Lotus Group (HSG) Establishes 300 Billion VND Subsidiary in Dinh Vu – Cat Hai Economic Zone

On December 19, 2025, Hoa Sen Group Joint Stock Company (stock code: HSG) announced a resolution to establish Hoa Sen Hai Phong Limited Liability Company (HSHP). HSG will own 100% of HSHP’s chartered capital, amounting to VND 300 billion.

The company’s headquarters will be located at Lot CN21-01, Nam Dinh Vu Tax-Free and Industrial Zone (Zone 1), within the Dinh Vu – Cat Hai Economic Zone, Hai Phong City.

According to the announcement, HSHP’s primary business activities will focus on the production of iron, steel, and pig iron. Additionally, the company has registered a diverse portfolio of operations, including metal manufacturing and processing, logistics, trade, real estate (wholesale of construction materials and real estate trading), land use rights, and chemical industries.

Alongside the establishment decision, Hoa Sen Group appointed key executives to manage the new entity. Mr. Nguyen Ngoc Huy will serve as Chairman and the primary legal representative, also acting as the sole representative of HSG’s capital contribution. Mr. Nguyen Tan Hoa has been appointed as Director and secondary legal representative, while Ms. Nguyen Thi Thanh Tuyen will assume the role of Chief Accountant.

HSHP will operate as an independently audited subsidiary of the parent company.

Previously, Hoa Sen Group also announced a resolution to invest in the establishment of Hoa Sen Home Joint Stock Company. Hoa Sen Home is expected to have a chartered capital of VND 1,000 billion, with HSG holding a 99% stake. The company will be headquartered at 3rd Floor, Commercial Podium – Sarimi Mixed-Use Complex, 72 Nguyen Co Thach Street, An Khanh Ward, Ho Chi Minh City.

Hoa Sen Home’s primary business will be retailing hardware, paint, glass, and other construction materials and equipment. HSG’s Board of Directors appointed Mr. Le Phuoc Vu as the authorized representative for HSG’s capital contributions during the establishment phase and subsequent capital increases.

In Q4 2025 (July 1 – September 30, 2025), Hoa Sen reported an after-tax profit of VND 84.6 billion, a 69% decline compared to Q3 and the lowest quarterly profit in the past year. However, this represents a significant improvement from the VND 186 billion loss recorded in the same period last year.

Q4 net revenue reached VND 8,357 billion, down 17.3% year-over-year and 14.3% from Q3. Despite this, the gross profit margin remained stable at 12.2%, consistent with Q3’s 12.4%.

For the fiscal year ending September 30, 2025, Hoa Sen achieved consolidated net revenue of VND 36,538 billion, a 7% decrease compared to the previous year. However, improved gross profit margins (from 10.9% to 12.4%) and reduced selling expenses resulted in an after-tax profit of VND 731.5 billion, a 42.1% increase year-over-year. This performance exceeded HSG’s profit target by 146%.