Leading builder Hoa Binh Construction suffers $48 mln loss in 2022

Hoa Binh Construction Group reported a net loss of over VND1,140 billion ($48.34 million) in 2022, the first loss in its history, due to bad results in the fourth quarter.

In 2021, the group (HBC), one of the most prominent construction contractors in the country, recorded a net profit of VND97 billion ($4.11 million).

Its net revenue last year reached VND14,122 billion ($598.83 million), up 24% and fullfilling 80% of its target, according to the company's consolidated financial statement.

In Q4, Hoa Binh recorded net revenue of VND3,218 billion ($136.46 million), down 16% year-on-year. It suffered a gross loss of VND426 billion ($18.06 million) in the quarter, while posting a gross profit of over VND265.5 billion ($11.26 million) in the same period of 2021.

As of December 31, 2022, HBC's total assets stood at VND16,926 billion ($717.74 million), up 2% compared to the beginning of the year. The remarkable aspect was the sharp decrease in cash and cash equivalents, down 33% to VND493 billion ($20.91 million).

On Thursday, the Ho Chi Minh Stock Exchange (HoSE) sent an official letter reminding HBC of the late submission of its Q4/2022 financial statement.

According to HBC, due to the long Lunar New Year holiday and the group having many projects across the country, there had been a delay in compiling all of the group's financial statements.

In addition, due to the unusual fluctuations in its senior personnel, the group had faced many difficulties completing its financial statement and timely disclosure of information. HBC would like to extend the announcement of its Q4 financial statement until February 10, 2023 at the latest.

In a document dated January 31, 2023, the HoSE reminded a series of listed companies that they had not published Q4 financial statements as regulated.

This list included large companies like HBC, FLC Group (FLC); Vinh Hoan Corporation (VHC), An Pha Petrol JSC (ASP), Dong A Plastic JSC (DAG), Apax Holdings (IBC), Petrolimex Gas Corporation - JSC (PGC), Sunstar Investment JSC (SJF), Vietnam Electricity Construction Joint Stock Corporation (VNE), and Vietnam Power Development JSC (VPD).

Following the reminder, most companies on the list had announced their Q4 financial statements by February 8, apart from HBC, VNE and Apax Holdings.

A power struggle is taking place among HBC’s board members related to the position of chairman. In January, the Ho Chi Minh City Department of Civil Judgment Enforcement issued a decision forcing HBC to cease enforcing three resolutions that caused an internal conflict among its board members.

Under the decision, Le Viet Hai will continue to serve as board chairman and legal representative of Hoa Binh Construction Group until the case is resolved by a valid decision or verdict of the arbitral tribunal under the Vietnam International Arbitration Center (VIAC).