Hoang Anh Gia Lai will plant 2,000 ha of bananas in 2024

On May 10th in Ho Chi Minh City, HAGL organized its annual general meeting of shareholders for the year 2024 (stock code HAG), with the participation of numerous shareholders.

Responding to shareholders' questions regarding business operations and the company's direction in agricultural development, especially concerning debts, Mr Doan Nguyen Duc (Mr Duc), Chairman of the Board of Directors of Hoang Anh Gia Lai Joint Stock Company (HAGL), candidly stated: "Accumulated losses have haunted me. For many years, it is because of these accumulated losses that auditors have continuously issued warnings. However, we have acknowledged the debts and are striving to repay them within 1-2 years, aiming to eliminate losses this year".

According to Mr Duc, in 2024, Hoang Anh Gia Lai has set a plan for net revenue to reach VND 7.750 trillion (an increase of 20.3% compared to the same period last year), with an estimated after-tax profit of VND 1.320 trillion (a decrease of 26% compared to 2023). Specifically, revenue from fruit trees is expected to be VND 5.540 trillion and VND 1.550 trillion from pig farming.

"In 2023, HAGL had a revenue of VND 357 billion from the transfer of 2 assets, namely the HAGL University Hospital and HAGL Hotel. However, in 2024, there will be no such revenue sources, and the focus will be on agricultural production", explained Mr Duc, adding that in the 2024 plan, HAGL will cultivate an additional 2,000 ha of bananas, increasing the total banana cultivation area from 7,000 ha to 9,000 ha. Additionally, they will develop an additional 500 ha of durian, raising HAGL's total durian cultivation area from 1,500 ha to 2,000 ha.

Mr. Duc stated that HAGL's main banana export markets are South Korea, Japan, and China. Particularly, China's banana market exports around 20 - 25 containers of bananas per day (accounting for 60 - 65%).

While South Korea and Japan finalize prices quarterly, maintaining stable prices throughout the year, the Chinese banana market sets purchasing prices every Tuesday. Therefore, to stabilize, in the future, the company will focus on expanding banana exports to South Korea and Japan to 50% of HAGL's total banana export market share.

Regarding durian, Mr Duc mentioned that the company currently has about 1,500 ha of seasonal durian cultivation in Laos. "In October, we will harvest approximately 300 - 400 ha. This is the time when durians are not available in Vietnam or Thailand. HAGL will have the market to itself", Mr. Duc said.

As for livestock farming, Mr Duc stated that since the beginning of 2023, anticipating difficulties in livestock farming, the Board of Directors and the Executive Board of HAGL did not include plans to build new farms but focused on reducing costs, improving the quality of livestock products, and utilizing existing farms to increase production. Thanks to this, the revenue from pig farming in 2023 still increased compared to 2022, reaching VND 1.964 trillion (accounting for 30.5% of total revenue).

However, according to Mr Duc, in 2024, pork prices are very favourable, sometimes reaching VND 65,000/kg, while the cost of large-scale pig farming is only 46,000 - 49,000/kg. Profits from pig farming could increase by 30 - 40%. Therefore, HAGL plans to expand its herd. "This May - June, we will expand our herd, and by the end of the year, we expect to fill up the existing farms. Pork revenue in 2025 could surpass fruit revenue", the HAGL Chairman said.

Responding to shareholders' questions about HAGL's concerns regarding African swine fever, Mr Duc said, like other large-scale livestock businesses, HAGL has a closed process and absolute isolation on pig farms. "Even if I or auditors want to check the pigs, they must be isolated for 3 days, strictly adhering to the regulations, so there is no concern about African swine fever", Mr Duc affirmed.

Hoang Anh Gia Lai aims to become a leading agricultural company in Vietnam by 2030, with a scale of 30,000 ha, expanding its reach as a supplier of agricultural products throughout the Asian region with clean, safe agricultural products through the application of circular agriculture methods.

To achieve this goal, Mr Duc said HAGL is urgently recruiting 200 - 500 agricultural specialists such as plant protection, cultivation, chemicals, etc. Especially, priority is given to recruiting fresh graduates.

In 2023, with these efforts, HAGL's net revenue reached VND 6.442 trillion (increasing by 125.8% compared to the planned target), and after-tax profit reached VND 1.782 trillion (achieving 157.7% of the planned target). Specifically, maintaining care and harvesting on 7,000 ha of bananas; and planting 500 ha of new durian, increasing the total durian cultivation area to 1,500 ha. The pig farming sector did not expand its farms.