HNG is still a subsidiary and continues to be consolidated with the financial statements of HAG

Hoang Anh Gia Lai Joint Stock Company (HAG) announces that Hoang Anh Gia Lai Agricultural Joint Stock Company (HNG) is still a subsidiary and continues to be consolidated with the financial statements of HAG.

1/ Pursuant to Article 9 of VAS 25 on Consolidated Financial Statements and Accounting Investments for Subsidiaries, the conditions where control also exists even when the parent owns less than one half of the voting power of an enterprise:

(a) power over more than one half of the voting rights by virtue of an agreement with other investors;

(b) power to govern the financial and operating policies of the enterprise under a charter or an agreement;

(c) power to appoint or remove the majority of the members of the Board of Management or equivalent governing body; or

(d) power to cast the majority of votes at meetings of the Board of Management or equivalent governing body.

2/ Pursuant to Article 189 on Parent companies, subsidiaries of Law on Enterpirse No. 68/2014/QH13:

A company shall be regarded as parent company of another company in one of the following cases:

a/ Holding over 50 percent of the charter capital or total ordinary shares of such company;

b/ Having the right to directly or indirectly decide on the appointment of a majority or all of members of the Board of Directors and director or director general of such company;

c/ Having the right to decide on the amendment and supplementation of the charter of such company.

Thereby, although the owning ratio of HAG at HNG decreased to 49.24%, HAG still holds the control of HNG when Mr. Doan Nguyen Duc is the Chairman of the Board of Directors of HNG and the number of HAG's representatives in the Board of Directors of HAGL Agrico is 04 members on the total number of 07 members.

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