Phenikaa's pre-tax profit rises as bank debt edges down

Phuong Hoang Xanh A&A Group JSC, better known as Phenikaa Group, has released its financial results for the first half of 2026, with figures compiled from its reviewed consolidated financial statements.

The group's pre-tax profit reached VND373.2 billion (about $14.4 million) in the first six months, up approximately 5.1% year on year. Net profit came to VND231.9 billion ($8.9 million), down around 3.8%.

As of June 30, 2026, Phenikaa Group's total liabilities exceeded VND9.146 trillion ($351.8 million), an increase of about VND416.7 billion ($16 million), or 4.8%, from the same point in 2025.

The composition of its debt also changed. Bank borrowings declined from more than VND5.101 trillion ($196.2 million) to over VND5.028 trillion ($193.4 million). Meanwhile, outstanding bonds increased by VND120 billion ($4.6 million) to VND1.54 trillion ($59.2 million), while other liabilities rose from nearly VND2.209 trillion ($85 million) to more than VND2.578 trillion ($99.2 million).

The group's equity stood at more than VND9.148 trillion ($351.8 million), down around 1.4% year on year and almost equal to its total liabilities. Its liabilities-to-equity ratio was 1, compared with 0.94 a year earlier.

Funds appropriated from after-tax profits increased sharply, from more than VND236 billion ($9.1 million) to over VND460 billion ($17.7 million). The amount is significant compared with the group's current charter capital of VND3 trillion ($115.4 million).

Phenikaa Group was established in October 2010 with initial charter capital of VND100 billion ($3.8 million). Its ecosystem now comprises more than 30 member companies and employs around 5,000 people. Vicostone remains its core business, specializing in engineered quartz surfaces.

Chairman Ho Xuan Nang was once among the wealthiest individuals on Vietnam's stock market, with his direct and indirect holdings in Vicostone, listed under the ticker VCS, once estimated to be worth around $750 million. The value of those holdings has since fallen in line with Vicostone's share price.

On Oct. 5, VCS shares fell 0.33% to VND30,000 ($1.15) apiece, their lowest level since October 2016. Based on the number of Vicostone shares held by Nang, his stock-market wealth currently stands at around VND3.81 trillion ($146.5 million). Even so, he is still regarded as Vietnam's wealthiest professor.

Expanding into education and technology

Phenikaa Group's financial performance remains closely linked to Vicostone, the core company in its ecosystem. Phenikaa currently owns more than 84% of Vicostone.

Vicostone is one of the major contributors to Phenikaa's business. After reaching VND7.07 trillion ($271.9 million) in revenue in 2021, Vicostone recorded VND4.129 trillion ($158.8 million) in 2025.

Its net profit in 2025 was VND694 billion ($26.7 million), compared with nearly VND1.15 trillion ($44.2 million) in 2022. In the first six months of 2026, consolidated net revenue reached VND1.633 trillion ($62.8 million), while net profit was nearly VND254 billion ($9.8 million), down 23.5% and more than 32%, respectively, from a year earlier.

The decline has increased the need for the group to find additional sources of growth. Phenikaa is now developing new growth engines beyond engineered stone.

Education is one of the sectors receiving significant investment. The group's ecosystem includes Phenikaa University, education investment units, research institutes, and science and technology organizations.

Phenikaa University currently offers 55 majors and academic programs, has an annual enrollment target of more than 10,000 students, and operates three research institutes.

Technology is another notable area of expansion. Phenikaa-X is developing autonomous vehicles, robots, drones and smart-city solutions.

At Hoa Lac Hi-Tech Park in Hanoi, the company has worked with authorities on a controlled pilot project for intelligent autonomous transport systems and robotaxis.

The 24-month pilot program is planned to include autonomous buses, robotaxis, automated cleaning robots and delivery robots. The systems employ technologies including LiDAR, cameras, radar, GNSS/RTK positioning, inertial measurement units and high-precision digital maps.

Phenikaa-X has also developed cargo transport robots capable of carrying loads of up to 1,000kg. According to information released by the company, the solution has been deployed at a Samsung Electronics factory.

These businesses are expected to benefit from trends in digital transformation, automation, artificial intelligence and smart mobility. Unlike Vicostone, however, which has generated substantial cash flow for years, education and technology require longer investment horizons.

Phenikaa is also involved in real estate through the Endless Skyline West Lake project in Hanoi, developed by one of its member companies. The project reflects the group's strategy of building a diversified business ecosystem on the foundation of the substantial profits historically generated by Vicostone.

Education and technology therefore offer Phenikaa additional avenues for growth alongside engineered stone. However, its financial report does not disclose separate results for each business segment, meaning more data will be needed to assess how much these new operations contribute to the group's overall growth.

Ho Xuan Nang was born in 1964 in Yen Thang commune, formerly part of Y Yen district in Nam Dinh province. He graduated from Hanoi University of Science and Technology in May 1986 with a degree in internal combustion engines and earned a doctorate in mechanical and power engineering from the university in 1992. He also received a part-time degree in foreign languages from Hanoi University of Foreign Language Education in 1988.

Nang, who serves as chairman of the Phenikaa University Council and chairman of Vicostone JSC, was officially recognized as a professor in mechanical and power engineering in 2025.

Manh Ha