Chairwoman Dang Thi Hoang Yen is no longer the legal representative, Tan Tao's ITA shares are under control.
In recent days, Tan Tao Investment and Industry Corporation (Code: ITA) has been making its shareholders restless with the newly announced news. First was the change of Ms. Dang Thi Hoang Yen as the legal representative of the company. Immediately after that, ITA shares were put under control.
Specifically, the Ho Chi Minh City Stock Exchange (HOSE) has just decided to put the stock code ITA of Tan Tao Investment and Industry Corporation under control. The effective time starts from June 22, 2023.
Tan Tao Investment and Industry Corporation (ITA) has suffered losses for two consecutive years, and its shares have been put under control (Photo TL)
The reason given by HOSE is that the after-tax profit of the parent company's shareholders in 2021 and 2022 is negative based on the 2022 audited consolidated financial statements. This is a case where the stock is put under control.
Previously, in the decision dated April 14, 2023 of the Ho Chi Minh City Stock Exchange, Tan Tao's 2022 audited financial statements had an exception. At the same time, the company also violated information disclosure regulations 4 times or more in 2022, so the code ITA was also put on the warning list.
Losing hundreds of billions of dong in just 2 years, the first quarter just recorded only "meager" profits.
Regarding the business situation in the last 2 years, Tan Tao ITA recorded negative after-tax profits of hundreds of billions of VND. Most notably, in the fourth quarter of 2022, the company recorded negative revenue of up to 2,033 billion VND on the financial statements. Gross profit accordingly also recorded a loss of 423 billion VND, the company's after-tax profit was negative 330 billion VND.
The reason for the negative revenue of more than VND 2,033 billion in the fourth quarter was because the company was forced to liquidate the long-term land lease contract used to build Kien Luong Power Center No. 2804/HDKT-10 dated April 28, 2010 and Contract Appendix No. 2804/PLHDKT-12 dated July 17, 2012. This document was signed between Tan Tao Industrial Investment Joint Stock Company (ITACO) and Tan Tao Energy Development Joint Stock Company TEDC.
Early contract liquidation forced Tan Tao to deduct revenue, resulting in negative revenue of more than VND 2,033 billion.
Although the reason is that, if not counting this revenue deduction, in 2022, Tan Tao will only achieve 577 billion VND in revenue, down about 38.1% compared to 2021. Overall in 2022, Tan Tao lost 258 billion VND.
Previously, in 2021, this unit also recorded a loss of up to 404 billion VND. Two consecutive years of losses caused Tan Tao's shares to be put under control from June 22, 2023.
More than 2,119 billion VND is on paper at related companies in the ecosystem.
After two consecutive years of losses, Tan Tao ITA, chairwoman Dang Thi Hoang Yen, has just set an ambitious business target for 2023. The company expects revenue in 2023 to be 774 billion VND, with net profit reaching 257 billion VND.
Tan Tao's 2023 business plan plans to invest in the Tan Tao - Long An Industrial Park project with a scale of about 414.7 hectares located in Duc Hue district, Long An province.
However, it should be noted that at present, Tan Tao ITA's asset structure is having some problems. As of the end of the first quarter of 2023, Tan Tao's total assets reached VND 12,313 billion, a slight decrease compared to the beginning of the year. Long-term receivables recorded a sharp increase, from more than VND 8 billion at the end of 2022 to VND 2,119 billion at the end of the first quarter of 2023.
The amount of 2,119 billion VND in receivables is only on paper and according to the explanation in Tan Tao's financial statements, they are all located in subsidiaries of which Tan Tap is a co-managing member.
Specifically, Tan Tao recorded a receivable of VND1,253 billion from Tan Tao Energy Development JSC; VND677 billion from Tan Tao University JSC; VND231 billion from ITA - RICE Fragrant Rice Research & Export Investment JSC; and VND177 billion from Phuong Nam Informatics Investment & Construction Consulting JSC.
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