We attended DGC’s 2026 EGM, where shareholders approved several key governance-related resolutions and highlighted the company’s long-term outlook. Overall, management emphasized DGC’s long-tenured, experienced workforce and accumulated production know-how as key competitive advantages. The newly appointed Board of Directors (BOD) aims for continuity rather than a strategic reset, with management reiterating its intention to inherit and further develop the previous leadership’s core business orientation and existing competitive strengths.
Corporate governance:
(1) BOD reshuffle: Dismissal of three BOD members (including the former Chairman and Vice Chairman) involved in the Government’s recent legal investigation, alongside the appointment of three new BOD members:
- Mr. Dao Huu Kha - Chairman of the BOD: He is the younger brother of former Chairman Dao Huu Huyen and currently holds a 5.97% stake in DGC, reinforcing the founding family’s continued direct influence over the company.
- Mr. Nguyen Quoc Trung: Head of the Project Department at DGC.
- Mr. Pham Duy Tung: CEO of Duc Giang Real Estate Company.
Overall, the new members already hold meaningful stakes and/or existing management roles within the DGC ecosystem, with no entirely new external members introduced.
(2) Auditor change: Shareholders approved the appointment of a new auditor (A&C or UHY), replacing PwC. DGC subsequently selected UHY.
Company outlook:
- Input materials: DGC’s captive apatite mine is currently suspended pending investigation-related processes. The company is temporarily relying on imported apatite from Pakistan and Egypt, resulting in higher input costs and pressure on GPM. Management expects part of the higher costs could gradually be passed on through higher selling prices, while the timeline for restarting the captive mine remains dependent on investigation outcomes.
- Project updates: The chlor-alkali project is now expected to begin partial trial runs in late Q3 to early Q4 2026, slower than both our forecast and DGC’s previous guidance of commercial operation in Q2 2026. Meanwhile, larger projects, including bauxite, will be further reviewed after the new BOD is fully established.
- 2025 audited FS: Management aims to release the 2025 audited financial statements as soon as possible, although the timing remains uncertain. DGC’s removal from controlled status will also depend on the audit outcome and timeline.
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