The Ho Chi Minh City Stock Exchange (HoSE) recently notified DRH Holdings (DRH) of a potential delisting of its stock. The reason is the company's accumulated after-tax loss of more than 131 billion dong as of June 2025.
DRH Holdings has been reporting losses for the past two and a half years. In 2023, the after-tax loss was over 103.8 billion dong, followed by a loss of nearly 203.4 billion dong in 2024. The first half of this year saw a further loss of almost 50.4 billion dong.
Regulations stipulate that a company with three consecutive years of negative after-tax profit is ineligible for listing. Therefore, if DRH Holdings continues to report losses for the remainder of the year, it will be delisted from HoSE.
Currently, DRH stock is under warning and subject to control due to the accumulated losses and the qualified audit opinions issued for the 2023 and 2024 financial statements. The auditor expressed concerns about the company's ability to continue operating.
Specifically, the auditor stated an inability to assess the impact of the use of funds from two bond issuances with outstanding debts of approximately 568 billion dong. Both bond issuances are past their maturity dates. In addition, interest payments are overdue by approximately 195.5 billion dong.
The auditor also noted the lack of sufficient evidence regarding the validity of loans, joint ventures, and investment trusts, and expressed an inability to assess their recoverability. The auditor also highlighted the net loss in the first half of the year and the overdue tax debt.
In an explanation submitted to the State Securities Commission (SSC) and HoSE, DRH Holdings' management stated they are continuing to develop and implement business plans to ensure sufficient cash flow to meet obligations to bondholders and maintain business operations. The company is continuing construction of the Aurora high-rise apartment project (Vo Van Kiet Street, Ho Chi Minh City), accelerating construction since April to ensure the project remains on schedule, maintain customer payments according to the schedule, and hand over the project in the fourth quarter of this year.
Currently, the company's bond issuances are past due, and bondholders have approved a plan to dispose of the collateral. Accordingly, the company expects procedures for handling the collateral, including shares of KSB (Binh Duong Minerals and Construction Joint Stock Company) and land use rights in Tang Nhon Phu ward (Ho Chi Minh City), will begin, and funds will be recovered to pay the overdue bond obligations by the end of November.
DRH Holdings is also in the process of transferring one of its projects, anticipating the proceeds will cover principal and interest payments to bondholders in the final quarter. The company also pledged to collect overdue debts promptly in the fourth quarter.
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D-Vela Residences project on Huynh Tan Phat Street, Ho Chi Minh City. Photo: DRH |
D-Vela Residences project on Huynh Tan Phat Street, Ho Chi Minh City. Photo: DRH
DRH Holdings, formerly known as Dream House Construction and Trading Joint Stock Company, was established in 2006. Its core businesses are real estate and financial investments. The company is the developer of two apartment projects, D-Vela Residences and Aurora Residences, and two townhouse projects, Central Garden and Symbio Garden, all located in Ho Chi Minh City.
With its investment in KSB, DRH Holdings has also expanded into the construction materials sector. In addition, the company is co-developing the KSIP Bac Tan Uyen industrial park.
Tat Dat
