Hoang Quan Real Estate (HQC) achieved its highest profit in nine years in 2025, reaching 73 billion dong. This significant gain, however, stemmed primarily from financial income and debt recovery, rather than its core real estate operations, which experienced substantial declines.

The company's Q4/2025 financial report indicated that sales revenue from goods and services reached nearly 29 billion dong, a 79% decrease compared to the same period in 2024. Revenue from real estate sales alone plummeted by 93.5% to just under 9 billion dong. The majority of the quarter's revenue was generated from steel sales, a new income stream for the company. After accounting for returned goods, HQC's net revenue stood at over 18 billion dong, only one-third of the previous year's figure. High costs of goods sold further compressed the gross profit to just over 2.5 billion dong, a reduction of more than 92%.

Despite the downturn in its core business, Hoang Quan recorded a surge in financial income, totaling over 56 billion dong, nearly five times higher than the same period last year. Approximately 83% of this income was derived from business cooperation interest. Additionally, HQC reported nearly 27 billion dong in other income, a 5.5-fold increase, although specific details were not provided.

A social housing project by Hoang Quan in Binh Chanh, Ho Chi Minh City. *Photo: HQC*

Regarding recurring expenses, financial costs increased by 66% to over 32 billion dong, with the majority attributed to interest payments. Sales expenses also saw a slight increase. Conversely, the company recorded a negative 19 billion dong in enterprise management costs due to a reversal of provisions.

Overall, HQC's after-tax profit for Q4/2025 exceeded 55 billion dong, an 11-fold increase compared to Q4/2024. The company's management stated that this profit growth was driven by financial income, the recovery of bad debts, and the reversal of provisions from recovered debts, which helped reduce expenses during the period.

The strong performance in Q4/2025 propelled the full-year after-tax profit to over 73 billion dong, double the 2024 figure. This marks the highest profit recorded by Hoang Quan since 2016.

By the end of 2025, HQC's total assets were approximately 8,975 billion dong, an 11% decrease from the beginning of the year. Inventory accounted for over 1,472 billion dong, primarily representing costs for ongoing projects such as Golden City, Hoang Quan Plaza, HQC Tan Huong, and Tra Vinh social housing. Liabilities decreased by approximately 1,200 billion dong to over 3,500 billion dong, with loans and financial leases reduced by over 500 billion dong, mainly in long-term obligations.

Hoang Quan Real Estate's primary business is real estate, and it was once considered a leading developer of social housing. However, its business operations have declined since the pandemic. For 2025, the company had set a revenue target of 1,000 billion dong and an after-tax profit expectation of 70 billion dong. While it significantly missed its revenue goal, Hoang Quan surpassed its profit target.

Looking ahead, the company aims to develop 50,000 social housing units by 2030. However, at a social housing seminar in mid-January, Truong Anh Tuan, Chairman of Hoang Quan Real Estate, highlighted significant challenges in this sector. These include low profit margins, complex procedures for land use conversion, and difficulties in obtaining investment licenses. Tuan emphasized the need for appropriate policy tools to enable the conversion of privately owned land for social housing development, rather than solely relying on public land.

Tat Dat