Vietnam’s leading developer Becamex IDC fined for providing inaccurate information

Becamex IDC Corp, a leading eco-industrial and urban real estate developer in Vietnam, has been fined VND150 billion ($5.88 million) for providing inaccurate information, according to a State Securities Commission (SSC) decision.

On December 27, the SSC imposed the fine after the company, listed on the Ho Chi Minh Stock Exchange as BCM, provided "inconsistent reports" regarding the use of funds raised from the issuance of its BCMH2328001 bonds worth over VND154 billion ($6 million).

In a document dated October 28, 2024, the company stated that over VND6.5 billion was used for the declared purpose of the bond issuance, while nearly VND148 billion was deposited at banks.

However, in a report on the use of proceeds from outstanding bonds issued from January 1, 2024 to June 30, 2024, it noted that the full amount of over VND154 billion was temporarily allocated to other projects.

The SSC has ordered Becamex IDC to either remove or correct the information.

In the third quarter of 2024, Becamex IDC recorded a net revenue of VND1.23 trillion ($48.23 million), showing a slight increase compared to the same period last year. Its after-tax profit hit VND363 billion ($14.23 million), up 69% year-on-year.

For the first nine months, the company’s cumulative net revenue amounted to VND3.2 trillion ($125.5 million), up 6% year-on-year, while its profit after tax stood at VND769 billion ($30.15 million), soaring 191%.

As of September 30, Becamex IDC's total assets reached VND54.44 trillion ($2.13 billion), a modest increase since the beginning of the year. Of which, inventory amounted to VND20.9 trillion, or 38.3% of total assets. Its liabilities hit VND34.37 trillion ($1.35 billion), while equity stood at VND20.07 trillion ($789.37 million).

In the stock market, BCM closed Monday at VND69,800 ($2.74) per share.