The investor implementing the project is HNG. The business entity implementing the project is Southern Laos Agricultural Investment and Production Trading Company Limited.
The project aims to cultivate fruit trees (bananas, mangoes, pomelos, durians), along with raising free-range cattle, fattening beef cattle; fruit processing; fiber production; production of organic microbial fertilizers, and biopesticides. The expected completion of investment is from 2024 to 2028. The project has a 50-year operational period.
 Source: HNG
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The scale of the project is 27,384 hectares of land with a total investment of over 18,090 billion VND, equivalent to 750 million USD. Of which, the equity capital is 9,650 billion VND, and HNG will contribute 100% of this equity capital through capital contribution to the aforementioned project implementation company; the remaining 8,440 billion VND will be raised from domestic and foreign banks and credit institutions in accordance with regulations.
Estimated after completing the initial investment phase by 2028, the project could bring in annual revenue and profit of 13,500 billion VND (550 million USD) and 2,450 billion VND (100 million USD), respectively. Corresponding to a profitability rate of 18%.
In addition, certain production output indicators are also provided, as summarized below.
Source: HNG
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Based on the above information, HNG‘s stock reached its daily trading limit on February 22, touching 4,300 dong/share. However, HNG stock is currently at risk of mandatory delisting.
| HNG’s stock price since the beginning of 2024 |
Prior to this, HOSE issued a notice to HNG regarding the possibility of mandatory delisting of the company’s stock. The reason is that HNG stock is currently categorized as a controlled stock according to HOSE’s decision on April 5, 2023, due to net losses of over 1,119 billion VND in 2021 and 3,576 billion VND in 2022, based on the audited consolidated financial statements in 2021 and 2022.
Furthermore, HOSE announced that it has received HNG‘s audited consolidated financial statements for Q4/2023 on January 30, 2024, with a net loss of 1,050 billion VND and a cumulative loss as of December 31, 2023, of nearly 8,054 billion VND.
| HNG’s business results over the years |
Based on Clause 1, Article 120 of Decree No. 155/2020/ND-CP dated December 31, 2020, which stipulates the delisting of publicly traded stocks in case: “Business results suffer losses for 3 consecutive years or accumulated losses exceed the contributed charter capital or negative owner’s equity in the audited financial statements of the latest financial year prior to the examination,” HOSE noted that HNG‘s stock may be delisted if the audited consolidated financial statements for 2023 have business results that suffer losses.
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At the end of 2023, the Board of Directors of HNG approved the establishment of Southern Laos Agricultural Investment and Production Trading Company Limited (abbreviated as Southern Laos Agri). The company has a registered capital of 8.3 trillion kip (equivalent to 400 million USD) and is 100% owned by HNG. Its headquarters is in Saysettha district, Attapeu province, Laos. Southern Laos Agri has two core business activities. One is investment and agricultural production (crop cultivation, animal husbandry, processing), hotel services, and cooperation with partners for agricultural investment and production. The other is business supply of specialized agricultural supplies, machinery, equipment, and transportation means; technology transfer and services in agricultural investment and production; joint ventures and cooperation with partners for the supply and distribution of agricultural products. In addition, Southern Laos Agri has other activities such as the production of organic microbial fertilizers, biopesticides, agricultural supplies; logistics and warehousing; vocational training center… |
