Mr. Le Hong Minh's VNG (VNZ) lost another 489 billion and was fined by the State Securities Commission.

VNG (VNZ) lost another 520 billion in the first 6 months of the year

VNG Corporation (Code: VNZ) has just announced its business results for the second quarter of 2024. Of which, net revenue reached VND 2,054.7 billion, unchanged compared to the same period. Cost of goods sold accounted for VND 1,407.6 billion, leaving gross profit at only VND 647.1 billion, down 18.6%.

Notably, during the period, financial revenue increased from 24.4 billion to 84.8 billion VND. Meanwhile, financial expenses decreased by more than half, down to 38.6 billion VND. Interest expense accounted for the majority of financial expenses with 36.2 billion VND.

VNG Corporation (code: VNZ) has just been fined by the State Securities Commission in the context of poor business results, losing an additional 520 billion in the first 6 months of the year (Photo TL)

Business operations at the affiliated company have reduced losses compared to the same period, from a loss of VND 205.6 billion in the second quarter of 2023 to VND 17.9 billion. Sales expenses are still accounting for VND 554.9 billion. Business management expenses have been reduced, to only VND 332 billion.

As a result, VNG recorded a loss after tax in the second quarter of 2024 of VND 489 billion. The loss after tax for the parent company's shareholders was VND 462.2 billion. Compared to the same period, the loss has decreased but not significantly.

VNG's accumulated revenue in the first 6 months of the year reached 4,313.7 billion VND, up 30%. Total accumulated loss in the first half of the year was 520.4 billion VND, down 56.8% over the same period.

At the 2024 Annual General Meeting of Shareholders, VNG set a revenue target of VND 11,000 billion, an increase of 46% compared to 2023, along with a profit after tax of VND 195 billion. Thus, after the first 6 months of the year, the loss of VND 520 billion has pulled VNG further away from the set target.

VNG has just been fined by the State Securities Commission for its loss-making business.

Business activities are not promising with losses of hundreds of billions of VND, VNG has just been fined by the State Securities Commission (SSC) for administrative violations in the field of securities and the stock market with a total amount of 157.5 million VND.

Specifically, the State Securities Commission has just issued a decision to sanction administrative violations in the field of securities and the securities market against VNG Corporation. In particular, the company was fined 92.5 million for not disclosing information as prescribed.

Information that has not been disclosed by VNG in accordance with regulations includes: Resolution of the Board of Directors No. 10/2022/NQ-HĐQT dated September 8, 2022 approving the mortgage of the company's assets to secure the debt obligations of Big V Technology JSC (a major shareholder and related party); Audited separate and consolidated financial statements for 2023; Annual report for 2023.

The above documents have not been published by VNG on the State Securities Commission's Information Disclosure System, the Hanoi Stock Exchange's website, and the Hanoi Stock Exchange's website.

In addition, VNG was also fined VND65 million for not disclosing information about transactions with its major shareholder, Big V Technology. With this transaction, VNG used a deposit account opened at Citybank to secure a loan for BigV Technology at Citybank Singapore branch. The audited financial statements for 2022 and 2023 also did not fully present this transaction.

VNZ shares lose more than half their market value

Once the most expensive stock on the Vietnamese stock market, VNZ was once traded at VND1,249,000/share. However, the liquidity per session was not large, only from a few thousand to more than ten thousand shares per session.

In the past year, business results with consecutive losses have dragged down VNZ's market price.

Since the beginning of 2022, VNG has gone through 10 business quarters. Of which, 9 quarters were losses, the company only reported a profit in the second quarter of 2023. The losses ranged from tens to hundreds of billions of VND.

In the trading session on August 6, 2024, VNZ shares are currently only traded at VND 526,500/share, down 57.8% compared to the peak reached 1 year ago.

Source: https://www.congluan.vn/vng-vnz-cua-ong-le-hong-minh-lo-them-489-ty-bi-ubcknn-xu-phat-post306545.html