Container shipping firm Viconship’s 2024 AGM fails to meet quorum

Vietnam Container Shipping Joint Stock Corporation (Viconship) could not hold its 2024 AGM last month after failing to meet its quorum.

Only 85 shareholders who hold nearly 49 million shares, or 36.7% of charter capital, attended the meeting, far below the prescribed level of 50%.

This was an unexpected development after the 2023 AGM saw the attendance of 54 shareholders representing 89.7 million shares or 74.04% of the total number with voting rights.

The company is yet to provide an explanation, but its failure to hold the 2024 AGM shows that Viconship’s shareholder structure has been diluted significantly in just one year, especially after it had successfully issued nearly 133.4 million shares to existing shareholders on April 19, 2024.

Before the share issuance, Viconship’s stock, VSC, gained over 21.3% from VND19,410 on September 29, 2023 to VND23,550 ($0.93) per share on March 27, 2024.

Stock liquidity also improved significantly, with millions or even tens of millions of shares changing hands in a session.

However, VSC fell into a correction period, losing 17.6% from the March 27 session to VND19,400 per share on April 19, when the company’s share offering ended.

On May 14, VSC's market price was VND20,950 ($0.82) per share, up nearly 7.4% compared to the beginning of the year.

In the first quarter of 2024, the company recorded net revenues of VND568.4 billion ($22.33 million) and after-tax profits of VND69.9 billion ($2.75 million), up 22% and 67% year-on-year.

As of March 31, 2024, VSC's total assets were valued at VND5,334 billion ($209.55 million), up 3% over the beginning of the year. Cash and cash equivalents rose 29% to VND1,027 billion ($40.35 million). Short-term receivables decreased 9% to VND421.9 billion ($16.57 million) while inventories fell slightly from VND29.1 billion to VND28.6 billion ($1.12 million).

Total liabilities stood at VND1,997 billion ($78.46 million), up 5% compared to the beginning of the year, accounting for 37% of the firm’s total capital. Outstanding financial debt rose 6% to VND1,668 billion ($65.53 million).

While the company’s revenue remained stable during the 2020-2023 period with an average annual increase of 8.92%, its after-tax profit decreased by 17.6% per year on average.

Viconship plans to hold its next AGM on May 28.