The Ho Chi Minh City Stock Exchange (HoSE) has just made a decision to transfer more than 2.2 billion HVN shares of Vietnam Airlines from the status of warning to supervision from May 12 because the airline is late to submit its financial audit statements for 2022 by more than 30 days compared to the prescribed time limit.
Previously, HoSE issued a warning to Vietnam Airlines on April 25 for the failure to submit the report by the due date since the national carrier had been reminded many times.
According to Vietnam Airlines, it made a written explanation about the postponement of the disclosure of its financial statement information for 2022 on March 29, 2023. The airline asked for an extension of the disclosure of this year's financial statements as it was conducting comprehensive re-structure, arranging personnel and stabilizing production and business activities.
In addition, the audit unit needs more time to collect, compare and comprehensively evaluate relevant information to be able to complete the audit of the financial statements.
Vietnam Airlines is committed to the announcement of the financial statements for 2022 immediately upon completion.
However, in its document, the State Securities Commission has disagreed with Vietnam Airlines' proposal on the postponement of the financial audit statements for 2022 because the airline is not eligible for suspension as per the regulation.
This is not the first time Vietnam Airlines has been slow to disclose its financial audit statements.
According to the independent financial statement of the fourth quarter of 2022, Vietnam Airlines recorded a negative profit after tax of the parent company's shareholders of VND10,452.6 billion. By the end of December 31, 2022, the accumulated profit of the parent company's shareholders was negative VND34,199.5 billion plus negative equity of VND10,199.2 billion.
If the financial audit statements show that Vietnam Airlines is still loss-making in 2022 and its equity continues to be negative, HVN shares may be forced to be delisted.
On the stock market, at the end of last week's trading session on May 5, HVN shares dropped 1.55 percent to VND12,700 a share.