Sonadezi (SNZ) Loses Public Company Status as Dong Nai Holds 99.54%

Overview

Sonadezi (ticker SNZ, UPCOM) has disclosed that it no longer satisfies the conditions for public company status under Vietnam’s Law on Securities, after a shareholder list compiled by the Vietnam Securities Depository and Clearing Corporation (VSDC) showed Dong Nai province holding 99.54% of voting shares. The announcement follows the May 2026 arrest of Dang Le Bich Phuong, then Head of the Supervisory Board, and comes alongside H1 2026 results showing revenue down 25.7% and net profit down 43.9% year-on-year. For SNZ holders, the filing raises questions about free float, liquidity and the state’s stated intention to keep its stake through 2030.

Key Facts

• VSDC shareholder list dated 8 October 2026 records 484 shareholders at Sonadezi.
• Dong Nai province’s People’s Committee holds 99.54% of voting shares; the remaining 483 shareholders hold 0.46% of charter capital.
• Sonadezi holds 8,200 treasury shares.
• Public company status requires at least 10% of voting shares held by no fewer than 100 non-major investors; Sonadezi no longer meets this test.
• A document dated 29 September on the 2026-2030 development strategy proposed maintaining the state ownership ratio at Sonadezi through the end of 2030; Dong Nai province and the Department of Finance are reviewing the proposal.
• Dang Le Bich Phuong, Head of the Supervisory Board, was prosecuted and detained in May 2026 for alleged violations in the management and use of state assets causing loss and waste; Tran Ngoc Tong, a Supervisory Board member, was assigned to temporarily run the board.
• H1 2026 revenue was VND 2,751.8 billion, down 25.7%, with after-tax profit of VND 727.28 billion, down 43.9%; gross margin narrowed from 49.1% to 37.4%.

What Happened

In an unusual-information disclosure, Sonadezi said it no longer meets the public company conditions set out in the Law on Securities. The company cited the VSDC shareholder list dated 8 October 2026, which shows 484 shareholders in total, with the Dong Nai provincial People’s Committee as the dominant holder at 99.54% of voting shares and the other 483 investors combined at just 0.46% of charter capital. Sonadezi also reported holding 8,200 treasury shares. Under the rules, a public company needs at least 10% of voting shares held by a minimum of 100 investors who are not major shareholders.

The disclosure follows personnel disruption. Dang Le Bich Phuong, Head of the Supervisory Board, was prosecuted and detained in May 2026 on charges of violating regulations on the management and use of state assets, causing loss and waste. The company assigned Tran Ngoc Tong, a member of the Supervisory Board, to temporarily oversee the board’s operations. Separately, a document dated 29 September on reviewing and adjusting the 2026-2030 development strategy proposed keeping the state ownership ratio at Sonadezi through 2030, a proposal now under review by the provincial People’s Committee and the Department of Finance.

Market Context

SNZ trades on UPCOM, Vietnam’s unlisted public company market, and closed at VND 22,100 on 13 October 2026. The ticker sits in the real estate and industrial park segment, where Sonadezi’s core assets are industrial land and related services in Dong Nai, a key manufacturing corridor adjacent to Ho Chi Minh City. With 99.54% of voting shares held by the provincial government and only 0.46% in outside hands, the tradable float is extremely thin, which limits liquidity and index relevance regardless of the public company designation. The H1 2026 margin compression, from 49.1% to 37.4%, points to pressure on industrial park leasing and related revenue rather than a one-off item.

Strategic Significance

The central issue for long-term investors is not the public company label itself but the ownership structure behind it. A 99.54% state stake leaves almost no room for minority influence, and the proposal to hold that ratio through 2030 signals that privatization or strategic divestment is not on the near-term agenda. That caps the re-rating potential that typically accompanies state-owned enterprise equitization. At the same time, the supervisory board prosecution and the sharp H1 earnings decline raise governance and operational questions that minority holders cannot easily resolve through voting. The investment case rests on Dong Nai’s industrial land demand and the company’s asset base, not on any expectation of ownership change.

What to Watch

• Dong Nai provincial People’s Committee and Department of Finance decision on the proposal to maintain state ownership through 2030.
• Any regulatory guidance from the State Securities Commission on SNZ’s public company status and its consequences for trading on UPCOM.
• Q3 2026 results for evidence on whether the 25.7% revenue decline and 43.9% profit decline are stabilizing or worsening.
• Further developments in the prosecution of Dang Le Bich Phuong and any related findings on state asset management.
• Appointment of a permanent Head of the Supervisory Board to replace the interim arrangement under Tran Ngoc Tong.