Why was TNA's stock stopped from trading?

According to HoSE, the stock trading suspension occurred on May 17, 2024, when TNA stock was placed under trading restrictions due to TNA's failure to submit its 2023 audited financial statements within the 45-day deadline, a violation that warranted trading restrictions. By September 4, 2024, HoSE had informed TNA of the delay in releasing the 2024 semi-annual individual and consolidated reports.

According to Point C, Clause 1, Article 41 of the Listing and Trading Regulations issued under Decision No. 17/QD-HĐTV dated March 31, 2022, by the Board of Directors of the Vietnam Stock Exchange, securities will be suspended from trading if listed organizations continue to violate information disclosure regulations after being placed under trading restrictions. As a result, HoSE will move TNA stock from trading restrictions to trade suspension.

Regarding the delay in submitting the 2024 semi-annual individual and consolidated financial statements, TNA's leadership stated in an explanatory document on August 29 that they are actively working with an independent audit firm to issue and disclose the 2023 audited financial statements in September 2024.

The corporation has yet to provide information for the 2024 semi-annual reviewed financial statements since it relies on statistics from the 2023 audited financial statements. As a result, following the publication of the 2023 audited financial statements, TNA plans to release the 2024 semi-annual reviewed financial statements as soon as practicable, with an early Q4 2024 target date.

The company’s leadership acknowledged that their failure to fully disclose information, as well as incomplete reports in 2023, led to administrative fines by the State Securities Commission this year. The company has acknowledged its shortcomings and paid the fines within the stipulated timeframe.

"TNA has been listed on the stock market since 2005, with nearly 20 years of experience in the stock and securities market. We have always adhered to legal requirements regarding information disclosure. However, due to the general economic challenges of recent years, our business activities have faced increasing difficulties, which have resulted in delays in disclosing the 2023 audited financial statements and the 2024 semi-annual reviewed financial statements," the TNA leadership explained.

Previously, in August 2024, TNA was penalized VND 152.5 million for offenses connected to information disclosure. TNA was fined VND 92.5 million for failing to disclose the 2023 audited financial statements on the State Securities Commission and HoSE systems, as well as failing to timely disclose changes in its legal representative when authorities notified it of changes in the company's business registration certificate (amendment No. 26, dated February 16, 2023).

Additionally, the company was fined VND 60 million for incomplete disclosures in its 2023 corporate governance report. According to its Q4 2023 financial report, TNA incurred a receivable from Mr. Nguyen Quang Hoa, the company’s Chairman, amounting to nearly VND 7.9 billion at the beginning of the year and over VND 32.5 billion by year-end. However, this transaction was not fully disclosed in the 2023 corporate governance report.

In terms of business performance, in Q2 2024, TNA reported revenue of over VND 546 billion, down 65.4% year-on-year. The company recorded a net loss of over VND 18 billion, compared to a profit of VND 2.4 billion in the same period last year.

For the first half of 2024, TNA recorded revenue of over VND 672 billion, down 77.3% year-on-year. The company reported a net loss of over VND 26.3 billion, compared to a profit of nearly VND 4 billion in the same period last year. With these results, it appears unlikely that the company will meet its 2024 profit target of VND 1 billion.