GELEX asserts that the legal proceedings involving Mr. Dang Phan Tuong do not impact the operations of the Group and its subsidiaries

GELEX Group has officially addressed recent public concerns regarding the legal status of Mr. Dang Phan Tuong, a former member of the Board of Directors at GELEX Electric. The conglomerate, which maintains a significant footprint in Vietnam’s industrial and electrical equipment sectors, issued a formal statement clarifying that the ongoing investigation involving Mr. Tuong pertains to his activities at the National Power Transmission Corporation (EVNNPT), a period that predates his tenure and involvement with GELEX Electric or any of its constituent member companies.

The Context of the Investigation

The investigation into Mr. Dang Phan Tuong stems from his previous professional engagements at the National Power Transmission Corporation (EVNNPT). While the specific details of the charges are currently being handled by the relevant authorities, the scope of the inquiry has been clearly defined by the legal process to focus on actions taken during his time at the state-owned utility entity.

As part of the investigative measures, Mr. Tuong was formally charged by competent authorities. This development prompted an immediate and transparent response from GELEX Group, aimed at maintaining market confidence and ensuring that stakeholders—including shareholders, investors, and business partners—remain fully informed about the separation between his former professional duties and his recent role within the GELEX ecosystem.

Organizational Stability and Governance

GELEX has emphasized that Mr. Tuong’s role at GELEX Electric was limited to a position on the Board of Directors. He was not involved in the day-to-day operational management of the business. The company maintains a robust, professional management structure that ensures continuity, regardless of individual board-level changes.

According to the official statement, all core business activities, financial management, investment strategies, and cash flow operations at GELEX Electric, as well as its subsidiaries such as CADIVI and THIBIDI, remain entirely unaffected. The management apparatus at these entities continues to function under established corporate governance frameworks, which are designed to withstand individual leadership transitions and ensure regulatory compliance.

Corporate Actions and Structural Adjustments

In a swift response to the situation, the Boards of Directors at GELEX Electric, CADIVI, and THIBIDI acted promptly to align their governance structures with the new circumstances. On September 14, these boards issued resolutions to solicit written shareholder opinions regarding the formal removal of Mr. Dang Phan Tuong from his position as a Board member.

The basis for this decision is the determination that Mr. Tuong no longer meets the necessary criteria and conditions required for a member of the Board of Directors, as stipulated by the company’s internal bylaws and relevant national laws. This proactive approach underscores the group’s commitment to high standards of corporate governance and its determination to insulate its operational entities from external legal pressures.

Understanding the GELEX Ecosystem

To understand why the company has been so quick to clarify its position, it is essential to consider the scale of the GELEX Group. As one of Vietnam’s leading multi-industry conglomerates, GELEX holds a dominant market share in the production of electrical equipment. Its subsidiaries, such as the Vietnam Electric Cable Corporation (CADIVI) and the Electrical Equipment Joint Stock Company (THIBIDI), are critical components of the national power infrastructure.

Because these companies are essential to the nation’s energy grid, any perceived instability can cause jitters in the financial markets. By providing a clear, evidence-based account of the situation, GELEX aims to prevent the spread of misinformation that could impact stock performance or investor relations.

Chronology of Events

• Historical Context: The allegations and subsequent investigation focus on events from the period when Mr. Dang Phan Tuong held positions at the National Power Transmission Corporation (EVNNPT).
• The Announcement: Following the official notification of charges, GELEX Group launched an internal review to assess any potential risks to its operations or compliance.
• September 14: The Boards of Directors of GELEX Electric, CADIVI, and THIBIDI officially convened to pass resolutions for the removal of Mr. Tuong from the board, citing that he no longer met the required standards for board membership.
• Communication: GELEX issued a public statement clarifying that Mr. Tuong’s past activities were unrelated to his current board roles, reaffirming that the company’s strategic goals remain unchanged.

Market Implications and Investor Relations

In the wake of the news, market analysts have observed that GELEX’s proactive stance is a standard, yet vital, practice for large-cap companies. The immediate separation of the individual from the institution is intended to reassure investors that the corporate strategy, which includes aggressive expansion in industrial real estate and renewable energy, remains on track.

Financial experts note that while headlines regarding high-level officials can lead to short-term market volatility, the actual impact on a company’s fundamentals—such as revenue, net profit, and order backlogs—is often minimal if the management team remains intact and the governance structure is sound. In this instance, GELEX has demonstrated that its decision-making power resides with an executive team that is distinct from the board members whose roles are subject to change.

Commitment to Transparency and Compliance

GELEX has reiterated its commitment to operating in strict accordance with the laws of Vietnam. In its communication to shareholders and investors, the Group stated: "We urge our shareholders, investors, and all relevant parties to remain calm and prudent in receiving and evaluating information. Prioritize official sources of information from the business and authorities to have a basis for an objective and complete assessment of the company’s operations and development."

The company maintains that it has fulfilled all obligations and commitments to its shareholders, customers, and partners. The current financial health of the group remains stable, supported by a strong balance sheet and a clear pipeline of projects for the remainder of the fiscal year.

Future Outlook

Looking ahead, the removal of Mr. Tuong from the boards of GELEX Electric and its subsidiaries is expected to close this chapter for the company’s corporate governance. The focus now shifts back to the execution of the 2024-2025 strategic plan, which involves scaling up industrial park development and optimizing the efficiency of the electrical equipment manufacturing units.

The resilience of the GELEX brand, which has spent years building a reputation as a leader in the industrial sector, will be tested by the market’s reaction to this news. However, the company’s rapid regulatory response—aligning with corporate laws and keeping shareholders in the loop—suggests a mature approach to crisis management.

By separating the individual’s legal troubles from the corporation’s health, GELEX is signaling to the market that its institutional framework is robust enough to navigate legal challenges without compromising its operational integrity. As the legal proceedings regarding Mr. Tuong continue, GELEX is expected to maintain its policy of full cooperation with the authorities while focusing on its primary mandate: the sustainable growth of its industrial and energy infrastructure assets.

In conclusion, the situation serves as a reminder of the complexities of corporate governance in Vietnam’s evolving market, where the personal legal history of high-level personnel can intersect with public-listed entities. GELEX’s clear, documented, and proactive strategy serves as a template for how large conglomerates can manage such incidents while maintaining the trust of their global and domestic investors. The group’s operations continue as scheduled, with no changes to its long-term investment strategies or financial commitments.