Looking back at FY 2018, there were businesses enjoying high profits or not meeting their expectations and even those trying not to make losses to continue being listed on the stock exchange in 2019.
Ineffective business operations, being declined to draw conclusions for financial statements by audits, charter capital lower than the prescribed level are the main reasons for the 5 following companies facing the risk of being delisted in 2019
1. Cmistone Viet Nam Joint Stock Company (HNX: CMI)
- Reason: Suffering loss for 3 consecutive years
- Market Price: VND1,000 / share
After 8 years of listing on Hanoi Stock Exchange (HNX), in the 2018’s annual shareholder meeting in October, CMISTONE’s Board of Directors agreed to cancel listing their stocks on HNX and consider listing them on UPCoM.
This decision was made after two consecutive years (2016-2017) of CMI being in deep losses and additional loss of VND118 billion in the first 9 months of 2018. Accordingly, the accumulated loss of the company exceeded its charter capital and equity was negative to VND80 billion. Therefore, the company's shares will also be forced to be delisted if there is no improvement in financial situation.
2. POST AND TELECOMMUNICATIONS INVESTMENT AND CONSTRUCTION JOINT STOCK COMPANY (HoSE: PTC)
- Reason: Audit declined to conclude in audited separate financial statements in 2018
- Market price: VND6,180 / share
In September 2018, PTC received a notice from Ho Chi Minh City Stock Exchange (HoSE) informing the risk of delisting if no conclusions of audit in PTC’s audited separate financial statements in 2018 was submitted.
At separate interim financial statements for the six-month period ended on 30 Jun 2018, PTC has a net profit after tax being negative at VND7.3 billion and retained earnings being negative at VND21.2 billion, the audit refused to make a conclusion.
According to KPF VIETNAM COMPANY LIMITED – an audit company of PTC, in spite of the fact that it is impossible to verify the correctness of the beginning balances, it is not possible to give an opinion on the balance as of January 1, 2018 as well as influence of them to other indicators presented on separate interim financial statements for the six-month period ended 30 Jun 2018.
To protect investors, HoSE has transferred PTC shares type from being warned to being controlled since October 5. PTC shares are only traded in the afternoon of the trading day by matching and negotiation.
3. MEKONG FISHERIES JOINT STOCK COMPANY(HoSE: AAM)
- Reason: Charter capital decreased to below VND120 billion
- Market price: VND 13,300 / share
On August 24, HoSE decided to put AAM shares of MEKONG FISHERIES JOINT STOCK COMPANY on warning type from August 31 because its chartered capital reduced to below VND120 billion on the separate interim financial statements for the six-month period of 2018.
At the same time, HoSE also noted that AAM shares may be delisted in the case of not overcoming the problem of charter capital within a year.
In terms of business performance, in recent years, the company has always made profit but only a few billion dong. However, the first 9 months of 2009 saw a remarkable profit of VND9 billion, much higher than the loss of VND2.8 billion of the same period last year because of the improvement in gross profit margin from 6.6% to 12.5%.
4. INFORMATION AND NETWORKING TECHNOLOGY JOINT STOCK COMPANY (HoSE: CMT)
- Reason: Delisting to restructure
- Market Price:
CMT shares were approved by shareholders to delist on HoSE and transfer to UPCoM in September. The reason for this decision is to focus on restructuring enterprises and improving business efficiency.
Regarding to business activities, in the 2014-2017 period, CMT maintained a revenue of about VND400 billion and a profit of around VND7 billion. In the first 9 months of 2018, CMT’s revenue was VND232.5 billion, up by 27%; net profit of VND12 billion, 2.6 times higher than the same period last year.
5. AN GIANG FISHERIES IMPORT & EXPORT JOINT STOCK COMPANY (HoSE: AGF)
- Reason: Suffering losses due to scarcity of raw materials
- Market price: VND4,870/share
In the period of 2017-2018, AGF recorded a large loss of VND190 billion due to the fact that they had to operate with high interest expense.
The company said that in the scarcity period of Pangasius, high purchasing prices had negative impact on revenue. Moreover, outsourcing partners also did not achieve the required output for company.
With this result, this year is the second year that the company has suffered losses. Accumulated losses as of September 30 is up to VND282 billion, exceeding the equity of 281 billion dong. Therefore, HoSE warned that AGF shares is at risk of being delisted in 2019.