Bau Duc is about to plant fruit trees and make juice.

Hoang Anh Gia Lai has proposed converting the grass growing project for raising cows to fruit tree growing to provide raw materials for the group's own processing plant.

Gia Lai province has officially decided to revoke 2 pepper growing projects and convert a grass growing project to raise cows of Hoang Anh Gia Lai Group (Stock code: HAG).

Accordingly, Gia Lai province has received a document requesting to change the purpose of land use, build a fruit juice factory in the province and agreed to let Hoang Anh Gia Lai convert a total of nearly 685 hectares of grass land to grow fruit trees to provide raw materials for the group's fruit processing factory.

Specifically, Tay Nguyen Dairy Company was allowed to convert 195.8 hectares of land in Ia Grai district leased by the province in Decision No. 73 in 2015.

Gia Lai Livestock Company was converted 488.8 hectares in Mang Yang district leased by the province in Decision No. 79 in 2015.

This is a new investment direction of Hoang Anh Gia Lai in this difficult period. DebtAlthough the State Bank has signaled debt extension for VND28,000 billion, it is still a burden requiring business restructuring.A few days ago, Hoang Anh Gia Lai had its high-tech cow breeding, grass growing and beef cattle raising project revoked with a total investment of 1,600 billion VND.

Besides,Gia Lai province also reclaimed 50 hectares of Hoang Anh Gia Lai in Pleiku city with hCurrent status is pepper growing land and road land. After recovery, the land will be allocated toNuti Agricultural Company (subsidiary of Nutifood)to continue investing and caring for pepper plants.

The above land was granted a land use right certificate to the group by the Gia Lai Provincial People's Committee in 2001 and is valid until 2042.

At the end of the first quarter of 2016, the group's revenue nearly doubled to VND1,972 billion. However, due to the huge interest expense of VND304 billion, after-tax profit dropped sharply to only VND90 billion, while in the same period it reached VND303 billion.

According to VNE