Removal of trading restrictions after full disclosure of financial statements
The decision to lift trading restrictions on SGS took effect on September 11, 2024, following the company’s submission of its audited 2023 financial statements and 2023 semi-annual reviewed financial statements.
On October 25, 2023, SGS was officially placed under trading restrictions by HNX due to a delay in submitting its semi-annual reviewed financial statements for 2023 beyond the 45-day deadline for information disclosure as stipulated by regulations. On May 23, 2024, HNX decided to maintain the trading restrictions on SGS. At that time, SGS had not only failed to rectify the previous issue but had also delayed the submission of its audited 2023 financial statements beyond the 45-day deadline for information disclosure as required by regulations.
Source: SGS
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According to SGS’s explanation, on June 29, 2023, the company held its annual general meeting of shareholders (AGM), which included an agenda item related to the selection of the auditing firm for 2023. However, this item was not approved. This matter was resubmitted for approval at a later date but did not receive the required majority vote as per the company’s charter during a written shareholder vote on August 18 of the same year.
On May 15, 2024, the AGM finally agreed on the selection of the auditing firm for the semi-annual and annual financial statements for 2023. A few days later, SGS announced the signing of an auditing contract for the review of its semi-annual financial statements for 2023 and the audit of its annual financial statements for 2023. They also stated that these reports would be published before June 30, but in reality, they were only officially released at the end of August.
Removal of warning status after a tumultuous AGM
On July 30, 2024, HNX removed SGS from its warning list as the company had successfully held its 2024 AGM. Thus, with its efforts over the past year, SGS has officially escaped the penalties regarding its stock status imposed by HNX.
Looking back at the AGM held on July 10, several heated discussions took place, mainly revolving around the meeting regulations, the delayed disclosure of the audited financial statements for 2022 and 2023, the dismissal and election of members of the board of directors, and other matters. Most of the proposed resolutions were not passed, and the AGM ended without adopting any resolutions.
SGS’s AGM lasted from morning to afternoon, with many shareholders leaving early – Photo: Huy Khai
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Another notable development was the revelation by the representative of SGS’s auditing firm (AASCS – Southern Financial Consulting, Accounting, and Auditing Services Company Limited) that the auditors had issued a qualified opinion on SGS’s financial statements.
SGS’s AGM: Representative of major shareholder GLS leaves early, no resolutions passed
In the recently published audited financial statements for 2023, AASCS clearly stated the basis for their qualified opinion, which pertained to the utilization of the wage fund balance in 2024 and the temporary allocation of bonus and welfare funds from undistributed profits in 2023.
Source: SGS’s Audited Financial Statements for 2023
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AASCS also pointed out other issues that occurred in 2022 and 2023, related to the project for the construction of an empty container yard in Thu Duc City, the utilization of the wage fund balance, and the temporary allocation of bonus and welfare funds from undistributed profits.
Source: SGS’s Audited Financial Statements for 2023
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In terms of financial performance, SGS’s net profit for 2023 reached nearly VND 50 billion, an 11% increase compared to the previous year, driven by the growth of warehousing activities and financial operations.
In the first six months of 2024, SGS recorded a net profit of nearly VND 15 billion, a 41% decrease compared to the same period last year, due to a decline in its agency, freight forwarding, warehousing, and yard operations. Additionally, SGS’s other income also decreased.
| SGS’s net profit for the first six months of 2024 significantly decreased |
