The semi-annual consolidated financial statements of Hoang Anh Gia Lai Joint Stock Co. (HAG: HAG) recorded the total liabilities at 36,654 trillion dong, accounting for more than 66% capital.
In addition to the long-term loans of more than VND20 trillion, the short-term debts to chairman Doan Nguyen Duc amounted to VND 1,557 billion. This money was used by the head of Hoang Anh Gia Lai for the development of business projects.
Before the only temporary loan in the first six months of the year, the company handled six temporary loans in 2017 with total outstanding loans of more than VND780 billion.
The company's management said that VND 1.557 billion was actually borrowed from Bau Duc through Truong Hai Auto Joint Stock Co. (Thaco). The money was repaid in August via convertible bonds. According to a comprehensive cooperation agreement signed not long ago, bondholders Thaco committed to convert this bond into capital on the due date of 8/2019.
Reclassification of this amount in short-term debt has contributed to the short-term debt exceeding the short-term assets of 5.429 billion. This is one of the reasons why the auditor doubted his ability to work continuously.
"The remaining amount will be used by the company to generate additional income," said managing director Vo Truong Son. The two main sources represented by the company are fruit and rubber.
Concerning the violation of the terms of loans and bonds at VPBank, BIDV, Sacombank, HDBank … the company said that some banks have confirmed that they do not have to collect debts in time. The company continued to work with the remaining banks to adjust the terms of the relevant loan and collateral agreements.
The management of the company also has every confidence to overcome the difficult period because there are two new favorable factors. One of these is a strategic investment in agriculture and real estate with Thaco. Secondly, the General Meeting of Shareholders approved the plan to offer individual shares in 2018, creating the opportunity to finance large funds, reduce debt and guarantee the possibility of paying debts. .
According to the audited financial statements, Hoang Anh Gia Lai VND has achieved 2,915 billion net income and VND 100 billion profit after tax. These two indicators decreased by VND6 billion and VND40 billion, respectively, compared to the previous report due to provisions for the fall in the share price (especially the decrease of calves). Delayed in connection with interest cost capitalized on the basis of the depreciation rate of the orchard.
According to VnExpress
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