DQC Exits HOSE Warning Status but Stays Under Control: What It Means

Overview

HOSE has removed Điện Quang Group (HOSE: DQC) from both warning and control status effective September 25, 2026, following positive figures in the company’s reviewed H1 2026 financial statements. The stock nevertheless remains under control status because the auditor issued a qualified opinion on the consolidated financial statements for two consecutive years. The decision matters because DQC has carried some form of HOSE sanction since April 17, 2025.

Key Facts

• HOSE issued the decision on September 23, 2026, with effect from September 25, 2026.
• Reviewed H1 2026 statements show undistributed retained earnings of VND 129.7B and net profit attributable to parent shareholders of VND 13.9B.
• DQC was placed under both control and warning status on April 17, 2025, based on audited 2024 consolidated statements.
• On April 8, 2026, the stock was moved from warning to control status after a second consecutive qualified audit opinion, this time on the audited 2025 consolidated statements.
• The auditor’s qualification stems from provisioning and loss handling on supplier prepayments and hard-to-collect receivables.
• DQC’s closing price on September 26, 2026 was VND 9,750 per share.
• This is the second time DQC has entered control status; the earlier episode followed operating losses.

What Happened

According to the HOSE decision dated September 23, 2026, the exchange reviewed DQC’s reviewed semi-annual 2026 financial statements and recorded undistributed net profit after tax of VND 129.7B, alongside net profit attributable to the parent company’s shareholders of VND 13.9B. On that basis, the ticker was removed from the warning and control categories effective September 25, 2026. The company had been placed in both categories on April 17, 2025, when the auditor’s qualified opinion and negative retained earnings on the audited 2024 consolidated statements triggered the warning, while negative net profit in both 2023 and 2024 triggered control status.

However, the exchange kept the control classification in place because the auditor again issued a qualified opinion on the audited consolidated financial statements for 2025, following the earlier qualification on 2024. In its explanation, DQC attributed the audit qualifications to provisioning and loss treatment tied to supplier prepayments and doubtful receivables. The company said the Covid-19 pandemic and broader global economic difficulties from 2022 onward made it impossible to foresee that suppliers and customers would cease operations, forcing write-downs once collection deadlines passed. DQC also outlined business measures intended to address the underlying causes of the sanctions.

Market Context

DQC trades on HOSE and closed at VND 9,750 on September 26, 2026, the session after the status change took effect. The stock sits in the consumer discretionary space, specifically personal and household goods, a segment where demand has been uneven and where balance-sheet quality has become a differentiator for smaller listed names. The removal from warning status restores some trading flexibility, but the retained control classification means DQC continues to sit outside the exchange’s cleanest regulatory tier, a distinction that matters to institutional mandates with compliance screens.

Strategic Significance

For long-term investors, the central issue is not the H1 2026 profit but the recurring audit qualification. Positive retained earnings and a return to parent-level profitability address the original warning trigger, yet the same provisioning and receivables problem has now produced qualified opinions in two straight years. Until the auditor signs off without exception, DQC’s earnings quality remains contested, and any valuation case rests on recovery of prepayments and receivables rather than on the lighting and household goods franchise alone. The company’s ability to convert its stated remediation measures into clean audited accounts is the real test of whether this status change marks a durable turnaround or a temporary reprieve.

What to Watch

• The audited full-year 2026 consolidated financial statements and whether the auditor removes the qualified opinion.
• HOSE review of DQC’s status after the next annual audit cycle, expected in the first half of 2027.
• Disclosure on recovery or write-off of supplier prepayments and doubtful receivables.
• Quarterly profit trends confirming that H1 2026 parent net profit of VND 13.9B is repeatable.
• Any further HOSE announcement on the remaining control classification.