DGC Holds Extraordinary Meeting to Elect New Leadership After Chairman's Prosecution

Overview

Duc Giang Chemicals Group (DGC) held an extraordinary shareholder meeting on May 8, 2026, to elect a new board of directors following the prosecution of former Chairman Dao Huu Huyen and his son. The new leadership, comprising three members with approximately 20 years of tenure at the company, committed to resolving legal issues and releasing audited financial statements to remove the stock from controlled status on the Ho Chi Minh Stock Exchange (HOSE).

Key Facts

• DGC held an extraordinary shareholder meeting on May 8, 2026, to elect a new board after former Chairman Dao Huu Huyen and his son were prosecuted.
• The new board includes three members who have been with DGC for about 20 years, according to CEO Luu Bach Dat.
• The company aims to select an auditor and release audited financial statements to lift the stock from controlled status, but no specific timeline was provided.
• The Nghi Son project remains on track, with partial trial runs targeted for late Q3 or early Q4 2026.
• Other large-scale projects will be delayed for review by the new board to ensure safety.
• DGC’s stock closed at VND 56 on April 15, 2026, down 1.07% with volume of 332,600 shares.
• The company acknowledged past legal shortcomings and committed to comprehensive legal compliance going forward.

What Happened

DGC convened an extraordinary shareholder meeting on May 8, 2026, primarily to elect a new board of directors after the former chairman, Dao Huu Huyen, and his son were prosecuted by authorities. The meeting also included a proposal to select an auditing firm. The new board, led by CEO Luu Bach Dat, who is also a board member, addressed shareholder concerns about the stock being placed under controlled status due to delayed financial reporting.

During the meeting, CEO Luu Bach Dat admitted to past legal oversights, calling them a “lesson” for the company. He assured shareholders that the new board would complete all pending legal matters to prevent recurrence. Shareholders questioned the experience of the new leadership, but Dat emphasized that the three proposed board members are long-serving employees with deep institutional knowledge. The new chairman is reportedly the younger brother of former chairman Dao Huu Huyen.

Market Context

DGC shares closed at VND 56 on April 15, 2026, down 1.07% with thin volume of 332,600 shares. The stock has been under pressure since the prosecution of its former chairman, leading to its classification as a controlled stock on HOSE. The chemicals sector in Vietnam has faced regulatory scrutiny, but DGC’s core business in phosphorus chemicals remains intact. The new leadership’s commitment to legal compliance and financial transparency is critical for restoring investor confidence and normalizing trading status.

Strategic Significance

The leadership transition at DGC marks a pivotal moment for the company’s governance. The new board’s focus on legal compliance and audited financials is essential to regain market trust and lift trading restrictions. The company’s technological edge in chemical production and experienced engineering team provide a competitive moat, but the delay of large projects signals a more cautious approach. The Nghi Son project’s progress will be a key indicator of operational continuity. Long-term investors should monitor the resolution of legal issues and the release of audited financial statements as catalysts for stock re-rating.

What to Watch

• Release of audited financial statements for fiscal year 2025 and timeline for lifting stock from controlled status.
• Progress of the Nghi Son project, particularly partial trial runs in late Q3 or early Q4 2026.
• Outcome of the official investigation into asset losses and off-book revenue, as mentioned by management.
• Annual general meeting for further strategic updates and project reviews.
• Any changes in foreign ownership limits or regulatory actions by the State Securities Commission.