Trung Nam Group’s solar power unit reports $5.3 mln in 2024 after-tax profit

Trung Nam Thuan Nam Solar Power Co., Ltd., a subsidiary of Vietnamese private conglomerate Trungnam Group, has announced a strong financial recovery in 2024, with an after-tax profit of VND138 billion ($5.28 million).

In its periodic financial report recently submitted to the Hanoi Stock Exchange, Trung Nam Thuan Nam reported a pre-tax profit of approximately VND170 billion last year.

These figures mark a sharp turnaround from its record loss of VND1 trillion ($38.25 million) in 2023, reducing its accumulated loss from VND987 billion to VND849 billion ($32.47 million).

At the end of 2024, Trung Nam Thuan Nam’s equity stood at more than VND1.56 trillion ($59.67 million), while its total liabilities declined by around 4% to nearly VND8.78 trillion ($335.82 million). Notably, over half of this debt was from domestically issued private bonds.

The company also showed improved capital structure and liquidity indicators. For example, its debt-to-equity ratio decreased from 6.4 times to 5.6 times.

When Trung Nam Thuan Nam first disclosed financial information to the Hanoi Stock Exchange in 2021, it reported an after-tax profit of over VND400 billion ($15.3 million). It then posted another VND80 billion in profit in 2022, before experiencing severe volatility and the record loss in 2023.

Formerly known as Phuoc Minh Solar Power JSC, the company was established in April 2018 and renamed in 2020. Its founding shareholders included Trung Nam Hydropower JSC (5%), Trung Nam Construction Investment JSC (92%), and Do Hai Nam (3%).

In August 2024, Trung Nam Thuan Nam announced that its entire capital was held by Trung Nam Tra Vinh Solar Power JSC. Two months later, it updated that the new owner was Trung Nam Tra Vinh Investment JSC.

This company is a subsidiary of Trungnam Group, which operates across five core sectors: energy, infrastructure, construction, real estate, and electronic information technology.

Trung Nam Thuan Nam is the investor behind the 450 MW solar power plant project, which includes a 220/500 kV substation and transmission line located in former Ninh Thuan province (now Khanh Hoa province in central Vietnam).

The project, covering an area of 557 hectares, involved more than 1.3 million solar panels and entered synchronized operation in October 2020, with a total construction cost of VND12 trillion ($458.98 million).