VNE Faces Mandatory Delisting from HoSE Due to Losses and Disclosure Violations

Overview

HoSE has announced a mandatory delisting of VNE shares due to serious information disclosure violations and accumulated losses exceeding charter capital, based on the 2024 audited financial report. The stock closed at VND 2,750 on May 19, 2026, near its floor price.

Key Facts

• HoSE issued a notice on May 19, 2026, regarding mandatory delisting of VNE shares.
• The delisting is based on the 2024 audited financial report showing accumulated losses of over VND 152 billion for the parent company.
• The legal basis is point h, clause 1, Article 120 of Decree 155/2020/ND-CP, which mandates delisting if losses exceed charter capital or three consecutive years of losses.
• VNE reported a record net loss of over VND 219 billion in Q4/2024, the second consecutive year of losses (after a loss of over VND 18 billion in 2023).
• VNE shares are trading at VND 2,750 per share, near the floor price.
• The company operates in power construction and energy infrastructure.

What Happened

HoSE has notified Tổng Công ty Cổ phần Xây dựng Điện Việt Nam (VNE) of its intention to proceed with a mandatory delisting of VNE shares. The exchange cited serious violations of information disclosure obligations and the need to protect investor interests as grounds for the delisting review.

The decision is based on VNE’s 2024 audited financial report, which shows that the parent company’s retained earnings after tax were negative over VND 152 billion as of year-end 2024. HoSE referenced Decree 155/2020/ND-CP, which stipulates that securities of a listed organization shall be subject to mandatory delisting if the enterprise has suffered losses for three consecutive years or if accumulated losses exceed the paid-in charter capital.

Market Context

VNE shares closed at VND 2,950 on May 19, 2026, down 1.99% with volume of 398,400 shares, reflecting ongoing selling pressure. The stock has been trading near its floor price of VND 2,750, indicating weak demand. The mandatory delisting announcement is likely to further depress the stock and limit liquidity. VNE is listed on HoSE, the main exchange in Vietnam, and its delisting would move the stock to the unlisted public company market (UPCOM), typically resulting in lower valuation and reduced access to capital.

Strategic Significance

The mandatory delisting underscores the severe financial distress at VNE, which has posted two consecutive years of losses and faces accumulated losses exceeding its charter capital. The company’s core business in power construction and energy infrastructure has been under pressure, and the delisting will hamper its ability to raise equity capital. For investors, the delisting signals a high risk of total loss, as the stock will likely become illiquid and may face further regulatory actions. The case also highlights the enforcement of listing rules by HoSE, which may increase scrutiny on other financially weak listed firms.

What to Watch

• VNE’s response to HoSE’s delisting notice, due within the prescribed timeframe.
• The timeline for the actual delisting and transfer to UPCOM.
• Any potential restructuring or capital injection plans from VNE to address its financial situation.
• The impact on other small-cap construction and energy infrastructure stocks on HoSE.
• Regulatory developments regarding enforcement of listing standards for loss-making companies.