The Ho Chi Minh City Stock Exchange (HOSE) has just announced the mandatory delisting of more than 1.1 billion HNG shares and more than 347 million HBC shares, causing many holders of these two stocks to worry.
Stocks trade sluggishly
Holding HBC shares, Ms. Thanh Nga (37 years old, Thanh Xuan District, Hanoi) felt like she was sitting on hot coals when she suddenly received news that HBC shares were delisted: "I just heard the news last weekend so I haven't had time to do anything, now I don't know what to do."
Ms. Nga's concern is also the concern of many HBC investors when the Ho Chi Minh City Stock Exchange (HOSE) sent a document to Hoa Binh Construction Group Corporation (HBC, HOSE) , informing that HBC is in a case of mandatory delisting and the Stock Exchange will delist HBC shares according to regulations.
Accordingly, Hoa Binh Construction Group of Chairman Le Viet Hai had undistributed profit after tax as of December 31, 2023 of negative VND 3,240 billion, exceeding the company's actual contributed charter capital of VND 2,741 billion.
Pursuant to Point e, Clause 1, Article 120 of Decree No. 155/2020/ND-CP dated December 31, 2020 and Official Dispatch No. 4615/UBCK-PTTT dated July 24 of the State Securities Commission , HOSE announces that HBC shares are subject to mandatory delisting and will delist these shares according to regulations. Specifically, violations in the following cases: Business production results are losses for 3 consecutive years or the total accumulated loss exceeds the actual contributed charter capital or negative equity in the audited financial statements (BCTC) of the most recent year before the review time.
Quite unusual developments at HBC since the beginning of the year (Photo: SSI iBoard)
On the stock exchange, HBC shares recorded quite positive developments reaching the threshold of 9,000 VND/share at the beginning of this year. However, this fluctuation was not very stable, HBC continuously adjusted at the threshold of 7,000 - 9,000 VND/share.
At the end of the session on July 26, HBC shares were priced at VND7,250, down 8% compared to the beginning of the year. The market capitalization was approximately VND2,500 billion, only 1/5 compared to October 2017.
Accordingly, 347.2 million HBC shares will be delisted from HOSE and transferred to UPCoM (under Hanoi Stock Exchange - HNX). This transfer of trading floors is expected to be completed in August 2024.
In response to this information, HBC pledged to continue to strictly implement its information disclosure obligations as prescribed, ensuring transparency and protecting the rights of shareholders and investors. "We are fully aware of the importance of maintaining a continuous and reliable information channel with the investment community, especially during this transition period," HBC's announcement said.
Profit fluctuates erratically, consecutive losses due to high cost of goods sold
Also violating the above case, Hoang Anh Gia Lai International Agriculture Company (HNG, HOSE), chaired by billionaire Tran Ba Duong, will also have its shares delisted from the HOSE.
Specifically, based on Article 120 of Decree No. 155/2020/ND-CP, all more than 1.1 billion HNG shares will be delisted because they have suffered 3 consecutive years of losses.
According to the audited consolidated financial report, the company lost more than VND 1,119 billion in 2021, more than VND 3,576 billion in 2022, and more than VND 1,098 billion in 2023. The main reason is that the cost of goods sold and expenses increased significantly.
In addition, observing the profits of recent years at HNG, the fluctuations were not very stable, before extending to 3 consecutive years of losses of thousands of billions of VND. HNG had losses for 2 consecutive years in 2018-2019.
Profit after tax development at HNG in recent years
Source: Financial Statements
In the latest financial statement in the first quarter of 2024, HAGL Agric earned nearly VND94 billion in net revenue, down more than 26% compared to the same period last year. Due to high cost of goods sold, after-tax profit "regressed", losing up to VND47 billion, becoming the 13th consecutive quarter in a loss. But on the positive side, the loss has improved significantly compared to the loss of over VND110 billion in the same period last year.
As of the end of March 2024, HNG recorded a total debt of nearly VND 11,760 billion, with the largest creditor being Truong Hai Agriculture (a member of THACO), with more than VND 6,000 billion. Along with that is a debt of VND 1,120 billion with Hoang Anh Gia Lai Joint Stock Company (HAG, HOSE).
On the floor, HNG shares are also under control. The stock price is quite modest, mainly trading in the range of 4,000 - 5,000 VND/share since the plunge in April 2022 (trading over 10,000 VND/share) until now.
According to regulations, shares of a company that is delisted but still meets the condition that a public company must register for trading on the UPCoM trading system. The public company must complete the registration of shares at the Vietnam Securities Depository and Clearing Corporation and register for trading on the UPCoM trading system.
Within 7 working days from the effective date of delisting, the Stock Exchange shall coordinate with the Vietnam Securities Depository and Clearing Corporation to register trading for the shares of the delisted company.
Source: https://phunuvietnam.vn/nha-dau-tu-nhu-ngoi-tren-lua-khi-gan-15-ty-co-phieu-hbc-va-hng-bi-huy-niem-yet-20240728012926772.htm
Comment (0)