Tan Viet Securities plans to lose money

TVSI said its 2023 target is to focus on resolving bond issues and trying to achieve break-even.

The 2023 business plan was mentioned by the Board of Directors of Tan Viet Securities Company (TVSI) in a report sent to shareholders at the upcoming annual meeting.

This year, TVSI targets revenue of just under VND200 billion, down 92% from last year. The company expects a loss after tax of about VND570 million. "The Board of Directors recognizes the difficulties of the stock market and sets a cautious business target for 2023," the report to shareholders said. Accordingly, TVSI's focus this year is to focus on resolving bond issues, while maintaining its primary brokerage operations.

Tan Viet Securities is one of the bond issuance consultants of An Dong Investment Group - a business related to Ms. Truong My Lan.

Last year, TVSI failed to meet its business plan when net profit only reached nearly 70% of the target. The Board of Directors assessed 2022 as a year of ups and downs with many negative fluctuations, including incidents with the company that "severely impacted" business operations.

From October 2022, TVSI focused on crisis management and restructuring business units by closing and merging branches. The company's business activities fluctuated, with brokerage, securities underwriting, and custody activities decreasing by more than 40%, 73%, and 8%, respectively, compared to the previous year.

In addition to the impact on business operations, TVSI also said that the company could not find an auditor to audit its financial statements and financial safety ratio report as of December 31, 2022.

After the end of the fiscal year, TVSI contacted VACO Auditing Company, but this unit later sent a request to terminate the audit contract.

"TVSI sent invitation letters and contacted all auditing companies on the approved list to audit the two reports mentioned above, but these companies did not respond or did not agree to provide auditing services to TVSI," the report sent to shareholders said.

Due to the failure to audit the financial safety ratio report, the Securities Commission placed TVSI under special control from May 18 to September 17. In early June, TVSI found an auditor, UHY Auditing and Consulting Company Limited.

Tan Viet Securities is the securities company with the largest bond trading volume in the market. According to the latest financial report published at the end of October 2022, the company itself traded bonds worth nearly VND 179,000 billion, while investors traded more than VND 181,000 billion in the first nine months of the year. The company's total assets at that time were VND 9,640 billion.

After the Ministry of Public Security's Investigation Police Agency initiated a case of fraud and property appropriation at An Dong Investment Group and related organizations, Tan Viet Securities stopped accepting corporate bond transfers and held many meetings with bond-owning investors to specifically inform them about the payment plan.

As a depository registration agent, payment agent, and representative of bond owners, the company then affirmed that it had worked with the issuing organizations to develop a plan to ensure interest and principal payments to investors before or on the maturity date of the bond lot.

Minh Son

Source link