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 Q3 2025 financial statements compared to the same period in 2024 as follows:
Unit: VND
Source: Financial Statements for Q3 2025
During the first six months of 2025, the pharmaceutical industry in general and the Company in particular faced a series of macroeconomic challenges: weakened consumption in traditional markets, exchange rate fluctuations, and rising input costs that significantly impacted production and import expenses. In addition, the level of competition within the industry continued to intensify.
Entering the third quarter of 2025, the Company’s business performance showed clear signs of improvement, reflecting the effectiveness of newly implemented business policies and the strong efforts to optimize the supply chain throughout the period. Net revenue recorded positive growth compared to the first and second quarters of 2025.
Gross profit also rebounded, affirming the recovery of the Company’s core business activities.
However, compared to the same reporting period in 2024, the Company’s profit after tax reached only 30.5% of the previous year’s level. The main reason for this decline in net profit lies in the difference in administrative expense recognition between the two periods:
- In the third quarter of 2024, the Company carried out a reversal of provisions, which was recorded as a deduction from expenses, resulting in a lower level of operating expenses in the comparable period.
- Conversely, in the third quarter of 2025, there was no corresponding provision reversal, while certain expense items increased slightly.
This difference in accounting basis made the administrative expenses in Q3/2025 significantly higher, leading to a lower after-tax profit when compared year over year.
The positive signals from the recovery in net revenue and gross profit demonstrate that the Company’s business strategy and operational adjustments are on the right track. We are fully confident that this positive growth trend will continue to be maintained and strengthened in the fourth quarter of 2025.
Respectfully,
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