One of the projects PVSD plays a role in providing materials. Photo: Internet

Mr. Dinh Manh Thang, former Chairman of the Board of Directors of Song Da Petroleum Investment and Trading Joint Stock Company (PVSD, Stock Code: SDP), younger brother of Mr. Dinh La Thang, has just been arrested to investigate the act of embezzlement of assets. Previously, Mr. Dinh La Thang was also arrested on December 8.

PVSD - a joint venture between Vietnam Oil and Gas Group (PVN) and Song Da Corporation, formerly known as Song Da Trading and Transport Joint Stock Company, was established in 2003 under the Decision of the Ministry of Construction. The company's main business areas include construction and installation of civil and industrial construction works, import of raw materials and materials for construction material production, trading of petroleum and petroleum products, drilling additives, real estate trading, real estate investment, hotel business and tourism services...

Born in 1962, Mr. Thang graduated as a civil engineer and has a master's degree in business administration. Before joining PVSD in 2004, since 1986, Mr. Thang had worked for many years in companies under Song Da Group in different positions. Specifically, as General Director of Song Da 12.6 Enterprise, Officer of the Consumption Materials Department - Song Da Materials Supply Company, Crushed and Screened Concrete Enterprise - Song Da Hydropower Construction Corporation.

When joining PVSD in 2004, he held the role of Chairman of the Board of Directors and General Director. Since 2006, after transferring the position of General Director to other individuals, Mr. Thang also held the role of Party Secretary. He held these positions until April 15, when the PVSD Board of Directors approved his dismissal and assigned another person to take over.

Mr. Thang currently holds a total of 746,000 SDP shares. At current market prices, this volume of shares is worth about 2.7 billion VND.

During the 10 years Mr. Thang played the highest leadership role of PVSD, the business situation of the enterprise was not very positive. In some years, the company even reported negative profits, but thanks to other sources of income, PVSD escaped losses.

Over the past 3 years, the company's profits have not improved, and the profit margin on revenue is very low. With total assets always fluctuating between 700 and 800 billion VND, annual revenue of 500-700 billion VND, but after-tax profit is only a few billion VND.

Specifically, in 2014, revenue was 578 billion VND, profit was about 7 billion. In 2015, although sales revenue reached 710 billion VND, the company's profit was less than 2.5 billion. In 2016, the company's business activities declined even more when revenue only reached 465 billion VND, profit was 5.2 billion.

In particular, in the first 3 quarters of this year, PVSD's business results not only decreased in net revenue by more than 180 billion VND, but also recorded a loss of 2 billion.

During the years Mr. Thang ran PVSD, the remuneration for the board of directors, including the position of Chairman of the Board of Directors, approved by the General Meeting of Shareholders was usually calculated based on the plan completion rate, about 300 million per year. However, by the end of the year, the remuneration paid often exceeded the approved level.

According to VTC News