|Illustrative image (Photo: VNA)
More than 60.3 million shares of furniture manufacturing firm Dai Chau 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.
Dai Chau reported revenue of 56.4 billion VND in 2018, equivalent to 38 percent of the previous year’s figure, while it incurred losses of VNĐ1 billion, down substantially from the 2.7 billion VND loss in 2017.
However, Nhan Tam Viet 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 Tay Ho district, Hanoi in the last six months of 2018.
The price of DCS is negligible with just 600 VND (3 US cents) per share but its liquidity is relatively good with hundreds of thousands of shares exchanged per session.
Trading of Song Da Investment and Construction JSC (SDD) will also be terminated for the same reason. In 2018, the company earned total revenue of 48.6 billion VND, up 25.6 percent on-year, but its losses doubled from 2017 to 11.2 billion VND.
This is also the third year SDD has reported losses with cumulative value of 19.4 billion VND.
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), Da Lat Real Estate JSC (DLR) and CMISTONE Vietnam JSC (CMI).
Vinaconex 39 reported a 51 billion VND loss in 2018, lifting its accumulated losses to 251 billion VND 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 Hoa Binh Minerals JSC (KHB), Sai Son 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.