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Tuesday, June 18, 2024

Auditor doubts HAG’s financial viability

The Saigon Times

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HCMC – An auditing firm has cast doubt on Hoang Anh Gia Lai JSC’s (HAG) ability to operate as a going concern, citing its accumulated losses of nearly VND3 trillion as of the end of June this year.

In HAG’s reviewed semi-annual financial statements, Ernst & Young Vietnam put the company’s accumulated losses at VND2.96 trillion, coupled with short-term debt exceeding short-term assets by over VND2 trillion as of June 30.

These findings have raised significant questions about HAG’s ability to sustain its operations.

The report also indicated a 5% reduction in post-tax profit compared to HAG’s self-reported figures.

Despite a 55% increase in revenue, the company’s post-tax profit declined by 27.3% to VND385 billion. Ernst & Young’s audit led to an additional adjustment, reducing the reported profit by VND19 billion.

The fruit sector was HAG’s most profitable segment, generating gross profit of VND488 billion, constituting 77.7% of the company’s total gross profit for the period.

HAG managed to reduce its financial costs by half, primarily due to the absence of long-term financial investment provisions, but interest expenses surged by VND100 billion compared to the same period last year.

HAG’s total outstanding debt increased by VND1.09 trillion versus the beginning of the year, reaching VND15.69 trillion by the end of the second quarter.

The firm’s HAG shares inched up 0.22% to close at VND9,200 per share today, September 5, with a matching volume of around 14.7 million shares.

The VN-Index of the Hochiminh Stock Exchange added 10.93 points to 1,234.98 points, or 0.89% higher than the previous session, with winners outnumbering losers by 366 to 141.

Trading volume and value improved by 15% versus the session earlier, with nearly 1.09 billion shares worth around VND24.6 trillion changing hands. Block deals contributed VND2.8 trillion to the overall value, with 104 million shares transacted.

Bank stocks emerged as a strong driver of the main index. Lender VCN contributed nearly 1.5 positive points with a modest 1.1% increase in its share price to VND90,100 per share.

MBB advanced by 3.5% to VND19,150 per share, while SHB traded more than 35.3 million shares, becoming the second most actively traded stock on the exchange.

VIB, BID, TCB, HDB and SHB also made gains, ranging from 1.2% to 1.6%.

Aside from the banking sector, VNM jumped by 3% to VND80,100 per share, while VJC surged by 2.6% to VND100,500 per share.

Only four stocks in the VN30 basket, BCM, SSB, VRE and SSI, slid. SSB dropped the steepest with a 2.1% decrease to VND27,500 per share. MSN remained unchanged at its reference price of VND81,500 per share.

With 25 advancers, the VN30-Index increased 10.11 points to 1,244.64 points.

Housing developer NVL took the lead by liquidity with 53.9 million shares changing hands. It shot up 4.6% to VND21,400 per share.

On the northern bourse, the HNX-Index of the Hanoi Stock Exchange improved by 1.01% against the previous session, adding 2.53 points to close at 252.28 points, with 132 stocks advancing and 72 others dipping.

Over 117.8 million shares worth VND2.1 trillion were traded on the northern market.

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