QCG, a prominent Vietnamese company, has released its financial report for the second quarter, revealing a significant decline in revenue compared to the previous year. With a revenue of only VND 26 billion, the company experienced a 41% decrease.
QCG attributes the decline to challenges in the real estate market, low electricity production, and recent investments in rubber plantations that have not yet reached full productivity.
The company suffered a net loss of VND 16.4 billion in the second quarter, marking the heaviest loss in 12 years. In the first half of the year, QCG’s revenue plummeted by 69% to VND 65 billion, resulting in a net loss of VND 15 billion.
QCG experiences its heaviest loss since 2012.
As of June 30, QCG’s total assets stood at VND 9,300 billion, with inventory accounting for over VND 7,000 billion. The company’s cash balance was nearly VND 28 billion, while the operating cash flow turned negative at over VND 160 billion.
Additionally, QCG faces short-term liabilities of over VND 4,100 billion, constituting almost 90% of its total debt. This includes amounts received from Sunny Island for the North Phuoc Kien Residential Area project, payments to third parties, and related-party payments.
On July 19, Vietnam’s Ministry of Public Security announced the arrest and prosecution of Ms. Nguyen Thi Nhu Loan, CEO of QCG, on charges of violating regulations on the management and use of state assets, resulting in waste and loss.
The decision is part of an ongoing investigation into a case involving Vietnam Rubber Group, Dong Nai Rubber Company, Ba Ria Rubber Company, the Ministry of Natural Resources and Environment, and related units concerning a plot of land in District 4, Ho Chi Minh City.
At QCG’s second shareholder meeting, the new CEO, Mr. Nguyen Quoc Cuong (Ms. Loan’s son), shared the company’s goals for the year. These include completing the 1/500 planning adjustment for the Marina Danang project and initiating sales in the first quarter of 2025. QCG also aims to commence operations of six commercial floors in the Giai Viet project in the third quarter and continue to exploit commercial spaces in other projects.
Furthermore, QCG plans to generate revenue from rubber plantations, complete the transfer of three hydropower plants, and divest from its associated company, Quoc Cuong Lien A Joint Stock Company. The company will also focus on finalizing legal procedures for feasible stalled projects and selling inventory in various ventures.
