HBC AGM: Expecting $72 Million in Overseas Revenue, Return to HOSE in 2028

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(Vietstock) Hoa Binh Construction Group (UPCoM: HBC) expects overseas cash flow to reach $72 million in 2026, accelerating debt recovery and financial restructuring to gradually eliminate accumulated losses, with the goal of relisting on the Ho Chi Minh City Stock Exchange (HOSE) by 2028.

Hoa Binh Construction Group (UPCoM: HBC) held its 2026 Annual General Meeting of Shareholders on the afternoon of June 26. Photo: Screenshot

The HBC shareholders' meeting approved a consolidated total revenue target of 10,000 billion VND, a 93% increase compared to the previous year, while net profit is maintained at 250 billion VND.

According to Vice Chairman and Deputy CEO Le Viet Hieu, the current backlog value reaches over 15,000 billion VND, of which 8,600 billion VND in revenue is projected to be recognized in 2026.

Alongside the civil construction segment, HBC is expanding into urban infrastructure, industrial zones, and expressways through 479 Hoa Binh Joint Stock Company (in which HBC holds over 35% of capital) alongside foreign partners, targeting a minimum of 1,000 billion VND in winning bids for the infrastructure and industrial sectors this year. The company does not yet have expansion plans for the airport sector.

Regarding outstanding debts, HBC's leadership stated that the total value of overdue receivables from major developers remains at 2,300 billion VND, a decrease of 1,200 billion VND compared to 2022. The enterprise aims to recover at least an additional 1,200 billion VND this year.

Concerning credit, HBC continues to meet the demand for bid bonds and advance payment guarantees while further reducing bank debt balances.

Holding Model Does Not Erase Accumulated Losses

Addressing the plan to establish Hoa Binh Invest Holdings, Board Member and Deputy CEO of Investment and International Market Development, Mr. Nguyen Kinh Luan, affirmed that this model aims to expand access to capital sources and strategic partners but does not increase equity or resolve HBC's accumulated losses.

HBC will focus on generating profits from core construction activities, recovering debts, restructuring borrowing debts, and mobilizing capital using convertible instruments.

For the public investment sector, HBC is improving its financial indicators to qualify for independent bidding, cooperating with domestic and foreign partners to participate in infrastructure and expressway projects.

Expecting $72 Million from Overseas Markets

According to Mr. Luan, in 2025, HBC focused on building foundations in Cambodia, the United States, Australia, Laos, and Israel, with the company establishing legal entities and joint ventures in these markets.

In 2026, overseas cash flow is expected to reach $72 million, comprising $63 million from the project in Cambodia and $9 million from the joint venture in the United States.

The project in Cambodia has a total value of $190 million, with design expected to begin in July. Mr. Luan noted that the main challenges are geopolitical risks, legal differences, bank guarantee requirements, and labor costs.

Return to HOSE Likely by 2028

Regarding the roadmap to return to HOSE, Mr. Le Viet Hieu stated that HBC has met the conditions regarding profit and equity; however, it still needs to process an accumulated loss of over 2,000 billion VND.

The enterprise aims to recover 1,200 billion VND in debts and deploy key projects in the upcoming period to wipe out the accumulated losses. It is expected to return to HOSE by 2028.

Adding to this, Chairman of the Board of Directors Le Viet Hải shared that HBC is applying multiple debt-recovery solutions, including receiving assets to offset obligations. A typical example is the Saigon Silicon project, which helps the company recover 265 billion VND in both principal and interest, or receiving the transfer of a hotel project in Quy Nhon when the developer lost financial capacity.

Regarding the share price, Hoa Binh's leadership believes that the 2025 profit results do not fully reflect the true value; however, with efforts in management and strategic deployment, especially international market development, Hoa Binh is gradually returning to its proper position, bringing the share price back to its true value.

HBC Chairman Le Viet Hai at the meeting

Issuing Over 51.4 Million Shares for Debt Swapping

One of the notable contents approved by shareholders is that Hoa Binh will halt the private placement of shares to increase charter capital in 2025, due to unfavorable market conditions and changes in the company's capital needs.

Instead, HBC is replacing it with a plan to issue over 51.4 million shares to swap for debt, at a price of 10,000 VND/share, double the market price of the June 26 session. The swap ratio is 1:10,000, meaning 1 newly issued share will swap for 10,000 VND of debt value.

The value of the debt converted into shares is over 514 billion VND. These shares will have transfer restrictions for 1 year from the completion date of the issuance. The deployment period is from Q2/2026 after receiving approval from regulatory authorities.

The list of creditors participating in the swap consists of 99 enterprises, with a payable debt value of nearly 748 billion VND. HBC stated that these are the company's suppliers, subcontractors, and manufacturers.

According to Chairman Le Viet Hai, Hoa Binh wishes to swap the entire nearly 750 billion VND for creditors, but each partner has different financial needs, accepting the conversion of 30%, 50%, or 70% of the debt. The remaining debts will be paid in cash according to a roadmap from 3 months to 1 year, depending on the agreement with each partner. The company does not currently have plans to issue additional shares beyond the plan presented to the meeting.

Mr. Hai also stated that HBC will focus on ensuring cash flow through debt recovery and controlling cash flow for each project; prioritizing projects with financially capable developers; gradually shifting to a contractor selection model based on direct contracting (designation) rather than low-price competition; and expanding into infrastructure, industrial sectors, and overseas markets.

Regarding personnel, the meeting approved the relief of Mr. Le Van Nam from his position as a Board of Directors member for the 2025-2029 term, following the receipt of his resignation letter effective October 31, 2025. At that time, Mr. Nam also stepped down from the CEO position.

Born in 1976, Mr. Nam holds a degree in Construction Engineering, graduating from the Ho Chi Minh City University of Technology. He worked at HBC from 2001 and held Project Director positions at many of HBC's projects such as Vincom Tower, Sunrise Tower, Era Town, and construction management sites in Kuala Lumpur, Malaysia. During the 2014-2019 period, he served as Deputy CEO of Hoa Binh Real Estate Construction and Trading Joint Stock Company (the former name of HBC). He held the position of CEO of HBC from June 1, 2023, and subsequently joined the Board of Directors from June 27 of the same year.