More than 60.3 million shares of furniture manufacturing firm Đại Châu Group (DCS) will be forced to stop trading on the HNX from May 24 after auditors refused to express an opinion on the company’s 2018 financial statement.
Đại Châu reported revenue of VNĐ56.4 billion in 2018, equivalent to 38 per cent of the previous year’s figure, while it incurred losses of VNĐ1 billion, down substantially from the VNĐ2.7 billion loss in 2017.
However, Nhân Tâm Việt Auditing Co Ltd said it could not gather solid information to prove the company’s grounds for setting up a provision for devaluing long-term securities investments. The company had not recorded interest on the money it lent to individuals and organisations from the transfer of a property project in Tây Hồ District, Hà Nội in the last six months of 2018.
The price of DCS is negligible with just VNĐ600 (three US cents) per share but its liquidity is relatively good with hundreds of thousands of shares exchanged per session.
Trading of Sông Đà Investment and Construction JSC (SDD) will also be terminated for the same reason. In 2018, the company earned total revenue of VNĐ48.6 billion, up 25.6 per cent on-year, but its losses doubled from 2017 to VNĐ11.2 billion.
This is also the third year SDD has reported losses with cumulative value of VNĐ19.4 billion.
Nearly 16 million SDD shares will stop trading on the HNX on June 4.
The four other companies involved after three consecutive years of incurring losses include construction company Vinaconex 39 JSC (PVV), DMC – Northern Petroleum Chemicals JSC (PCN), Đà Lạt Real Estate JSC (DLR) and CMISTONE Vietnam JSC (CMI)
Vinaconex 39 reported a VNĐ51 billion loss in 2018, lifting its accumulated losses to VNĐ251 billion by year-end. It will halt trading on May 24.
Four million shares in DMC – Northern Petroleum Chemicals JSC (PCN) will be annulled on May 23; 4.5 million shares in DLR on May 24; and 15 million shares in CMI on June 6.
A number of other companies are also facing the risk of being delisted, including Hòa Bình Minerals JSC (KHB), Sài Sơn Cement JSC (SCJ), ASA Consumer Product JSC (ASA) and ALV Infrastructure Development Investment JSC (ALV).
These companies have either yet to submit their 2018 financial statements or been turned down by auditors. — VNS
