Hoang Anh Gia Lai Joint Stock Company (HAGL), stock ticker HAG, announced on September 9 that it is indeed moving forward with its plan to issue shares to convert existing debts and increase its share capital. According to the announcement, General Director Nguyen Xuan Thang has been authorized to manage the share issuance process, including preparing documents for submission to the State Securities Commission.

The plan involves issuing 210 million shares to convert debts and increase the company’s share capital from 10,574 billion to 12,674 billion. The total value of debts slated for conversion is 2,520 billion,with an issue price of 12,000 per share.

HAGL anticipates implementing this plan in 2025, pending regulatory approval.

New Creditors Emerge

“HAGL has lost liquidity…consider it dead!”

The debts being exchanged include 2,000 billion in interest-bearing debts and 520 billion in undisclosed debts. These debts are bonds from group B of BIDV Bank, now transferred to new creditors.

Huong Viet Investment Consulting Joint Stock Company (Huong Viet Investment) tops the list of new creditors, holding nearly 721 billion in debt. This translates to over 60 million shares, or 4.74% of HAGL’s share capital,exceeding the initially planned 572 billion as per the financial statements for the second quarter of 2025.

Several private individuals are also participating in the debt exchange, including Ms. Nguyen Thi Dao with 479 billion, Mr. Phan Cong danh and Mr. Nguyen Anh Thao, each holding debts exceeding 60 billion, and Mr. Ho Phuc Truong and Mr. Nguyen Duc Trung, each with 600 billion.

Decade-Long Debt Reduction

Back in 2016, HAGL faced a debt of over 36,000 billion, including 28,000 billion in loans. CEO Doan Nguyen Duc (Bau Duc) admitted the company was facing a liquidity crisis.

Without sufficient cash flow, HAGL risked collapse, unable to cover interest payments or repay its debts. Mr. Duc described this period as the most challenging of his life.

As then, HAGL has been working to reduce its debt. Following the transfer of Hagl Agrico to billionaire Tran Ba Duong in 2021, HAGL reduced its outstanding debt from 35,274 billion in 2020 to 13,766 billion, with loan debts accounting for 8,287 billion.

By June 30, 2025, HAGL’s total debt is projected to fall further to 6,965 billion. If the share issuance is triumphant, the group anticipates reducing its outstanding bank debt to around 5,000 billion, marking a 23,000 billion reduction over ten years since 2016.

On the business front, HAGL reported net sales of 2,329 billion in the second quarter of 2025, a 53% increase compared to the same period last year. After-tax profit reached 510 billion, an 88% increase and the highest level in the last six quarters.

In the first half of the year, the group’s net turnover reached 3,707 billion and after-tax profit hit 880 billion, representing increases of 34% and 76%, respectively, compared to the first half of the previous year.

These results mean HAGL has achieved over half of its business plan announced on July 23, reaching 52.2% of its sales goal and 56.8% of its profit target.