SDA Placed Under Warning on UPCoM After HNX Delisting Due to Audit Issues

Overview

Simco Song Da (SDA) has been placed under warning status on UPCoM effective June 2, following its mandatory delisting from HNX on May 22. The regulatory action stems from three consecutive years of qualified audit opinions, with accumulated losses of over VND 174.5 billion. The company now faces heightened scrutiny over its financial health and ability to continue as a going concern.

Key Facts

• SDA was delisted from HNX on May 22, 2025, due to three consecutive years of qualified audit opinions.
• The stock was placed under warning status on UPCoM from June 2, 2025.
• Accumulated losses as of the 2025 audited financial statements exceeded VND 174.5 billion.
• Auditor IAV flagged three issues: VND 88.3 billion in related-party receivables, a VND 37 billion investment in Cat Tuong Thien Tan Lac, and VND 58 billion in other short-term receivables.
• The company has set a target to recover outstanding debts by 2026.
• SDA closed at VND 2,500 on June 14, 2026, up 13.64% with volume of 621,500 shares.

What Happened

Simco Song Da (SDA) was forced to transfer from HNX to UPCoM after failing to meet listing standards due to three consecutive years of qualified audit opinions. The Hanoi Stock Exchange (HNX) issued the delisting decision on May 22, and the UPCoM warning followed on June 2.

The auditor, IAV, highlighted three material issues in the 2025 financial statements: VND 88.3 billion in receivables and advances to individuals Do Tuan Duong, Nguyen Thi Tuyet, and Nguyen Cong Giap; a VND 37 billion investment in Cat Tuong Thien Tan Lac; and VND 58 billion in other short-term receivables. The auditor could not obtain sufficient evidence to assess the appropriateness of these transactions or related provisions. Additionally, the auditor emphasized that the company’s short-term liquidity and going-concern status may be affected by the accumulated losses.

SDA management stated it is actively recovering these debts and expects to complete the process by 2026. The company also noted that it has already made full provisions for some receivables and is pursuing asset liquidation to maintain cash flow.

Market Context

SDA shares closed at VND 2,500 on June 14, 2026, up 13.64% on volume of 621,500 shares, suggesting some speculative buying after the delisting and warning. However, the stock remains highly risky given the accumulated losses and ongoing audit concerns. SDA trades on UPCoM, the unlisted public company market, which typically has lower liquidity and less stringent disclosure requirements than HOSE or HNX.

Strategic Significance

The warning status and delisting reflect deep structural issues at SDA, including weak internal controls over related-party transactions and a deteriorating financial position. The company’s reliance on debt recovery and asset sales to stay afloat raises questions about its long-term viability. For investors, the key risk is that SDA may fail to resolve its audit qualifications, leading to prolonged warning status or even forced delisting from UPCoM. The outcome hinges on the company’s ability to recover the VND 88.3 billion in related-party receivables and other outstanding amounts by 2026.

What to Watch

• Progress on recovery of related-party receivables and the VND 37 billion investment by end-2026.
• Any further qualified audit opinions in the 2026 financial statements.
• Changes in SDA’s cash flow and ability to meet short-term obligations.
• Potential regulatory actions if the warning status is not lifted within the required timeframe.
• Any announcements regarding asset sales or capital restructuring.