The Hanoi Stock Exchange (HNX) announced the suspension of Loc Troi Group shares from trading starting 26/6. The exchange also requested the company provide a remedy plan.
This decision follows LTG's placement under restricted trading since 10/2024, allowing transactions only on Fridays. The stock has traded below its par value for over one and a half years, currently priced at 5,300 dong. The core issue remains the delayed submission of its audited financial statements, a concern frequently raised by shareholders.
At an extraordinary shareholder meeting mid-last month, Loc Troi's leadership faced repeated questions regarding the delays. According to Tran Khanh Du, the company's General Director, Loc Troi encountered significant debt and payment default issues with banks in 2024. This led to a complex restructuring plan, which involved numerous financial matters requiring careful review by auditors, thus delaying the preparation and release of reports.
Du stated that the delay was a joint effort between Loc Troi and the auditing unit to ensure full compliance with audit regulations and procedures. He confirmed that management is actively collaborating with the auditors and anticipates the report's release in Q3 this year.
Mid-this month, Loc Troi terminated its audit contract with EY Vietnam due to a lack of consensus on the report's release timeline. The company subsequently signed a contract with UHY to review both its semi-annual and full-year 2024 financial statements.
Huynh Van Thon, Chairman of Loc Troi's Board of Directors, acknowledged the severe impact of these delays. He noted that the late submission of financial reports damages the company's reputation and image, leading to violations of information disclosure obligations to shareholders and state agencies, as well as breaches of commitments to partners and financing banks.
Established in 1993, Loc Troi began as a pesticide supply company in An Giang. It later diversified into seeds and food, eventually becoming a leading enterprise in rice production. The latest audited financial data from 2023 shows the company achieved revenue exceeding 16,500 billion dong and a pre-tax profit of nearly 150 billion dong.
Phuong Dong
