Ho Chi Minh City Stock Exchange (HOSE) has just announced that DAG shares of Dong A Plastics Group Joint Stock Company will be suspended from trading from August 15.

In addition, DAG shares are also on warning because the auditing organization has an exception opinion on the 2023 financial report and the undistributed loss after tax as of the end of 2023 is 588 billion VND.

Before being suspended from trading, in May, DAG was put on a restricted trading list because the company was 45 days late in submitting its audited financial statements for 2023. Accordingly, DAG was only allowed to trade in the afternoon session. On July 1, this stock continued to be warned because the company had not held its 2024 annual general meeting of shareholders (more than 6 months from the end of the 2023 fiscal year ). On August 2, HoSE issued a document reminding the company to delay in disclosing information about events affecting production and business activities.

In a written explanation sent to HoSE about DAG shares being put into special categories, Dong A Plastics said it is working with UHY Auditing and Consulting Company Limited to complete the necessary accounting figures for the 2023 audited financial statements. However, due to the large volume of work and the need to ensure high accuracy, the company needs more time to unify the figures with the auditor.

In addition, Dong A Plastics also needs more time to complete its personnel, find suitable candidates for the Board of Directors and Supervisory Board for the 2020-2025 term to meet the company's governance situation. The company is also in the process of restructuring orientation.

Regarding business performance, the company recorded net revenue in the second quarter of 2024 at VND55.3 billion, only about 14% of the VND400 billion achieved in the same period. Gross profit in this period was negative VND10.7 billion, while in the same period last year it was more than VND6.7 billion. After deducting expenses, the company reported a loss after tax of VND66.6 billion, a significant decrease compared to the loss of nearly VND103 billion in the same period in 2023.

However, after half a year, Dong A Plastics lost about 607 billion VND after tax, nearly 5 times higher than the loss of 124 billion VND in the same period last year.

The company targets total revenue this year at VND642.2 billion, down 47% compared to last year, and after-tax profit at VND9.5 billion. Thus, after half a year, Dong A Plastics has exceeded 89% of the revenue plan and is still far from the profit target.

The management board said that the company will focus on core business and production areas, profitable and efficient product lines. In addition, the company will seek capable partners to invest , cooperate in operations, production exploitation and market expansion.

Dong A Plastic's total assets as of the end of June 2024 reached nearly VND 1,395 billion, a slight decrease compared to VND 1,442 billion at the beginning of the period. The company is recording more than VND 1,367 billion in liabilities, of which VND 954 billion is in short-term debt. The company's equity reached VND 27.2 billion. Undistributed loss after tax is VND 641 billion.

At the end of the week, DAG shares are currently at 1,670 VND. Compared to the price at the beginning of the year (3,160 VND), this stock has decreased by nearly half. The average trading volume in the last 10 sessions is more than 142,000 units. With 60.3 million shares listed on the Ho Chi Minh City Stock Exchange, the market capitalization is only approximately 101 billion VND.