Chairman Doan Nguyen Duc's daughter registered to buy 2 million Hoang Anh Gia Lai shares

Having just sold 2 million shares, Chairman Doan Nguyen Duc's daughter has returned to register to buy the shares of Hoang Anh Gia Lai Joint Stock Company (code HAG - HoSE floor) that were just sold.

Ms. Doan Hoang Anh, daughter of Mr. Doan Nguyen Duc, Chairman of the Board of Directors, registered to buy 2 million HAG shares, increasing her ownership from 9 million shares (0.97% of charter capital) to 11 million shares (1.19% of charter capital). The transaction is expected to take place from April 19 to May 18.

With the closing price of the April 12 trading session at VND13,400/share, it is estimated that Ms. Doan Hoang Anh will spend about VND26.8 billion to buy an additional 2 million shares.

Previously, on January 19, 2024, Ms. Doan Hoang Anh bought an additional 1 million HAG shares to increase her ownership from 1.08% to 1.19% of charter capital (the closing stock trading session on January 19 was 13,700 VND).

On the contrary, on February 15, 2024, Ms. Doan Hoang Anh sold 2 million HAG shares to reduce her ownership from 11 million shares (1.19% of charter capital) to 9 million shares (0.97% of charter capital). In which, the share price on February 15 was VND 13,450/share.

Auditors continue to doubt Hoang Anh Gia Lai's ability to continue operations

Previously, Hoang Anh Gia Lai announced the 2023 Audited Report, the Report was audited by Ernst & Young Vietnam Co., Ltd.

At the end of 2023, Hoang Anh Gia Lai recorded revenue of VND 6,442.4 billion, up 26.1% over the same period, and the parent company's after-tax profit recorded a profit of VND 1,663.97 billion, up 47.4% over the same period. In which, the gross profit margin decreased from 23% to 20.1%.

Notably, the profit recorded in 2023 was mainly due to a decrease in financial expenses of VND 1,864.53 billion, to a negative VND 215.43 billion. In particular, the Company explained that the interest expense was exempted by VND 1,424.7 billion (not recorded in the same period), this is the exemption of interest and principal of the loan of the subsidiary Gia Lai Livestock Joint Stock Company at the Vietnam Export Import Commercial Joint Stock Bank (Eximbank).

Although making a profit in 2023, as of December 31, 2023, Hoang Anh Gia Lai still had an accumulated loss of VND 1,669.17 billion, equal to nearly 18% of charter capital.

In addition, despite increased profits in 2023, the auditor, Ernst & Young Vietnam Co., Ltd., still has issues that need to be emphasized in Hoang Anh Gia Lai's Financial Statements.

The auditor emphasized that as of December 31, 2023, Hoang Anh Gia Lai had an accumulated loss of more than VND 1,669.2 billion and also at the end of 2023, Hoang Anh Gia Lai's short-term debt exceeded short-term assets by VND 941.9 billion.

“These conditions indicate the existence of a material uncertainty that may cast significant doubt about Hoang Anh Gia Lai's ability to continue as a going concern,” Ernst & Young Vietnam Co., Ltd. emphasized in Hoang Anh Gia Lai's 2023 Audit Report.

Responding to the auditor's doubts, Hoang Anh Gia Lai said that at the date of preparing the audited consolidated financial statements for 2023, the Company had planned for the next 12 months including expected cash flows generated from liquidating part of financial investments, debt collection from partners, issuing private shares to shareholders, money borrowed from commercial banks and cash flows generated from ongoing projects.

In 2023, Hoang Anh Gia Lai has fully paid off a number of long-term loans and has received a large reduction in interest payments. Currently, Hoang Anh Gia Lai is in the process of working with lenders to adjust the violated terms of the related loan and bond contracts, and negotiate the restructuring of a number of overdue debts.

In addition, pork and banana businesses will continue to generate large amounts of cash in 2023. Cash from private placements will also help Hoang Anh Gia Lai reduce financial pressure when used to pay off some loans and bonds; and at the same time, supplement working capital to develop production and business activities.

In addition, on March 4, 2024, Hoang Anh Gia Lai signed a contract to receive funding from Lien Viet Post Joint Stock Commercial Bank (LPBank) with a total funding limit of VND 5,000 billion, to invest in green agriculture. The disbursed money will be used to promote investment in new planting, care and development of Hoang Anh Gia Lai's 3 key products including bananas, durian and pig farming.

For the above reasons, Hoang Anh Gia Lai expects to be able to repay due debts and continue operating in the following accounting periods.

Postponement of 2024 Annual General Meeting of Shareholders

Another noteworthy point, Hoang Anh Gia Lai also announced the Resolution of the Board of Directors and documents for the 2024 Annual General Meeting of Shareholders.

Accordingly, Hoang Anh Gia Lai resolved to approve the extension and determine the time to hold the 2024 Annual General Meeting of Shareholders on May 10, 2024, instead of in April as previously announced.

The reason for the extension is that Hoang Anh Gia Lai needs more time to plan strategies according to the new situation and make appropriate plans for 2024.

In the upcoming Congress, Hoang Anh Gia Lai plans to announce the content of the Congress including the 2023 Business Performance Report, 2024 Business and Investment Plan, 2023 and 2024 Profit Distribution Plan...

Source