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Vinachem to auction stake in Đức Giang Chemical Group

Update: December, 10/2019 - 12:07


Đức Giang-branded washing powder made by Đức Giang Chemical Group JSC (DGC). DGC is a state-owned enterprise established in 1963 and specialises in washing powder production. Photo

HÀ NỘI — The Việt Nam National Chemical Group (Vinachem) has registered to auction all 11.45 million shares it holds in Đức Giang Chemical Group JSC (DGC), equivalent to 8.85 per cent of DGC’s capital.

The shares will be offered at a starting price of VNĐ49,100 (US$2.1), nearly double the current market price of VNĐ27,000.

Vinachem expects to collect VNĐ560 billion from the sale. The transaction time is scheduled for December 31 at the Hà Nội Stock Exchange (HNX).

DGC is a State-owned enterprise established in 1963 and specialises in washing powder production.

The company was equitised in 2004. It filed for listing on the HNX in early November with a registered volume of more than 129 million shares.

In the third quarter of 2019, DGC's net revenue reached VNĐ1.15 trillion, down 23 per cent year-on-year. Its sales also decreased by 16 per cent year-on-year.

Its pre-tax profit touched VNĐ122 billion. Post-tax profit reached VNĐ116.5 billion, a fall of more than half compared to the third quarter last year.

In the first nine months of this year, the company's net revenue reached VNĐ3.6 trillion, down 12 per cent against 2018, of which export revenue reached VNĐ2.8 trillion, accounting for 78 per cent of the total revenue. Post-tax profit in the nine months totalled VNĐ397 billion, down 36 per cent, fulfilling 45.5 per cent of the yearly target.

By the end of the third quarter, the company's inventory had increased by VNĐ113 billion compared from the beginning of the year to approximately VNĐ910 billion.

Total assets also decreased by VNĐ180 billion to VNĐ4.55 trillion, while liabilities dropped by VNĐ420 billion to VNĐ1.14 trillion. — VNS

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