GELEX Ecosystem Stocks Hit Floor as Board Member Prosecuted

Overview

Shares in the GELEX ecosystem fell to their floor prices on 14 September after Dong Anh Electrical Equipment Corporation (EEMC) disclosed that board member Dang Phan Tuong had been prosecuted in the investigation into EVNNPT and PC1 Group. GEX, GEL and GEE all closed limit-down, with GEE touching a one-year low. The disclosure links a single individual to board seats across several listed GELEX-affiliated companies, raising governance questions for the group.

Key Facts

• GEX closed at VND 22,300 on 14 September, down 6.89%, its lowest level in about 1.5 months.
• GEL closed at VND 25,600, down 6.91%, also near a 1.5-month low.
• GEE closed at VND 57,700, down 6.94%, a one-year low and roughly 56% below its early-May peak.
• Turnover was heavy: GEX matched more than 24.5 million shares, GEL over 4.9 million, and GEE nearly 2.8 million.
• EEMC said it received notice from the Ministry of Public Security’s investigation police that Dang Phan Tuong was prosecuted in the case involving National Power Transmission Corporation (EVNNPT), PC1 Group and related units.
• Dang Phan Tuong has been an EEMC board member since November 2024 and chaired EVNNPT’s member council from 2011 to 2020; he also sits on the boards of GEE, Cadivi (CAV) and chairs Thibidi (THI).
• GELEX reported Q2 2026 net revenue of VND 14,480 billion, up 43% year on year, and consolidated after-tax profit of VND 1,354 billion, up 13%.

What Happened

EEMC, a unit within the GELEX ecosystem, published an unusual-information disclosure stating it had received notification from the Ministry of Public Security’s investigation police regarding the prosecution of Dang Phan Tuong. The notice relates to an ongoing investigation at EVNNPT, PC1 Group and related entities. EEMC did not specify the charge or any preventive measures applied to Tuong.

Tuong was elected to EEMC’s board in November 2024 for the 2024-2029 term. He previously served as chairman of EVNNPT’s member council from 2011 to 2020. Beyond EEMC, he holds board seats at GEE, Cadivi (CAV) and chairs Thibidi (THI), placing him across multiple listed names in the GELEX network. The sell-off was broad and mechanical: all three main tickers closed at their floor limits on the same session.

Market Context

GEX trades on HOSE, as do GEL and GEE. The simultaneous limit-down moves mark one of the sharpest single-session reactions in the group this year and came on elevated volume, suggesting forced or panic selling rather than gradual de-risking. GEE’s decline of about 56% from its early-May peak stands out even against a Vietnamese market that has been sensitive to governance and legal headlines in industrial and construction-linked names. The drop occurred despite GELEX’s Q2 2026 results showing revenue growth of 43% and profit growth of 13% year on year.

Strategic Significance

For long-term investors, the core issue is not the individual prosecution but the concentration of board-level roles across a family of listed companies. A legal action against one director can trigger disclosure obligations, committee reviews and potential board changes at several issuers at once, which is exactly what the market priced in on 14 September. GELEX’s operating momentum in electrical equipment and industrial goods remains intact on the Q2 numbers, so the gap between reported earnings growth and the share-price reaction reflects a governance discount rather than a demand shock. How the group handles board succession and disclosure at EEMC, GEE, CAV and THI will determine whether that discount persists.

What to Watch

• Further disclosures from EEMC, GEE, CAV or THI on Dang Phan Tuong’s board status or any replacement appointments.
• Any statement from the Ministry of Public Security investigation police clarifying the charge and scope of the EVNNPT-PC1 case.
• Q3 2026 earnings for GELEX and its affiliates, to confirm whether the Q2 revenue and profit growth trend holds.
• Trading volume and foreign-ownership filings in GEX, GEL and GEE for signs of institutional accumulation or continued exit.
• Any regulatory response from HOSE regarding disclosure timing or trading halts in the affected tickers.