Mekong Fisheries JSC shares have been included on the southern bourse’s warning list from August 31 and the company is facing the risk of a listing cancellation. According to the HCM Stock Exchange (HOSE), the decision was made because Mekong Fisheries had reduced its charter capital to below VND120 billion (US$5.3 million) based on the firm’s audited financial report for the first six months of 2018.
Mekong Fisheries’ six-month financial report showed the company’s charter capital had been cut from VND126.36 billion in early 2018 to VND99.36 billion, which is below the VND120 billion required by HOSE.
HOSE also said Mekong Fisheries would have one year to increase its charter capital, otherwise the company’s listing would be cancelled.
Mekong Fisheries JSC has more than 12.6 million shares on HOSE under the ticker AAM. Its shares edged down 0.4 per cent to close Tuesday at VND11,150 ($0.49).
At the firm’s general meeting on March 16, shareholders approved the cancellation of 2.7 million treasury shares and to cut the charter capital.
In the first six months of 2018, Mekong Fisheries JSC posted a year-on-year decline of 14 per cent in revenue to VND110.2 billion but its after-tax profit jumped five times to VND6.66 billion.
In those six months, Mekong Fisheries fulfilled half of its full-year revenue target of VND220 billion, while the company has beaten its pre-tax profit goal of VND5 billion.