The Hochiminh Stock Exchange (HOSE) has written to Vietnam Airlines JSC warning that the carrier’s HVN shares could be delisted from HOSE as the firm has made losses for three years in a row.
According to local media, HOSE said that on June 1, 2022, it had upheld its decision to put HVN shares under watch as the airline’s equity was minus VND2.16 trillion, based on Vietnam Airlines’s Q1/2022 consolidated financial report and its negative after-tax profit shown in the 2021 and 2022 audited financial statements.
According to the national flag carrier’s Q4/2022 consolidated financial report, Vietnam Airlines14 reported after-tax losses of VND2.585 trillion in the final quarter last year, up 2.3-fold against the same quarter in 2021.
In 2022, its after-tax profit was minus VND10.4 trillion; its undistributed after-tax profit as of December 31 last year was minus VND34 trillion, while its equity was minus VND10.1 trillion at that time. Up to now, Vietnam Airlines has reported financial losses for 12 consecutive quarters.
According to the prevailing regulations, the stock of a public company is delisted if it has incurred losses in business operations for three consecutive years, or its total accumulated losses exceed its charter capital, or its equity is negative as shown in its most recent audited financial report.
Closing the trading session today, February 2, HVN dipped 2.6% to VND13,100.
The benchmark VN-Index on HOSE bounced back slightly, adding 1.62 points, or 0.15% over the session earlier at 1,077.59, with 111 winners and 308 losers.
Trade on the southern bourse contracted nearly 40% in volume and 37% in value against the previous session, at over 634 million shares and around VND11 trillion, including more than VND1.1 trillion worth of shares traded in block deals.
Meanwhile, the HNX-Index of the Hanoi Stock Exchange shed 0.7 points, or 0.32% day-on-day at 215.31, with 59 stocks rising and 104 others falling, the Saigon Times reported.
@ News Network
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Source: Vietnam Insider