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“Shareholder Meeting: Considering Multiple Payment Installments to Reclaim the Bac Phuoc Kien Project”

17 May, 2025

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Opening the congress, General Director Nguyen Quoc Cuong shared that from a small enterprise, QCG has now grown into a company contributing thousands of billion VND to the state budget and creating thousands of jobs over three decades of operation.

“What we have achieved today is the result of countless efforts, sweat, and tears, and even at times sacrificing personal freedom to protect and preserve the company,” said an emotional Mr. Cuong.

Mr. Cuong repeatedly emphasized the sacrifices and dedication of the company’s founder, Ms. Nguyen Thi Nhu Loan. “Even when flying, she only flies economy class instead of business class. All her life, Ms. Loan has dedicated to Quoc Cuong, sacrificing personal time and freedom,” Mr. Cuong expressed to his mother at the AGM.

Discussion

Shareholder: Why does the company have little debt? Is it because we cannot borrow, or because we don’t want to borrow?

General Director Nguyen Quoc Cuong: This is also something that many shareholders are concerned about. There are two parts to this: first, the reason why the company doesn’t borrow, and second, the ability to raise capital in the future.

The company is not unable to borrow, but we choose not to, especially in the context of a volatile market and unclear legal framework for large projects.

In the period of 2016-2017, the company had a very large deal with Sunny Island related to the Phuoc Kien project, with an advance transfer amount of up to VND 2,882 billion. At that time, we had high expectations for long-term cooperation and believed that everything would go as per the contract. However, after a few initial payments, the partner failed to continue their financial obligations, and this deal became a major obstacle that lasted for years. This experience made the Management Board, especially Ms. Nguyen Thi Nhu Loan – the company’s founder – even more cautious.

As the market shows no positive signs, we are even more reluctant to borrow to avoid being dependent on any financial institution. Therefore, the option of using borrowed funds is excluded by QCG.

Regarding the second point about whether QCG can borrow and raise capital, the answer is yes. With our current total assets, large land fund, and gradually improving legal framework, we are eligible to borrow from banks, issue bonds, or call for additional investment. However, we will only borrow when it is truly necessary and when we have a clear plan for cash flow, project feasibility, complete legal framework, and specific sales and collection plan. At that time, not only banks but also institutional investors at home and abroad will be willing to accompany us. We are not afraid to borrow or raise capital, but only when the risks are acceptable and the financial benefits are clear.

Shareholder: What is the breakdown of the VND 2,000 billion revenue target for 2025?

Mr. Nguyen Quoc Cuong: We plan to achieve the VND 2,000 billion revenue target for this year from three main sources: VND 900 billion from handling and divesting hydropower projects; VND 700 billion from phase 1 of the Marina Da Nang project, with 37 units under construction and sales permission; and the remaining VND 400 billion from handling inventory of apartment products.

Shareholder: What is QCG‘s strategy in the rubber sector?

Mr. Nguyen Quoc Cuong: Currently, the company owns about 2,000 hectares of rubber plantations in operation. In previous years, due to low rubber prices, the business efficiency was not very promising. At present, although rubber prices are showing positive signs, we don’t know if this trend will last. We still need more time to observe and evaluate the long-term trend. With our current agricultural land area, we do not rule out the possibility of converting part of the rubber plantation model to other crop models to increase the value of the Group’s agriculture segment.

Shareholder: Why is it necessary to change the company’s name?

Mr. Nguyen Quoc Cuong: After 30 years of operation, we are considering changing the company’s name. When established, the company had a certain form, aspiration, and dream. Now, as the country enters a new era with many cooperation opportunities at home and abroad, we want to change to a shorter, more concise, and more spreadable name to domestic and foreign partners. The name “Quoc Cuong Gia Lai” is not easy for foreigners to remember and pronounce, so a change is necessary in the context of new integration.

Shareholder: What is QCG‘s ownership percentage in the projects?

Mr. Nguyen Quoc Cuong: QCG currently owns nearly 65% of the Marina Da Nang project, 100% of the 6B Pham Hung project (Binh Chanh), 100% of the Lavida Plus project, 43.8% of the Da Phuoc Residential Area project (Pham Gia project), 34% of the Song Da Riverside project (National Highway 13), and 100% of the Phuoc Kien project.

Shareholder: Which projects is QCG implementing?

The Marina Da Nang project had revenue from phase 1 in 2017-2018, and the remaining part of phase 1 is under construction and will generate revenue this year. That is certain.

The Lavida Plus project is generating revenue from inventory sales. If we receive the remaining land to implement the next block, revenue will come in the next 12 months (Q2 of next year).

For the 6B Pham Hung project, the company has been pursuing it for a long time, and many customers have bought land and are waiting. The latest document sent to the Department of Natural Resources and Environment of Ho Chi Minh City on May 15, 2025, was to determine the financial obligations. The project still has 200 social housing units waiting for approval from the Department of Construction.

The Pham Gia, Song Da Riverside, and Phuoc Kien projects are expected to generate revenue in the next 2-3 years.

Shareholder: Is it possible to implement the Phuoc Kien project by ourselves?

Mr. Nguyen Quoc Cuong: Phuoc Kien is an extremely large-scale project. It is true that QCG implementing this project alone would be a bit overwhelming in terms of our current capacity. This is one of the few remaining projects in the South of Saigon, connecting to all directions: to Can Gio, to the Mekong Delta, and to Long Thanh Airport on the expressway. With an area of nearly 100 hectares, the project has more than 1.5 million square meters of floor area (including both low-rise and high-rise). This scale is equivalent to 50% of the Phu My Hung project, which took more than 30 years to fill.

During the implementation process, we want to ensure a high occupancy rate for our products instead of developing and selling at all costs, only to have the project become a waste of society like many large urban areas today.

Shareholder: Is there any connection between QCG or Chairman Lai The Ha and the Hodeco deal to sell the Dai Duong tourist area project in Vung Tau?

Mr. Nguyen Quoc Cuong: QCG is completely unrelated to this project. If there is any related information, it is only related to individuals on the Board of Directors, not the official activities of QCG.

Shareholder: What is the plan to pay VND 2,882 billion to regain the Phuoc Kien project?

Regarding the payment of VND 2,882 billion for enforcement, the company is currently working with the enforcement agency and has proposed several options. One of them is to pay in installments over two years, with the first installment starting in Q3/2025 and ending in Q1 or Q2/2027. With the 2025 business plan of VND 2,000 billion in revenue, the company has to divest from the hydropower segment to have the funds to pay for the above enforcement.

In addition to the long-term payment plan until 2027, the company is considering other options, including the possibility of early payment if conditions permit.

Shareholder: How is the North Phuoc Kien project progressing?

Compared to the past, the planning has been updated with changes in the transportation system. There is a main traffic route running from the beginning to the end of the project, connecting to Dao Su Tich Street. In parallel, there is an additional transversal road, dividing the project into four parts. As of now, compensation work has reached about 85% of the total project area. With the project divided into four phases, the company can implement each small phase. Although the compensation agreement with the people always presents challenges, with ready financial resources, this is not an impossible task for the company.

Regarding the application of decrees and mechanisms to remove obstacles for real estate projects until 2031, for the Phuoc Kien project and other projects, the company has listed them in the list of projects that need to be removed according to Resolution 171. We expect that in the coming time, these mechanisms will help remove difficulties and obstacles for the project, enabling the company to implement the project as soon as possible.

At the end of the congress, all proposals were passed.

Quoc Cuong Gia Lai organizes the 2025 AGM in the afternoon of May 17 – Photo: Tu Kinh

Aiming for VND 300 billion profit, considering changing the company name after three decades

2024 marked a positive turning point for QCG with revenue reaching VND 729 billion, up 75% over the previous year, of which the real estate segment contributed VND 510 billion, 2.5 times higher than the same period last year, becoming the main pillar. Net profit surged to VND 83 billion, more than 11 times higher, and the highest since 2018.

Entering 2025, QCG sets a target of VND 2,000 billion in net revenue and VND 300 billion in pre-tax profit, up 274% and 306% respectively over the previous year. This is the highest revenue milestone so far, and the pre-tax profit is only lower than in 2010 and 2017.

One notable content at the 2025 AGM was the proposal to change the company’s name. The Management Board stated that this is to align with the new administrative context as localities are merging, as well as to facilitate transactions with partners and expand the market. The Board of Directors is authorized to decide on the new name and the time of business registration, but no later than 12 months from the date of approval.

As of 2:30 pm, the total number of shareholders and authorized representatives eligible to participate was 63, representing 66% of the total number of shares entitled to vote. Thus, the 2025 AGM of QCG was qualified to be held.

QCG sets very high revenue and profit targets for 2025

Tu Kinh

– 4:45 PM, 05/17/2025