THACO AGRI Emerges as Largest Creditor of HAGL Agrico as 2025 Audited Results Show Net Loss and Going-Concern Risk

THACO AGRI is the largest creditor of Hoang Anh Gia Lai International Agriculture JSC (HAGL Agrico, ticker: HNG), holding total outstanding debt of VND 9,577 billion. In its audited 2025 financial results, HAGL Agrico reported net revenue of VND 678 billion, up 38% year-on-year, but earnings were heavily pressured by costs, leading to a net loss of VND 987 billion.

2025 audited performance: revenue growth but deep losses

Despite higher net revenue, the company’s profitability deteriorated due to several cost items. Interest expense totaled VND 415 billion. The audited statements also recorded impairment of underperforming assets of VND 747 billion, and depreciation of idle assets of VND 69 billion.

Compared with the standalone pre-audit report, revenue remained unchanged, while the loss increased by VND 8 billion after the audit. The audited results mark the fifth consecutive year of losses.

Balance sheet deterioration and leverage

By end-2025, accumulated losses reached VND 10,371 billion, reducing equity to VND 1,045 billion. Total liabilities were VND 18,633 billion, up from VND 15,059 billion at the start of the year, equivalent to 95% of total assets.

Financial debt stood at VND 10,447.8 billion, with 93% classified as short-term.

Asset structure: construction-in-progress dominates

Total assets were VND 19,678 billion. Cash was around VND 41 billion, representing 0.2% of assets. Most assets were tied up in construction-in-progress at VND 8,234 billion, mainly related to agricultural projects including rubber estates, fruit cultivation, cattle farming, and infrastructure. Fixed assets were recorded at VND 5,690 billion.

Creditor and related-party exposure

The notes state that THACO AGRI, an agriculture company under THACO, is HAGL Agrico’s largest creditor, with total outstanding debt of VND 9,577 billion (short and long-term). The interest rates range from 6.5% to 8.5% per year.

THACO AGRI is also a major purchaser of services and fruits from HAGL Agrico, with purchases of around VND 550 billion. Beyond THACO AGRI, other companies in the THACO ecosystem are described as partners of HAGL Agrico.

Going-concern warning and management’s response

Ernst & Young Vietnam (EY) warned of a material uncertainty that could cast significant doubt on the company’s ability to continue as a going concern.

HAGL Agrico said it prepared a business plan and a 12-month cash flow forecast based on expected cash flows from operations, debt disbursements from banks, and financial support from shareholders. In this context, THACO—the group’s major shareholder—remains a key player, pledging additional financial support when needed, extending maturities, and ensuring normal operations.

Outlook: near-term support, long-term cash generation

Overall, while gross margin improvements were mentioned, cost pressures, the debt burden, and weak cash flow remain major challenges for HAGL Agrico. THACO’s commitment to support could help the company manage the short term, but long-term recovery will depend on the effectiveness of agricultural projects and the ability to generate cash flow.