Hai Phong Thermal Power CEO arrested over alleged document forgery

Hai Phong Thermal Power JSC said its CEO, Duong Son Ba, has been arrested by the Ministry of Public Security's investigative agency for alleged forgery of documents belonging to organizations.

The company, registered on the unlisted public companies market (UPCoM) as HND, disclosed the information last Friday in an extraordinary filing related to senior management changes.

According to documents submitted to the State Securities Commission of Vietnam and the Hanoi Stock Exchange, the company received a notice dated May 21 from the investigative agency.

The notice stated that investigators had initiated legal proceedings against and detained Duong Son Ba, who also served as the company’s legal representative, to investigate alleged “forgery of documents of agencies and organizations.”

Following the announcement, the company appointed Ta Cong Hoan, chairman of the board, as its new legal representative.

Hai Phong Thermal Power has recently been mentioned in an ongoing nationwide investigation into alleged violations involving environmental monitoring activities.

According to preliminary information from authorities, several large thermal power plants, including Quang Ninh Thermal Power, Hai Phong Thermal Power and Thai Binh 2 Thermal Power, along with multiple companies operating in aluminum, steel and environmental services, were identified as facilities generating large volumes of emissions and wastewater.

Investigators suspect that environmental monitoring data transmitted to local regulators had been manipulated or altered to make pollution indicators exceeding permitted thresholds appear compliant.

Hai Phong Thermal Power was established in September 2002. Power Generation Corporation 2 holds a 51% stake, while Pha Lai Thermal Power owns 25.97%.

According to the company’s self-prepared financial statements, Q1/2026 revenue declined nearly 13% year-on-year from more than VND3.19 trillion ($121 million) in the same period last year.

Gross profit narrowed sharply to around VND191 billion ($7.25 million) as cost of goods sold remained high. Pre-tax profit fell more than 60% year-on-year to nearly VND119 billion ($4.52 million), while after-tax profit stood at approximately VND105 billion ($3.98 million), a dramatic reduction year-on-year.

The weaker results reflected continued pressure on thermal power producers from input costs and electricity dispatch conditions.

As of March 31, 2026, the company’s total assets exceeded VND13 trillion ($493.25 million). Cash and deposits continued to account for a significant portion of assets, while liabilities remained at several trillion dong (VND1 trillion = $37.94 million), mainly related to short-term payables and financial obligations tied to plant operations.

Hai Phong Thermal Power was assigned by the Vietnamese government in late 2002 to develop the Hai Phong Thermal Power Plant project. It was later tasked with implementing the Hai Phong 2 Thermal Power Plant project to meet rising electricity demand. The two plants required combined investment of around $1.2 billion.

According to company disclosures, the plants generate about 7.2 billion kWh of electricity annually, producing average yearly revenue of around VND9 trillion ($341.48 million) since commencing operations and contributing more than VND400 billion ($15.18 million) in taxes to the state budget.

Following news of the arrest, HND shares fell to the daily limit-down level of VND10,500 ($0.4) per share after declining 0.94% by the close of the morning trading session on Monday.