In early July, the Central Inspection Commission announced the conclusion that Ho Thi Kim Thoa had numerous mistakes and defects during her leadership from January 2004 to May 2010. She is facing the disciplinary actions from the Commission.
Moreover, Thoa and her family own 34.12% of DQC shares, and her relatives are holding the key positions in the company. Besides, the business report of DQC has recently been published. According to the report, in quarter 2 of 2017, the profit of DQC decreased 62.6%, the cumulative total of the first six months was less than a half of the same period last year. The after-tax profit of the parent company DQC is VND50 billion (roughly US$2.2 million), equivalent to the EPS (earning per share) of VND1,412 (about US$0.06).
In the first half of 2017, DQC achieved the sales of more than VND28 billion (about US$1.2 million), equivalent to about 39% last year, as the revenue from Cuban customers was no longer available.
Despite the difficulties in the export market, some securities companies highly appreciate the prospects of DQC with LED products in the domestic market. The growth potential of the LED product line mainly comes from the 20% increase in the estimated total lighting equipment demand in Vietnam over the next five years while its penetration rate in Vietnam is just 10%.
Currently, DQC is building a new LED factory in Ho Chi Minh city. This factory is expected to operate in the second quarter of 2018 and increase the capacity to 40 million LED bulbs a year. The new plant will be exempted from tax liability for the first four years and enjoy 50% tax incentives for the next nine years.
Viet Dragon Securities Corporation (VDSC) forecasts that in the next two or three years, DQC will enjoy numerous favourable factors to achieve positive business results.
