Tri Viet Securities explains about price manipulation

Recently, Tri Viet Securities JSC (HNX: TVB) has just sent a report to HoSE, explaining the audit opinion and emphasizing in the audited financial report for 2022.

Specifically, the auditor issued an exception opinion on the value of other receivables as of December 31, 2022 with the amount of VND 480.69 billion and the basis for setting up financial risk provisions for this receivable.

Accordingly, Tri Viet Securities explained that the other receivable balance as of December 31, 2022, including VND 480.69 billion, was from securities brokerage contracts, with the purpose of cooperating to seek securities investment opportunities. However, due to some issues arising in 2022 related to operations and organization, the company has not been able to work with partners to urge progress and recover the amount transferred according to the contract.

After careful consideration of the recoverability, the company decided to set aside a loss provision at a rate of 70% of the outstanding receivables, with an amount of VND 336,483 billion. The net value of the above receivables on the balance sheet as of December 31, 2022 is VND 144,207 billion.

According to TVB, due to the fact that in 2022, the implementation of securities brokerage contracts was not favorable and not synchronized, the auditors expressed their opinion that it was impossible to collect effective audit evidence to assess the purpose, subjects of cooperation and the effectiveness of the contracts.

Therefore, the auditor cannot assess the balance, classification and presentation of receivables and the amount of loss provision required.

In addition to the qualified opinion, the auditor also issued an emphasis opinion on the revaluation difference of the company's available-for-sale (AFS) financial assets .

The Company explains available-for-sale (AFS) financial assets including HPG and FPT stock codes classified by the Company at the time of initial recognition (2021) and applied for the entire fiscal year 2022.

The loss from revaluation of AFS at market price of VND 92.8 million (at the beginning of the year, it was VND 22.6 billion) is recorded directly in equity at the difference in revaluation of financial assets at fair value, and is also recorded in other comprehensive income (loss) expense on the separate statement of operations.

Finance - Banking - Securities Tri Viet explains about price manipulation — Difference in revaluation of available-for-sale financial assets (AFS) (Source: TVB Financial Statements).

Any revaluation losses are reflected as a reduction in equity and comprehensive income, and are not reflected in 2022 profit after tax and retained earnings. Such recognition will continue until the financial assets are properly derecognized.

Because it has not been reflected in after-tax profit, the analysis/evaluation based on undistributed after-tax profit from 2022 business results from related parties will not include the above loss.

At the same time, the auditor also emphasized that TVB was involved in the stock market manipulation case that occurred at Louis Holding JSC, Louis Capital JSC, and Louis Land JSC.

The company said that according to the conclusion of the Hanoi People's Court's Judgment, the violating individuals are responsible for criminal and civil liability, and TVB does not incur any legal financial obligations from the above event.

Currently, the company has completed the key personnel structure, restructured business operations and has been granted a License to adjust the License to establish and operate a securities company by the State Securities Commission, so the 2022 audited financial statements are prepared based on the assumption that the company will operate continuously, which is appropriate .

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