Sai Gon Plastics stock remains under trading restrictions amid audit concerns

The Hanoi Stock Exchange (HNX) announced that the shares of Sai Gon Plastics Joint Stock Company (UPCoM: NSG) will continue to be subject to trading restrictions.

The restriction is linked to NSG’s negative equity in its audited financial statements for 2025. In addition, the auditor refused to issue an opinion on the 2023 financial statements and did not accept the 2024 and 2025 financial statements in full.

Trading restriction and affected trading time

Under the trading restriction, NSG will only be allowed to trade in the weekly Friday session.

2025 audited results: losses and negative equity

According to the audited 2025 financial statements, NSG’s continued presence on the restricted trading list is primarily tied to a bleak business outlook. In 2025, NSG recorded a net loss of over VND 10 billion, compared with a loss of VND 9.8 billion in the prior year. This marks the seventh consecutive year of losses since 2019.

As of December 31, 2025, NSG’s accumulated loss was nearly VND 122 billion, pushing equity negative by more than VND 32 billion.

Qualified audit concerns: receivables, payables, and unrecorded costs

Beyond losses, NSG’s 2025 financial statements continued to carry a qualified audit opinion, mainly related to debt and payables.

First, the auditor, South Asia Financial Accounting and Auditing Services Co., Ltd (AASCS), could not obtain responses to a number of short-term receivables and payables, including:

• Trade receivables: over VND 3 billion
• Other receivables: VND 307 million
• Payables to suppliers: VND 2.4 billion
• Customer prepayments: VND 1.7 billion
• Other payables: VND 7.2 billion
• Short-term borrowings: VND 400 million

Second, NSG did not fully recognize interest expenses and late payment penalties, including more than VND 12.5 billion in tax penalties and interest, and penalties from banks. The company also did not record interest and penalties from other banks totaling VND 4.8 billion.

If these costs were fully accounted for, the 2025 results would reflect an additional loss of nearly VND 17.4 billion.

Going-concern risks and tax enforcement

AASCS also highlighted going-concern risks for NSG, including a current ratio below 1 due to accumulated losses, along with short-term loans, overdue debts, and interest payable totaling nearly VND 53 billion.

In particular, AASCS noted that NSG is subject to a debt-enforcement action by the Ho Chi Minh City Tax Department amounting to more than VND 26.4 billion. The enforcement includes freezing accounts and suspending invoicing for one year, from 11 August 2025 to 11 August 2026, which is expected to severely impact current production and business activities.

Company explanation and planned remediation

In its explanation, NSG said the failure to confirm debts is due to partners changing personnel, addresses, or having unstable operations. The company also cited that receivables dating from many years ago make tracking and reconciliation more difficult.

For interest and penalties exceeding VND 17.3 billion that have not been recorded, NSG stated it faces challenges reconciling cumulative data from previous years due to leadership changes and incomplete banking or tax records at the time of compiling the report.

NSG said it will review and fully account for these items in 2026 and develop a financial plan to address outstanding items.