In a major development, IA Grai 2 Hydropower Plant is set to be transferred for VND 235 billion in Q2-Q3 2024. This 7.5 MW project is located in Ia Grai district, Gia Lai province, specifically in Ia To, Ia Grawng, and Ia Khai communes.
Another plant, the Ayun Trung Hydropower Plant, will be transferred for VND 380 billion during the same period. With an installed capacity of 13 MW, this plant is situated in Kon Thụp, Mang Yang district, and Trang, Đăk Đoa district of Gia Lai province.
The total value of the transfer for both plants amounts to VND 615 billion. The transferee is responsible for retaining the existing workforce of the hydropower plants at the time of the transfer and ensuring their rights and benefits as per the Labor Code.
This transfer by Quoc Cuong Gia Lai comes on the heels of their Q1 financial report, which showed a significant drop in revenue compared to the previous year. With a meager Q1 revenue of VND 38.7 billion, a 77% decrease year-on-year, the company managed to stay afloat thanks to a financial activity income of VND 6.4 billion, resulting in a modest profit of over VND 1 billion.
As of March 31, 2024, Quoc Cuong Gia Lai had outstanding loans from Vietcombank totaling VND 101 billion for the Ia Grai 2 Hydropower Project and VND 198 billion for the Ayun Trung Hydropower Project, with both loans maturing in 2029.
In recent times, the company’s stock, QCG, has witnessed a surge in price, climbing from VND 10,050 per share at the start of the year to its current level of VND 16,550 per share, including a ceiling-hitting performance on May 20, 2024.
