TV1 Pays 15% Cash Dividend Despite Chairman Arrest and Big4 Audit Refusal

Overview

Power Engineering Consulting JSC 1 (ticker TV1, UPCOM) has approved a 15% cash dividend for 2025, paying 1,500 VND per share, even as its chairman faces criminal prosecution and all four Big4 audit firms have declined the 2026 engagement. The record date is 23 September 2026, with payment scheduled for 29 October 2026. The announcement matters because it tests whether TV1’s utility-linked cash flows can keep supporting shareholder returns while governance and audit risks remain unresolved.

Key Facts

• Cash dividend of 15% for 2025, equivalent to 1,500 VND per share, on approximately 26.7 million shares outstanding.
• Total payout estimated at about 40 billion VND; record date 23 September 2026, payment date 29 October 2026.
• Vietnam Electricity (EVN), the largest shareholder with 54.34%, is set to receive roughly 21.8 billion VND.
• Chairman Nguyễn Hữu Chỉnh was prosecuted and detained by the Ministry of Public Security’s investigative police, then suspended from his post.
• Since 2 June, board member and CEO Nguyễn Kim Cương has been assigned to oversee board activities.
• All four Big4 audit firms previously selected by the annual general meeting declined to provide 2026 audit services, forcing TV1 to seek shareholder approval for a new auditor.
• H1 2026 revenue reached 279 billion VND, up 16% year on year, but net profit fell 3% to 57.8 billion VND; gross margin narrowed from 39.3% to 34.8%.
• Total assets stood at 1,102 billion VND at end-June 2026.

What Happened

The dividend plan was disclosed by Power Engineering Consulting JSC 1 following a period of leadership disruption. Chairman Nguyễn Hữu Chỉnh was prosecuted, detained and subsequently suspended by the Ministry of Public Security’s investigative police. From 2 June, board member and CEO Nguyễn Kim Cương was assigned to lead board operations. The company did not disclose the specific charges in the announcement.

The governance strain extended to auditing. All four Big4 firms previously chosen by the annual general meeting declined to serve as auditor for 2026, requiring TV1 to submit a replacement auditor for shareholder approval. In its reviewed H1 2026 financial statements, the auditor flagged an emphasis-of-matter paragraph tied to the ongoing investigation. TV1 stated that as of 30 June the case had no conclusion from competent authorities and that, based on available information, no financial obligation requiring provisioning had arisen. The company reported H1 2026 revenue of 279 billion VND, up 16%, while net profit declined 3% to 57.8 billion VND as costs rose and gross margin compressed to 34.8%.

Market Context

TV1 trades on UPCOM, Vietnam’s unlisted public company market, where liquidity and disclosure standards are generally lighter than on HOSE or HNX. The stock closed at 19,800 VND on 23 September 2026, the dividend record date, implying a yield of roughly 7.6% on the 1,500 VND payout, below the 15% figure often quoted on par value. The company sits in the construction and energy services sector, where order flow is closely tied to EVN’s transmission and power project pipeline. The dividend decision comes amid broader scrutiny of governance at Vietnamese listed firms with state-linked ownership.

Strategic Significance

For long-term investors, the central question is whether TV1’s dividend capacity reflects durable engineering and consulting cash flows or a one-off distribution ahead of unresolved legal and audit risks. EVN’s 54.34% stake aligns the company with national power infrastructure spending, which supports the revenue base, but the Big4 audit refusals and the emphasis-of-matter paragraph raise the cost of diligence and could complicate future capital raising or listing ambitions. The 3% profit decline alongside 16% revenue growth signals margin pressure that a 40 billion VND payout does not address. The appointment of CEO Nguyễn Kim Cương to lead the board provides continuity, but the absence of a permanent chairman and a confirmed auditor leaves a governance gap that investors will price into the stock.

What to Watch

• Shareholder approval of a replacement auditor for 2026 and the identity of the new firm.
• Any conclusion or formal charges from the Ministry of Public Security investigation involving Chairman Nguyễn Hữu Chỉnh.
• Q3 2026 results for evidence that gross margin stabilizes above 34.8%.
• Appointment of a permanent board chairman and any further leadership changes.
• EVN’s project awards and transmission investment plans that drive TV1’s order book.