SIMCO Song Da details plan to address controlled share status

SIMCO Song Da JSC (HNX:SDA) has announced measures to address the continued controlled status of its shares, as per a directive from the Hanoi Stock Exchange. The company reported negative after-tax profits for 2023 and 2024 and received qualified audit opinions for the same years' financial statements. The accumulated loss is primarily due to provisions for impairment of investments in associates and other long-term investments. SIMCO Song Da plans to restructure these investments to recover capital, offsetting accumulated losses by reversing impairment provisions.

Regarding the qualified opinions, SIMCO Song Da stated that the 2023 financial statements' provisions were based on unaudited statements from HXS VINA Technology Investment Joint Stock Company and Cat Tuong Thien Tan Lac Joint Stock Company. HXS VINA has since completed its 2024 audited statements, providing a basis for SIMCO to reassess provisions. The investment in Cat Tuong Thien Tan Lac was fully divested per a resolution dated March 17, 2025.

For 2024, the investment in Cat Tuong Thien Tan Lac, valued at 37,050,000,000 dong, was fully provisioned due to project delays, with divestment completed in 2025. Additionally, other short-term receivables totaling 58,163,618,000 dong, which were fully provisioned due to lack of payment guarantees, have been successfully recovered, and customer receivables are actively being pursued for full recovery in 2025.