The audited consolidated financial report published by Vietnam Electricity Group (EVN) shows that after-tax profit in 2025 reached 51,881 billion VND, 6.3 times higher than the previous year, allowing the group to wipe out its accumulated losses in just one year.
However, immediately after, there was clarification that the parent company EVN still has an accumulated loss of 5,611 billion VND, because the after-tax profit of the parent company in 2025 reached 39,762 billion VND, not enough to cover the accumulated loss from previous years of up to 45,374 billion VND at the end of 2024.
Why is there an inconsistency in the figures published by this group?
Why does the parent company still record a loss?
According to the audited financial report of the parent company EVN, it is due to the accumulated loss burden from previous years of up to 45,374 billion VND by the end of 2024. Therefore, the profit in 2025 (nearly 40,000 billion VND) is still not enough to cover the losses from previous years at the parent company.
According to corporate finance experts, the consolidated report reflects the health of the entire group, including the parent company and its subsidiaries. If the consolidated report shows no accumulated losses, it means the overall business ecosystem of the enterprise is generating enough profit to cover past losses.
However, why does the consolidated financial report of the entire group record a record profit, while the financial operations of the parent company EVN (100% state-owned) still cannot eliminate accumulated losses?
According to a financial expert, four consecutive years without electricity price adjustments for EVN caused the gross profit of the parent company EVN to be negative (in the 2021-2023 period, gross profit was negative at 0.5%, 7.9%, and 6.8% respectively). This led to large losses in 2022-2023 of nearly 50,000 billion VND for the parent company and nearly 47,500 billion VND for the consolidated group.
However, the increase in retail electricity prices, especially the 4.8% increase from May 2025, along with favorable factors from mobilizing cheap power sources, helped EVN achieve a large profit with a gross profit margin of up to 7.6%.
The large profit of the parent company basically compensated for the losses from the previous period. Looking at the consolidated results of the entire group, with a profit of over 51,880 billion VND, EVN eliminated its accumulated losses.
A financial expert stated that according to accounting principles, although the consolidated result of the entire group is one, the parent company and subsidiaries are still independent legal entities. Therefore, the consolidated profit is distributed evenly across all stages from power generation, transmission, to distribution…
Meanwhile, the profit of the parent company accounts for only a part of the entire electricity supply chain, so it is possible for the parent company to record a loss while the entire group is
