Furniture firm gets delisting warning

Wednesday, Feb 08, 2017 09:00

Inside TTFC’s factory in Binh Duong province. The company faces the risk of being delisted by the HOSE after failing to pay back investors in 2016. — Photo

The Ho Chi Minh Stock Exchange (HOSE) has sent a delisting warning to Truong Thanh Furniture Corp. (TTFC) after its losses surpassed its charter capital.

The TTFC’s revenue report for the fourth quarter of 2016 says the post-tax income for stockholders was minus VND145.7 billion (US$6.5 million), with a yearly accumulated loss for 2016 of VND1.62 trillion ($72.9 billion) on December 31, 2016.

The company’s actual chartered capital is just VND1.44 trillion ($64.8 million).

The company’s stock, coded TTF, had been trading under special supervision after its financial report on 2016’s second quarter documented a large amount of loss and an allegedly retroactive adjustment that seriously impacted its business and financial situation. The HOSE had to step in and act on behalf on investors.

As such, if the final comprehensive financial report for 2016 from TTFC lists accumulated losses surpassing its chartered capital, HOSE would commence procedures to delist TTF stock from the exchange.

However, after two consecutive drops on the exchange, TTF had successfully swum upstream during Tuesday. With a rise of 6.8 per cent, TTF stock was standing at a ceiling price of VND5,000 ($0.22) per share, with successful transactions of over 1.2 million units and a surplus of nearly 70,000.

The company has had to take out a series of loans to make up for losses in 2016, mostly short term financial ones amounting to VND2.6 trillion ($117.1 million) and long term ones worth VND30 billion ($1.35 million).

According to the company, these loans have served to increase working capital needed for production.

The company’s largest debtor so far is the Viet A Bank with VND653 billion outstanding ($29.4 million), followed by Dong A Bank with VND124 billion ($5.58 million). — VNS

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