VNG shares hit with trade restrictions over late financial statement submission

The Hanoi Stock Exchange (HNX) has placed VNZ shares of Vietnamese tech giant VNG Corporation under trading restrictions from Thursday due to late submission of its 2022 audited financial statement by more than 45 days.

Accordingly, VNZ shares will only be traded every Friday.

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

The company currently operates not only in Vietnam, with 33 subsidiaries and seven associate companies. Of these, 18 subsidiaries and one social fund operate in Vietnam and 14 others are located overseas, with different accounting and legal regulations.

Therefore, VNG said it takes a lot of time to check, compare and confirm the information, ensure data of the financial statements are consistent and meet accounting standards both at home and abroad.

Previously, VNZ had sent an official letter to the State Securities Commission of Vietnam and HNX, asking for the release of financial statements to be delayed. According to VNG, this extension comes from objective and necessary reasons to ensure the legitimate rights and interests of shareholders and investors.

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). Its net revenue reached VND1.85 trillion ($78.93 million), 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 now, 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 of VNG.

According to its information disclosure, by November 28, 2022, VNG had three major shareholders: VNG Limited, headquartered in the Cayman Islands, holding 49% of charter capital; BigV Technology Corporation with a 4.6% stake; and Le Hong Minh, with a 9.8% stake.

On the unlisted public company market UpCOM, VNZ shares closed Thursday's session at VND759,000 ($32) per unit.