Kim Long Securities plans business shutdown

Monday, Apr 11, 2016 14:34

Investors at Kim Long Securities Corp (KLS). The company has announced it may shut down business after the coming annual shareholder meeting is held. — Photo

HA NOI (Biz Hub) — Kim Long Securities Corp (KLS) will propose shareholders shut down the company's business, the company has recently announced.

KLS will also propose the shareholders allow the company to be delisted from the Ha Noi Stock Exchange after it is shut down.

The company has to be shut down due to the nature of the small-scale stock market, which cannot allow a large number of brokerage firms to participate, and low business efficiency last year, Ha Hoai Nam, the company's chairman, said.

In addition, the company is unable to make large, long-term investments in other businesses as it has encountered strict rules from government agencies, Nam said.

In the first quarter of 2016, KLS recorded revenue of VND38.4 billion (US$1.7 million), an increase of one-third from the same period last year.

The company also reported a pre-tax profit of VND4 billion, an improvement from the loss of VND39 billion in last year's first quarter.

However, the company still suffered an accumulated loss of VND62.3 billion over a year.

At the end of the first quarter, KLS had VND627 billion in cash and total assets worth VND1.76 trillion. The company also had chartered capital of VND2.2 trillion and equity of VND2.27 trillion. — VNS

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