Hoa Binh Construction Group Joint Stock Company (HBC) has released its reviewed consolidated financial statements for the first half of 2024, reporting impressive growth.
With a revenue of VND 3,812 billion, the company witnessed an 11% increase compared to the same period last year. Moreover, the company’s profit after tax stood at nearly VND 830 billion, in sharp contrast to the loss of VND 713 billion recorded in the previous year.
HBC’s Board of Directors attributes this success to their continuous operation strategy, which includes debt settlement through additional stock issuance. On June 28, 2024, the company announced the issuance of over 73 million shares to settle debts, resulting in an increase in charter capital of over VND 730 billion.
Looking ahead, HBC plans to expand its market presence both domestically and internationally. In the US, the company has already commenced work on The Grove Apartments project in California in April 2024 and will soon begin construction on two major infrastructure projects in Cambodia.
Additionally, HBC is collaborating with numerous domestic investors on renovation projects for apartment buildings and urban areas across various provinces, including Ho Chi Minh City, Hanoi, Hai Phong, Vinh Phuc, Bac Giang, Quang Nam, Da Nang, Binh Thuan, and Dong Nai.
The company is also focused on recovering receivables, particularly long-standing ones, through efficient measures such as dispute resolution via courts and arbitration. HBC expects that the collection of debts from projects implemented in the next 12 months and previous years will provide significant cash flow for business operations and debt repayment.
“The Board of Directors of HBC also hopes that the government will continue to implement policies to alleviate difficulties in the real estate market. Additionally, we anticipate that the State Bank of Vietnam will soon approve the extension of the application period for the policy on debt rescheduling and debt classification to support businesses facing challenges. The company will promptly reach agreements on restructuring upcoming due debts and securing new loans from credit institutions to meet working capital needs,” HBC stated.
Based on these plans, the Board of Directors is confident that the company will have sufficient working capital for its business operations and will be able to meet its obligations over the next 12 months.
For the full year 2024, HBC targets a total revenue of VND 10,800 billion and a profit after tax of VND 433 billion. With the impressive performance in the first half, the company has already achieved 192% of its annual profit target.
In a related development, the Ho Chi Minh Stock Exchange (HoSE) has decided to mandatorily delist over 347.2 million HBC shares. The shares will be traded for the last time on September 5, after which they will be registered for trading on the UPCoM market.
The delisting is due to HBC’s accumulated losses exceeding its chartered capital, as per the audited financial statements for 2023, which falls under the mandatory delisting criteria stipulated in Decree 155/2020/ND-CP, Article 120, Clause 1, Point 3.
Despite the impending delisting, Mr. Le Viet Hung, brother of HBC’s Chairman, recently reported purchasing 500,000 HBC shares, bringing his total holdings to nearly 1.4 million shares (equivalent to 0.39% ownership).
Currently, HBC shares are trading at VND 5,180 per share.
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