Aquatic firm sets to withdraw from two sub units

HÀ NỘI — Aquatic producer and exporter Hùng Vương Corporation plans to sell its stake in two smaller seafood processing firms.

Fish is processed by workers at Hùng Vương Corporation. — Photo tinnhanhchungkhoan

Hùng Vương wants to sell its 90 per cent stake in Hùng Vương Bến Tre Seafood Processing Co Ltd, worth VNĐ180 billion (US$7.74 million).

In addition, the firm plans to cut its ownership in An Giang Fisheries Import and Export JSC to below 50 per cent from nearly 80 per cent.

Hùng Vương holds more than 22.3 million shares in An Giang Fisheries Import and Export.

Both Hùng Vương and An Giang Fisheries Import and Export JSC are listed on the Hồ Chí Minh Stock Exchange with code HVG and AGF, respectively.

Hùng Vương shares fell 4.3 per cent to close Friday at VNĐ2,900 ($0.12) per share. Its shares have plunged total 17 per cent in the last three trading days.

Meanwhile, shares of An Giang Fisheries Import and Export JSC have soared 13 per cent in the last three days to end Friday at VNĐ4,200 per share.

In May, Hùng Vương sold all of its 3.2 million shares in another affiliate Hùng Vương Sông Đốc JSC. The value and result of the deal remain unknown.

Hùng Vương has recently announced its revenue halved to VNĐ2.88 trillion ($123.8 million) and the company recorded a loss of VNĐ134 billion after tax for the first half of its financial year (October 1 to September 30).

The figures were big changes compared to the firm’s financial report, which had stated its revenue was VNĐ5 trillion and post-tax profit was VNĐ25 billion for the first half of the financial year.

Therefore, the auditor gave its qualified opinion for the company’s financial report and noted there were significant elements that could lead to the company’s inconsistent operation in the future.

Findings by the auditor also showed the company had not paid debts worth VNĐ602 billion to the Joint Stock Commercial Bank for Foreign Trade of Vietnam (Vietcombank) as of March 31, 2019.

Selling stakes in subsidiaries and affiliates is considered a temporary move as Hùng Vương is asking its lenders to extend due dates for its debts.

The Hồ Chí Minh Stock Exchange on Thursday kept Hùng Vương on the list of special warning and control as the company had suffered losses in the last two and a half years.

The decision was made on January 19, 2018 after the company had reported losses for financial years 2016-17 and 2017-18.

In addition, Hùng Vương had failed to compile financial reports for the southern stock exchange since May 28, 2018.