“Kien Hung Discontinues Merger Following Surimi Subsidiary’s Bankruptcy”

In a move to address losses, Kien Hung utilized its entire long-term financial provision of over VND 48.6 billion to offset its investment in Thuy San Aoki. Starting Q3 2025, the company will discontinue the preparation and publication of consolidated financial statements.

Kien Hung sets up provisions for its investment in Thuy San Aoki since the end of 2023. Source: Audited 2023 Financial Statements of Kien Hung

Thuy San Aoki, a joint venture between Kien Hung (51%) and Neptune S.A.S (France), was established in 2012 with the goal of manufacturing surimi for export to Europe. The factory commenced operations in 2014 but faced continuous challenges. Its highest revenue was recorded in 2020, at VND 377 billion, however, high raw material and operational costs led to losses.

During the period of 2017-2024, the subsidiary only turned a profit in 2019, with a mere VND 3.1 billion. In 2024, revenue dwindled to just VND 116 million, while interest expenses and depreciation continued to incur losses of over VND 17 billion. This was also the year the court initiated bankruptcy proceedings for Thuy San Aoki. In Q2 2025, this subsidiary incurred a loss of VND 4.4 billion.

Regarding Kien Hung’s business performance, in Q2 2025, the company achieved a revenue of VND 185 billion, a 4.4% increase year-on-year; net profit doubled to VND 13.4 billion. The improved gross profit margin, from 12.2% to 15.3%, contributed to these positive results.

For the first six months of the year, revenue stood at VND 370 billion, and net profit reached VND 36 billion, the highest in almost a decade and exceeding the 2025 profit plan by 58%, despite the losses incurred by its subsidiary. The exclusion of Thuy San Aoki’s performance is expected to brighten Kien Hung’s financial reports from Q3 onwards.

Aside from surimi, Kien Hung’s shrimp farming business has also been ineffective. The 2025 Annual General Meeting approved the decision to cease operations at the aquatic farms due to difficult sales and low prices. The Board of Directors has been authorized to choose the timing of the cessation to restructure the investment portfolio.

Vietnamese surimi exports are booming

While Kien Hung struggles with its surimi business, the industry in Vietnam is thriving. According to the Vietnam Association of Seafood Exporters and Producers (VASEP), in the first half of 2025, surimi and fish cake exports reached nearly $165 million, a 29% increase compared to the same period last year.

Asian markets continue to play a dominant role. South Korea imported $42 million worth of surimi, a 26% increase, while Thailand’s imports totaled $39 million, a 28% jump. Notably, China and Hong Kong saw a remarkable 49% surge to $22 million, driven by rising domestic demand for processed raw materials.

The CPTPP bloc also witnessed a recovery, with orders from Japan, Malaysia, and Canada increasing simultaneously. The EU market reached $13 million, thanks to strong performances from Lithuania and Spain. In contrast, the US market slowed down, with a 35% decline in June compared to the previous month.

VASEP suggests that despite the significant growth potential, the Vietnamese surimi industry will face challenges from price competition, logistics costs, and shifting consumer preferences in the US and Europe.

Vietnamese surimi industry experiences robust growth in the first half of 2025

Tu Kinh

– 4:18 PM, August 19, 2025