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| Hoang Anh Gia Lai Co (HAG)'s chairman, Doan Nguyen Duc. HAG, one of the largest private enterprises in Viet Nam, reported a record loss of almost VND1.1 trillion (US$49 million) in the first half of 2016. — Photo baogiaothong.vn |
HA NOI (Biz Hub) — Hoang Anh Gia Lai Joint Stock Co (HAG), one of the largest private enterprises in Viet Nam, reported a record loss of almost VND1.1 trillion (US$49 million) in the first half of 2016. This is a result of the company's restructuring scheme which it has been carrying out since the start of the year.
In a resolution of its board of directors disclosed on August 20, the agribusiness posted total sales of VND3.7 trillion in the first six months, a year-on-year increase of 20 per cent, but it incurred a pre-tax loss of VND1.1 trillion.
After reporting the first-time loss in the last quarter of 2015, Hoang Anh Gia Lai Co started to restructure the company's debts by selling real estate projects in Viet Nam, transferring some mineral projects, as well as liquidating uneconomic undertakings.
These activities saw the company's extraordinary expenses jump to VND944 billion during the period, of which losses arising on selling properties in HCM City reached VND413 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.
Hoang Anh Gia Lai saw its debt obligations total $1.25 billion as at the end of March 2016, or equivalent to 0.6 per cent of Viet Nam's GDP in 2015, 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 the country since Vinalines in 2013.
Among the top 30 biggest stocks in Viet Nam, the company's shares slumped 122 per cent in 2015. Its prices continued to decline over 39 per cent this year.
Switching to agriculture three years ago, Hoang Anh Gia Lai has yet to reap the desirable results in sugarcane and rubber production or husbandry.
Its cow herd has 7,500 heads while the number of cows for meat reached 130,000 heads. Cows for meat are contributing largely to the company's revenues and profits.
Sugar production has brought low yields with 47,000 tonnes of sugar in March 2016 season. Palm oil and rubber have yet to generate profits. — VNS