HAGL Agrico lost another 323 billion VND in the second quarter of 2024
Hoang Anh Gia Lai International Agriculture Joint Stock Company - HAGL Agrico (Code: HNG) has just announced its Q2 business results with revenue falling 48% to only 78.8 billion VND. Meanwhile, cost of goods sold accounted for 350.2 billion VND, up 76% over the same period.
Operating below cost price caused HNG to report a gross loss of VND271.4 billion, nearly 6 times higher than the gross loss in the second quarter of 2023. At the same time, HNG also suffered a loss after tax of VND325.5 billion, marking the 13th consecutive quarter of losses for this unit.
Losing an additional 323 billion in the second quarter of 2024, billionaire Tran Ba Duong's HNG has accumulated losses of more than 8,472 billion VND (Photo TL)
According to HNG, the reason for the loss was that the fruit tree segment recorded revenue of VND45.8 billion in the second quarter, down 59% compared to the same period last year. The rubber tree segment also only brought in VND31.9 billion due to a lack of latex tapping workers.
In the second quarter of 2024, financial revenue was HNG's main source of revenue, increasing 3.4 times over the same period, reaching 39 billion VND. However, financial expenses also accounted for 86.5 billion, mostly interest expenses.
Activities at the affiliated company brought in 2.1 billion VND, down by half compared to the same period. Notably, sales expenses and business management expenses were both reduced, to 1.9 billion and 7.5 billion VND respectively.
13 consecutive quarters of losses, total accumulated loss up to 8,472 billion
Including the second quarter of 2024, HAGL Agrico has had its 13th consecutive quarter of loss. The peak was in the fourth quarter of 2022, when HNG reported a loss of up to VND 2,793 billion. The following quarters were consecutively recorded losses of hundreds of billions of VND.
By the end of the second quarter of 2024, HAGL Agrico recorded total assets of VND 15,549 billion, an increase of nearly VND 1,500 billion compared to the beginning of the year. Of which, the remaining cash amount was only VND 16 billion, in addition, there were no significant deposits.
Most of the company's assets are in the form of fixed assets, long-term unfinished assets from unfinished construction costs and long-term receivables. This means that HNG's asset structure is facing a big problem in terms of flexibility.
In the capital structure, liabilities account for 13,162 billion VND. Meanwhile, the remaining equity is only 2,387 billion VND. In fact, the initial equity was 11,085 billion VND, but the accumulated loss of 8,472 billion VND has almost "blown away" all of HNG's equity.
HNG shares have also just been forced to delist.
13 quarters of losses equivalent to more than 3 consecutive years without a single profit, recently Mr. Tran Ba Duong's HNG was forced to delist.
Specifically, the Ho Chi Minh City Stock Exchange (HoSE) has announced the mandatory delisting of HAGL Agrico's code HNG due to three consecutive years of losses. In 2021, the company lost 1,119 billion, in 2022 it lost another 3,576 billion and in 2023 it lost 1,098 billion VND.
HNG shares are also under control. As of July 31, 2024, HNG shares are only 3,910 VND/share.
Previously, HAGL Agrico was an important company in the ecosystem of Hoang Anh Gia Lai Joint Stock Company (HAG) and was associated with the name of businessman Doan Nguyen Duc. However, since 2021, the position of Chairman of the Board of Directors has been transferred to Mr. Tran Ba Duong, while Mr. Duc holds the position of Vice Chairman. Since then, HAGL Agrico has continuously recorded losses of hundreds, even thousands of billions of VND, wiping out almost all of its equity.
Source: https://www.congluan.vn/vua-bi-huy-niem-yet-hagl-agrico-hng-cua-ong-tran-ba-duong-lai-lo-them-323-ty-dong-post305643.html
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