Hanoi Stock Exchange (HNX) has placed TAR shares of Trung An High-Tech Agriculture JSC (HNX: TAR), one of Vietnam's major rice exporters, in its restricted trading bracket.
Starting October 30, TAR shares will only be traded on Fridays.
The trading restriction has followed Trung An’s delay of more than 45 days in releasing its separate and consolidated semi-annual financial statements for 2023.
Faced with trading limitations, TAR stock fell to its floor price on October 27 at VND9,900 ($0.4) per share even as the market as a whole recovered. The stock has lost 56% of its value since the end of August.
HNX had earlier changed the status of TAR shares from “warning” to “control” and asked the firm for explanations and corrective action.
Trung An said that the reason for the delay was a “restructuring of senior personnel” and the re-arrangement of production and business activities to ensure timely delivery of export and import orders. Its audit unit needed more time to conduct reviews and collect and evaluate additional relevant information, the company said.
On August 17, the personnel restructuring was announced with Le Thi Tuyet stepping down as chairwoman of the board of directors while remain a board member. Pham Thai Binh (Tuyet's husband), took over as chairman while stepping down as general director and becoming a deputy general director. The latest appointments are for five years, from 2023 to 2028. Nguyen Le Bao Trang, a board member, was elected general director on August 17 pending a new decision.
After the changes, the chairman's family continues to hold the majority of board seats (three of five). Apart from Binh and his wife Tuyet, their daughter Pham Le Khanh Han is also a board member.
Closing the Friday session, the stock fell 10% from the previous day to VND9,900 ($0.4) per share.