Hoa Binh Construction sells high-tech park project as half-year profit reaches VND50 billion

Hoa Binh Construction reported VND50 billion in after-tax profit in the first half, while nearly half of its gross profit came from transferring a single project at Ho Chi Minh City’s high-tech park.

The company’s semiannual financial report recorded net revenue of VND3.26 trillion and gross profit of VND336 billion, three times the figure from the same period last year. After-tax profit fell slightly from the first half of 2025.

Construction contracts remained the company’s largest source of revenue. Construction revenue rose nearly 86% to VND2.305 trillion, with a gross margin of 7.2%. Hoa Binh also generated VND526 billion from project and real estate transfers, two activities that produced no revenue in the same period last year.

Most of that new income came from the Hoa Binh Innovation Center at the Ho Chi Minh City High-Tech Park. Hoa Binh signed an agreement in September 2025 to transfer the project to Hoa Binh Innovation Co., Ltd. for VND246.5 billion. By the end of June, it had collected VND145 billion. The transaction generated nearly VND160 billion in gross profit, almost half of the group’s total gross profit for the first six months.

Financial pressure remained significant. Interest expenses reached VND187 billion, exceeding the gross profit generated by the entire construction segment. The company also spent more than VND100 billion on management staff, although total costs fell sharply after it reversed VND104 billion in provisions for doubtful receivables.

Pre-tax profit rose 28% year on year, but after-tax profit remained almost unchanged. Hoa Binh said the previous year’s results benefited from tax deductions related to carried-forward losses, which had largely been used by the current reporting period.

The group still carried accumulated losses of VND2.022 trillion, roughly equal to its owners’ equity. It also reported VND159 billion in overdue obligations at the end of June, including VND94 billion in homebuyers’ deposits and VND57 billion in social insurance payments. Hoa Binh said weakening liquidity among real estate developers was affecting cash flow for debt repayments and creating significant uncertainty about its ability to continue operating.