The Green Energy Conundrum: Vinh Son – Song Hinh Hydro Power’s Tax Troubles

Vinh Son – Song Hinh Hydropower Joint Stock Company (VSH on the HoSE stock exchange) has recently disclosed information regarding Administrative Decision No. 2627/QD-XPVPHC from the 13th Regional Tax Office, pertaining to tax and invoice-related administrative violations.

The company has been found guilty of misdeclaration, resulting in an underpayment of value-added tax, corporate income tax, and personal income tax, as well as an overclaim of refundable value-added tax. Additionally, they failed to issue invoices for goods and services provided as gifts and illegally used invoices for tax declaration purposes.

As a consequence, Vinh Son – Song Hinh Hydropower Joint Stock Company has been fined over VND 406.1 million. They are also required to rectify the situation by paying the underpaid value-added tax, corporate income tax, and personal income tax, totaling more than VND 1.4 billion. Furthermore, they must pay late payment fees of nearly VND 356.8 million for the period up to June 30, 2025, with additional fees to be calculated from that date until the actual payment of the overdue taxes, recoveries, and penalties.

As of March 31, 2025, the company’s chartered capital stood at over VND 2,362.4 billion. The major shareholders include REE Energy Joint Stock Company, a subsidiary of Refrigeration Electrical Engineering Corporation (REE on the HoSE stock exchange), holding a 52.58% stake, equivalent to over VND 1,242.1 billion. The remaining stakes are held by Power Generation Corporation 3 – JSC (30.55%), Samarang Ucits – Samarang Asian Prosperity (9.88%), and other shareholders (6.99%).

In the first quarter of 2025, the company reported impressive financial results with a 78.7% surge in revenue compared to the previous year, amounting to over VND 624.6 billion. After deducting various expenses, the company’s net profit reached nearly VND 268.7 billion, a remarkable 151.8 times increase compared to the same period last year.

As of the end of the first quarter of 2025, the company’s total assets had slightly increased by VND 32.4 billion from the beginning of the year, reaching nearly VND 8,640.3 billion. Fixed assets accounted for 84.7% of the total, amounting to over VND 7,317.8 billion, while short-term receivables contributed 9.3% with nearly VND 800.5 billion.

On the liabilities side, the company’s total liabilities decreased by 2.9% from the beginning of the year to nearly VND 3,812 billion. Borrowings and finance lease obligations accounted for the majority of the liabilities, standing at nearly VND 3,220.4 billion, or 84.5% of the total.