VNG (VNZ), owned by Mr. Le Hong Minh, incurred further losses of 489 billion VND and was fined by the State Securities Commission.

The business operations of the affiliated company have reduced losses compared to the same period last year, from a loss of 205.6 billion VND in Q2/2023 to 17.9 billion VND. Selling expenses remain at 554.9 billion VND. Business management expenses have been reduced to only 332 billion VND.

As a result, VNG recorded a net loss after tax of VND 489 billion in Q2/2024. The net loss attributable to shareholders of the parent company was VND 462.2 billion. Compared to the same period last year, the loss decreased but not significantly.

VNG's cumulative revenue for the first six months of the year reached VND 4,313.7 billion, an increase of 30%. The total cumulative loss for the first half of the year was VND 520.4 billion, a decrease of 56.8% compared to the same period last year.

At its 2024 annual general meeting, VNG set a revenue target of VND 11,000 billion, a 46% increase compared to 2023, along with a net profit of VND 195 billion. However, after the first six months of the year, a loss of VND 520 billion has further distanced VNG from its set targets.

Having incurred business losses, VNG has just been fined again by the State Securities Commission.

With unfavorable business performance and losses amounting to hundreds of billions of dong, VNG was also recently fined 157.5 million dong by the State Securities Commission (SSC) for administrative violations in the securities and stock market sector.

Specifically, the State Securities Commission (UBCKNN) has just issued a decision imposing administrative penalties in the field of securities and securities market on VNG Corporation. The company was fined 92.5 million VND for failing to disclose information as required by regulations.

Information that VNG has not disclosed in accordance with regulations includes: Board of Directors Resolution No. 10/2022/NQ-HĐQT dated September 8, 2022, approving the pledging of company assets to secure the debt obligations of Big V Technology Joint Stock Company (a major shareholder and related party); audited separate and consolidated financial statements for 2023; and the 2023 Annual Report.

The above documents have not been published by VNG on the Securities and Exchange Commission's Information Disclosure System, the Hanoi Stock Exchange's website, or the Hanoi Stock Exchange's website.

In addition, VNG was fined 65 million VND for failing to disclose information about transactions with its major shareholder, Big V Technology. In this transaction, VNG used a deposit account opened at Citybank to secure a loan for Big V Technology at Citybank's Singapore branch. The audited financial statements for 2022 and 2023 also did not fully detail this transaction.

VNZ shares have fallen by more than half their market value.

Once the most expensive stock on the Vietnamese stock market, VNZ shares were at one point traded at 1,249,000 VND per share. However, the trading volume per session was not high, ranging from only a few thousand to just over ten thousand shares per session.

Over the past year, consecutive losses have dragged down VNZ's share price.

From the beginning of 2022 to the present, VNG has experienced 10 business quarters. Of these, 9 quarters were loss-making, with the company only reporting a profit in Q2/2023. These losses ranged from tens to hundreds of billions of VND.

In the trading session on August 6, 2024, VNZ shares were trading at only 526,500 VND per share, a decrease of 57.8% compared to the peak reached one year ago.