On October 11th, the Government Inspectorate announced the inspection results regarding the conversion of land use purposes from production and business to land trading and construction of housing by state-owned enterprises and equitized enterprises during the 2011-2019 period. The inspection concluded that several violations were found in relation to the 23,380sqm land lot at 275 Nguyen Trai Street, Thanh Xuan District, Hanoi.
Following the above conclusion, HoSE received a document from Hoang Huy Financial Services Investment JSC (parent company of the enterprise implementing the project located on the aforementioned land lot) to clarify some information. TCH stated that the Government Inspectorate’s Conclusion mentioned: The People’s Committee revoked 23,380sqm of production land from Joint Stock Company of Precision Mechanics No. 1, and assigned it to Hung Viet Commercial Joint Stock Company “in the form of land allocation with land use levy to implement the housing project” .
Since its establishment, Hung Viet Commercial Joint Stock Company has been implementing the project as decided by the Hanoi People’s Committee. Hung Viet has fulfilled its obligation to pay 100% of the land use levy according to the decisions issued by state agencies regarding this project. 
The implementation of the 275 Nguyen Trai project by Hung Viet has been completed. The construction process was carried out with proper building permits and approvals from managing agencies. The buildings have been constructed and accepted by state agencies for use. Currently, 100% of customers have been granted certificates of land use rights and ownership of assets attached to the land, and they are living stably in the project.
Overview of the 275 Nguyen Trai project.
TCH also added that the transfer of 3.2 million shares of Joint Stock Company of Precision Mechanics No. 1 in Hung Viet Commercial Joint Stock Company was decided by the Board of Directors of Joint Stock Company of Precision Mechanics No. 1.
Hoang Huy Financial Services Investment JSC, as the transferee, has fully fulfilled its obligations according to the transfer agreement. Accordingly, the transfer price was based on the par value of the shares at the time of transfer. This transaction was completed in 2011.
Regarding the fulfillment of additional financial obligations for the N01 pedestal area of the project, TCH commits to pay 100% of the additional financial obligations immediately upon the issuance of a decision by state agencies determining the financial obligations to be paid.
Concerning the revocation of more than 3,500sqm (NO2 land lot) from the project, TCH stated that this land lot was assigned to Hung Viet as part of Hanoi city’s 20% land fund for building houses to sell to local officials and employees, and it falls under the approval authority of the Government. The current status of the NO2 land lot is a cleared site, and no construction has taken place since the land was assigned. Therefore, the revocation of this land lot from the project will be executed upon an official decision, and no additional financial obligations will arise for TCH.
Land lot N02 of the 275 Nguyen Trai project.
TCH stated that the company is related to the inspected entity mentioned in the conclusion of the Government Inspectorate. The enterprise considered this as a regular inspection activity by the state. TCH has always fulfilled its obligations to related parties and the state.
However, since October 11th, there has been a lot of unofficial information on social media intentionally distorting the nature of the information. Some individuals even fabricated and exaggerated the scale and impact, causing confusion among shareholders and investors. TCH affirms that its operations are going as usual, and the company is fully fulfilling its financial obligations.
TCH informed that investors need to distinguish accurately between the 275 Nguyen Trai project, which is among the 5 projects in Category 3.2 – Section C, where information and documents are transferred, and projects in Category 3.1 – Section C of the conclusion of the Government Inspectorate, which requires the transfer of dossiers and documents for handling. 
Therefore, the company requested investors to refer to official information from TCH and only refer to additional information from reliable and verified sources.
