Reporter:! Recently, DLG shares’ prices have fluctuated drastically and there have been many contradictory comments about the above phenomenon, What’s your opinion about this issue?

Mr. Bui Phap:

Regarding DLG shares, I already addressed this issue on Stock Investment Newspapers, No 92 dated 01/8/2012. Regarding other opinions which attracted your attention, I’d like to briefly state as follows:

Concerning the recent ups and downs of DLG shares, I think it is the movement of supply and demand under the stock market rule, depending on “the health” of the international and domestic economy and changes according to different “tone” of the stock market. This neither greatly affects the Group’s business activities nor impacts the rights of shareholders and investors rights, all investment activities are well-planed and on good track. Though prices of DLG shares are lowered, that they are well-traded  shows inventors’ high interest and trust to confidently invest in DLG shares. Personally, this is a positive signal regarding the Group’s business and investment activities.

Reporter:  The separate issuance of shares and pre-term bond conversion to increase the registered capitals under the current difficult stock market conditions, Has DLG management board considered diluting shares, and is that one of the reasons which have lead to the recent fluctuation in DLG shares?  

Mr. Bui Phap:  It is somewhat difficult and there has been fluctuation in prices of DLG shares. In all issuance installments to increase the charter capitals, we have taken into account the devaluation of shares due to the increased charter capital and realization of the respective earning projections. I don’t think that the recent capital increase has partially led to the fluctuation of shares’ prices because of several following reasons. On the one hand, the increased quantity of shares which have been separately issued are currently under the period of trading restriction according to Decree No 01/NĐ-CP. On the other hand, the quantity of shares which have been converted from bonds are now not additionally listed, thus they haven’t increased the quantity of tradable shares outside. On the contrary, I think that DLG’s two recent capital increases have been an encouraging achievement because the successful issuance of 13.333.300 shares at the issuance price of 13.500 VND/share has brought back approximately 180 billion VND in Quarter I/2012, resulting in the CAR improvement as well as the coverage ratio for the company. In addition, the successful conversion of 13.333.300 bonds equaling to 185.411.000 billion VND in Quarter II/2012 has enabled to company to restructure financial mechanism under the trend in which equity is increased while leverage is decreased to reduce the interest payment pressure in the future. Regarding this, I am very sincerely grateful to bond-holders who have unanimously supported the group leaders and trusted DLG in the future. They have accepted this sudden loss when DLG shares have fluctuated unexpectedly against the bond-holders at the conversion time. This creates an additional capital resource for the company regarding its production and trading activities, facilitating the completion of on-going investment projects as well as start-up of newly invested projects, especially some mineral exploiting and processing projects whose execution schedule must be urgently speeded up.

Reporter: Could you please tell us the production and trading result in the first 6 months of the year, the expected result of the entire 2012 and the production and trading as well as investment plan in the coming time?

As for the last 6 months of 2012, in order to keep pace with the time, The management board has directed the board of directors to decisively speed up the production, trading and investment activities. In particular, we have closely directed member companies’ activities such as strengthening production and trading, selling goods and minimizing operation costs; negotiating to reach an agreement with credit institutions on new provisions to quickly release disbursement for the group’s investment projects to make the turnover/earnings point fall in quarters at the end of the year.  In addition, that Da Nang bus station has just been put into operation shows good results and lead and zinc exploitation projects will bring back turnover and profits in Quarter IV/2012. Together with the improving development of macro-economic situation, the Government’s measures which support enterprises such as cutting down loan interest, intensively funding public investments and enterprises, we believe that our 2012 targets will basically be achieved.

Reporter: What do you want to say with the press agencies, investors about the group’s investment strategy and the implementation situation of some big projects in the coming time?  

- Minerals : Intensively exploiting 30 mineral mines (ferrous and non-ferrous) under the licensed time of 10 years at the minimum, and 30 years at the maximum. These projects are: Lead-Zinc mines; granite mines, basalt post mine, gabbro mines, common construction rock mines. Minerals will be processed under the trend which strengthens the combination of exploiting and processing fine ore and metallurgy. Our priority is given on the internal resources in combination with the mobilization of external resources to speed up exploiting and processing mineral projects to put them into operation. This business field will bring back highly effective breakthrough for DLG in the coming time;

- Rubber industry : Newly plant 7.000 more hectares of rubber in the coming time, cash flows from this business activity will start from 2014 for 15.000 hectares of rubber planted in 2008;

- Building traffic infrastructure : Executing and put infrastructure into operation in Binh Phuoc, DakNong, and Gia Lai provinces under the Tay Nguyen development strategy which was approved by the Government, especially BOT and BT projects for Tay Nguyen traffic roads. As for the National road No 14, we are submitting a proposal to the Government for its consideration and approval of application to provide a preferential mechanism for capital mobilization, increase in toll collection and an agenda which maps out the increase process of traffic toll collection with a view to quickening the execution schedule and shortening the capital reimbursement of BOT projects. As for BT projects whose capital sources are funded by the State’s budget and the Government’s bonds, DLGL Group has also been granted by the Prime minister, central authorities and People’s committee of Tay Nguyen provinces as the Investor.  

- Hydro-power business industry: DLG is now the Investor of 7 hydro-power projects with total capacity of nearly 600MW, of which three hydro-power projects have already been invested and about to generate electricity, the remaining projects are Dong Nai 6 & 6A HPPs located in three provinces Lam Dong, DakNong and Binh Phuoc, My Ly HPP (Nghe An), Song Sen HPP (Quang Tri), Dakspay HPP (Gia Lai). The investment procedures of these projects have been completed, DLGL is now waiting for suitable time when the economy is fully recovered, then we will arrange capital sources to implement them.

- Real estates : The Group now has many “clean” land areas at the most favourable locations. However, with the common development of the current freezing real estate situation, we temporarily leave them aside and wait until the better situation to start up.

By the way, I am on behalf of the management board, sincerely grateful to foreign and domestic shareholders’ faith and interest in DLG shares and their whole-hearted  trust in DLGL group. I am thankful to press agencies which have supported and cooperated with us on the group’s development road. I hope that press agencies will frequently contact and share opinions with me and the DLGL’s board of directors in order to announce official information about the group’s operating activities and to avoid such recent regretful information.

Source : Stock Investment News