More than 938 million ITA shares transferred to UPCoM but trading is still suspended

With the difficult business situation and unresolved legal issues, ITA is facing many challenges in the coming time.

With the difficult business situation and unresolved legal issues, ITA is facing many challenges in the coming time.

The Hanoi Stock Exchange (HNX) has just approved Tan Tao Investment and Industry Corporation (ITA) to register to trade shares on the UPCoM exchange. Accordingly, more than 938 million ITA shares will officially trade on UPCoM from February 13 with a reference price of VND2,300/share.

However, even after being transferred to another floor, ITA shares are still suspended from trading. The reason is that the company has been forced to delist from the Ho Chi Minh City Stock Exchange (HOSE) due to serious violations of information disclosure obligations. The decision to suspend trading is in accordance with the Regulations on Registration and Management of Unlisted Securities Transactions of the Board of Directors of the Vietnam Stock Exchange.

Previously, more than 938 million ITA shares were delisted from HOSE from February 4, after being suspended from trading since the end of September 2024. The company has not yet published a series of important financial reports, including: Audited financial statements for 2023, Annual report 2023, Semi-annual financial statements 2024 and Decision to open bankruptcy proceedings by the People's Court of Ho Chi Minh City.

In addition to the listing fluctuations, ITA's business results in 2024 are also not very positive. Net revenue and net profit decreased by 34% and 44% respectively compared to the previous year, reaching only nearly VND376 billion and VND114 billion.

Although revenue from leasing factories, warehouses and land increased more than 2.3 times compared to the previous year, other business segments decreased sharply, including leasing land with developed infrastructure. A notable point in the 2024 financial report is that the company has reversed more than VND 15 billion in financial expenses, mainly due to the reversal of more than VND 14.5 billion in loan interest.

The ITA said the suspension of stock trading had severely affected business operations. Banks stopped providing credit, while many investors also stopped negotiating the purchase and lease of land and factories.

As of December 31, 2024, ITA's total assets reached more than VND12.6 trillion, up 5% compared to the beginning of the year. This increase mainly came from short-term receivables (mainly receivables from customers) and inventories, which increased by 61% and 3%, respectively, to more than VND2 trillion and nearly VND3.7 trillion.

Meanwhile, the value of investments in other units decreased sharply by 86%, to more than VND131 billion, because ITA divested all capital from Tan Tao University Joint Stock Company. As a result, the company no longer recorded a provision of nearly VND152 billion related to this investment.

ITA's liabilities also increased by 9%, reaching more than VND1.9 trillion. Notably, the outstanding loans at the end of the year increased 2.8 times compared to the beginning of the year, reaching nearly VND122 billion. The main reason was the loan from Vietnam Prosperity Joint Stock Commercial Bank (VPB), with a total outstanding loan at the end of the year of nearly VND76 billion. This loan was secured by the right to use 36,690 square meters of land in Huu Thanh commune, Duc Hoa district, Long An province.

Source: https://baodautu.vn/hon-938-trieu-co-phieu-ita-chuyen-len-san-upcom-nhung-van-bi-dinh-chi-giao-dich-d244775.html