The Board of Directors will present a general plan to the shareholders for the divestment of all capital contributions in 4 subsidiary companies in order to raise funds to settle and thoroughly handle the company’s borrowing debts.
Accordingly, HVG will seek suitable partners to sell all shares in An Giang Seafood Import and Export Joint Stock Company (AGF). This subsidiary has a charter capital of more than 281 billion VND, of which HVG holds 79.58%.
The company will also sell all 50.38% of shares in Viet Thang Livestock Feed Joint Stock Company (VTF) and use the entire amount of money received to process the debt. VTF has a charter capital of over 1,045 billion VND.
In addition, HVG also plans to sell all 89.99% of shares in Hung Vuong Vinh Long Aquafeed Joint Stock Company (charter capital of 80 billion VND). In which, HVG directly owns 39% and indirectly owns 50.99% through its subsidiary, Hung Vuong Mekong Aquaculture Joint Stock Company (HVG holds 99.98%).
Finally, regarding the divestment method in Hung Vuong Asia Joint Stock Company (charter capital of 360 billion VND, HVG holds 85%), Hung Vuong will sell the entire company or the cold storage finance owned by the company.
Looking back at the business results, from 2008-2014 was a period of acceleration for HVG when revenue increased continuously from 2,985 billion VND to 14,902 billion VND. Remarkably, in 2011, HVG made a breakthrough with a record net profit of 418 billion VND, double the previous year, and revenue also increased strongly by 73% to 7,689 billion VND.
However, in 2016, the company’s business results plummeted, with a net loss of nearly 49 billion VND, despite an increase in revenue compared to the previous year. In 2017, “the king of catfish” suffered a net loss of 713 billion VND and began to see a decrease in revenue; and witnessed a loss of over 1 trillion dong in the next 2 years (net loss of 1,075 billion dong in 2019).
| HVG’s business results |
In early January 2020, THADI – a unit of Thanh Cong Vehicle Corporation (predecessor of Truong Hai Corporation today) – signed a strategic cooperation agreement with HVG.
 Source: Thaco Website
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According to the content of the strategic cooperation agreement, THADI will invest in HVG with a 35% stake, while also participating in supporting HVG in restructuring activities, adjusting the strategy, as well as supporting financial difficulties in the near future and investing 65% in the THADI – HVG joint venture in the pig breeding industry. This joint venture has an initial investment capital of 2,000 billion VND.
Thanks to that, HVG expects to escape the continuous loss situation. However, the result did not meet expectations. HVG’s shares were delisted from HOSE on August 5, 2020. Individual and institutional shareholders related to Thaco also divested almost all of their capital from HVG after more than 1 year of investment.
Currently, HVG’s shares are in the suspended trading status on UPCoM because the registered trading organization has not taken measures to overcome the causes leading to the shares being put under trading restrictions as regulated in the Securities Law. At the same time, they were compulsorily delisted for serious violations of the obligation to disclose information according to the decision of HOSE on July 29, 2020.
The Hanoi Stock Exchange (HNX) also decided to maintain the trading suspension status for HVG shares for the above reasons at the beginning of December 2023. The basis for consideration is that the trading registration organization has not disclosed audited financial statements for the years 2020, 2021, 2022.
HVG’s shares are still under trading restrictions as the registered trading organization did not hold annual General Shareholders’ Meetings for the 2 most recent fiscal years within the maximum period from the end of the fiscal year as stipulated by the Law on Enterprises; late submission of semi-annual financial statements for 2022, 2023 has been examined and reviewed more than 45 days from the end of the deadline for disclosure as stipulated.
Kha Nguyen
