On August 30, the Ho Chi Minh City Stock Exchange announced that it would maintain the warning status for HAG shares of Hoang Anh Gia Lai Joint Stock Company (HAGL).
The reason is that HAGL's undistributed profit after tax as of June 30, 2024 is negative VND 957.01 billion based on the audited consolidated financial statements for the first half of 2024.
Therefore, HAG shares do not meet the provisions at Point b, Clause 4, Article 37 of the Regulations on Listing and Trading of Listed Securities issued together with Decision No. 17/QD-HDTV dated March 31, 2022 of the Board of Members of the Vietnam Stock Exchange.
Previously, on August 29, HAGL sent an explanation to the State Securities Commission and the Ho Chi Minh City Stock Exchange about the 2024 semi-annual financial report that was audited by the auditing unit, Ernst & Young Vietnam Co., Ltd.
According to the reviewed consolidated financial report for the first half of 2024, HAGL's after-tax profit is more than VND 500 billion, an increase of more than VND 115 billion over the same period in 2023.
HAGL representative said that the increase in gross profit was mainly due to the increase in fruit trading activities. Meanwhile, financial losses decreased due to lower interest expenses, and exchange rate differences also decreased compared to the same period in 2023.
In the audited consolidated financial statements for the 2024 semi-annual period, the auditor emphasized that HAGL's accumulated loss was more than VND 957 billion and as of June 30, 2024, the group's short-term debt exceeded its short-term assets by more than VND 350 billion.
“These conditions 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.
Explaining this issue, HAGL said that at the date of preparing the audited consolidated financial statements for the 2024 semi-annual period, the group had made a business plan for the next 12 months, including the expected cash flow generated from the liquidation of part of financial investments, liquidation of assets, recovery of loans from partners, money borrowed from commercial banks and operating cash flow generated from ongoing projects.
HAGL said it is still working with lenders to adjust the terms of the loan and bond agreements that have been breached; at the same time, it is negotiating the restructuring of some overdue debts. The pig and banana business will continue to generate large amounts of cash in 2024, so it meets the going concern assumption.
Closing the trading session on August 30, HAG shares decreased by 200 VND compared to the previous session, to 10,650 VND/share.
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