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Mr.Duc's agricultural company lost nearly 650 billion dong

Saturday - 02/02/2019 21:02
Turnover reached VND 3,700 billion, but the increase in selling and liquidation expenses caused HNG to lose VND 646 billion.
Hoang Anh Gia Lai International Agricultural Joint Stock Company (stock code: HNG), chaired by Mr. Doan Nguyen Duc (Bau Duc), announced the fourth quarter of 2018 consolidated financial statements with a loss scenario, although its revenue is on the rise.

In the fourth quarter of 2018, the company's net revenue reached more than 890.6 billion, up 38% compared to the same period last year but the gross profit was very modest, only reached 200 billion VND. In the last 3 months of 2018, sales from rubber latex increased 4 times compared to the same period last year, reaching more than VND 221 billion, but this segment was still ineffective because the cost of capital reached more than VND 231 billion Charge to eat up on profits. The only bright spot for this quarter is a 40% decrease in financial expenses.

Accumulated in 2018, HNG's net revenue reached more than 3,685 billion VND, an increase of 11% compared to the previous year but negative profit. The company has to bear losses from the liquidation costs of oil palm investment to shift its purpose to the garden together with a strong increase in cost of goods sold, which dragged down the business results. Profit after tax for the whole year was more than 646 billion dong, far lower than the net profit target of 150 billion dong proposed by the Board of Directors in the 2018 annual shareholder meeting.

As of December 31, 2018, the company's total assets recorded more than VND 30,700 billion. Although gloomy business results, HNG's financial index is being improved significantly with its liabilities falling sharply compared to the beginning of the year. Long-term debt is VND 9,551 billion. Short-term debt of more than VND5,940 billion came from the issuance of convertible bonds and short-term loans from individuals and businesses.

2018 marked a major turning point of HNG in particular and Hoang Anh Gia Lai Group (HAGL) in general when Truong Hai Automobile Company (Thaco) decided to invest tens of trillions of dong in Bau Duc companies. From the end of the first quarter of the first quarter of the second quarter of 2018, Mr. Tran Ba ​​Duong, President of Thaco gave HNG the money to develop more fruit-growing areas and pay due debts of VND 1,577 billion.

In the third quarter of 2018, Thaco signed a strategic cooperation agreement with HAGL to invest in two companies, HAGL Agriculture and HAGL Myanmar Company. For HAGL Agriculture Company, through the HNG convertible bond trading contract, it has not fully distributed to existing shareholders (to offset the above debt) and through the stock buying operation.

After buying bonds to eliminate debts, Thaco and Thaco's shareholders own 35% of HNG with a total investment of more than VND 3,800 billion. At the same time, Dai Quang Minh also invested to own 51% and will continue to raise 65% HAGL Myanmar with an investment capital of VND 4,000 billion.

Thaco pledged to arrange loans of about VND 14,000 billion and mobilize investment capital to take care of existing fruit plantations as well as expand and continue to invest in the second phase of the project Myanmar. The total amount of Thaco's investment in Hoang Anh Gia Lai companies is about VND 22,000 billion, approximately one billion USD.

Author: Translated by CoPhieuViet.Com

Source: Vnexpress newspaper

 Tags: HNG

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