Chairman of Audit Committee of Tri Viet Asset Management (TVC) submitted resignation
Recently, Tri Viet Asset Management Corporation (TVC) announced that it received the resignation letter of Ms. Nguyen Thi Dinh Huong - Member of the Board of Directors and Chairwoman of the Audit Committee of Tri Viet Asset Management.
Ms. Huong was appointed as Chairwoman of TVC's Audit Committee for the 2022 - 2027 term and has just submitted her resignation for personal reasons, unable to undertake and fully complete her duties at TVC.
TVB and TVC have faced many storms since the Chairman was arrested for stock manipulation (Photo TL)
Ms. Huong's resignation has caused a stir among the company's shareholders because this incident occurred right before the 2023 Annual General Meeting of Shareholders, scheduled to be held on June 24, 2023. In addition, the poor business situation, declining revenue, and the fact that TVC shares were transferred from controlled to restricted trading by HNX are also things that make shareholders even more worried.
TVC's revenue has plummeted since the chairman was arrested.
Regarding the business situation of Tri Viet Asset Management, since the Chairman of the Board of Directors, Mr. Pham Thanh Tung, was prosecuted for stock market manipulation, related to the manipulation of two stock codes BII and TGG, TVC has suffered many storms.
In the first quarter of 2023, TVC's revenue only reached 18 billion VND in net revenue, down 76% compared to the same period last year. Cost of goods sold also decreased in line with revenue but at a rate of only 66%.
Gross profit in the period reached 14 billion VND, gross profit margin decreased from 83% to only 76%. Financial revenue in the first quarter of TVC was almost non-existent. Meanwhile, financial expenses were negative 79 billion VND thanks to the reversal of securities devaluation provisions of up to 83 billion. Thanks to this reversal, the company's after-tax profit was recorded at 80 billion VND, 2.6 times higher than the same period.
According to Tri Viet Asset Management, the reason for the decrease in revenue was due to the decline in brokerage and margin lending activities, reaching only 4 billion and 13 billion VND. Meanwhile, financial revenue decreased sharply, almost nothing was recorded in the quarter, which also affected business results.
TVC's business difficulties have been noted since the company's board of directors was caught up in the scandal of the Louis family's "stock price inflation". Among them, Mr. Pham Thanh Tung, who used to be the Chairman of the Board of Directors of Tri Viet Asset Management, was prosecuted.
Another company in the same ecosystem involved in this case is Tri Viet Securities (TVB). Tri Viet Securities’ CEO, Do Duc Nam, has also been prosecuted along with Do Thanh Nhan, Chairman of Louis Holdings.
TVC is losing hundreds of billions of dong in stocks
At the end of the first quarter of 2023, Tri Viet Asset Management's total assets were recorded at VND 2,248.5 billion. Most of which were short-term assets, cash and cash equivalents recorded at VND 81.6 billion.
Notably, more than half of the company's assets are recorded as securities investments. This investment amounts to VND1,301.5 billion.
It is worth noting that at the end of the first quarter, the provision for risks of devaluation of trading securities recorded a negative value of VND 292.9 billion. This means that the securities codes that TVC bought and held were decreasing in price, causing the company to temporarily record a loss of VND 292.9 billion.
In the Q1 financial statement, TVC recorded an investment of VND897.4 billion in HPG, but the fair value in Q1 was only VND622.6 billion. Next is FPT with a holding of VND289.4 billion, with a provision for price reduction of about VND1.8 billion. Other securities in TVC's portfolio include MWG, TDH, MBB, NKG, DDV...
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