Major shareholder Tianjin continuously sells DIG shares, continues to sell 8.4 million more shares
In March, the shareholder structure of DIC Corp JSC (code DIG) continuously fluctuated when the major institutional shareholder, Thien Tan Development Investment JSC, continuously sold a large amount of shares it held.
specifically, on March 3, Thien Tan Development Investment Joint Stock Company sold 3,627,100 DIG shares. Then, on March 14, Thien Tan continued to register to sell 2 million DIG shares. Up to now, Thien Tan has continued to sell 8.4 million DIG shares to reduce its ownership ratio to only 6.98% of charter capital at DIC Corp.
DIC Corp (DIG), a major shareholder of Tianjin, continuously sold off shares, continuing to sell an additional 8.4 million shares (Photo TL)
If we look at the transaction history further back, as of May 16, 2022, Tianjin still owns 18.07% of the charter capital at DIC Corp and is the largest shareholder. However, in less than 1 year, this company has sold a large amount of DIG shares to reduce its ownership ratio to only 6.98%.
On the other hand, on March 17, Mr. Nguyen Hung Cuong, Vice Chairman of the Board of Directors, who is also the son of Mr. Nguyen Thien Tuan, Chairman of the Board of Directors of DIC Corp, registered to buy 5 million DIG shares to increase his ownership ratio from 8.85% to 9.66% of charter capital.
Regarding the relationship between Thien Tan and the family of Chairman Nguyen Thien Tuan, this company had many direct transactions with DIC Corp in private issuances in 2015 and 2021. Not only that, in the 2020 transaction report of this unit, Ms. Le Thi Ha Thanh (wife of DIC Corp's Chairman) was also introduced as Chairwoman of the Board of Directors of Thien Tan, Mr. Nguyen Hung Cuong (son of DIC Corp's Chairman) as a member of the Board of Directors of Thien Tan and Ms. Nguyen Thi Thanh Huyen (daughter of DIC Corp's Chairman) as a member of the Board of Directors of Thien Tan. However, not long after that, the names of Mr. Tuan's family members no longer held important positions in Thien Tan.
DIC Corp has major problems with business cash flow, negative up to 2,500 billion VND
In the trading session on March 24, 2023, DIG stock recorded a transaction at VND 12,750/share, a sharp decrease compared to the VND 86,250/share achieved in March last year. This is also relatively understood when looking at DIG's business results in 2022.
specifically, DIC Corp recorded revenue of VND 1,909 billion, down about 25.7% compared to 2022. Notably, the company's after-tax profit decreased by 85%, only recording VND 144 billion. Compared to the plan set for 2022, this unit has only completed 38% of the revenue plan and less than 10% of the profit plan.
The reason for the sharp decline in DIC Corp's profits is also due to the pressure from increased costs during the period. specifically, financial costs during the year accounted for 264 billion VND, an increase of 158% compared to the same period last year, with interest accounting for the majority, up to 245 billion VND.
In the debt structure of DIC Corp as of the end of the fourth quarter of 2022, DIC Corp's debt was nearly 7,000 billion VND, down 2,180 billion VND compared to the beginning of the year. Of which, short-term financial debt increased to 1,005 billion VND, long-term debt decreased to only 2,840 billion VND. Of which, 1,800 billion VND were bank loans, the rest were personal loans.
In terms of cash flow structure, DIC Corp is also facing a big problem as its operating cash flow is continuously negative. This shows that the company is not earning enough to cover its expenses. Net cash flow from operating activities in 2022 is negative by VND 2,500 billion. Cash and cash equivalents also decreased sharply from VND 755 billion to only VND 246 billion, showing that the liquidity of assets held by DIC Corp has seriously declined.
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