Hoa Binh Construction commits to bring shares back to HoSE within 2 years
The Board of Directors of Hoa Binh Construction Group committed to bringing HBC shares back to HoSE within the next two years after being delisted and transferred to UPCoM from September 18.
Hoa Binh Construction Group Joint Stock Company (stock code: HBC) said that more than 347 million HBC shares were officially traded on the UPCoM floor of the Hanoi Stock Exchange (HNX) from September 18.
The reference price of the first session was VND5,700, equivalent to the closing price of the last trading session of this stock on the HoSE.
In a document sent to shareholders, a representative of Hoa Binh Construction Group emphasized that the transfer of the trading floor from HoSE to UPCoM does not affect the basic rights and interests of shareholders. The company also affirmed that it will continue to fulfill its obligation to disclose information according to regulations, ensuring transparency and protecting the rights of shareholders and investors.
“After a period of many events, Hoa Binh is gradually improving its financial indicators and with outstanding efforts is determined to restore its position. We commit that, in the next 2 years, HBC shares will grow well and are determined to soon re-list on HoSE,” HBC’s document said.
HBC was forced to delist from September 6 due to undistributed profit after tax as of December 31, 2023 being negative VND 3,240 billion, exceeding the company's actual contributed charter capital of VND 2,741 billion.
Upon receiving the notice of delisting at the end of July 2024, HBC responded in writing to the management agency and said it did not agree with the grounds for HoSE to compulsorily delist HBC shares of this enterprise .
Mr. Le Viet Hai, Chairman of Hoa Binh Construction Group, cited the reasons for his objection as Decree 155 does not provide detailed regulations on considering the conditions of accumulated losses on the consolidated audited financial statements, or on the separate audited financial statements. Currently, there is no legal document from any competent authority guiding the application or interpretation of the law in this case.
The company's charter capital is VND2,741 billion, while the after-tax profit in the 2023 audited financial statements is negative VND2,401 billion and in the 2023 audited consolidated financial statements is negative VND3,240 billion. Thus, the total accumulated loss of HBC in the audited financial statements has not exceeded the charter capital. In addition, Mr. Hai said that HoSE's consideration of delisting HBC shares based on previous precedents is not in accordance with current law.
In the last trading session on HoSE on September 5, HBC increased by 5.5% and appeared in the list of stocks with the most positive impact on VN-Index. This stock matched 2.9 million units, an increase of more than 660,000 units compared to the previous session and extended the streak of 7 consecutive sessions with a trading volume of over 1 million shares.
Regarding the business situation, in the first half of 2024, Hoa Binh Construction's audited net revenue reached VND3,812 billion, up slightly from the previously announced VND3,811 billion. The company reported a revised gross profit of VND105 billion, down 13% from the VND121 billion in its self-made report. The difference comes from the parent company's adjustment of data related to the classification of cost of goods sold and other income.
Financial income increased after auditing due to the parent company recording additional interest on late payments from customers, from VND 160 billion to VND 195 billion. Other profits also fluctuated strongly, increasing from VND 518 billion to VND 555 billion after auditing due to upward adjustments at the parent company and at the subsidiary related to receivables from investors . An Hai bridge project .
This is the main reason why the company's after-tax profit increased from VND 740 billion to VND 830 billion after auditing, an increase of VND 90 billion.
Compared to the total revenue target of VND10,800 billion (up 43.3% over the same period) and after-tax profit of VND433 billion set at this year's general meeting of shareholders, Hoa Binh Construction has completed 35.3% of the revenue plan and exceeded 91.6% of the profit target.
As of the end of June 2024, Hoa Binh Construction's total assets reached VND 15,790 billion, an increase of VND 540 billion compared to the beginning of the year and an increase of VND 158 billion compared to the self-made report. Short-term items accounted for VND 14,169 billion in the company's asset structure. Of which, the company's cash and cash equivalents were nearly VND 305 billion.
As of June 30, 2024, the company had an accumulated loss of VND2,403 billion and some overdue debts. “These signs indicate the existence of material uncertainties that may cast doubt on Hoa Binh Construction’s ability to continue as a going concern,” the auditors said in the financial report.
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