HNX Suspends Loc Troi Group (LTG) Trading Over Audit Delay

Overview

HNX has suspended trading of Loc Troi Group (LTG) shares from June 26 due to the company’s prolonged failure to publish audited financial reports. The stock had been under restricted trading (only allowed on Fridays) since October 2024 and has traded below par value for over 18 months, currently at 5,300 VND.

Key Facts

• HNX announced the suspension of LTG trading effective June 26, 2026.
• LTG had been under restricted trading (only Fridays) since October 2024.
• The stock has traded below par value for more than 1.5 years, currently at 5,300 VND.
• CEO Tran Khanh Du cited debt issues and loss of bank payment capability in 2024 as reasons for the delay.
• The company terminated its audit contract with EY Vietnam in mid-June 2026 due to lack of consensus on report timing.
• LTG has engaged UHY to review its semi-annual and full-year 2024 financial statements.
• Management expects to publish the audited reports in Q3 2026.
• The last audited financials (2023) showed revenue of over 16,500 billion VND and pre-tax profit of nearly 150 billion VND.

What Happened

The Hanoi Stock Exchange (HNX) announced the suspension of trading for Loc Troi Group (LTG) shares starting June 26, 2026, due to the company’s prolonged failure to publish audited financial statements. The stock had already been under restricted trading (only allowed on Fridays) since October 2024 and has traded below its par value for over 18 months, currently at 5,300 VND.

At an extraordinary shareholder meeting in mid-May, CEO Tran Khanh Du explained that the company faced debt-related issues and lost its ability to make payments to banks in 2024. The subsequent restructuring process encountered difficulties, generating financial items that required careful review by auditors, delaying the report. The company terminated its audit contract with EY Vietnam in mid-June due to a lack of consensus on the report timeline, and has since engaged UHY to review both the semi-annual and full-year 2024 financial statements. Chairman Huynh Van Thon acknowledged that the delays have harmed the company’s reputation, violated disclosure obligations to shareholders and regulators, and breached commitments to partners and banks.

Market Context

LTG shares closed at 5,300 VND on June 21, 2026, down 3.64% with low volume of 52,100 shares. The stock has been under restricted trading since October 2024 and has traded below par value for over 18 months. The suspension marks a further deterioration in market access for the stock, which is listed on HNX. The agricultural sector has faced headwinds, but LTG’s specific governance and disclosure issues have compounded its underperformance.

Strategic Significance

The suspension underscores severe corporate governance and financial reporting failures at Loc Troi Group, a leading rice and agricultural products company. The inability to produce audited financials for over a year erodes investor confidence and limits the company’s access to capital markets and bank financing. The change of auditors from EY to UHY suggests potential disagreements over accounting treatments, which may signal deeper financial issues. The company’s restructuring plan and its ability to regain compliance will be critical for its long-term viability.

What to Watch

• Publication of audited 2024 financial statements, expected in Q3 2026.
• Any further regulatory actions or fines from HNX or the State Securities Commission.
• Updates on the restructuring plan and debt negotiations with banks.
• Changes in management or board composition in response to the crisis.
• Trading resumption conditions and timeline as determined by HNX.