Hung Thinh Land Joint Stock Company's leadership reported to the Hanoi Stock Exchange earlier this month that its after-tax loss last year reached 834 billion VND. This figure, though substantial, represents a significant decrease from the nearly 1,140 billion VND loss recorded in 2024, continuing a streak of losses that began in 2023.

Despite the reduced loss, the auditing firm, based on last year's business results and financial data, expressed doubts about the company's ability to continue as a going concern. Its ongoing operations are contingent on its capacity to arrange funding.

While the company has not yet returned to profitability, its financial situation shows several positive signs. Equity increased by approximately 2,000 billion VND compared to the beginning of the year, reaching nearly 18,500 billion VND.

Liabilities decreased by more than 12,500 billion VND, settling at approximately 56,660 billion VND. This reduction improved the debt-to-equity ratio, adjusting it from four times to three times. Currently, Hung Thinh Land owes banks over 2,500 billion VND and has 10,000 billion VND in domestically issued bonds.

Hung Thinh Land serves as a core unit within the Hung Thinh Group ecosystem, overseen by Nguyen Dinh Trung, Chairman of the Board of Directors. Its origins trace back to Dong Tien Investment Consulting Trading Services Company Limited, established in 2002, primarily focusing on real estate brokerage and distribution.

Following several restructurings, in 2019, Hung Thinh Land assumed responsibility for all real estate investment, business, and development activities from Hung Thinh Group. The company subsequently reported profits for four consecutive years, peaking at approximately 1,700 billion VND in 2021. At one point, its gross profit margin exceeded 50%, positioning it among the top performers in the real estate sector.

However, business operations have gradually declined as the real estate market faced significant challenges. These included the impact of Covid-19, legal bottlenecks, decreased liquidity, and mounting debt pressure. Hung Thinh Land had filed for an initial public offering (IPO) in mid-2022, with plans to list on the Ho Chi Minh City Stock Exchange a year later. This ambitious plan, however, remains unfinished.

Phuong Dong