According to the Q1/2024 financial report, Urban Gas Development Investment Corporation (HNX: PCG) had a net revenue of more than 90 billion VND, up 15% from the same period last year. However, a high cost of goods lowered the company's gross profit to more than 3 billion VND, a 37% decline from the same time in 2023.

Although the company's financial revenue increased by 37% compared to the same period, it was only nearly 1 billion VND. However, financial costs increased by 40% to over 700 million VND, with a sharp increase in management expenses of 72% to 5.5 billion VND and sales costs at a high level of more than 3 billion VND.

As a result, at the end of the first quarter of 2024, PCG had reported a net loss of about 5 billion VND, an enormous increase from the roughly 800 million VND loss in the same time in 2023. This is also the company's most significant loss quarter in more than four years.

As of the end of Q1/2024, PCG had amassed losses of about 46 billion VND as a result of poor business performance in previous years. Furthermore, the auditing firm gave an audit opinion with exceptions for the consolidated financial report 2022-2023. This prompted the Hanoi Stock Exchange to put PCG shares under control.

In another case, on May 2, the State Securities Commission (SSC) declared that PCG will face administrative penalties for securities and stock market violations. Accordingly, the SSC penalized PCG 125 million VND for breaching shareholder transaction requirements. On May 9, 2018, PCG signed Contract No. 12/HĐ-KĐT for a loan with shareholder Viet Tu Investment Corporation. On June 2, 2023, the firm signed an appendix No. 05 to Contract No. 12/HĐ-KĐT dated May 9, 2018, with Viet Tu Investment LLC (previously Viet Tu Investment Corporation), extending debt payments until 2043.

The SSC also penalized PCG 85 million VND for failing to publish information necessary on the SSC's system and the Hanoi Stock Exchange's website regarding the annual general meeting invitation and papers for 2023.

Furthermore, the corporation was penalized 125 million VND for failing to ensure that the Board of Supervisors had the appropriate number of members. In 2022, PCG's Board of Supervisors consisted of only two members. The total penalty that PCG must pay equal to 335 million VND.

Regarding the issue of the shares being placed under control, previously, company leaders explained the reasons and outlined key tasks to rectify the situation, such as: continuing to maintain the company's traditional business segment, which is trading in LPG; seeking, exploiting, and expanding the market in industrial zones and export processing zones to increase volume and revenue for this segment;

Seeking more clients who are investors in industrial zones to combine investment in the construction of gas systems for factories and companies inside industrial zones; extending business items beyond LPG such as LNG and CNG to generate new business prospects for the firm;

Limiting sales to clients with delinquent accounts receivable to ensure cash flow stability. Simultaneously, escalating steps to collect late loans and accounts receivable; tightly limit ing expenses in management, operation, and business output while maintaining strong business efficiency and other aspects of the organization;

Collaborating with relevant authorities to comprehensively resolve debt recovery for company loans; in loan matters, the company will negotiate an extension. Regarding the distribution of Debt Confirmation Letters, the company will re-identify the addresses of customers and receivers to sign the confirmation, as well as phone or meet directly to encourage signing..."