DGC Shares Placed Under Control Status by HOSE, VN30 Index Inclusion at Risk

Overview

On May 6, 2026, HOSE announced the transfer of DGC shares from warning to control status due to a delay of over 30 days in submitting the 2025 audited financial statements. This regulatory action, effective May 13, 2026, follows the arrest of Chairman Dao Huu Huyen and Vice Chairman Dao Huu Duy Anh, and raises the risk of DGC being removed from the VN30 index.

Key Facts

• HOSE transferred DGC from warning to control status on May 6, 2026, effective May 13, 2026.
• The transfer was triggered by a delay of more than 30 days in submitting the 2025 audited financial statements.
• Chairman Dao Huu Huyen and his son, Vice Chairman Dao Huu Duy Anh, were arrested and detained, with company documents seized for investigation.
• DGC plans to hold an extraordinary general meeting on May 8, 2026, to select a new auditor and aims to complete the audit in Q2 2026.
• A shareholder group holding 45.41% of capital (including over 21% from the former chairman and his son) nominated three candidates for the board: Dao Huu Kha, Nguyen Quoc Trung, and Pham Duy Tung.
• DGC shares closed at VND 55,800 on May 6, up 5.28%.
• The stock risks removal from the VN30 index if control status persists, as index rules allow for unscheduled adjustments for stocks under control or special control.

What Happened

HOSE announced on May 6, 2026, that DGC shares would be moved from warning to control status due to a violation of disclosure deadlines. The company failed to submit its 2025 audited financial statements within 30 days of the deadline, a requirement for listed companies. This follows a previous warning status related to the same issue, compounded by the arrest of Chairman Dao Huu Huyen and Vice Chairman Dao Huu Duy Anh, which led to the seizure of company documents for investigation.

In response, DGC stated it is proceeding with procedures to select a new auditor, to be approved at an extraordinary general meeting on May 8, 2026. The company commits to completing the audit and full disclosure in Q2 2026. Meanwhile, a shareholder group controlling 45.41% of voting rights has nominated three candidates for the board, including Dao Huu Kha, the brother of the former chairman.

Market Context

DGC shares closed at VND 55,800 on May 6, up 5.28% despite the negative news. As of April 15, 2026, the stock was at VND 56, with a volume of 332,600. The chemicals sector on HOSE has been under pressure, and DGC’s regulatory issues add to uncertainty. The stock’s inclusion in the VN30 index is now at risk, which could lead to forced selling by index-tracking funds.

Strategic Significance

The control status and potential VN30 removal could significantly impact DGC’s liquidity and valuation. The company’s governance crisis, with key executives under investigation, raises concerns about operational continuity and financial transparency. The nomination of the former chairman’s brother to the board suggests an attempt to maintain family control, but the outcome of the investigation and the audit process will be critical for restoring investor confidence.

What to Watch

• Outcome of the extraordinary general meeting on May 8, 2026, regarding auditor selection.
• Completion of the 2025 audited financial statements and their content, expected in Q2 2026.
• Any updates on the criminal investigation involving former chairman Dao Huu Huyen and his son.
• HOSE’s decision on DGC’s VN30 index status at the next review or via unscheduled adjustment.
• Trading volume and price action as institutional investors may adjust positions.