Vinahud Restricted from Trading After Negative Equity in Audited 2025 Financial Statements

Vinahud Investment and Urban Development Joint Stock Company (UPCoM: VHD) has received a notification from the Hanoi Stock Exchange (HNX) about placing its shares under trading restrictions starting from April 9. The measure is due to the company’s negative equity in its audited financial statements for 2025, which meets the criteria for trading restrictions under current regulations. Under the restriction, VHD shares will be tradable only on the weekly Friday session.

Negative equity and three consecutive years of losses

Over the past three years, sustained losses have raised concerns about the company’s going concern. In the 2025 audited financial statements, VHD’s equity fell to -21 billion VND at year-end. The decline is attributed to three consecutive years of losses (2023–2025), including net losses of 164 billion VND in 2023, nearly 156 billion VND in 2024, and about 112 billion VND in 2025.

2025 performance: revenue and profitability weakened

Although losses narrowed in 2025, the audited results indicate ongoing deterioration. Net revenue reached just over 39 billion VND, down about 80% year-on-year, mainly due to a sharp decline in trading revenue. Gross profit was only 3.9 billion VND, down 62%.

Financial income also fell sharply to 22.5 billion VND, an 87% decrease. While financing costs were reduced, remaining expenses continued to weigh on results, leading to a net loss of more than 110 billion VND and a net loss of about 112 billion VND for 2025.

Balance sheet: assets decline; liabilities remain higher than assets

At the end of 2025, total assets were over 3.39 trillion VND, down about 19% compared with the beginning of the year. Cash and cash equivalents were around 6 billion VND. Inventory represented the largest portion of assets, at nearly 1.7 trillion VND, largely tied to unfinished production costs for the Grand Mercure Hoian project, valued at about 1.66 trillion VND.

On the liabilities side, VHD reported total liabilities exceeding 3.4 trillion VND, although this figure was down 16% from the start of the year. Short-term borrowings fell to around 801 billion VND, while long-term borrowings were over 276 billion VND. With accumulated losses exceeding 402 billion VND, negative equity was recorded at about -21.4 billion VND.

Auditor qualification: multiple issues and going concern uncertainty

The audited financial statements also include a qualification opinion from the auditor, citing four issues:

• The reasonableness of a nearly 125 billion VND gain from the disposal of an investment in Me Linh Thinh Vuong in 2024.
• Recoverability of amounts related to business collaborations, and principal and interest on loans totaling up to 583 billion VND, due to insufficient evidence.
• The existence of some customer prepayments in the subsidiary.
• Overdue payables monitored with Amber Asset Management.

The auditing firm also expressed doubt about the company’s ability to continue as a going concern, noting that liquidity could be affected.

Company response

In its response, VinaHUD stated that while liquidity indicators are constrained, the company continues normal operations. The company said it has plans to liquidate long-term financial investments to ensure cash flow for production and business in the near term.

Share price context

In the stock market, VHD shares are trading in a low-price range of around 3,600 VND per share.