Stock price tripled, Hoa Sen Chairman's family divested all capital

According to information from the Ho Chi Minh City Stock Exchange (HoSE), Mr. Nguyen Van Chien, brother-in-law of Mr. Le Phuoc Vu - Chairman of the Board of Directors of Hoa Sen Group Corporation (HoSE: HSG) has registered to sell all of more than 10.7 million HSG shares, equivalent to 1.74% of capital. The transaction is expected to take place from September 14 to October 13, 2023.

If the transaction is completed, Mr. Chien will no longer hold any shares in Hoa Sen. At the current market price, Mr. Chien can earn about 236 billion VND if the transaction is completed.

The selling action of the Chairman's family was recorded in the context of HSG's market price recovering strongly from the short-term bottom. At the end of the trading session on September 11, HSG shares closed down 3.18% to VND 21,300/share. However, compared to the bottom in November 2022, the market price has increased 3 times.

Previously, contrary to Mr. Chien's move, the fund group under Dragon Capital made a move to buy HSG shares. In August 2023 alone, this fund group bought 12.5 million HSG shares, equivalent to 2% of the total outstanding shares of Hoa Sen Group.

Finance - Banking - Stocks tripled, Hoa Sen Chairman's family divested all capital — HSG stock performance over the past year (Source: Trading View).

Regarding the financial picture, in the first 9 months of the 2022-2023 fiscal year, Hoa Sen recorded revenue of VND 23,544 billion, down 44% compared to the same period last fiscal year. After deducting expenses, the company still lost VND 410 billion, while in the same period last year it made a profit of more than VND 1,100 billion. The company is still far from its target of VND 300 billion in profit this fiscal year.

As of June 30, Hoa Sen's total assets reached VND16,526 billion, down nearly 3% compared to the beginning of the year. Of which, the largest proportion was inventory at VND6,248 billion, down 15.5% compared to the beginning of the year. Fixed assets were at VND5,224 billion. Cash equivalent to cash and term deposits was about VND740 billion.

Financial debt at the end of the third quarter of the fiscal year was VND4,370 billion, all of which were short-term loans. Owner's equity reached VND10,367 billion, of which undistributed profit after tax was VND4,108 billion, and charter capital was VND5,980 billion .

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