Aquatic firm sets to withdraw from two sub units

Fish is processed by workers at Hung Vuong Corporation.

Hung Vuong wants to sell its 90 per cent stake in Hung Vuong Ben Tre Seafood Processing Co Ltd, worth VND180 billion (US$7.74 million).

In addition, the firm plans to cut its ownership in An Giang Fisheries Import and Export JSC to below 50 per cent from nearly 80 per cent.

Hung Vuong holds more than 22.3 million shares in An Giang Fisheries Import and Export.

Both Hung Vuong and An Giang Fisheries Import and Export JSC are listed on the Ho Chi Minh Stock Exchange with code HVG and AGF, respectively.

Hung Vuong shares fell 4.3 per cent to close Friday at VND2,900 ($0.12) per share. Its shares have plunged total 17 per cent in the last three trading days.

Meanwhile, shares of An Giang Fisheries Import and Export JSC have soared 13 per cent in the last three days to end Friday at VND4,200 per share.

In May, Hung Vuong sold all of its 3.2 million shares in another affiliate Hung Vuong Song Doc JSC. The value and result of the deal remain unknown.

Hung Vuong has recently announced its revenue halved to VND2.88 trillion ($123.8 million) and the company recorded a loss of VND134 billion after tax for the first half of its financial year (October 1 to September 30).

The figures were big changes compared to the firm’s financial report, which had stated its revenue was VND5 trillion and post-tax profit was VND25 billion for the first half of the financial year.

Therefore, the auditor gave its qualified opinion for the company’s financial report and noted there were significant elements that could lead to the company’s inconsistent operation in the future.

Findings by the auditor also showed the company had not paid debts worth VND602 billion to the Joint Stock Commercial Bank for Foreign Trade of Vietnam (Vietcombank) as of March 31, 2019.

Selling stakes in subsidiaries and affiliates is considered a temporary move as Hung Vuong is asking its lenders to extend due dates for its debts.

The Ho Chi Minh Stock Exchange on Thursday kept Hung Vuong on the list of special warning and control as the company had suffered losses in the last two and a half years.

The decision was made on January 19, 2018 after the company had reported losses for financial years 2016-17 and 2017-18.

In addition, Hung Vuong had failed to compile financial reports for the southern stock exchange since May 28, 2018.