Construction giant Hoa Binh records $110 mln loss in 2022

Leading Vietnamese construction contractor Hoa Binh (HBC) made a loss of nearly VND2.59 trillion ($110.3 million) in 2022, according to its audited financial statement.

The loss was VND1.46 trillion ($61.9 million) higher than the pre-audit tally.

Audited figures will be officially released at the company's annual general meeting of shareholders (AGM) on June 27, the company said.

Its 2022 net revenues reached VND14.15 trillion ($601.4 million), up 25% year-on-year.

Hoa Binh targets post-tax profits of VND100 billion ($4.25 million) on revenues of VND7.5 trillion ($318.8 million) in 2023.

The construction giant also plans a private placement issue of 274 million shares this year at a minimum price of VND12,000 ($0.51) per share. If the issue is successful, the minimum proceeds is estimated at VND3.29 trillion ($139.77 million).

The proceeds will be used to supplement business capital, swap debt with partners (subcontractors, suppliers, manufacturers), service loans and invest in project development.

On May 17, the Ho Chi Minh Stock Exchange had announced the transfer of HBC shares of Hoa Binh from controlled to restricted trading starting May 23, because the company had delayed submission of its 2022 audited financial statement by more than 45 days. Accordingly, HBC shares will not be traded in the morning session starting May 23.

Hoa Binh reported a net loss of more than VND440 billion ($18.75 million) in the first three months of 2023, marking its second quarter of loss in a row. In the same period, its revenues plunged nearly 60% year-on-year to nearly VND1.2 trillion ($51.14 million).

At the end of Q1/2023, its accumulated losses of more than VND1.1 trillion ($46.88 million) exceeded its charter capital (VND2.74 trillion) by more than 40%.