HCMC-based Thuduc House returns to profit under new board of directors

Thuduc Housing Development Corporation (Thuduc House) posted nearly VND19 billion ($726,720) in H1 net profit, a sharp turnaround from a loss of more than VND33 billion ($1.26 million) in the same period last year.

Thuduc House, listed on the Ho Chi Minh Stock Exchange as TDH, reported nearly VND26 billion ($994,455) in net revenue in the period.

In Q2/2025, although net revenue dipped 11% year-on-year to nearly VND18 billion ($688,649), cost-cutting efforts helped lift gross profit to over VND6 billion ($229,489), doubling from the same period last year, according to its consolidated financial statement.

Its main revenue driver remained service provision, which brought in over VND6 billion. In addition, the company generated nearly VND6 billion in revenue from the sale of goods and finished products - likely stemming from its home appliance segment launched in May.

At the 2025 AGM on June 27, CEO Tran Thi Lien said although the segment had been in operation for less than a month, it already accounted for 12% of the company’s H1 revenue. The CEO expressed her hope that the segment would contribute more to Thuduc House’s revenue in the future.

On the cost side, Thuduc House slashed administrative expenses by 63% to just over VND11 billion ($420,731) in Q2, mainly due to the absence of a nearly VND26 billion ($994,455) provision for doubtful debts recorded in the same period last year.

The company attributed the drop in expenses to an operational restructuring strategy aimed at enhancing management efficiency and eliminating unnecessary costs. The absence of provisioning also signals an improved financial position compared to the corresponding period last year.

Another bright spot was a surge in other income, which reached nearly VND17 billion ($650,220), compared to just over VND200 million ($7,650) in the same period last year.

The windfall largely came from more than VND18 billion ($688,470) in compensation the company received under an appellate court ruling related to an electronics component case from 2017–2019.

Regarding the enforcement of the court ruling, the company said the total compensation required from the defendants amounted to nearly VND348 billion ($13.31 million). As of the end of June 2025, the company had received VND52.4 billion ($2 million).

Thanks to the absence of provisioning and a surge in other income, Thuduc House under its new board of directors posted over VND13 billion ($497,230) in net profit for Q2, a sharp rebound from a loss of nearly VND26 billion ($994,455) in the same period last year.

After six months, it had fulfilled over 30% of its full-year profit target set by the 2025 AGM.

On the balance sheet, Thuduc House’s total assets stood at nearly VND694 billion ($26.54 million) as of June 30, roughly unchanged from the beginning of the year. Short-term receivables and inventories rose 11% and 9% respectively, reaching VND117 billion ($4.48 million) and VND250 billion ($9.56 million).

In contrast, total liabilities fell 2% to VND602 billion ($23 million), mainly due to a 15% drop in customer prepayments, which declined to VND253 billion ($9.68 million).

Notably, the company reported over VND7 billion ($267,740) in outstanding loans at the end of June 2025, marking a return to borrowing after a debt-free period from late 2021 to 2024. The entire amount was a loan taken by its subsidiary, Thuduc House Service Exploitation Co., Ltd., from Eximbank’s Cong Hoa branch in HCMC.

In November 2024, Thuduc House appointed Tran Thi Lien as general director, replacing Nguyen Hai Long who becomes its senior advisor. Under the board’s decision, Lien will hold the position until the end of the term in 2025.

Long previously resigned "per his wish". He will become a senior advisor to the board of directors, the board chairman, and the general director.

Thu Duc House's senior personnel has been in constant turmoil since 2022. The company’s apparatus gradually became more stable after Nguyen Quang Nghia became chairman.

However, the first two CEOs after Thuduc House had a new board of directors resigned after holding the position for less than a year.

Thuduc House is regularly subject to tax enforcement by the Ho Chi Minh City Tax Department due to violations in electronic component export activities during 2017-2019.

On the HoSE, TDH shares closed Friday at VND4,700 ($0.18) each.