The FLC Group (stock code: FLC) has just announced the minutes of the extraordinary general meeting of shareholders held on February 20, 2024. In the meeting, many shareholders raised questions about the fact that FLC’s shares are still suspended from trading and placed under warning. So why is this situation happening and why hasn’t it been resolved yet? What is the plan to resolve this issue?
The representatives of the FLC leadership informed the FLC shareholders that the suspension of FLC shares from trading stems from the fact that the company has not fulfilled the obligation to disclose information on its audited financial reports. Since the prosecution of the leaders at the beginning of 2022, the audit of the FLC Group has been stalled, and the company has been facing difficulties in finding an auditing firm. So far, FLC has found a suitable auditing firm, UHY Consulting and Auditing Co., Ltd.
However, due to some reasons related to lost files, documents, office relocation, contacting former personnel to clarify, and other objective reasons, some contents in the 2021 financial report have not been determined and clarified by the auditing company.
Consequently, the FLC Group is unable to issue the audited financial reports for 2021 and also has no basis for conducting the audit of the financial reports for 2022 and 2023. This is also the reason why the company has not been able to prepare sufficient documents to organize the annual general meetings for 2022 and 2023.
To bring FLC shares back to trading as soon as possible, the FLC Group is still making efforts to coordinate with the UHY auditing firm to carry out supplementary procedures as a basis for providing appropriate audit opinions on the audited financial reports for 2021, as a basis for convening the annual general meeting for 2022. After a successful organization, FLC will proceed with the necessary steps according to the regulations of the law to convene the annual general meeting for 2023 as soon as possible, thereby completing the documentation to resume trading FLC shares on the UPCoM exchange.
It is known that regarding violations of information disclosure, 710 million FLC shares have been suspended from trading on the HoSE exchange since September 9, 2022 (previously in the restricted trading phase).
To protect the rights and interests of investors, by February 20, 2023, all of these shares have been delisted from the HoSE exchange. By the end of June of the same year, all FLC group shares have been delisted from both the HoSE and UPCoM exchanges, and no stocks have been resumed trading after delisting.
The panorama of the FLC AGM.
Regarding other matters, the FLC leadership shared that the years 2022-2023 are extremely challenging and difficult periods for the Group as it has faced many difficulties in operations due to being directly affected by information as well as arising issues related to the case of the Group’s senior leaders. However, with the highest determination and efforts of the Company’s leadership, the collective of employees, along with the support and assistance from state agencies, banks, customers, and contractors, the FLC Group has also achieved some notable achievements.
The estimated total value of existing assets is over VND 21,000 billion, maintaining the quality and value of assets. The FLC Group has been and is accessing and researching many projects, spanning over 20 out of 63 provinces and cities nationwide, with a focus on implementing some key projects. The Group has contributed approximately VND 800 billion to the state budget, fulfilled debt repayment obligations of about VND 4,400 billion.
After a strong restructuring process, adjusting the personnel scale by reducing 60% of the internal staff, balancing the organizational system, and stabilizing income for over 3,500 employees, the total salary and bonus in 2023 reached over VND 300 billion. The Group has merged 50% of departments, established new Business & Strategy Committees and IT Departments.
In 2024, the Group will continue to intensify the restructuring and repositioning of the core areas with three main pillars: Real Estate Business, Resort Business, and M&A projects to restructure loans and maintain business operations.
Regarding the Real Estate Business sector, The Group will continue to implement construction according to commitments with customers in 07 key projects such as FLC Premier Parc Low-rise, C4C5 Thanh Hoa, Ha Long Villas, Tropical 1&2, HH1 – HH4. In addition, the Group plans to implement construction of 06 more projects: Hilltop Gia Lai, Legacy Kon Tum, FLC Sam Son, Sadec, Quy Nhon, and Quang Binh projects.
The revenue target for the Real Estate Business segment of the FLC Group in 2024 is VND 1,187.2 billion to carry out construction and completion of projects according to commitments with customers.
Regarding the hotel and resort tourism sector, The FLC Group will focus on operating the FLC Ha Long, FLC Sam Son, FLC Quang Binh resort complexes, maximize room capacity, ensure cash flow to maintain the operation of the enterprise. At the same time, to utilize the available infrastructure, the Group will seek potential partners, negotiate cooperation plans to operate and exploit certain items at the resort complexes.
The revenue target for the Resort Business segment in 2024 is VND 1,213 billion, with profits enough to maintain the machinery and fulfill commitments to other relevant parties such as State agencies, customers, and banks.
Regarding other business areas, The FLC Group will continue to research and implement activities in some potential business areas that can generate revenue and profits for the Group.
