Xuan Thien Group (HDAC) Fined VND 85M for Disclosure Violations, Posts 2023 Net Loss

Overview

Xuan Thien Group (HDAC), a diversified conglomerate led by entrepreneur Nguyen Van Thien, was fined VND 85 million by the State Securities Commission (SSC) for failing to disclose information on bond use and commitments for 2022. The company also reported a net loss of nearly VND 107 billion in 2023, compared to a profit of VND 22 billion in 2022. The penalty highlights ongoing disclosure compliance issues at the firm.

Key Facts

• SSC fined Xuan Thien Group VND 85 million on May 18, 2026, for non-disclosure of bond-related information for 2022.
• The company failed to disclose the use of proceeds from bond issuances and commitments to bondholders for 2022.
• Xuan Thien Group issued six private bond lots on August 18, 2020, with a total value of VND 560 billion, carrying a 10.6% coupon, maturing between 2022 and 2026.
• All bonds are no longer outstanding, according to HNX data.
• The company reported a net loss of VND 107 billion in 2023, versus a net profit of VND 22 billion in 2022.
• Charter capital at end-2023 stood at VND 5,870 billion.
• Chairman Nguyen Van Thien is the son of Nguyen Xuan Thanh, founder of Xuan Thanh Group, and brother of Nguyen Duc Thuy, Vice Chairman of Sacombank.

What Happened

The State Securities Commission issued a decision on May 18, 2026, fining Xuan Thien Group (HDAC) VND 85 million for violating information disclosure regulations. Specifically, the company did not disclose to the Hanoi Stock Exchange (HNX) documents regarding the fulfillment of commitments to bondholders for 2022 and the audited use of proceeds from bond issuances in 2022. The penalty was announced in a company filing.

Xuan Thien Group had previously issued six private bond lots on August 18, 2020, raising VND 560 billion at an interest rate of 10.6% per annum, with maturities from 2022 to 2026. According to HNX, all these bonds have since been fully redeemed. The company’s financial performance deteriorated sharply in 2023, swinging from a profit of VND 22 billion to a net loss of VND 107 billion.

Market Context

HDAC is listed on the UPCOM market under the ticker HDAC. The stock has been thinly traded, and the fine adds to negative sentiment around the company’s governance. The conglomerate operates across energy (over 20 projects totaling 2,000 MW), construction materials (cement, lime, steel), and high-tech agriculture. The loss in 2023 contrasts with the broader recovery in many Vietnamese industrial stocks, raising concerns about the company’s financial health.

Strategic Significance

The fine underscores regulatory scrutiny of bond market disclosures in Vietnam, particularly for firms that have conducted private placements. For Xuan Thien Group, the penalty and the 2023 loss highlight governance and transparency risks that could affect its ability to raise capital in the future. The conglomerate’s expansion into steel and agriculture requires significant investment, and the lack of timely disclosure may deter institutional investors. The company’s ties to the Xuan Thanh business family add a layer of reputational risk.

What to Watch

• Q1 2024 financial results to see if losses continue or narrow.
• Any further regulatory actions or fines related to past bond issuances.
• Updates on the progress of the Xuan Thien Nam Dinh green steel plant (capacity 9.5 million tons/year).
• Changes in disclosure practices and management commentary on compliance improvements.
• Trading volume and price action of HDAC shares on UPCOM.