Profit revisions put asset quality in focus after half-year reviews

Profit revisions put asset quality in focus after half-year reviews

Some companies' profits cut substantially as auditors examined provisions, inventories, receivables and the recoverability of assets.

PNJ's buildings in Center Point Tower, Cầu Giấy, Hà Nội. — Photo courtesy of PNJ

A number of Vietnamese companies reported significant changes to their first-half 2026 earnings following reviews of their financial statements, with some seeing profits cut substantially as auditors examined provisions, inventories, receivables and the recoverability of assets.

Thu Duc Housing Development Corporation (Thuduc House) was among the companies recording a sharp earnings adjustment. Before the review, the company reported first-half profit after tax of more than VNĐ12.37 billion (US$477.6 million). 

The figure fell by 85 per cent to VNĐ1.83 billion after the review, a reduction of VNĐ10.5 billion. Profit was also more than 90 per cent lower year-on-year.

The company attributed the revision mainly to an additional VNĐ2.5 billion provision for an advance payment at its Thu Duc House Services Exploitation (TDHS) subsidiary because payment and settlement documentation had not been fully completed.

Thuduc House also adjusted a VNĐ8 billion reversal of a provision for receivables after determining that sufficient external evidence was not yet available, following the auditor's recommendation. The company said it was continuing to complete the relevant documentation.

The review also addressed a difference of more than VNĐ26 billion in revenue and cost of goods sold in the parent company's separate financial statements related to a business cooperation contract for the TDH-Tocontap housing project. The amount was adjusted to the appropriate period after a review determined that the work had been accepted in 2023.

Phu Nhuan Jeweelery (PNJ) recorded a considerably larger earnings revision.

Its consolidated first-half profit before tax fell by VNĐ675.6 billion, or nearly 44 per cent, from VNĐ1.54 trillion in its internally prepared financial statements to VNĐ862.3 billion after the review.

Consolidated profit after tax was revised down by VNĐ456 billion, from VNĐ1.18 trillion to VNĐ728.5 billion. On a separate-company basis, the parent's profit after tax dropped from VNĐ1.15 trillion to nearly VNĐ590 billion, a decline of about 49 per cent.

PNJ said the changes mainly resulted from updated estimates relating to its product buyback policy. 

The company adjusted provisions for costs associated with processing repurchased products remaining in inventory as of June 30 and made additional provisions for potential losses on products sold back by customers between July 1 and September 3.

PwC issued an unmodified conclusion on the reviewed financial statements, while highlighting matters concerning diamonds and related estimates disclosed in the notes.

At the end of June, PNJ recorded an inventory write-down provision of nearly VNĐ1.42 trillion and a provision of VNĐ2.27 trillion for losses associated with its buyback policy.

MHC JSC also reported a change after its financial statements were reviewed. Its consolidated first-half net loss increased by VNĐ7.26 billion to VNĐ35.4 billion.

The company said its second-quarter financial statements had omitted part of the loss attributable to an associate, resulting in the adjustment.

The half-year reporting season also brought continued auditor attention to inventories, receivables and asset recoverability.

At Gilimex, consolidated inventory was adjusted slightly from VNĐ2.649 trillion to VNĐ2.645 trillion after the review, while profit after tax increased from nearly VNĐ21 billion to VNĐ21.3 billion.

The auditor continued to draw attention to inventory associated with the legal dispute between Gilimex and Amazon.

As of the issuance date of the reviewed first-half 2026 financial statements, the litigation remained ongoing, with Gilimex exercising its right to appeal in accordance with applicable procedures.

According to the auditor, Gilimex had not made an inventory write-down provision for the goods related to the dispute as of June 30.

The auditor said there was insufficient basis to determine the potential loss and recoverable value of the inventory concerned.

Gilimex management had previously told shareholders at its general meeting that the company had around VNĐ800 billion worth of inventory associated with Amazon. 

Bizhub