Hoang Anh Gia Lai is facing cash flow difficulties.

Speaking to reporters, Mr. Doan Nguyen Duc acknowledged facing cash flow difficulties, but expressed confidence that Hoang Anh Gia Lai would return to good operation with the group's strong restructuring.

Immediately after Hoang Anh Gia Lai Group (Stock Code: HAG) announced its audited consolidated report with unfavorable business results, the company's shares were heavily sold off on the stock exchange today. Both HAG and HNG (shares of its agricultural subsidiary) fell to 6,900 VND per share – the lowest price in history.

Talk withreporterAmidst auditors questioning the company's going concern principle,Chairman of Hoang Anh Gia Lai, Doan Nguyen Duc, affirmed that the company is still operating normally and is in the restructuring phase.

Mr. Duc believes that business has its ups and downs, and he is very saddened that shareholders are suffering losses due to falling stock prices.

Regarding the pledging of assets such as cattle, stocks, and the football academy to secure loans, Mr. Duc admitted to it but argued that it is a normal practice in business investment."No corporations in the world or in Vietnam borrow money without collateral. Banks also have to look at the ability to repay the debt before lending. These are all assets of Hoang Anh Gia Lai. Investors can look at the debt-to-total assets ratio to see this clearly," Mr. Duc said.

Regarding outstanding debt of nearly VND 27,100 billion, an increase of 49.5% compared to the end of 2014, with major creditors including BIDV Bank, BIDV Securities Company, Eximbank, Asia Commercial Bank (ACB), Lao-Viet Joint Venture Bank, Sacombank, VPBank… Mr. Duc said that negotiations are underway for restructuring. Once results are available, the company will inform shareholders and the public.

However, he noted that for banks, businesses must be trustworthy to be eligible for loans. Regarding ACB's sale of over 28 million HNG shares to recover debt, Mr. Duc stated that it was a carefully calculated operation by the bank, so he declined to comment.

Sharing more about the difficulties they are facing, the leader said that they mainly stem from the rubber sector."Business has its ups and downs. Just like 10 years ago, nobody thought the price of oil would fall below $30 a barrel," he commented. Accordingly, when Hoang Anh Gia Lai invested in rubber, they could sell it for $5,500 a ton with an initial investment of $1,300. However, the price has sometimes dropped to $1,100, so Mr. Duc considers the difficulties faced by the company normal, even though other sectors are performing well.

"What I find most heartbreaking and concerning is that investors are suffering losses as the stock price falls. When the stock price drops, the company can't say anything good about it. However, as the head of the group, I hope investors will remain calm at this time and look at Hoang Anh Gia Lai's profitable projects to avoid regrets later," he shared.

Furthermore, Mr. Duc stated that as a shareholder himself, the biggest loser would be him personally if the stock price fell.He also affirmed that after a major restructuring, Hoang Anh Gia Lai will operate better. "I affirm and believe that this is the case," he emphasized.

Hoang Anh Gia Lai's revenue structure in 2015.

Previously, General Director Vo Truong Son also stated that in the coming period, Hoang Anh Gia Lai will focus on its core business areas, including cattle farming, planting an additional 6,000 hectares of sugarcane in Laos and 30,000 hectares of oil palm. In the oil palm sector, the group has built a factory, conducted trial operations, and achieved good results. At the same time, it will plant an additional 30,000 hectares of rubber and invest in a real estate project complex in Myanmar.

Yesterday (April 11th), Hoang Anh Gia Lai Group officially announced its audited financial report for 2015. According to the report, the company's revenue reached over 6,200 billion VND, but due to high interest expenses, profits decreased to only 602 billion VND. The group's largest revenue sources came from cattle farming and construction...

According to VNE