Dat Xanh arbitrarily changed the capital usage plan, used the money to pay off debt.

The State Securities Commission has just signed and issued Decision No. 1375 on administrative sanctions in the securities sector against Dat Xanh Group Joint Stock Company (DXG) headquartered in Ho Chi Minh City.

The total fine that DXG must pay is up to 515 million VND. The most serious violation, which is up to 350 million VND, is the act of changing the capital usage plan and the amount of money collected from the public offering of securities.

According to the Securities Commission, on March 4, 2024, Dat Xanh used VND 36.56 billion out of the total of more than VND 1,220 billion collected from the offering to pay off loans to Ha An Real Estate Investment and Trading Joint Stock Company but without going through the general meeting of shareholders.

In addition to paying the money, DXG must also remedy the consequences by forcing the nearest general meeting of shareholders to change the purpose or plan for using the money raised from the public offering of securities according to regulations.

Another notable thing is that the penalty decision mentions a lot about Mr. Luong Tri Thin - founder of Dat Xanh - who has resigned as chairman of the board of directors and moved to chairman of the company's strategy council since July this year.

Specifically, Dat Xanh was fined 65 million VND for disclosing information that did not fully comply with the law. According to section 29 of the audited separate financial statements for the 2024 semi-annual period, DXG had a loan transaction with Mr. Luong Tri Thin (member of the Board of Directors ), worth 30 billion VND in the period from January 1, 2024 to June 30, 2024.

However, DXG has not yet presented these transactions in Appendix 2 of the corporate governance report for the first 6 months of 2024.

According to Resolution 05 dated March 21, 2024 of Ha Thuan Hung Construction - Trade - Service Company Limited, the company guarantees the loan of Ha Thuan Hung Construction - Trade - Service Company Limited (a subsidiary of DXG).

According to item 29 of the audited separate financial statements for 2023, DXG had a loan transaction with Mr. Luong Tri Thin (member of the Board of Directors ), the balance as of December 31, 2023 was 150 billion VND, but the above transactions were not presented in Appendix 2 of the 2023 corporate governance report.

The Securities Commission also stated: The prospectus for the public offering of additional shares in 2023, Mr. Luong Tri Thin is the chairman of the board of directors of the company, concurrently the chairman of the board of directors of Ihouzz Technology Joint Stock Company and the chairman of the board of directors of Tulip Real Estate Financial Services Joint Stock Company.

However, the company did not present information about Ihouzz Technology Joint Stock Company and Tulip Real Estate Financial Services Joint Stock Company, which are related persons of Mr. Luong Tri Thin, in Appendix 3 of the 2023 corporate governance report.

Much information regarding the verdicts was not released on time.

In addition, Dat Xanh Group did not disclose information required to be disclosed by law for many documents, including: Board of Directors Resolution No. 16a of 2022 approving the signing and execution of contracts, agreements, and transactions with related parties of the company;

Board of Directors Resolution No. 17b of 2023 approving the signing and execution of contracts, agreements, and transactions with the company's related parties, reporting on the use of funds from bond issuance audited for the first 6 months of 2023.

DXG also failed to disclose on time as prescribed by law on the information disclosure system of the State Securities Commission , HoSE and the company's website the following documents: Judgment No. 1589 dated June 18, 2022 of the People's Court of Binh Thanh District; Judgment No. 60 dated January 11, 2023 of the People's Court of Ho Chi Minh City; Decision No. 4 dated January 11, 2024 of the High People's Court in Ho Chi Minh City.

Corresponding enforcement decisions related to the construction contract dispute with the service provider, Construction and Materials Joint Stock Company; authorization letter to disclose information to Mr. Nguyen Hoang Duc - Deputy Head of Strategic Finance Department, Head of Corporate Governance... were also not disclosed by DXG on time.