Dua Fat Group (DFF) reports a record net loss of approximately VND 725 billion, negative equity, and ongoing operating risk

In 2025, Dua Fat Group JSC (DFF) posted a record net loss of about VND 725 billion, extending its loss streak and pushing the company into negative shareholders’ equity. The reviewed consolidated financial statements show the 2025 loss increased 56.7% year-on-year to VND 462.5 billion. Cumulatively, the group’s losses total VND 1,287.1 billion.

Equity erosion and leverage concerns

As losses accumulated, DFF’s equity was fully eroded. Equity moved from a positive VND 237.8 billion at the start of the year to a negative VND 487.1 billion at year-end, indicating limited capacity to absorb shocks.

Liabilities also rose. By 31/12/2025, total liabilities reached VND 3,192.8 billion, up 4.6% from the prior year. The debt-to-assets ratio increased from 0.93x to 1.18x, implying total obligations exceeded asset value. With equity remaining negative, the debt-to-equity ratio was reported as “undefined,” reflecting very high leverage.

Debt structure and rising interest payable

In the debt breakdown, bank borrowings and bonds declined slightly to VND 1,585.6 billion and VND 307.7 billion, respectively. Other payables increased 26.9% to VND 1,299.5 billion. Interest payable rose nearly 46% to VND 626.6 billion, highlighting mounting financial obligations amid weak cash flow.

Qualified audit opinion and cash verification timing

The financial statements were accompanied by a qualified audit opinion from Moore AISC. The auditor cited difficulties verifying cash balances due to the timing of the audit. Although the company conducted cash counting with full documentation as of 31/12/2025, the audit was performed after year-end, during which cash positions fluctuated and could not be fully verified.

Project pause and transferred receivables/debt

Operationally, the Trung Nam Ca Na Port project is paused because the investor, Trung Nam International Port Joint Stock Company, lacks funds to continue construction, delaying payments to Dua Fat. When the investor has sufficient funds, construction and completion of remaining works will resume.

In addition, a supplier of construction materials has not been paid. The outstanding receivable/debt related to this arrangement was transferred to the investor under a triparty debt transfer agreement signed on 15 December 2024, totaling VND 129,934,456,020.

Short-term pressure and bad debts

By 31/12/2025, DFF sent debt confirmations to customers, suppliers, and lenders, but some confirmations were not finalized before the audit. The company attributed this to ongoing project difficulties and the presence of more than VND 700 billion of bad debts. These factors contributed to short-term liabilities exceeding current assets. DFF also trimmed staff to reduce costs.

Market snapshot and major shareholders

On 10/4, DFF’s stock closed at VND 600 per share on trading volume of 678,000 shares. The company’s market capitalization was roughly VND 48 billion.

Major shareholders include Le Duy Hung (about 12.25%), Ho Thi Ly (about 11.88%), Nguyen Canh Trung (about 7.5%), Nguyen Thi Thuy Linh (about 6.4%), and Tran Thi Hong Nhung (about 1.15%).