Hoang Anh Gia Lai reported a 47% increase in August revenue, but the accumulated loss of nearly 3,000 billion is still a big pressure.
Hoang Anh Gia Lai Joint Stock Company (HAG) announced its business results for August with revenue reaching 660 billion VND, an increase of about 47% over the same period. In HAG's revenue structure, the livestock industry brought in 182 billion VND, fruit trees reached 338 billion VND, and the supporting industry 140 billion VND.
The consumption output of each typical industry includes the livestock industry with 32,584 pigs for meat, and the fruit industry with 30,900 tons of bananas in August. Hoang Anh Gia Lai also expects revenue and banana consumption output to increase sharply in the fourth quarter of 2023.
Hoang Anh Gia Lai (HAG) reported a 47% increase in August revenue. However, the accumulated loss of 3,000 billion VND is still a big problem for this unit (Photo TL)
Although Hoang Anh Gia Lai has continuously reported quarterly profits with recorded profits of hundreds of billions of VND, recently the auditors have expressed doubts about its ability to continue operating.
Specifically, HAG's semi-annual revenue after audit reached VND3,144.9 billion, a slight decrease compared to the same period. Financial expenses and business management expenses both increased after audit, causing profit after corporate income tax to decrease by 5%, to VND385 billion.
HAG's audited revenue increased by 55% over the same period, profit after tax decreased by 26% compared to the first half of 2022.
However, the Auditor specifically noted the accumulated loss of VND2,959.4 billion of Hoang Anh Gia Lai. Along with that, the group's short-term debt exceeded its short-term assets by VND2,004 billion. This led to the Auditor's doubts about the group's ability to continue operating.
Is it feasible for HAG to raise an additional 1,300 billion to pay off debt?
To address its financial needs, earlier on August 10, 2023, Hoang Anh Gia Lai closed the list of shareholders to get written opinions on the issuance of individual shares.
This private share issuance plan will be implemented with the issuance quantity of 130 million shares. The offering price will be 10,000 VND/share for professional securities investors. The expected implementation time is after being approved by the State Securities Commission.
If the issuance is successful, HAG will collect about 1,300 billion VND. It is expected that the company will use 323 billion VND to pay the principal and interest of the HAG 2012,300 bond lot that was issued by Hoang Anh Gia Lai since June 18, 2012.
VND277 billion will be used to restructure loans at Tien Phong Commercial Joint Stock Bank. This loan was originally for Lo Pang Cattle Joint Stock Company, one of Hoang Anh Gia Lai's subsidiaries.
With the remaining 700 billion VND, Hoang Anh Gia Lai plans to use it to restructure the debt of Hung Thang Loi Gia Lai Company Limited, which is also a subsidiary of Hoang Anh Gia Lai.
Regarding this issuance plan of Hoang Anh Gia Lai, it is noted that in the last 3 months, only on August 8, 2023, HAG stock code was traded at a price of VND 9,810/share. In addition, HAG code has never exceeded the par value of VND 10,000/share.
In the most recent trading session on September 21, 2023, HAG code was only traded at VND 8,520/share. This makes the plan to issue 130 million individual shares at VND 10,000/share even more distant.
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