Audit does not have enough basis to assess the ability to recover more than 360 billion VND
Van Phat Hung Joint Stock Company (stock code VPH) has just issued a document explaining its business results along with the auditor's opinion except and the content emphasized in the reviewed semi-annual financial statements for 2026.
According to the consolidated financial statements, Van Phat Hung lost after tax more than 21.4 billion VND in the first 6 months of 2026, the loss increased by nearly 12 billion VND compared to a loss of 9.44 billion VND in the same period last year. In the separate financial statements, the enterprise lost after tax 15.82 billion VND, while in the same period it lost nearly 2.3 billion VND.
Van Phat Hung said that in the first 6 months of the year, the real estate market continued to face many difficulties. Key projects are in the stage of completing legal and investment procedures, so the company has not recorded revenue from the handover of new real estate products.
Revenue mainly comes from auxiliary services but is insignificant. Meanwhile, increased cost of goods sold and project allocation costs make gross profit insufficient to cover operating costs.
Financial costs also increased sharply due to pressure from outstanding loans serving project investment activities.
Notably, the auditing unit gave qualified opinions for long-term advances for individuals of more than 60 billion VND, other short-term receivables related to investment cooperation of 130 billion VND and other long-term receivables related to business cooperation of more than 170.92 billion VND.
The total value of the above amounts is about 360.93 billion VND. The Audit said that it has not collected sufficient appropriate evidence to assess the recovery capacity.
Explaining the advance of more than 60 billion VND, Van Phat Hung said that these are advances, directly serving the compensation and site clearance work to implement key projects in Nhon Duc commune. The implementation is carried out through individuals authorized by the company.
Due to the complexity of land compensation and the prolonged time to complete settlement dossiers, at the time of review, the company could not provide complete original dossiers and documents for auditors to compare.
Regarding receivables from investment and business cooperation totaling about 300.93 billion VND, the enterprise said that this is cooperation capital under signed business cooperation contracts.
The capital is used to cooperate in purchasing potential land plots and developing kindergarten projects. By June 30, 2026, the projects receiving cooperation capital are still in the process of completing initial investment legal procedures. The parties are also revaluing assets and completing independent valuation certificates.
Short-term assets are lower than short-term debt
In addition to the qualified opinion, the auditor also noted that on June 30, 2026, Van Phat Hung's short-term assets were lower than short-term payables by 256.85 billion VND in the separate report and 92.41 billion VND in the consolidated report.
According to the consolidated financial statements, at the end of Q2/2026, Van Phat Hung's short-term assets reached 594 billion VND, down 725 billion VND, equivalent to a decrease of nearly 55% compared to the beginning of the year. Short-term debt decreased by 241 billion VND, equivalent to a decrease of 26%, down to 686 billion VND.
According to the audit, this situation shows the existence of a key uncertainty factor, leading to doubts about the enterprise's ability to operate continuously.
Van Phat Hung's Board of Directors affirmed that the semi-annual financial statements for 2026 are still prepared based on the assumption of continuous operations. The Chairman of the Board of Directors of the company has sent a letter of commitment to provide financial support, ready to use personal assets to ensure financial obligations and maintain operating cash flow.
The Board of General Directors also developed a business plan and cash flow plan for the following quarters, focusing on debt recovery, streamlining the apparatus and optimizing operating costs.
Regarding the advance payment for site clearance compensation of 60 billion VND, the enterprise is expected to complete the collection of dossiers, documents and balance confirmation in the period from Q4/2026 to Q1/2027.
With receivables from investment and business cooperation of about VND 300.93 billion, Van Phat Hung will work with partners to supplement collateral and independent valuation certificates. The company also develops a plan to recover the original capital or convert receivables into commercial real estate products when the project meets the conditions for opening for sale. The expected implementation time is from Q4/2026 to Q2/2027.
To handle the situation of working capital deficit, the enterprise said it will disburse credit limits according to bank commitments and use personal financial support from the Chairman of the Board of Directors.
Van Phat Hung also aims to accelerate legal procedures to commercialize existing projects, cut management costs and temporarily suspend non-essential investment items in the 2026-2027 period.
