Hoang Anh Gia Lai profits down despite hotel sale

It included VND180 billion from the sale of its last hotel, but profits were still down from the same period last year.

Its nine-month financial statement released Wednesday merely mentioned other income of VND180 billion from asset sale.

But chairman Doan Nguyen Duc confirmed to VnExpress it was from selling the Hoang Anh Gia Lai Hotel in Pleiku City in the Central Highlands’ Gia Lai Province.

The money will be used to redeem bonds issued to state-owned bank BIDV.

The company posted after-tax profits of VND710 billion for the first nine months, a year-on-year decline of 20%.

The company is planning a private placement of 130 million shares at VND10,000, and to use the proceeds to repay debts and provide working capital to subsidiaries.

On Oct. 18 the company’s share fell by 4.1% to VND7,700.

As of June 30 the company had total assets of VND21.34 trillion, equity of VND5.39 trillion, accumulated losses of VND2.95 trillion, and debts of VND15.95 trillion.

Duc said his profits would be more than VND1 trillion this year and VND2 trillion next year.

The company’s focus is on growing bananas and durian and raising pigs, he said.