Late last week, PC1 Group announced that Chairman of the Board of Directors Trinh Van Tuan and 6 other management personnel were indicted on charges of property embezzlement and accounting regulation violations. Currently, the company's Board of Directors has only one member, as 4 individuals have been temporarily detained.

PC1 Chairman Trinh Van Tuan. Photo: PC1

In a press release issued this morning, PC1 Group stated it would cooperate with authorities during the investigation. The company also assured that its governance, operations, and business production will continue stably, continuously, and in compliance with regulations.

PC1 affirmed that the indictment of some leaders would not affect the group. Business production activities are still proceeding normally, and obligations to customers, partners, banks, investors, and employees are being fulfilled as committed.

A company representative stated that the group had previously established a professional and independent system for managing and operating its business segments. Additionally, legal authorities have allowed the indicted individuals to fully delegate management and operational responsibilities to key group personnel.

"The board of directors and management team are actively implementing solutions to ensure operational continuity, risk management, and employee morale stability," the statement clarified.

PC1's Supervisory Board has decided to convene an extraordinary meeting to elect additional board members and address matters within shareholder authority. The registration deadline to attend the general meeting is 5/6, with the event expected to take place in july at the company's headquarters in Hanoi.

PC1 originated as a state-owned enterprise, specializing in the construction of national power transmission projects. It completed tens of thousands of kilometers of 110 kV, 220 kV, and 500 kV power lines. The company was equitized in 2005 and listed its shares on Ho Chi Minh City Stock Exchange (HoSE) in late 2016. Subsequently, PC1 expanded into industrial manufacturing, energy investment, and real estate.

Since mid-april, PC1's stock has experienced volatility. From a price of over 27,000 dong per share, the ticker fell by about 34% to 17,850 dong late last week. Consequently, billions of dong in market capitalization were wiped out.

Today, the stock opened at its floor price of 16,650 dong. However, its market price slightly improved to 16,800 dong by 10 a.m.

Recently, HoSE reminded PC1 about its delay in publishing the Q1 financial report. Previously, in late april, the company had also been reminded for delaying the disclosure of resolutions and minutes from its general shareholder meeting.

PC1 stated it could not publish the Q1 financial report on time because personnel involved in approving the report are cooperating with investigative authorities and have been indicted and temporarily detained. The company committed to releasing the information immediately after completing the financial report.

Tat Dat