On August 30th, the Ho Chi Minh City Stock Exchange announced that it would maintain the warning status for HAG shares of Hoang Anh Gia Lai Joint Stock Company (HAGL).
The reason is that HAGL's undistributed after-tax profit as of June 30, 2024 was negative VND 957.01 billion, based on the audited consolidated semi-annual financial statement for 2024.
Therefore, HAG shares do not meet the requirements of point b, clause 4, Article 37 of the Regulations on Listing and Trading of Listed Securities issued together with Decision No. 17/QD-HDTV dated March 31, 2022, of the Board of Members of the Vietnam Stock Exchange.
Previously, on August 29th, HAGL submitted an explanation to the State Securities Commission and the Ho Chi Minh City Stock Exchange regarding its 2024 semi-annual financial report, which had been audited by Ernst & Young Vietnam Co., Ltd.
According to the audited consolidated semi-annual financial report for 2024, HAGL's after-tax profit was over 500 billion VND, an increase of more than 115 billion VND compared to the same period in 2023.
A representative from HAGL stated that the increase in gross profit was mainly due to the growth in fruit business operations. Losses from financial activities decreased because of reduced interest expenses and lower exchange rate losses compared to the same period in 2023.
In the audited consolidated semi-annual financial report for 2024, the auditors highlighted HAGL's accumulated losses of over VND 957 billion, and noted that as of June 30, 2024, the group's short-term liabilities exceeded its short-term assets by more than VND 350 billion.
"These conditions indicate the existence of material uncertainties that could lead to substantial doubt about the Group's ability to continue as a going concern," the auditors emphasized.
In explaining this issue, HAGL stated that as of the date of the audited consolidated semi-annual financial report for 2024, the group had prepared a business plan for the next 12 months, including projected cash flow from the partial liquidation of financial investments, asset liquidation, recovery of loans from partners, borrowings from commercial banks, and operating cash flow generated from ongoing projects.
HAGL stated that it is still working with lenders to adjust the violated terms of related loan and bond agreements; at the same time, negotiating the restructuring of some overdue debts. The pig and banana businesses are expected to continue generating significant cash flow in 2024, thus meeting the going concern assumption.
At the close of trading on August 30, HAG shares fell by 200 dong compared to the previous session, to 10,650 dong per share.
All three tycoons from the mountainous region are in trouble: Chairman Duc is hoping for a billionaire, one has been arrested, and another has sold everything . These three tycoons were once prominent figures in the real estate and stock markets. However, Quoc Cuong Gia Lai (owned by businessman Cuong Do La), Hoang Anh Gia Lai (owned by Chairman Duc), and Duc Long Gia Lai are all facing difficulties.
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