Late performance disclosures ring exchange warning bell

Late performance disclosures ring exchange warning bell
Late business performance disclosure by listed firms is ringing a warning-bell for market regulators, as it seems to be becoming a phenomenon on the Vietnamese exchanges.
In November, the blue-chip company Pha Lai Thermal Power informed shareholders of zero dividend payments due to profit losses. The impact was deemed serious enough for the HCM City Stock Exchange’s management board to give the company a warning.
Early this month, other listed firms like Construction No.5, or Investment and Construction Development Co made public their altered business results.
Nguyen Thi Hoang Lan, deputy director of Ha Noi Securities Trading Centre, said that it was acceptable for firms to make adjustments in business performance amidst the present market turmoil.
"However, enterprises should make public such information in a timely fashion, to enable investors to make good investment decisions," said Lan.
Nguyen Hoa Binh, Chairman of Vietcombank, confirmed that its disclosure of business adjustment in November was late.
"In the context of market turmoil, however, it is difficult to forecast a company’s future. Actually, I must confess that we deliberated a lot before making public our business performance. I hope there will be sympathy for our late disclosure," he said.
The Bank for Foreign Trade of Viet Nam, known as Vietcombank, has changed the year’s targets for total asset, credit growth and bad debt ratio.
A representative from Construction No 5 Co, who wished to remain anonymous, excused his companies’ late disclosure by saying: "Even at the end of the third quarter, we believed that we could reach the year’s target. But, the fluctuation lasted longer than we expected, along with spending for provision fund. We only recognised the inadequacy of the year’s business result early this quarter."
Nguyen Hong Quan, An Binh Securities’ acting director, said that late disclosure greatly decreases investor confidence.
"Investors are paying more attention to the business results from listed firms, as well as to changes in business performance. The situation will cause serious consequences, if it becomes a trend," said Quan.
The Viet Nam Association of Finance Investors is urging listed firms to make disclosures sooner to protect investors from unexpected loss and to promote transparency. (VNS)

Baseafood to pay 20% dividend in cash for the first phase of 2008

Ba Ria Vung Tau Seafood Import Export Processing Joint Stock Co (Baseafood) announced that it would pay 20% dividend in cash
for the first phase of 2008 between December 25 and 31, 2008.
During the third quarter of 2008, Baseafood reached 179.230 billion dong in net revenue from sales and services and 3.109 billion dong in after-tax profit, bringing the total figure for Jan-November to 432.586 billion dong in revenue, 13.908 billion dong after-tax profit and the EPS of 4,346 dong.