Amid billion-dollar ambitions, the family assets of tycoon Dao Huu Huyen 'evaporated' thousands of billions

Despite the ambition to carry out a billion-dollar project, Duc Giang Chemicals' business results have recently slowed down and its shares have also dropped, causing tycoon Dao Huu Huyen and his relatives to lose up to thousands of billions of dong in assets.

DGC shares of Duc Giang Chemical Group, chaired by tycoon Dao Huu Huyen, fluctuated quite strongly in 2024.

After a sharp increase in the first half of the year following news that its subsidiary was participating in research and development of Lithium batteries, DGC fell rapidly in July, at times falling close to VND100,000/share, then recovered slightly in August.

However, recently, this stock has been on a downward spiral. In just the last ten sessions, DGC stock has lost more than 9% of its value, from 116,600 VND/share (November 13) to only 105,900 VND/share (November 22).

DGC shares fell amid a gloomy stock market. The VN-Index fell from 1,246.04 points on November 13 to 1,228.1 points on November 22.

Duc Giang Chemicals' recent business results have not been very positive. Photo: DGC

With the stock price plummeting, the assets of Mr. Dao Huu Huyen and related people decreased significantly during the above period.

Specifically, with holding nearly 69.8 million shares, equivalent to 18.38% of charter capital, Mr. Huyen's assets have decreased by more than VND 746 billion, currently remaining at VND 7,391 billion.

Similarly, Ms. Nguyen Thi Hong Lan, Mr. Huyen's wife, is holding 14.3 million shares, down more than 153 billion VND, now worth more than 1,514 billion VND.

In addition, Mr. Huyen's two children, Mr. Dao Huu Duy Anh and Ms. Dao Hong Hanh, own 11.4 million and 5.1 million shares respectively, also decreasing by more than 176 billion VND.

Mr. Huyen's family's total assets "evaporated" more than 1,070 billion VND in just the past 10 days.

In 2022, tycoon Dao Huu Huyen became famous in the stock market with the saying "an environmental sanitation worker of the company also has 35 billion VND, an engineer has more than 100 billion VND thanks to owning DGC shares".

The announcement came as Mr. Huyen's business recorded impressive growth in business results.

Accordingly, in 2021, DGC achieved a breakthrough in both revenue and profit after tax, reaching VND 9,550 billion and VND 2,513 billion, respectively, up 53% and 165%. In 2022, DGC continued to record outstanding business results, with revenue reaching VND 14,444 billion, up 51.2% and record profit after tax of VND 6,036 billion, up more than 140% compared to 2021.

DGC stock price increased rapidly from VND 24,500/share in early 2021 to over VND 100,000/share in April 2022.

In 2023, due to the decrease in yellow phosphorus and phosphoric acid prices, the company's revenue and profit also decreased. Duc Giang Chemicals' revenue only reached VND 9,761 billion, down 32.5% over the same period, and after-tax profit reached VND 3,261 billion, down 43.9%.

By the end of the third quarter of 2024, Duc Giang's business results had not yet recovered, reaching a profit of VND 2,322 billion, down 7.2% over the same period last year.

Currently, Duc Giang Chemicals is ambitious to expand its business scale to billions of USD. One of the projects for Mr. Dao Huu Huyen's business to achieve this ambition is the proposal to implement the Aluminum - Alumina Complex project in Dak Nong province, with a total expected investment of up to 57,000 billion VND (equivalent to 2.3 billion USD), a capacity of 2 million tons of Alumina and 300,000 tons of aluminum ingots. The project implementation period lasts 5 years.

At the General Meeting of Shareholders in March, the Chairman of Duc Giang Chemicals said that this project could bring in revenue of tens of thousands of billions of VND each year.

Mr. Dao Huu Huyen's company has a huge profit, deposits nearly 10,000 billion in the bank, shares evaporate 13%. The "big guy" in the chemical industry - Duc Giang Chemical Group has the highest business results in the second quarter in 6 quarters. This company is holding cash of up to 10,000 billion VND. However, DGC shares have decreased by 13% in the past month.

Source: https://vietnamnet.vn/tai-san-giam-nghin-ty-theo-co-phieu-dai-gia-dao-huu-huyen-nuoi-tham-vong-ty-usd-2344862.html