DAG shares officially delisted from October 22

The last trading day of DAG shares of Dong A Plastics Group Joint Stock Company on HoSE is August 14, 2024 because this stock has been suspended from trading since August 15, 2024.

Ho Chi Minh City Stock Exchange (HoSE) announced the delisting of shares of Dong A Plastics Group Joint Stock Company (code DAG, HoSE floor) due to the listing organization's serious violation of information disclosure obligations.

Accordingly, more than 60.3 million DAG shares will be delisted from October 22, 2024. The last trading day on HoSE is August 14, 2024 because DAG shares have been suspended from trading since August 15, 2024.

DAG shares were suspended from trading due to continued violations of regulations on information disclosure on the stock market, after being placed on the restricted trading list. In addition, on the same day, August 15, 2024, DAG shares were also placed on the warning list due to the audit organization's exception to Dong A Plastic's audited financial statements for 2023. Along with that, the group's undistributed profit after tax at the end of 2023 was negative VND 588 billion.

Explaining the suspension of trading of shares, a representative of Dong A Plastics said that 2023 is a particularly difficult year for the business activities of plastic enterprises in general and the company and its units in particular. Activities are stagnant, products are unsold, and there is pressure to compete with Chinese goods. Therefore, the scale of the company's business activities must be reduced, the company must restructure to ensure business activities, many officers in charge of business activities and the accounting department have resigned, which has greatly affected the company's operations. In particular, the company is forced to collect invoices, leading to an increasingly difficult business situation.

Dong A Plastics was formerly known as Dong A Plastics Manufacturing and Trading Company Limited. The Group was established in 2001 with a charter capital of 2.5 billion VND. In 2006, the company converted to a joint stock company with a charter capital of 58 billion VND. DAG shares were also listed on HoSE since 2010. Dong A Plastics' business activities have begun to decline in the past 2 years.

In the first half of 2024, Dong A Plastic recorded revenue of only 55 billion VND, equivalent to 6% of the figure achieved in the same period last year. Operating below cost price, plus having to bear expenses such as loan interest, business management costs, etc., caused Dong A Plastic to have a net loss of 67 billion VND.

The financial report for the second quarter of 2024 shows that Dong A Plastic has many long-term loans from the Company's leaders, such as borrowing 100 billion VND from Board of Directors member Pham Ngoc Hinh, borrowing 40 billion VND from former Board of Directors Chairman Tran Viet Thang; borrowing nearly 184 billion VND from Board of Directors member Nguyen Ba Hung.

Dong A Plastics has a total debt of VND1,367.5 billion, a slight increase compared to the beginning of the year. Of which, short-term loans and financial lease debts are VND733.6 billion, long-term loans and financial lease debts are VND412 billion. In addition, Dong A Plastics has large provisions with a risk of capital loss. Specifically, the company is making provisions for short-term receivables that are difficult to collect up to VND118.5 billion, and provisions for inventory price reduction of approximately VND362 billion.

Source: https://baodautu.vn/co-phieu-dag-chinh-thuc-bi-huy-niem-yet-tu-ngay-2210-d227845.html