Violations in transactions and reporting, 2 businesses were administratively fined nearly 500 million VND

Accordingly, on April 25, 2025, the State Securities Commission issued Decision No. 132/QD-XPHC on administrative sanctions in the field of securities and the securities market against Refrigeration Electrical Engineering Joint Stock Company (Address at 364 Cong Hoa, Ward 13, Tan Binh District, Ho Chi Minh City).

Refrigeration Electrical Engineering Joint Stock Company was fined VND 85 million according to the provisions of Point a, Clause 4, Article 42, Decree No. 156/2020/ND-CP dated December 31, 2020 of the Government stipulating administrative sanctions for violations in the field of securities and the securities market (Decree No. 156/2020/ND-CP) for the act of not disclosing information that must be disclosed according to the provisions of law.

Specifically, the Company did not disclose information as prescribed on the Corporate Bond Information Portal of the Hanoi Stock Exchange for the following documents: Report on the implementation of commitments of the issuing enterprise to bondholders in 2022; Report on the use of proceeds from the audited bond issuance in 2022; Report on the use of proceeds from the audited bond issuance in the 2023 semi-annual audit.

Next, the Company was fined VND 125 million according to the provisions of Point c, Clause 6, Article 15, Decree 156/2020/ND-CP amended and supplemented according to the provisions of Clause 13, Article 1, Decree 128/2021/ND-CP dated December 30, 2021 of the Government amending and supplementing a number of articles of Decree No. 156/2020/ND-CP for violations of regulations on transactions with shareholders, business managers and related persons of these subjects.

According to the audited separate and consolidated financial statements for 2023 and the Corporate Governance Report for the first 6 months of 2024, the company has transactions with REE Refrigeration Electrical Engineering and Services Joint Stock Company (a subsidiary and a related organization of the company's insider); REE Electrical Appliances Joint Stock Company (a subsidiary and a related organization of the company's insider); Thac Mo Hydropower Joint Stock Company (an associate and a related organization of the company's insider). These transactions have not been approved by the General Meeting of Shareholders/Board of Directors of the company.

The total fine imposed on the company is 210 million VND.

On the same day, the State Securities Commission issued Decision No. 131/QD-XPHC on administrative sanctions against VCP Construction and Energy Joint Stock Company (Head office address: 19th floor, Vinaconex building, No. 34 Lang Ha, Lang Ha ward, Dong Da district, Hanoi city).

VCP Construction and Energy Joint Stock Company was fined VND 85 million according to the provisions of Point a, Clause 4, Article 42, Decree No. 156/2020/ND-CP dated December 31, 2020 of the Government stipulating administrative sanctions for violations in the field of securities and the securities market (Decree No. 156/2020/ND-CP) for the act of not disclosing information that must be disclosed according to the provisions of law.

Specifically, the Company did not disclose information on the Corporate Bond information system of the Hanoi Stock Exchange (HNX) for the following documents: Report on the use of capital from the audited bond issuance in 2022; Report on the implementation of commitments of the issuing enterprise to bondholders in 2022; Report on the use of money from the audited semi-annual bond issuance in 2023; Untimely disclosure of information on the Corporate Bond information system of the HNX for the following documents: Disclosure of information on the completion of early bond repurchase of bond codes VCPBOND2020-01 and VCPBOND2020-02; Report on the use of capital from the semi-annual bond issuance in 2022; Semi-annual financial reports for 2022 and 2023; Financial reports for 2022; Report on the payment of interest and principal of semi-annual and 2022 bonds; Report on the implementation of commitments of the issuing enterprise to the owners of semi-annual bonds in 2023.

In addition, the Company did not disclose information on time on the information disclosure system of the State Securities Commission and the HNX's electronic information page for the following documents: Resolution of the Board of Directors No. 06/NQ-HĐQT dated September 4, 2023 on approving the plan to buy back bonds before maturity; Consolidated financial statements for the fourth quarter of 2023; Separate and consolidated financial statements for the first quarter of 2024; Explanation of the reason for the difference between pre- and post-audited profit of 5% or more in the 2023 audited financial statements; Disclosed information on time on the Company's electronic information page for the list of candidates for the Board of Directors and the Supervisory Board at the 2023 and 2024 Annual General Meetings of Shareholders.

Next, the company was fined VND 60 million according to the provisions of Point b, Clause 3, Article 42, Decree No. 156/2020/ND-CP for the act of disclosing information with incomplete content according to the provisions of law. Accordingly, in the 2024 Corporate Governance Report, the company did not state the Decision/Resolution of the Board of Directors meeting in the fourth quarter of 2024; in the 2023 and 2024 Corporate Governance Report, the company did not present transactions with related persons of the company, transactions in which the company lent money to major shareholders; in the information section on Board of Directors members, the title of independent Board of Directors member was not presented.

Finally, the company was fined VND 125 million according to the provisions of Point c, Clause 6, Article 15, Decree No. 156/2020/ND-CP amended and supplemented according to the provisions of Clause 13, Article 1, Decree No. 128/2021/ND-CP dated December 30, 2021 of the Government amending and supplementing a number of articles of Decree No. 156/2020/ND-CP for violations of regulations on transactions with shareholders.

According to the Audited Financial Statements for 2023 and 2024, Mr. Vu Tuan Cuong and Mr. Le Quoc Huong are major shareholders of the company. However, in Appendix 2 of the explanatory notes to the Audited Financial Statements for 2023, the company lent Mr. Vu Tuan Cuong VND 310 billion and Mr. Le Quoc Huong VND 25 billion; in Appendix 2 of the explanatory notes to the Audited Financial Statements for 2024, the company lent Mr. Vu Tuan Cuong VND 4.5 billion.

The total fine imposed on the company is 270 million VND.

Source: https://nhandan.vn/vi-pham-trong-giao-dich-va-bao-cao-2-doanh-nghiep-bi-phat-hanh-chinh-gan-500-trieu-dong-post875634.html