Duc Long Gia Lai (DLG) has suffered losses for 2 consecutive years, facing delisting in 2024

Duc Long Gia Lai Group Joint Stock Company (Code DLG) operates in many fields such as infrastructure, real estate, energy, electronic components manufacturing, agriculture...

In 2022 and 2023, Duc Long Gia Lai reported losses twice. The record loss in 2022 was VND 1,197 billion, the company continued to lose another VND 579 billion. Thus, if DLG continues to lose in 2024, this unit will face the risk of forced delisting.

Duc Long Gia Lai (DLG) suffered heavy losses for 2 consecutive years, debt is 5 times greater than equity (Photo TL)

In the first quarter of 2024, Duc Long Gia Lai had a certain recovery compared to the end of 2023. The company's revenue reached 266 billion VND, gross profit 69 billion. After deducting additional expenses and taxes, DLG made a profit of more than 35 billion VND.

Compared with the plan set for 2024 with revenue of VND 1,400 billion and profit after tax of VND 120 billion, in the first quarter, DLG completed 19% of the revenue plan and 29% of the annual profit plan.

By the end of the first quarter of 2024, Duc Long Gia Lai's total assets reached VND 5,020 billion. Notably, short-term receivables decreased to only VND 468 billion. The provision for short-term doubtful receivables increased to VND 1,926 billion, showing that DLG's operating risks are relatively high.

The capital structure also shows risks when liabilities account for VND4,455 billion, equivalent to 88.7% of total capital. The company's total short-term and long-term debt accounts for VND2,722 billion, nearly 5 times higher than current equity.

Source: https://www.congluan.vn/duc-long-gia-lai-dlg-lo-lien-2-nam-doi-mat-voi-an-huy-niem-yet-trong-nam-2024-post300557.html