HCMC – The Hanoi Stock Exchange (HNX) warned on March 04 that Louis Land JSC, whose BII shares are traded on the northern bourse, may be forced to delist more than 57.6 BII shares.
The warning comes after the firm received a disclaimer of opinion from an auditing firm.
According to Decree 15/2020 guiding the execution of the Securities Law, a public company will face delisting in case its total losses exceed its chartered capital or the firm receives a disclaimer of opinion from an auditing firm.
The Hanoi exchange has told Louis Land to write to the bourse explaining the issue within five days.
The auditing firm issued a disclaimer of opinion on the company’s 2022 financial statements due to insufficient information about the company’s receivables, payables, and short-term liabilities and a lack of relevant evidence.
Louis Land’s 2022 net loss surged to VND108 billion from VND66 billion after the audit.
The company’s accumulated losses as of late 2022 amounted to VND99 billion, short-term liabilities exceeded total asset value by VND25 billion, at VND436.5 billion, and overdue payables totaled VND148 billion.
That, coupled with the constant turnover of senior management and the absence of a feasible business plan to revive the company’s operations, forced the auditor to voice doubt about the company’s ability to continue as a going concern.
BII closed the trading session today, April 6, at the lower limit, or a drop of 9.09% from the session earlier, at VND2,000 and reported a matching volume of nearly 4.7 million shares.
Regarding stock news today, the VN-Index of the Hochiminh Stock Exchange slid 9.95 points, or 0.92%, at 1,070.91 points, with 194 winners and 209 losers.
The Hanoi exchange saw nearly one billion shares valued at around VND15.8 trillion changing hands, up 23% in both volume and value from the previous session. Over 43.4 million shares were traded in block deals, contributing VND953.6 billion to the overall value.
Bluechip NVL took the lead by liquidity today with over 47.1 million shares transacted, followed by VND and SHB with 35.8 million and 34.1 million shares.
With 81 stocks rising and 71 others dipping, the HNX-Index lost 1.15 points, or 0.54% against yesterday’s session, at 211.43 points, ending its five-session winning streak.
The northern bourse reported a matching volume of 149.1 million shares valued at around VND2.1 trillion.