Hoa Phat Group recently announced its second-quarter business results, reporting revenue of 36 trillion VND, a 9.8% decrease compared to the same period last year. However, its post-tax profit reached 4.3 trillion VND, a 29.5% increase and the highest since the first quarter of 2022.

A Hoa Phat representative attributed the lower second-quarter revenue to decreased steel prices at certain points during the quarter. However, profits still increased due to favorable input costs, particularly for ore and coal.

During the second quarter, billionaire Tran Dinh Long's conglomerate produced 2.5 million tons of crude steel, a 10% increase compared to the same period last year. Sales of hot rolled coil (HRC) steel, construction steel, high-quality steel, and steel billets reached 2.6 million tons, an 18% increase.

For the first six months of the year, Hoa Phat achieved 74 trillion VND in revenue and 7.6 trillion VND in post-tax profit, representing a 5% and 23% increase respectively compared to last year. The company sold 5 million tons of steel in the first half of the year, a 23% increase.

This year, Hoa Phat aims for 170 trillion VND in revenue and 15 trillion VND in post-tax profit. With the second-quarter results, the company has already achieved 51% of its annual profit target.

Hoa Phat is the largest steel producer in Vietnam and Southeast Asia. While operating in logistics, agriculture, and real estate, 90% of the group's revenue still comes from steel.

The company is constructing the 280-hectare Hoa Phat Dung Quat 2 steel complex in Quang Ngai province, with a total investment of 85 trillion VND and a designed capacity of 5.6 million tons of HRC steel per year. Blast furnace number 6, part of the project's second phase, is expected to be completed in September, bringing Hoa Phat's total steel output to 16 million tons annually, including 9 million tons of HRC.

Tran Dinh Long's company has also invested 10 trillion VND in a high-speed rail steel production plant. Construction is expected to begin in mid-August, with the first products expected in early 2027. The project's output is intended for key national projects such as the North-South high-speed railway, the Hai Phong - Hanoi - Lao Cai railway, and urban railways in Hanoi and Ho Chi Minh City.

Trong Hieu