SJF stock falls under control, how does Sao Thai Duong Investment overcome this?

SJF stock was transferred from warning status to controlled status from October 11, 2024 according to the decision of the Ho Chi Minh City Stock Exchange. Ho Chi Minh issued on 4/10.

The reason is that Sao Thai Duong Investment was 30 days late in submitting its audited semi-annual financial report, which is subject to control under the provisions of the Listing and Trading Regulations on Listed Securities.

In the explanatory letter sent to HoSE dated 9/10, SJF stated that the reason for the delay in submitting the audited semi-annual financial report was due to the restructuring of subsidiary BWG Mai Chau from April 2024, leading to a comprehensive change in management and personnel. There were some items that had not collected enough documents as required by the auditor from the old management personnel who had resigned.

Therefore, the auditor does not have enough information to issue the reviewed semi-annual audit report, because it needs to review and evaluate the data on financial investment provisions in subsidiaries for the investment of the parent company SJF. Accordingly, SJF cannot submit the reviewed semi-annual financial report.

SJF shares of Sao Thai Duong Investment JSC were transferred from warning status to controlled status from date October 11, 2024.

Presenting a solution, SJF said that the board of directors directed relevant departments to actively collect documents and provide them to the auditor as quickly as possible. On the other hand, the company is reviewing and re-evaluating the effectiveness of investments, focusing on investments with high efficiency and divesting ineffective business operations.

Previously, on July 30, SJF sent the State Securities Commission and HoSE an explanatory report related to after-tax profit on the consolidated financial statements for the second quarter of 2024 compared to the same period last year.

In the second quarter of this year, sales revenue and cost of goods sold both decreased by approximately 14% compared to the same period in 2023. Specifically, revenue in the second quarter of 2024 reached VND 18,2 billion, while in the same period last year it reached VND 21,1 billion. Cost of goods sold in the second quarter of 2024 was VND 21,1 billion, down from VND 24,8 billion recorded in the same period last year.

Gross profit generated during the period was unprofitable, and business management expenses were similar to the same period in 2023. In the second quarter of 2024, the company also made provisions for investments.

According to SJF, these reasons caused the after-tax profit on the financial report for the second quarter of 2024 to lose more than 4,5 billion VND.

Regarding the divestment plan, on 28/9, SJF approved the withdrawal of all capital from TONA Investment and Construction Joint Stock Company. Accordingly, the Board of Directors was assigned to find a partner to transfer shares at TONA Construction in the year 2024, with an expected price from 1.000 VND to 20.000 VND/share.

As of June 30, 2024, SJF owns 96,54% of shares in BWG Mai Chau Joint Stock Company, 93% of shares in Sunstar Ecotech Vietnam Joint Stock Company, and 49% of shares in TONA Construction affiliated company.

SJF's decision to divest from TONA Construction comes in the context that Sao Thai Duong Investment Company has just approved a plan to contribute capital to staBOO Vietnam Infrastructure Joint Stock Company in mid-month August 2024. According to the plan, SJF will invest 200 billion VND, increasing the charter capital of staBOO Infrastructure from 36 billion VND to 236 billion VND, and SJF will hold 84,75% of the charter capital of this company.

Established in 2012, SJF operates mainly in the field of providing manufacturing solutions. Agriculture Clean application of microbiological technology, investment in organic agricultural production, providing high quality clean food and industrial production of pressed bamboo.

Currently, the Chairman of the Board of Directors is Mr. Nguyen Tri Thien, Mr. Nguyen Trong Nghia holds the position of General Director and member of the Board of Directors.

Thu An