APG Securities managed to sell AGM shares before trading was suspended.

Angimex (AGM) shares rise despite continued losses

An Giang Import-Export Joint Stock Company - Angimex (AGM) is facing great difficulties in business due to its connection with Mr. Do Thanh Nhan, who was arrested in April 2022 on charges of stock manipulation.

For a long time, AGM shares have fallen sharply and only maintained at the price of 5,500 VND/share. However, since the beginning of August, when the rice market had positive changes and rice prices increased, AGM shares have rebounded. At one point, AGM reached a price of up to 13,500 VND/share in the trading session on August 8, 2023.

AGM shares were suspended from trading, but APG Securities still managed to sell out 1.5 million shares (Photo TL)

AGM's price increase according to investors' expectations is completely contrary to the business results of this unit.

In the first two quarters of 2023, AGM's revenue continued to decline, accompanied by after-tax losses that continued to erode equity.

According to the 2023 semi-annual financial statements, AGM's net revenue in the first 6 months of the year reached VND321.6 billion, with cost of goods sold accounting for VND310.3 billion. Interest expense during the period nearly doubled to VND56 billion. Meanwhile, the company also suffered a loss of nearly VND2 billion in investments in associated companies.

AGM's net operating loss was VND57.4 billion, and its after-tax loss was VND57.7 billion in the first 6 months of the year. Including the second quarter of 2023, AGM has suffered losses for 5 consecutive quarters.

APG Securities still managed to divest all capital right before Angimex was suspended from trading.

On September 13, 2023, APG Securities JSC, a major shareholder of Angimex, owning 1.5 million shares, equivalent to 8.17% of charter capital, sold all of its shares. After this transaction, APG Securities is no longer a shareholder of Angimex.

It is worth mentioning that APG coincidentally completely divested from Angimex just a few days before this unit was suspended from trading.

On September 18, 2023, just nearly 5 days after APG divested from Angimex, the Ho Chi Minh City Stock Exchange (HoSE) decided to transfer AGM shares to the trading suspension list from September 18, 2023.

The reason is that AGM has continued to violate information disclosure regulations and has not yet published its 2023 semi-annual financial statements. In addition, Angimex is also under warning due to recording an accumulated loss of VND 71 billion in its 2022 financial statements.

This accumulated loss situation did not improve at all in the first two quarters of 2023 because Angimex continued to lose tens of billions of VND, causing the accumulated loss to continue to increase to 125.4 billion VND.

Source: https://www.congluan.vn/chung-khoan-apg-da-kip-ban-15-trieu-co-phieu-agm-truoc-khi-bi-dinh-chi-giao-dich-post265121.html