We do not interfere with foreign investors' transactions: chemicals group chairman

The chairman of Vietnam's leading chemical company Duc Giang Chemicals Group has said that the company's leaders are purely focused on production and business, and do not interfere with transactions of DGC shares by foreign investors, or resolve shareholders' disappointment.

Dao Huu Huyen made the statement at the company's 2023 annual general meeting on Wednesday.

At the meeting, the chemical giant set a revenue target of VND10.88 trillion ($463.17 million) for 2023, down 24.7% year-on-year, and after-tax profit of VND3 trillion ($127.77 million), down 50.3%.

In 2023, the company plans to complete its Dak Nong NPK factory project with an investment value of VND50 billion ($2.13 million). It will also start construction of the Duc Giang Nghi Son Chemical Complex at the cost of VND500 billion ($21.29 million).

"We have never set such low annual business targets. Both revenue and profit are down. However, compared to years 2020-2021 and the prior-equitization period, VND3 trillion is still a healthy profit," Huyen said.

This year, the company plans to pay a dividend of 30%, but has not yet decided whether to pay in cash or shares. Huyen said that the mode of dividend payment will depend on the implementation of investment projects.

At the meeting, some shareholders said they had bought DGC shares for VND140,000 ($5.96) per unit, borrowed on margin, and are still holding them. There has been a trend of foreign sell-offs of DGC, causing the stock to remain stagnant.

"I believe the DGC leadership knows. I recommend the management invests more, buys more DGC shares so that shareholders feel secure," one shareholder said.

In reply, chairman Huyen said: "Our job is to ensure production and business and ensure the livelihoods of our employees. We do not interfere with transactions by foreign investors or appease disgruntled shareholders. We know that the stock market is volatile, but no one thought liquidity would fall so sharply."

"We don't understand foreign investors. They once asked to buy 20% of DGC but we refused. As for buying shares, I'm also losing money right now. I can't fight the market alone," he added.

Huyen said that he did not want to buy more shares because he did not want his family to become the majority shareholder and he would sell out when the time was right. "At big international corporations, shareholders' 5-10% stakes are already big figures."

Shareholders at the meeting proposed an addition of 10% to the cash dividend for 2022, and received unanimous approval. Accordingly, the dividend for 2022 will be 40%.

In addition, in Q1/ 2023, DGC has set a consolidated revenue target of VND2.58 trillion ($109.8 million) and after-tax profit of VND700 billion ($29.81 million).