A production line of Đức Giang-Lào Cai Chemicals JSC, a subsidiary of Đức Giang Chemical Group. — Photo Đức Giang-Lào Cai Chemicals JSC

Đức Giang-Lào Cai Chemicals JSC, a subsidiary of Đức Giang Chemical Group, has successfully purchased 100 per cent of the capital at Phosphorus 6 JSC with the purchase price of VNĐ635 billion (US$26.8 million).

Đức Giang-Lào Cai Chemicals JSC said the purpose was to create a deep processing chain for products such as H3PO4, Sodium Tripoly Phosphate – STPP (Na5P3O10); stabilise the phosphorus export market; and increase revenue and profit for the company.

Since July 20, Phosphorus 6 JSC has become a subsidiary of Đức Giang-Lào Cai Chemicals JSC.

Phosphorus 6 JSC is located at Lot B24, B24A, Tằng Loỏng Industrial Park in , Lào Cai province's Bảo Thắng District, with charter capital of VNĐ363 billion. This company owns a yellow phosphorus furnace with a capacity of 9,800 tonnes per year.

In another acquisition on March 21, 2023, Đức Giang Chemical Group also bought 3.4 million shares of Tia Sáng Battery JSC (Tibaco or TSB) to raise its ownership from 0 per cent to 51 per cent of charter capital. The transaction was made at VNĐ39,200 share, estimated investment value of VNĐ134.86 billion.

In terms of business activities, in the second quarter of 2023, Đức Giang Chemical Group recorded a revenue of VNĐ2.4 trillion, down 39.7 per cent year-on-year and profit after tax recorded at VNĐ881.81 billion, down 53.5 per cent over the same period last year. In which, gross profit margin dropped sharply from 53.2 per cent to only 39 per cent. — VNS