Hoang Anh Gia Lai Joint Stock Company has just informed that as of September 30, 2024, the company must pay interest on bonds code HAGLBOND16.26 of VND 136.7 billion.
However, the accumulated late payment interest up to September 30, 2024 is VND 3,486.17 billion; and the accumulated late payment principal up to September 30 is VND 1,015 billion. Thus, the total late payment interest and principal of bonds code HAGLBOND16.26 is up to more than VND 4,501 billion.
The reason for the delay in payment was given by Hoang Anh Gia Lai due to not having collected enough money from the debt of Hoang Anh Gia Lai International Agriculture Joint Stock Company and not being able to liquidate some of the company's unprofitable assets. Hoang Anh Gia Lai is expected to pay the remaining amount in the fourth quarter of 2024.
In terms of business activities, in the first half of 2024, Hoang Anh Gia Lai recorded revenue of VND 2,762.02 billion, down 12.2% over the same period, profit after tax reached VND 500.19 billion, up 29.9% over the same period last year.
It is known that as of June 30, 2024, Hoang Anh Gia Lai owns 136 billion VND in cash but the total debt is up to 6,932.7 billion VND and equal to 82.3% of equity. Of which, short-term debt is 3,951.5 billion VND and long-term debt is 2,981.2 billion VND.
Ernst & Young Vietnam Co., Ltd. also audited Hoang Anh Gia Lai's 2024 Semi-Annual Financial Statements. The auditors emphasized that as of June 30, 2024, Hoang Anh Gia Lai had an accumulated loss of VND957 billion and as of this date, short-term debt exceeded short-term assets by VND350.37 billion.
“These conditions, together with other matters set forth in the notes, indicate the existence of a material uncertainty that may cast significant doubt on Hoang Anh Gia Lai's ability to continue as a going concern,” Ernst & Young Vietnam Co., Ltd. emphasized.
It is known that in the explanatory notes to the 2024 Semi-Annual Audit Report, as of June 30, 2024, Hoang Anh Gia Lai has not paid the principal and interest due with the value of VND 789.7 billion and VND 7.7 billion respectively. Also as of June 30, 2024, Hoang Anh Gia Lai has not paid the interest on the due bonds with the total value of VND 3,277.8 billion...
Explaining the auditor's concerns, Hoang Anh Gia Lai said that as of June 30, 2024, the company had made a business plan for the next 12 months, including the expected cash flow generated from liquidating part of financial investments, liquidating assets, recovering loans from partners, money borrowed from commercial banks and operating cash flow generated from ongoing projects.
Hoang Anh Gia Lai is still in the process of working with lenders to adjust the violated terms of the related loan and bond contracts, and negotiate the restructuring of some overdue debts. In particular, the pig and banana business will continue to generate large cash flows in 2024.
