The DDGH2123001 bond series, issued by DDG in May 2021 with a value of VND 300 billion, carried an annual interest rate of 11.5% and an initial maturity date of May 2023. The capital raised was intended to invest VND 170 billion in a project to produce steam and dried beer malt for Heineken Vietnam Brewery Joint Stock Company – Vung Tau in its second phase, while the remaining VND 130 billion was allocated for a project on CO2 gas recovery and liquefaction.
To secure the loan, the company mortgaged several assets, including land use rights and construction works of nearly 8,000 m2 belonging to its subsidiary, CL Joint Stock Company, a bubbling fluidized bed boiler with a capacity of 35 tons/hour, and a dried beer malt production line with a capacity of 8 tons/hour, located at Lot 2.9A6, Road No. 6, Tra Noc II Industrial Park, O Mon District, Can Tho City. The initial value of these assets was approximately VND 156 billion.
Additionally, the company pledged 15 million DDG shares as collateral. As of April 2021, these shares were valued at approximately VND 488 billion, but their value plummeted when DDG stock prices took a sharp dive in April 2023. At that time, the bond maturity was extended by two years, and additional collateral was provided, including a drying system and a furnace at the My Xuan Biomass Plant (Ba Ria – Vung Tau), owned by Khai An Technology Joint Stock Company.
As of May 28, 2025, in addition to the principal amount of VND 300 billion, the company had accrued unpaid bond interest of over VND 79 billion.
On June 6, DDG held a meeting to seek consent from bondholders on a debt settlement plan. Thirty-one bondholders, holding nearly 93% of the total issuance value, participated. However, most of them disagreed with the company’s proposal and demanded the disposal of collateral to recover the principal and interest. As a result, 86.3% of the voting bond value approved the plan to sell the assets.
Accordingly, within one month from the effective date of the resolution, DDG must return the additional collateral, consisting of the drying system and furnace at the My Xuan Biomass Plant, to Khai An Technology Joint Stock Company. Simultaneously, Vietcombank – Tan Dinh Branch and Bao Viet Bank – Head Office Branch will engage independent valuation units to reassess the value of all collateral, based on contracts signed during the 2021-2023 period.
Once the valuation results are available, DDG, along with asset management agents, will coordinate to dispose of these assets under the supervision of bondholder representatives, including BVSC Securities Joint Stock Company, Amber Fund Management Company, and two individual investors. The disposal process is expected to be completed within three months from the date of valuation, and no later than five months from the effective date of the resolution. If the deadline is missed, the asset management units have the right to initiate the sale of assets independently, preferably through public auctions. The selling price will not be lower than the assessed value, and related expenses will be allocated to the bondholders according to their ownership ratio.
DDG forced to sell assets to repay bonds – Photo: TV
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Anticipating Profits in 2025
In terms of business operations, DDG incurred losses in the past two years, amounting to VND 206 billion in 2023 and VND 63 billion in 2024.
In 2023, the company’s stock price plummeted from VND 38,000 to VND 6,000 per share, triggering the forced sale of pledged shares and exacerbating the losses. In 2024, revenue reached VND 358 billion, a decrease from the peak of VND 975 billion in 2022, mainly due to the weakness in the biomass trading segment. Additionally, interest expenses and loan loss provisions remained high.
| DDG stock price plunged in 2023 |
To mitigate losses, the management temporarily halted depreciation on certain assets that had not generated revenue, as reflected in the 2024 financial statements. However, according to AASCS auditors, this action was inconsistent with accounting standards. Had the depreciation been properly accounted for, the reported losses would have been even higher.
Explaining the decision to suspend depreciation, the Board of Directors stated that projects like the 5MW Biwase waste-to-energy plant, CO2 gas production, the Dong Tien Long An boiler, and the 6T YFY boiler had not yet generated revenue. Specifically, the Biwase waste-to-energy project started depreciating in 2022 but has not yielded any revenue. The Dong Tien Long An boiler, which has been depreciating since 2018, stopped generating revenue in May 2024, and the CO2 gas project has not brought in any revenue since the middle of last year, despite depreciating since 2022.
According to documents prepared for the 2025 Annual General Meeting, DDG aims for a revenue of VND 400 billion and expects to turn a profit of VND 12 billion after a prolonged financial crisis.
On the eve of the Annual General Meeting, two members of the Supervisory Board, Ms. Vu Thi Chinh and Ms. Chu Hong Nhung, resigned, citing work and personal reasons. This move came in the wake of the 2024 audit report, which highlighted the inappropriate suspension of depreciation—an area that falls under the Supervisory Board’s monitoring responsibilities.
| DDG aims to return to profitability after two consecutive years of losses |
– 5:00 PM, June 19, 2025
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After a recent audit, DDG reported a net loss of over VND 63 billion in 2024, attributed to provisions for bad debt and a decrease in financial revenue. Despite a surprising surge in the stock’s price during the May 16th session, DDG’s share price remains lower than a cup of iced tea.
