Drowning in losses, Cong Thanh Cement received an additional fine of more than 500 million VND

For many violations in the field of securities and the stock market, Cong Thanh Cement Joint Stock Company was fined a total of 507.5 million VND.

The State Securities Commission has just issued a Decision on administrative sanctions in the field of securities and securities market against Cong Thanh Cement Joint Stock Company (address: Tam Son village, Tan Truong commune, Nghi Son town, Thanh Hoa province).

The Company has not disclosed information on the State Securities Commission's information disclosure system for the following documents: Financial statements for the fourth quarter of 2022, first quarter of 2023, third quarter of 2023, and fourth quarter of 2023; Explanation of the reasons for the change in profit after corporate income tax of 10% or more compared to the same period last year for the 2022 audited financial statements; Notice of signing the audit contract for 2023.

The Company does not disclose information on the information disclosure system of the Hanoi Stock Exchange for the following documents: Report on the use of proceeds from the issuance of audited bonds in 2022, 2023 and semi-annual 2023; Payment of principal and interest of bonds in 2022, 2023 and semi-annual 2023; Report on the implementation of commitments of the issuing enterprise to bondholders in 2022 and semi-annual 2023

The Company did not disclose information within the prescribed time limit on the information disclosure system of the State Securities Commission for the following documents: Audited financial statements for 2022 and 2023; Annual reports for 2022 and 2023; Semi-annual audited financial statements for 2023; Resolution of the Board of Directors No. 01-2023/NQ-HDQT dated January 5, 2023 on borrowing money from the Deputy General Director; Explanation of the auditor's rejection opinion in the 2023 Financial Statement; Explanation of the reason for the change in profit after corporate income tax of 10% or more compared to the same period last year for the Semi-annual audited financial statements for 2022, Semi-annual audited financial statements for 2023 and Financial statements for 2023).

Cong Thanh Cement was fined an additional VND 65 million for the act of disclosing information with incomplete content according to the provisions of law (In the 2023 Corporate Governance Report, the Company did not present the Board of Directors' Resolution No. 01-2023/NQ-HDQT dated January 5, 2023 on borrowing money from the Deputy General Director; did not present information on transactions between the Company and related persons. According to the Audited Financial Reports for 2022 and 2023, in 2022, the Company incurred a transaction to repay a loan to Ms. Nguyen Thi Da Thao, Deputy General Director of the Company, for VND 10.1 billion. In 2023, the Company borrowed VND 17.4 billion from Ms. Thao.

In particular, the State Securities Commission also fined this enterprise 350 million VND for not registering securities transactions. The company completed the registration of a public company on November 13, 2009, but to date the company has not registered to trade shares on the securities trading system.

For this act, the State Securities Commission requires the company to submit a dossier of registration for securities trading and listing to the Vietnam Stock Exchange and its subsidiaries within a maximum period of 60 days, as prescribed in Point a, Clause 7, Article 18 of Decree No. 156/2020/ND-CP for the act of not registering securities trading.

The 2023 audited financial report of Cong Thanh Cement shows that this enterprise is drowning in losses and debt.

While the owner's equity is only about VND 900 billion, Cong Thanh Cement's accumulated loss by the end of 2023 has reached VND 7,905 billion, causing negative equity of more than VND 7,000 billion. Meanwhile, liabilities continue to increase, reaching VND 19,005 billion, mostly long-term payable expenses (VND 10,035 billion) and more than VND 7,000 billion is financial leasing debt.

The auditor refused to give an opinion on Cong Thanh Cement's 2023 financial statements because many figures were not provided with evidence such as the ability to pay debts such as bonds, overdue loans, short-term receivables, prepayments, etc.

Source: https://baodautu.vn/ngap-trong-thua-lo-xi-mang-cong-thanh-linh-them-an-phat-hon-500-trieu-dong-d231418.html