Hoa Binh Construction shares were not traded in the morning session.

The Ho Chi Minh City Stock Exchange (HoSE) has just announced that shares of Hoa Binh Construction Group will be transferred from controlled to restricted trading from May 23.

HBC is not allowed to match orders or negotiate in the morning session but only trades in the afternoon session from next Tuesday (May 23). This penalty was imposed because Hoa Binh Construction Group was 45 days late in submitting its audited financial report compared to the prescribed deadline.

Previously, HoSE put HBC under warning and control for similar reasons, but the company has not yet resolved the issue to be "cleared". According to securities trading regulations, trading restriction is the third most severe penalty for a listed stock. The two higher penalties are temporary trading suspension and trading suspension.

In a document sent to HoSE a week ago, Mr. Le Viet Hai - Chairman of the Board of Directors of Hoa Binh Construction Group - said there were two reasons why the company had not completed its financial report on time.

Firstly, internal management has some problems. Specifically, at the end of last year, Mr. Hai submitted his resignation as chairman to ensure the legality of his son holding the position of general director and let another member of the Board of Directors, Mr. Nguyen Cong Phu, replace him. However, before the effective date of this decision, Mr. Hai changed his mind, leading to internal disagreements that lasted for many months. Three months ago, the Ho Chi Minh City Civil Judgment Enforcement Department issued a decision recognizing Mr. Hai as still chairman, while Mr. Phu withdrew from the Board of Directors.

The second reason is the fluctuating real estate and financial market situation, a series of projects have stopped construction, leading to difficulties in confirming the volume and value of completion from the investor, thereby affecting payment and settlement issues.

Mr. Hai said the company plans to announce its 2022 financial report no later than May 30.

HBC closed this morning at VND9,070, down 1.4% from the reference price and matched more than 3 million shares. This is the third consecutive decline after a nearly 20% increase in half a month, to VND9,500, the highest price in the past three months.

Orient

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