On the finish of August, Vietnam Airways Company – JSC (Vietnam Airways) introduced its monetary report for the second quarter of 2021. Accordingly, Vietnam Airways suffered one other lack of greater than 4,400 billion dong within the second quarter, bringing the lack of 6 months to over 8,400 billion dong. Thus, by the tip of June 30, 2021, Vietnam Airways amassed a lack of VND 17,771 billion, exceeding the constitution capital of VND 14,183 billion.
Based on the Securities Legislation, One of many situations for delisting shares on the inventory change is the amassed loss in extra of the constitution capital on the audited monetary statements of the most recent yr.
Vietnam Airways’ shares are presently beneath warning from April 15, 2021 as a result of the revenue after company earnings tax in 2020 and the undistributed revenue after tax on December 31, 2020 is destructive.
Thus, Vietnam Airways is presently within the “hazard zone”, however there are nonetheless 6 months to beat this case.
By December 31, 2021, if the amassed lack of Vietnam Airways nonetheless exceeds the constitution capital, the shares of Vietnam Airways can be topic to obligatory delisting.
Nevertheless, Vietnam Airways is planning to forestall this from taking place, by elevating capital from shareholders. Particularly, Vietnam Airways has introduced to supply 800 million shares on the worth of 10,000 VND/share, to extend capital by 8,000 billion VND.
If the providing is profitable, Vietnam Airways will improve its constitution capital to VND 22,183 billion, briefly greater than the amassed loss.
Nevertheless, the present scenario of home aviation enterprise continues to be very tough. Vietnam Airways’ worldwide passenger transportation continues to be virtually frozen, with solely repatriated and skilled flights left. Within the third quarter of 2021, the Covid-19 epidemic continues to be sophisticated and many individuals suppose that airways will proceed to lose cash. If it continues to undergo massive losses within the third and fourth quarters, Vietnam Airways’ amassed losses could once more exceed its constitution capital.
In addition to, it’s not clear whether or not Vietnam Airways will efficiently promote all 800 million shares. In an announcement in early August, ANA Holdings, the foremost shareholder proudly owning 124 million shares of Vietnam Airways, introduced that it’s going to not take part in shopping for shares supplied on this spherical, however will as an alternative switch all shares at no cost. 124 million set of buying rights for workers of Vietnam Airways and member models of Vietnam Airways.
