Giants play hot goods, earn tens of billions, fined more than hundreds of millions like ‘scratching’

One hundred million fine

After a lot of speculation and accusations about the “Louis line” stock group, which includes many codes in the real estate sector such as Louis Land (BII), finance like Louis Capital (TGG), APG Securities, rice like Angimex (AGM); pharmaceutical companies such as Lam Dong Pharmaceutical or Sametel (SMT), … Louis Holdings tycoon of Mr. Do Thanh Nhan has been sanctioned.

On March 22, the State Securities Commission issued a decision on sanctioning administrative violations in the field of securities and securities. stock market for Louis Holdings JSC, address: 14 Nguyen Van Vinh, Ward 4, Tan Binh District, HCMC.

Accordingly, Louis Holdings was fined 161 million VND and suspended securities trading for two months (effective from March 22) for buying more than 1 million shares of Louis Capital (TGG) compared to the registered quantity.

The information comes at a time when the names related to Louis Holdings are still very hot.

Louis Holdings is fined.

Most recently, there was information on the market about a group of 42 shareholders who wanted to put Louis Holdings people on the Board of Directors of Hoang Quan Real Estate (HQC). The group wants to nominate Ms. Nguyen Giang Quyen for additional election to the Board of Directors of Hoang Quan Real Estate for the term 2020-2024 and put this recommendation on the meeting agenda for the 2022 Annual General Meeting of Shareholders (AGM) to consider and approve. Ms. Nguyen Giang Quyen has just been appointed General Director of Louis Land (BII) from February 17, 2022.

Mr. Do Thanh Nhan currently holds 2.87% shares of Louis Land and Louis Capital (TGG) holds 2.28%. Louis Holdings meanwhile holds 27.84% of Louis Capital.

Among the group of 42 shareholders, which are said to hold more than 10% of HQC’s capital, there are 2 institutional shareholders, Lam Dong Pharmaceutical – Ladophar (LDP) and APG Securities (APG) related to the “Louis Holdings ecosystem”.

Specifically, Lam Dong Pharmaceutical has major shareholders, Louis Holdings and Louis Capital, holding a total of over 20%. Mr. Do Thanh Nhan is the Chairman of Ladophar. Meanwhile, APG Securities used to have a major shareholder, TGG (a member of the Louis Holdings ecosystem).

Mr. Do Thanh Nhan.

This is not the first time the “Louis” ecosystem has been sanctioned. In early 2022, Louis Capital was also fined more than 230 million VND with many errors such as information disclosure violations; failing to ensure that at least one third of the total number of members of the Board of Directors are non-executive members; not ensure the structure and number of independent members of the Board of Directors; does not appoint a person in charge of corporate governance according to regulations.

APG Securities (APG) on March 21 was also sanctioned by the Securities Commission for not disclosing information on time as prescribed by law with the aggravating circumstance of repeated administrative violations.

Previously, Sametel – SMT (currently Louis Capital holds more than 51%) on March 7 was fined 170 million VND by the Securities Commission for not disclosing information and disclosing incomplete information. SMT did not publish a series of information as required and did not disclose it on time.

Dark days

Louis Holdings Joint Stock Company emerged from 2021. From a rice company, this enterprise acquired many multi-industry companies, creating a “Louis” ecosystem. In just one year, Mr. Do Thanh Nhan’s enterprise has become a major shareholder of 5 units including Louis Capital, Louis Land, Lam Dong Pharmaceutical, An Giang Angimex Import-Export and Sametel (SMT).

Information spread on the Internet.

In the second half of 2021, the Louis line stood out on the stock market with a series of stocks that increased to the ceiling for a long time and flooded the “closed” rooms.

This is also an attractive time for the stock market, many individual investors closely follow the group of stocks in the Louis “ecosystem”, including BII, TGG, SMT, APG, VKC and then TDH in the context of the stocks increased suddenly with huge overbought volume with the participation of investment from Louis Capital.

BII shares increased dramatically, from over 1,000 VND/share at the end of 2020 to nearly 24,000 VND/share in September 2021. TGG shares also increased from over 1,000 VND/share at the end of 2020 to 69,000 VND/share at the end of September 2021. Other stocks also rose very strongly

In such an intense series of ceiling increases, many people could have made huge profits. On 11/11/2021, Mr. Do Thanh Nhan, a member of the Board of Directors of Louis Capital (TGG) successfully sold a set of 930,000 shares owned by TGG, equivalent to 3.41% of the capital.

After selling TGG shares with an estimated profit of about 21 billion dong, Mr. Do Thanh Nhan submitted his resignation from the position of member of the Board of Directors. The reason, according to Mr. Nhan, was because he was busy with personal work, so he couldn’t join the work at the company.

Louis Capital clarified.

Louis Capital stock started making waves from the beginning of August 2021, then increased hotly and peaked around VND 70,000/share on September 22, 2021. Previously, on Facebook appeared a personal page named Do Thanh Nhan, with the same name as a member of the Board of Directors of TGG, co-chair of the Board of Directors of An Giang Import-Export…

On this Facebook page, the owner “locks in” that, from then (early September 2021) to the end of the year, BII can’t get 3x, TGG can’t get 4X-5X, APG can’t get 2X, SMT can’t get 3X…” Everyone is welcome to curse.”

Facebook Do Thanh Nhan later deleted the shares, but the images still spread rapidly in social groups.

However, followed by a series of free fall days with millions of excess shares sold at the floor price each session. This becomes a nightmare. As of January 18, 2022, TGG’s stock price was only 11,600 VND/share before rebounding recently to the threshold of 25,000 VND/share.

From the end of September to November 2021, investors witnessed a terrible decrease in Louis shares and loss of liquidity. Many investors are stuck with tens of millions of shares on the floor every day, unable to cut losses. Stocks such as Louis Land, Louis Capital, APG Securities, An Giang Import-Export, Sametel, Thu Duc House, Dap – Vinachem, Vinh Khanh Plastic Cable dropped dozens of percent in a short time.

Going back in history, many stocks of the “Louis line” had poor business results. TGG suffered a loss, negative business cash flow, and was questioned by the audit about its ability to operate continuously in 2020. BII had to cancel its capital increase plan in 2016 and witnessed dozens of sessions falling to the floor and in 2019 being questioned. ability to operate continuously. BII suffered a heavy loss in 2020, was involved in a case of manipulating the stock price of Binh Thuan Minerals Joint Stock Company (KSA) in 2019. Thu Duc House did not pay enough taxes, so the Tax Department of Ho Chi Minh City blocked the invoice. March 30, 2022.

Recently, cash flow tends to withdraw from hot stocks. A brokerage director of a securities company said that a lot of information on the market is wrong, stemming from many groups, causing many investors to be at risk. The inspection, supervision and sanctioning activities of the authorities have been promoted, but it seems that the level of punishment is not strong enough to be a deterrent.

M. Ha