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| Davina Pharmaceutical Joint Stock Company is an affiliated company of Danapha and has the same headquarters at 253, Dung Sy Thanh Khe, Da Nang City. |
The extraordinary general meeting of shareholders (AGM) of Danapha Pharmaceutical Joint Stock Company (UPCoM: DAN) has passed a resolution agreeing on the policy of transferring all shares of Danapha Pharmaceutical Joint Stock Company at Davina Pharmaceutical Joint Stock Company to interested partners and investors; at the same time, assigning the board of directors (BOD) to search for and contact partners and investors to carry out the transfer of shares in accordance with regulations.
According to the report, the above transfer of shares comes from the difficult business situation of Davina Pharmaceutical Company.
Accordingly, in the first 6 months of 2025, Davina Pharmaceutical Joint Stock Company did not generate net revenue from sales and service provision.
The reason is that the search for potential customer markets and the orientation of cosmetic lines for business implementation are not yet positive, so Davina Pharmaceutical Company has not yet implemented production and business activities.
With no revenue but financial expenses of up to 146.22 million VND, sales and business management expenses of 42.02 million VND, Davina Pharmaceutical Company recorded a negative net profit from business activities of 188.26 million VND.
In 2024, Davina Pharmaceutical Company also did not generate revenue from sales and service provision, only had financial revenue of VND 0.33 million, but financial expenses amounted to VND 244.41 million and sales and business management expenses of VND 54.21 million; leading to a negative net profit from business activities of VND 298.29 million.
According to Danapha Pharmaceutical Joint Stock Company, with the above production and business situation, Davina Pharmaceutical Company will find it difficult to re-organize business activities in the last 6 months of 2025 and in the short term. Therefore, the business plan for the last 6 months of 2025 of Davina Pharmaceutical Company is 0 VND in net revenue from sales and service provision as well as total profit before tax.
This comes from the fact that Davina Pharmaceutical Company's accumulated losses up to now exceed its equity. If it cannot find another source of funding, Davina Pharmaceutical Company will no longer have capital to operate its production and business.
Regarding the capital source plan, Davina Pharmaceutical Company has no collateral, so accessing capital from banks and credit institutions to maintain and expand the Company's production and business activities in the current period is very difficult (even without personnel to implement the business); the plan to issue additional shares to increase equity is also not feasible.
Meanwhile, Davina Pharmaceutical Company is still struggling with financial pressure that cannot be improved in the short term.
Specifically, there are many debts payable to suppliers and customers with large values but the company is unable to pay such as principal and interest of the loan to Danhson Trading Company Limited to fulfill its obligations to the state; salary debts of employees; debts related to the implementation of the Danosome Pharmaceutical Factory Investment Project (the project terminated on April 12, 2023)... Meanwhile, the company has receivables but is unable to collect them.
Notably, in 2024 and up to now, the first 6 months of 2025, the Board of Directors, Board of Supervisors, General Director and staff of Davina Pharmaceutical Company proposed not to receive remuneration because the company has no profit from production and business activities, which partly reduces the financial pressure on the company.
Previously, from January 2023, the Board of Directors and Board of Supervisors of Davina Pharmaceutical Company also temporarily stopped receiving remuneration during the period when the company had no revenue and no profit.
Although it has made full provisions for its investment in Davina Pharmaceutical Company, given the difficulties in restoring Davina Pharmaceutical Company's operations as above, Danapha Pharmaceutical Company believes that continuing to maintain its investment in this company will not be effective.
To resolve the issue, Danapha Pharmaceutical Joint Stock Company proposed three solutions: carrying out bankruptcy procedures (Davina Pharmaceutical Company is considered an insolvent enterprise); dissolving and transferring all shares.
With all three options above, Danapha Pharmaceutical Company's investment in Davina Pharmaceutical Company may not be recovered or may recover very little compared to the amount spent.
“At the same time, Danapha’s Board of Directors also found that handling issues related to the investment in Davina Pharmaceutical Joint Stock Company is a serious issue, related to the company’s operations over many periods. According to Danapha’s Board of Directors’ assessment, the plan to transfer all shares is feasible, can be implemented quickly and achieves the highest efficiency,” Danapha Pharmaceutical Company explained.
Regarding the approved plan, Danapha Pharmaceutical Company also admitted that "with the current business situation of Davina Company, the agreed or assessed share transfer price is very low".
Davina Pharmaceutical's capital structure includes Danapha Pharmaceutical Joint Stock Company owning 49% of charter capital, equivalent to VND8.82 billion; Vietnam Pharmaceutical Corporation owning 25% of charter capital, equivalent to VND4.5 billion; Ms. Duong Huong Ly owns 26% of charter capital, equivalent to VND4.68 billion.
Source: https://baodautu.vn/cong-ty-duoc-danapha-chuyen-nhuong-co-phan-tai-cong-ty-duoc-davina-d360217.html
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