Shares of Duc Giang Chemicals Group (DGC) experienced three consecutive sessions at their floor price. Despite being offered at the lowest possible trading range, millions to tens of millions of shares remained unmatched due to insufficient buyers each session.

From 93,000 Vietnamese dong per share on 15/12, DGC's price fell to 74,900 Vietnamese dong at the close of today's trading. This represents a nearly 36% decline compared to its market price at the beginning of the year. The company's market capitalization also dropped significantly, now standing at over 28,445 billion Vietnamese dong, a loss of more than 15,800 billion Vietnamese dong since the start of the year.

Amidst this downturn, the stock market assets of Mr. Dao Huu Huyen, Chairman of the Board of Directors, were reduced by trillions of Vietnamese dong. He holds nearly 69,8 million shares, representing about 18,38% of the capital and making him DGC's largest shareholder. Just three sessions of DGC shares hitting the floor led to a decrease of nearly 1,300 billion Vietnamese dong in the value of his shares. Compared to the beginning of the year, this decline amounts to over 2,900 billion Vietnamese dong.

Furthermore, several members of Mr. Huyen's family also own DGC shares. His sister-in-law, Ngo Thi Ngoc Lan, holds over 25,2 million units. His brother, Dao Huu Kha, follows with nearly 22,7 million shares. His wife, Nguyen Thi Hong Lan, owns nearly 14,3 million units. His children, Dao Huu Duy Anh and Dao Hong Hanh, hold 11,4 million and 5,1 million shares, respectively.

In total, Mr. Huyen's family controls nearly 154,7 million DGC shares, equivalent to 40,74% of the company. After just three sessions at the floor price, their collective assets plummeted by approximately 2,800 billion Vietnamese dong. When compared to the beginning of the year, the family's total loss exceeds 6,400 billion Vietnamese dong.

Mr. Dao Huu Huyen, Chairman of the Board of Directors of Duc Giang Chemicals Group. Photo: DGC

Duc Giang Chemicals Group, established in 1963, was formerly under the General Department of Chemicals. The company was privatized in 2003. Its primary operations involve producing various chemical products such as phosphoric acid, yellow phosphorus, fertilizers, detergents, and caustic soda (NaOH). It is considered one of the leading enterprises in the production of phosphorus and basic chemicals.

For the first nine months of the year, net revenue reached 8,521 billion Vietnamese dong, an increase of 14% compared to the same period last year. Duc Giang Chemicals Group's net profit was 2,403 billion Vietnamese dong, up 7% compared to the first nine months of 2024. Bolstered by strong business results, the company held 13,100 billion Vietnamese dong in cash and deposits, equivalent to nearly 500 million USD, accounting for 67% of its total capital as of the end of September.

Recently, some securities firms have expressed concerns regarding a potential increase in the export tax on phosphorus and the risk of DGC shares being removed from the VN30 index in upcoming restructuring periods. However, according to Kafi Securities, an export tax increase is unlikely to cause significant damage to Duc Giang's phosphorus market share. This is because their product is considered irreplaceable in the East Asian market, allowing the company to potentially pass the tax obligation onto customers. Concurrently, the Nghi Son chemical complex project is accelerating its progress towards commercial operation, which is seen as a solution to mitigate these risks.

During the annual general meeting in late March, Mr. Dao Huu Huyen offered "condolences" to individual investors who lost money, stating that stock prices depend on many factors beyond management's predictions. He advised people to hold their shares but not to buy or sell more. He also expressed confidence that the company would achieve stronger growth in the next five years. At that time, DGC shares were adjusting to below 100,000 Vietnamese dong, a decrease of over 13% compared to the beginning of the year.

Tat Dat