ST8 fined by SSC for misstating 2025 after-tax profit by over VND 8 billion

Overview

The State Securities Commission (SSC) has fined ST8 Group (HOSE: ST8) VND 125 million for misstating its 2025 after-tax profit in its Q4/2025 consolidated financial statements. The company reported a profit of over VND 90 million, but the audited annual report showed a loss of over VND 8 billion. Separately, HEV (HNX: HEV) was fined VND 85 million for late disclosure of multiple financial documents.

Key Facts

• ST8 was fined VND 125 million by the SSC on July 31, 2026, for disclosing inaccurate after-tax profit figures for 2025.
• The misstatement involved a difference of over VND 8 billion between the Q4/2025 consolidated financial statements (profit over VND 90 million) and the audited 2025 annual report (loss over VND 8 billion).
• ST8 must correct the information as a remedial measure.
• HEV was fined VND 85 million on August 4, 2026, for delayed disclosure of Q1/2026 financial statements, audited 2025 annual financial statements, and 2025 annual report (over 15 days late), as well as Q4/2025 and 2025 semi-annual reports (under 15 days late).
• In Q2/2026, ST8 recorded over VND 24 billion in provisions for doubtful receivables, contributing to a net loss of nearly VND 21 billion, versus a profit of nearly VND 15 billion in the same period last year.
• ST8’s Q2/2026 revenue fell to over VND 15 billion, only 10% of the year-ago figure, with gross profit of just over VND 73 million.

What Happened

On July 31, 2026, the SSC issued a decision to fine ST8 Group VND 125 million for disclosing inaccurate after-tax profit figures for 2025 in its Q4/2025 consolidated financial statements. The company had reported a profit of over VND 90 million, but the audited 2025 consolidated financial statements showed a loss of over VND 8 billion. The SSC ordered ST8 to correct the information.

ST8 previously explained the discrepancy, citing the principle of prudence and the auditor’s opinion. The company said it had reviewed and adjusted, making additional provisions for receivables and financial items at subsidiaries, which reduced consolidated profit. In Q2/2026, ST8 again had to explain a swing from a profit of nearly VND 15 billion to a loss of nearly VND 21 billion, attributing it to provisions for overdue receivables. The company stated it is actively working with customers and partners to recover debts.

Market Context

ST8 shares closed at VND 2,650 on August 4, 2026, on the HOSE. The stock has been under pressure amid repeated profit warnings and disclosure issues. HEV, trading on HNX, closed at VND 7,600 on June 30, 2026, up 8.57% on thin volume. The SSC’s fines highlight ongoing regulatory scrutiny of disclosure compliance in Vietnam’s listed market, which could affect investor confidence in affected companies.

Strategic Significance

For ST8, the fine underscores persistent governance and asset-quality challenges. The company’s reliance on provisions for doubtful receivables suggests potential difficulties in collecting debts from customers and partners, which could continue to weigh on profitability. The repeated need to restate financials may erode investor trust and complicate access to capital. For HEV, the fine points to internal control weaknesses in financial reporting timelines. Both cases signal that the SSC is actively enforcing disclosure rules, which may lead to stricter compliance across the market.

What to Watch

• ST8’s next quarterly financial statements (Q3/2026) to see if provisions for doubtful receivables continue to impact earnings.
• Any updates from ST8 on debt recovery efforts with customers and partners.
• HEV’s compliance with disclosure deadlines in upcoming quarters.
• Potential further regulatory actions or fines against either company.
• Market reaction in ST8 and HEV share prices following the announcements.