DGC Nominates New Board Members Amid Exec Prosecutions, H1 Profit Down 49%

Overview

Duc Giang Chemicals (DGC) has announced the nomination of two candidates for election to its board of directors at an extraordinary shareholder meeting, following the prosecution of three senior executives. The company also reported a 49% year-on-year decline in H1 2026 net profit, reflecting operational and governance challenges. The moves are critical for investors tracking DGC’s recovery path on the Ho Chi Minh Stock Exchange (HOSE).

Key Facts

• DGC proposes two board candidates: Đỗ Văn Đông (born 1989) and Đào Đức Mạnh (born 1988), both current managers at the group.
• Đỗ Văn Đông is Deputy Head of Project Department and Chairman of Đức Giang - Đắk Nông; he has worked at DGC since 2013 and owns no shares as of July 14, 2026.
• Đào Đức Mạnh holds a Master’s in Finance-Banking, previously worked at Citibank Vietnam and NCB, and has been Head of Import-Export since late 2017; he owns 87,636 DGC shares (0.02% of charter capital).
• On July 22, 2026, three senior executives were prosecuted: Lưu Bách Đạt (Board member & CEO) and Phùng Trọng Tú (Deputy CEO) for environmental pollution; Nguyễn Quốc Trung (Board member) for violations in resource exploration and extraction.
• Earlier, on March 17, 2026, former Chairman Đào Hữu Huyền and former Vice Chairman Đào Hữu Duy Anh were prosecuted and detained for accounting violations, resource exploitation, and environmental pollution.
• H1 2026 net revenue reached VND 4,540 billion, down 20.4% YoY; pre-tax profit was VND 1,004 billion; net profit was VND 871 billion, down ~49% YoY.
• DGC shares closed at VND 40,550 on August 5, 2026, reflecting a steep decline over the past year.

What Happened

DGC announced the nomination of two internal candidates to fill board vacancies at an extraordinary general meeting. The nominees, Đỗ Văn Đông and Đào Đức Mạnh, are both long-serving managers, signaling an effort to stabilize governance after a series of legal actions against top executives.

The prosecutions stem from alleged environmental pollution, resource exploitation, and accounting violations. The company’s H1 2026 financial results show a significant drop in profitability, with net profit down 49% year-on-year, as revenue fell 20.4%. The board expansion appears aimed at restoring investor confidence and ensuring operational continuity.

Market Context

DGC (HOSE) has been under severe pressure, with shares trading at VND 40,550 as of August 5, 2026, down from much higher levels a year ago. The stock has been hit by repeated legal setbacks and deteriorating earnings. The chemicals sector in Vietnam faces regulatory scrutiny, and DGC’s governance issues have amplified its underperformance relative to the broader market. The proposed board additions may be seen as a step toward normalization, but the earnings decline and legal overhang remain key concerns.

Strategic Significance

For long-term investors, DGC’s ability to rebuild its board with experienced internal managers is a positive signal of continuity, but the legal risks and profit slump are substantial. The company’s core chemical operations, including phosphorus products, remain strategically important, but regulatory compliance and environmental standards are now critical. The new board members’ backgrounds in project management and finance could help steer DGC through restructuring and potential asset divestments. However, the outcome of the prosecutions and the company’s ability to restore profitability will determine its long-term viability.

What to Watch

• Outcome of the extraordinary shareholder meeting and election of new board members.
• Further legal developments in the prosecutions of current and former executives.
• Q3 2026 earnings report to see if the profit decline stabilizes or worsens.
• Any asset sales or restructuring plans, including the ethanol plant divestment.
• Regulatory actions or fines that could impact DGC’s financial position.