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Jul 06, 2023 / 17:29

Vietnam Airlines suspended from morning trade

If the airline reports a loss in 2022, it will be delisted from the Ho Chi Minh Stock Exchange.

More than 2.2 billion shares of Vietnam Airlines (HoSE: HVN) will be available for half-day trading only starting July 12.

Vietnam Airlines aircraft. Photo: Economic & Urban newspaper

Vietnam Airlines shares have been suspended from morning trading and can only be traded in the afternoon session, the Ho Chi Minh Stock Exchange said in a statement on July 5.

The airline has again failed to release its audited financial statements for 2022, the market regulator said.

Vietnam Airlines shares were placed under strict administration in early May as the company failed to submit its audited financial statements on time.

According to regulations, a listed company must submit its audited annual financial statements by the end of March 31 or three months after the end of the fiscal year.

The company can delay the filing of its financial statements, but the delay cannot exceed 110 days from the end of the fiscal year, which falls on April 20 each year.

HoSE has warned Vietnam Airlines of delisting its shares if the company reported another full-year loss in 2022.

The national flag carrier recorded a loss of VND11.2 trillion (US$472 million) and VND13.3 trillion (US$560.6 million) in 2020 and 2021, respectively, due to the Covid-19 pandemic.

In late March, Vietnam Airlines proposed to the HoSE to extend the deadline for disclosing its financial statements as the company was undergoing an overhaul and recalculating its earnings.

HoSE later rejected the company's proposal, stating that the reasons provided did not fall under force majeure clauses.

In its self-generated financial statements for 2022, Vietnam Airlines suffered a loss of VND10.4 trillion (US$438.3 million) and negative equity of VND10 trillion (US$421.5 million).

The company's shares fell 1.38% on July 5 to close at VND14,250 (US$0.60) apiece.