Two stocks face delisting threat after three-year loss streak
Two stocks face delisting threat after three-year loss streak
The two companies are SMC Trading Investment and Đông Triều Viglacera.
Workers operating an assembly at an SMC Trading Investment plant. — Photo smc.vn |
Two companies, SMC Trading Investment and Đông Triều Viglacera, are at risk of being delisted from the Vietnamese stock market due to three consecutive years of financial losses, according to announcements from two main stock exchanges.
The Hồ Chí Minh Stock Exchange (HoSE) has flagged SMC for potential delisting under Decision No. 155/QĐ-SGDHCM issued on April 3, 2024, as the company's consolidated financial statements for the past two years (2022 and 2023) showed negative profits.
On January 24, HoSE announced the reception and market disclosure of the company's separate and consolidated financial statements for the fourth quarter of 2024. These reports revealed after-tax profits of negative VNĐ223.82 billion (US$8.8 million in the red) and consolidated profits of negative VNĐ286.71 billion for the year 2024.
HoSE cautioned that SMC shares might face mandatory delisting if the company's 2024 audited financial report indicates operational losses.
Similarly, the Hà Nội Stock Exchange (HNX) has issued a warning regarding the shares of Đông Triều Viglacera.
The company faces potential delisting due to losses reported over three consecutive years (2022, 2023 and 2024). The northern bourse has asked the company to provide a written response within a five-day working period from the date of the notice.
According to the audited financial statements for 2024, Đông Triều Viglacera incurred losses of nearly VNĐ37 billion, following losses of approximately VNĐ8 billion and VNĐ44 billion in 2022 and 2023, respectively.
The audit report also highlighted financial concerns, indicating that as of December 31, 2024, the company's short-term liabilities exceeded its short-term assets by VNĐ53.41 billion.
The accumulated losses by the end of 2024 reached VNĐ87.63 billion, equivalent to 87.63 per cent of the owner's equity.
The auditors emphasised significant uncertainties that raise doubts about the company's ability to continue operations and highlighted that the 2024 financial statements were prepared under the assumption of continuous operation.
