Revenue Plummets, Yet Duc Giang Chemical’s Subsidiary Surges 63% in Profit

Apatit Vietnam Phosphorus Joint Stock Company (UPCoM: PAT), a subsidiary indirectly owned by Duc Giang Chemicals (HOSE: DGC) through its wholly-owned subsidiary Duc Giang Chemicals - Lao Cai Co., Ltd., has released its Q3/2025 financial report. Despite declines in revenue and sales volume, the company reported a significant year-over-year increase in profits.

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PAT’s Q3/2025 Business Targets

Specifically, PAT achieved a net revenue of VND 507 billion in Q3, a 19% decrease compared to the same period last year. However, the cost of goods sold dropped significantly by 27% to VND 376 billion, resulting in a gross profit of VND 130 billion, up nearly 16%.

Financial activities during the period were efficient, with financial revenue increasing by 30% to VND 14 billion, while financial expenses decreased by 54% to VND 3.3 billion. Notably, selling expenses plummeted by 51% to VND 21 billion. After deducting all expenses, PAT recorded an after-tax profit of VND 110 billion, a 63% increase.

According to PAT‘s explanation, the decline in output and revenue in Q3/2025 was offset by a 10% increase in the selling price of yellow phosphorus and a significant reduction in selling expenses, leading to robust profit growth.

The cumulative picture for the first nine months of PAT is equally promising, with net revenue rising by 10% year-on-year to over VND 1.4 trillion; after-tax profit reached VND 272 billion, up 48%. Thus, the company has achieved 78% of its revenue target and nearly 91% of its profit plan assigned by the Annual General Meeting.

As of the end of September, PAT‘s total assets amounted to nearly VND 1.15 trillion, a 23% increase from the beginning of the year. Cash and cash equivalents surged to over VND 702 billion, 63% higher than at the start of the year and accounting for 61% of total assets. Meanwhile, inventory decreased by 26% to VND 63 billion.

On the capital side, total liabilities rose by 5.8% to VND 385 billion, all of which are short-term debts. Within this, short-term payables to suppliers decreased sharply by 54% to VND 87 billion, but short-term loans increased significantly to VND 194 billion, 2.3 times higher than at the beginning of the year.

Châu An

– 3:58 PM, October 24, 2025

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