On August 9, the Ho Chi Minh City Stock Exchange (HoSE) announced its decision to delist 347.2 million HBC shares of Hoa Binh Construction Group Corporation, effective from September 6.

The reason for delisting is that Hoa Binh Construction has accumulated losses exceeding its actual contributed charter capital, based on the audited financial statements for 2023.

This is a case of securities being compulsorily delisted according to the provisions of Point e, Clause 1, Article 120 of Decree 155/2020/ND-CP issued on December 31, 2020.

Previously, upon receiving the delisting notice from HoSE, Hoa Binh Construction sent a reply to the management agency. Chairman Le Viet Hai said that Decree 155 does not provide detailed regulations on considering the accumulated loss conditions on the consolidated audited financial statements or on the separate audited financial statements.

The total accumulated loss of Hoa Binh Construction on the separate audited financial statements has not exceeded the company's charter capital, so it is not subject to delisting according to the decree.

Hoa Binh Construction said that its charter capital is VND 2,741 billion, while its after-tax profit in the 2023 separate audited financial report is negative VND 2,401 billion and in the 2023 consolidated audited financial report is negative VND 3,240 billion.

On the same day, HoSE also decided to delist 1.1 billion HNG shares of Hoang Anh Gia Lai Agriculture Joint Stock Company (HAGL Agrico) from September 6, the last trading day is September 5.

The reason why the shares of the company owned by billionaire Tran Ba ​​Duong were delisted was because HAGL Agrico had production and business losses for 3 consecutive years (2021, 2022 and 2023).

At the 2024 Annual General Meeting of Shareholders of HAGL Agrico on May 4, Chairman of the Board of Directors Tran Ba ​​Duong affirmed that if HNG shares are delisted, they will be transferred to trading on the UPCoM floor and promised to be as transparent in information for 33,000 shareholders as on the HoSE floor.

It is known that both of these businesses have planned to list their shares on UPCoM if they are delisted from HoSE.

On the stock market, both HBC and HNG stocks fell sharply after being at risk of being delisted. As of the end of the session on August 9, HBC shares fell 30.3% after 2 weeks, while HNG shares fell 25% in the period from July 11 to August 5.

HNG shares of billionaire Tran Ba ​​Duong were delisted. After 3 consecutive years of losses, shares of the agricultural enterprise chaired by billionaire Tran Ba ​​Duong were forced to be delisted from the stock exchange.