SMC Targets Full Resolution of Novaland Debt in 2025 as Shares Surge Nearly 10%

Steel trader SMC has seen its stock price soar nearly 10% over the past two trading sessions, amid investor optimism after the company pledged to fully resolve outstanding debts with Novaland Group within 2025.

Financial pressure and debt restructuring plan

According to SMC’s reviewed H1 2025 financial report, the company posted a net loss of over VND 102 billion in the first six months, raising its accumulated loss to nearly VND 242 billion. Operating cash flow also slipped into the red with a deficit of nearly VND 130 billion, while current liabilities exceeded current assets by VND 972 billion.

As of June 2025, SMC still carried VND 391 billion in bad debts already provisioned, mainly linked to Novaland and several other firms. Previously, the two sides had partially settled debts through real estate offset transactions.

On December 20, 2024, SMC and Novaland signed a debt confirmation and repayment commitment. By March–April 2025, the agreement began implementation, with SMC recording VND 279 billion in pending assets and VND 156 billion in prepaid expenses for long-term real estate purchases or leases. In total, the debt offset value reached VND 435 billion.

Operational strategies amid market headwinds

To strengthen its financial position, SMC has rolled out multiple initiatives:

Tightening cost control and boosting production efficiency.

Reducing raw material and energy consumption while liquidating underperforming assets.

Optimizing working capital, particularly inventory and receivables, against the backdrop of global steel market volatility due to tariff shifts and geopolitical tensions.

Despite holding short-term liabilities of more than VND 3.62 trillion by end-June 2025, SMC remains confident in supplier support through extended payment terms, ensuring the company’s ability to sustain normal operations.

Stock price rally and leadership changes

On the stock market, SMC hit the daily trading limit on September 8 with explosive volume, followed by continued gains on September 9. In total, the share price surged nearly 10% across the two sessions.

Meanwhile, the company received the resignation of board member Hứa Vũ, citing personal reasons and career changes.

Extraordinary shareholders’ meeting

SMC has also announced an extraordinary shareholders’ meeting on September 25, 2025, where the board will propose the election of two new members to the Board of Directors and two new members to the Supervisory Board for the 2021–2025 term.

Board candidates include:

Phạm Hoàng Anh – finance background, formerly with MB Securities and OCB Bank, currently Deputy CEO of ConnectLog Vietnam.

Hoàng Trung Dũng – Vice Chairman of Hải Dương Road & Bridge JSC, and Head of Investment Advisory at Bảo Việt Securities.