On January 24th, Bapi Hoang Anh Gia Lai Joint Stock Company changed its business registration, reducing its charter capital by VND 23.2 billion, equivalent to a decrease from VND 100 billion to VND 76.8 billion.
The reduction of Bapi Hoang Anh Gia Lai’s charter capital took place less than a month after Hoang Anh Gia Lai Corporation (HAG) announced the resolution of the board of directors on the transfer of all shares of Bapi Hoang Anh Gia Lai.
Mr. Duc in the launch of Bapi HAGL’s banana-fed pig
In May 2022, Hoang Anh Gia Lai, owned by Mr. Duc, joined hands with Dong A Trading and Pharmaceutical LLC to establish Bapi Hoang Anh Gia Lai Joint Stock Company (Bapi HAGL) aiming to develop a retail system for banana-fed pig meat products.
At that time, Bapi had a charter capital of VND 50 billion, equivalent to 5 million shares, with 2 founding shareholders being HAG holding 55% and Dong A Trading and Pharmaceutical holding 40% of the total share capital.
After a grand launch at the end of 2022, unexpectedly at the beginning of 2023, HAG announced a transfer of a portion of its shares in Bapi. Accordingly, Mr. Duc invited Mr. Do Xuan Dien to join with a 35% capital stake in Bapi and affirmed: “The transfer of the banana-fed pig store is to call for more partners rather than a loss”.
Prior to that, on January 16th, 2023, Bapi HAGL registered a business change, increasing its charter capital to VND 100 billion, equivalent to issuing an additional 5 million shares. Among them, HAGL purchased an additional 650,000 shares, raising the total ownership to 3.4 million shares, equivalent to 34% of the capital in Bapi HAGL. From then on, Bapi HAGL turned from a subsidiary to an associated company of HAG.
Mr. Duc also shared that he did not sell off Bapi as rumored but wanted to develop Bapi strongly but could not do so. Therefore, he called for additional capital to develop.
“As for Bapi HAGL, I also emphasize that Bapi was born to consume all of HAGL’s products. But I can’t handle them all by myself, and to be honest, I haven’t seen any results yet even though we have separate products. So I invited Mr. Dien to join with a 35% stake,” Mr. Duc explained to investors.
Currently, Mr. Do Xuan Dien is the Chairman of the Board of Directors and Mr. Dinh Van Loc is the Director of Bapi HAGL. Both of them are also the legal representatives of the company.
Bapi Food store
Compared to the previously shared plans for Bapi HAGL, many plans have become distant. After more than a year of establishment, the Bapi chain has opened nearly 200 stores, but due to lack of competitiveness, the number of stores has been reduced to 52 stores and supermarkets (source: HAGL Investor Meeting in August 2023).
Up to now, the product distribution list of Bapi has not developed any new items. The fresh products sold online at Bapi Food include Bapi pork and Lamon beef. Among them, the pork is listed at a price of VND 55,200 per 300 grams of pork belly, VND 32,400 per 300 grams of ground meat, VND 35,700 per 300 grams of shoulder meat,…
In addition, there are processed foods such as smoked Bapi sausages, Arabiki sausages, Zinger sausages, German sausages, balut eggs, traditional sausages. Items such as spices, fruits, and chicken meat are all vacant, with no listed items.
Bapi Hoang Anh Gia Lai app still “Congratulations on Lunar New Year 2023”
In November 2022, at the launch event of the Bapi Food app, Mr. Dinh Van Loc shared with the media: “To open a Bapi Food store usually takes several weeks, from finding a location, designing, recruiting staff, installing software,… with an initial investment of VND 600 – 700 million. This cost is significant when HAGL wants to open thousands of sales points”.
The CEO of Bapi Food also said: The online channel can solve this issue when there is no need to invest in Bapi Food stores, only the warehouses and sale points of Bapi in stores, supermarkets (shop-in-shop) to cover the market and shorten delivery time. Our system is investing to be able to process 10,000 orders/day this year (2022-PV) and increase to 100,000 orders in 2023″.
Expected to become the extended arm of the Bapi Food chain, both the Bapi Food website and app seem to be “neglected” to the point that the interface displayed on the homepage still reads: “Congratulations on Lunar New Year 2023” even though it has been almost 2 months into 2024.
Bapi HAGL website
Bapi HAGL app
