Trung Nam Solar Power JSC's bank loans fully repaid

Trung Nam Solar Power JSC recorded a four-year high profit in 2024, with financial health and payment index improved significantly.

By end-2024, shareholders’ equity reached VND1,659 billion ($62.78 million), an increase of VND367 billion from the beginning of the year, according to the company's newly-released 2024 financial statements.

Of this, charter capital remained at VND1,000 billion ($37.84 million), while undistributed post-tax profit rose from VND279 billion to VND646 billion ($24.44 million).

This result was driven by the company’s net profit after tax of VND367 billion ($13.89 million) in 2024, up 32% year-on-year. This is the highest profit recorded since Trung Nam Solar Power began publishing financial results on the Hanoi Stock Exchange.

Between 2021 and 2023, its annual net profit after tax ranged only between VND251 billion and VND285 billion ($10.78 million).

Meanwhile, total liabilities fell from VND2,780 billion to VND2,599 billion ($98.35 million).

The company fully repaid its bank loans of nearly VND24 billion ($908,160). Bond debt also declined by VND69.5 billion to VND1,800 billion ($68.11 million), and other payables decreased from VND886 billion to VND799 billion.

As a result, the company’s debt-to-equity ratio improved substantially, from 2.15 to 1.57. Payment capability ratios rose from below 0.5 to above 1.5, while the interest coverage ratio increased from 2.16 to 3.15.

This means Trung Nam Solar Power’s only remaining debt is bonds. In 2019, the company issued 12 tranches of bonds to finance its power plant, with maturities ranging from 2026 to 2028.

At the end of 2024, its bond debt stood at over VND2,700 billion ($102.17 million). This means that within three years, it has repaid more than VND900 billion ($34.06 million) in bonds.

The company reported frequent delays in bond principal and interest payments in 2024 due to late electricity revenues. However, such delays were no longer observed in the first half of 2025.

Trung Nam Solar Power JSC is the investor behind the Trung Nam solar power plant, with a maximum capacity of 450 million kWh annually.

The company was previously a member of Trung Nam Group but, in 2024, it was officially acquired by Asia Renewable Energy Investment & Development Co., Ltd.