HAGL Agrico (HNG) is forced to delist
Ho Chi Minh City Stock Exchange (HoSE) has just announced the mandatory delisting of shares of Hoang Anh Gia Lai International Agriculture Joint Stock Company - stock code HNG.
The reason is that HNG has suffered losses for 3 consecutive years. In 2021, HAGL Agrico recorded a loss of 1,119.4 billion VND, by 2022, the loss increased to 3,576.5 billion VND and in 2023, a loss of 1,098.5 billion VND.
According to Article 120 of Decree No. 155/2020/ND-CP dated December 31, 2020, the regulations on delisting of public company shares: "Production and business results are loss-making for 3 consecutive years, or the total accumulated loss exceeds the actual contributed charter capital, or the owner's equity is negative in the audited financial statements of the most recent year before the time of review", the State Securities Commission has issued an official dispatch on the consideration of mandatory delisting of HNG shares.
At the end of the trading session on July 26, HNG was at VND 4,660/share, up 0.43% compared to the previous session, the company's capitalization reached VND 5,165.9 billion.
After being delisted, HNG shares will be traded on UPCoM. To be relisted on HoSE, HAGL Agrico must have profits for 2 consecutive years before it can apply for registration.
HAGL Agrico was established in 2010, when Mr. Duc restructured Hoang Anh Gia Lai, operating in the agricultural sector with two main areas: rubber and fruit growing. (Photo: HNG)
In 2024, HAGL Agrico plans to have net revenue of 694 billion VND, an increase of 14.5% compared to the level achieved in 2023. The company expects a loss after tax for the whole year of 120 billion VND.
Most recently, in the first quarter of 2024, HAGL Agrico recorded a 26% decrease in net revenue compared to the same period, reaching VND93 billion. Operating below cost price plus expenses caused the company to lose VND47.1 billion after tax, a significant decrease compared to the loss of VND112 billion in the first quarter of 2023.
Determined to make a profit by 2025
Hoang Anh Gia Lai Rubber Joint Stock Company was decided to be established when Hoang Anh Gia Lai Joint Stock Company implemented the restructuring program in 2010. In April 2015, the company changed its name from Hoang Anh Gia Lai Rubber Joint Stock Company to Hoang Anh Gia Lai International Agriculture Joint Stock Company (HAGL Agrico), and merged with Tay Nguyen Dairy Cow Joint Stock Company to expand its business activities. Officially listed on HOSE on July 20, 2015.
HAGL Agrico's agricultural projects are concentrated in three countries: Vietnam - Laos - Cambodia.
Regarding business prospects, HAGL Agrico leaders said that HNG has now developed a development model, the next task is how to manage operations to make a profit. HAGL Agrico hopes that by 2025 it will have stable revenue and start making a profit. When it makes a profit, it will be able to re-list on HoSE.
In 2024, HAGL Agrico aims to plant 1,533 hectares of new bananas, invest in 7 cow breeding farms, 1 cluster of bedding and organic fertilizer production, 1 cluster of raw material warehouses, import 5,800 cows for livestock organization, plant 468 hectares of new grass for sale and 127 hectares of concentrated grass.
Renovating and leveling banana plantations and cow farms with a total area of 3,500 hectares, investing in workers' housing, construction vehicles, tractors and industrial equipment, investing in water channels...
Total investment expected for the whole year is 1,574 billion VND.
Regarding financial targets, HAGL Agrico set a revenue target of VND694 billion, up 15% compared to last year. The target for after-tax profit is a loss of VND120 billion, extending the streak of 4 consecutive years of losses, but the loss has narrowed significantly compared to previous years.
Reporting on the large-scale agricultural investment project for the period 2024-2028, HAGL Agrico leaders want to plan a specialized fruit tree growing area of up to 10,000 hectares (including 8,000 hectares of bananas and 2,000 hectares of pineapples).
Planning area for cattle breeding combined with fruit tree planting up to 14,000 hectares (including 5,000 hectares of fruit trees including mango, grapefruit, durian and herd size of 210,000 cows).
Total investment capital is 18,090 billion VND (about 750 million USD). Investment progress from 2024 to 2028.
Accordingly, by 2025-2028, the company plans to export 624,000 tons of fresh fruit per year, 25,000 tons of processed fruit per year, 12,000 breeding cattle per year and 17,000 tons of commercial beef per year.
The expected efficiency by 2025-2028 will reach revenue of 13,500 billion VND (equivalent to 550 million USD) and will have a profit of 2,450 billion VND (about 100 million USD).
Source: https://danviet.vn/nong-nghiep-hagl-agrico-quyet-tam-co-lai-tu-nam-2025-20240727150137421.htm
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