AsemconnectVietnam - Hoa Binh Construction Group Corporation (code HBC - UPCoM) recorded a decline in business results in the first quarter of 2025, still with an accumulated loss of VND2,293.9 billion, equal to 66.1% of charter capital.

In the first quarter of 2025, Hoa Binh Construction recorded revenue of VND691.96 billion, down 58.1% over the same period; profit after tax reached VND5.39 billion, down 90.5%. In which, gross profit margin improved from 1.3% to 7.6%.
During the period, gross profit increased by 145.8% over the same period, equivalent to an increase of VND31.12 billion, to VND52.46 billion; Financial revenue decreased by 90.5%, equivalent to a decrease of VND102.89 billion, to VND10.8 billion; financial expenses decreased slightly by 3%, equivalent to a decrease of VND2.95 billion, to VND96.88 billion; sales and administrative expenses recorded a negative VND32.5 billion compared to the same period, negative VND14.48 billion; other profits increased by 200.3%, equivalent to an increase of VND6.45 billion, to VND9.67 billion and other activities fluctuated insignificantly.
In terms of core business activities (gross profit - financial expenses - sales and administrative expenses), in the first quarter, Hoa Binh Construction recorded a loss of VND11.92 billion compared to the same period, a loss of VND64.01 billion.
Thus, in the first quarter of 2025, the gross profit generated by Hoa Binh Construction is not enough to cover financial, sales and business management costs. The Company makes a profit thanks to financial revenue and other operating profits.
In 2025, Hoa Binh Construction plans to have total revenue of VND9,000 billion, and an expected after-tax profit of VND360 billion. Thus, at the end of the first quarter, Hoa Binh Construction has only completed 1.5% of the annual profit plan.
Although it made a profit in the first quarter of 2025, as of March 31, 2025, Hoa Binh Construction still has an accumulated loss of VND2,293.9 billion, equal to 66.1% of charter capital (charter capital of VND 3,472.1 billion).
Regarding asset size, as of March 31, 2025, Hoa Binh Construction's total assets decreased slightly by 1.8% compared to the beginning of the year, equivalent to a decrease of VND275.8 billion, to VND15,136 billion. Of which, the main assets recorded VND10,236.8 billion in short-term receivables, accounting for 67.6% of total assets; inventories recorded VND2,793.5 billion, accounting for 18.5% of total assets; fixed assets recorded VND1,003.5 billion, accounting for 6.6% of total assets and other items.
Notably, for receivables alone, at the end of the first quarter, Hoa Binh Construction had set aside VND1,792.4 billion in provisions for short-term doubtful receivables. In which, the Company did not explain the structure of these provisions.
In addition, at the end of the first quarter, real estate goods increased by VND143.8 billion to VND453.8 billion. Of which, VND256.59 billion was land use rights; and VND227.2 billion was apartments in some projects.
In addition, in terms of capital, by the end of the first quarter, total short-term and long-term debt decreased slightly by 5.8% compared to the beginning of the year, corresponding to a decrease of VND252.3 billion, to VND4,098.4 billion and equal to 234.1% of equity. Of which, short-term debt was VND3,568.4 billion and long-term debt was VND530 billion.
N.Nga
Source: VITIC/Tinnhanhchungkhoan