In the fourth quarter of 2022, Hoa Binh Group (HBC) reported a loss of more than 1,200 billion dong, this is the historical loss of this business since going public.
Hoa Binh Construction Group Joint Stock Company (HoSE: HBC) consolidated financial statements for the fourth quarter of 2022 with net revenue of more than 3,200 billion dong, down 16% over the same period last year. COGS increased more than revenue with 3,644 billion dong, so gross profit was negative 426 billion dong, while the same period profit was nearly 266 billion dong.
Financial income was negative more than 112.7 billion dong due to the loss of investment, interest expense more than doubled over the same period to more than 164 billion dong, of which more than 163 billion dong was interest. General and administration expenses increased more than 3 times, reaching nearly VND 500 billion, mainly due to an increase in provision for bad debts to nearly 360 billion.
As a result, in the fourth quarter of 2022, HBC posted a loss of more than 1,200 billion dong, in the same period in 2021, a profit of more than 19 billion dong.
HBC’s financial statements
In the whole year of 2022, HBC’s net revenue reached more than 14,000 billion dong, an increase of more than 20% compared to 2021; profit following tax was negative over 1,140 billion dong, while last year’s profit was nearly 97 billion dong.
As of December 31, 2022, HBC’s total assets reached more than VND 16,900 billion, a slight increase compared to the beginning of the year. Of which, 12,110 billion dong are short-term receivables. The enterprise also raised the provision from 369 billion dong at the end of 2021 to 774 billion dong.
Cash and cash equivalents decreased by 33% to VND 493.5 billion; Held-to-maturity investments fell by more than 34% to VND46.3 billion. Inventories decreased slightly to VND 2,365 billion.
Total liabilities of the company amounted to 14,283 billion dong, up 14% compared to the beginning of the year, of which most of them were short-term debt with 12,735.6 billion dong, short-term debt was more than 5,100 billion dong, up 8.5% , nearly double equity. Long-term debt increased 2.6 times to more than 1,000 billion VND. The equity of this business narrowed significantly, to just over VND 2,600 billion due to a loss in the fourth quarter.
Hoa Binh has just experienced a controversy regarding the “dispute of power” between Mr. Le Viet Hai and Mr. Nguyen Cong Phu regarding the position of Chairman of the Board of Directors.
At the end of January 2023, the Ho Chi Minh City Civil Judgment Execution Department forced HBC to suspend the implementation of Resolutions 50 and 51, two resolutions that led to conflicts related to the company’s top position. Mr. Le Viet Hai continues to hold the position of Chairman of the Board of Directors and legal representative of HBC.
Also related to HBC, the Group recently signed a cooperation agreement with Keystone Company to jointly build and develop projects in the US market. According to the plan, the two sides will jointly build 5 projects that Keystone invests in and develops in California and Oregon; parallel development of construction projects in the US, including residential projects and commercial and industrial construction.
On the market, closing the session on February 10, HBC shares fell 2.59% to 9,010 VND/share.
