Chairman of Duc Giang Chemicals: "I don't know when we will return to a great victory year like 2022"

Mr. Dao Huu Huyen, Chairman of the Board of Directors of Duc Giang Chemicals, shared his thoughts when he did not know when the Company would return to the "great victory year" like 2022.

Revenue exceeded VND15,000 billion for the first time, due to high fertilizer prices, high yellow phosphorus prices and the operation of construction site 25. Due to high demand, the Company has maintained factories at excess capacity. In addition, by the end of 2022, the cash balance was nearly VND9,000 billion, which is very rare for the Company to accumulate such a large amount of cash.

Regarding the 2023 business plan, Duc Giang Chemicals set a business plan with revenue of VND 10,875 billion, down 24.7% over the same period and expected after-tax profit of only VND 3,000 billion, down 50.3% compared to the implementation in 2022.

For the 2023 investment plan , the Company plans to complete the Dak Nong NPK factory with an investment value of VND 50 billion; at the same time, the Company will start construction of the Duc Giang Nghi Son Chemical Complex with an investment value of VND 500 billion.

“Never before has the business plan been so bad, both revenue and profit decreased, with a profit of 3,000 billion VND. However, compared to the period of 2020-2021, this is still a good profit compared to the previous period and before equitization,” Dao Huu Huyen, Chairman of the Board of Directors of Duc Giang Chemicals, emphasized.

Regarding the dividend plan, in 2022, the Company presented shareholders with a 30% cash dividend plan (this dividend has been paid) and the expected dividend in 2023 is still 30%.

Mr. Dao Huu Huyen, Chairman of the Board of Directors of Duc Giang Chemicals, explained that according to the Enterprise Law , the Company can pay more dividends , but this is the time when the Company must keep money for investment.

After discussion at the General Meeting of Shareholders, the Board of Directors of Duc Giang Chemicals decided to increase the dividend to 40%. Thus, the dividend rate for 2022 is 40%, an increase of 10% compared to the previous proposal.

It is known that the Dak Nong NPK fertilizer project has completed basic construction, is installing machinery and is expected to be inaugurated on June 30, 2023.

“DGC shares were at one point up to VND200,000/share and now down to VND50,000/share due to the market. One day the market returns, DGC shares will return,” said Mr. Dao Huu Huyen, Chairman of the Board of Directors of Duc Giang Chemicals, about the recent sharp decline in stock prices.

Duc Giang Chemicals completes acquisition of Tia Sang Battery

Duc Giang Chemical Group has just purchased 3,440,252 shares of Tia Sang Battery JSC (Tibaco, code TSB - HNX floor) to increase ownership from 0% to 51% of charter capital, the transaction was conducted on March 21, 2023 at a price of VND 39,200/share, estimated investment value of VND 134.86 billion.

With the closing price of TSB shares on March 21 at VND36,000/share, Duc Giang Chemical Group bought 8.9% higher than the market price.

Notably, recently on January 5, 2023, Vietnam Chemical Group (Vinachem) sold all 3,440,300 TSB shares to reduce ownership from 51% to 0% of charter capital at a selling price of VND 39,200/share. On the contrary, the auctioned share buyers included 2 people: Ms. Bui Thi Ha Thu successfully purchased 3.1 million TSB shares to increase ownership from 0% to 45.9% of charter capital and Ms. Nguyen Thi Thu Ha purchased 343,995 TSB shares to increase ownership to 5.1% of charter capital.

It is known that Ms. Bui Thi Ha Thu is the wife of Mr. Dao Huu Duy Anh, member of the Board of Directors and General Director at Duc Giang Chemical Group.

It can be seen that, after more than 2 months since Vietnam Chemical Group divested capital from Tia Sang Battery JSC, Duc Giang Chemical Group bought back the shares of General Director Dao Huu Duy Anh's wife at the auction price and officially acquired Tia Sang Battery.

Source: https://baodautu.vn/chu-cich-hoa-chat-duc-giang-khong-biet-nam-nao-moi-quay-lai-nam-dai-thang-nhu-nam-2022-d186486.html