Having recently changed ownership, HVS Securities has had its operations suspended.

The State Securities Commission issued a decision to suspend all operations of HVS Vietnam Securities Joint Stock Company due to its failure to maintain the required physical infrastructure conditions.

According to point d, clause 1, Article 94 of the 2019 Securities Law, the State Securities Commission decides to suspend one, several, or all business activities of a securities company, securities investment fund management company, branch of a securities company, and foreign fund management company in Vietnam in the case of "Failure to meet the conditions stipulated in clause 1, Article 85 of this Law or the condition that equity capital is not lower than the minimum charter capital after the rectification period stipulated in clause 2, Article 85 of this Law".

HVS Securities Vietnam, with a charter capital of VND 50 billion (headquarters located in Nam Long residential area, Tan Thuan Dong ward, District 7, Ho Chi Minh City), was formerly Hung Vuong Securities Joint Stock Company.

The company operates with diverse securities business activities: securities brokerage; securities investment advisory; securities custody; corporate financial advisory…

Previously, in May 2024, HVS Securities was fined 125 million VND by the State Securities Commission for arbitrarily changing its head office without approval from the regulatory authority.

In addition, the company was also fined an extra 85 million VND for failing to report a remedial plan, approved by the company's board of directors, regarding its failure to meet the conditions for maintaining the license to establish and operate a securities business.

In HVS's audited semi-annual financial report for 2024, the auditors highlighted key issues, noting that HVS is awaiting approval from the State Securities Commission regarding a change of its head office and an increase in charter capital as required by regulations. Therefore, the company only generated interest income from investments held until maturity.

Furthermore, the audit also highlighted that, as of the report's release date, HVS had submitted documents to the State Securities Commission requesting a capital increase through a share offering to existing shareholders and a share issuance plan meeting the approved foreign ownership ratio, thereby increasing its charter capital from VND 50.2 billion to VND 300.2 billion.

Accordingly, the total amount of capital to be raised is expected to be 250 billion VND, and the specific issuance date will be decided by the Board of Directors after approval from the State Securities Commission. Currently, the State Securities Commission is still considering approving the change of head office and the increase in charter capital, which raises doubts about the company's ability to continue operating.

However, in the interim report, there was no reason for the Board of Directors and the General Management Board of HVS to believe that the company would not be approved by the State Securities Commission to continue operating. Therefore, HVS's interim financial report was prepared on the assumption that the company would continue operating.

For the first six months of the year, HVS recorded operating revenue of VND 201 million and a pre-tax loss of VND 266 million, while in the same period last year, operating revenue reached VND 414 million and a profit of VND 203 million. The cumulative loss as of June 30th was VND 39.3 billion.

Last August, HVS held its first extraordinary general meeting to approve several items, including a plan to issue rights to existing shareholders to increase charter capital, with an exercise ratio of 1:4.98 (1 right to purchase 4.98 newly issued shares); and an increase in the foreign ownership limit to 100%. Of particular note was the proposal regarding the resignation and dismissal of members of the Board of Directors and the Supervisory Board for the 2023-2028 term.

The list of new members includes entirely new names, including Ms. Van Le Hang, elected as Chairwoman of the Board of Directors and Head of the Supervisory Board of HVS, Ms. Nguyen Thi Thuy, Mr. Trinh Binh Long, Ms. Mai Ngoc Anh, Mr. Du Ba Phuoc, and Ms. Ngo Thi Hong Nhung.

Among them, Ms. Van Le Hang, born in 1993, is currently a sales specialist at TCG Land Co., Ltd.

Ms. Nguyen Thi Thuy, born in 1982, is a secretary/assistant at Thanh Cong Group Joint Stock Company. Mr. Trinh Binh Long, born in 1975, currently holds the position of General Secretary to the General Director at Thanh Cong Group Joint Stock Company.

The first extraordinary General Meeting of Shareholders in 2024 also approved the change of General Director. Specifically, HVS dismissed Ms. Pham Thi Giang from the position of General Director and appointed Mr. Tien Quoc Nhiem to the position of General Director of HVS from August 7, 2024.

Looking back at the history of changes in HVS's shareholder structure, there are three major milestones. Specifically, in December 2020, the three existing major shareholders, Duong Van Tai (owning 49% of HVS capital), Hoang Nguyen Thanh Hung (28.72%), and Pham Ngoc Chien (22.28%), transferred their shares to individuals Le Hong Anh (49%), Nguyen Toan Thang (28.72%), and Nguyen Dinh Dai (22.28%). Subsequently, the shares were transferred to Ms. Truong Thi Hong Nga, Mr. Ngo Van Do, and Mr. Thai Dinh Sy. To date, these three shareholders have completely divested their capital, transferring it to Ms. Van Le Hang (owning 90.81% of HVS capital).

Source: https://baodautu.vn/moi-doi-chu-chung-khoan-hvs-bi-dinh-chi-hoat-dong-d225040.html