TVC – TVB IS DETERMINED TO ACHIEVE HIGH EFFICIENCY IN 2024, RESTRUCTURING FOR SUSTAINABLE DEVELOPMENT

On June 8, 2024, Tri Viet Asset Management Group Joint Stock Company (TVC) will hold the 2024 General Meeting of Shareholders. Two of the most important goals that TVC will present to shareholders at the General Meeting are the plan to achieve VND 250 billion in after-tax profit of the parent company in 2024 and solutions for restructuring and sustainable development.

At the end of 2023, TVC recorded a profit after tax of VND 273 billion, completing 273% of the plan assigned by the General Meeting of Shareholders. The business results in 2023 satisfied all TVC shareholders when the profit increased sharply, increasing by VND 826.7 billion compared to the loss of VND 553.7 billion in 2022. The profit after tax increased mainly due to the Company's reversal of securities price reduction provisions when the prices of stocks in the Company's investment portfolio increased and the Company implemented more effective cost management.

The 2024 Annual General Meeting of Shareholders of Tri Viet Securities JSC took place on the morning of June 3. (Photo: K.T)

Previously, on June 3, 2024, TVC's subsidiary, Tri Viet Securities Joint Stock Company (TVB), held a General Meeting of Shareholders, approving the business results of 2023 and the orientation and goals for 2024. If in 2022, TVB had to record a loss of VND 317 billion, in 2023, TVB recovered, with after-tax profit reaching VND 63 billion. In 2024, TVB planned VND 230 billion in revenue, VND 90 billion in after-tax profit, and was determined to effectively manage risks for sustainable development.

Sharing with shareholders attending the General Meeting, Ms. Nguyen Thi Hang, Chairwoman of TVB's Board of Directors, said that in 2023, TVB's profit exceeded the assigned plan (16 billion VND), but by the end of the year, the Company's undistributed profit was still negative 119.2 billion VND. "In the context of the Company's difficulties, the Board of Directors and the Board of Management did not submit a bonus plan exceeding the 2024 plan," she said.

According to Ms. Hang, in order to realize the proposed business plan, the Board of Directors determined the direction of operation in 2024 to focus on continuing to affirm the capacity, vision and maintain TVB's strengths. Along with that, TVB will continue to improve its organizational structure, stabilize its management and operations, strengthen the screening and recruitment of high-quality personnel, in order to meet new business requirements in the market. In general, TVB will build a streamlined organizational structure with highly specialized personnel to develop steadily in market contexts.

Regarding the concerns of some shareholders and investors about the impact of the second prosecution of former TVB - TVC Chairman Pham Thanh Tung for the crime of "Stock Market Manipulation" on the current situation of the two businesses, Ms. Hang said that the incident happened at the beginning of 2020, when Tri Viet, like all businesses, faced difficulties from the Covid-19 pandemic. "TVB - TVC has gone through the most difficult period and is gradually recovering growth. We will continue to develop the core values, inherent strengths of Tri Viet with the determination to effectively manage risks and develop sustainably," Ms. Hang said.

It is known that in the indictment of the People's Procuracy of Ho Chi Minh City. Hanoi, the Investigation Agency determined that from May 4, 2020 to October 19, 2020, in order to create liquidity for TVB - TVC shares, Mr. Pham Thanh Tung directed a number of associates to open many securities accounts and place corresponding trading orders for these two shares. The intra-group transactions were intended to create liquidity for the shares, but caused 31 other investors to suffer losses, with a total amount of 3.3 billion VND. Currently, Mr. Pham Thanh Tung has paid 2.206 billion VND to compensate investors for the losses.

The investigation conclusion of the Hanoi City Police on the above incident also stated that the purpose of opening many securities accounts was for Tri Viet intra-group accounts to trade TVB - TVC shares themselves to create liquidity for the shares. After depositing and trading 2 codes TVB, TVC, Mr. Pham Thanh Tung directed the use of TVB, TVC shares deposited in intra-group securities accounts to mortgage and borrow money at securities companies, using the borrowed money to invest in other securities codes.

In the first months of 2020, the stock market was negatively affected by the Covid-19 pandemic, large stocks fell in price, leading to many investment loans being called margin, having to sell collateral to repay debts. TVB - TVC were also among the collateral assets that had to be sold to repay loans, so they were continuously traded and negotiated to roll over debts during this period. The authorities determined that the continuous trading of TVC - TVB shares within the Tri Viet group caused a loss of 3.3 billion VND to investors. Due to the sharp decline in the stock market, Mr. Pham Thanh Tung was determined to have lost 130 billion VND from investment and debt rollover activities during the above period.

By the end of the first quarter of 2024, TVB achieved VND41.5 billion in after-tax profit. Ms. Hang said that the positive results of the first quarter made the Company confident that it would complete and exceed the target of VND90 billion in profit this year. “The Company's Board of Directors will strive to exceed the plan, with the determination to eliminate accumulated losses by the end of 2024, bringing the stock out of the warning status. Along with that, the Board of Directors will conduct an audit immediately after the end of the 2024 fiscal year to issue an audited financial report early, no later than February 2025, helping to remove TVB shares from control,” Ms. Hang said.