According to its first-half 2026 financial report, Bkav Antivirus Software JSC (Bkav Pro), where Nguyen Tu Quang serves as chairman and CEO, recorded nearly VND1.32 billion (US$50,000) in pre-tax profit, down more than 56% from the same period in 2025. After-tax profit fell from VND2.58 billion (US$98,000) to VND1.18 billion (US$45,000), a decline of around 54%.

Profitability also weakened markedly, with return on assets based on after-tax profit falling to just 0.2%, half the level recorded a year earlier. Return on equity declined from 1% to 0.4%.

As of June 30, 2026, Bkav Pro had around VND267 billion (US$10.1 million) in equity, virtually unchanged from a year earlier. Total liabilities, meanwhile, reached VND353 billion (US$13.4 million), up around VND4 billion (US$152,000) year on year.

Notably, outstanding bond debt remained at VND161.8 billion (US$6.1 million). During the first six months of the year, the company paid only more than VND639 million (US$24,000) out of more than VND7.6 billion (US$288,000) in bond interest due, while repaying just VND210 million (US$8,000) out of more than VND162 billion (US$6.1 million) in principal.

By the end of June, the company therefore still owed around VND161.8 billion (US$6.1 million) in principal and nearly VND7 billion (US$265,000) in interest on the bond. The bond, coded BKPCB2124001, matured on May 26, 2025.

Bkav Pro said the payments had not been made because “the issuer does not yet have sufficient financial resources for payment,” adding that it remained in negotiations with bondholders.

Bkav Pro’s financial pressure is also reflected in other outstanding receivables and liabilities. Its 2025 financial statements, audited by AASC, contained several qualified opinions, including one concerning an overdue short-term loan receivable from BKAV JSC with VND315 billion (US$11.9 million) in principal and VND100 billion (US$3.8 million) in interest, for which no provision had been made.

The company also had more than VND18.15 billion (US$688,000) in overdue trade receivables without provisions, while a loan of nearly VND33 billion (US$1.25 million) from Trustlink Investment and Services JSC was also overdue for repayment.

The figures show that Bkav Pro’s pressure extends beyond low profitability to overdue receivables and debt repayment obligations.

Bond BKPCB2124001 originally raised VND170 billion (US$6.4 million) at an initial interest rate of 10.5% a year. Its maturity was later extended to May 2025, with the interest rate raised to 11% a year. The proceeds were used to develop AI View cameras, fund digital transformation and partly finance Bphone production.

The bond is secured by shares in Bkav Pro and certain assets associated with Nguyen Tu Quang. Despite the collateral, most of the principal and interest remains unpaid.

Prospects for AI cameras

Bkav Pro’s current financial picture is markedly different from its peak years. In 2021, the company posted nearly VND100 billion (US$3.8 million) in after-tax profit. That figure fell below VND40 billion (US$1.5 million) in 2022 and to just nearly VND4.44 billion (US$168,000) for the whole of 2025. In the first half of 2026, after-tax profit stood at VND1.18 billion (US$45,000).

Notably, under the bond issuance plan, part of the proceeds from the now-overdue bond was intended to finance development of the AI View camera business. In theory, AI-powered cameras have promising prospects in Vietnam. Growing demand for surveillance, smart transportation, urban security, factories, schools and automated warning systems is creating opportunities for devices capable of analyzing images rather than merely recording them.

Bkav has a certain advantage in developing AI View around on-device AI processing, with capabilities including facial and license plate recognition, intrusion and fire detection, and image analysis. This approach could suit projects that require strong data security, reduced dependence on server infrastructure and real-time information processing.

Technological advantages, however, do not necessarily translate into market advantages. Bkav faces competition from international brands such as Hikvision and Dahua, as well as numerous lower-priced Chinese brands that have already established extensive dealer, distribution and installation networks across Vietnam.

The key challenge for Bkav Pro is its ability to turn technology into sufficient revenue and cash flow. A high-value AI camera project could boost revenue, but achieving a meaningful turnaround in profitability would require deployment on a sufficiently large scale, recurring revenue and appropriate profit margins.

In the Bphone smartphone business, the competitive landscape is similarly difficult, with Vietnam’s smartphone market concentrated among major brands.

AI cameras, therefore, cannot yet be regarded as a guaranteed “lifeline” for Bkav Pro. With annual profit currently amounting to only a few billion dong while outstanding bond principal alone exceeds VND161 billion (US$6.1 million), the company would need substantial improvements in revenue, profitability and cash flow to significantly ease its financial burden.

Manh Ha