Aqua City Developer Thanh Pho Aqua Posts VND 120.8B H1 Loss, Debt Shifts

Overview

Thanh Pho Aqua, the developer of the Aqua City project and a subsidiary of Novaland (NVL), reported a net loss of over VND 120.8 billion for the first half of 2026, widening from a loss of over VND 70 billion in the same period last year. The company’s bank debt surged to over VND 1,548 billion, while bond debt fell sharply, reflecting a shift in its debt structure. This financial strain at a key project company underscores the challenges facing NVL as it works to stabilize its operations.

Key Facts

• Thanh Pho Aqua reported a net loss of VND 120.8 billion in H1 2026, compared to a loss of VND 70 billion in H1 2025.
• Total liabilities rose 13.8% year-on-year to over VND 11,349.9 billion as of June 30, 2026.
• Debt-to-equity ratio increased from 6.2x to 6.79x.
• Bank loans surged from VND 93.2 billion to VND 1,548.3 billion.
• Bond debt decreased from VND 2,101.9 billion to VND 500 billion.
• Thanh Pho Aqua delayed interest payments of over VND 26 billion on bond code TPACH2125001.
• Novaland holds a 50.98% ownership stake and 51% voting rights in Thanh Pho Aqua as of June 30, 2026.

What Happened

Thanh Pho Aqua, the developer of the Aqua City urban area, disclosed its financial situation in a document sent to the Hanoi Stock Exchange (HNX) and bondholders. The company reported a net loss of over VND 120.8 billion for the first six months of 2026, a significant increase from the loss of over VND 70 billion in the same period of 2025. As of June 30, 2026, equity increased 3.8% to over VND 1,670.9 billion, with owner’s capital at VND 846.64 billion and undistributed after-tax profit at nearly VND 825.3 billion.

Total liabilities rose to over VND 11,349.9 billion, up 13.8% year-on-year. The debt structure shifted notably: bank loans increased sharply from VND 93.2 billion to VND 1,548.3 billion, while bond debt fell from VND 2,101.9 billion to VND 500 billion. Other payables stood at over VND 9,301.6 billion. The company also reported delayed interest payments of over VND 26 billion on bond code TPACH2125001, which has a total issuance value of VND 500 billion and was originally issued on September 17, 2021, with a maturity extended to September 17, 2027.

Market Context

Novaland (NVL) trades on the Ho Chi Minh Stock Exchange (HOSE) and closed at VND 13,000 on September 7, 2026. The widening loss at Thanh Pho Aqua, a critical subsidiary, adds to the financial pressure on NVL, which has been grappling with high debt and slow project progress. The shift from bond debt to bank loans may indicate refinancing efforts, but the increased leverage and delayed interest payments signal ongoing liquidity challenges. In the broader Vietnamese real estate sector, developers continue to face tight credit conditions and slow recovery in the property market.

Strategic Significance

Thanh Pho Aqua is the developer of Aqua City, a key project within Novaland’s larger Aqua urban area in Dong Nai province, with a total investment of about USD 8 billion. The project is considered vital to NVL’s turnaround strategy. The subsidiary’s financial deterioration, including rising bank debt and missed interest payments, could delay project milestones and affect NVL’s ability to generate cash flow from Aqua City. For long-term investors, the health of Thanh Pho Aqua is a bellwether for NVL’s overall recovery prospects, as the parent company’s fortunes are closely tied to this flagship project.

What to Watch

• NVL’s next quarterly earnings report for signs of consolidated impact from Thanh Pho Aqua’s losses.
• Updates on the restructuring of bond TPACH2125001 and any further delays in interest payments.
• Progress on Aqua City construction and sales, which could indicate improved cash flow.
• Changes in Thanh Pho Aqua’s bank debt levels, which may signal refinancing or new credit lines.
• Any regulatory filings or announcements from Novaland regarding subsidiary financial health.