Fined for illegally occupying 90,000 square meters of land, General Corporation 36 (G36) has just had to mortgage the chairman's shares.

General Corporation 36 (G36) had to mortgage the Chairman's shares to the bank again.

Corporation 36 (UPCoM code: G36) is a unit operating in the field of construction and installation, investment in real estate project development, and BOT projects. Recently, this unit has announced its approval to use 5 million shares of Chairman of the Board of Directors Nguyen Dang Giap as collateral for the bank.

Previously, in August 2022, Corporation 36 also used 12.54 million G36 shares of Chairman Nguyen Dang Giap as collateral for a loan at a commercial bank. The loan term is 2 years.

The 36G36 Corporation was fined for illegally occupying 90,000 square meters of land. The company still has to hold the chairman's shares. Image 1 — Corporation 36 (Code G36) once again had to mortgage 5 million shares of Chairman of the Board of Directors Nguyen Dang Giap (Photo TL)

As of August 22, 2022, G36 shares are priced at VND 10,200/share. 12.54 million G36 shares are worth about VND 127.9 billion at the time of mortgage.

Currently, G36 continues to mortgage 5 million more shares of Chairman Giap for the upcoming loan at the Bank. In the trading session on October 2, 2023, G36 shares are priced at VND 8,000/share. Thus, these 5 million shares are currently worth about VND 40 billion.

Symbolic profit on revenue of hundreds of billions of dong

Regarding business activities, in the second quarter of 2023, G36 achieved revenue of VND 403.2 billion, an increase of about 63.7% over the same period. Profit after tax was VND 6.8 billion, an increase of 86.6% over the same period last year.

Although business results recorded strong growth, G36's actual profit was relatively meager compared to its revenue of VND403.2 billion.

In addition, G36's debt situation is really worrying investors. Specifically, at the end of the second quarter of 2023, G36's total assets reached VND 4,524.4 billion, a slight decrease compared to the beginning of the year. Of which, liabilities accounted for 75.8% of total assets.

In addition to other payable obligations, G36's total debt is VND 1,113.7 billion, higher than its equity. Of which, short-term debt accounts for VND 436.6 billion and long-term debt accounts for VND 677.1 billion. The amount of cash held by the company at the end of the second quarter was only recorded at VND 146.3 billion, down nearly half compared to the beginning of the year.

Occupying nearly 90,000 m2 of land in Hoa Binh, Corporation 36 was fined 1.3 billion VND

On September 18, 2023, the People's Committee of Hoa Binh province issued a decision on administrative sanctions in the field of land against Corporation 36.

Corporation 36 committed two violations including: Occupying unused land in rural areas with an area of 64,397.6 m2; occupying agricultural land that is not rice land, special-use forest land, protective forest land, production forest land in rural areas with an area of 25,748 m2 in Song hamlet, Lien Son commune, Luong Son district, Hoa Binh province.

The above two acts of Corporation 36 violated Point d, Clause 1 and Clause 2, Article 14 of Decree No. 91/2019 of the Government regulating administrative sanctions in the field of land. For these two acts, Corporation 36 was fined 270 million VND.

In addition, G36 was also required to return the illegal profits gained from violating the above regulations. The amount to be returned is nearly 1.1 billion VND. Thus, the total amount of fines that G36 must pay is more than 1.3 billion VND.

Source