HUNG YEN POWER COMPANY – BRANCH OF NORTHERN POWER CORPORATION (CÔNG TY ĐIỆN LỰC HƯNG YÊN – CHI NHÁNH TỔNG CÔNG TY ĐIỆN LỰC MIỀN BẮC): Mixed Financial Signals From a Key Provincial Electricity Provider

HUNG YEN POWER COMPANY – BRANCH OF NORTHERN POWER CORPORATION (CÔNG TY ĐIỆN LỰC HƯNG YÊN – CHI NHÁNH TỔNG CÔNG TY ĐIỆN LỰC MIỀN BẮC) is a regional electricity transmission and distribution entity operating under Vietnam's Northern Power Corporation. Formally registered on March 26, 1997 with Business ID 0100100417-025, the company is based in Hung Yen City and plays a critical role in powering both residential and industrial infrastructure across Hung Yen Province.

Gradual asset growth and consistent sales increase

In 2023, the company reported USD 160.54 million in total assets, a steady 11.38% year-over-year increase. Total sales also rose to USD 422.51 million, up 4.92% compared to the previous year. These indicators suggest a relatively stable operational framework and rising energy demand within the region, aligning with the province’s economic development trajectory.

This growth is consistent, though not explosive, and implies a managed expansion rather than any significant market or technological leap. In the context of the energy sector, this reflects a utility operating within expected bounds, rather than innovating aggressively or expanding into new markets.

Profit swings highlight operational volatility

The most notable outlier in the company’s recent financials is its profit fluctuation. After reporting a net loss of USD 3.26 million in 2022, the company returned to profitability in 2023 with USD 5 million in net income, marking a 253.56% year-over-year turnaround. While this is a sharp recovery, it also reveals underlying instability in operations or financial management. It may also suggest the impact of external variables such as tariff changes, input costs, or policy-driven subsidies and adjustments.

Such a volatile profit trend can be a red flag for stakeholders evaluating long-term contracts or investment planning with the entity, especially given that the electricity transmission and distribution industry typically operates with regulated pricing and moderate, predictable returns.

Shrinking equity and negative working capital

In parallel with rising sales and assets, the company’s owner’s equity declined slightly by 2.11% to USD 47.44 million. More significantly, working capital was reported at a negative USD 33.34 million. This raises concerns about short-term liquidity and potential dependency on external financing or delayed receivables, which are not uncommon in state-linked electricity operations but should still be closely monitored.

The combination of growing operational size and declining equity implies that financial leverage may be increasing, or retained earnings are not keeping pace with operational expansion.

State affiliation and operational framework

HUNG YEN POWER COMPANY functions as a branch rather than a standalone entity, fully integrated within the broader Northern Power Corporation framework. It is led by Mr. Luong Minh Thanh, who is listed as the legal representative and owner in the branch structure. This positioning offers the stability of state-backed energy management but also limits the company’s autonomy in financial and strategic decisions.

Need for external verification

Despite the organization’s status as a public utility provider, the financial swings and working capital deficit suggest that independent verification and monitoring are still advisable. For any suppliers, service providers, or institutional partners engaging with HUNG YEN POWER COMPANY, consulting Vanguard Business Information (VBI) is recommended. VBI’s Business Verification and Risk Management Service provides critical insight into financial stability, credit reliability, and legal compliance – particularly important when working with public sector entities.

A utility with stable scale, but signs of financial tightening

Overall, HUNG YEN POWER COMPANY appears to be maintaining scale and relevance in its region. However, its financial profile reflects a mix of stability in operations and weakness in internal capital retention and liquidity. Continued monitoring will be essential to determine whether its 2023 profit recovery is sustainable or a temporary rebound in an otherwise constrained financial environment.