"Old story rehashed", SBS Securities Shareholders' Meeting must continue to wait until the 3rd time

The percentage of voting shares attending the second meeting was only 9.3%, not meeting the 33% requirement as prescribed.

SBS Securities Joint Stock Company (code SBS-UPCoM) will hold its third 2024 Annual General Meeting of Shareholders on the morning of June 14, 2024 in Ho Chi Minh City. After two unsuccessful attempts, the meeting will definitely take place next time because it no longer needs to satisfy the attendance requirement.

Previously, SBS Securities had only 5 shareholders, corresponding to an ownership ratio of more than 5%, attending the first meeting held on April 29. At the second meeting, held on May 24, the 2024 Annual General Meeting of Shareholders was also not eligible to be held when only 3 investors attended, representing 9.3% of the voting shares.

From 2022 to now, all four meetings of the General Meeting of Shareholders have had to wait until the third time to be held. At the most recent meeting held in early June 2023, a total of only 9 shareholders out of a total of 21,175 shareholders at the time of the registration deadline attended the meeting. The percentage of shares with voting rights was also just over 15.2%.

The fragmented shareholder structure over the years has made it difficult for SBS Securities to hold meetings. It must also be said that more than ten years ago, this securities company was the leader among securities companies in terms of charter capital, and even held the top brokerage market share at one point. Sacombank was a founding shareholder, owning a controlling stake. However, since 2011, Sacombank has no longer been the parent company of SBS. SBS's management reports over the years also show that Sacombank is no longer a major shareholder of SBS. Losses in business have caused SBS shares to be delisted and removed from the HOSE since 2013.

It is expected that at this year's Congress, SBS will continue to submit to the General Meeting of Shareholders for consideration a private issuance plan worth a maximum of VND 300 billion with an expected issuance time from now until the end of 2025. In advance, shareholders have approved the plan to issue shares to increase charter capital by a maximum of VND 500 billion, expected to be implemented from 2023 to 2025. However, according to the company's board of directors, due to many objective factors, SBS has not yet found a suitable investor, so the above private offering plans have not yet been implemented.

Currently, SBS has a charter capital of up to 1,466 billion VND. However, with accumulated losses of thousands of billions of VND appearing since 2011 and continuing to "get thicker" over the years, SBS's equity by the end of 2023 will be only 344 billion VND.

In 2024, SBS Securities aims to earn about 120 - 140 billion VND in net revenue. Profit from business activities is planned to be about 8 - 10 billion VND. While revenue is flat, the above profit figure is much better than the profit of just over half a billion VND in 2023. Although expecting to make more profit, with a "huge" accumulated loss, SBS will continue to be unable to pay dividends to shareholders.

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