Saigontel (SGT) leader's relatives sold shares half a year later and only announced

Relatives of leaders sell shares after half a year of announcement

Recently, the Ho Chi Minh City Stock Exchange (HoSE) announced that it had received a report on the trading results of a relative of the leader of Saigon Telecommunication Technology Corporation - Saigontel (SGT).

Notably, the transaction from October 17, 2022 to October 20, 2022, Mr. Nguyen Son, brother of Ms. Nguyen Thi Kim Thanh, member of the Board of Directors. Mr. Son sold 158,600 SGT shares to reduce his ownership to 2,371,654 shares, equivalent to 3.2% of charter capital.

Saigontel (SGT) leader's relatives sold shares but only announced it half a year later (Photo TL)

On January 5, 2023, Mr. Son sold another 8,000 shares, but this transaction was also not disclosed. In total, Mr. Son secretly traded 166,600 shares, but it was not announced until half a year later.

Meanwhile, according to regulations, the deadline for announcing transaction results of related parties is no later than 5 days.

6-month profit down 81.9%

Saigontel's Q2/2023 business results recorded revenue of VND388.5 billion. Most of the revenue comes from trade and service activities, the other part comes from land, office and factory leasing activities.

Cost of goods sold accounted for 328.2 billion VND, gross profit was only 60.3 billion VND, gross profit margin in the second quarter only reached 15.5%.

Another burden on revenue is the decline in financial revenue to 6.3 billion VND. Meanwhile, financial expenses, mostly interest expenses, increased. Interest expenses increased from 18.6 to 21.1 billion VND. This shows that the company is having to increase borrowing in daily operations.

Selling expenses and administrative expenses were 735 million and 19.7 billion VND respectively. Profit after deducting expenses and taxes was 17.2 billion VND. This result compared to the loss of 60.4 billion in the same period showed an improvement.

However, if we look at the first 6 months of the year as a whole, Saigontel is still going very slowly. Accumulated revenue for the first 6 months reached 481.8 billion VND, down 16.3% over the same period. Accumulated profit after tax reached 22.7 billion VND, down 81.9%.

Debt increases, Saigontel's debt far exceeds equity

As of June 30, 2023, Saigontel's total assets reached VND6,136.8 billion, up 11.8% compared to the beginning of the period. The increase mainly came from borrowed capital.

Cash and cash equivalents account for 137 billion, bank deposits account for 83.5 billion. Saigontel's major investments include 808.3 billion VND invested in affiliated companies, 700 billion VND invested in other units. However, the company is currently recording a provision for long-term financial investment losses of up to 135.1 billion VND.

Regarding the capital structure, it can be seen that Saigontel's short-term debt is on the rise, from 1,536.4 billion to 1,691.4 billion VND. Long-term debt is also on the rise, from 369.1 billion to 854.5 billion VND.

Saigontel's total debt is up to 2,545.9 billion VND while its equity is currently only at 1,943.8 billion VND. Thus, the current debt is 31% higher than its equity.

Source: https://www.congluan.vn/saigontel-sgt-nguoi-than-lanh-dao-ban-co-phieu-nua-nam-moi-thong-bao-post261318.html