Accumulated loss of nearly a thousand billion VND, HAG stock of Hoang Anh Gia Lai has not escaped the warning

DNVN - After-tax profit in the first half of 2024 was negative more than VND 957 billion, shares did not meet the regulations on listing and trading of listed securities, which is the reason why HAG shares of Hoang Anh Gia Lai Joint Stock Company have not "escaped" the warning of the Ho Chi Minh City Stock Exchange.

On August 30, Ho Chi Minh City Stock Exchange (HoSE) issued a notice to maintain the warning status for HAG shares of Hoang Anh Gia Lai Joint Stock Company (HAGL) according to Decision No. 740 dated October 7, 2022 of HoSE.

The reason is that HAGL's undistributed profit after tax as of June 30, 2024 is negative VND 957.01 billion based on the audited consolidated financial statements for the first half of 2024, and the shares do not meet the regulations at Point b, Clause 4, Article 37 of the Regulations on listing and trading of listed securities.

Previously, on July 30, HAG issued an official dispatch announcing measures and roadmap to overcome the warning situation of securities.

According to HAGL, the consolidated financial report for the second quarter of 2024 has shown positive changes and partly overcomes the reason why the stock was put on warning status.

As evidence for this explanation, HAG cited the parent company's after-tax profit in the first 6 months of 2024 as 484 billion VND, and after-tax profit in the first half of this year as 507 billion VND.

HAGL recorded an accumulated loss of 957 billion VND in the first 6 months of this year, short-term debt exceeded short-term assets by 350.3 billion VND.

Regarding investment projects: the company focuses on the agricultural sector, including two industries: livestock and crop cultivation with main products being bananas, durian and pigs.

In the first 6 months of this year, the company increased the durian area from 1,500 hectares to 1,947 hectares, while the banana growing area remained at 7,000 hectares.

Regarding finance, HAG said it had completed the private offering of shares and collected VND1,300 billion. Of which, the company paid the principal and interest on bonds issued by the company according to the information announcement dated April 25, 2012, applicable to VND300 billion of the face value of bonds issued on June 18, 2012, maturing on September 30, 2025, and restructured the debts of its subsidiaries, reducing interest expenses.

In addition, HAGL will continue to implement financial restructuring measures to further reduce outstanding debt to banks, reduce interest expenses and maintain stable cash flow for the company's production and business activities in the context of many market difficulties.

Regarding the business model, in parallel with developing cultivation and operating according to the circular agricultural model, HAGL said it will continue to expand clean land funds, prioritize investment in improving infrastructure, packaging factories, packaging... in the direction of applying advanced technology to improve productivity and product quality.

HAG believes that its business activities will achieve many positive results, gradually reduce and eliminate accumulated losses, and overcome the causes that led to the stock being put on warning status.

However, the business results are not as expected, which is the reason why HAG has not escaped the warning as mentioned above.

On August 29, HAGL sent an official dispatch to the State Securities Commission and HoSE explaining the fluctuations in business results in the consolidated financial statements for the first half of 2024 and 2023.

After-tax profit in the audited consolidated financial report for the first half of 2024 is VND 500.1 billion, an increase of VND 115 billion over the same period last year.

According to HAG's explanation, gross profit increased by VND 352.1 billion, mainly due to the increase in gross profit from fruit trading activities compared to the same period in 2023.

Financial losses decreased by VND120.9 billion, mainly due to a decrease in interest expenses. At the same time, exchange rate differences also decreased compared to the same period in 2023.

Other profits decreased by VND 269.2 billion, mainly due to the profit from the purchase of Bolaven High-Tech Agriculture Company Limited in the first 6 months of 2023. This amount did not arise in the same period of 2024.

In the audited consolidated financial statements for the 2024 half-year, the auditors emphasized the group's accumulated loss of VND957 billion, the group's short-term debt exceeded its short-term assets by VND350.3 billion. These conditions indicate the existence of a material uncertainty that may cast significant doubt on the group's ability to continue as a going concern.

HAG explained that at the date of the audited consolidated financial statements for the next 12 months, the group had prepared a business plan, including the expected cash flow generated from the liquidation of part of financial investments, liquidation of assets, and recovery of loans from partners. The group is still in the process of working with lenders to adjust the violated terms of the related loan and bond contracts. At the same time, it is negotiating the restructuring of some overdue debts. The pig and banana business will continue to generate large amounts of cash in 2024.

As of June 30, 2024, HAG has 7 direct subsidiaries, 6 indirect subsidiaries, 1 associated company and 4 branches. The main activities of this enterprise are managing investments, trading in materials and machinery and equipment for the cultivation and livestock industries; agricultural services; mechanics, fruit growing and trading; pig breeding and trading; production and trading of seedlings; and sports and entertainment activities.

Thu An

Source: https://doanhnghiepvn.vn/kinh-te/chung-khoan/lo-luy-ke-gan-nghin-ty-dong-co-phieu-hag-cua-hoang-anh-gia-lai-chua-thoat-dien-canh-bao/20240903051637130