APG Securities managed to sell AGM shares before trading was suspended.

Angimex (AGM) shares rose in price despite continued losses.

An Giang Import-Export Joint Stock Company - Angimex (AGM) is facing significant business difficulties due to its connection with Mr. Do Thanh Nhan, who was arrested in April 2022 on charges of stock manipulation.

For a long time, AGM shares experienced a sharp decline, remaining around 5,500 VND per share. However, since the beginning of August, when the rice market showed positive developments and rice prices rose, AGM shares rebounded. At one point, AGM reached a price of 13,500 VND per share on August 8, 2023.

APG stockbroker managed to sell 15 million AGM shares before trading was suspended (Figure 1). — AGM shares were suspended from trading, but APG Securities still managed to sell off all 1.5 million shares (Photo: TL)

The AGM's price increase, driven by investor expectations, completely contradicts the company's actual business performance.

In the first two quarters of 2023, AGM's revenue continued to decline, accompanied by after-tax losses that further eroded its equity.

According to the 2023 semi-annual financial statements, AGM's net revenue for the first six months reached VND 321.6 billion, while the cost of goods sold amounted to VND 310.3 billion. Interest expenses nearly doubled to VND 56 billion during the period. Meanwhile, the company also incurred a loss of nearly VND 2 billion from investments in associated companies.

AGM reported a net loss from business operations of VND 57.4 billion, and a net loss after tax of VND 57.7 billion in the first six months of the year. Including Q2/2023, AGM has suffered losses for five consecutive quarters.

APG Securities managed to divest all its holdings just before Angimex's trading was suspended.

On September 13, 2023, APG Securities Joint Stock Company, a major shareholder of Angimex holding 1.5 million shares, equivalent to 8.17% of the charter capital, sold all of its shares. Following this transaction, APG Securities is no longer a shareholder of Angimex.

It is noteworthy that APG coincidentally divested completely from Angimex just a few days before the latter's trading was suspended.

On September 18, 2023, just under 5 days after APG divested its stake in Angimex, the Ho Chi Minh City Stock Exchange (HoSE) decided to suspend trading of AGM shares effective from September 18, 2023.

The reason is that AGM has continued to violate information disclosure regulations by failing to publish its 2023 semi-annual financial statements. In addition, Angimex is also under warning due to recording accumulated losses of VND 71 billion in its 2022 financial statements.

This accumulated loss situation did not improve at all in the first two quarters of 2023 because Angimex continued to incur further losses of tens of billions of VND, causing the accumulated loss to increase to 125.4 billion VND.

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