HAGL Agrico (HNG) was put under control after HAG divested capital.

Hoang Anh Gia Lai (HAG) targets flat profit, completes divestment from HAGL Agrico (HNG)

According to the documents for the 2023 Annual General Meeting of Shareholders scheduled to take place on April 28, 2023 in Ho Chi Minh City, Hoang Anh Gia Lai has planned revenue in 2023 at VND 5,120 billion, unchanged from the previous year. Similarly, the profit plan is also at VND 1,130 billion, not much changed compared to the implementation in 2022.

Regarding the investment and implementation of projects by the end of 2022, HAG said that the fruit industry has completed a total of 7,000 hectares of banana plantations. The pig farming industry has built 10 clusters of barns with a capacity of raising about 600,000 pigs per year.

Hoang Anh Gia Lai, the newly-disbursed HaGL Agrico company, has been put under control. Image 1 — Hoang Anh Gia Lai (HAG) has just divested from HAGL Agrico, HNG shares were immediately put under control (Photo TL)

In 2023, HAG submitted an investment plan to maintain only 7,000 hectares of banana plantations along with 10 clusters of barns with a capacity of 6,000 pigs per year.

At the same time, Hoang Anh Gia Lai has just announced the basic completion of divestment from the Hoang Anh Gia Lai International Agriculture Joint Stock Company - HAGL Agrico (HNG).

Completed divestment from Hoang Anh Gia Lai International Agriculture Joint Stock Company - HAGL Agrico (HNG), HNG shares have just been put under control.

Recently, the Ho Chi Minh City Stock Exchange (HoSE) has just announced the decision to transfer the stock code HNG of Hoang Anh Gia Lai International Agriculture Joint Stock Company - HAGL Agrico from warning status to control status from April 12, 2023.

The reason is that HNG's financial report recorded losses for two consecutive years, 2021 and 2022. Of which, in 2021, the loss was 1,119.4 billion VND and in 2022, the loss was 3,576.4 billion VND. With two consecutive years of losses like this, HNG stock code has been transferred to the controlled form according to state regulations.

Regarding the business results of HAGL Agrico, in the past 4 years, this unit has only recorded 1 profitable year, which is 2020, with a very small profit of only 20.9 billion VND. In the 3 years of 2019, 2021 and 2022, the company's profit after corporate income tax was -2,444.4 billion, -1,119.4 billion, -3,576.5 billion VND, respectively.

By the end of 2022, HAGL Agrico's total accumulated loss had reached VND 7,003 billion, and its short-term debt was also relatively large, up to VND 4,288 billion. Short-term debt exceeding equity also partly reflects the risks in the business operations of this unit. Therefore, it is not too difficult to understand why HAG had to plan to divest from HNG.

In May 2022, Mr. Doan Nguyen Duc himself sold all 3 million HNG shares he was holding through order matching on the stock exchange at an average price of about VND 6,300/share. It is estimated that Mr. Duc earned VND 18,900 after completely divesting from HNG.

Up to now, with poor business results and HAG completing its divestment plan, HNG stock price is only recorded at 4,410 VND/share.

Hoang Anh Gia Lai (HAG) continuously reports profits but still has to ask for a delay in bond debt repayment

Despite Hoang Anh Gia Lai - HAG reporting a profit of up to VND 1,124.7 billion in 2022, and a profit of VND 127.6 billion in 2021, in January 2023, this unit also surprised many investors when it asked to postpone the payment of interest on the bond lot coded HAGLBOND16.26.

In HAG's financial report, net profit from business activities amounted to VND 1,168 billion, but cash flow from business activities was negative by VND 206.4 billion in 2022 alone. This shows that despite profitable business, HAG is still having big trouble with cash flow in business.

Regarding the HAGLBOND16.26 bond lot, HAG had to postpone the payment of this bond lot to the second quarter of 2023. This is a bond lot worth 1,021 billion VND with the principal accounting for 881 billion VND and the interest accounting for 140 billion VND. The reason given is the delay in payment of the debt of Hoang Anh Gia Lai International Agriculture Joint Stock Company - HNG. And as mentioned above, HNG is operating at a loss of up to thousands of billions of VND, and this unit's shares are also under control.

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