HAG shares will be under supervision at the end of April

Friday, Apr 23, 2021 08:37

Workers checking fruit at HAG's warehouse. The company's shares plunged on Thursday, hitting a maximum daily loss of 7 per cent. — Photo haagrico.com.vn

Under new restrictions, shares of Hoang Anh Gia Lai JSC (HAGL, HAG) will only be able to be traded in afternoon sessions.

In a recent statement published on its official website, the Ho Chi Minh Stock Exchange (HoSe) announced the transfer of Hoang Anh Gia Lai JSC (HAGL, HAG)'s shares from the warning list to the supervision list starting April 18.

Accordingly, HAG's shares will be limited in trading time, which is only in afternoon sessions.

The main reason for HoSE's move was the loss of over VND1.25 trillion in profit last year, taking its accumulated deficit to over VND6.3 trillion as of December 31, 2020. The company also carried out a retroactive adjustment of 2018 and 2019's data, leading to an accumulated loss of nearly VND4.8 trillion.

Regarding the retrospective adjustment of the losses in 2019, the company recorded an additional loss of VND5 trillion in the undistributed profit after tax.

HAG said that the outbreak of COVID-19 highlighted risks in the agricultural market and the agricultural sector, therefore its previous risk expectations were not evaluated cautiously and the company decided to retroactively adjust its 2018 and 2019 audited financial reports.

HAG shares, which are traded on HoSE, have entered a bearish period after a strong rally. On Thursday, HAG's shares hit a maximum daily loss of 7 per cent to VND5,410.

As of the end of 2020, HAG reported an accumulated loss of over VND6.3 trillion, with short-term debts exceeding short-term assets. Therefore, the auditor emphasised that the company's financial reports hid crucial uncertainties that might lead to doubts about the ability to operate continuously.

At the same time, the company is also violating a number of commitments to loan and bond contracts. — VNS

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