SVG Chairman and Two Senior Executives Resign Ahead of AGM, Profit Target Slashed 65%

Overview

SVG (Hoi Ky Nghe Que Han) announced the simultaneous resignation of its Chairman and two senior executives ahead of the annual general meeting scheduled for June 20, 2026. The company also reported a 65% decline in its 2026 pre-tax profit target compared to 2025, citing intense market competition, rising costs, and production disruptions. The stock closed at VND 3,600 with negligible trading volume.

Key Facts

• Chairman Le Ngoc Quang (born 1974) resigned as Chairman and Board member, citing work requirements and no longer being the capital representative of HCVN Group at SVG.
• Two supervisory board members, Truong Tuan Nghia (born 1993) and Vo Hong Nhung (born 1984), also submitted resignations effective from the AGM resolution date.
• SVG plans to hold its 2026 annual general meeting on June 20, 2026.
• The company targets 2026 revenue of VND 276 billion (flat) and pre-tax profit of VND 400 million, down 65% from 2025 actual results.
• SVG cites overcapacity in industrial gas products (oxygen, nitrogen) in Southern and Central Vietnam, leading to severe price competition.
• The shift of acetylene production from Bien Hoa to Nha Trang increases transport costs, and heavy rains and floods in November 2025 caused significant damage to inventory and assets at the Nha Trang plant.
• SVG stock closed at VND 3,600 on June 4, 2026, with a volume of only 2,000 shares.

What Happened

SVG (Hoi Ky Nghe Que Han) disclosed receiving resignation letters from three top executives: Chairman Le Ngoc Quang, and supervisory board members Truong Tuan Nghia and Vo Hong Nhung. All cited work requirements as the reason, with Quang stating he is no longer the capital representative of HCVN Group at SVG. The resignations take effect from the date of the AGM resolution.

Simultaneously, the company released its 2026 business plan, proposing revenue of VND 276 billion (flat year-on-year) and pre-tax profit of VND 400 million, a 65% decline from 2025. The company attributes the poor outlook to intense competition in the industrial gas market, rising electricity costs, and production disruptions. Specifically, the supply of oxygen and nitrogen has exceeded demand in Southern and Central Vietnam, driving down prices. The shift of acetylene production to Nha Trang has increased delivery costs, and severe weather in November 2025 damaged assets at the Nha Trang plant.

Market Context

SVG, listed on HOSE, has seen its stock price fall to VND 3,600, down 10% in the latest session, with extremely thin liquidity (2,000 shares traded). The company operates in the industrial gas and welding materials sector, which faces structural oversupply in key regions. The simultaneous resignation of top leadership adds governance uncertainty, compounding the weak operational outlook.

Strategic Significance

The mass resignation of the chairman and two supervisory board members signals potential internal governance issues or a strategic shift by the major shareholder, HCVN Group. The 65% profit decline target reflects deep structural challenges: overcapacity in industrial gases, rising input costs, and a shift away from manual welding rods. Without a clear turnaround plan, SVG’s competitive position may continue to erode. The company’s ability to attract new leadership and adapt its product mix will be critical.

What to Watch

• Outcome of the June 20 AGM: approval of the business plan and election of new board members.
• Any strategic announcements from HCVN Group regarding its stake in SVG.
• Q2 2026 earnings release to see if the profit decline materializes as guided.
• Progress on the Nha Trang plant recovery from flood damage.
• Changes in market share for industrial gases in Southern Vietnam.