OCH H1 2026 Net Loss Narrows to VND 22B Despite 58% Revenue Jump

Overview

One Capital Hospitality (OCH), the parent of iconic ice cream brand Kem Tràng Tiền, reported a net loss of nearly VND 22 billion in H1 2026, a significant improvement from a loss of over VND 66 billion in the same period last year. Revenue jumped 58% year-on-year to about VND 484 billion, but accumulated losses still stand at approximately VND 383 billion. The company is undergoing restructuring, with its flagship store at 35 Tràng Tiền set to close on September 15, 2026.

Key Facts

• OCH recorded net revenue of about VND 484 billion in H1 2026, up 58% year-on-year.
• Net loss after tax narrowed to nearly VND 22 billion, compared with a loss of over VND 66 billion in H1 2025.
• Accumulated losses reached approximately VND 382.7 billion as of June 30, 2026, equivalent to over 19% of charter capital.
• Total assets stood at about VND 3,786 billion, with long-term financial investments of VND 2,085 billion (over 55% of total assets).
• Outstanding borrowings exceeded VND 1,300 billion.
• The Kem Tràng Tiền store at 35 Tràng Tiền, Hà Nội, will stop serving customers from September 15, 2026.
• OCH has charter capital of VND 2,000 billion and trades on the HNX.

What Happened

One Capital Hospitality (OCH), the parent company of Kem Tràng Tiền, released its reviewed consolidated financial statements for the first half of 2026, revealing a net loss of nearly VND 22 billion despite a 58% increase in revenue to about VND 484 billion. The company attributed the improved performance to scale expansion, with gross profit reaching VND 179 billion, up sharply from the prior year. However, selling and administrative expenses rose to VND 93 billion and VND 82 billion, respectively, offsetting revenue gains.

The loss attributable to parent shareholders was only about VND 1.5 billion, with the majority borne by non-controlling interests. Accumulated losses remained high at approximately VND 383 billion as of June 30, 2026, a key issue the company aims to address through restructuring. The announcement follows news that the flagship Kem Tràng Tiền store at 35 Tràng Tiền, Hà Nội, will close on September 15, 2026, as part of a business space transformation.

Market Context

OCH shares closed at VND 6,500 on September 6, 2026, reflecting ongoing investor caution. The company, listed on the HNX, operates in the food and beverage and hospitality sectors, with a significant portion of assets tied up in long-term financial investments (over 55% of total assets). The narrowing loss and revenue growth signal operational improvement, but the heavy debt load and accumulated losses continue to weigh on sentiment. The closure of the iconic store adds a symbolic challenge to the brand’s recovery narrative.

Strategic Significance

The H1 results indicate that OCH’s core business is gaining traction, with revenue and gross profit expanding strongly. However, the company’s financial health remains strained, with accumulated losses exceeding 19% of charter capital and borrowings above VND 1,300 billion. The restructuring plan, including the store closure and focus on other locations, suggests a strategic shift toward more profitable operations. For long-term investors, the key question is whether OCH can sustain revenue growth while controlling costs to achieve profitability and reduce its debt burden.

What to Watch

• Q3 2026 earnings release to see if the loss reduction trend continues.
• Updates on the restructuring plan, including asset sales or capital increases.
• Progress in reducing outstanding borrowings and accumulated losses.
• Performance of remaining Kem Tràng Tiền outlets and new flagship store at 18 Hàng Bài.
• Any regulatory filings or announcements regarding the store closure’s impact on revenue.