Trading restrictions on VNG shares to be lifted

The Hanoi Stock Exchange (HNX) has announced it will remove trading restrictions on VNG shares of Vietnamese tech giant VNG Corporation from June 5, 2023.

The company has submitted its delayed audited financial statement for 2022 to the HNX. Previously, the bourse had placed VNZ shares under trading restrictions from May 25 due to late submission of its audited financial statement by more than 45 days. Accordingly, VNZ shares were only allowed to trade on Fridays.

VNG Corporation posted a loss of VND1.53 trillion ($65.4 million) in 2022, up VND219 billion ($9.33 million) compared to the figure reported prior to auditing.

VNG, registered on the unlisted public company market UPCoM as VNZ, explained that the loss was due to the fact that it recorded additional expenses related to taxes, intangible fixed assets, and provisions for financial investments.

It is the fourth largest loss reported by listed companies in 2022, after Vietnam Airlines, Vietjet, and HAGL Agrico.

The corporation's net revenue reached VND7.8 trillion ($332.2 million) in 2022, up 2% year-on-year.

VNG reported a loss of VND90 billion ($3.84 million) in the first quarter of this year, while in the same period last year it lost VND130 billion ($5.54 million).

VNG's net revenue reached VND1.85 trillion ($78.93 million) in the quarter, up 11% year-on-year, according to the company's consolidated Q1 financial statement.

As of March 31, 2023, VNG's total assets had stood at VND8.98 trillion ($382.48 million), up 0.8% compared to the beginning of the year, of which liabilities increased by 4% to VND3.95 trillion ($168.46 million).

Founded in 2004 by Vietnamese businessman Le Hong Minh, 45, VNG is a leading technology services provider in Vietnam. It was officially valued at $1 billion in the World Startup Report, becoming the first unicorn in Vietnam.

The corporation in January named Vo Sy Nhan its new chairman, replacing Le Hong Minh. Minh remains as general director.

According to its information disclosure, as of November 28, 2022, VNG had three major shareholders: VNG Limited, headquartered in the Cayman Islands, holding 49% of charter capital or 61.1% of outstanding shares; BigV Technology Corporation with a 4.6% stake and accounting for 5.7% of outstanding shares; and Le Hong Minh, who owns a 9.8% stake and 12.3% of outstanding shares.

Explaining the delay, VNG said it had been finalizing its financial statements in accordance with both the Vietnamese Accounting Standards (VAS) and the International Financial Reporting Standards (IFRS).

The company currently operates 33 subsidiaries and seven associate firms. Of these, 18 subsidiaries and one social fund operate in Vietnam and 14 others are located overseas, with different accounting and legal regulations.

VNG said it was taking time to check, compare and confirm the information, and ensure data in the financial statements was consistent and met accounting standards both at home and abroad.

On the UpCOM, VNZ shares closed Friday's session at VND776,000 ($33.05).