Ho Chi Minh City Stock Exchange (HOSE) has just notified Dong A Plastics Group Joint Stock Company (stock code: DAG) that DAG shares are subject to trading suspension.

Specifically, DAG shares are currently subject to trading restrictions under Decision No. 262 dated May 17, 2024, because the listed organization was 45 days late in submitting its audited financial statements for 2023, compared to the prescribed deadline.

On August 2, HOSE sent a document reminding the company to delay announcing information about events affecting production and business activities.

Pursuant to regulations, securities trading is suspended when one of the following cases occurs: the listed organization continues to violate regulations on information disclosure on the stock market after being placed on restricted trading list.

Therefore, HOSE will transfer DAG shares to the trading suspension list.

Previously, in an explanatory document sent to HOSE on July 31 regarding the special status of DAG shares, Dong A Plastics said it was working with UHY Auditing and Consulting Company Limited to complete the necessary accounting data for the 2023 audited financial statements. However, due to the large volume of work and the need to ensure high accuracy, the company needs more time to unify the data with the auditor.

In addition, Dong A Plastics also needs more time to complete its personnel, search for suitable candidates for the Board of Directors and Board of Supervisors for the 2020-2025 term to meet the company's governance situation. The company is also in the process of restructuring orientation.

On July 31, 2024, Dong A Plastics held the 2024 Annual General Meeting of Shareholders.

Regarding business performance, in the first half of 2024, the company's net revenue was only VND 55.3 billion, 22 times lower than at the beginning of 2024.

After deducting expenses, Dong A Plastic's after-tax profit was negative 66.6 billion VND, while at the beginning of the year it was negative 606 billion VND due to operating below cost price. Since the first quarter of 2023, Dong A Plastic's profit has been negative tens of billions of VND.

As of the end of June 2024, equity was VND 27.2 billion, down nearly 3 times compared to the beginning of 2024. Meanwhile, liabilities increased slightly to VND 1,367 billion, 50 times higher than capital. This shows that the finances of this enterprise are very weak.

On the stock market, DAG shares are on warning status and are only traded in the afternoon session. Currently, this stock is at 1,670 VND/share, down 6.18% compared to the reference price and down more than 47% compared to the beginning of 2024.