Danang Rubber (DRC) finalizes list of 35 million bonus shares to be issued

VHO - Danang Rubber Joint Stock Company (stock code: DRC) has just announced that it will close the shareholder list on July 24 to issue bonus shares to increase its charter capital. According to the plan, DRC will issue more than 35.6 million shares at a ratio of 3:1 (shareholders owning 10 shares will receive 3 new shares).

The total issuance value calculated at par value reached more than 356 billion VND. Illustrative photo

The total issuance value at par value is over VND356 billion, drawn from nearly VND21 billion of the charter capital supplementary reserve fund and over VND335 billion from the development investment fund. After the issuance, the number of outstanding shares of DRC will increase to over 154.4 million units, raising the charter capital to over VND1,544 billion.

In addition, on July 10, DRC will pay the remaining 2024 dividend at a rate of 6% in cash (equivalent to VND 600/share), with a total value of about VND 71 billion. Previously, the company had paid the first interim dividend of 2024 at a rate of 5%. Thus, DRC's total dividend payment in 2024 is 11%, in accordance with the plan approved at the 2025 Annual General Meeting of Shareholders.

In 2025, Danang Rubber has approved a business plan with an export turnover increase of 9%, reaching more than 132 million USD. Accordingly, net revenue is expected to reach 4,880 billion VND, an increase of 4% compared to the level achieved in 2024, driven by growth in most key product groups such as bias tires (expected to increase by 1%); radial tires (up by 8%); LTR tires (nearly doubled). However, the Company's pre-tax profit is expected to decrease slightly to 285 billion VND.

In the first quarter of 2025, the Company achieved net revenue of VND 1,179.7 billion, down more than 18% over the same period last year. Profit after tax was VND 9.47 billion, down nearly 81% over the first quarter of 2024.

According to the management, the reason is that the price of raw rubber has increased by 25-30% compared to the same period, while the selling and administrative expenses have also increased, leading to a decrease in gross profit margin. Meanwhile, the Company has not been able to adjust the selling price accordingly due to fierce competition in the international market. In addition, the area of ​​natural rubber in the country is increasingly shrinking due to the impact of infrastructure projects, which has also limited the supply.

Source: https://baovanhoa.vn/kinh-te/cao-su-da-nang-drc-chot-danh-sach-phat-hanh-35-trieu-co-phieu-thuong-149695.html