HBC Reports Additional 100 Billion Profit After Audit, Faces Doubts About Going Concern with Nearly 3,800 Employee Reductions in 2 Years

Hòa Bình Construction Group (HBC) has just announced its 2024 audited financial report showing a net revenue of 6.421 trillion VND, down 15% year-on-year, but a net profit of 963 billion VND, an increase of 111 billion VND compared to the unaudited report. However, auditors expressed concerns about the company’s ability to continue operations due to accumulated losses of 2.299 trillion VND and overdue debts. HBC’s staff has dropped from 4,091 to 1,330 over the past two years.
The profit increase was mainly attributed to the recovery of doubtful receivables worth 540 billion VND and income from asset liquidation of nearly 591 billion VND. Auditors also faced challenges in verifying debts and revenues, and had not assessed the impact of these issues on the financial statement. Despite these issues, the Executive Board based the report on the assumption of going concern, facilitated by a debt swap share issuance.
HBC plans to intensify market expansion, continue to exploit projects both domestically and internationally, and enhance debt recovery efforts.