Hoang Anh Gia Lai Joint Stock Co (HAG), one of the largest private enterprises in Viet Nam, reported a record loss of almost VND1.1 trillion (over US$49 million) in the first half of 2016. This is a result of the company's restructuring scheme which it has been carrying out since the start of the year.

Hoang Anh Gia Lai Co (HAG)'s chairman, Doan Nguyen Duc. HAG, one of the largest private enterprises in Viet Nam, reported a record loss of almost VND1.1 trillion (US$49 million) in the first half of 2016. 

HAGL Board of Directors released a statement about the preliminary business results in the first half.

HAGL incurred pre-tax losses of VND1,075 billion, including VND941 billion of extraordinary losses. For the same period last year, HAGL declared pre-tax profit of VND1,041 billion.

Also, in thestatement, the HAGL Board said that its revenue in the same period grew 20.5% year on year, reaching VND3,658 billion. 

Its financial revenue was estimated at VND507 billion, but interest expenses were up to VND782 billion, up 70.2% over the same period of 2015. The cost management was VND325 billion and sales expenses were VND83 billion.

The cause of losses derived from the liquidation of HAGL’s real estate projects in HCM City, worth VND413 billion, ineffective assets of VND530 billion and losses caused by huge interest paymentson bank loans.

The total unusual cost for liquidation of estate, mining and ineffective projects was up to VND944 billion (about 2% of the total consolidated assets).

HAGL said that the group still maintains a cow herd of about 7,500 heads and 130,000 cows for meat, the major source of the group’s income.

For the sugar industry, the group has harvested 47,000 tons of sugar. 

The group has completed construction of a palm oil plant with a processing capacity of 45 tons of palm fruits per hour. The plant is expected to become operational in the fourth quarter.

In Myanmar, the occupancy rate of HAGL’s office building is 60%. It is 95% for its commercial center while its 5 star hotel was put into operation in August.

On the stock market, shares of HAGL are VND6,400/share, a loss of nearly 87% compared to the listing price.

Na Son