VNDirect (VND) invested in Loc Troi and lost 40%, appointed the husband of female tycoon Minh Huong as Vice Chairman

Female tycoon Minh Huong - Vu Hien couple hold the positions of Chairman and Vice Chairman of VNDirect

VNDirect Securities Corporation (Code: VND) has just appointed Mr. Vu Hien - Member of the Board of Directors as Permanent Vice Chairman of the Board of Directors of the company from October 11, 2024.

After this appointment decision, the structure of VND's Board of Directors includes 5 members: Ms. Pham Minh Huong - Chairwoman of the Board of Directors; Mr. Vu Hien - Permanent Vice Chairman; Mr. Mai Huu Dat - Vice Chairman of the Board of Directors; Mr. Nguyen Vu Long - Member of the Board of Directors and General Director; Mr. Vu Viet Anh - Independent Member of the Board of Directors.

VNDirect has just appointed Ms. Minh Huong's husband - tycoon Vu Hien to the position of Vice Chairman of the Board of Directors (Photo TL)

Not only holding VnDirect Securities, the tycoon couple Vu Hien - Minh Huong are also the founders of IPA Investment Group Corporation (Code: IPA) and are the Chairman of the Board of Directors, the legal representative of the company. Mr. Hien is also a member of the Board of Directors of 2 other companies, H&H Investment Management Company Limited and the Chairman of the Board of Directors of Bac Ha Energy Corporation.

Under the management of tycoon Vu Hien, IPA is also the largest shareholder of VNDirect, owning 25.84% of shares. The investment in VNDirect alone accounts for half of IPA's assets. Recently, Mr. Vu Hien's IPA has also been noticed when financial expenses in the second quarter of 2024 "increased" by 4 times, putting great pressure on business results.

Loss of nearly 40% when investing in Loc Troi Group (LTG) shares

Established in 2006, VNDirect is known as a reputable securities company in the Vietnamese market. Regarding business activities, in the second quarter of 2024, VNDirect recorded revenue of VND 1,458 billion, down 8% over the same period. The parent company's net profit reached VND 345 billion, down 18%. Compared to previous quarters, the company had its worst business quarter in the past year.

According to the explanation, operating expenses during the period increased by 42%, accounting for VND803 billion. Meanwhile, losses from FVTPL financial assets increased by 36%, accounting for VND538 billion.

Financial provision expenses, which increased 51 times over the same period, accounted for VND98 billion. These expenses significantly eroded VNDirect's revenue, causing net profit to decline.

Notably, revenue from securities brokerage during the period also decreased by 10%, to only VND 182 billion. Fortunately for VND, Q1 profit "carried" the entire Q2, thereby pulling the business results of the first half of the year back on track.

Securities brokerage activities are declining, and the proprietary trading sector is also showing some problems. Financial assets recorded through profit/loss (FVTPL) are only 272 billion VND, down 51% compared to the same period.

In addition, VNDirect also holds more than VND8,600 billion in unlisted bonds, VND7,400 billion in certificates of deposit and VND2,200 billion in listed bonds. Compared to the beginning of the year, the amount of bonds owned by VND has increased significantly.

The amount of stocks held in the portfolio also increased sharply, with listed stocks accounting for VND 1,600 billion and unlisted stocks accounting for VND 1,300 billion. Notably, the investment in LTG shares of Loc Troi Group Joint Stock Company accounted for VND 115 billion, temporarily losing 39% at the end of the second quarter of 2024.

In fact, this loss could be even higher because LTG shares are having sharp declines after the "scandal" related to leadership and cash flow difficulties.

At the end of the second quarter of 2024, VNDirect's total assets were recorded at VND 45,153 billion. Of which, liabilities accounted for VND 27,869 billion, equivalent to 61.7% of total capital.

Source: https://www.congluan.vn/dau-tu-vao-tap-doan-loc-troi-thua-lo-40-vndirect-vua-bo-nhiem-chong-nu-dai-gia-minh-huong-lam-pho-chu-cich-post316578.html