TNH Joint Stock Group Hospital Corporation (TNH: MCK) recently announced the minutes of its upcoming 2025 Annual General Meeting of Shareholders, scheduled to be held on June 16 in Bac Giang.
According to the disclosed documents, TNH Hospital aims to present its 2025 business plan to shareholders, targeting a 40% increase in revenue to 620 billion VND compared to the previous year. However, the projected after-tax profit is 31.3 billion VND, a 30% decrease.
For 2025, TNH sets ambitious revenue growth goals, attributed to the contribution of stable and newly operational hospitals. Nevertheless, the projected after-tax profit is expected to decline primarily due to the new hospitals still in their pre-profit phase.
Specifically, this year, TNH Viet Yen Hospital is anticipated to incur a loss of 53.9 billion VND, while the hospital under construction is estimated to lose 9.3 billion VND. Additionally, management expenses at the group level are projected to be 35.4 billion VND.
Source: TNH
Moving forward in 2025, the company will continue to invest in machinery and equipment and introduce new technical services across all three operational bases. These initiatives aim to meet the needs of residents in Thai Nguyen, Bac Giang, and neighboring provinces. TNH will also focus on effective revenue and expense management to ensure stable and growing profits from business operations, especially after the commencement of TNH Viet Yen Hospital.
Concurrently, TNH remains committed to investing in multiple projects, including the TNH Lang Son Hospital, the International Thai Nguyen Hospital Phase 3, the TNH Pho Yen Hospital Phase 2, and a hospital in Da Nang, among others.
Previously, TNH Hospital fell short of its 2024 business plan. Specifically, TNH’s net revenue reached over 440 billion VND, achieving only 81.5% of the set plan, while the after-tax profit for 2024 stood at merely 29.1% of the target.
Last year, the company dedicated its resources to the launch of the TNH Viet Yen Hospital project, which commenced operations on November 1, 2024. Additionally, the International Thai Nguyen Hospital and the TNH Pho Yen Hospital were impacted by the prolonged Typhoon Yagi (the third typhoon of 2024) during the third quarter, resulting in a decrease in the number of patients seeking treatment and affecting the year’s revenue.
TNH Hospital faced challenges in the first quarter of 2025 as well. According to the consolidated financial statements for the first quarter of 2025, TNH’s revenue slightly increased to 93 billion VND compared to the same period last year.
However, the cost of goods sold surged by 54% to 100.9 billion VND, resulting in a gross loss of 7.5 billion VND, compared to a gross profit of over 27 billion VND in the previous year.
Moreover, financial expenses for the period amounted to 10.8 billion VND, triple that of the previous year, mainly due to interest expenses. Selling expenses reached 1.1 billion VND, and management expenses totaled 15 billion VND, increasing by 82% and 2.5 times, respectively, compared to the same period in 2024.
Consequently, TNH Hospital incurred an after-tax loss of 34.8 billion VND in the first quarter of 2025, compared to an after-tax profit of 15 billion VND in the same period last year.
