Hoang Anh Gia Lai would like to maintain the listing of HAG shares

In a written petition to the Securities Commission and related parties, the General Director of Hoang Anh Gia Lai JSC (HM: HAG) said the target of profit after tax, the company has suffered losses for three consecutive years, from 2017-2019. and undistributed earnings are currently negative. 

Therefore, they are concerned that the previous series of losses may cause the shares to be delisted on the Ho Chi Minh Stock Exchange (HoSE).

According to regulations, there are many reasons leading to the forced delisting of shares of a public company, including the loss of business results for three consecutive years, or the accumulated loss exceeding the actual contributed charter capital or negative equity. 

Most investors buy HAG shares recently based on current business situation and future prospects, not based on past financial information. Therefore, HAGL recommends the competent authority to consider and approve to maintain the listing of HAG on HoSE.

Chairman Hoang Anh Gia Lai once again asked the State Securities Commission to consider and approve the company's retroactive work. In fact, the company only lost 3 years before, 2017-2019, from 2020 to now, there have been breakthroughs in business. 

Meanwhile, in the period 2017-2019, the old shareholders were no longer attached to Hoang Anh Gia Lai. Currently, shareholders holding HAG are new shareholders who believe in HAGL's business plan now and in the next 2 years. Therefore, if they cancel the listing, they will be very disadvantaged.

HAG shares have been changed from warning to control status by HoSE from April 2021 due to the undistributed after-tax loss by the end of 2020 of more than VND 6,300 billion and the after-tax loss of parent company shareholders in 2020 of more than VND 1,255 billion. copper. 

In the first half of 2021, the undistributed after-tax loss increased to VND 7,371 billion and the audit unit doubted the company's ability to continue operating. However, the production situation has improved a lot compared to before. The Company has paid off most of its outstanding loans and bonds, handled inefficient investments in the fields of agriculture, hydropower, minerals and receivables of the Real Estate Investment Company. An Phu Estate. It is estimated that the whole year of 2021, the profit is over 120 billion dong and this year is expected to increase this figure to 1,120 billion dong, and net revenue is about 4,820 billion dong. The company said it will try to reduce debt by the end of the year to 5,000 billion dong and focus on two main areas: growing bananas and raising pigs.