How does DIG operate under the new leadership?

Mr. Cuong finished inheriting the DIG shares from the previous Chairman after taking over as Chairman of the Board of Directors. He currently holds 82.71 million DIG shares, or 13.56% of the company's total capital. He is also anticipated to return DIG to its heyday with significant financial gains. However, in addition to the current internal issues, the time has not been sufficient, and he is unable to assist the company's shareholders in "being happy again," since DIG is still not turning a profit in 2024.

The Q4 2024 financial report states that DIG's consolidated net revenue was close to VND 446 billion, a modest 3% rise over the same time last year. The real estate industry accounted for the majority of revenue, which was close to VND 292 billion but down more than 7% from the same time last year. The selling of unfinished homes in the Hau Giang and Hiep Phuoc developments and the transfer of units in the CSJ project in Vung Tau are the primary sources of real estate income.

Interestingly, DIG did not report any revenue from the sale of items in 4Q24, whereas it did report around VND 22 billion at the same time last year. On the other hand, construction-related revenue increased to over VND 93 billion, almost doubling from the same period the previous year.

When compared to the same period last year, DIG's net profit at the end of Q424 increased by 34% to around VND 89 billion. Its net profit for the entire year 2024, however, dropped 39% from the year before to just 105 billion VND as a result of losses in the first quarter. With this outcome, the corporation has only achieved over 13% of the VND 760 billion after-tax profit goal established for 2024.

At the 2024 General Shareholders' Meeting, DIG's leadership said that if it could settle the legal disputes around the projects the firm is now working on, it would make billions of dollars. The company's business results, however, indicate that it is still having trouble achieving its billion-dollar goal.

DIG has consistently fallen short of its yearly earnings goals over the last three years. It failed to meet its profit objective of VND 1,444 billion in 2021, despite recording a record pre-tax profit of nearly VND 1,280 billion.

Another development is that DIG will continue to sell up its subsidiaries in 2024. In particular, the intention to sell off all of the capital from Thien Quang Trading Development Joint Stock Company was approved by the DIG Board of Directors on December 23, 2024. There are 1,775,000 shares that need to be transferred. December 2024 through the first quarter of 2025 is the anticipated execution timeframe.

Thien Quang had been recognized by DIG as an affiliate company at the end of Q324, holding 1,775,000 shares, or 35.5% of the total. High-end furniture is offered by Thien Quang, a company that specializes in project and task design and turnkey building. The business provides goods for DIC Group projects, including the Cap Saint Jacques complex, the Vũng Tàu Gateway apartment complex, the DIC Corp headquarters, the DIC Phoenix amusement area, and the Landmark Residence Vũng Tàu.

Additionally, on December 23, 2024, DIG gave its approval to the intention to sell some of its shares in DIC Holdings Construction Joint Stock Company (DC4), an affiliated business. 16.2 million units are the most shares that can be transferred. On the day of the transaction, the transfer price cannot be less than the reference price. December 2024 through the first quarter of 2025 is the anticipated transaction period. DIG's ownership position in DIC Holdings will drop from 35.59% to 7.79% if the deal is finalized.

However, by acquiring 16 million more shares of DIC Hospitality at a value of VND 160 billion, the Board of Directors of DIG has also approved the plan to increase its ownership in this company from 78.3% to 81.29%, increasing the charter capital of DIC Hospitality Joint Stock Company (DIC Hospitality) from VND 1,001.8 billion to VND 1,161.8 billion.

The DIC Star Landmark hotel, the CSJ building, the Thuy Tien high-rise residential complex, and the DIC Star Vinh Phuc hotel are among the projects in Vung Tau that DIC Hospitality runs and oversees for DIG. In 2023, DIC Hospitality's net sales were over VND 154.5 billion, but it had a post-tax loss of around VND 19 billion, according to DIG's 2023 annual report. Revenue and after-tax profit for DIC Hospitality were VND 173 billion and VND 210 billion, respectively, in 2022.