HAGL Agrico lost another 323 billion after delisting

HAGL Agrico lost another 323 billion VND in the second quarter of 2024

Hoang Anh Gia Lai International Agriculture Joint Stock Company - HAGL Agrico (Code: HNG) has just announced its Q2 business results with revenue decreasing by 48% to only 78.8 billion VND. Meanwhile, the cost of goods sold accounted for 350.2 billion VND, an increase of 76% over the same period.

Operating below cost price caused HNG to report a gross loss of VND271.4 billion, nearly 6 times higher than the gross loss in the second quarter of 2023. At the same time, HNG also suffered a loss after tax of VND325.5 billion, marking the 13th consecutive quarter of losses for this unit.

Losing an additional 323 billion in the second quarter of 2024, billionaire Tran Ba ​​Duong's HNG has an accumulated loss of more than 8,472 billion VND (Photo TL)

According to HNG, the reason for the loss was that the fruit tree segment recorded revenue of 45.8 billion VND in the second quarter, down 59% compared to the same period last year. The rubber tree segment also only brought in 31.9 billion VND due to a lack of latex tapping workers.

In the second quarter of 2024, financial revenue was HNG's main source of revenue, increasing 3.4 times over the same period, reaching VND 39 billion. However, financial expenses also accounted for VND 86.5 billion, most of which was interest expenses.

Activities at the associated company brought in 2.1 billion VND, down by half compared to the same period. Notably, sales expenses and business management expenses were both reduced, to 1.9 billion and 7.5 billion VND respectively.

13 consecutive quarters of losses, total accumulated loss up to 8,472 billion

Including the second quarter of 2024, HAGL Agrico has had its 13th consecutive quarter of losses. The peak was in the fourth quarter of 2022, when HNG reported a loss of up to VND 2,793 billion. The following quarters saw consecutive losses of hundreds of billions of VND.

By the end of the second quarter of 2024, HAGL Agrico recorded total assets of VND 15,549 billion, an increase of nearly VND 1,500 billion compared to the beginning of the year. Of which, the remaining cash amount was only VND 16 billion, in addition to which there were no significant deposits.

Most of the company's assets are in the form of fixed assets, long-term unfinished assets from unfinished construction costs and long-term receivables. This means that HNG's asset structure is facing a big problem in terms of flexibility.

In the capital structure, liabilities account for 13,162 billion VND. While the remaining equity is only 2,387 billion VND. In fact, the initial equity was 11,085 billion VND, but the accumulated loss of 8,472 billion VND has almost "blown away" all of HNG's equity.

HNG shares have also just been forced to delist.

13 quarters of loss equivalent to more than 3 consecutive years without a single profit, recently Mr. Tran Ba ​​Duong's HNG was forced to delist.

Specifically, the Ho Chi Minh City Stock Exchange (HoSE) has announced the mandatory delisting of HAGL Agrico's code HNG due to three consecutive years of losses. In 2021, the company lost 1,119 billion, in 2022 it lost another 3,576 billion and in 2023 it lost 1,098 billion.

HNG shares are also under control. As of July 31, 2024, HNG shares are only VND3,910/share.

Previously, HAGL Agrico was an important company in the ecosystem of Hoang Anh Gia Lai Joint Stock Company (HAG) and was associated with the name of businessman Doan Nguyen Duc. However, since 2021, the position of Chairman of the Board of Directors has been transferred to Mr. Tran Ba ​​Duong, while Mr. Duc holds the position of Vice Chairman. Since then, HAGL Agrico has continuously recorded losses of hundreds of billions, even thousands of billions of dong, wiping out almost all of its equity.

Source: https://www.congluan.vn/vua-bi-huy-niem-yet-hagl-agrico-hng-lai-lo-them-323-ty-dong-post305643.html