Hoa Binh Construction Group 'revives', reports profit of nearly 1,000 billion VND

The 2024 audit report shows that the financial situation of Hoa Binh Construction Group has improved compared to the previous year with net profit of VND 963 billion, total assets increased to VND 15,411 billion and liabilities to VND 13,664 billion.

After a period of struggle, Hoa Binh Construction Group has made a "comeback" when it announced that its after-tax profit in 2024 will reach 963 billion VND - Photo: HBC

According to the recently released audited consolidated financial report for 2024, Hoa Binh Construction Group (HBC) achieved a profit after tax of VND963 billion, while last year it lost more than VND1,000 billion.

Notably, this figure is also VND 100 billion higher than the figure in the contractor's 2024 self-prepared financial report.

Although net revenue in 2024 recorded more than VND 6,420 billion, down 14.8% compared to 2023 (VND 7,537 billion), gross profit increased sharply by 46.8%, reaching VND 357.5 billion. According to Hoa Binh, this clearly reflects the group's increasingly better operating efficiency and cost control ability.

Hoa Binh's total assets as of December 31, 2024 reached VND 15,411 billion, a slight increase of 1.1% compared to 2023. In particular, liabilities have decreased significantly by 9.8% to VND 13,663.8 billion, 8 times higher than equity.

Meanwhile, interest expenses decreased sharply by 29.9%, from VND557 billion in 2023 to VND404.1 billion, helping to reduce financial pressure and improve profit margins. In addition, equity increased sharply from VND93 billion to VND1,748 billion.

Hoa Binh Group's leaders said the strong growth in equity largely came from the profits achieved in 2024 and the successful issuance of shares to convert debt, helping to significantly improve the group's financial structure.

According to this person, the positive results from the 2024 financial year show that Hoa Binh Construction has overcome the difficult period and is on the way to a strong recovery. “With many positive signals from the domestic and foreign construction market, along with a healthier financial foundation, Hoa Binh is gradually restoring its leading position in the construction industry,” he said.

Recently, the group announced its 2025 business plan, including revenue of VND9,000 billion and after-tax profit of VND360 billion, up 41% and down 63%, respectively, compared to 2024.

Despite achieving positive results in business results, the auditor also gave an exception opinion on Hoa Binh's receivables and payables.

Specifically, AFC Vietnam Auditing Company Limited determined that it could not collect all the necessary information to assess the existence and completeness of VND 2,251 billion in short-term receivables from customers, VND 814 billion in short-term prepayments to sellers, VND 882 billion in other receivables, VND 2,327 billion in short-term payables to sellers, VND 863 billion in prepayments from buyers and VND 82 billion in other short-term payables.

According to the auditor, as of the time of issuing the audit report, AFC Vietnam did not have enough necessary information to determine the impact of this issue on the related items in the report.

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Source: https://tuoitre.vn/tap-doan-xay-dung-hoa-binh-hoi-sinh-bao-lai-gan-1-000-ti-dong-20250401174635044.htm