Recently, the State Securities Commission has just issued a decision to sanction two enterprises, Central Electromechanical Corporation (Code CJC) and Luong Tai Construction Investment Corporation, for disclosing false information and failing to report in accordance with state regulations.
Central Electromechanical Corporation (CJC) was fined 150 million VND (Photo TL)
Central Electromechanical Corporation (CJC) was fined 150 million VND
In particular, Central Electromechanical Joint Stock Company (CJC) announced false information in the 2022 corporate governance report about transactions with its partner, Austdoor Aluminum Joint Stock Company, with a total transaction value of up to VND 20,299 billion. The General Director of Austdoor Aluminum Joint Stock Company is Mr. Duong Quoc Tuan, who is also a member of the Board of Directors of CJC.
According to regulations, transactions of related parties with the company must be recorded in the Company's 2022 Corporate Governance Report. However, CJC did not include this transaction in the Corporate Governance Report or the 2022 Audited Financial Report.
For this violation, CJC was fined 150 million VND by the State Securities Commission.
Central Electromechanical Company, formerly known as the Electromechanical Repair Enterprise of Electricity Company 3, was established in 1987. In 2006, the company transformed into a joint stock company with the main business activity being the manufacture and installation of hydromechanical equipment for hydroelectric and irrigation projects.
In the first quarter of 2023, the company recorded net revenue of VND 41 billion, profit after corporate income tax of VND 401 million. Currently, CJC stock price is fluctuating around VND 27,000 in the trading session on May 15, 2023.
Luong Tai Construction Investment Joint Stock Company (LUT) was fined 100 million VND.
On the side of Luong Tai Construction Investment Joint Stock Company (LUT), the company did not publish a number of documents as prescribed, including the corporate governance report for 2020 and 2021, the 2020 annual report, the audited financial report for 2022...
In addition, Luong Tai Construction Investment also published a number of reports not on time according to state regulations.
For the above violations, LUT was fined 100 million VND by the State Securities Commission.
Regarding business activities, Luong Tai Construction Investment Joint Stock Company was formerly known as the Road Maintenance and Mechanical Construction Team, established in 1987. In 2003, the Road Maintenance and Mechanical Construction Team was renamed Luong Tai Construction Joint Stock Company with a charter capital of 10 billion VND. Later, the name was changed to Luong Tai Construction Investment Joint Stock Company.
For 3 consecutive quarters since the third quarter of 2022, the company has had no revenue and only recorded losses of several hundred to billions of VND from business operations. Currently, LUT shares are also subject to trading restrictions at a price of 1,700 VND/share. The Hanoi Stock Exchange also announced that LUT shares are likely to be delisted according to regulations due to the auditor's refusal to comment on the company's 2022 financial statements.
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