Indochina Import Export (DDG) stock price drops 86%, leaders divest capital

DDG suffered a heavy loss of 193 billion VND in the second quarter.

Dong Duong Import-Export Industrial Investment Joint Stock Company (HNX Code: DDG) was formerly Dong ThanhEducation Development Investment Company Limited, established in 2010 and converted to a joint stock company in 2016.

The company operates mainly in the field of design, investment in construction of steam-heat-electricity supply systems, trading in biomass fuel and agricultural waste used as direct combustion fuel.

Dong Duong Import Export DDG has 86 consecutive leaders in the form of a dialogue 1 — DDG recorded unsatisfactory business results, with a loss of up to 193 billion in the second quarter of 2023 (Photo TL)

In 2023, DDG continuously recorded poor business performance. Most notably, in the second quarter of 2023, revenue reached VND 190.9 billion but business results still recorded a loss of VND 193.5 billion.

The reason is that the company recorded financial expenses of more than VND 192 billion. This is mainly the expense arising from interest and other expenses. At the 2023 Annual General Meeting of Shareholders, DDG leaders also said that the factories are operating at low capacity due to customers reducing output. Therefore, the company is having to switch to other products to improve the situation.

Entering the third quarter of 2023, DDG's revenue dropped to VND 177.8 billion. The company recorded a net loss from business operations of nearly VND 10 billion. Profit after corporate income tax also reached just over VND 1.2 billion, down nearly 10 times compared to the same period last year.

Company leaders continuously divest capital

It is quite strange that in the context of huge business losses, the company's key leaders and shareholders continuously made moves to divest capital.

Specifically, on January 16, 2023, DDG announced the transaction of registering to sell shares of the Chairman of the Board of Directors and Deputy General Director. In which, Mr. Tran Kim Cuong, Member of the Board of Directors and Deputy General Director of DDG sold 500,000 shares, reducing the ownership ratio of DDG from 2.92% to 2.09% for personal financial reasons.

Chairman of the Board of Directors, Mr. Nguyen Thanh Quang, has also registered to sell 1 million shares, reducing his ownership of DDG from 2.23% to 0.56%. Previously, Mr. Quang registered to buy 1 million shares but failed due to changes in financial plans and personal financial arrangements. The transactions of the two DDG leaders will be carried out from January 23 to February 22, 2024, by order matching or negotiation.

Notably, for Deputy General Director Cuong himself, this is the third time he has divested capital from DDG since the beginning of 2023. However, the previous transactions were due to foreclosure sales. In addition to his positions at DDG, Mr. Cuong is also the younger brother of Ms. Tran Kim Sa - Member of the Board of Directors and General Director of DDG.

As for Mr. Quang, this Chairman of the Board of Directors has also had his DDG shares mortgaged twice by a securities company.

"Hot" stock that once reached a peak of 43,000 VND/share, its price dropped nearly 86% in just 1 month.

Talking about DDG stock, this code once peaked at 43,000 VND/share and maintained this price for a long time until mid-April 2023. However, within just 1 month with 19 consecutive "floor" sessions, DDG plummeted to below par value.

Recorded from April 10, 2023 to May 9, 2023, DDG stock price plummeted to the price range of VND 6,000/share and so far there have been no significant signs of recovery.

On January 17, 2023, DDG code recorded a price of VND 5,700/share, equivalent to a decrease of 86.7% in value compared to the beginning of April 2023.

Thus, if investors bought DDG shares from the beginning of 2023, they would have lost almost all their capital in just 1 month of trading.

Source