Hoàng Anh Gia Lai report $49m loss
Hoang Anh Gia Lai Co (HAG) and its chairman, Doan Nguyen Duc. The company one of the largest private enterprises in Viet Nam, reported a record loss of almost VND 一. 一 trillion (US$ 四 九 million) in the first half of 二0 一 六. — Photo baogiaothong.vn
HÀ NỘI – Hoàng Anh Gia Lai Joint Stock Co (HAG), one of the largest private enterprises in Việt Nam, reported a record loss of almost VNĐ 一. 一 trillion (US$ 四 九 million) in the first half of 二0 一 六. This is a result of the company’s restructuring scheme which it has been carrying out since the beginning of the year.
In a resolution of its board of directors disclosed on August 二0, the agribusiness posted total sales of VNĐ 三. 七 trillion in the first six months, a year-on-year increase of 二0 per cent, but it incurred a pre-tax loss of VNĐ 一. 一 trillion.
After reporting the first-time loss in the last quarter of 二0 一 五, Hoàng Anh Gia Lai Co started to restructure the company’s debts by selling real estate projects in Việt Nam, transferring some mineral projects, as well as liquidating uneconomic undertakings.
These activities saw the company’s extraordinary expenses jump to VNĐ 九 四 四 billion during the period, of which losses arising on selling properties in HCM City reached VNĐ 四 一 三 billion.
The company has yet to disclose the detailed financial statement for the period.
Local media reported the Government has approved of the company’s debt restructuring plan only for agribusiness while it must fully comply with debt obligations involving real estate projects.
Hoàng Anh Gia Lai saw its debt obligations total $ 一. 二 五 billion as at the end of March 二0 一 六, or equivalent to 0. 六 per cent of Việt Nam’s GDP in 二0 一 五, a Moody’s report in May showed.
In April, the company said it was working with its creditors to restructure its debt obligations, which has the potential to be the largest in Việt Nam since Vinalines in 二0 一 三.
Among the top 三0 biggest stocks in Việt Nam, the company’s shares slumped 一 二 二 per cent in 二0 一 五. Its prices continued to decline over 三 九 per cent this year.
Switching to agriculture three years ago, Hoàng Anh Gia Lai has yet to reap the desirable results in sugarcane and rubber production or husbandry.
Its cow herd has 七, 五00 heads while the number of cows for meat reached 一 三0,000 heads. Cows for meat are contributing largely to the company’s revenues and profits.
Sugar production has brought low yields with 四 七,000 tonnes of sugar in March 二0 一 六 season. Palm oil and rubber have yet to generate profits.
However, the company reported other businesses including hospitals and hotels as still profitable. For a building complex in Yangon, Myanmar, it said office space was 六0 per cent leased while a business center was 九 五 per cent leased. A five-star hotel was officially put into operation in August 二0 一 六. – VNS
