The State Securities Commission of Việt Nam (SSC) issued a decision to fine the Saigon Alcohol Beer and Beverages Corporation (Sabeco) for alleged regulatory malpractice on the stock market.
|Inside Sabeco’s factory in HCM City. The company is facing a US$4000 fine for failure to submit financial information to the SSC and its stock holders-Photo baodaklak.vn
According to the decision, Sabeco will be fined VNĐ100 million (US$4,390) for not publishing company information in compliance with the laws on their websites, such as the company’s 2014 and 2015 managerial reports, annual reports or the company’s charters.
In addition to their lack of publicly accessible information, Sabeco also failed to publish on the SSC’s own system the required documents, such as audited financial reports for 2014 and 2015, financial reports for the third and fourth quarter of 2014 and for all four quarters of 2015, as well as decrees, memoranda and documents from their annual shareholders meeting in 2015, and managerial reports for 2014 and 2015.
Previously, Sabeco announced their report for the third quarter of 2015, detailing their total turnover of over VNĐ7 trillion ($307.4 million) and net profit of VNĐ1.272 trillion ($55.8 million). The total revenues for the first 9 months of 2016 was VNĐ21.822 trillion ($958.3million), along with after-tax profit of VNĐ3.2 trillion.
Sabeco filed a listing application on the HCM Stock Exchange in early November 2016, eight years after its initial public offering in January 2008. With a total listing of 641 million shares, the company’s market value is estimated at VNĐ70-80 trillion ($3-3.6 billion).
A major part of Sabeco’s income lies in the company’s beer sales, which accounted for VNĐ18.821 trillion ($826.57 million) in revenues in 2016, besides its earnings from packaging, alcohol and soft drinks.
The company has also earned up to VNĐ344 billion ($15.1 million) in bank deposit yields, as of September 30, 2016.