Bkav Pro continues to delay bond repayments

Bkav Antivirus Software Joint Stock Company (Bkav Pro), led by CEO and legal representative Nguyen Tu Quang, has disclosed further delays in meeting its bond principal and interest payment obligations.

According to the disclosure, the company failed to pay nearly VND7 billion ($266,000) in interest on bond issue BKPCB2124001, originally scheduled for May 26, 2025.

For the nearly VND161 billion ($6.1 million) principal obligation, Bkav Pro had paid only VND1.076 billion ($41,000) as of November 6.

The company attributed the delays to insufficient financial resources and said it was negotiating with bondholders.

The BKPCB2124001 bonds were issued in 2021 with an initial annual interest rate of 10.5%. Their maturity was subsequently extended to May 2025, with the interest rate raised to 11% per year.

Proceeds from the issuance were allocated to the development of AI View cameras, digital transformation initiatives and part of the production activities for Bphone smartphones.

The bonds were secured by shares in Bkav Pro and certain assets associated with Nguyen Tu Quang.

The fact that most of the principal and interest obligations remain unpaid, even after the maturity extension, indicates that the company has yet to resolve its cash flow difficulties.

Profits plunge as overdue receivables mount

Bkav Pro's financial pressures are also reflected in its deteriorating business performance.

According to its financial report for the first half of 2026, the company recorded pre-tax profit of more than VND1.32 billion ($50,000) and after-tax profit of approximately VND1.18 billion ($45,000), down nearly 57% and 54% year on year, respectively.

As of June 30, Bkav Pro's equity stood at approximately VND267 billion ($10.1 million), while total liabilities reached VND353 billion ($13.4 million).

The company's profitability has been declining for several years.

In 2021, Bkav Pro reported nearly VND100 billion ($3.8 million) in after-tax profit. That figure fell to VND40.4 billion ($1.5 million) in 2022 before dropping to just VND4.44 billion ($169,000) in 2025.

Profitability indicators have also weakened. Return on equity (ROE) declined from 1% to 0.4%, while return on assets (ROA) fell from 0.4% to 0.2%.

With pre-tax profit of only VND1.32 billion in the first half of 2026, generating sufficient funds to settle nearly VND161 billion in bond debt remains a major challenge.

Notably, Bkav Pro's 2025 audit report, prepared by AASC Auditing Firm Company Limited, highlighted several concerns regarding outstanding receivables and financial obligations.

These included overdue short-term loan receivables from BKAV Joint Stock Company, comprising VND315 billion ($12 million) in principal and VND100 billion ($3.8 million) in interest, for which no provisions had been made.

The company also reported overdue trade receivables exceeding VND18.15 billion ($690,000), along with a nearly VND33 billion ($1.25 million) loan from Trustlink Services and Investment Joint Stock Company that had passed its repayment deadline.

AI cameras and smartphones face tough competition

Looking ahead, Bkav Pro's AI View camera business is considered one of its more promising areas of development.

Growing demand for traffic monitoring, urban security, factory surveillance, school security and automated warning systems is creating opportunities in the intelligent camera market.

However, technological capabilities do not necessarily translate into commercial success.

Bkav Pro faces competition from established international manufacturers such as Hikvision and Dahua, as well as numerous other companies with advantages in production scale, pricing and distribution networks.

Assessing AI View's commercial prospects will require closer examination of the number of projects deployed, revenue generated, customer base and ability to secure and maintain contracts.

Meanwhile, Bphone remains part of the broader Bkav technology ecosystem but operates in a highly competitive smartphone market.

Global brands including Samsung, Apple, Xiaomi, OPPO and vivo enjoy significant advantages in supply chains, product ecosystems and marketing capabilities.

For Bkav Pro, the immediate challenge goes beyond developing new products.

The company must improve profitability, recover overdue receivables and resolve its long-standing bond obligations.

With current earnings remaining extremely small relative to its unpaid bond debt, cash flow pressures are likely to remain a critical issue for the company.

Manh Ha