THE MINH ELECTRICAL CONSTRUCTION AND INSTALLATION COMPANY LIMITED

At first sight, THE MINH ELECTRICAL CONSTRUCTION AND INSTALLATION COMPANY LIMITED appears to be a significant domestic contractor, with over 21 years of operating history, nearly USD 90 million in annual sales, and a workforce of more than 300 employees. However, behind this impressive scale lies the company’s most critical and unsettling reality: a complete collapse of its equity position despite strong revenue growth.

In 2023, The Minh recorded a sharp 57% surge in sales, reaching USD 90.17 million—its highest level in recent years. Yet this expansion came at a high cost. The company posted a net loss of USD 1.71 million, wiping out accumulated capital and pushing owner’s equity deep into negative territory at –USD 6.8 million. Even more concerning, working capital plunged to –USD 7.17 million, indicating severe short-term liquidity stress and a potential inability to meet current obligations without external support.

This is not a typical construction-cycle downturn. The data show a company growing revenue while destroying balance-sheet strength, a pattern often associated with aggressive bidding, thin margins, delayed receivables, or cost overruns common in large utility and infrastructure projects. The sharp deterioration in equity, down more than 360% year-on-year, suggests that losses are structural rather than temporary.

For banks, project owners, and subcontractors, this contradiction is the core risk: scale without financial resilience. Despite being operationally active and asset-heavy, The Minh is now effectively operating with negative net worth, placing heightened importance on cash flow discipline, payment cycles, and counterparty risk assessment.

This fragile balance between expansion and solvency is the single most critical factor defining The Minh’s current risk profile—and one that no serious partner can afford to ignore.