DGC Shares Restricted to Afternoon Trading from May 26 on HOSE

Overview

HOSE has reclassified DGC shares from controlled to restricted trading status effective May 26, 2026, limiting transactions to afternoon sessions only. The move follows DGC’s failure to submit audited 2025 financial statements within 45 days of the regulatory deadline. The company has appointed UHY Auditing and Consulting as its auditor and expects to complete the audit in Q2 2026.

Key Facts

• HOSE issued a decision on May 19, 2026, moving DGC from controlled to restricted trading status effective May 26, 2026.
• Under restricted status, DGC shares can only be traded in afternoon sessions via order matching and negotiated deals.
• The restriction is due to DGC delaying the submission of its audited 2025 financial statements by more than 45 days.
• Previously, on May 13, 2026, HOSE had moved DGC from warning to controlled status for a delay exceeding 30 days.
• DGC’s board approved the appointment of UHY Auditing and Consulting on May 8, 2026, and signed the audit contract on May 11, 2026.
• DGC reported unaudited Q1 2026 revenue of VND 2,125 billion (-24% YoY) and net profit of VND 430 billion (-49% YoY). Gross margin fell from 35% to 23%.
• DGC closed at VND 49,900 on May 19, 2026, down 3.29% with volume of 2.75 million shares.

What Happened

HOSE has reclassified shares of Duc Giang Chemicals Group (DGC) from controlled to restricted trading status, effective May 26, 2026. The exchange cited the company’s failure to submit its audited 2025 financial statements within 45 days of the regulatory deadline, which qualifies the stock for restricted trading under current rules. Under this status, DGC shares can only be traded in afternoon sessions through centralized order matching and negotiated transactions.

DGC management stated that the audit process is being expedited. The company appointed UHY Auditing and Consulting as its auditor on May 8, signed the contract on May 11, and expects the audited report to be issued in Q2 2026. DGC has committed to full disclosure once the report is signed and released. The delay follows an earlier escalation: on May 13, HOSE had already moved DGC from warning to controlled status due to a delay exceeding 30 days.

Market Context

DGC shares closed at VND 49,900 on May 19, 2026, down 3.29% on volume of 2.75 million shares. The stock has been under pressure since the initial warning and controlled status announcements. The chemicals sector on HOSE has seen mixed performance amid global commodity price fluctuations and domestic demand shifts. DGC’s unaudited Q1 2026 results show a sharp decline in revenue and profit, with gross margin contracting significantly, reflecting weaker pricing and higher input costs.

Strategic Significance

The trading restriction adds to DGC’s near-term liquidity challenges, as afternoon-only trading reduces daily trading windows and may deter some institutional investors. The delay in audited financials raises governance concerns, though the company’s appointment of a reputable auditor and commitment to timely filing may mitigate long-term reputational damage. DGC’s core business—chemical production—remains strategically important for domestic manufacturing, but the current regulatory overhang and weak Q1 results suggest a cautious outlook until the audit is completed and normal trading resumes.

What to Watch

• Completion of audited 2025 financial statements and subsequent filing with HOSE, expected in Q2 2026.
• HOSE’s decision to lift restricted trading status once the audit is submitted.
• Q2 2026 operational performance, particularly revenue and margin trends.
• Any further regulatory actions or penalties from the State Securities Commission.
• Foreign investor reaction, as restricted status may affect foreign ownership limits and trading activity.