Six months remain to eliminate audit qualifications before FY2026 is fully

Six months remain to eliminate audit qualifications before FY2026 is fully

In the first half of 2025, Searefico (HOSE: SRF) released its reviewed financial statements, reflecting several noteworthy signals. Consolidated revenue reached VND 432.72 billion and net profit after tax stood at VND 5.54 billion, marking a sharp increase of 830% compared to the same period last year (6M2024: VND 671.05 million). Amid continued cost pressures and fierce competition in the construction and M&E sectors, the ability to maintain positive profitability demonstrates effective cost control and operational stability.

In parallel with business performance, Searefico recorded a newly signed contract value (backlog) of VND 1,310 billion, encompassing construction, manufacturing, and M&E services across various sectors, including hospitality, industrial, and healthcare. This backlog ensures a strong pipeline for the second half of the year and provides room to manage cash flow and sustain stable revenue.

The just-released interim financial statements also reflect important progress in addressing previously qualified audit items. In the separate (parent company) statements, the company reported that all prior audit qualifications have been fully resolved, demonstrating its efforts to improve transparency and comply with accounting standards.

Notably, the consolidated financials also show significant changes. Receivables flagged by auditors have been sharply reduced, from VND 114.24 billion as of December 31, 2023, to VND 33.6 billion as of June 30, 2025—a nearly 71% decrease. At the same time, payables that had been subject to audit qualifications have been fully resolved and no longer exist in the current reporting period.

In addition, issues related to inventory—one of the key concerns repeatedly raised by auditors—have also been completely addressed. These results indicate the management team’s strong commitment to improving reporting quality and aiming for higher financial standards.

Searefico’s leadership has set a clear goal of fully resolving all audit qualifications in the consolidated statements within the remaining six months of 2025. Importantly, the company has proactively booked provisions for inventory write-downs (VND 39.9 billion) and doubtful debts (VND 55.8 billion). As outstanding projects are finalized and settled, these provisions may be reversed and recognized as additional profit in late 2025 and into 2026. With this preparation, Searefico believes it can fully resolve all qualified audit items within 2025 and avoid delisting.

The overall financial picture of Searefico should be considered from a balanced perspective. While the HOSE notice serves as a procedural reminder, it also creates positive pressure for the company to accelerate its remediation process. At present, Searefico maintains positive revenue and profit, a high level of backlog, and significantly reduced outstanding debts.

In the context of a gradually recovering construction and M&E sector, Searefico’s financial transparency and the leadership’s firm commitment may serve as key drivers sustaining investor confidence in SRF—particularly among long-term investors.

FILI