According to Tran Ba Duong, HAGL Agrico currently carries total liabilities of approximately 15 trillion VND (around $600 million), of which about 1.2 trillion VND is owed to banks, while Thaco has "shouldered" the remaining 12 trillion VND. HAGL Agrico is working to resolve these outstanding issues by 2025.

Hoang Anh Gia Lai Agriculture Joint Stock Company (HAGL Agrico, stock code: HNG) recently held its 2025 Annual General Meeting of Shareholders to approve its business plan for the year, targeting net revenue of 1.088 trillion VND, more than double the 2024 results.

However, the company forecasts a pre-tax loss of 854 billion VND for 2025, compared to a loss of 1.282 trillion VND last year.

In the fruit sector - primarily bananas - HAGL Agrico expects revenue of 595 billion VND, contributing an estimated profit of 182 billion VND.

Meanwhile, the rubber sector is projected to generate 444 billion VND in revenue and 183 billion VND in profit, with cattle farming expected to bring in about 45 billion VND in revenue.

At the meeting, some shareholders expressed concern that recent transactions between HAGL Agrico and Thaco Agri involved selling products below cost, potentially impacting shareholder interests.

Tran Ba Duong, Chairman of the Board of HAGL Agrico, acknowledged that the company was in a state of "clinical death" and that Thaco was making significant efforts to save it.

Duong explained that the root cause was the Nam Laos project, which required formal sales contracts to operate effectively.

“HAGL Agrico is selling directly to external markets and sometimes through Thaco Agri to generate cash and fulfill contractual requirements,” Duong said.

The chairman further revealed that Thaco is currently allowing HAGL Agrico to carry a debt of 12 trillion VND. Therefore, Thaco has no choice but to keep the company afloat to recover its loan. He emphasized that Thaco Agri operates independently of HAGL Agrico.

Addressing shareholders' pressing concern about when HAGL Agrico would return to profitability, Duong explained that the projected 2025 loss largely stems from orchard replanting and depreciation costs. These depreciation expenses, he noted, do not accurately reflect the actual earning potential of the assets.

By 2026, HAGL Agrico expects to cultivate around 3,000 hectares of banana plantations. If well-managed and expanded, this could lead to positive financial results.

Moreover, financial costs remain a heavy burden for the company. As of now, HAGL Agrico’s total liabilities stand at around 15 trillion VND, with only 1.2 trillion VND owed to banks and the bulk - 12 trillion VND - borne by Thaco.

“We are making every effort to resolve these outstanding issues by 2025,” Duong pledged.

Regarding the potential merger between Thaco Agri and HAGL Agrico - both chaired by Duong - he clarified that currently, HAGL Agrico’s shares are held by Thaco. Moving forward, this stake will be transferred to Thaco Agri, but there are no immediate plans to merge the two companies.

Despite its significant accumulated losses and the 2025 business plan still projecting a pre-tax loss of 854 billion VND, HAGL Agrico is not considering increasing its charter capital or seeking new investors at this time.

“Currently, the company still has about 1.6 trillion VND in shareholder equity, though accumulated losses remain high. We are relying on loans from Thaco to maintain operations. However, we do not see the need to raise capital at this moment,” Duong stated.

Quoc Hai