In particular, Mr. Trần Trọng Thắng – Deputy Chairman of the Board of Directors of FECON Joint Stock Company (HOSE: FCN) – registered to sell 350 thousand FCN shares, equivalent to 55% of the total shares currently held, for personal financial needs.
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The transaction is expected to take place from 29/02 to 29/03, through matching orders or agreements. Based on the closing price of the session on 27/02/2024 at 14,200 VND/share, it is estimated that Mr. Thắng will earn nearly 5 billion VND for this deal.
It is worth mentioning that this leader also wanted to sell the above-mentioned shares during the period from 11/01 to 06/02/2024, but it was unsuccessful due to the market price not being suitable.
In fact, during that period, FCN shares still fluctuated in a sideways cycle, starting from December 2023, after a good recovery phase since November.
| One-year change of FCN shares |
The share selling move by the leader of FCN takes place in the context of the company facing many difficulties in its business operations, leading to the first year of incurring losses since being listed.
Specifically, in the fourth quarter of 2023, FCN was greatly impacted by a significant decrease in financial income to negative 260 million VND, while the same period last year was positive with 131 billion VND, thanks to the sale of the Vĩnh Hảo 6 solar power project. In addition, borrowing costs also increased by 36% due to the impact of the interest rate hike since the end of 2022 and the increase in debt.
Another disadvantage comes from other losses of 3.7 billion VND, as there is no longer an income from the joint venture agreement for the shared use of the transmission line of Quốc Vinh Sóc Trăng wind power plant, while the same period had a profit of nearly 26 billion VND.
In the fourth quarter alone, the decline dragged down the whole year of 2023 with a loss of 32 billion VND, thereby continuing to be a disappointing year for FCN shareholders as the profit has continuously decreased since 2018. And only achieving about 76% of the previously set revenue target.
Prepayments rise to a record high, FECON suffers its first loss since being listed
FCN shareholders have to wait until the end of 2024 to receive the majority of the 2022 dividends
| Declining profits of FCN in recent years |
