RECESS COMPANY LIMITED

RECESS COMPANY LIMITED: A Key E-Commerce Operator with Strong Platform Presence but Continued Equity Deficit

RECESS COMPANY LIMITED (CÔNG TY TNHH RECESS), widely recognized as the operator of the Lazada.vn e-commerce platform in Vietnam, has played a central role in shaping the digital retail space in the country. Established in 2009 and headquartered in District 1, Ho Chi Minh City, RECESS is a foreign-invested company with over 16 years of operational experience in the Vietnamese market.

Legal and Operational Framework

RECESS is a limited liability company, fully foreign-owned, and registered with the Ho Chi Minh City Department of Planning and Investment.

• Business ID and TIN: 0308808576

• Charter Capital: USD 47.17 million

• Ownership: Foreign Direct Investment (FDI)

• Website: https://www.lazada.vn

The company’s primary function is managing and operating the Lazada e-commerce platform, which includes both direct retail and third-party seller support. It also maintains offices in Hanoi, Da Nang, and Can Tho, supporting nationwide operations.

Management and Leadership

RECESS is led by Mr. Wu Yongsheng, a Chinese national serving as General Director. Under his direction, the company has continued to expand its technical capabilities and customer base in a competitive regional e-commerce market.

Financial Overview

RECESS demonstrates solid revenue generation and asset growth, but remains in a structurally negative equity position, which warrants cautious monitoring.

Key Financial Figures (FYE 31 March 2024):

• Total Assets: USD 227.36 million (↑7.99% YoY)

• Revenue: USD 267.98 million (↓2.1% YoY)

• Net Loss: USD -10.46 million

• Owner’s Equity: USD -322.82 million

• Working Capital: USD 31.21 million

While the company continues to invest in expansion and market share, the consistent equity deficit—now over USD 322 million—may limit financial flexibility and increase its dependency on continued parent company support or future recapitalization.

The net loss in 2024, although lower in magnitude compared to the prior year, follows a historical pattern of fluctuating profitability. The positive working capital position, however, signals that liquidity is currently sufficient for short-term obligations.

Business Activities and Strategic Role

RECESS is engaged in a wide array of online retail and wholesale services, including:

• Management of a multi-vendor e-commerce platform

• Retail and wholesale of consumer electronics, fashion, home goods, food, and telecommunications equipment

• Market research and consultancy

The company is a central component of Lazada’s Southeast Asia operations, enabling cross-border e-commerce and digital infrastructure in Vietnam.

Risk Outlook

From a credit reporting perspective, RECESS COMPANY LIMITED presents a mixed profile:

• Strengths:

  • Consistent high-volume revenues

  • Large asset base and market presence

  • Strong backing from regional parent entities

• Concerns:

  • Persistent negative equity over multiple fiscal years

  • Continued annual losses

  • Long-term sustainability tied closely to foreign shareholder support

The company remains operationally active and strategically significant, but financial caution is advised, especially for vendors, lenders, and B2B partners engaging in long-term commercial agreements.

For those requiring detailed due diligence and financial verification, VANGUARD BUSINESS INFORMATION LLC (VBI) offers comprehensive credit reports and ongoing monitoring tools tailored to mitigate risk in complex markets like Vietnam’s digital economy.