Ho Chi Minh City Stock Exchange (HOSE) decided to transfer ITA shares of Tan Tao Investment and Industry Joint Stock Company from restricted trading to suspended trading from September 26, 2024.
The reason why HOSE decided to take the highest penalty for ITA shares is because Tan Tao Company continued to violate regulations on information disclosure on the stock market after being placed on restricted trading.
Accordingly, Tan Tao Company has not yet announced the audited financial statements for 2023, the annual report for 2023 and the semi-annual reviewed financial statements for 2024.
HOSE also said that ITA shares are also under warning according to the decision dated August 26, 2022 of the General Director of HOSE because the company violated information disclosure 4 times or more within 1 year (calculated according to the calendar year).
For its part, Tan Tao Company has issued an official dispatch stating that it had previously sent 3 reports to the State Securities Committee and HOSE requesting a temporary postponement of the disclosure of the Audited Financial Statements and the 2023 Annual Report, also due to force majeure.
Tan Tao Company said that in the document dated June 24, the company sent a reply to the State Securities Committee to explain the reason for force majeure, but HOSE still issued a decision to put ITA shares under restricted trading from July 16, 2024.
In all documents sent to the State Securities Committee and HOSE, Tan Tao Company has explained very clearly and in detail the reasons for force majeure for many months now.
Although Tan Tao has made every effort to contact and persuade all auditing units (30 auditing companies are approved to audit public interest units in the securities sector in 2023), all of these auditing companies have refused - the company stated.
Regarding the reason, Tan Tao Company said that the State Securities Committee had suspended the auditing qualifications of 4 auditors who audited the 2021, 2022 Financial Statements and reviewed the 2023 semi-annual financial statements for Tan Tao Company in an unusual and non-transparent manner, causing all other auditing firms to fear that auditing for the company would also have their auditor qualifications suspended in the same way.
Faced with this extremely serious situation that is vital to the interests of shareholders, investors and the company, Tan Tao Company urgently requests the State Securities Committee and HOSE to take action to protect the company and investors by allowing Tan Tao to temporarily postpone the disclosure of information about the above reports until the company finds an auditing company and completes the audit work.
The company also requested the State Securities Committee and HOSE to support in issuing an official document allowing auditing companies to conduct audits for the company.
In case Tan Tao Company cannot complete the above reports due to force majeure, if the State Securities Committee and HOSE rely on that to suspend trading and delist ITA shares, the State Securities Committee and HOSE will be responsible for all damages caused to domestic and foreign investors, shareholders and the company, Tan Tao Company emphasized in its document.
In terms of business activities, in the independent financial report for the second quarter of 2024, Tan Tao recorded revenue of VND 70.88 billion, down 12.9% year-on-year, and profit after tax of VND 44.04 billion, up 84.4% year-on-year.At the close of trading on September 20, ITA shares decreased by VND 90 to VND 2,770/share.
