Construction Corporation No. 1 - JSC (CC1) reported these figures in its Q1/2026 financial statement. Gross profit reached 109 billion VND, up 29% compared to the same period last year, reflecting efficiency from expanding construction operations. However, pre-tax profit decreased by 6%, indicating persistent cost pressures, especially amid volatile construction material prices.

According to CC1's leadership, a notable highlight was the reversal of net cash flow from operating activities, which reached 735.4 billion VND, a significant improvement from the negative 481.6 billion VND recorded in the same period last year. This development demonstrates a clear improvement in the company's ability to recover debts and receive payments from completed projects. Simultaneously, reducing accounts receivable and narrowing inventory levels also contributed to the enhanced quality of cash flow.

A significant change on the balance sheet was the prepayment to suppliers, which totaled 6.069 trillion VND, a 23.3% increase from the end of the previous year. The company stated this reflects the specific cycle of project implementation and a proactive resource strategy in response to an increasing workload.

As of 31/3, CC1's total assets exceeded 18.756 trillion VND, an increase of 9.3% compared to the end of 2025, representing a rise of 1.593 trillion VND. The scale of assets continues to expand, aligning with the company's operational growth momentum.

CC1's headquarters. Photo: CC1

CC1 currently holds an estimated backlog value of over 42.5 trillion VND, providing a foundation for growth in the coming years. Its contract portfolio includes large-scale infrastructure projects such as Ring Road 4 - Hanoi Capital Region, Bao Loc - Lien Khuong Expressway, Cat Lai Bridge, and Long Hung Bridge (Dong Nai 2).

The substantial workload necessitates early mobilization of materials, labor, and construction capacity. The increase in prepayments to suppliers and subcontractors is a strategic move to ensure the simultaneous progress of various projects, meeting the increasingly demanding requirements from investors.

A company representative stated that amid fluctuating construction material prices, particularly influenced by energy costs and supply, advance payments help stabilize input prices and mitigate inflation risks. This mechanism also supports the company in proactively managing resources and maintaining project schedules and construction quality.

From a financial perspective, the increased scale of prepayments is considered appropriate for the volume of ongoing contracts. Given the common practice of advance payments in the construction industry, this level reflects expectations for significant disbursements and project execution in the near future.

Perspective of Cat Lai cable-stayed bridge - one of the projects CC1 is implementing. Photo: CC1

The company indicates that CC1's growth potential remains strong as many projects enter their final stages, preparing for revenue recognition. As these projects are handed over, business prospects are expected to improve, enhancing both revenue and profit.

Focusing on infrastructure and consistently participating in key national projects in recent years has helped CC1 maintain its growth trajectory and operational stability in a fluctuating market.

Ha Hoang