Agri major HAGL mortgages 30 mln shares for $21 mln Sacombank loan

Agricultural giant Hoang Anh Gia Lai approved Thursday two measures to supplement the working capital of one of its subsidiaries with a 12-month VND500 billion ($21 million) loan.

In the first measure, it will pledge 30 million shares of one of its subsidiaries, the Gia Lai Livestock JSC, as collateral for the loan taken by another subsidiary, the Hung Thang Loi Gia Lai Co. Ltd.

The second measure is that the parent Hoang Anh Gia Lai (HAGL) will stand as guarantor for the loan provided by the Sacombank Gia Lai branch to Hung Thang Loi Gia Lai.

Hung Thang Loi Gia Lai is a subsidiary that is 98% owned by HAGL. The company manages several other HAGL subsidiaries including Lo Pang Livestock JSC (9.5%); Dai Thang Agricultural Development One Member Co., Ltd (100%); and Khan Xay Agricultural Development One Member Co., Ltd (100%).

It also holds 1% of Hoang Anh Gia Lai Sports JSC, the firm that manages the Hoang Anh Gia Lai football team playing in the V-League.

HAGL reported second quarter net revenues of VND1.45 trillion ($61 million), up 18% year-on-year and after-tax profits of VND101.6 billion ($4.3 million), down 61%.

Notably, the company said it recorded a profit of VND247.5 billion ($10.4 million) from its purchase of Bolaven Hi-tech Agriculture Co., Ltd.

In the first six months of the year, HAGL, listed on the Ho Chi Minh Stock Exchange (HoSE) as HAG, posted net revenues of VND3.15 trillion ($132.5 million) and after-tax profits of VND405 billion ($17.05 million), up 55% and down 22% year-on-year, respectively.

As of June 30, HAG's total assets stood at VND21.34 trillion ($898.5 million), up 7% compared to the beginning of the year, with inventories at VND1.26 trillion ($53 million), up 9% and fixed-assets at VND5.76 trillion ($242.3 million), up 50%.

HAG closed Friday at VND9,270 ($0.39) per share.