According to its Quarter I financial report, as of 31/3, Hoa Phat Group's total financial debt stood at over 90,600 billion VND, a decrease of approximately 2,000 billion VND compared to the end of last year. The primary reason for this reduction is the company's initiation of loan repayments for the Dung Quat 2 project.

Despite the decrease in debt, Hoa Phat's financial expenses surged by 18% to nearly 1,900 billion VND, reaching an unprecedented high. Of this amount, 72% constituted interest payments, totaling 1,359 billion VND, or about 15 billion VND per day. The company attributed this rise in costs to the cessation of capitalization after Dung Quat 2 became operational, coupled with high interest rates in Quarter I.

VnExpress noted that deposit interest rates at many banks for a 12-month term are currently around 6,5-7,5% annually, an increase of 1-3% compared to the end of last year.

The Hoa Phat Dung Quat 2 integrated steel complex, located in Quang Ngai province, spans 280 hectares with a total investment of 85,000 billion VND. It has a designed capacity of 5,6 million tons of HRC per year. In Quarter I, this project operated at full capacity.

Despite facing record interest expenses, Hoa Phat stated that this item remains under control and has not pressured core operational efficiency. In the first quarter, the company, led by billionaire Tran Dinh Long, reported revenues exceeding 53,300 billion VND, a 40% increase year-on-year.

Similar to previous quarters, steel sales continued to account for 96% of the group's total revenue, amounting to 51,221 billion VND. Steel sales volume reached 3 million tons, improving by 26% compared to the same period last year.

An interior view of a Hoa Phat Group factory. Photo: HPG

During the period, Hoa Phat's financial income reached over 5,900 billion VND, representing a 13,5-fold increase year-on-year. This surge in income was primarily due to the group's transfer of a real estate project in Pho Noi, Hung Yen province.

After deducting expenses, the company's after-tax profit exceeded 9,055 billion VND, 2,7 times higher than the same period last year. After-tax profit attributable to parent company shareholders reached 8,994 billion VND, a 170% increase compared to Quarter I/2025, marking its highest in the past 5 years.

This year, Hoa Phat plans for 210,000 billion VND in revenue and 22,000 billion VND in after-tax profit, increases of 33% and 42% respectively compared to 2025 figures. This means the company has already completed approximately 41% of its profit target.

During this year's annual general meeting, Chairman Tran Dinh Long shared that Hoa Phat's strategy is to continue expanding and investing deeply in the steel sector. The company also plans to develop its real estate segment, focusing on projects in prime locations with reasonable prices and, most importantly, meeting genuine demand.

Trong Hieu