million and a total asset base of USD 60.38 million. Meanwhile, owner’s equity stands at USD 9.4 million, a modest gain over prior years but clearly underpowered relative to the scale of business and inventory turnover expected in a high-volume retail operation.

Although working capital improved to USD 3.58 million, the margin of liquidity is slim, especially for a company handling imported consumer electronics, where currency fluctuations, demand volatility, and aggressive price wars can rapidly compress cash flow.

In brief, DIEU PHUC LTD is a high-revenue, low-capital business with fragile profitability. The company's narrow profit margins and weak capitalization raise serious concerns about financial resilience, particularly in a competitive retail landscape where market share is often won at the expense of margin.

Risk Management Recommendations:

• Liquidity Risk: Elevated – Working capital has improved, but remains inadequate relative to scale.

• Profitability Risk: High – two years of falling profits amidst rising costs and flat margin compression.

• Capitalization Risk: Significant – low paid-in capital makes the company vulnerable to shocks or expansion demands.

• Operational Risk: Moderate – brand recognition and digital presence are strong, but profitability is not keeping pace with growth.

Stakeholders including vendors, investors, and service providers should demand full financial disclosures and monitor profit recovery before entering long-term engagements. For deeper credit profiling and partner viability analysis, contact VANGUARD BUSINESS INFORMATION LLC (VBI)—Vietnam’s leading business intelligence provider.