VKC Holdings Chairman becomes major shareholder after collecting nearly 1 million shares

Mr. Than Xuan Nghia, Chairman of the Board of Directors of VKC Holdings, has just spent about 1 billion VND to buy 961,200 VKC shares for investment purposes.

Mr. Than Xuan Nghia, Chairman of the Board of Directors of VKC Holdings Joint Stock Company (stock code: VKC), has just announced that he has successfully purchased 961,200 shares by negotiation and order matching. The transaction was carried out in June. According to the current market price of VKC, the volume of shares that Mr. Tuan just purchased is only worth about 1 billion VND.

In the previously announced transaction registration notice, Mr. Nghia said the purpose of this transaction was for investment. After the transaction, the head of VKC Holdings increased his personal ownership ratio in the company from 0.2% (38,800 shares) to 5.19% (1 million shares), thereby joining the list of major shareholders.

VKC, formerly Vinh Khanh Plastic Cable Joint Stock Company, was listed on the Hanoi Stock Exchange, but on April 25, 2023, the Hanoi Stock Exchange forced it to delist due to the total accumulated losses exceeding the actual charter capital and the auditing company refused to comment on the 2022 financial statements. This stock was then registered for trading on the UPCoM market and was only traded on Fridays every week. The current stock price is only 1,000 VND per share, accordingly, the market capitalization value is less than 20 billion VND.

In the document of the first unsuccessful General Meeting of Shareholders, the company set a target of total revenue this year of VND20 billion, down 37% (equivalent to VND10 billion) compared to the same period. The pre-tax profit plan is negative VND60 billion, expected to improve 32% compared to the loss of VND88 billion last year.

According to the company's management, VKC is currently facing a lack of capital to operate and is unable to raise new capital. Production machinery and equipment are old, consuming large amounts of raw materials and using a lot of labor, making it difficult to compete on price with competitors.

“The first goal is to handle outstanding issues, try to resume production and business activities and reduce debt. Therefore, it is not possible to develop a specific development plan and only try to maintain production and business activities on the remaining small capital with the spirit of saving and efficiency,” the report submitted to the General Meeting of Shareholders of VCK said.

In the first quarter, the company recorded revenue of VND5.4 billion, down 28% year-on-year. Profit after tax was negative VND15.7 billion, an improvement of 8% compared to the loss of VND17.1 billion in the same period last year. The company has a negative equity of more than VND100 billion. Total assets as of the end of the first quarter reached VND354 billion, down slightly from nearly VND359 billion at the beginning of the year. Liabilities exceeded assets by VND454 billion. All of these debts are short-term debts.

Source: https://baodautu.vn/chu-tich-vkc-holdings-thanh-co-dong-lon-sau-khi-gom-gan-1-trieu-co-phieu-d220068.html