The Chairman of Song Hong, a corporation with 9 years of continuous losses, has just submitted his resignation.

Song Hong Corporation used to be a large construction enterprise in the market - Photo: SHG Website

Song Hong Joint Stock Corporation (SHG) has just announced that it has received the resignation letter from Mr. Tran Huyen Linh as Chairman of the Board of Directors.

Mr. Tran Huyen Linh (born in 1976) has been the chairman of the SHG board of directors since mid-2016. In his resignation letter, Mr. Linh said he "worked his best with the desire to build a stable and developing corporation".

However, for personal reasons, Mr. Linh said he could not continue to hold the position of chairman of the company's board of directors after 8 years of association.

Recently, this company has recorded changes in its leadership. In early August, the SHG board of directors also dismissed Mr. Nguyen Duc Toan from his position as deputy general director.

Earlier this year, Mr. La Tuan Hung - member of the board of directors, former general director of SHG - was also arrested for violating bidding regulations causing serious consequences.

Up to now, SHG has not yet announced its financial reports for the first and second quarters of this year. According to the consolidated financial report for 2023, the company suffered a loss after tax of more than VND70 billion, down from a loss of nearly VND178 billion in 2022.

Looking back at the data, since 2014, SHG has had 9 years of continuous losses. Because of that, by the end of 2023, the corporation had accumulated losses of up to 1,336 billion VND. The equity was negative more than 1,000 billion VND.

	Net profit
2015	-85
2016	-187
2017	-55
2018	-387
2019	-72
2020	-56
2021	-57
2022	-178
2023	-70

In the 2023 mid-year consolidated balance sheet, the enterprise recorded liabilities of VND 2,143 billion, exceeding total assets (VND 1,113 billion).

In the audited financial statements for 2023, the auditor also expressed an exception opinion on some of the corporation's payable and receivable debts.

"The continued operation of the corporation depends on the recovery of debts and improvement of the efficiency of the premises rental business, and capital support from shareholders.

The above conditions indicate the existence of a material uncertainty that may cast significant doubt on the ability to continue as a going concern," the auditor emphasized.

Also related to SHG, the Ministry of Construction auctioned off all 49.04% of its capital holding, Song Hong Real Estate Investment Joint Stock Company (Song Hong Land) became the new shareholder.

Source: https://tuoitre.vn/chu-tich-song-hong-tong-cong-ty-co-9-nam-thua-lo-keo-dai-vua-nop-don-xin-nghi-20240828151017459.htm