SMC reported VND45.1 billion ($1.73 million) in net profit in the first six months of 2026, reversing a loss of more than VND81 billion ($3.14 million) a year earlier, according to its reviewed semi-annual financial statements.

First-half net revenue fell 37% year-on-year to VND2.39 trillion ($91.52 million), while gross profit dropped to VND61.3 billion ($2.35 million), translating into a gross margin of only around 2.6%.

Financial expenses reached VND75.5 billion ($2.9 million), while selling and administrative expenses stood at more than VND28 billion ($1.07 million) and VND21.2 billion, respectively.

Combined, the three expense categories amounted to nearly VND125 billion ($4.79 million), more than twice the company’s gross profit.

As a result, SMC recorded a VND12.85 billion ($492,860) in net loss from business operations.

The company nevertheless swung to a net profit because of VND67.5 billion ($2.59 million) in other income, including VND57.8 billion ($2.22 million) from the disposal of fixed assets.

However, its financial position remained under significant pressure. As of end-June, SMC had VND1.49 trillion ($57.15 million) in current assets, compared with VND2.51 trillion ($96.27 million) in current liabilities.

The auditor said the imbalance represented an uncertainty that may cast significant doubt on the company’s ability to continue as a going concern.

Liquidity risks were further highlighted by SMC’s cash and cash equivalents, which fell more than 82% to just VND21.5 billion ($824,620) from VND121.3 billion ($4.65 million) at the start of the year.

Meanwhile, total borrowings and finance lease liabilities stood at nearly VND1.30 trillion ($49.86 million), equivalent to about 124% of shareholders’ equity.

Bank loans accounted for more than VND1.07 trillion ($41.04 million) of the total. The three largest lenders were VietinBank, with nearly VND500 billion ($19.18 million), BIDV with more than VND314 billion ($12.04 million), and MSB with about VND210 billion ($8.05 million).

Another notable item on SMC’s balance sheet is VND350.8 billion ($13.45 million) of real estate at historical cost, recorded under construction in progress.

Of this amount, approximately VND115.2 billion ($4.42 million) relates to the NovaWorld Ho Tram project developed by Novaland (HoSE: NVL), while another VND235.6 billion ($9.04 million) is associated with projects under contracts involving Aqua City Co., Ltd., Da Lat Valley Real Estate, and Ngan Hiep Real Estate JSC.

According to the financial statement notes, SMC acquired the properties through debt offset arrangements, using receivables owed by the sellers to settle the purchase consideration.

The entire amount of these real estate investments is also being used as collateral for the company’s borrowings, underscoring the close link between SMC’s asset disposal strategy, debt obligations, and liquidity position.