Workers process fresh bananas at a facility of Hoang Anh Gia Lai Group, February 2020. Photo by HAGL.
Without its agriculture subsidiary, Hoang Anh Gia Lai Group earned revenues of a mere VND284 billion (US$12.32 million) in the first quarter.
They were 66 percent lower than that in the same period last year and the lowest since 2008 when HAGL listed its shares on the Ho Chi Minh Stock Exchange.
The main reason for this, it said in its quarterly report, was its sale of HAGL Agrico in January. HAGL Agrico had debts of over VND16 trillion ($693 million), and was sold to Truong Hai Agriculture Company (Thagrico), a subsidiary of automaker Thaco, for VND9.2 trillion.
Thagrico is also set to invest VND7.4 trillion in it, which will enable it to repay the debts. Thagrico now owns 63.08 percent of HAGL Agrico.
In the first quarter, HAGL’s revenues from selling fruits fell by 77.6 percent year-on-year to VND115 billion and gross profit by 81.4 percent to VND52.4 million.
With corporate income tax payment deferred, HAGL managed to get away with a net loss of VND69 billion considering the tax it owed was almost VND180 billion.
Its assets decreased by nearly VND20 trillion to VND18.4 trillion.