The Watchdog Member Studying a Different Major, Cencon Vietnam, Heavily Fined.

The State Securities Commission (SSC) has issued an administrative sanction decision regarding violations in the securities and securities market field against Cencon Vietnam Joint Stock Company.

Firstly, the company was fined VND 92.5 million for failing to disclose information as required by law. Cencon Vietnam did not explain the negative profit after tax in the quarterly financial statement for Q4 2023, and failed to publish the Q1 2023 financial statement, the semi-annual 2023 corporate governance report, and Resolution No. 2712/2022 of the Board of Directors on changing the purpose of proceeds from the public offering on their website.

Additionally, the company delayed disclosing information about the profit after tax, which deviated by more than 10% from the same period of the previous year in the reviewed semi-annual 2023 financial statement.

Secondly, Cencon Vietnam was fined VND 175 million for disclosing misleading information. In the corporate governance reports for 2021, the first half of 2022, 2022, the first half of 2023, and 2023, the company stated that there were no transactions between the company and any entity in which members of the Board of Directors, Supervisory Board, Directors, or other managers were founders or members of the Board of Directors, or Directors for the past three years.

However, according to the prospectus for the additional public offering of shares dated July 16, 2021, Mr. Tran Manh Son, Chairman of the Board of Directors of the company, was the Director of Duy Hai Lao Cai Limited Liability Company from April 2020 to April 2021. On September 16, 2021, Duy Hai Lao Cai Limited Liability Company and Cencon Vietnam Joint Stock Company signed a contract for the transfer of the entire Lan Huy Hoang Hotel, Restaurant, and Tourism Project.

Furthermore, in the semi-annual 2023 and 2023 corporate governance reports, the company presented Resolution No. 1904/2023 dated April 19, 2023, on approving the production and business results for Q1 2023 and the production and business plan for Q2 2023. However, the resolution number and date were incorrect and should have been Resolution No. 1204/2023 dated April 12, 2023. Thus, the company misrepresented the resolution number and date in the 2023 corporate governance report.

Apart from the fine, Cencon Vietnam is also required to rectify the misleading information.

Thirdly, Cencon Vietnam was fined VND 125 million for failing to ensure that the members of the Supervisory Board met the standards, conditions, and legal requirements. Specifically, Ms. Tran Thi Ha, a member of the Supervisory Board, holds a Bachelor’s degree in Political Education Pedagogy and has no training in economics, finance, accounting, auditing, law, business administration, or other fields related to the company’s business activities.

In total, Cencon Vietnam was fined VND 392.5 million for these three violations.

Cencon Vietnam, established in late 2015, primarily operates in the wholesale and retail of frozen food and consumer goods, gold and jewelry trading, transportation, and accommodation-related sectors. Its head office is located in Duyen Hai Ward, Lao Cai City, Lao Cai Province. Mr. Tran Manh Son serves as the Chairman of the Board of Directors and legal representative of the company.

Regarding its business performance, according to the semi-annual 2024 financial statements, Cencon Vietnam recorded revenue of nearly VND 40 billion and a net profit of over VND 95 million, a decrease of 5% and an increase of 89%, respectively, compared to the same period last year. The company has achieved over 57% of its revenue target and nearly 14% of its profit target for the year.