Earning thousands of billions from selling fruit, Mr. Duc still has to sell assets to pay off debt

Hoang Anh Gia Lai Joint Stock Company (code HAG) of Mr. Doan Nguyen Duc (Bau Duc) has just announced its financial report for the third quarter of 2023 with revenue increasing by 31% over the same period, reaching 1,889 billion VND.

Of which, revenue from the fruit segment increased by 74%, reaching 1,005 billion VND. Revenue from beef increased 2.5 times, reaching 15 billion VND. However, the pork sales segment alone decreased by 9%, reaching only over 491 billion VND.

Regarding financial activities, this quarter, HAG recorded a decrease in revenue of VND 83 billion, equivalent to a decrease of 70% compared to the third quarter of 2022. Meanwhile, financial expenses increased by nearly 40% over the same period, equivalent to VND 66 billion. The main reason in this period was that HAG did not have a reversal of long-term investment provisions.

HAG's other income in the period increased by VND 151 billion compared to the same period in the third quarter of 2022, reaching VND 154 billion. The main reason is that in the third quarter of 2023, HAG liquidated a number of assets.

Due to the loss of some items, HAG's net profit in the third quarter of 2023 decreased by 11% year-on-year to more than VND320 billion.

With the results after the first 9 months of 2023, HAG has only achieved 63% of the full-year after-tax profit plan of VND 1,130 billion.

As of September 30, 2023, HAG's total debt amounted to nearly VND16,000 billion, up 9% compared to the beginning of the year. Of which, trade payables and short-term payables were the two items with the strongest increase, increasing 2.3 times and 11% compared to the beginning of the year, respectively, to more than VND1,200 billion and VND4,300 billion.

Regarding the roadmap to overcome the stock warning situation, HAG said that the company is still in the process of liquidating financial investments, recovering debts from partners and liquidating unprofitable assets, bringing stable cash flow for production and business activities.

HAG believes that upcoming business activities will achieve good results and eliminate accumulated losses.

At the end of the trading session on October 31, HAG shares reached 8,030 VND/share.

Mr. Doan Nguyen Duc's younger brother wants to divest all capital at Hoang Anh Gia Lai. Mr. Doan Nguyen Duc's younger brother, Chairman of the Board of Directors, has just registered to sell all HAG shares, divest all capital from Hoang Anh Gia Lai Group.

Source