Violating a series of regulations, Hoang Huy Finance received a penalty

For violating a series of regulations on information disclosure, Hoang Huy Financial Services Investment Joint Stock Company (TCH) was administratively fined a total of VND 295 million by the State Securities Commission.

For violating a series of regulations on information disclosure, Hoang Huy Financial Services Investment Joint Stock Company (TCH) was administratively fined a total of VND 295 million by the State Securities Commission.

On December 5, 2024, the State Securities Commission issued a Decision on administrative sanctions for violations in the field of securities and the securities market and a Decision on compulsory application of remedial measures against Hoang Huy Financial Services Investment Joint Stock Company (TCH).

Accordingly, TCH was fined VND 92.5 million for failing to disclose information that must be disclosed according to the law as prescribed in Point a, Clause 4, Article 42 of Decree No. 156. TCH did not disclose information explaining the difference in after-tax profit compared to the previous period of the separate financial statements of the following periods: Quarter IV of 2021, Semi-annual of 2021, Quarter II of 2021, Quarter I of 2021, 2020, Quarter IV of 2020.

The company was also fined VND 65 million for the act of disclosing information with incomplete content as prescribed by law as prescribed in Point b, Clause 3, Article 42 of Decree No. 156. TCH disclosed incomplete information about transactions with related parties of the company in the Corporate Governance Report for 2021, 2022, 2023.  

Specifically, according to the audited separate financial statements for 2021, TCH has transactions with related parties that are subsidiaries; however, in the 2021 Corporate Governance Report (reporting period 01/01-31/12/2021), the company does not list transactions with related parties that are subsidiaries.  

According to the audited separate financial statements for 2022, TCH has revenue from sales and service provision with related parties being subsidiaries including Hoang Huy Service Investment JSC, Thinh Hiep Construction JSC, Thinh Phat Real Estate Construction JSC, Pruksa Vietnam Co., Ltd., Hoang Giang Service Development JSC; transactions with subsidiaries including Thinh Hiep Construction JSC and Thinh Phat Real Estate Construction JSC; financial revenue from receiving dividends worth VND 320 billion in July 2022 and VND 66.5 billion in December 2022 from the subsidiary CRV Real Estate Group JSC; however, in the 2022 Corporate Governance Report, TCH did not list the above transactions.  

According to the audited separate financial statements for 2023, TCH contributed additional capital to its subsidiary, To Hieu Investment JSC, but the 2023 Corporate Governance Report did not list this transaction.

TCH also violated regulations on transactions with shareholders, business managers and related persons of these entities and was fined an additional VND137.5 million.  

According to the audited separate financial statements for 2022, TCH has sales revenue and service provision transactions with related parties including Thinh Hiep Construction JSC under the Office Lease Contract dated November 1, 2017 and Contract Appendix dated January 1, 2022 (effective until December 31, 2024) and Thinh Phat Real Estate Construction JSC under the Office Lease Contract dated June 19, 2018 and Contract Appendix dated June 19, 2022 (effective until June 18, 2023). However, it was not until July 24, 2023 that TCH's Board of Directors issued Resolution No. 06/2023/NQ-HDQT approving the Office Lease Contract with Thinh Hiep Construction JSC and Thinh Phat Real Estate Construction JSC.

With the above series of violations, TCH was fined a total of VND 295 million and forced to cancel information or correct information for the 2021 Annual Report according to regulations.  

Source: https://baodautu.vn/vi-pham-hang-loat-quy-dinh-tai-chinh-hoang-huy-nhan-an-phat-d231955.html