Hyundai Elevartor cuts losses on HBC shares of Hoa Binh Construction

Hoa Binh Construction Group Joint Stock Company (Hoa Binh Group) has just announced information on stock transactions of major shareholders.

Accordingly, Huyndai Elevator Co., Ltd (Hyundai Elevator), a major shareholder of Hoa Binh Construction Group (code HBC), has just announced that it has sold 5 million shares to reduce its ownership from more than 28 million shares (8.08%) to more than 23 million shares (6.64%).

The transaction completion date is July 31. With the current trading price of HBC at around VND5,900/share, when selling 5 million shares, Hyundai Elevator can earn less than VND30 billion.

In 2019, Hoa Binh Group and Hyundai Elevator signed a private placement and strategic cooperation agreement with Hyundai Elevator participating in 25 million shares, worth up to VND 575 billion.

A project of Hoa Binh Group

A few days earlier, Hoa Binh Group had sent a reply to the Ho Chi Minh City Stock Exchange (HoSE) regarding the mandatory delisting of HBC shares due to accumulated losses over the past 3 years. However, Hoa Binh Group did not agree with the grounds that HoSE applied to consider the mandatory delisting of HBC shares.

According to the group, there is currently no legal document from any competent authority guiding the application or interpretation of the law in this case. Hoa Binh Group has a charter capital of more than VND 2,741 billion, while the after-tax profit in the 2023 separate audited financial report is more than VND 2,401 billion and in the 2023 consolidated audited financial report is more than VND 3,240 billion.

Thus, the total accumulated loss of the group on the separate audited financial statements has not exceeded the charter capital, so it is not subject to delisting according to regulations.

At the same time, Hoa Binh Group has just announced its decision to invest 9.8 billion VND to establish PAX Trading and Investment Joint Stock Company (mainly operating in the field of construction materials and interior decoration). Hoa Binh Group plans to buy 98% of the charter capital and appoint Mr. Le Viet Hieu as the authorized representative at this company.

Closing the trading session on August 2, HBC shares hit the floor at 5,510 VND/share.

Source: https://nld.com.vn/hyundai-elevartor-cat-lo-co-phieu-hbc-196240802195956838.htm