## HT1 Faces Financial Challenges with Tax Irregularities and Quarterly Losses
HT1 has encountered financial challenges due to tax irregularities, resulting in a fine of 20% of the unpaid tax amount, totaling nearly VND 412 million. The company was found to have incorrectly declared their tax basis, leading to an underpayment of taxes. In addition, HT1 is required to pay VND 123 million in late payment fees for corporate income tax and over VND 53 million for value-added tax, bringing the total amount of administrative fines and late payment fees to nearly VND 589 million.
The company has also been directed to pay nearly VND 2.1 trillion in unpaid taxes to the state budget, as concluded by the inspection of the Ministry of Finance. This includes over VND 1.5 trillion in corporate income tax and nearly VND 533 billion in value-added tax. HT1 has already paid the additional tax amount into the state budget, as stated in the decision.
HT1’s financial situation has been further strained by recent business losses. The cement company incurred a post-tax loss of over VND 9 billion in the first quarter of 2025. Their profits were eroded by a 5% increase in total expenses, amounting to more than VND 133 billion, with a significant portion attributed to management expenses exceeding VND 70 billion. The company attributed the decrease in profits to the increase in revenue from toll collection for the project to build the road connecting Nguyen Duy Trinh to Phu Huu Industrial Park.
| HT1 incurs post-tax loss of over VND 9 billion in Q1/2025 |
The loss in the first quarter raises concerns about HT1’s ability to achieve its 2025 business plan, which targets a consolidated post-tax profit of VND 184 billion, triple the amount achieved in 2024.
At the 2025 Annual General Meeting of Shareholders held in late April, Mr. Nguyen Quoc Thang, General Director of HT1, stated that despite the loss, the situation had improved significantly compared to the same period last year, which incurred a loss of VND 25 billion. He emphasized the cyclical nature of the business, noting that the results of the first quarter are usually low due to the Tet holiday.
HT1’s cement consumption in the first quarter reached over 19% of the year’s plan, and the second quarter is expected to be a peak season for the cement industry, bringing hopes for strong growth. The company is implementing cost-saving measures and improving operational efficiency, with a profit target of VND 123 billion for the second quarter, which is expected to boost the whole year’s performance.
2025 Annual General Meeting of Shareholders of HT1 was held on April 25 in Ho Chi Minh City
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Mr. Dinh Quang Dung, Chairman of HT1, affirmed that the 2025 plan was carefully constructed based on a thorough review of the company’s actual situation, capabilities, and market assessment. He expressed confidence in the company’s ability to achieve the set goals.
Regarding the impact of the US tax policy, the Chairman stated that although there was no direct impact as HT1 does not export cement to the US, there could be indirect effects. The restrictions on Chinese cement entering the US market might lead to an increase in competition in Southeast Asia, including Vietnam. Additionally, global supply chain disruptions could affect raw material prices.
In this context, the company considers the domestic market as its main focus, relying on stable demand driven by public investment, key infrastructure projects, and social housing promoted by the government.
The company’s assessment of the indirect impact of US tax policies is reflected in the recent performance of HT1’s stock price, which has recovered to pre-tax shock levels. From the beginning of the year to the close of the latest session (June 27), HT1’s market price rose slightly by nearly 3%, with an average liquidity of over 476,000 shares/day.
| HT1 Stock Price Movement since the Beginning of 2025 |
Huy Khai
– 11:30 30/06/2025
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