Dong A Hotel (DAH) business declines, shareholders acquire 2 million shares

Major shareholder appears to acquire 7 million DAH shares

Dong A Hotel Group (Code DAH) is formerly Dong A Investment, Construction and Trading Joint Stock Company, established in 2003, operating in the field of hotel services.

Recently, Dong A Hotel announced a transaction report to buy 2 million DAH shares from Mr. Pham Huy Thanh, increasing Mr. Thanh's ownership to 7 million shares, equivalent to 8.3% of charter capital.

Dong A hotel business reduced large shareholder bid 2 million shrimp with stock picture 1 — Business decline, major shareholder still acquires 2 million shares of Dong A Hotel (Photo TL)

According to the market price recorded on the trading date of December 18, 2023 at VND 4,620/share, it is estimated that Mr. Thanh had to spend about VND 9.2 billion to acquire the above shares. After the transaction, Mr. Thanh became the second largest shareholder at DAH, after Mr. Tran Minh Tuan, Vice Chairman of the Board of Directors.

Business decline, revenue decline of hundreds of billions of dong

The business situation of hotels and restaurants in general is being greatly affected by the pandemic, along with the economic recession.

Since the beginning of 2022, Dong A Hotel has also recorded a gloomy business situation when both revenue and profit have plummeted.

Specifically, in 2022, Dong A Hotel recorded revenue of only VND 25.7 billion, down 96.3%. However, the company's after-tax profit still grew, reaching VND 43.3 billion.

Entering 2023, in the first 3 quarters of the year, DAH's revenue continued to decline. In the first quarter of 2023, the company achieved revenue of 6.4 billion VND, increased to 12.3 billion in the second quarter and maintained at 12.7 billion VND in the third quarter.

The company's after-tax profit during this period only remained at a few hundred million VND per quarter. Recorded at 796 million VND in Q1, it decreased to 512 million VND in Q3/2023.

DAH's accumulated revenue in the first 9 months of the year reached 31.5 billion VND, nearly 3 times higher than the same period last year. However, after-tax profit was only 1.9 billion VND, down 95%.

Business decline, still acquiring more Van Phong Tourism

Business results were not very bright in the first 3 quarters of 2023, but recently, the Board of Directors of Dong A Hotel approved the transfer of shares of Van Phong Tourism JSC.

The number of shares transferred is 2.25 million shares, the transfer price is 79,000 VND/share, equivalent to a value of nearly 178 billion VND. After the transaction, Van Phong Tourism will become a subsidiary of Dong A Hotel.

Notably, on the same day, December 13, 2023, the Board of Directors of Dong A Hotel approved the transfer of 6 million shares of Green Island JSC at a price of VND 10,833/share. Corresponding to a value of about VND 65 billion.

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