Why was AAV stock subject to compulsory delisting?

Specifically, according to HNX’s decision, nearly 69 million AAV shares will be officially delisted from May 15, 2026. The last trading day on HNX will be May 14. The total par value of the delisted shares is nearly VND 690 billion.

The reason for delisting, as stated by HNX, is that the company’s business performance—measured by the after-tax profit of the parent company based on audited consolidated financial statements—recorded losses for the past three consecutive years (2023, 2024, 2025). This falls under mandatory delisting provisions stipulated in Clause 1, Article 120 of Decree No. 155/2020/ND-CP, as amended by Decree No. 245/2025/ND-CP.

In a prior explanation submitted to HNX regarding the potential delisting, the company’s management attributed the three-year losses (over VND 17 billion in 2023, more than VND 15.7 billion in 2024, and nearly VND 21 billion in 2025) mainly to objective and temporary factors:

First, unfavorable developments in the real estate market. The real estate and financial-credit markets faced significant challenges, with declining liquidity, directly affecting sales progress and revenue recognition.

Second, project implementation delays. As the company’s core business is real estate, several key projects were delayed due to legal bottlenecks and market conditions, making them ineligible for revenue recognition under accounting standards. In 2025, the company had to make provisions for late land-use fee payments related to projects in Chu Van An and Tran Hung Dao wards.

Third, rising financial costs. In the context of higher interest rates and capital pressure, borrowing costs increased significantly, negatively impacting overall business results.

Fourth, increased operating expenses, including administrative costs, maintenance expenses, and other provisions required by accounting regulations.

Regarding current operations, despite cumulative losses over three years, the company’s leadership stated that business activities continue as normal without disruption. Liquidity and solvency are reportedly ensured, with no signs of insolvency or bankruptcy. Key projects are still under development, with legal procedures gradually being completed and expected to generate revenue starting from 2026.

The company has also outlined recovery measures and plans to improve business performance, including restructuring its investment portfolio, accelerating legal procedures and construction progress, tightening cost control, restructuring capital sources, enhancing business activities and partnerships, and addressing accumulated losses to improve financial conditions.

Management committed to fulfilling disclosure obligations, cooperating closely with HNX, and making maximum efforts to maintain listing status and improve operational efficiency.

At the same time, the company requested HNX to consider objective factors, current conditions, and remedial measures and to allow additional time for improving business performance, stabilizing operations, and protecting shareholders’ interests.

Regarding stock performance, prior to the delisting decision, AAV shares experienced significant volatility over a short period.

From March 20 to April 3, the share price rose continuously from VND 5,978 to VND 9,014 per share. It then reversed and declined for seven consecutive sessions to VND 7,100 on April 10. Shortly after, the stock rebounded to VND 9,014 on April 20. From April 21 to April 28, it again declined steadily to around VND 7,000 per share.

The recent sharp decline suggests that the market had already reacted to the anticipated compulsory delisting, alongside news that a senior executive registered to sell a large volume of shares.

On April 9, when the stock hit the floor price at VND 7,380 per share, Mr. Pham Quang Khanh, a member of AAV’s Board of Directors, registered to sell 15 million shares between April 9 and May 8 via negotiated or matched transactions. If completed, his ownership would decrease from over 23.5% to just 1.83% of the company’s charter capital.

It is noted that these 15 million shares were acquired by Mr. Khanh at the end of 2021 through a private placement at VND 12,200 per share when he served as Chairman of the Board. At that time, he invested VND 183 billion. If the divestment is completed at current prices, after more than four years, he would recover approximately VND 110 billion, implying a loss of over VND 70 billion. However, given the imminent delisting, the likelihood of successfully executing this transaction is considered low.