Hung Thinh Land reduced bond debt by 45% but still delayed payments, losing more than 94 billion VND in the first half of the year

By the end of June, Hung Thinh Land still owed nearly VND 8,563 billion in bonds, down about 45% over the same period, but there were still many late payments.

According to a recent report sent to the Hanoi Stock Exchange (HNX), Hung Thinh Land Joint Stock Company had bond debt of nearly VND 8,563 billion as of the end of June. This level decreased by about 45% compared to the same period last year.

In the first half of the year, Hung Thinh Land paid about VND 372.4 billion of bond principal, but most of it was overdue. In particular, the company has completed the payment of all principal debt and corresponding interest of one lot.

However, this enterprise is still late in making payments for some bond lots, due to not being able to arrange capital in time. To handle this, the company said it is negotiating with bondholders to adjust the payment plan to suit the actual situation. Hung Thinh Land also applies a partial payment plan, including cases where it is proposed to pay with assets.

The company representative said that it has actively reduced outstanding bond debt from the beginning of 2026 until now. The company continued to settle a number of lots and by mid-August, the outstanding bond balance was nearly VND 3,900 billion.

Not only bonds, the company also reduced bank loans by about 9% to more than 2,400 billion VND.

Regarding the business situation, Hung Thinh Land recorded a loss of more than 94 billion VND in the first half of this year. Meanwhile, in the same period, the company still had a profit of nearly 15 billion VND. This caused the accumulated loss as of the end of June to record nearly 170 billion VND.

Based on business results and financial data, the audit unit believes that there are factors leading to doubts about the company's ability to continue operating. This depends on the capacity to arrange capital sources.

Hung Thinh Land is a core member of Hung Thinh Group led by Mr. Nguyen Dinh Trung. This business is the developer of many outstanding real estate projects such as Lavita Charm, Q7 Saigon Riverside, Saigon Mia, Moonlight Residences... They have been profitable for the next four years, peaking in 2021 at approximately VND 1,700 billion. Gross profit margin at times reached more than 50%, among the top group in the real estate industry.

However, business activities gradually declined when the real estate market encountered difficulties due to the epidemic, legal congestion, decreased liquidity and heavy debt pressure. This business submitted an IPO application to the Ho Chi Minh City Stock Exchange (HoSE) in July 2022 with the goal of going public a year later. However, the above plan is still unfinished.