On April 9, 2025, VNE stock hit a historic low of VND 2,360 per share after a steep decline since November 2023. However, just 47 days later, it tripled to over VND 6,800 per share. Trading volume also surged, averaging 575,000 shares per session, triple the previous year’s average.
The stock rose despite a lack of positive news from the company, especially as the stock was placed under control and warning from April 14, 2025, due to consecutive net losses in 2023 and 2024. The consolidated financial statements for these two years received a qualified opinion from the auditor, and the retained earnings after tax on the 2024 consolidated financial statements were negative.
VNECO, formerly known as Construction Electricity 3 Joint Stock Company, has postponed its annual general meeting of shareholders for the second consecutive time and plans to hold it in September 2025 due to unresolved issues at the Thuan Nhien Phong wind power plant in the former Binh Thuan province and the 220kV power line project connecting the Ca Mau 1 wind power cluster.
According to VNECO, the postponement aims to “perfect the dossiers, documents, and data presented to shareholders to avoid losses.” The projects, which were constructed from 2021 to 2023, have not been accepted by the investor, preventing the company from recognizing revenue.
| VNE stock unexpectedly hit the ceiling in many sessions in April 2025 |
From the “king of electrical construction” to the brink of delisting
VNECO, established in 1988 and equitized in 2005, was listed on HOSE in 2007. The company was once the “king of electrical construction,” with a strong track record of constructing thousands of kilometers of high-voltage power lines across the country. It served as the parent company of multiple subsidiaries, including VNECO 3, VNECO 4, VNECO 8, and VNECO 12.
Nearly two decades after equitization, 2024 marked a turning point for VNECO as it sank into a record loss of VND 255 billion, fourteen times higher than the VND 18 billion loss in 2023. Revenue shrunk to VND 700 billion, a significant drop from the peak of over VND 2,100 billion in 2022.
In the first two quarters of 2025, VNECO continued to incur a net loss of VND 88 billion as revenue from construction contracts decreased by 60% compared to the same period last year, bringing the total accumulated loss to VND 217 billion. The company expects an additional loss of VND 68 billion in 2025, putting the stock at risk of mandatory delisting.
| VNECO is likely to face a third consecutive year of losses |
Rapid growth leads to a surge in debt
During the period of 2018-2022, VNECO experienced impressive growth thanks to the wave of solar energy development benefiting from the Feed-in Tariff (FIT) program. The company’s revenue tripled from VND 742 billion to VND 2,130 billion. However, this rapid growth corresponded with a significant increase in accounts receivable from customers.
Short-term accounts receivable stood at approximately VND 196 billion at the end of 2018 but quickly ballooned to VND 913 billion by the end of 2022. The prolonged capital stagnation, coupled with VNECO pledging almost all of its fixed assets to secure loans totaling over VND 1,520 billion from banks (VND 1,000 billion short-term and VND 520 billion long-term), put a strain on the company’s finances.
Short-term bank loans increased dramatically from VND 120 billion in 2019 to nearly VND 1,100 billion at the end of 2022. Consequently, interest expenses soared, rising from VND 14 billion in 2020 to VND 160 billion in 2024. The 2024 cash flow statement reveals that VNECO only repaid VND 44 billion in interest, while the outstanding interest payable stood at VND 139 billion, seven times higher than at the beginning of the year.
| Accounts receivable from customers increased significantly compared to 2018 |
| Especially the loans and the corresponding interest expenses |
The Thuan Nhien Phong wind power plant in the former Binh Thuan province is perhaps VNECO’s only pride at the moment – Photo: VNECO
|
|
In an explanatory document dated April 19, VNECO stated that it is implementing various measures to address the issues related to the controlled and warned stock status. These measures include verifying accounts receivable through letters, emails, and phone calls; coordinating with relevant parties to complete project documentation to facilitate acceptance and revenue recognition, and reduce work-in-progress costs. The company’s management is also working to commission the remaining three turbines at the Thuan Nhien Phong wind power plant, evaluating investment efficiency to divest from underperforming projects, negotiating with credit institutions to ensure working capital, recover accounts receivable, and reduce operating expenses. Additionally, VNECO is seeking high-profit margin projects to offset accumulated losses. Regarding the delay in organizing the 2024 and 2025 annual general meetings, the Board of Directors is focusing on resolving bottlenecks in significant projects such as the Ca Mau 1 wind power cluster and Thuan Nhien Phong. VNECO pledges to hold the meetings once the fundamental issues are addressed and the necessary documents are prepared for shareholder review. |
Tu Kinh
– 11:44 19/08/2025
