DNVN - After-tax profit in the first half of 2024 was negative by more than VND 957 billion, and shares did not meet the regulations on listing and trading of listed securities, which is the reason why HAG shares of Hoang Anh Gia Lai Joint Stock Company have not "escaped" the warning status of the Ho Chi Minh City Stock Exchange.
On August 30, Ho Chi Minh City Stock Exchange (HoSE) issued a notice to maintain the warning status for HAG shares of Hoang Anh Gia Lai Joint Stock Company (HAGL) according to Decision No. 740 dated October 7, 2022 of HoSE.
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, the shares do not meet the provisions of Point b, Clause 4, Article 37 of the Regulations on listing and trading of listed securities.
Previously, on July 30, HAG issued an official dispatch announcing measures and roadmap to overcome the warning situation of securities.
According to HAGL, the consolidated financial report for the second quarter of 2024 has had positive changes and partly overcome the reason why the stock was put on warning status.
As evidence for this explanation, HAG cited the parent company's after-tax profit in the first 6 months of 2024 as 484 billion VND, and after-tax profit in the first half of this year as 507 billion VND.
HAGL recorded an accumulated loss of VND957 billion in the first 6 months of this year, with short-term debt exceeding short-term assets by VND350.3 billion.
Regarding investment projects: the company focuses on the agricultural sector, including two industries: livestock and crop cultivation with main products being bananas, durian and pigs.
In the first 6 months of this year, the company increased the durian area from 1,500 hectares to 1,947 hectares, while the banana growing area remained at 7,000 hectares.
Regarding finance, HAG said it has completed the private offering of shares and collected VND1,300 billion. Of which, the company has paid the principal and interest of the bonds issued by the company according to the information announcement dated April 25, 2012, applicable to VND300 billion of the face value of the bonds issued on June 18, 2012, maturing on September 30, 2025, and restructured the debts of the subsidiary, reducing interest expenses.
In addition, HAGL will continue to implement financial restructuring measures to further reduce outstanding bank debt, reduce interest expenses and maintain stable cash flow for the company's production and business activities in the context of many market difficulties.
Regarding the business model, in parallel with developing cultivation and operating according to the circular agricultural model, HAGL said it will continue to expand clean land funds, prioritize investment in improving infrastructure, packaging factories, packaging... in the direction of applying advanced technology to improve productivity and product quality.
HAG believes that its business activities will achieve many positive results, gradually reduce and eliminate accumulated losses, and overcome the causes that led to the stock being put on warning status.
However, the business results are not as expected, which is the reason why HAG has not escaped the warning as mentioned above.
On August 29, HAGL sent an official dispatch to the State Securities Commission and HoSE explaining the fluctuations in business results in the consolidated financial statements for the first half of 2024 and 2023.
After-tax profit in the audited consolidated financial report for the first half of 2024 was VND500.1 billion, an increase of VND115 billion over the same period last year.
According to HAG's explanation, gross profit increased by VND 352.1 billion, mainly due to gross profit from fruit trading activities increasing compared to the same period in 2023.
Financial losses decreased by VND120.9 billion, mainly due to a decrease in interest expenses. At the same time, exchange rate differences also decreased compared to the same period in 2023.
Other profits decreased by VND 269.2 billion, mainly due to the profit from the cheap purchase of Bolaven High-Tech Agriculture Company Limited in the first 6 months of 2023. This item did not arise in the same period of 2024.
In the audited consolidated financial statements for the 2024 semi-annual period, the auditors emphasized that the group's accumulated loss was VND957 billion, and the group's short-term debt exceeded its short-term assets by VND350.3 billion. These conditions indicate the existence of a material uncertainty that may cast significant doubt on the group's ability to continue as a going concern.
HAG explained that at the date of the audited consolidated financial statements for the 2024 half-year, the group had prepared 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, and recovery of loans from partners. The group is still in the process of working with lenders to adjust the violated terms of the related loan and bond contracts. 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.
As of June 30, 2024, HAG has 7 direct subsidiaries, 6 indirect subsidiaries, 1 associated company and 4 branches. The main activities of this enterprise are managing investments, trading in materials and machinery and equipment for the cultivation and livestock industries; agricultural services; mechanics, fruit growing and trading; pig farming and trading; production and trading of seedlings; and sports and entertainment activities.
Thu An
Source: https://doanhnghiepvn.vn/kinh-te/chung-khoan/lo-luy-ke-gan-nghin-ty-dong-co-phieu-hag-cua-hoang-anh-gia-lai-chua-thoat-dien-canh-bao/20240903051637130
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