Duc Long Gia Lai (DLG) divests from Mass Noble after 2 consecutive years of losses

Duc Long Gia Lai Group Joint Stock Company (Code DLG) has just announced the Board of Directors' Resolution on restructuring the capital contribution investment at Mass Noble Investments Limited Company.

Previously, Duc Long Gia Lai invested more than VND249 billion in Mass Noble Investments Limited (Mass Noble). Thereby, DLG holds up to 97.7% of shares in this subsidiary. Mass Noble's headquarters is located in the Virgin Islands.

Duc Long Gia Lai (DLG) has suffered losses for two consecutive years, planning to divest from its subsidiary Mass Noble (Photo TL)

At the time of the acquisition of Mass Noble in 2015, Duc Long Gia Lai issued nearly 20 million shares to existing shareholders at a conversion price of VND12,500/share. The company operates mainly in the field of manufacturing electronic components.

As for Duc Long Gia Lai, the company struggled to get through 2022 and 2023 with record losses of VND1,197 billion and VND579 billion, respectively. If it continues to lose money in 2024, DLG shares will face the risk of being forced to delist.

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 reached 69 billion. After deducting expenses and taxes, DLG also recorded a profit of 35 billion VND.

Compared to the plan set for 2024 with revenue of 1,400 billion and profit after tax of 120 billion, DLG has completed 19% of the revenue plan and 29% of the profit plan for the whole year.

Source: https://www.congluan.vn/duc-long-gia-lai-dlg-thoai-von-khoi-mass-noble-sau-2-nam-lien-thua-lo-post303944.html