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NKG – Q4/2025 Business Results: Revenue and gross margin both came in worse than expected

• 2025 ended with weak business results as NKG recorded a net loss of VND 9.3 billion in Q4, facing a double squeeze from declining end-market demand and heavy provisioning expenses. Revenue fell to a five-year low of VND 3,136 billion (-17% YoY), driven by a sharp slowdown in domestic volumes due to trade defense measures and unfavorable weather conditions. Gross margin narrowed significantly to 2.4% (from above 5% in previous quarters), reflecting low selling prices and a VND 15 billion provision for inventory write-downs. For full-year 2025, NKG’s parent company net profit declined by 56% YoY, highlighting a particularly challenging operating period.
• The company continues to pursue a low-cost raw material inventory strategy while allocating resources to accelerate its key project, the Nam Kim Phu My Steel Sheet Plant. As of year-end, inventory remained elevated at VND 5,303 billion (equivalent to an average inventory holding period of 5.1 months), aimed at capitalizing on low HRC prices and securing production input supply ahead of an anticipated rebound in peak construction demand. On long-term investments, the new plant project in Ba Ria–Vung Tau recorded VND 4,400 billion in construction-in-progress costs (representing 70% of the planned capital). At the current pace, the plant is expected to commence operations in the first half of 2026.