With business losses, shares of PetroVietnam Construction JSC have fallen to penny stocks and been delisted from the Hà Nội Stock Exchange. — Photo courtesy of the firm
HÀ NỘI — After being de-listed on the Hà Nội Stock Exchange (HNX), shares of PetroVietnam Construction JSC (PVX) will be traded on the unlisted public company market from June 16.
According to HNX, the shares were delisted from June 9 as auditors declined to comment on the company's consolidated financial statement and separate financial statement for 2019.
Under Decree No. 58/ 2012/ ND - CP on Securities Laws, if auditors refuse to conduct an audit of, or disagree with or refuse to provide an opinion on the most recent financial statements of a listed institution, the shares of the firm will be delisted. As a result, all 400 million shares of the firm are no longer allowed to list on HNX.
Instead, the exchange said the firm’s shares will be registered to trade on the Unlisted Public Company Market (UPCoM).
The reference prices in the first trading day on UpCoM will be VNĐ1,000 each share, the figure it closed at after the last trading session on HNX on June 8.
The realty and construction firm has suffered losses for three consecutive years.
As of the end of 2019, the firm recorded losses of VNĐ416 billion, VNĐ414 billion and VNĐ392 billion in the last three years. Accumulated losses by end of last year reached nearly VNĐ3.9 trillion, closed to its equity capital of VNĐ4 trillion.
General director of PVC Lương Đình Thành told local media: “Most of PVC's subsidiaries, affiliates and other long-term investments suffer from unprofitable business results due to the difficult real estate market and many stopped and delayed projects.”
“Because those companies could not cover expenses such as management costs, interest expenses, bad debts, as the parent company, the firm must set up provisions according to regulations," he added.
Thanh said the prolonged losses and financial difficulties led to the auditors refusing to give an audit opinion on PVC's 2019 financial statements.
With a history of 30 years, the firm has been the major construction corporation of the petroleum industry.
According to data recorded since 2009 when the firm started listing, the shares used to close at more than VNĐ30,000 each in 2010.— VNS