Hoang Anh Gia Lai International Agriculture JSC, better known as HAGL Agrico (HNG), chaired by Tran Ba Duong, continued to present a bleak financial picture in the first half of 2026.

According to its reviewed consolidated interim financial statements, audited by Ernst & Young Vietnam (EY), HAGL Agrico recorded an after-tax loss of nearly $7.1 million in the first six months of the year. That pushed its accumulated losses to more than $501 million.

More notably, EY drew attention to a material uncertainty that may cast significant doubt on the ability of HAGL Agrico and its subsidiaries to continue as a going concern.

Liquidity pressure remains one of the company’s biggest challenges. As of June 30, 2026, HNG had consolidated current assets of just over $124 million, compared with more than $595 million in current liabilities - about 4.8 times its current assets. The gap between the two stood at more than $471 million.

Short-term borrowings alone amounted to more than $366 million, while short-term accrued expenses totaled nearly $91 million.

Its cash position was also extremely thin, at only about $265,000 at the end of June.

Meanwhile, net revenue for the first six months reached just over $10.9 million, indicating the relatively limited scale of cash generated from operations at a time when the company is under significant pressure from debt and liquidity constraints.

The reviewed results were substantially worse than the figures HNG had initially reported. The company had previously posted a consolidated loss of about $1.3 million for the first six months, but after EY’s review, that loss increased to nearly $7.1 million, a deterioration of roughly $5.8 million.

The main reason was the accounting treatment of borrowing costs. Of approximately $16.3 million in interest expenses incurred during the six-month period, EY determined that around $7.7 million qualified for capitalization, while about $8.6 million had to be recognized as expenses for the period. Before the review, HNG had recognized only around $3.6 million.

The adjustment increased recognized interest expenses for the period by about $5 million, contributing to the roughly $5.8 million increase in the company’s after-tax loss.

Former owner fully exits as THACO remains a key source of funding

HAGL Agrico was once one of the largest and most ambitious agricultural ventures of Vietnamese businessman Doan Nguyen Duc, widely known in Vietnam by his nickname “Bau Duc.”

Established in 2010, the company at one point developed around 85,000 hectares of rubber, oil palm and other crops across Vietnam, Laos and Cambodia.

However, its large-scale investment in rubber and oil palm coincided with a sharp decline in commodity prices, pushing HAGL Agrico into a liquidity crisis. By Aug. 3, 2018, the company’s total debt was reported at approximately $697 million.

On Aug. 8, 2018, Hoang Anh Gia Lai JSC (HAGL) and Vietnamese conglomerate THACO began a strategic partnership to restructure HAGL Agrico, with a commitment for THACO to acquire a 35% stake.

THACO and its agricultural arm THADI became involved in debt restructuring while also acquiring assets and subsidiaries. They worked with HAGL Agrico to convert some rubber and oil palm plantations to fruit production.

During the first two years following the strategic agreement, THACO worked with HAGL to address HAGL Agrico’s financial difficulties, helping the company repay bank debts as they matured and finance the conversion and development of fruit plantations.

THACO invested in HNG shares, while its Dai Quang Minh company acquired the HAGL Myanmar project from HAGL and continued investing in the project.

In early 2021, HAGL Agrico approved a plan to raise approximately $281 million by issuing more than 741 million shares to THAGRICO at about $0.38 per share. Under the plan, THACO and the family of Tran Ba Duong were expected to control more than 63% of HAGL Agrico.

The planned share issuance, however, was never completed. In July 2021, the plan was halted due to issues involving land documentation, the impact of Covid-19 and HAGL’s sale of HNG shares.

Following the cancellation, THAGRICO continued lending to HAGL Agrico and maintained an important role in purchasing its products. By the end of 2025, THACO Agri remained HAGL Agrico’s largest creditor, with outstanding loans of approximately $363 million.

By the end of June 2026, HNG’s debt to THAGRICO had exceeded $379 million, including both short- and long-term loans.

This included more than $149 million in unsecured short-term loans carrying annual interest rates of 6.5-8%. Unsecured long-term loans totaled approximately $231 million, with annual interest rates of 7.7-13%, of which around $194 million had already fallen due.

More than eight years into the restructuring, THACO has therefore become not only a shareholder and strategic partner but also a crucial source of financing for HAGL Agrico.

Meanwhile, Doan Nguyen Duc and HAGL have completely divested from HNG. In January 2026, HAGL sold its remaining 8.24% stake in HAGL Agrico.

Duc had previously sold all HNG shares held in his personal name in May 2022.

THACO is now HAGL Agrico’s largest shareholder, while Tran Ba Duong serves as chairman of its board of directors and companies within the THACO ecosystem continue to play a particularly important role.

As of the end of June 2026, THACO was HNG’s only major shareholder, holding a 27.63% stake. Including the 4.58% held by Tran Ba Duong and the 4.96% owned by Tran Oanh Trading and Production Co. Ltd., THACO’s parent company, THACO-related shareholders controlled more than 37.17% of HAGL Agrico.

The latest financial results show that the restructuring has yet to pull HAGL Agrico out of difficulty. The company remains loss-making, with accumulated losses exceeding $501 million, while its short-term liabilities far exceed its current assets and it continues to depend heavily on financing from THACO Agri.

More than eight years into the restructuring, HAGL Agrico therefore continues to face major challenges involving losses, debt and cash flow, with funding from the THACO ecosystem remaining important to keeping the company operating.

With HAGL having completed its exit, HAGL Agrico has entered a new phase in which the THACO ecosystem plays a larger role, even as the company continues to grapple with persistent losses, debt and cash-flow pressures.

In the Sept. 14 trading session, HNG shares fell to about $0.23 apiece, giving the company a market capitalization of approximately $260 million.

Manh Ha