The deadline for delisting HNG shares of Hoang Anh Gia Lai Agriculture Joint Stock Company (HAGL Agrico) has been set.

On the stock market, HNG shares plummeted after news of delisting. HNG's market value dropped by more than 20% in the past week, closing at 4,080 VND per share on August 9th.

After being delisted, HNG shares will trade on the UPCoM exchange. To be relisted on the HoSE, HAGL Agrico must have profits for two consecutive years before it can apply for registration.

In 2024, HAGL Agrico plans to achieve net revenue of VND 694 billion, a 14.5% increase compared to 2023. The company anticipates a net loss of VND 120 billion for the year.

Most recently, in the second quarter of 2024, HAGL Agrico recorded a sharp 48% decrease in net revenue compared to the same period last year, down to nearly 79 billion VND. Meanwhile, the cost of goods sold surged by 76%, and business operations were below cost, resulting in insufficient funds to cover expenses. HAGL Agrico recorded a net loss of 323 billion VND in the second quarter of 2024. This figure is significantly higher than the loss of 135 billion VND in the second quarter of 2023. This also marks the 13th consecutive quarter that HAGL Agrico has suffered losses.

For the first six months of the year, HAGL Agrico's net revenue decreased by 47% compared to the same period in 2023, reaching only 147 billion VND. Meanwhile, the net loss increased to nearly 370 billion VND, compared to a loss of 247 billion VND in the first half of 2023.

Thus, HAGL Agrico currently has accumulated losses of up to VND 8,472 billion, and its equity has decreased to below VND 2,387 billion.

As of the end of June 2024, HAGL Agrico's total assets were nearly VND 15,549 billion, a 10% increase compared to the beginning of the year. Work-in-progress construction costs accounted for the majority, at VND 5,463 billion, mainly in the development of orchards, rubber plantations, and cattle farming projects.

HAGL Agrico's total liabilities exceed VND 13,162 billion, an increase of over 11% compared to the beginning of the year. Borrowings account for the majority, at VND 9,138 billion, with the largest amount borrowed from Truong Hai Agriculture Joint Stock Company (a subsidiary of Thaco Group) at VND 6,365 billion. HAGL Agrico also borrowed VND 1,123 billion from Hoang Anh Gia Lai Joint Stock Company (stock code HAG), with the remainder being outstanding debt from banks.

After the first half of the year, HAGL Agrico had only completed 21% of its revenue target and recorded a significant loss compared to the planned target.

HAGL Agrico stated that its business operations are gradually improving. This year, the company plans to plant 1,533 hectares of bananas, cultivate and harvest 6,328 hectares of rubber; invest in barns, pastures, and import 5,800 dairy cows. Accordingly, net revenue is estimated at VND 694 billion, and pre-tax losses are expected to decrease sharply to only VND 120 billion.

In addition, HAGL Agrico has received approval for an investment project to develop a large-scale fruit tree cultivation and cattle farming operation in Attapeu and Sekong provinces (Laos). The project covers 27,384 hectares of land, with a total investment of VND 18,090 billion, and is scheduled for completion between 2024 and 2028. Estimated revenue for 2028 is VND 13,500 billion, and projected profit is VND 2,450 billion.

Currently, the company is implementing a large-scale agricultural production strategy, managing the entire value chain using industrial methods, and applying mechanization, biotechnology, and digitalization according to a suitable roadmap.

"With this strategy, the company believes it will achieve sustainable growth and profitability in the coming years. From there, it will gradually reduce accumulated losses on its financial statements in the shortest possible time," HAGL Agrico emphasized.