The State Securities Commission (SSC) has instructed national flag carrier Vietnam Airlines to complete its accounts and information disclosure for 2022 as regulated and without delay.
The carrier had asked for a deadline extension, but the reasons cited were not justified according to Circular No. 96/2020, the SSC said in a document sent on Wednesday.
Accordingly, a public company must release its audited annual financial statement within 10 days from the date it is signed, but not more than 90 days from the end of the fiscal year. Vietnam Airlines has already missed these deadlines.
On March 29, the airline submitted an application to the SSC and the Ho Chi Minh City Stock Exchange (HoSE) asking for a postponement. However, the corporation did not specify an intended date for submission.
The carrier cited the large scale of its operations globally, with 27 affiliated units (nine domestic and 18 foreign branches) and 15 large- or medium-scale subsidiaries operating in other fields.
The airline argued that it was restructuring its business operations to overcome the impacts of the pandemic, and needed more time to verify reports and collect data to meet auditing standards.
However, the SSC did not agree, saying the reason was not a natural disaster, fire, pandemic, war or a force majeure.
In early February, the HoSE warned Vietnam Airlines of the risk of having its shares delisted if the carrier's audited 2022 consolidated financial statement recorded negative profits or equity.
According to Vietnam's Securities Law, shares in a public company should be delisted if it incurs a loss for three consecutive years, or the accumulated losses exceed the charter capital or equity according to the audited financial statement for the year.
Last June, the bourse decided to put Vietnam Airlines shares (HVN) under control due to negative equity of VND2.16 trillion ($91.74 million) in the first quarter of 2022.
Vietnam Airlines's profits after tax for the previous two years were negative.
In Vietnam Airlines's mid-2022 reviewed financial statement, Deloitte Vietnam warned that the carrier would find it difficult to sustain its operations with short-term debt exceeding short-term assets by VND36.43 trillion ($1.55 billion) and negative equity hitting VND4.9 trillion ($209 million).
The ability of Vietnam Airlines to continue operating will depend on financial support from the Government, extension of payment deadlines for bank loans, as well as payables to suppliers and lessors, the auditing firm said.
In 2022, the national airline also sought other sources of income including liquidation of aircraft, aircraft engines, and financial investments.
On the HoSE, the carrier’s HVN shares were priced at VND13,150 ($0.56) at Wednesday's close.