Workers at a Hoang Anh Gia Lai's banana farm. The company's revenue mainly relied on agricultural products in 2020. — Photo courtesy of HAGL Group
The fourth quarter result of Hoang Anh Gia Lai (HAG) showed that the company lost nearly VND2.2 trillion last year as it struggled to manage businesses due to COVID-19.
Hoang Anh Gia Lai’s net revenue increased 52.7 per cent year-on-year to VND920.4 billion in the last quarter of 2020. The main source of its revenue came from selling fruits with a value of VND538 billion in the same period. Revenue from selling hogs also reached VND121 billion for the first time.
Despite an increase in revenue, its gross profit was zero as the selling price was affected by COVID-19. It had to sell products under cost prices. The company posted a gross loss of nearly VND168.5 billion in the fourth quarter.
However, its financial activities income surged up to VND784 billion in the last quarter of last year. The gain was boosted by liquidating investments and the decline of VND439 billion in financial activities expenses.
When the companies’ businesses were heavily affected by COVID-19, Hoang Anh Gia Lai’s executive board decided to review its previous data which related to estimation and provision for receivables under conservatism principles.
Accordingly, it applied a retrospective adjustment to its 2019 consolidated financial report by increasing provision for accumulated receivables, leading to a rise in general and administrative expenses and other expenses.
The result was Hoang Anh Gia Lai reported a loss after tax of over VND1.5 trillion in the fourth quarter, of which the parent comany’s loss after tax was nearly VND1.2 trillion.
In 2020, its consolidated net income gained nearly 49 per cent year-on-year to VND3.1 trillion and loss after tax was nearly VND2.2 trillion. In 2019, the company recorded a loss after tax of over VND1.9 trillion.
As of December 31, 2020, its liabilities were over VND26.6 trillion, of which short-term borrowing was nearly VND8.5 trillion and long-term borrowing was over VND9.6 trillion.
Recently, Doan Nguyen Duc, president of Hoang Anh Gia Lai, has registered to sell 21.78 million HAG shares for financial restructuring. After the deal, the number of HAG shares in Duc's assets will decline to over 319 million units, equivalent to 34.5 per cent ownership.
Meanwhile Hoang Anh Gia Lai also registered to sell 75 million Hoang Anh Gia Lai Agricultural JSC (HNG) shares for loans restructuring. After the sale, the number of HNG shares that Hoang Anh Gia Lai owns is over 330.1 million.
Both of the deals are expected to be executed under the method of agreement from February 5 to March 5.
At current prices, the deals will bring over VND93 billion for Duc and more than VND800 billion for Hoang Anh Gia Lai.
On the Ho Chi Minh Stock Exchange (HoSE), HAG shares were traded at VND4,450 on Wednesday, up 4.46 per cent, while HNG share price gained 5.16 per cent to VND11,200.
From December 31, 2020 to January 19, 2021, Hoang Anh Gia Lai completed the deal to sell nearly 47.5 million HNG shares. — VNS