Tipharco Pharmaceutical Joint Stock Company (DTG) hereby provides an explanation to the State Securities Commission, the Hanoi Stock Exchange, and esteemed shareholders regarding the fluctuations in revenue and profit after tax in the 2025 Audited Financial Statements compared to 2024 as follows:
During the first nine months of 2025, a market-wide downturn coupled with intense price competition in the OTC (Over-the-Counter) channel presented significant challenges to the Company’s operations. Furthermore, force majeure factors involving major shareholders, alongside the impact of specialized inspections across the pharmaceutical and dietary supplement markets, resulted in operational disruptions for numerous partners within the distribution network. In response, the Company proactively shifted its strategy to a defensive stance, accepting a decrease in profit for the 2025 fiscal year to safeguard cash flow and ensure business continuity. Priority was given to enhancing trade discount policies, with the value increasing by nearly VND 4.5 billion compared to the previous year—from VND 3.36 billion to VND 7.86 billion—aiming to support and directly alleviate difficulties for the distribution partner system.
Following this strategic adjustment period, the fourth quarter of 2025 marked a strong recovery, with profit after tax reaching VND 11.27 billion, representing an 11% growth compared to the same period in 2024. For the full year 2025, the Company's net revenue reached VND 316.99 billion and profit after tax was VND 12.82 billion.
Although business targets were not fully achieved, a prominent highlight in this year's financial results was the Company's aggressive settlement of loans, which significantly reduced short-term debt from VND 111.29 billion at the beginning of the year to VND 38 billion at the end of the period. Proactively reducing financial leverage helped decrease full-year interest expenses by 39.4% compared to 2024. Net cash flow from operating activities for the year reached approximately VND 100 billion, driven by exceptional efficiency in debt recovery (VND 47.3 billion) and inventory optimization (VND 24.4 billion). The Company's year-end cash and cash equivalents stood at VND 42.23 billion, showing robust growth from VND 16.36 billion at the start of the year.
The healthy financial foundation established in 2025 has created significant leeway, enabling the Company to be fully proactive in its resources and ready to seize breakthrough opportunities in 2026.
Attachments: