Quoc Cuong Gia Lai Joint Stock Company (stock code: QCG) has released its Q2 financial report.
Specifically, Q2 revenue reached over VND 26 billion, a 41% decrease year-on-year. According to QCG, the decline in revenue is due to challenges in the real estate market, low electricity production, and recent rubber exploitation.
QCG incurred a loss of VND 16.4 billion, making it the heaviest loss in 12 years. In the first half of the year, the company’s revenue decreased by 69% to VND 65 billion, with a loss of VND 15 billion.
This year, QCG aims for a revenue target of VND 1,300 billion and a pre-tax profit of VND 100 billion. Thus, after six months, Quoc Cuong Gia Lai has achieved only 5% of its revenue plan.
Quoc Cuong Gia Lai suffered its heaviest loss since 2012.
As of June 30, QCG’s total assets stood at VND 9,300 billion. Inventories exceeded VND 7,000 billion, of which VND 6,500 billion was real estate under construction. The company held nearly VND 28 billion in cash. The net cash flow from operating activities was negative, at over VND 160 billion.
QCG has short-term payables of over VND 4,100 billion, accounting for nearly 90% of total liabilities. This includes VND 2,882 billion received from Sunny Island for the North Phuoc Kient Urban Area project, VND 791 billion payable to third parties, and VND 476 billion payable to related parties.
On July 19, the Ministry of Public Security announced that the Investigation Police Agency had decided to prosecute and arrest Ms. Nguyen Thi Nhu Loan, CEO of Quoc Cuong Gia Lai Joint Stock Company, for “Violation of regulations on the management and use of State assets, causing waste and losses.”
This decision is part of the investigation into a case that occurred at the Vietnam Rubber Industry Group, Dong Nai Rubber Company, Ba Ria Rubber Company, the Ministry of Natural Resources and Environment, and related units involving a plot of land at 39-39B Ben Van Don, Ward 12, District 4, Ho Chi Minh City.
At QCG’s 2nd shareholder meeting, Mr. Nguyen Quoc Cuong (Ms. Loan’s son) – the new CEO of Quoc Cuong Gia Lai – shared that this year’s targets include completing the 1/500 planning adjustment for the Marina Danang project and initiating procedures to sell products in Q1/2025. The company also aims to operate six commercial floors of the Giai Viet project (District 8, Ho Chi Minh City) in Q3 this year and continue to exploit commercial areas in other projects.
Additionally, Quoc Cuong Gia Lai plans to generate revenue from rubber, complete the transfer of three hydropower plants, and divest from its associated company, Quoc Cuong Lien A Joint Stock Company. The company will finalize the legal procedures for feasible unfinished projects and transfer inventories at these projects.
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Q4 Boosts Quốc Cường Gia Lai’s Full-Year 2023 Profits
Quốc Cường Gia Lai recorded a net profit of 13.7 billion VND in Q4/2023, resulting in a full-year profit of 10.2 billion VND for 2023, a decrease of 68% compared to the performance in 2022.
