Rang Dong Plastic stops operating

Rang Dong Holding Joint Stock Company (HOSE: RDP) has just sent a document to the Ho Chi Minh City Stock Exchange (HOSE) explaining the delay in submitting the 2024 corporate governance report and the fourth quarter financial report of 2024.

According to RDP, from the second half of 2024 until now, Rang Dong Holding's financial situation has encountered many difficulties, leading to its being moved to the bad debt group in the national credit system. This has led to difficulties in the operations of its subsidiaries/member companies.

Currently, the subsidiaries/member companies and the Parent Company (RDP) are all temporarily suspended, most of the staff have quit their jobs, resulting in the inability to provide data to synthesize and prepare financial reports and corporate governance reports on time as prescribed by law.

In addition, the auditing company that signed the contract to audit the 2024 financial statements (Nhan Tam Viet Auditing Company Limited) has officially announced the termination of the auditing service contract and will not continue to audit the 2024 financial statements for RDP.

On February 24, 2025, RDP received the resignation of all 5 members of the Board of Directors. The new Chief Accountant, who took over in December 2024, is also facing many difficulties in monitoring and synthesizing the company's financial data.

From the above reasons, RDP said that it is impossible to overcome the delay in publishing reports according to regulations.

Rang Dong Holding, headquartered in District 11, Ho Chi Minh City, is one of the first and leading plastic enterprises in the Vietnamese plastic manufacturing industry, with the product "Rang Dong Thermos" once famous throughout the country.

This company was established in the 1960s and was equitized in 2005. On September 22, 2009, Rang Dong Holding officially listed RDP shares on the HOSE.

Rang Dong's "long slide" originated from the lawsuit against Sojitz Planet Corporation (under Sojitz Group - Japan) - a strategic shareholder of RDP since 2017. Sojitz signed a contract to buy 5 million common shares at Rang Dong Long An Plastic Company from RDP with a purchase price of more than 174 billion VND.

However, the two sides later had a dispute. By 2023, RDP lost the lawsuit and had to pay this partner about 178 billion VND, excluding interest. The company's operations then faced many difficulties.

On the stock exchange, RDP shares were suspended from trading from November 28, 2024, after being restricted from trading from October 24, 2024, due to violating information disclosure obligations. If the violation continues, RDP may be delisted. In the most recent trading session (November 28, 2024), RDP's market price was only VND 1,310/share, with a capitalization of VND 64 billion.

At the end of January 2025, RDP received a notice from the Ho Chi Minh City People's Court regarding the acceptance of the petition to open bankruptcy proceedings from its subsidiary Rang Dong Films (RDP owns 97.7%). The reason was that RDP was insolvent. The court requested the company to explain the reasons, declare assets, list of creditors and debtors.

Improve business investment environment

The difficulties of Rang Dong Holding, once a leading enterprise in the industry, stem from many different causes, possibly due to ineffective strategy and management; dispersion in production investment activities; large debts; market difficulties... However, this is also a "warning" for current enterprises in the context of many market difficulties and challenges.

Source: https://doanhnghiepvn.vn/doanh-nhan/bai-hoc-tu-su-sup-do-cua-mot-doanh-nghiep-bieu-tuong-nganh-nhua/20250303100256398