With shares below 2,000 VND, the "mountain town" giant Duc Long Gia Lai is at risk of being delisted.

Duc Long Gia Lai Group Joint Stock Company was once entangled in a debt scandal with its partner Lilama 45.3 - Photo: TAN LUC

In the latest notice sent to Duc Long Gia Lai, HoSE has warned the company about the possibility of compulsory delisting of DLG shares, if the 2024 audited financial report continues to have an exceptional audit opinion.

Previously, HoSE received Duc Long Gia Lai's separate and consolidated semi-annual financial statements for 2024. The report showed that there was still an unqualified audit opinion.

According to Decree 155, public company shares will be delisted when the auditing organization refuses to conduct the audit, or has an exception opinion on the annual financial statements in the last 3 years...

In Duc Long Gia Lai's financial report, the independent auditor excluded the content surrounding the short-term/long-term loan receivables of nearly VND 167 billion and other short-term receivables of more than VND 28.4 billion. The Group has not yet assessed the actual recovery ability of short-term loans and other short-term receivables.

"With the current documents at the group, we also cannot collect sufficient appropriate audit evidence to set up provisions for doubtful debts in accordance with reality," the auditor emphasized.

Notably, in the middle of this year, Duc Long Gia Lai had a net loss of more than 2,600 billion VND for the group and a loss of nearly 2,800 billion VND at the parent company.

At the same time, short-term debts exceeded short-term assets by nearly VND830 billion (for the group) and more than VND770 billion (for the parent company).

Not only in the 2024 semi-annual report, the financial reports for the two consecutive years of 2022 and 2023 of Duc Long Gia Lai also recorded exception opinions.

Explaining the audit issues, Duc Long Gia Lai said it would assess the actual debt repayment capacity of short-term/long-term loans (nearly 170 billion VND) and other short-term receivables (more than 28 billion VND).

At the same time, the company also said it is working with customer partners to add collateral and increase the collection of the above debts this year to provide documents to the auditor, in order to remove the exception opinion in the 2024 semi-annual audited financial report as soon as possible.

Duc Long Gia Lai affirms to restructure the financial situation to minimize interest expenses, increase debt collection, and cut costs to reduce debt to banks and organizations.

The company also said that its production and business situation is still stable, overcoming immediate difficulties and successfully achieving its revenue and profit targets and plans.

Duc Long Gia Lai shares are below 2,000 VND

Currently, Duc Long Gia Lai's DLG shares are still under control, due to accumulated losses as of June 30, 2024.

At the end of the session on October 3, DLG's market price continued to decrease by more than 4.6%, down to 1,850 VND per share. In the past year, Duc Long Gia Lai's shares have "evaporated" nearly 27%. At the current price, each share of the former "mountain town tycoon" cannot buy a cup of iced tea.

Source: https://tuoitre.vn/co-phieu-con-duoi-2-000-dong-dai-gia-pho-nui-duc-long-gia-lai-nguy-co-bi-huy-niem-yet-20241003171121313.htm