Apec Securities (APS) lost up to 449 billion VND in 2022

Asia Pacific Securities - Apec (APS) issues 8.3 million dividend shares, offers 50 million more shares to professional investors

According to the presentation of the upcoming General Meeting of Shareholders, Asia Pacific Securities Corporation - Apec (APS) plans to announce its 2022 business results along with its operating direction and goals for 2023.

Accordingly, in 2023, the company plans to set a revenue target of VND 860 billion, nearly double that of 2022. The planned profit after tax is VND 230 billion. This target seems relatively ambitious when the company is recording a loss of up to VND 449 billion in 2022.

APEC stock market losses up to 449 billion dong in 2022, picture 1 — Once calling on shareholders to "bear profits", in 2022 Apec Securities (APS) suffered a loss of up to 449 billion VND, with its stock price plummeting, losing 77% of its value. (Photo TL)

Regarding the dividend payment plan, the company plans to submit to shareholders a plan to issue 8.3 million shares to pay dividends in 2022, corresponding to a rate of 10%.

In addition, APS Securities will also submit to shareholders for approval a plan to issue 50 million shares privately to professional securities investors. The expected offering price will not be lower than VND10,000/share. The minimum amount of VND500 billion collected from this offering will be used to invest in proprietary trading activities, financial - securities services, and provide capital for margin activities. The expected issuance time will be in 2023 and 2024.

Business in 2022 lost hundreds of billions of dong, fined hundreds of millions due to violations in securities transactions

2022 can be said to be an extremely bad business year for Apec Securities when the company recorded losses of hundreds of billions of dong.

Specifically, in 2022, Asia Pacific Securities' revenue reached VND421 billion, down about 43.6% compared to 2021. However, the company's after-tax profit for the year was negative VND449 billion, a record high loss since 2007.

This loss was immediately reflected in the company's total assets and equity. In just one year, equity was blown away by hundreds of billions of VND, decreasing from 1,410 billion VND to only 961 billion VND, equivalent to a decrease of about 31.8% in just one year.

At the beginning of the year, APS Securities was also fined a total of VND415 million by the State Securities Commission for violations in the securities sector.

This includes a fine of VND 125 million for violating regulations on margin trading restrictions. Specifically, on some trading days in 2021, Apec Securities disbursed loans for shares issued by the Company itself. In 2020, the Company allowed customers to conduct margin trading for securities codes that were not on the list of securities permitted for margin trading (IDJ).

Fine of 40 million VND for not ensuring that employees working in the professional department have sufficient securities practice certificates appropriate to the professional activities performed.

Fined 250 million VND for providing securities services but not reporting to the State Securities Commission.

Stocks that once made investors "dizzy" with unusual increases and decreases

When mentioning APS and related stocks such as API and IDJ, investors cannot help but remember the shocking, erratic increases and decreases.

In mid-November, these three stocks hit the ceiling price consecutively, with their stock prices being pushed up several times in less than 3 months. Even at the 2021 General Meeting of Shareholders, the company's leadership was famous for calling on shareholders to "hold on to profits" right when the stock price peaked.

APEC stock market losses up to 449 billion dong in 2022, picture 2 — APS Securities "draws a pine tree" during its shock ceiling increase and decrease sessions.

There was a time when APS stock price reached 57,500 VND/share. However, immediately after that, the stock price continuously fell, forming a "Christmas tree" shape. In the trading session on April 26, 2023, APS code is currently trading at only 12,800 VND/share, losing 77.7% of its value compared to the historical peak it had reached.

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