Investors flee LDG shares after Mr. Nguyen Khanh Hung was prosecuted

On December 1, LDG shares were sold off at the floor price right from the opening of the stock market. Buyers continuously left the floor empty while sellers rushed in orders. By the time the market closed, there were still nearly 41 million LDG shares sold at the floor price of VND3,450 while only over 900,000 units were matched. The investors fled after Mr. Nguyen Khanh Hung, Chairman of the Board of Directors and legal representative of LDG, was temporarily detained.

LDG River project is invested by LDG Investment Joint Stock Company.

Regarding LDG shares on the stock exchange, in mid-August, Mr. Nguyen Khanh Hung sold more than 2.6 million LDG shares without reporting or disclosing information. This transaction was later canceled by the State Securities Commission, which also fined Mr. Hung more than VND500 million.

At the current price, LDG shares have fallen nearly 87% from their peak of VND25,000 in early 2022. With the recent continuous decline, many investors have also suffered heavy losses when they accidentally poured money into LDG shares.

Recently, at the end of November, LDG Company itself was also announced by the State Securities Commission to be fined 130 million VND for administrative violations due to not disclosing information on time and not fully disclosing the content of the audited 2022 Financial Report; the reviewed 2023 Semi-Annual Financial Report as well as transactions with related parties...

In total, in the first 9 months of 2023, LDG achieved net revenue of only nearly 486 million VND, with a loss after tax of 209 billion VND, while in the same period last year, it still achieved revenue of more than 146 billion VND and profit after tax of more than 8.3 billion VND.

Yesterday (November 30), the Investigation Police Agency of Dong Nai Province Police issued a decision to prosecute and arrest Mr. Nguyen Khanh Hung, Chairman of the Board of Directors and legal representative of LDG, for the crime of "Deceiving customers" as prescribed in Article 198 of the 2015 Penal Code (amended and supplemented in 2017). Immediately afterwards, LDG announced that Mr. Nguyen Khanh Hung had authorized all related matters to the Board of Directors and the Executive Board to carry out related activities, ensuring the normal operation of the company. The above incident did not affect LDG's plans, strategies, production and business activities...

Source link: https://thanhnien.vn/nha-dau-tu-thao-chay-khoi-co-phieu-ldg-sau-khi-ong-nguyen-khanh-hung-bi-khoi-to-185231201142040076.htm