HNX has decided that the stock CPI will only be traded on Fridays due to trading restrictions caused by negative equity in the 2023 financial statements that have been audited.
Explaining the issue, CPI stated that it had invested capital in Cai Lan International Port Joint Stock Company (CICT) with a total value of VND 473 billion. However, the business activities of CICT have not been effective, with annual losses resulting in negative equity. The company has had to set aside a 100% provision for its investment, resulting in accumulated losses on the balance sheet as of December 31, 2023 exceeding the equity.
 CPI has had to set aside a provision for the entire investment in CICT. Source: CPI’s audited 2023 financial statements
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Regarding the recovery plan, CPI stated that it has been and is implementing solutions to restructure CICT’s loans with the goal of reducing debt and interest rates. After successful restructuring, CICT’s business operations will be efficient, generating profits and reducing accumulated losses. CPI will be able to reverse the previously set-aside expenses, resulting in a reduction in negative equity.
Previously, on August 15, 2022, CPI was also subject to trading restrictions on the UPCoM due to negative equity based on the audited semi-annual 2022 financial statements.
CPI is a subsidiary of Vietnam Maritime Corporation – JSC (Vinalines, UPCoM: MVN), with a 56.58% ownership stake as of December 31, 2023. Another major shareholder of CPI is Quang Ninh Port JSC (UPCoM: CQN).
The company’s main business activities are investment, construction, and operation of berths 2, 3, and 4 at Cai Lan Port, Ha Long City, Quang Ninh Province. Currently, CPI is the official agent providing maritime services and customs procedures for unloading goods from Hyundai and Zim vessels at CICT Port in the Cai Lan, Quang Ninh area. CPI has been listed on the UPCoM market since July 2017.
CPI’s business performance is not optimistic, with continuously negative retained earnings leading to a significant decline in equity since 2013 and officially negative since 2015, a total of 9 consecutive years.
| CPI’s negative equity since 2015 |
Huy Khai
