HAGL Agrico (HNG) aims to 'only' lose 2.3 trillion in 2023

The 2023 target of Hoang Anh Gia Lai International Agriculture Joint Stock Company (HNG) is only a loss of 2,300 billion VND.

According to documents announced at the 2023 Annual General Meeting of Shareholders of Hoang Anh Gia Lai International Agriculture Joint Stock Company (Code HNG), the company announced its 2022 business results and goals for 2023.

Accordingly, in 2022, the company recorded net revenue of only 742 billion VND. Of which, fruit revenue brought in 494 billion VND, rubber brought in 234 billion VND. Pre-tax profit lost up to 3,566 billion VND.

hagl agrico aims to achieve revenue of only 23 trillion in 2023 image 1 — HAGL Agrico (HNG) targets a loss of 2.3 trillion in 2023, accepting the possibility of being delisted (Photo TL)

With the target in 2023, the company plans to have revenue of 1,282 billion VND, with the majority of revenue coming from fruit trees, accounting for 943 billion VND, rubber trees bringing in 339 billion VND. The target pre-tax profit is "only" a loss of 2,316 billion VND.

Previously, in 2021, the company also recorded a loss of VND 1,119 billion. Thus, with the business results and targets set for 2023, the company is expected to suffer a loss for the third consecutive year.

On April 5, 2023, Ho Chi Minh City Stock Exchange decided to transfer HNG shares from warning status to control status due to the company's losses for 2 consecutive years.

If the company continues to make losses in 2023, it will likely be forced to delist. Regarding this issue, the Chairman of HNG said that the company accepts losses in 2023 and accepts delisting to create a foundation for a stronger comeback in the following years.

HNG paid HAG 500 billion VND to pay off bond debt in the second quarter, receiving back 10 thousand hectares of land in Laos

One of the issues that shareholders are concerned about is the debt between HNG and HAG, which is also informed to shareholders. Accordingly, the agreement between the three parties HNG - HAG - BIDV will be carried out in the second quarter of 2023.

HNG will work with BIDV to complete the procedures to receive back 10 thousand hectares of land in Laos. To receive back this land, HNG will have to pay HAG 500 billion VND so that HAG can repay BIDV bond debt. In addition, because the 10 thousand hectares are jointly owned with the loan that HNG borrowed from BIDV Gia Lai, this debt must be paid off as well.

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