DGC Shares Restricted to Afternoon Trading from May 26 on Delayed Audit

Overview

HoSE has moved DGC shares of Duc Giang Chemicals from controlled to restricted trading status, effective May 26, 2026, due to the late submission of the audited 2025 annual report. The restriction limits trading to afternoon sessions only. The company also reported a sharp 49% decline in Q1 2026 net profit to 430 billion VND, pressured by higher raw material costs and a mine suspension.

Key Facts

• DGC shares will be restricted to afternoon-only trading from May 26, 2026, under HoSE Decision No. 445/QD-SGDHCM.
• The restriction follows a prior move from warning to controlled status on May 13, 2026 (Decision No. 364/QD-SGDHCM).
• Reason: delayed submission of the audited 2025 annual report by more than 45 days past the deadline.
• DGC appointed UHY Auditing and Consulting Co., Ltd. as its new auditor on May 11, 2026, and expects to complete the audit in Q2 2026.
• Q1 2026 net profit fell 49% year-on-year to 430 billion VND; revenue dropped 24% to 2,100 billion VND.
• Gross profit declined 50% to 489 billion VND, while financial income rose 5% to 172 billion VND.
• Total assets stood at over 18,000 billion VND as of end-March 2026.

What Happened

HoSE issued Decision No. 445/QD-SGDHCM on May 19, 2026, transferring DGC shares from controlled to restricted trading status. The restriction, effective May 26, limits trading to afternoon sessions only, using both order matching and negotiation methods. The move was triggered by DGC’s failure to submit its audited 2025 annual report within 45 days of the regulatory deadline, as stipulated under Article 42 of the Listing and Trading Regulations.

Previously, on May 13, DGC shares had been moved from warning to controlled status for the same reason (delay exceeding 30 days). In response, DGC’s board approved the appointment of UHY as its new auditor on May 8, signing the contract on May 11. The company stated that the audit is being expedited and expects to release the audited report in Q2 2026.

Separately, DGC published its Q1 2026 financial statements, showing net profit of 430 billion VND, down 49% year-on-year. Revenue fell 24% to 2,100 billion VND. The company attributed the decline to a sharp increase in input costs, particularly sulfur prices tripling year-on-year, along with higher electricity, coke, and ammonia costs. Additionally, the temporary suspension of Mine 25 for investigation forced DGC to rely entirely on imported and purchased ore, raising the cost of yellow phosphorus.

Market Context

DGC shares closed at 49,900 VND on May 19, 2026, down 3.29% with volume of 2.7 million shares. The stock has been under pressure from the ongoing audit delay and deteriorating earnings. The chemicals sector on HOSE has faced headwinds from rising global commodity prices and regulatory scrutiny. The trading restriction adds further uncertainty, potentially reducing liquidity and investor confidence in the near term.

Strategic Significance

The trading restriction highlights governance and compliance risks at DGC, which may weigh on the stock’s valuation until the audited report is released. The sharp profit decline in Q1 2026 underscores structural cost pressures from raw materials and operational disruptions. Investors will focus on the timing of the audit completion and any subsequent improvement in earnings. The company’s ability to resume normal trading and restore profitability will be key to long-term sentiment.

What to Watch

• Release of the audited 2025 annual report, expected in Q2 2026.
• HoSE’s decision to lift the trading restriction after the report is filed.
• Q2 2026 earnings and management’s guidance on cost trends and mine operations.
• Any further regulatory actions or penalties related to the delayed disclosure.
• Updates on the resumption of Mine 25 operations and its impact on production costs.