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The Foreign Independent Director Resigns Following Đức Long Gia Lai’s Sale of its Electronics Component Business

24 May, 2025

Mr. Murphy’s resignation was accepted by the Company on May 16th, due to personal reasons. As planned, DLG will propose to officially relieve Mr. Murphy of his duties at the upcoming annual general meeting later this month.

Concurrently, Mr. Vo Sy Viet has been nominated as his replacement. Mr. Viet, born in 1975, previously served as a member of the DLG Supervisory Board from 2017 and currently holds directorial positions in several of the Group’s subsidiaries in the mineral and agricultural sectors.

At the upcoming meeting, DLG will also propose to relieve Ms. from her duties as a member of the Supervisory Board based on her resignation letter and elect Mr. Vu Van Tin in her stead. Mr. Tin, born in 1971, possesses expertise in accounting and has held leadership roles in mining companies within the DLG ecosystem.

Mr. Paul Anthony Murphy. Source: DLG

Mr. Murphy has been a member of DLG‘s Board of Directors since 2018 and is one of the few foreigners to hold a senior management position in the Company. Prior to joining DLG, he accumulated nearly four decades of experience as CEO and strategic advisor to prominent electronics corporations in China, South Korea, and Hong Kong. In 2016, he joined Ansen Investment Co., Ltd., a subsidiary of DLG, which specializes in manufacturing electronic components.

Mr. Murphy’s tenure coincided with DLG‘s expansion into the electronics components industry, marked by the notable acquisition of the Ansen factory in Guangdong, China, through a share swap with Mass Noble Investments Limited (Mass Noble) in 2015. While the electronics component business used to be a significant revenue stream, generating nearly VND 1,900 billion in revenue in 2018, it was not particularly profitable, with pre-tax profits of only about VND 40 billion. By 2023, the segment’s revenue had declined to VND 573 billion, and it incurred a loss of VND 79 billion.

In 2024, DLG officially divested from its subsidiary, Mass Noble, selling its entire stake to Alpha Seven Group Joint Stock Company, in which DLG‘s Chairman, Bui Phap, holds a 24% stake. The transaction brought in VND 255 billion, enabling DLG to recognize income of VND 84 billion and use most of the proceeds to repay bank loans, including those from Sacombank and BIDV.

DLG provisioned over VND 100 billion for its investment in Mass Noble as of the end of 2024. Source: DLG

However, this divestment also resulted in the loss of a primary revenue stream, evident in the first quarter of 2025 results, where revenue halved compared to the same period last year, reaching only VND 153 billion. Nonetheless, the Company still managed to record a net profit of over VND 28 billion.

Despite this recent profit, DLG‘s financial picture remains challenging. As of the end of March 2025, total liabilities remained high at approximately VND 3,500 billion, including long-term borrowings of over VND 1,400 billion. The ratio of provisions for doubtful debts stood at VND 2,100 billion against short-term receivables of nearly VND 1,300 billion.

For the 2025-2027 period, DLG aims to focus on infrastructure development, renewable energy, real estate, finance, and mineral exploitation. By 2026, the Company targets to stabilize its operations, improve financial health, and fully settle over VND 700 billion in debts to credit institutions.

Specifically, for 2025, DLG has set modest revenue and profit targets of VND 650 billion and VND 200 billion, respectively, representing a 40% and 18% decrease from the previous year. For 2026 and 2027, the Company forecasts revenues of VND 700 billion and VND 750 billion, with net profits of VND 225 billion and VND 250 billion, respectively.

According to pre-meeting documents, DLG proposes not to pay dividends for 2024 due to accumulated losses on the audited consolidated financial statements totaling over VND 2,450 billion as of the end of 2024.