HOSE lifts one DGC warning but trading curbs remain on late audit

Overview

HOSE has removed one warning reason for DGC (HOSE: DGC) after the company held its 2026 annual general meeting (AGM) on 13/08, but the stock remains under trading restrictions due to the late submission of audited 2025 financial statements and a qualified audit opinion. The ongoing legal issues involving former leaders and sharply lower profits continue to weigh on the stock.

Key Facts

• HOSE removed DGC from the warning list effective 24/08, citing the successful AGM held on 13/08.
• DGC was placed under warning and trading restrictions on 09/07 for failing to hold the AGM within six months of the fiscal year-end.
• The stock remains under trading restrictions due to the late submission of audited 2025 financial statements, exceeding 45 days past the regulatory deadline.
• DGC also remains under warning because the auditor issued a qualified opinion on the audited 2025 financial statements.
• Former Chairman Đào Hữu Huyền and Vice Chairman Đào Hữu Duy Anh were prosecuted and detained in May 2025.
• DGC targets 2026 revenue of VND 10.1 trillion and after-tax profit of VND 1.6 trillion, down 10.4% and 49% year-on-year, respectively.
• In Q2/2026, DGC reported net profit of VND 389 billion, down 54% year-on-year, the second consecutive quarter of halved profits.

What Happened

HOSE notified DGC that the stock would be removed from the warning list starting 24/08, as the company had remedied the violation of late AGM organization by successfully holding the meeting on 13/08. The exchange had imposed the warning and trading restrictions on 09/07 because the AGM was not held within six months of the fiscal year-end.

However, DGC remains under trading restrictions because it submitted its audited 2025 financial statements more than 45 days late. Additionally, the company is still under warning due to a qualified audit opinion on those statements. These issues arose after former Chairman Đào Hữu Huyền and his son, Vice Chairman Đào Hữu Duy Anh, were prosecuted and detained in May 2025.

Market Context

DGC closed at VND 43,050 on 21/08/2026, reflecting ongoing investor caution. The stock has been under trading restrictions since 09/07, limiting its liquidity. The chemicals sector, in which DGC operates, faces headwinds from rising raw material costs and operational disruptions. The company’s Q2/2026 results showed a 54% drop in net profit, the second consecutive quarter of sharp declines, as it had to use imported and purchased ore due to the suspension of its mine site 25 for investigation.

Strategic Significance

For long-term investors, the removal of one warning reason is a positive step, but the persistence of trading restrictions and the qualified audit opinion signal deeper governance and financial reporting issues. The legal troubles of former leaders and the sharp profit decline raise questions about management stability and operational resilience. The company’s 2026 plan already anticipates lower revenue and profit, indicating a challenging year ahead. Investors should monitor the resolution of the audit issues and the legal proceedings, as these will be critical for restoring normal trading status and investor confidence.

What to Watch

• Submission of audited 2025 financial statements and any subsequent lifting of trading restrictions.
• Resolution of the qualified audit opinion and any restatement of financials.
• Progress of legal proceedings involving former Chairman Đào Hữu Huyền and Vice Chairman Đào Hữu Duy Anh.
• Quarterly earnings reports for Q3 and Q4 2026 to assess profit recovery.
• Any updates on the resumption of operations at mine site 25.