Businesses lose heavily due to stock investment

Danang Housing Development Investment Joint Stock Company (stock code NDN) has just announced additional documents for the 2023 Annual General Meeting of Shareholders scheduled to be held on June 24. Accordingly, the company has announced the addition of 4 candidates to the Board of Directors for the 2020-2025 term, including Mr. Vo Ngoc Khang, Ms. Cao Thi Thien, Mr. Nguyen Ngoc Quang and Mr. Nguyen Van Tam. Notably, Mr. Vo Ngoc Khang (born in 1992) used to work at 3 securities companies: VNDirect, Da Nang and VPS in the period from June 2014 to December 2022.

Many businesses suffer heavy losses due to stock investment.

NDN is known as a company that suffered a lot of losses from stock investments in the first quarter of 2023. By the end of March, many stocks had increased in price again, but the company still had to set aside more than 49 billion VND in provisions. NDN's trading securities investment portfolio had an original price of 365 billion VND, but its fair value was only 331 billion VND. The company's leaders emphasized that they would restructure the securities investment portfolio to enterprises with safe financial structures, lots of cash, stock prices approaching book value, and strong growth potential; prioritize investment in low-risk financial investment channels...

Or Vinh Hoan Corporation (VHC) announced its Financial Report for the first quarter of 2023, in which it had to set aside more than VND 7.25 billion in provisions for securities investments while recording a loss of more than VND 533 million in trading securities. This provision was less than in the fourth quarter of 2022.

Meanwhile, An Phat Investment Service Trading Joint Stock Company has been a major shareholder of Song Da Urban and Industrial Park Development Investment Joint Stock Company (stock code SJS) for over a year. Specifically, in mid-April 2022, An Phat won the auction for more than 41.7 million SJS shares at a price of VND 101,900/share. According to estimates, the amount of money that An Phat spent to collect the above shares is up to VND 4,258 billion. Currently, SJS shares are priced at VND 42,400, down nearly 60% compared to the price at the time An Phat Investment bought them - equivalent to a loss of VND 2,512 billion...

According to SSI Securities' statistics according to the Financial Report for the first quarter of 2023, 419 enterprises recorded positive profit growth and 391 enterprises reported a decrease in profit. The number of loss-making units in the first 3 months of the year reached 211 units (accounting for 21% of the number of companies that have announced financial reports as of May 5).

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