Tri Viet Asset Management (TVC) lost 300 billion due to stock investment

Revenue dropped sharply by 76%, only profit was recorded thanks to provision reversal

Recently, Tri Viet Asset Management Group Corporation (TVC) announced its consolidated financial statements for the first quarter, recording net revenue of only VND18 billion, down 76% compared to the same period last year. Cost of goods sold also decreased in line with revenue, but by a smaller amount, only 66%.

Gross profit in the period reached 14 billion VND, gross profit margin decreased from 83% to only 76%. During the period, the company's financial revenue was almost non-existent.

Chairman arrested for managing assets of Tri Viet TVC lost hundreds of billions in stock investment picture 1 — With a sharp drop in revenue, Tri Viet Asset Management (TVC) is also temporarily recording a loss of nearly 300 billion VND due to stock investment. (Photo TL)

Meanwhile, financial expenses recorded a negative VND79 billion thanks to the reversal of securities depreciation provisions of up to VND83 billion. Thanks to this target, the company's after-tax profit reached VND80 billion, 2.6 times higher than the first quarter of last year.

Explaining the revenue fluctuations, the company said that the reason was because brokerage and margin lending activities recorded a decrease, reaching only about 4 billion VND and 13 billion VND respectively. Meanwhile, financial revenue also dropped sharply to almost nothing, causing the company's revenue to be heavily affected.

Securities investment is temporarily losing 292.9 billion VND due to the decrease in value of securities invested in the portfolio.

As of March 31, 2023, Tri Viet Asset Management's total assets were recorded at VND 2,248.5 billion, with the structure being mostly short-term assets. Of which, cash and cash equivalents accounted for VND 81.6 billion.

A notable part of the company's asset structure is the record of securities investment of up to VND 1,301.5 billion. However, at the end of the first quarter of this year, the provision for risks of devaluation of trading securities recorded a negative VND 292.9 billion. This means that Tri Viet Asset Management is temporarily recording a loss of VND 292.9 billion due to the decrease in securities prices.

In the securities investment portfolio of Tri Viet Asset Management, it can be seen that most of the securities codes owned by this company have decreased more or less. Most notably is the investment of 897.4 billion VND in HPG code of Hoa Phat Group, the original value is 897.4 billion VND but the fair value in the first quarter is only 622.6 billion VND.

The second most owned stock in the portfolio is FPT with an original holding of VND 289.4 billion, the company currently records a provision for price reduction of about VND 1.8 billion. Other stocks in the company's portfolio include MWG, TDH, MBB, NKG, DDV...

Chairman arrested, securities investment company suffers losses

The situation of Tri Viet Asset Management's temporary loss of hundreds of billions of dong in stock investment has made many investors worried. Especially when this happened in the context of the company's chairman being arrested and prosecuted for manipulating the stock market.

Specifically, Mr. Pham Thanh Tung, who used to hold the position of Chairman of the Board of Directors, was prosecuted for stock market manipulation due to his involvement in the price manipulation of two stock codes BII and TGG.

The case is also related to two defendants prosecuted for stock market manipulation, Do Thanh Nhan (Chairman of Louis Holdings) and Do Duc Nam (General Director of Tri Viet Securities).

In the indictment, the Supreme People's Procuracy identified the manipulation of Chairman Pham Thanh Tung when this subject agreed, directed approval, and used money from Tri Viet Asset Management Company to lend Do Thanh Nhan 748 billion VND to trade stocks, thereby illegally profiting 154 billion VND.

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