Mr. Duc's company has made huge profits but is still being questioned by auditors about its ability to continue operating - Photo: HAG
Mr. Duc's company made a profit of 500 billion, why do auditors still doubt its ability to continue operating?
In the 2024 semi-annual financial report, Hoang Anh Gia Lai Joint Stock Company (HAGL, stock code: HAG) - where Mr. Doan Nguyen Duc (Bau Duc) is chairman - recorded revenue of more than VND 2,795 billion, down more than 11% over the same period.
Thanks to the decrease in cost of goods sold, HAGL's gross profit in the period increased from 628 billion VND in the same period last year to more than 980 billion VND this year. As a result, the company's net profit in the first 6 months of this year reached more than 500 billion VND, an increase of nearly 30% over the same period.
This profit level helps HAGL narrow its accumulated loss from more than 1,669 billion VND at the beginning of this year to only 957 billion VND at the end of June.
However, this large accumulated loss is still an issue that needs to be emphasized when E&Y auditors review the report.
According to the audit, in addition to large accumulated losses, HAGL's short-term debt also exceeded short-term assets by more than 350 billion VND.
These conditions, along with other matters, indicate the existence of a material uncertainty that may cast significant doubt about the group's ability to continue as a going concern, the auditors stressed.
The above outstanding loan balance only includes short-term and long-term loans shown in Hoang Anh Gia Lai's financial statements.
Explaining the auditor's opinion to the Securities Commission, Mr. Nguyen Xuan Thang - General Director of HAGL, said that the group has made a business plan for the next year.
In which, cash flow is expected to be generated from liquidating part of financial investments, liquidating assets, and recovering loans from partners.
In addition, HAGL also said it has cash flow from borrowing from commercial banks and money from ongoing projects.
The Group is still in the process of working with lenders to adjust the breached terms of the relevant loan and bond agreements. At the same time, the company is negotiating the restructuring of some overdue debts.
"The business of pork and bananas will continue to generate large amounts of money in 2024," said the general director of HAGL.
In addition to borrowing, HAGL is also a major creditor of other companies.
According to the financial statement explanation, bond debt still accounts for the majority of the loan structure of Mr. Duc's company.
At the end of June 2024, HAGL still owed BIDV VND 4,248 billion through the bond channel, down VND 423 billion compared to the beginning of the year. In addition, this company had loans from LPBank of more than VND 1,528 billion, double the beginning of the year.
On the contrary, the debt at TPBank and Sacombank has tended to decrease significantly, only 459 billion VND and 278 billion VND respectively.
Not only is Mr. Duc's company in debt, in fact, he also has a large loan from HAGL Agrico. This company was formerly Hoang Anh Gia Lai Rubber Joint Stock Company, then transferred to the company of Mr. Tran Ba Duong - Chairman of Thaco.
After a period of overlapping relationships, by August 2022, HAGL Agrico chaired by Mr. Tran Ba Duong and Hoang Anh Gia Lai chaired by Mr. Duc committed to separating mortgaged assets and debt repayment obligations to BIDV.
At the end of June 2024, HAGL Agrico's financial report still recorded that it was borrowing VND 1,123 billion from Mr. Duc's HAG.
Source: https://tuoitre.vn/cong-ty-bau-duc-la-chu-no-nghin-ti-cua-cong-ty-cu-20240831091029128.htm
![[Photo] Prime Minister Pham Minh Chinh chairs Government Conference with localities on economic growth](https://vstatic.vietnam.vn/vietnam/resource/IMAGE/2025/2/21/f34583484f2643a2a2b72168a0d64baa)
Comment (0)