VNDirect (VND) invested in Loc Troi and lost 40%, appointed the husband of female tycoon Minh Huong as Vice Chairman

Businesswoman Minh Huong and her husband Vu Hien hold the positions of Chairman and Vice Chairman of VNDirect.

VNDirect Securities Joint Stock Company (Code: VND) has just appointed Mr. Vu Hien, a member of the Board of Directors, as the Permanent Vice Chairman of the Board of Directors of the company, effective from October 11, 2024.

Following this appointment, VND's Board of Directors comprises five members: Ms. Pham Minh Huong - Chairperson; Mr. Vu Hien - Standing Vice Chairperson; Mr. Mai Huu Dat - Vice Chairperson; Mr. Nguyen Vu Long - Member of the Board of Directors and General Director; and Mr. Vu Viet Anh - Independent Member of the Board of Directors.

VNDirect has just appointed Minh Huong's husband, tycoon Vu Hien, to the position of Vice Chairman of the Board of Directors (Photo courtesy).

Besides owning VnDirect Securities, the wealthy couple Vu Hien and Minh Huong are also the founders of IPA Investment Group Joint Stock Company (Code: IPA) and hold the positions of Chairman of the Board of Directors and legal representative of the company. Mr. Hien is also a member of the Board of Directors of two other companies: H&H Investment Management Company Limited and Chairman of the Board of Directors of Bac Ha Energy Joint Stock Company.

Under the management of tycoon Vu Hien, IPA is also the largest shareholder of VNDirect, owning 25.84% of the shares. The investment in VNDirect alone accounts for half of IPA's assets. Recently, Vu Hien's IPA has also attracted attention due to a fourfold increase in financial costs in Q2 2024, putting significant pressure on business results.

Investors lose nearly 40% on their investment in Loc Troi Group (LTG) shares.

Established in 2006, VNDirect is known as a reputable securities company in the Vietnamese market. In terms of business performance, in the second quarter of 2024, VNDirect recorded revenue of VND 1,458 billion, a decrease of 8% compared to the same period last year. Net profit of the parent company reached VND 345 billion, a decrease of 18%. Compared to previous quarters, the company experienced its worst business quarter in the past year.

According to the explanation, operating expenses during the period increased by 42%, reaching 803 billion VND. Meanwhile, losses from FVTPL financial assets increased by 36%, reaching 538 billion VND.

Financial provisions increased 51-fold compared to the same period last year, amounting to VND 98 billion. These expenses significantly eroded VNDirect's revenue, leading to a decline in net profit.

Notably, revenue from securities brokerage services also declined by 10% during the period, falling to only VND 182 billion. Fortunately for VND, the Q1 profit covered the entire Q2 period, thereby bringing the first-half business results back on track.

Securities brokerage activities have declined, and the proprietary trading segment is also showing some shortcomings. Financial assets recognized through profit/loss (FVTPL) amounted to only VND 272 billion, a decrease of 51% compared to the same period last year.

In addition, VNDirect also holds approximately VND 8,600 billion in unlisted bonds, VND 7,400 billion in certificates of deposit, and VND 2,200 billion in listed bonds. Compared to the beginning of the year, the amount of bonds owned by VND has increased significantly.

The amount of shares held in the investment portfolio also increased sharply, with listed shares accounting for VND 1,600 billion and unlisted shares accounting for VND 1,300 billion. Notably, the investment in LTG shares of Loc Troi Group JSC amounted to VND 115 billion, resulting in a temporary loss of 39% at the end of Q2/2024.

In fact, the actual losses could be even higher because LTG shares are experiencing sharp declines following the controversy surrounding its leadership and cash flow difficulties.

At the end of Q2/2024, VNDirect's total assets were recorded at VND 45,153 billion. Of this, liabilities accounted for VND 27,869 billion, equivalent to 61.7% of total capital.

Source: https://www.congluan.vn/dau-tu-vao-tap-doan-loc-troi-thua-lo-40-vndirect-vua-bo-nhiem-chong-nu-dai-gia-minh-huong-lam-pho-chu-tich-post316578.html