After 3 consecutive years of losses, HAGL Agrico was forced to delist.
Recently, the Ho Chi Minh City Stock Exchange (HoSE) has just forced the delisting of several stock codes, including the code HNG of Hoang Anh Gia Lai International Agriculture Joint Stock Company - HAGL Agrico (Code: HNG).
Accordingly, HAGL Agrico, chaired by businessman Tran Ba Duong, has recorded losses for three consecutive years. Specifically, in 2021, the company lost VND 1,119 billion, in 2022 it lost another VND 3,576 billion, and in 2023 it lost VND 1,098 billion.
HAGL Agrico's HNG shares were delisted due to losses for 3 consecutive years. The company's accumulated losses also reached 8,149 billion (Photo TL)
Currently, HNG shares are also under control. At the trading session on July 26, 2024, HNG code is priced at VND 4,660/share.
Operating in the core fields of rubber and fruit trees, HAGL Agrico used to be an important member of Hoang Anh Gia Lai Joint Stock Company, associated with the name of businessman Doan Nguyen Duc.
By 2021, the position of Chairman of the Board of Directors of the company was transferred to Mr. Tran Ba Duong, while Mr. Doan Nguyen Duc held the position of Vice Chairman. Since then, HAGL Agrico has continuously recorded losses of thousands of billions each year. Owners' equity has also been significantly eroded.
How is HAGL Agrico doing business?
After 3 years of losses, HAGL Agrico has set a relatively modest target for 2024. Target revenue is only 694 billion VND, up 14.5% compared to the previous year. Along with that is the target of reducing after-tax loss to only 120 billion VND.
In the first quarter of 2024, HAGL Agrico recorded net revenue of VND 93.5 billion. However, the cost of goods sold accounted for VND 98.5 billion, causing the company to suffer a gross loss of more than VND 5 billion.
Financial revenue reached 24.2 billion while financial expenses accounted for 67 billion. Interest expenses were also recorded at a high level of 62.7 billion, creating a large financial burden for HNG.
After deducting other expenses and taxes, HNG reported a loss after tax of VND47.1 billion. Compared to the same period, this loss has decreased more than 24 times.
Compared to the plan set at the beginning of the year, HAGL Agrico recorded a higher loss than expected, equivalent to 39.3% of the year's loss plan.
Low cash flow, accumulated loss of 8,149 billion eroded almost all equity
Regarding HNG's asset structure, at the end of the first quarter of 2024, the company recorded only 6.2 billion VND in cash. Compared to the beginning of the year, the amount of cash has decreased more than 12 times.
Meanwhile, short-term receivables increased more than 3 times, from 600 billion to 1,965 billion. Most of which are short-term receivables from customers, showing that HNG has 1,823 billion that has not been collected from customers.
Inventory decreased sharply compared to the beginning of the year, from 1,880.8 billion to only 1,085.2 billion VND, equivalent to a decrease of 42.3%.
In the capital structure, payables account for 11,759.8 billion VND. Most of which is short-term debt with 9,143.9 billion. Short-term debt also accounts for 6,259 billion VND while long-term debt accounts for 2,543.3 billion.
The original owner's equity was VND 11,085.5 billion, but has now been almost completely eroded by the accumulated loss of VND 8,149 billion. As a result, the owner's equity is only recorded at VND 2,487.2 billion.
Source: https://www.congluan.vn/lo-luy-ke-hon-8000-ty-hagl-agrico-hng-vua-bi-huy-niem-yet-bat-buoc-post305153.html
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