Duc Giang Chemical Group plans factory transfer amid leadership changes and financial downturn

Duc Giang Chemical Group (DGC) is moving to transfer ownership of its alcohol factory, managed by its subsidiary in Dak Nong province. The company's board of directors has authorized the chairman and director of the subsidiary to seek a partner, negotiate the sale price, and finalize the contract, with the transfer expected in 2026.

This move comes as DGC navigates significant internal changes. The company recently held an extraordinary general meeting to appoint new board members after its chairman, Dao Huu Huyen, and other leaders were arrested. Three new members joined the board for the remainder of the 2024-2029 term, including Dao Huu Kha, the chairman's brother, who holds a substantial stake in the company.

Adding to its challenges, DGC's stock was moved from "controlled" to "restricted trading" status by the Ho Chi Minh City Stock Exchange due to a delayed submission of its audited 2025 financial statements. The company is working with UHY Audit and Consulting Company to expedite the audit process and expects to release the full financial report in the second quarter of 2026.

Financially, DGC reported a sharp decline in its consolidated first-quarter 2026 results. Net revenue fell by 24% year-on-year to VND 2,125 billion, while consolidated after-tax profit dropped by 48.6%. The company attributes this downturn primarily to a significant increase in the cost of raw materials, including electricity, coke, ammonia, and particularly sulfur, which tripled compared to the same period last year. Operations at the important Apatite mine in Lao Cai were also temporarily halted.