“The DIC Corp Liquidates Millions of Shares”

Last week, the VN-Index rose 28.58 points to 1,252.22. HoSE liquidity decreased by 12.5% from the previous week, reaching VND 74,674 billion. The HNX-Index ended the week at 235.15, up 5.77 points. Liquidity decreased by 10% compared to the previous week, reaching VND 5,567 billion.

On the HoSE, foreign investors bought a net of nearly 11.5 million units, with a total net buy value of over VND 1,075.6 billion. On the HNX, foreign investors bought a net of 357,500 units, with a total net buy value of over VND 40 billion.

In the Upcom market, foreign investors bought a net of 394,120 units but still sold a net of VND 21.54 billion in value. Thus, in the trading week from August 12-16, foreign investors on the overall market bought a net of more than 12.24 million units, with a total net buy value of over VND 1,094 billion.

More than 5.3 million DIG shares were sold for compulsory settlement

Construction Investment and Development Joint Stock Corporation (DIC Corp, stock code: DIG) has had 5,309,500 DIG shares sold for compulsory settlement by securities companies.

Of which, Shinhan Securities sold 2.35 million DIG shares for compulsory settlement. Mirae Asset Securities Vietnam sold nearly 3 million shares out of the registered 4.7 million units. Thus, the two companies sold about 5.3 million DIG shares.

In the second quarter of this year, DIG’s net revenue reached VND 821 billion (up nearly 410% over the same period), and after-tax profit reached more than VND 123 billion, nearly 14 times higher than in the second quarter of 2023, and the highest in the past 10 quarters since the beginning of 2022.

However, despite making a profit, DIG’s business cash flow was heavily negative. The net cash flow from operating activities in the second quarter of DIG was negative VND 1,200 billion.

Accumulated in the first 6 months of the year, DIC Corp recorded net revenue of VND 822 billion, up 130% over the same period in 2023. However, pre-tax profit decreased by nearly 60% over the same period last year, reaching VND 48 billion.

Major shareholder continuously sells PPC

REE Energy Company Limited – a subsidiary of Refrigeration Electrical Engineering Corporation (stock code: REE) – was unable to sell any of the registered 2 million PPC shares of Phả Lại Thermal Power Joint Stock Company. Thus, REE Energy still owns 66.49 million shares, equivalent to 20.74% of PPC’s charter capital.

The reason given for not being able to sell the registered shares was due to unfavorable market conditions.

Since the beginning of the year, REE Energy has continuously sold PPC shares to reduce ownership. Specifically, from January 19 to February 26, REE Energy sold 665,300 PPC shares. From March 4 to April 1, the company continued to sell an additional 1,900 PPC shares. From April 12 to May 10, REE Energy sold an additional 2 million PPC shares. From May 21 to June 4, the enterprise continued to sell an additional 3 million PPC shares. From June 12 to July 10, REE Energy sold an additional 3,260,000 PPC shares.

Thus, from January 19 to August 14, REE Energy has reduced its ownership in Phả Lại Thermal Power from 23.5% to 20.74% of charter capital.

Notably, in Phả Lại Thermal Power’s 2024 semi-annual audited financial statements, Deloitte Vietnam Co., Ltd. has noted that in 2023, the company was subject to administrative penalties for environmental violations, along with supplementary penalties, including a suspension of operations for 12 months from the date the Ministry of Industry and Trade, Vietnam Electricity (EVN), assigns, tenders, designates, or selects another contractor to replace the electricity source mobilized from PPC.

At the time of this report, PPC is implementing remedial measures and continuing production activities as planned for 2024. The company’s ability to continue as a going concern depends on the approval of the competent authority for the plan to remedy the environmental violations.

The auditors consider that these conditions, along with other matters described in Note 2, indicate the existence of a material uncertainty that may cast significant doubt on PPC’s ability to continue as a going concern.

In 2023, Phả Lại Thermal Power had administrative violations in the field of environmental protection, such as dust and gas emissions with parameters exceeding the technical regulations on waste at the chimney of Line I. In addition, PPC also discharged dust and gas emissions with parameters exceeding the technical regulations on waste at the chimney of Line II.

As a result, the Ministry of Public Security issued a decision to administratively sanction Phả Lại Thermal Power with a total fine of more than VND 3.92 billion and simultaneously suspend the company’s operations for a period of 12 months.

In the first half of this year, PPC recorded net revenue of more than VND 4,465 billion, up 65%, and after-tax profit of more than VND 251 billion, up nearly 25% over the same period.