DQC Audited 2025 Profit Falls 58% After SSC Fine for Misreporting

Overview

Dien Quang Group (HOSE: DQC) reported audited 2025 consolidated net profit of nearly VND 4.9bn, down 58% from the pre-audit figure of roughly VND 11.5bn. The State Securities Commission fined the company VND 150m for disclosing inaccurate profit information, and DQC has since published a correction and explanation of the variance.

Key Facts

• Audited 2025 consolidated net profit: nearly VND 4.9bn, versus roughly VND 11.5bn pre-audit, a decline of 58%.
• Total downward adjustments: approximately VND 6.7bn.
• Largest single adjustment: VND 4.25bn in additional corporate income tax expense, linked to a 100% provision on a VND 21.25bn investment by subsidiary Dien Quang High Technology Co. into Xelex.
• Second adjustment: roughly VND 1.23bn of dividend income from Vietnam Textile and Garment Group, recognised on the 31/12/2025 record date but reclassified because the payment date was 06/03/2026.
• Other cost adjustments during the audit: approximately VND 1.2bn.
• Fine: VND 150m under Decision No. 498/QD-XPHC dated 9/9/2026, plus a requirement to cancel or correct the misstated information.
• DQC shares closed at 9,800 on 20/09/2026.

What Happened

According to the State Securities Commission’s Decision No. 498/QD-XPHC, issued on 9 September 2026, Dien Quang Group was fined VND 150m for publishing an incorrect 2025 after-tax profit figure. The regulator also ordered the company to cancel or amend the inaccurate disclosure. DQC subsequently released a correction notice, a supplementary explanation, and a remediation statement covering the 2025 net profit line.

The company attributed the gap to three audit adjustments. The largest, VND 4.25bn, concerns a full provision taken by subsidiary Dien Quang High Technology Co. against a VND 21.25bn investment in Xelex; auditors determined the provision did not qualify as a deductible expense for corporate income tax purposes, so DQC booked additional tax expense. Separately, nearly VND 1.23bn of dividend income from Vietnam Textile and Garment Group was removed from 2025 financial revenue because entitlement depends on the 06/03/2026 payment date rather than the 31/12/2025 record date. A further roughly VND 1.2bn of cost adjustments was recorded in 2025. DQC said it will tighten data verification before future disclosures.

Market Context

DQC trades on the HOSE and closed at 9,800 on 20/09/2026, a level that places the stock in the low-priced segment of the exchange. The company sits in the consumer discretionary lighting and electrical-equipment space, where demand is tied to construction, residential and industrial fit-out cycles. The restatement and regulatory penalty arrive against a Vietnamese market backdrop in which disclosure quality and audit scrutiny have drawn increasing attention from the SSC, making restatement risk a live valuation factor for small-cap industrials.

Strategic Significance

The core issue for long-term holders is not the VND 150m fine but the VND 4.25bn tax charge on the Xelex provision, which signals that the subsidiary’s investment is impaired and that the loss is not tax-shielded. Combined with the dividend-timing correction, the episode points to internal control gaps in revenue recognition and tax provisioning at the group level. For a company of DQC’s size, where audited profit is now under VND 5bn, the credibility discount applied by investors may persist until several clean reporting cycles pass.

What to Watch

• The 2026 interim and annual financial statements, to confirm whether the strengthened verification process reduces pre-audit versus audited variances.
• Any further SSC action or additional disclosure requirements following the correction order.
• Updates on the Xelex investment, including whether the provision is reversed, extended or written off.
• Recognition of the Vietnam Textile and Garment Group dividend in 2026 revenue, per the 06/03/2026 payment date.
• Liquidity and foreign-ownership data for DQC on HOSE, given the stock’s low absolute price.