The State Securities Commission has just issued a decision to administratively sanction Dat Xanh Group Corporation (DXG), with a total fine of more than VND515 million.

Dat Xanh Group was heavily fined for failing to disclose important transaction information that needed to be disclosed related to Mr. Luong Tri Thin, currently a member of the Board of Directors (BOD) and before July 3, the Chairman of the Board of Directors.

Specifically, Dat Xanh was fined VND 350 million for changing the capital use plan, the amount of money collected from the public securities offering but not through the 2023 General Meeting of Shareholders (GMS). DXG used VND 36.56 billion out of the total VND 1,220 billion collected from the offering to pay off the loan to Ha An Real Estate Investment and Trading JSC without going through the GMS.

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Mr. Luong Tri Thin, member of Dat Xanh Board of Directors. Photo: DXG

Dat Xanh was fined 65 million VND for incomplete disclosure of information on a number of corporate governance reports from 2022 to the first half of 2024. Among them, there was a transaction to borrow 30 billion VND from Mr. Luong Tri Thin in the first half of 2024.

DXG also did not report on the guarantee for loans to some related companies as well as the transaction of borrowing VND 150 billion from Mr. Luong Tri Thin recorded at the end of 2023.

In addition, DXG did not present information about two companies (Ihouzz and Tulip) - related to Mr. Luong Tri Thin in the prospectus - offering additional shares to the public in 2023. At that time, Mr. Luong Tri Thin was the Chairman of the Board of Directors of Dat Xanh, concurrently the Chairman of the Board of Directors of Ihouzz Technology JSC and the Chairman of the Board of Directors of Tulip Real Estate Financial Services JSC.

Dat Xanh was also fined VND 100 million for not disclosing information that must be disclosed according to regulations on documents on a number of Board of Directors resolutions approving the signing of contracts, agreements, transactions with related parties... as well as not disclosing documents reporting the use of funds from bond issuance that have been audited in the first 6 months of 2023.

In addition, Dat Xanh did not disclose information on time as prescribed, including information on documents from a number of court judgments... related to construction contract disputes with service providers.

According to the recently released consolidated financial report, in the third quarter, Dat Xanh Group Corporation (HoSE: DXG) recorded real estate brokerage service revenue of nearly VND 353 billion, nearly 2.6 times higher than the same period. Accumulated in 9 months, DXG reached nearly VND 829 billion, nearly 2.1 times higher than the first 9 months of 2023.

DXG's revenue from selling apartments and land in the first 9 months reached more than VND 2,172 billion compared to VND 1,733 billion in the same period.

Real estate market 2024: 'Best time to hunt'? The most difficult time is always the best time to "hunt". Many real estate businesses are facing difficulties due to massive project development and high financial leverage. But besides that, there are also many healthy businesses and this is the time when they will "hunt".