The Ho Chi Minh City Stock Exchange (HoSE) has just announced that it will convert ITA shares of Tan Tao Investment and Industry Joint Stock Company (Tan Tao Company) from restricted to suspended trading.

According to HoSE, ITA shares of Tan Tao Company are subject to trading restrictions according to a decision issued on July 9, because the company is 45 days late in submitting its audited financial statements for 2023 compared to regulations.

Tan Tao Industrial Park.jpg
A corner of Tan Tao Industrial Park, Binh Tan District, Ho Chi Minh City of Tan Tao Company. Photo: TL

On August 27, Tan Tao Company sent a document requesting the State Securities Commission (SSC) and HoSE to temporarily postpone the announcement of the 2023 audited financial statements, 2023 annual report, and 2024 semi-annual reviewed financial statements due to force majeure.

Previously, in June, the State Securities Commission also issued a response letter regarding the temporary suspension of information disclosure by Tan Tao Company.

On September 4, HoSE continued to send a document reminding Tan Tao Company about the delay in announcing the audited semi-annual financial statements for 2024. To date, the company has not yet announced this information.

Due to continued violations of regulations on information disclosure on the stock market after being placed on a restricted trading list, HoSE said that Tan Tao Company's ITA shares will be transferred to a trading suspension list.

Regarding the reason for the delay in disclosing financial statements, Tan Tao Company said that it has repeatedly sent written explanations. Specifically, over the past several months, despite efforts to contact and persuade 30 auditing companies, they were all rejected. These are all auditing companies approved to audit public interest entities in the securities sector in 2023.

Tan Tao Company believes that the main reason is that the State Securities Commission has suspended the auditor who audited the company's financial statements in 2021, 2022 and the semi-annual reviewed financial statements in 2023, causing all auditing units to be concerned when auditing the company.

Tan Tao Company was established in 2002, operating mainly in the field of industrial park development and industrial services. In addition, the company also invests and trades in residential real estate. Tan Tao Company's ITA shares were listed on HoSE in 2006.

According to the consolidated financial statements for the second quarter of 2024, as of June 30, Tan Tao Company's total capital reached VND 12,244 billion. In the second quarter of 2024, the company recorded revenue of VND 70.8 billion. Gross profit reached VND 30.4 billion, down 25% compared to the gross profit of VND 40.7 billion in the same period.

After deducting expenses, the company's after-tax profit reached VND44 billion, up 84% over the same period. Explaining the 25% decrease in gross profit, Tan Tao Company said it was seriously affected by the decision to open bankruptcy proceedings in 2018 by the Ho Chi Minh City People's Court and the decision to appoint a trustee to manage and liquidate assets. This led to banks not lending capital and many investors stopped negotiating to buy, sell, and lease land and factories.

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