HAGL reports decrease of $29 million in audited financial statements

Hoang Anh Gia Lai reports the decrease of $29 million in audited financial statements

According to information published on HAGL’s website, the decrease comes from a decrease of VND118 billion ($5.17 million) in gross profit in the business segment, VND290 billion ($12.7 million) in the profit of other segments, and increasing financial expenditures.

The information comes as a surprise, as there has been little difference in revenue between the audited and the company’s financial report.

The HAGL Board of Directors stated that their accountants' faulty calculations as well as the time pressure to complete the financial report were the major reasons for the differences.

The state audit also warned about HAGL’s short-term debts exceeding short-term assets by VND3.5 trillion ($153.37 million) which could pose a threat to the firm’s operations.

Previously, on February 6 HAGL and its agricultural arm Hoang Anh Gia Lai Agricultural JSC (HNG) sent documents to the Ho Chi Minh City Stock Exchange (HSX), requesting an extension to submit its audited financial statements of 2017.

However, HSX warned HAGL and HNG that as they has yet to submit their audited financial statements for the financial years of 2015 and 2016 (consolidated and of parent companies), they will be probably delisted if they miss the deadline.

HSX cited Decree No.58/2012/ND-CP, which stipulates that the securities of a company will be removed from listing if the company fails to submit financial statements for three consecutive years.

According to the unaudited financial statements, in 2017, HAGL reported a revenue of VND4.89 trillion ($214.56 million), a decrease of 27 per cent on-year. After-tax profit reached VND1.032 trillion ($45.3 million).

These statistics were considered a success for HAGL, as in 2016 the firm was flooded by losses.

As of the end of 2017, the firm had total assets of VND53.4 trillion ($2.34 billion). It shouldered debts worth VND23 trillion ($1.01 billion), down VND4 trillion ($175.5 million) compared to the beginning of the year.