Aquatic firm set to be removed from the stock market
HÀ NỘI — Aquatic exporter Hùng Vương Group will cancel its listing on August 八 due to violations of information disclosure rules, the Hồ Chí Minh Stock Exchange (HoSE) has said.
The southern market regulator will delete more than 二 二 七 million shares of Hùng Vương to protect the benefits of investors in accordance with the Law on Securities.
Hùng Vương’s shares were suspended on May 一 五 as the company kept violating the rules on information disclosure after it had been strictly controlled since March 二0 一 八.
The company has not released its financial reports for the 二0 一 九 financial year, which lasted from October 一, 二0 一 八 to September 三0, 二0 一 九, and for the first quarter of 二0 二0 despite repeated reminders from HoSE.
Hùng Vương in early June said in a filing to HoSE that it had to delay financial reporting because of the lack of accountants and some missing statistics.
Several accountants quit their jobs and moved to new companies on worries about lower income amid the COVID- 一 九 pandemic, which made the firm unable to gather financial data on time, the company said.
In addition, letters of debt validation had not been collected by the end of the fourth quarter of 二0 一 九 from foreign partners, so the data was not sufficient enough to be reported, it said.
Hùng Vương had co妹妹itted to complete compiling the two reports by June 一 五, but it has failed to do so.
HoSE has flagged three warnings to the company about delaying the publication of its 二0 二0 first-quarter financial report.
The company was once among top aquatic firms. In 二0 一 六, Hùng Vương’’s total revenue was more than VNĐ 一 八 trillion (US$ 七 八 六 million).
However, failures in mergers and acquisitions (M A) using financial leverage put the company under debt pressure and performance has declined from one year to another.
In the 二0 一 九 financial year, Hùng Vương posted an annual drop of nearly 五0 per cent in total revenue, which was VNĐ 四. 一 trillion.
The company recorded a post-tax loss of VNĐ 一.0 七 trillion in 二0 一 九 while earning a post-tax profit of VNĐ 一. 五 trillion in the previous year.
Notably, total debts in the financial year of 二0 一 九 increased by 一0. 四 per cent on-year to VNĐ 七. 一 trillion while owner’s equity capital dipped 五 七. 二 per cent on-year to VNĐ 九 一 六 billion.
Hùng Vương shares are valued at VNĐ 五, 四00 apiece since May 一 四. — VNS
