Pomina (POM) Faces Delisting Risk as Audited 2025 Equity Turns Negative VND 631B

Overview

Pomina (POM), a former leading steel producer on HOSE, reported audited 2025 consolidated equity of negative VND 631 billion, violating the Securities Law’s minimum equity requirement for public companies. This places POM at risk of losing its public company status and facing delisting. The company is implementing restructuring measures, including a partnership with Vinmetal, to restore equity.

Key Facts

• Audited 2025 consolidated equity: negative VND 631 billion (individual equity: negative VND 590 billion).
• POM fails the Securities Law 2019 condition requiring at least VND 30 billion in equity for public companies.
• If public company status is revoked, POM shares will be delisted from HOSE.
• Q1 2026 consolidated revenue: VND 466 billion, down 54.7% year-on-year; net loss: VND 179 billion.
• Auditors issued a going-concern qualification for all three consolidated reports (2023-2025).
• POM signed a cooperation agreement with Vinmetal in Q4 2025 to restart production from early 2026.
• The 2026 Annual General Meeting is scheduled for June 30 in Ho Chi Minh City.

What Happened

Pomina disclosed in its audited 2025 financial statements that consolidated equity stood at negative VND 631 billion as of December 31, 2025, while individual equity was negative VND 590 billion. Under Vietnam’s Securities Law 2019, a public company must have charter capital of at least VND 30 billion and equity of at least VND 30 billion. POM’s negative equity disqualifies it, and the company stated it is subject to review for revocation of public company status, which would lead to delisting of POM shares.

Pomina attributed its difficulties to the prolonged construction of a blast furnace project delayed by COVID-19, which caused investment costs to surge and forced a production halt from September 2022. The company has since pursued restructuring, including a cooperation agreement with Vinmetal signed in Q4 2025, which enabled a production restart in early 2026. However, Q1 2026 results showed revenue fell 54.7% year-on-year to VND 466 billion, with a net loss of VND 179 billion.

Market Context

POM shares closed at VND 4,800 on June 14, 2026, up 9.09% on volume of 5.1 million shares, suggesting speculative buying despite the dire fundamentals. The stock has been under pressure since 2022 as the company’s financial deterioration became evident. The steel sector in Vietnam faces headwinds from weak construction demand and overcapacity, but POM’s situation is extreme. The potential delisting would remove the stock from HOSE, likely forcing a move to UPCOM or over-the-counter trading, reducing liquidity and investor access.

Strategic Significance

POM’s restructuring hinges on restoring equity to positive territory. The Vinmetal partnership provides a lifeline for production, but the company’s ability to generate sustainable profits and rebuild equity remains uncertain. The auditor’s going-concern qualification underscores the risk of insolvency. For long-term investors, the key question is whether POM can execute a turnaround before regulatory deadlines force delisting. If delisted, shareholders may face significant losses as the stock loses exchange-traded liquidity and valuation benchmarks.

What to Watch

• Outcome of the June 30, 2026 AGM, including any shareholder approval for restructuring plans.
• Progress on equity restoration: quarterly financial reports showing narrowing losses or positive equity.
• Regulatory decision from the State Securities Commission on POM’s public company status.
• Updates on the Vinmetal cooperation: production volumes, cost savings, and revenue contribution.
• Any additional capital injections or asset sales to improve the balance sheet.