Nam Song Hau Petroleum Investment and Trading Joint Stock Company - NSH Petro (code: PSH), chaired by Mr. Mai Van Huy, has just issued a document explaining the fact that its shares have fallen to the floor for 5 consecutive sessions and the roadmap to overcome the situation of its securities being suspended from trading.

According to NSH Petro, PSH shares hit the floor for 5 consecutive sessions from March 4-11 due to being changed from restricted trading status to suspended trading status from March 12, so "it is possible that shareholders want to sell all shares".

At the end of the trading session on March 11, PSH had 6 consecutive floor-price sessions and this stock fell from 2,700 VND/share to 1,770 VND/share. Market capitalization is only 223 billion VND. At the end of May 2024, PSH was at 7,200 VND/share and in mid-2021, this stock was above 30,000 VND/share.

NSH Petro said it will terminate the contract with UHY Auditing and Consulting Company Limited and seek the opinion of the shareholders' meeting to find another auditing unit to conduct the semi-annual financial report review for 2024. This is the reason why PSH's stock trading was suspended.

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PSH shares decreased for 5 consecutive sessions. Photo: NSH Petro

Regarding the loan situation with the financial institution Acuity Funding, NSH Petro said that it has completed the loan procedures. Vietnam Joint Stock Commercial Bank for Investment and Development, Transaction Office 2 branch, is completing the final legal procedures with Acuity Funding. The loan capital plan will be disbursed at the end of the first quarter.

At the same time, NSH Petro successfully organized a conference of bondholders PSHH2224003 and PSHH2224002 through which bondholders agreed to extend the debt and committed not to request asset disposal within 6 months.

Therefore, NSH Petro has a roadmap to recover debts for the reporting period at the end of 2023. The amount of nearly VND 1,140 billion being enforced at the Hau Giang Provincial Tax Department and the amount of nearly VND 92.6 billion being enforced at the Can Tho Provincial Tax Department will be recovered by the middle of the second quarter of 2025.

Goods deposited at Phuong Dong Petroleum Joint Stock Company (VND 131 billion), Can Tho warehouse (nearly VND 51 billion), and Tra Vinh branch warehouse (nearly VND 26 billion) will be fully inventoried in the mid-year review report of 2024.

To overcome the above outstanding issues, NSH Petro will have its invoices removed from enforcement by the tax authorities; at that time, the company will continue to operate its business and issue full sales invoices according to regulations.

Recently, PSH's business results have seriously declined, along with problems related to tax debts of up to thousands of billions of VND.

In the fourth quarter of 2024, PSH reported a loss after tax of nearly VND 234 billion, marking the 5th consecutive quarter of loss.

In 2024, PSH recorded a revenue decrease of nearly 90% to 678 billion VND. Loss of 790 billion VND. By the end of the year, PSH had total assets of more than 10.5 trillion VND, total debt of 9,700 billion VND, 12 times the owner's equity.

Mr. Mai Van Huy is the Chairman of the Board of Directors and a major shareholder of PSH. At the beginning of 2020, he held more than 84 million PSH shares, equivalent to nearly 66.7% of the shares.

However, during the sharp decline in PSH shares from 2023, Mr. Mai Van Huy had a large amount of shares sold for mortgage. At the end of that year, Mr. Huy still had more than 78.9 million PSH shares, equivalent to 62.53%. By early 2025, Mr. Huy still had 53.8 million PSH shares, equivalent to 42.56%.

More than two decades ago, Mr. Mai Van Huy - then Director of Dong Thap Petroleum Trading Company - was sentenced to life in prison for smuggling, embezzlement, bribery and intentional wrongdoing causing serious consequences. After more than nine years, he was granted amnesty.

Mr. Mai Van Huy made a very impressive return to NSH Petro. After only a few years, this enterprise has become a “giant” of petroleum, holding the leading position in the field of petroleum distribution in the provinces of the Southwest, and is among the largest petroleum enterprises.

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