With its stock hitting the ceiling limit for five consecutive sessions, TMT Automobile Joint Stock Company - the manufacturer, assembler, and distributor of Wuling electric vehicles in Vietnam - will have to provide an explanation as requested by the HoSE (Hanoi Stock Exchange).
TMT shares surged after news that the company is selling electric cars for under 150 million VND - Photo: TMT
On the last day of 2024, the Ho Chi Minh City Stock Exchange (HoSE) sent a letter to TMT Automobile Joint Stock Company requesting an explanation for the company's share price hitting the ceiling limit for five consecutive sessions from December 25 to 31.
According to current regulations, public companies must disclose information within 24 hours of any of the following events: If a company becomes aware of an event or information that affects its own securities price, it must confirm or correct that event or information.
Therefore, HoSE requests TMT to disclose information in accordance with the above regulations.
At the close of trading on December 31st, the share price of TMT increased to its maximum limit of 9,840 VND. After a sharp increase from December 24th to the present, the share price of TMT has risen by nearly 40% in one week and 43% in one month.
The new document was sent on the afternoon of December 31st, but TMT Auto has not yet provided an explanation.
TMT shares have risen since TMT Motors announced it is in negotiations with partner General Motors - SAIC - Wuling (SGMW) to launch a commercial version of a motorcycle capable of replacing two-wheeled vehicles, with an expected price including the battery under 150 million VND.
According to information from TMT, this vehicle has an overall length of 2,488 mm, a width of 1,506 mm, and a height of 1,670 mm.
This model was launched in China in July 2017 in Liuzhou City, Guangxi Province, with the mission of gradually replacing motorbikes and improving the environment by reducing emissions from transportation.
Currently, TMT Motor is a partner of the General Motors - SAIC - Wuling (China) joint venture to manufacture, assemble, and distribute Wuling Mini EV electric mini cars in Vietnam.
Notably, TMT shares surged despite the company's unfavorable business performance. In its semi-annual audit report, the auditors stated that TMT's short-term liabilities exceeded its short-term assets by more than 120 billion VND.
Therefore, the audit found "the existence of material uncertainties that could cast doubt on TMT Motors' ability to continue as a going concern".
According to the financial statement notes for the second quarter of 2024, to ensure liquidity and reduce interest expenses, the company stated that it had to lower selling prices to clear inventory. In addition, they also cut staff, reduced costs, and determined that they needed to restructure their product lines, focusing on better new products.
The company also stated that it plans to liquidate fixed assets and investments, and recover accounts receivable from customers to supplement working capital and cover due debts and loans.
Accordingly, the company expects to be able to repay its debts when due and continue operating in the next accounting period. Based on this, the company's management prepares consolidated financial statements on the basis of meeting the going concern assumption.
Source: https://tuoitre.vn/mot-cong-ty-o-to-viet-nam-sap-ban-xe-dien-gia-duoi-150-trieu-dong-phai-giai-trinh-vi-co-phieu-20241231200719973.htm
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