Hoa Sen Group reports highest profit in 3 years - Photo: HSG
Hoa Sen Group Joint Stock Company (HSG) has just announced its fourth quarter report for the 2024 - 2025 financial year (from July 1 to September 30, 2025).
Accordingly, under the leadership of Mr. Le Phuoc Vu - Chairman of the Board of Directors of Hoa Sen Group - the company reported a net profit of VND 85 billion in the context of difficulties in exporting galvanized steel.
Although quarterly revenue decreased by 17% to VND8,356 billion, thanks to gross profit margin improving to 12.2%, Hoa Sen still recorded gross profit of VND1,021 billion, up 20% over the same period.
Financial revenue in the fourth quarter decreased by nearly 60% to VND56 billion. In contrast, financial expenses decreased by 30% to VND69 billion, but management expenses increased by 23% to VND183 billion. After deducting all expenses, Mr. Le Phuoc Vu's company reported a net profit of VND85 billion, while in the same period last year it lost VND186 billion.
For the entire 2024-2025 fiscal year (from October 1, 2024 to September 30, 2025), Hoa Sen recorded revenue of more than VND 36,500 billion, down 7% over the same period. However, after-tax profit increased by 42%, reaching more than VND 730 billion, the highest level in the past three years.
This result exceeded 46% of the profit plan set in the high scenario (VND 500 billion) and exceeded 83% compared to the conservative plan of VND 400 billion.
Hoa Sen’s Board of Directors believes that the steel market has faced many challenges recently. Globally, the globalization process has been reversed, global economic growth has slowed down, and geopolitical conflicts in many regions continue, causing the global supply chain to stagnate.
In addition, raw material prices fluctuate abnormally and irregularly. Export activities are under pressure due to trade protectionism and tariff barriers from major markets, especially the US.
Domestically, steel consumption has shown positive signs of recovery thanks to policies promoting public investment, infrastructure construction and the recovery of the real estate market. However, the steel industry still faces fierce competitive pressure due to excess domestic production capacity.
At the annual shareholders' meeting in mid-March, Mr. Le Phuoc Vu frankly acknowledged that the steel industry is in a very difficult period.
"The steel industry is currently at best flat, the general trend is downward," he said. According to him, the total capacity of domestic factories is currently about three times the domestic demand, while exports are increasingly difficult, limiting the industry's growth prospects.
As of September 30, Hoa Sen Group's total assets reached VND18,949 billion, down slightly by 3% compared to the beginning of the year. Of which, cash and cash equivalents reached VND508 billion; short-term receivables decreased by 27% to VND2,189 billion; inventories also narrowed to nearly VND8,200 billion.
Construction costs in progress increased by 15% to VND764 billion, mainly from the Hoa Sen Yen Bai (VND430 billion), Hoa Sen Binh Dinh (VND79 billion) and Hoa Sen Ha Nam (VND40 billion) hotel projects.
Regarding capital sources, total liabilities decreased by 12% to VND7,614 billion. Of which, short-term loans and financial leasing debts were at VND4,403 billion, mostly bank debts.
Recently, Hoa Sen Group was administratively fined more than 1.5 billion VND by the Ho Chi Minh City Tax Department for violating tax declaration in the period 2021 - 2022. The enterprise was charged more than 1 billion VND in corporate income tax, fined nearly 201 million VND and late payment of about 307 million VND.
The tax authority said Hoa Sen declared expenses not serving production and business and paid overtime wages exceeding regulations, and had to reduce losses of more than VND2.1 billion in 2022.
Nhat Quang
Source: https://tuoitre.vn/nganh-thep-lao-dao-cong-ty-cua-ong-le-phuoc-vu-van-lai-cao-nhat-3-nam-20251030194114642.htm
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