Hoang Anh Gia Lai Joint Stock Company (HAG) reported a net profit of nearly 834 billion VND in the first half of 2023, marking a 74% increase year-on-year, effectively eliminating accumulated losses. Its revenue rose by 34% to 3,707 billion VND, largely due to banana business operations. HAG achieved 58% of this year’s profit target and plans to adjust it upwards to 1,500 billion VND. However, Ernst & Young Vietnam’s audit report revealed that HAG’s short-term liabilities exceeded short-term assets by over 2,767 billion VND, raising concerns about its continued operation. HAG also breached several bond commitments and failed to repay principal and overdue bond interest. To address these issues, the company plans to liquidate some financial investments, recover loans, and issue private bonds. HAG’s leaders confirmed their financial statements are based on the assumption of continued operations, supported by revenues from banana and durian exports. As of June 30, HAG’s total assets were over 26,000 billion VND while total liabilities stood at 15,600 billion VND. HAG’s stock will be delisted from warning status starting August 26 after overcoming its accumulated loss.
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