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.
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.