The Hanoi Stock Exchange (HNX) has announced the mandatory delisting of all 18.87 million PCG shares of Urban Gas Development Investment Joint Stock Company (PVGas City). This decision was made due to the auditing firm’s refusal to provide an opinion on the company’s 2024 financial statements, which falls under the delisting regulations. The delisting will take effect on June 27, with the last trading session on HNX taking place on June 26.
Prior to this, HNX had issued a notice considering the delisting of PCG shares from May 12. In their explanation to the Exchange, PVGas City attributed the refusal of an opinion on their consolidated financial statements for 2024 to a series of significant issues in accounting and financial management.
The independent auditing firm, VACO Auditing Company, refused to provide an opinion as they were unable to perform necessary audit procedures, including not being involved in the inventory and fixed asset inspection as of December 31, 2024, and the lack of appropriate alternative procedures.
PCG also faces serious internal disputes between shareholders and management, frequent changes in legal representatives, and a series of abnormal transactions involving the former director, Zhu ZhiLin, who was dismissed due to multiple violations.
Additionally, the company has engaged in numerous related-party transactions, including unsecured lending, overdue payments, and a lack of assessment of recoverability. Some transactions were considered by the auditors to lack a reasonable basis.
PVGas City also failed to provide sufficient data to determine the realizable net value of inventories, resulting in the lack of assurance for the reasonableness of provision establishment.
PCG has stated that they are implementing remedial measures, including conducting a year-end 2025 asset inspection with the participation of auditors, early audit coordination, resolving internal disputes, and clarifying related-party transactions.
Accumulated losses exceed VND 59 billion, and the share price hits an all-time low.
On the stock market, PCG shares are currently traded only on Fridays due to warnings, controls, and trading restrictions. In the last three weeks, the share price has continuously hit the floor on trading days, falling to VND 2,200 per share – an all-time low since listing. As of 2 p.m. on May 30, nearly 110,000 shares were on the sell side. In the past quarter, the share price has dropped by 29%, and in one year, it has lost 67%, with an average daily trading volume of less than 10,000 shares.
PCG share price movement on the stock exchange – Source: VietstockFinance
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PCG was listed on the exchange in late 2010 and reached a peak of nearly VND 24,000 per share in August 2018. However, since the beginning of 2020, the share price has plummeted to below VND 5,000 per share and has remained at this low level until now. Compared to its historical peak, PCG’s share price has evaporated by more than 90%.
The share price movement reflects the prolonged dismal business performance of PCG. The company incurred a loss of nearly VND 8 billion in 2024, the highest since 2019, marking the third consecutive year of losses. In the first quarter of 2025, the company continued to lose VND 544 million, bringing the total accumulated loss as of the end of March to over VND 59 billion.
| PVGas City’s Business Results for 2018-2024 |
The enterprise, which once had capital contributions from Vietnam National Gas Corporation (PV GAS) and China’s ENN Group, operates in the liquefied petroleum gas (LPG) field. However, following the divestment of major shareholders since 2017, PVGas City has gradually weakened and is currently in a state of crisis.
By Thế Mạnh – 2:19 PM, May 30, 2025
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