Leading contractor Hoa Binh Construction suffers second consecutive quarter loss
Hoa Binh Construction Group 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.
The construction giant, listed on the Ho Chi Minh Stock Exchange as HBC, recorded a revenue of nearly VND1.2 trillion ($51.14 million) in Q1, down nearly 60% year-on-year, according to its financial statement.
It posted a gross loss of more than VND200 billion ($8.52 million) from main activities, as compared to a gross profit of nearly VND200 billion in the first quarter of 2022.
Empire City Thu Thiem in HCMC - a project built by Hoa Binh Construction Group. Photo courtesy of Hoa Binh.
By the end of Q1, Hoa Binh's total assets reached nearly VND15.7 trillion ($669 million), down over VND1.2 trillion ($51.14 million) from the beginning of the year.
Its accumulated loss by the end of the first quarter was more than VND1.1 trillion ($46.88 million), equivalent to more than 40% of its charter capital (VND2.74 trillion).
As a bright spot, Hoa Binh’s short-term receivables from customers decreased by more than VND1 trillion ($42.6 million) in Q1, with falling short- and long-term outstanding loans.
Hoa Binh incurred a net loss of over VND1.14 trillion ($48.34 million) in 2022, the first loss in its history, due to bad results in the fourth quarter.
Earlier this year, Hoa Binh experienced a "power war" between its founder Le Viet Hai and independent board member Nguyen Cong Phu regarding the position of board chairman.
After the Ho Chi Minh City Department of Civil Judgment Enforcement issued a decision forcing Hoa Binh to cease enforcing three resolutions that caused an internal conflict among its board members, Le Viet Hai continued as board chairman and legal representative of the group.
Hoa Binh is not the only construction contractor in Vietnam hit by the real estate crisis, which resulted in cash flow congestion and increasing bad debt among developers. For example, Coteccons Construction Joint Stock Company also saw its Q1 net profit drop 25% to only VND22 billion ($937,600).
HBC closed the Friday trading session at VND8,170 ($0.35) per share.
- Related News
- Read More
Vietnam to add biomass power to DPPA: draft decree
Vietnam’s Ministry of Industry and Trade plans to add biomass power to the direct power purchase agreement (DPPA) mechanism, according to its draft decree to replace Decree 80/2024 on DPPA mechanism.
Energy - Mon, January 20, 2025 | 12:39 pm GMT+7
Vietnam dairy giant Vinamilk contributes $70 mln to shareholder Fraser and Neave's profit
Vinamilk, one of the biggest dairy firms in Vietnam, contributed SGD95 million ($69.5 million) to the profit before interest and tax (PBIT) of Fraser and Neave (F&N), a shareholder.
Companies - Mon, January 20, 2025 | 11:49 am GMT+7
Korean bank Shinhan, Vietnam insurer PJICO ink strategic cooperation deal
South Korea’s Shinhan Bank Vietnam Limited and Petrolimex Insurance Corporation (PJICO) have signed a strategic cooperation agreement to leverage the potential of both sides.
Banking - Mon, January 20, 2025 | 11:17 am GMT+7
Vietnam's fertilizer exports hit nearly $710 mln in 2024
Vietnam's fertilizer exports totaled approximately 1.73 million tons in 2024, generating nearly $710 million in revenue, with an average price of $411.1 per ton.
Economy - Mon, January 20, 2025 | 9:08 am GMT+7
Vietnam holds potential to become Czech carmaker Skoda's manufacturing hub in ASEAN: exec
Vietnam boasts great potential to become an auto export and manufacturing hub of the Czech Republic’s Skoda Auto in ASEAN and other markets, said its chairman Klaus Zellmer.
Industries - Sun, January 19, 2025 | 11:30 pm GMT+7
Vietnam PM calls on Czech giant Sev.en Global to expand investment into wind, solar power
The Czech Republic’s Sev.en Global Investments, given its strengths, should expand investment in Vietnam into areas like wind and solar power, culture and sports, and football, said Prime Minister Pham Minh Chinh.
Industries - Sun, January 19, 2025 | 10:59 pm GMT+7
Northern Vietnam port operator posts record revenue, profit in 2024
Hai Phong Port JSC, headquartered in the northern city of Hai Phong, reported total throughput of nearly 40 million tons in 2024, with revenue reaching nearly VND3 trillion ($118.44 million) and pre-tax profit estimated at VND1.16 trillion ($45.8 million).
Companies - Sun, January 19, 2025 | 4:07 pm GMT+7
Vietnam's new regulations in energy, mineral and construction sectors
The Vietnamese government recently introduced the amended PDP8 implementation plan, the tariff for rooftop solar energy in 2025, new rules on management of construction activities, and the new Law on Geology and Minerals. Vilaf law firm provides analyses on these newly-promulgated regulations.
Consulting - Sun, January 19, 2025 | 1:38 pm GMT+7
Indonesia prepared for impacts of US trade policies
Indonesian Minister of Trade Budi Santoso has affirmed his country's readiness to address potential impacts of a trade war between the U.S. and China when Donald Trump assumes the presidency.
Southeast Asia - Sun, January 19, 2025 | 12:34 pm GMT+7
Japan's Itochu acquires 20% stake in Thai non-life insurance company
Japanese trading firm Itochu is set to purchase a 20% stake in Thailand's non-life insurer Thaivivat Insurance, a deal that highlights the global investor’s interest in the Southeast Asian country’s growing insurance market.
Southeast Asia - Sun, January 19, 2025 | 12:29 pm GMT+7
Laos-based 600 MW Monsoon wind power to export energy to Vietnam soon
The 600 MW Monsoon wind power project in Laos is reaching final phases of construction and will soon export electricity to Vietnam, investor Monsoon Wind Power reported.
Energy - Sun, January 19, 2025 | 9:51 am GMT+7
Japan-invested port terminal operator in northern Vietnam achieves record throughput in 2024
Tan Cang Hai Phong International Container Terminal Company Limited (TC-HICT) has announced a record container handling volume of over 1.6 million TEUs in 2024, up 26% year-on-year.
Companies - Sun, January 19, 2025 | 8:00 am GMT+7
China's Exquisite Power launches $20 mln battery factory in Vietnam
China-invested Vietnam Exquisite Power Technology Company Limited launched its $20-million factory in Vietnam’s northern coastal city of Hai Phong on Friday.
Industries - Sat, January 18, 2025 | 10:46 pm GMT+7
Central Vietnam city licenses 3 FDI projects worth $190 mln
Vietnam’s central coastal city of Danang has granted investment registration certificates to four foreign-invested projects totaling $190 million.
Industries - Sat, January 18, 2025 | 10:35 pm GMT+7
Thailand to launch new carbon credits market
Thailand aims to introduce a new carbon credits market this year as the Southeast Asian nation seeks to address weak demand and low prices.
Southeast Asia - Sat, January 18, 2025 | 7:57 pm GMT+7
Malaysia defines two priorities to ensure food security
Malaysia's Ministry of Agriculture and Food Security (KPKM) has set two major priorities for this year - reforming the national rice and paddy industry, and increasing productivity in the ruminant sector, particularly beef and buffalo meat production.
Southeast Asia - Sat, January 18, 2025 | 7:52 pm GMT+7
