Shares of Gelex Group (GEX) saw a sudden reversal on September 14. After initially trading above its reference price, the stock quickly dropped to its floor price of 22,300 dong by the end of the session. This sharp decline positioned GEX among the top 10 stocks negatively impacting the VN-Index, while also driving its liquidity to 556 billion dong, the highest level in three weeks.
Two related stocks, GEL of Gelex Infrastructure Joint Stock Company and GEE of GEE Power Joint Stock Company, also faced selling pressure, each losing 7% of their value compared to the reference price.
The sell-off was triggered by news that the Police Investigation Agency of the Ministry of Public Security had initiated criminal proceedings against Dang Phan Tuong. This action is part of an ongoing investigation into a criminal case at National Power Transmission Corporation (EVNNPT) and PC1 Group. Mr. Tuong previously served for many years as Chairman of the Board of Members for EVNNPT and is currently a Board member of GEE Power Joint Stock Company.
Later that day, Gelex Group issued an extraordinary information disclosure. The company clarified that the incident involving Mr. Tuong occurred prior to his involvement with the Gelex ecosystem. Gelex Group affirmed that the business operations and all commitments and obligations to banks, customers, partners, and other stakeholders of both the parent company and its member units remain unaffected and continue as normal.
Established in 1990, Gelex Group's core business is electrical equipment. Over the years, the company has diversified into energy, clean water, construction materials, real estate, and industrial park sectors. Nguyen Van Tuan currently serves as Chairman of the Board of Directors and holds over 309 million shares, representing 23.63% of the company's capital.
In the first half of the year, Gelex reported consolidated net revenue exceeding 25,200 billion dong and an after-tax profit of over 1,930 billion dong. By the end of June, the company's total assets had surged to nearly 86,000 billion dong compared to the beginning of the year.
The criminal case at EVNNPT has led to the prosecution of leaders from several power companies, including PC1, TV1, TV2, and TV3, on various charges.
According to investigators, the 500kV Circuit 3 power line project, with EVNNPT as the investor, had multiple violations during its implementation. Both EVNNPT and its contractors were found to have committed irregularities in establishing and approving cost estimates, preparing tender documents, organizing bids, and conducting acceptance and settlement processes. Contractors also violated regulations while executing various project items.
Phuong Dong
