Agricultural company of Bau Duc lost nearly 1,000 billion more

HAGL Agrico suffered a heavy loss due to its ineffective asset assessment and conversion of investment cost for oil palm and rubber trees into fruit trees.

The third quarter financial report of Hoang Anh Gia Lai International Agriculture Joint Stock Company (HAGL Agrico, stock code: HNG) recorded net revenue nearly halved over the same period, to only VND 495 billion. Fruit still accounts for the largest proportion of revenue structure with over 69%, followed by the revenue from selling agricultural materials and rubber.

The management of the company stated that there are three main reasons for the sharp decline in revenue is no longer consolidating the business results of the companies just liquidated, damaged by inundation of more than 1,200 hectares of bananas being harvested in Laos and no revenue from chili, beef, real estate as the previous year.

However, thanks to liquidation of Trung Nguyen, Dong Penh, and Indochina Rubber Group, HAGL Agrico recorded nearly 184 billion dong of financial revenue. This amount helps the company partially offset interest expenses, sales and business management.

Re-evaluating ineffective assets, adjusting the investment cost of oil palm and rubber tree gardens to growing fruit trees is the biggest expense of HAGL Agrico in this period. This is the main reason why the company reported an after-tax loss of approximately VND 990 billion, extending the loss in the 5th quarter in a row.

In the first 9 months, Bau Duc’s agricultural company saw a loss of over 1,740 billion dong after tax, 6 times higher than the same period last year.

Total capital as of the end of the third quarter reached over VND 24,800 billion, of which nearly 58% were debts. Specifically, the company is borrowing VND 5,000 billion from the bank, borrowing two major shareholders, Hoang Anh Gia Lai Joint Stock Company and Truong Hai Auto Joint Stock Company (Thaco), respectively VND 2,520 billion and VND 1,520 billion. .

Negative business data but shared at the one-year anniversary of Thaco pouring capital into Hoang Anh Gia Lai in early September, Bau Duc said that the good cooperation in the past year between the two businesses helped HAGL Agrico escape. the situation of “a thousand pounds hanging from the hair” and at the same time entering a new and more stable development stage. In addition to financial support, irrigation planning, mechanization solutions for planting, tending and harvesting, Thaco has also invested heavily in logistics and distribution in this cooperation.

Regarding management, with the role of a major shareholder holding 35% of the shares, Thaco has assisted the company in a comprehensive restructuring, adding leadership personnel to the Board of Directors and the Board of Directors to participate in the same thing. onions.