Hoang Anh Gia Lai International Agriculture Joint Stock Company (HAGL Agrico) finalized plans for 1,676 billion dong in revenue and 232 billion dong in pre-tax profit this year, both representing the highest levels in the past six years.
The company's management board announced plans to disburse approximately 3,700 billion dong for investments. Nearly half of this capital is allocated to expanding banana cultivation areas. The remaining funds will be used to develop a cattle farming model combined with pomelo cultivation, construct factories and cold storage facilities, and acquire machinery.
HAGL Agrico has incurred continuous losses since 2021, including a peak year with over 3,500 billion dong. By the end of last year, the company's accumulated losses reached 10,370 billion dong.
According to the management, the prolonged losses were primarily due to crop conversion costs in economically inefficient areas and debt restructuring from the previous period. By the end of last year, HAGL Agrico's outstanding debt was approximately 10,500 billion dong, primarily linked to Truong Hai Group (Thaco).
"Recording these short-term costs is necessary and proactive, aimed at definitively resolving issues from the previous period", HAGL Agrico's management stated.
The continuous losses led auditors to express doubts about HAGL Agrico's ability to operate as a going concern, a concern noted in financial reports for several recent years. However, the management stated they continue to base their business plans on expected cash flow from large-scale agricultural projects, coupled with financial support and debt extensions from major shareholders.
Thaco currently owns over 306 million shares, representing 27.63% of the capital, and is the sole major shareholder in HAGL Agrico. Tran Ba Duong holds nearly 51 million shares, accounting for 4.58% of the capital, and serves as the company's Chairman of the Board of Directors.
HAGL Agrico was formerly a member of Hoang Anh Gia Lai, chaired by Doan Nguyen Duc. Between 2019 and 2022, Duc gradually reduced his stake and currently holds no shares.
HAGL Agrico has a charter capital of nearly 11,100 billion dong. Its total cultivated area spans nearly 40,000 hectares, primarily located in Attapeu province, Laos, for fruit tree cultivation and cattle farming. The remaining area in Cambodia is used for growing mangoes and rubber.
Phuong Dong
