The Power Shift: QCG Stock Surges as Cuong ‘Dollar’ Takes Over the Hot Seat at Quoc Cuong Gia Lai

After a continuous streak of floor-price declines with depleted liquidity, QCG stock of Quoc Cuong Gia Lai has just made a remarkable breakthrough. At the close of the July 29 session, this stock suddenly surged to its upper limit to 6,770 VND/share (+6.95%), breaking a chain of 6 consecutive floor sessions. The influx of cash to “rescue” QCG stock caused liquidity to also surge to 7.5 million units, the highest in the past 18 months (since the session on January 20, 2022).

Although it has recovered slightly, the QCG price is still at its lowest level in the past 14 months. Market capitalization reached 1,862 billion VND, “evaporating” up to 62% in just 3 months since the short-term peak in April this year.

QCG stock has witnessed many changes after Ms. Nguyen Thi Nhu Loan – the company’s General Director was prosecuted and temporarily detained on July 19 to serve the investigation of the act of “Violation of regulations on the management and use of State assets causing waste and loss”.

Instead, the company has appointed Mr. Nguyen Quoc Cuong (aka “Cuong Do la”, born in 1982) as the official legal representative of the company, replacing his mother, Ms. Nguyen Thi Nhu Loan.

In addition to replacing his mother as the legal representative, the General Director of Quoc Cuong Gia Lai, Mr. Nguyen Quoc Cuong, has also been nominated to the company’s Board of Directors. The appointment will be considered by shareholders at the annual general meeting to be held on July 30.

Currently, Mr. Nguyen Quoc Cuong owns 537,500 QCG shares (equivalent to 0.2% of capital), and his wife, Dam Thu Trang, does not own any shares. However, family members of this entrepreneur currently hold approximately 60% of the company’s capital.

Back to the case of Ms. Loan being prosecuted, it is known that Ms. Loan was accused of violating the law in the transfer of the project at 39-39B Ben Van Don, Ward 12, District 4, Ho Chi Minh City. The incident took place in the context of the expansion of the investigation of violations occurring at Vietnam Rubber Industry Group (GVR), Dong Nai Rubber Company, Ba Ria Rubber Company, Ministry of Natural Resources and Environment and related units. Among them are violations at the project of land lot 39-39B Ben Van Don (over 6,000m2, with state-owned origin).

A representative of Quoc Cuong Gia Lai said that the above case is still under investigation, and Ms. Nguyen Thi Nhu Loan has been and is continuing to coordinate with the authorities in the investigation to clarify related issues. This incident only relates to the project at 39 – 39B Ben Van Don, District 4, Ho Chi Minh City, which the company acquired from two private companies and completed the transfer to the partner since 2014 as officially informed by Quoc Cuong Gia Lai to shareholders, media agencies on May 30, 2024.

“This case does not change or affect the company’s plans, strategies, production and business activities, and investment. The legitimate rights and interests of customers, shareholders, and partners who are transacting and cooperating with the company are still guaranteed. Currently, the company is still operating normally. Business and transaction activities with partners are still being implemented,” the company stated in the document.

Quoc Cuong Gia Lai commits to making every effort to stabilize all business activities, ensuring the rights and legitimate interests of customers, shareholders, partners,… The company looks forward to receiving the sharing and companionship from customers, shareholders, and partners.