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Monday, June 17, 2024

MIM faces delisting

The Saigon Times

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HCMC – The Hanoi Stock Exchange (HNX) has warned that Mineral & Mechanical JSC, whose MIM shares are traded on the northern bourse, may be forced to delist more than 3.4 million shares.

The warning comes after the firm received a disclaimer of opinion from an auditing firm.

According to Government Decree 15/2020 guiding the execution of the Securities Law, a public company will be delisted when its accumulated losses exceed its chartered capital or when the firm gets a disclaimer of opinion from an auditing firm.

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 lack of relevant evidence.

Mineral & Mechanical JSC’s net loss in fiscal 2022 amounted to VND14 billion compared to profit of VND6.9 billion in the same period in the previous year.

The company had posted VND19.6 billion in accumulated losses as of late FY2022, with its short-term liabilities exceeding total short-term assets.

That, coupled with the firm’s recent transfer of exploration rights for Lang Bai-Tuyen Quang mines and the absence of a feasible business plan, forced the auditor to express doubt about the company’s ability to continue as a going concern.

Closing the trading session today, January 9, MIM stayed at its reference price of VND4,200.

On the Hochiminh Stock Exchange, winners outnumbered losers by 340 to 157. Still, the VN-Index lost a marginal 0.14%, or 1.6 points, to end at 1,158.59 points.

Trade volume inched down by 4% day-on-day to 870.5 million shares, but value rose 13% to VND18.4 trillion. Block deals contributed nearly VND1.57 trillion to the overall value, with 71 million shares changing hands.

Lender SHB continued to be the most actively traded stock on the market, with a matching volume of 29.8 million shares.

On the Hanoi bourse, the HNX-Index edged down by 0.83 points, or 0.35%, over the previous session, to 232.5 points.

The northern market saw 70 gainers and 87 decliners, with a total volume of over 78.3 million shares valued at VND1.66 trillion.

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