With its stock hitting the ceiling for 5 consecutive sessions, TMT Automobile Joint Stock Company - the manufacturer, assembler and distributor of Wuling electric vehicles in Vietnam - will have to explain as requested by HoSE.
TMT shares hit ceiling after news that the company sells electric cars for under 150 million VND - Photo: TMT
On the last day of 2024, Ho Chi Minh City Stock Exchange (HoSE) sent a document to TMT Automobile Joint Stock Company requesting an explanation when its stock price increased to the ceiling for 5 consecutive sessions from December 25 to 31.
According to current regulations, public companies must disclose information within 24 hours from the occurrence of one of the following events: In case the company becomes aware of an event or information that affects the price of its own securities, the company must confirm or correct that event or information.
Therefore, HoSE requests TMT to disclose information according to the above regulations.
At the end of the session on December 31, the market price of each TMT share increased to the maximum range of 9,840 VND. After increasing "vertically" from the session on December 24 until now, the market price of TMT shares increased by nearly 40% after 1 week and 43% after 1 month.
The new document was sent on the afternoon of December 31, TMT Auto has not yet provided an explanation.
TMT shares have increased since TMT Motors announced that it is negotiating with partner General Motors - SAIC - Wuling (SGMW) to launch a commercial version of the product that can replace motorbikes with an expected price including battery of less than 150 million VND.
According to information from TMT, this car has an overall length of 2,488 mm, width of 1,506 mm and height of 1,670 mm.
This model was launched in China in July 2017 in Liuzhou city, Guangxi province, China with the mission of gradually replacing motorbikes and improving the environment, reducing emissions caused by vehicles.
Currently, TMT Motor is a partner of the General Motors - SAIC - Wuling (China) joint venture to manufacture, assemble and distribute Wuling Mini EV electric cars in Vietnam.
Notably, TMT shares increased sharply despite the company's poor business performance. In the semi-annual audit report, the auditor said that TMT's short-term debt exceeded its short-term assets by more than VND120 billion.
Therefore, the auditor found that "the existence of a material uncertainty may cast doubt on TMT Motors' ability to continue as a going concern".
According to the explanatory notes to the financial report, in the second quarter of 2024, to ensure liquidity and reduce interest expenses, the company said it had to reduce selling prices to clear inventory. In addition, they have also cut staff, cut costs, and determined to restructure product lines, aiming for new and better products.
The company also said it has plans to liquidate fixed assets, investments, and collect customer receivables to supplement business capital as well as cover debts and loans due.
Accordingly, the company expects to be able to repay its debts as they fall due and continue operations in the next accounting period. Based on this basis, the company's management prepares the consolidated financial statements on the basis of meeting the going concern assumption.
Source: https://tuoitre.vn/mot-cong-ty-o-to-viet-nam-sap-ban-xe-dien-gia-duoi-150-trieu-dong-phai-giai-trinh-vi-co-phieu-20241231200719973.htm
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