On July 26, the Ho Chi Minh City Stock Exchange (HOSE) announced that HNG shares of Hoang Anh Gia Lai International Agriculture Joint Stock Company (HAGL Agrico) were forced to be delisted because the parent company's after-tax profit was negative for 3 consecutive years in 2021, 2022, 2023, respectively, at VND1,119 billion, VND3,576 billion, and VND1,098 billion. HOSE will delist HNG according to regulations.

HNG has not yet announced its financial report for the second quarter of 2024. In the first quarter, HNG recorded a 26% decrease in net revenue. Operating below cost price plus expenses caused the company to lose 47 billion after tax. This is also the 13th consecutive quarter of loss for the company.

At the end of the first quarter of 2024, HNG had accumulated losses of VND 8,149 billion, resulting in equity of only VND 2,487 billion.

In 2024, HNG plans to have net revenue of VND 694 billion, an increase of 14.5% compared to the level achieved in 2023 and an expected loss after tax for the whole year of VND 120 billion.

Earlier this year, HNG approved a large-scale investment project in fruit tree cultivation combined with cattle breeding in Attapeu and Sekong provinces (Laos).

The project has a total area of ​​27,384 hectares, with an investment capital of up to VND 18,090 billion. Of which, VND 9,650 billion is equity capital and VND 8,440 billion is borrowed capital. The project implementation period is from 2024-2028, with an operating period of 50 years.

HNG will contribute 100% of its equity capital of VND9,650 billion to the project implementation unit, Nam Lao Agricultural Investment and Production and Business Company Limited. The remaining VND8,440 billion in borrowed capital will be mobilized from domestic and foreign banks and credit institutions in accordance with the law.

According to HNG, the above project will grow fruit trees (bananas, mangoes, grapefruits, durians), combine with raising semi-grazed cattle, fattening beef cattle; process fruits; produce fiber; produce organic microbial fertilizers, and biological pesticides.

Regarding the project's prospects, the output of fresh fruit for export is 624,000 tons/year (bananas 500,000 tons/year; pineapples 80,000 tons/year; mangoes 18,500 tons/year; grapefruits 16,000 tons/year; durians 9,500 tons/year). The output of processed fruit for export is 25,000 tons/year.

Regarding livestock, the number of breeding cows provided is 12,000/year, the output of commercial beef for export is 17,000 tons/year.

HNG expects this project to generate revenue of VND13,500 billion/year (equivalent to USD550 million/year) and profit of VND2,450 billion/year (equivalent to USD100 million/year). The profit margin is 18%.

HAGL Agrico was established in 2010, specializing in the agricultural sector of Hoang Anh Gia Lai. In 2021, billionaire Tran Ba ​​Duong joined hands with Bau Duc to acquire HAGL Agrico.

Mr. Duong said that Thaco has spent about 8,000 billion VND. To restructure the entire HAGL Agrico, Thaco had to spend about 12,000 billion VND more. In 2022, Thaco owns 26.7% of shares and operates all production and business activities of HAGL Agrico, which means holding 36,050 hectares in Laos and Cambodia.

In a recent interview, Mr. Tran Ba ​​Duong said that Thaco has taken over the management of HAGL Agrico's projects in Laos and is determined to do large-scale agriculture, aiming for integration and circulation.

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