Profit of trillions of VND per year
Once one of the most prominent enterprises in the chemical industry, Duc Giang Chemical Group built its advantages based on an integrated production model in a chain, operating in a closed manner from apatite ore mining, gold phosphorus production to deep processing into chemical products. Thanks to controlling almost all inputs, the enterprise has maintained a high profit margin for many years.
Duc Giang's business developments show clear fluctuations according to the chemical industry cycle, especially phosphorus price fluctuations. In the period 2018 - 2020, revenue maintained around VND 5,000 - 6,000 billion per year, after-tax profit was over VND 600 - 900 billion, mainly during the foundation accumulation period.
The acceleration started in 2021 when phosphorus prices increased sharply, leading to revenue jumping to over 9,500 billion VND and after-tax profit exceeding 2,500 billion VND. By 2022, the enterprise recorded a peak with revenue of over 14,400 billion VND, after-tax profit exceeding 6,000 billion VND, bringing the profit margin to the highest group in the market.
After a period of hot growth, business results began to adjust from 2023 when the chemical market cooled down. Revenue decreased to below 10,000 billion VND, after-tax profit was still more than 3,200 billion VND. In the two years 2024 - 2025, the enterprise maintained a more stable state, with revenue around 10,000 - 11,000 billion VND per year, after-tax profit fluctuating from 3,000 - 3,100 billion VND, still significantly higher than the period before 2021.
Pressure began to be more clearly shown in Q4/2025, net revenue reached 2,741 billion VND, up 13% over the same period. However, gross profit only reached about 716 billion VND, down 19%, causing the gross profit margin to narrow sharply from 37% to about 26%.
After deducting expenses, consolidated after-tax profit is about 657 billion VND, down 17% and down to the lowest level in 17 quarters.
According to the company's explanation, the main reason comes from increased input costs such as ore, sulfur, electricity and ammonia... increased sharply. The increase in the proportion of imported ore caused the cost of goods sold to increase by 32% compared to the same period in 2024, thereby significantly reducing the profit margin.
As a result, in 2025, the company's net revenue reached 11,266 billion VND, an increase of 14% compared to the previous year, but after-tax profit only increased slightly by 2.6%, reaching 3,189 billion VND.
For core operations, phosphorus production and related products depend on three main raw materials: apatite ore, coke and sulfur. Phosphorus plants are concentrated in Lao Cai, which has an advantage in apatite resources, but fluctuations in raw material costs are becoming a factor directly putting pressure on production efficiency.
Continuously expanding investment, encroaching into the real estate sector
Along with fluctuations in core operations, businesses also expanded investment scale and ecosystems.
As of the end of 2025, Duc Giang Chemicals has three branches and eight subsidiaries with a total investment capital of 5,585 billion VND. Of which, Duc Giang Lao Cai Chemicals Co., Ltd. accounts for 2,785 billion VND, equivalent to 50%.
This is a key production unit in the phosphorus chain, owning a phosphorus factory with a capacity of 40,000 tons/year and phosphoric acid 160,000 tons/year, and also holding 51% of Vietnam Apatite Phosphate Joint Stock Company - a business with high cash dividend payment.
In 2025, the enterprise continued to promote investment with 659 billion VND, focusing on the Nghi Son Chemical Plant project. This is a 12,000 billion VND chemical complex in Thanh Hoa, implemented in 3 phases with products such as soda, PAC, PVC and soda. Phase 1 is expected to operate from the first quarter of 2026, aiming for commercial operation in the second quarter of 2026.
Another unit, Duc Giang Chemical Co., Ltd. - Dak Nong, currently operates a fertilizer factory, and also receives additional assets after the deal to buy an alcohol factory worth 253 billion VND, and is orienting investment in a bauxite - aluminum project with a scale of 57,000 billion VND.
Meanwhile, Tia Sang Battery Joint Stock Company is expected to develop lithium batteries, currently still recording low revenue and profit.
Accumulated profits from the chemical sector also create a foundation for businesses to encroach on the real estate sector. In 2025, Duc Giang Real Estate One Member Limited Liability Company was allowed to increase its capital to VND 1,000 billion and implement the Duc Giang Public, School and Housing Complex project with a scale of VND 4,500 billion in Hanoi.
The project has been approved for investment policy and investor approval by the Hanoi City People's Committee. According to the plan, the project will start construction in 2026 and if favorable, the low-rise part can be handed over from the fourth quarter of 2026.
As of December 31, 2025, the total assets of Duc Giang Chemicals reached 19,550 billion VND, an increase of more than 23% compared to the beginning of the year. The amount of money and bank deposits reached more than 13,100 billion VND, accounting for about 67% of total assets, helping the enterprise maintain its position as one of the manufacturing units holding a large amount of cash on the stock exchange.
Shares being sold off
After the information that Chairman Dao Huu Huyen and his son and some business leaders were prosecuted on the afternoon of March 17, DGC shares of Duc Giang Chemical Group immediately faced strong selling pressure.
Closing the session on March 17, this code fell to the floor, completely reversing compared to the previous positive development when in the morning session it increased by more than 2%, to 75,500 VND/share.
On the morning of March 18, DGC continued to fall to the floor price to 64,000 VND/share, with a floor price selling surplus of tens of millions of units, with no buyers.
At the end of the morning session, the floor price selling surplus recorded more than 29 million shares, the matched order volume only reached more than 380,000 units.
