Hoang Anh Gia Lai Agricultural Joint Stock Company (HAGL Agrico, code: HNG) has just held the 2025 Annual General Meeting of Shareholders to approve the 2025 plan, with expected net revenue reaching VND 1,088 billion, 2.2 times higher than the 2024 result.
However, the company expects a pre-tax loss of VND854 billion, while last year it lost VND1,282 billion.
In the fruit segment, of which the main crop is bananas, it is expected to contribute 595 billion VND in revenue and bring in 182 billion VND in profit for the company.
The rubber segment is expected to contribute 444 billion VND in revenue, 183 billion VND in profit, and cattle farming is expected to bring in 45 billion VND in revenue.
At the meeting, some shareholders expressed concern that transactions in recent years between HAGL Agrico and Thaco Agri showed that the company was selling goods below cost, affecting the interests of the shareholders themselves.
Mr. Tran Ba Duong, Chairman of HAGL Agrico. Photo: HNG
Mr. Tran Ba Duong, Chairman of the Board of Directors of HAGL Agrico, said that HAGL Agrico is "clinically dead" and Thaco is trying to save it.
According to Mr. Tran Ba Duong, the reason is because HAGL Agrico's South Laos project needs a legal sales contract to be able to operate.
“HAGL Agrico is selling directly to outside parties and sometimes through Thaco Agri to get money and contracts,” said Mr. Duong.
Chairman Tran Ba Duong also said that Thaco is currently owing HAGL Agrico 12,000 billion VND, so it cannot let the borrower "die", because then Thaco cannot collect the debt. He also affirmed that Thaco Agri does not depend on HAGL Agrico.
Responding to the issue that shareholders are most concerned about at the moment, which is when HAGL Agrico will stop losing money, Mr. Tran Ba Duong said that the loss in 2025 will mainly come from converting orchards and depreciation. This depreciation is a burden because it does not reflect the true value of assets that can generate profits.
It is expected that by 2026, HAGL Agrico will have about 3,000 hectares of bananas. If it does well and increases the area, it will bring positive results.
HAGL Agrico's banana sector. Photo: HNG
In addition, financial costs are also a burden for HAGL Agrico. Currently, this enterprise has a debt of 15,000 billion VND. Of which, bank debt is only about 1,200 billion, while Thaco has to "shoulder" 12,000 billion VND.
“We are trying to clear this backlog by 2025,” Mr. Duong pledged.
Regarding the merger of Thaco Agri and HAGL Agrico - two related companies with the same chairman, Mr. Tran Ba Duong, Mr. Duong said that HAGL Agrico shares are currently held by Thaco. In the near future, this capital will be transferred to Thaco Agri. However, he affirmed that there are no plans to merge the two businesses.
Despite heavy accumulated losses, the 2025 business plan also forecasts a pre-tax loss of VND854 billion, but HAGL Agrico has not thought about increasing capital or finding new investors.
“Currently, the company still has about 1,600 billion VND in equity, but accumulated losses are still high, and it is using loans from Thaco to operate. However, the company is not thinking about increasing capital because it does not see it as really necessary,” said Mr. Duong.
Source: https://vietnamnet.vn/ty-phu-tran-ba-duong-thaco-dang-no-luc-cuu-hagl-agrico-de-doi-12-000-ty-dong-2395164.html
Comment (0)