Hong Phong 1 Energy posts after-tax loss of over VND 180 billion in 2025 after years of profit

Hong Phong 1 Energy Joint Stock Company posted an after-tax loss of 180.7 billion dong in 2025, reversing a profit in the prior year and marking the largest loss since the company began publishing financial statements, according to an announcement from the Hanoi Stock Exchange (HNX).

Profit turnaround and multi-year decline

The company’s 2025 net loss followed a profit of 71.3 billion dong in 2024. The loss also ends a multi-year period of positive earnings. From 2021 to 2024, Hong Phong 1 Energy consistently reported profits, with figures of 120 billion dong in 2021, 148.8 billion dong in 2022, 125 billion dong in 2023, and 71.3 billion dong in 2024.

While profitability remained positive through 2024, the growth momentum weakened before turning into a loss in 2025, indicating unfavorable developments had accumulated earlier.

Equity and retained earnings fall

As of December 31, 2025, Hong Phong 1 Energy’s equity decreased by more than 180 billion dong compared with the beginning of the year, reaching 1,073 billion dong. The decline was mainly driven by a sharp drop in retained earnings to 57.4 billion dong, while owner-contributed capital remained at 950 billion dong.

This suggests the equity reduction largely reflected performance and retained earnings changes from core operations rather than shifts in capital structure.

Leverage pressure increases

Financial leverage also rose. The debt-to-equity ratio increased from 2.83x to 3.2x. Total liabilities were 3,438 billion dong, including bond debt of 2,114 billion dong, while bank borrowings remained low.

Other payables decreased by 110 billion dong from the start of the year, but this was not sufficient to offset the overall pressure from the high debt level.

Bond obligations remain a key funding item

HNX data shows the company currently has one outstanding bond issue, HONGPHONG1_BOND_2019_2, valued at 2,150 billion dong. The bond was issued at the end of 2019 with a 15-year term and an interest rate of 7.5%, making it an important long-term funding source while also contributing to financial obligation pressure amid weaker business results.

Company overview and related projects to monitor

Hong Phong 1 Energy Joint Stock Company was established in 2017 and is a member of Construction & Trading Group, with the parent company holding 96% of charter capital. The legal representative is Bui Van Hieu, who also participates in operating several other energy enterprises in the group’s ecosystem.

The company is the investor of the Hong Phong 1A solar power plant in Binh Thuan, with a capacity of 150 MW and a total investment of 4,198 billion dong. It is described as one of WTO Group’s key energy projects, with energy identified as a main development pillar.

In addition, the ecosystem includes Hong Phong 2 Energy Joint Stock Company, developer of the Hong Phong 1B solar project with a capacity of 100 MW and an investment of 2,832 billion dong. With Hong Phong 1 recording a large loss in 2025, the operating efficiency and cash flow generation ability of related energy projects are key factors to monitor in the near term.