The Ho Chi Minh Stock Exchange in Vietnam has decided to delist shares of Hung Vuong Joint Stock Corp., which used to be a top pangasius exporter in Vietnam.
In an announcement released on 29 July, the bourse said Hung Vuong has “seriously violated the information disclosure regulation.” Therefore, the compulsory delisting of more than 227 million shares of Hung Vuong, effective 5 August, is necessary to protect interest of stakeholders.
The company’s violations mean delays in account filing. In May this year, the trading of Hung Vuong shares was already suspended as the company failed to submit its first-quarter financial statements.
In June, Hung Vuong attributed the delays in account filing to the impacts from salt intrusion in Mekong Delta and the economic fallout from the COVID-19 pandemic on its business operations.
In February, shares of another pangasius firm, Agifish – which was then majority owned by Hung Vuong – were also delisted due to delays in filing accounts for three years.
On 9 January, Hung Vuong signed a strategic cooperation agreement with local automotive manufacturer Thaco Group to help it address its financial difficulties.
Hung Vuong Chairman Duong Ngoc Minh said at that time that with the help of Thadi's investment, his company plans to export 100,000 metric tons (MT) of pangasius this year – amounting to USD 250 million (EUR 212.6 million) of revenue in 2020. Hung Vuong will also expand into shrimp production with the opening of 500 hectares of shrimp farming area in the Mekong Delta province of Ben Tre this year.
Previously dubbed the “king of pangasius," Hung Vuong was the largest pangasius company in Vietnam in 2008 and 2009. Its business performance improved through 2014 before declining in the following years. Mounting financial pressure on the firm forced it to sell many of its assets, including stakes in other seafood firms and non-core businesses.
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