VKC Holdings Chairman becomes major shareholder after collecting nearly 1 million shares

VKC Holdings' chairman becomes a major shareholder after acquiring nearly 1 million shares.

Mr. Than Xuan Nghia, Chairman of the Board of Directors of VKC Holdings, recently spent approximately 1 billion VND to purchase 961,200 VKC shares for investment purposes.

Mr. Than Xuan Nghia, Chairman of the Board of Directors of VKC Holdings Joint Stock Company (stock code: VKC), has announced the successful purchase of 961,200 shares through negotiated and matched order transactions. The transaction took place in June. Based on the current market price of VKC, the volume of shares Mr. Nghia just purchased is worth only about 1 billion VND.

In the previously published transaction registration notice, Mr. Nghia stated that the purpose of this transaction was investment. Following the transaction, the head of VKC Holdings increased his personal ownership stake in the company from 0.2% (38,800 shares) to 5.19% (1 million shares), thus joining the list of major shareholders.

VKC, formerly Vinh Khanh Plastic Cable Joint Stock Company, was once listed on the Hanoi Stock Exchange, but on April 25, 2023, it was compulsorily delisted by the Hanoi Stock Exchange due to accumulated losses exceeding its contributed charter capital and the auditor's refusal to give an opinion on the 2022 financial statements. The stock subsequently registered for trading on the UPCoM market and is only traded on Fridays. The current share price is only 1,000 VND per share, resulting in a market capitalization of less than 20 billion VND.

In the documents from the first unsuccessful General Shareholders' Meeting, the company set a target of 20 billion VND in total revenue this year, a decrease of 37% (equivalent to 10 billion VND) compared to the same period last year. The plan projected a pre-tax loss of 60 billion VND, an expected improvement of 32% compared to the 88 billion VND loss last year.

According to the company's management, VKC is currently facing a shortage of operating capital and an inability to raise new funds. The outdated production machinery and equipment lead to high material consumption and a large workforce, making it difficult to compete on price with competitors.

"The primary goal is to address outstanding issues, try to resume production and business operations, and reduce debt. Therefore, it is not yet possible to develop a specific development plan, and we are only trying to maintain production and business operations with the remaining limited capital in a spirit of economy and efficiency," the report presented to the General Meeting of Shareholders of VCK stated.

In the first quarter, the company recorded revenue of VND 5.4 billion, a decrease of 28% compared to the same period last year. Net profit after tax was a loss of VND 15.7 billion, an 8% improvement compared to the loss of VND 17.1 billion in the same period last year. The company currently has negative equity of over VND 100 billion. Total assets at the end of the first quarter reached VND 354 billion, a slight decrease from nearly VND 359 billion at the beginning of the year. Liabilities exceeded assets, reaching VND 454 billion. All of this debt is short-term debt.

Source: https://baodautu.vn/chu-tich-vkc-holdings-thanh-co-dong-lon-sau-khi-gom-gan-1-trieu-co-phieu-d220068.html