The Ho Chi Minh City Stock Exchange (HoSE) recently announced the mandatory delisting of shares of HAGL Agrico Joint Stock Company, an international agricultural company (coded as HNG on the stock exchange).
This decision was made due to the company’s negative profit after tax for the years 2021, 2022, and 2023, amounting to 1,119 billion VND, 3,576 billion VND, and 1,098 billion VND, respectively.
According to Decree No. 155/2020/ND-CP, Article 120, Clause 1, Point e, dated December 31, 2020, the State Securities Commission of Vietnam has the authority to delist the shares of a public company if it has incurred losses for three consecutive years, or if its accumulated losses exceed its contributed charter capital, or if its owner’s equity is negative in the latest audited financial statements before the consideration.
HNG delisted due to three consecutive years of losses.
In the first quarter of 2024, HAGL Agrico experienced a 26% decrease in revenue. Operating at a gross loss and burdened by additional expenses, the company incurred a post-tax loss of 47 billion VND. This marked the thirteenth consecutive quarter of losses for the company, although the loss has decreased to a double-digit figure. As of the end of the first quarter of 2024, HAGL Agrico had accumulated losses of 8,149 billion VND, resulting in a negative owner’s equity of 2,487 billion VND.
In the second quarter of 2024, HNG’s revenue dropped by 48% compared to the same period last year, falling below 79 billion VND. Operating below their cost of goods sold and burdened by fixed costs, the company faced a net loss of nearly 323 billion VND, a heavier loss compared to the 135 billion VND loss in the second quarter of 2023. This marked the thirteenth consecutive quarter of losses since the second quarter of 2021.
With the second-quarter loss, HNG’s accumulated loss increased to nearly 8,472 billion VND, leading to a further decline in owner’s equity to below 2,387 billion VND. As of the end of the period, their total liabilities exceeded 13,162 billion VND, an increase of over 11% compared to the beginning of the year.
For the full year 2024, HAGL Agrico has planned for a 14.5% increase in revenue to 694 billion VND. However, the company anticipates a post-tax loss of 120 billion VND for the year.
Billionaire Tran Ba Duong believes in the potential for stock price improvement
During the 2024 Annual General Meeting of Shareholders held in early May, Chairman of the Board of Directors, Tran Ba Duong, addressed shareholders’ concerns about the potential delisting of the company’s shares. He emphasized the importance of compliance with regulations, as well as transparent management and operation of the business. Mr. Duong highlighted that despite the company’s challenges, with a current value of 11,000 billion VND and losses of 8,000 billion VND, Thaco remains committed to supporting HAGL Agrico.
Mr. Tran Ba Duong, Chairman of HAGL Agrico, has a strong belief in the potential of agriculture.
“I am betting big on agriculture in general and HAGL Agrico in particular. While shareholders may be concerned about the potential delisting, I believe that transparency and forming a realistic value are crucial. Even if the shares move to the UPCoM market, effective management and performance can still drive stock price improvement,” affirmed Mr. Duong.
According to Chairman Tran Ba Duong, the company has established a development model, and the focus now is on governance and operations. He expressed hope that by 2025, the company would achieve stable revenue and begin turning a profit. HAGL Agrico is committed to forming a realistic value and disclosing information to ensure that the stock price accurately reflects the company’s performance.
HAGL Agrico was established in 2010 as part of the restructuring of the Hoang Anh Gia Lai Group, founded by Mr. Doan Nguyen Duc. The company focuses on agricultural projects in Vietnam, Laos, and Cambodia. In 2021, Mr. Tran Ba Duong, the founder of Thaco, became the Chairman of the Board of Directors, while Mr. Doan Nguyen Duc assumed the role of Vice Chairman.
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