Trung Nam Group's solar power arm suffers $37 mln loss amid rising debt pressure

Trung Nam Thuan Nam Solar Power Company Limited, a subsidiary of the multi-sector Trung Nam Group, incurred a net loss of VND969 billion ($36.83 million) in 2025, reversing a profit of VND138.2 billion ($5.35 million) a year earlier, according to its 2025 earnings statement.

The deterioration pushed accumulated losses to VND1.82 trillion ($69.1 million) as of end-2025, more than double the previous year’s figure of VND849 billion ($32.27 million).

Heavy losses sharply weakened the company’s capital base. Owner’s equity fell 62% year-on-year to VND593 billion ($22.54 million) from VND1.56 trillion ($59.3 million).

At the same time, total liabilities rose 13.2% to VND9.94 trillion ($377.72 million) as of December 31, 2025.

Bank borrowings climbed 32.1% to VND1.74 trillion ($66.22 million), while outstanding bond debt declined modestly by 6.4% to VND4.28 trillion ($162.8 million). Other payables increased 35.7% to nearly VND3.91 trillion ($148.66 million).

The imbalance between shrinking equity and expanding liabilities drove the company’s debt-to-equity ratio sharply higher, rising from 5.62 times to 16.76 times.

The company has begun restructuring parts of its debt obligations in an effort to stabilize its balance sheet.

By March 31, 2026, Trung Nam Thuan Nam had repurchased portions of nine bond tranches originally issued in May 2020, with total early buybacks amounting to around VND68.6 billion ($2.61 million).

In April, disclosures on the Hanoi Stock Exchange also showed the company amended terms and conditions for 10 bond issuances, signaling broader negotiations with creditors and bondholders.

Trung Nam Thuan Nam operates a large-scale solar power project covering 557 hectares in the former Ninh Thuan province, which is now part of the central province of Khanh Hoa following their merger last July.

The integrated complex includes a 450 MW solar plant, a 500kV substation and transmission lines, representing one of Vietnam’s largest renewable energy infrastructure projects developed during the country’s solar boom.

The facility uses more than 1.3 million solar panels and has a maximum annual output capacity of about 1.2 billion kilowatt-hours. Total construction costs reached approximately VND12 trillion ($456.14 million), with the project entering full operation in October 2020.