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 VND 78.8 billion. Meanwhile, the cost of goods sold amounted to VND 350.2 billion, an increase of 76% compared to the same period last year.

Selling below cost resulted in HNG reporting a gross loss of VND 271.4 billion, nearly six times higher than the gross loss in Q2/2023. Simultaneously, HNG also reported a net loss of VND 325.5 billion, marking its 13th consecutive quarter of losses.

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 VND 45.8 billion in the second quarter, a decrease of 59% compared to the same period last year. The rubber tree segment also only brought in VND 31.9 billion due to a shortage of rubber tapping workers.

In Q2 2024, financial income was HNG's main source of revenue, increasing 3.4 times compared to the same period last year, reaching VND 39 billion. However, financial expenses also amounted to VND 86.5 billion, with the majority being interest expenses.

Operating expenses at the affiliated company generated 2.1 billion VND, a decrease of half compared to the same period last year. A notable highlight is the reduction in both selling expenses and administrative expenses, down to 1.9 billion and 7.5 billion VND respectively.

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

Including Q2/2024, HAGL Agrico has recorded its 13th consecutive quarter of losses. The peak was in Q4/2022, when HNG reported a loss of up to VND 2,793 billion. Subsequent quarters saw consecutive losses of hundreds of billions of VND.

As of the end of Q2/2024, 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 this, cash reserves amounted to only VND 16 billion, with no significant deposits remaining.

The majority of the company's assets are in the form of fixed assets, long-term work-in-progress assets from unfinished construction costs, and long-term receivables. This means that HNG's asset structure is facing a major problem regarding flexibility.

In terms of capital structure, liabilities amount to VND 13,162 billion, while equity stands at only VND 2,387 billion. In fact, the initial equity contribution was VND 11,085 billion, but accumulated losses of VND 8,472 billion have almost completely wiped out 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) announced the mandatory delisting of HAGL Agrico's HNG stock code due to three consecutive years of losses. In 2021, the company lost 1,119 billion VND, in 2022 it lost an additional 3,576 billion VND, and in 2023 it lost 1,098 billion VND.

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

Previously, HAGL Agrico was a key company within the ecosystem of Hoang Anh Gia Lai Joint Stock Company (HAG) and was closely 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, even thousands of billions of dong, wiping out almost all of its equity capital.

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