QCG’s Soaring Loans from Leadership Affiliates: Repayment of VND 900 Billion to Sunny Island Completed

According to the consolidated financial report for Q3/2025, Quoc Cuong Gia Lai Joint Stock Company (stock code: QCG, HoSE) recorded total assets of VND 8,761 billion, a slight decrease compared to the beginning of the year.

Cash and bank deposits stood at VND 154 billion. Inventory amounted to VND 1,178 billion, a decrease of approximately VND 100 billion from the start of the year, comprising VND 568 billion in unfinished real estate and VND 558 billion in real estate goods.

Long-term work in progress totaled over VND 5,400 billion in production and business costs, primarily tied up in the Bac Phuoc Kien residential project.

On the liabilities side, total debt reached VND 4,150 billion. Short-term financial loans accounted for only VND 157 billion, with over VND 200 billion in long-term debt.

The most significant burden for Quoc Cuong Gia Lai remains the obligations related to the Bac Phuoc Kien residential project. As of September 30, 2025, the outstanding payable to Sunny Island Investment JSC for the Bac Phuoc Kien project decreased to VND 1,983 billion.

Thus, in the first three quarters, QCG paid VND 900 billion to Sunny Island. Previously, following the ruling in the Van Thinh Phat case, Quoc Cuong Gia Lai was required to repay VND 2,883 billion to Sunny Island to regain control of the Bac Phuoc Kien project.

This project was transferred by QCG to Sunny Island between 2016 and 2017. According to the agreement, Sunny Island was to pay a total of VND 4,800 billion in installments to acquire land use rights.

However, after disbursing VND 2,883 billion, the partner halted payments, stalling the transaction. The case was later linked to the legal proceedings involving Truong My Lan and Van Thinh Phat Group.

Notably, alongside the VND 900 billion payment to Sunny Island, Quoc Cuong Gia Lai significantly increased borrowing from related parties.

By the end of Q3/2025, QCG recorded personal loans of over VND 1,100 billion, primarily from relatives of its leadership.

Of this, the loan from Ms. Lai Thi Hoang Yen, daughter of Chairman Lai The Ha, totaled VND 507 billion, an increase of VND 400 billion compared to three months prior.

Similarly, the loan from Mr. Lau Duc Duy, brother-in-law of CEO Nguyen Quoc Cuong, amounted to VND 527 billion, up VND 395 billion from Q2/2025.

In terms of business operations, Quoc Cuong Gia Lai reported net revenue of VND 111 billion in Q3/2025, a 37% decline year-over-year. Real estate contributed approximately VND 45 billion, down nearly 60% from Q3/2024. Despite this, gross profit rose by 64% due to a significant reduction in cost of goods sold.

After deducting taxes and fees, net profit after tax reached VND 24 billion, a decrease of over VND 1 billion compared to the same period last year.

For the first nine months, QCG recorded revenue of VND 354 billion, up 46%; pre-tax profit of VND 46 billion, and net profit after tax of VND 34 billion, both approximately four times higher than the same period last year. However, these figures remain far from the annual targets of VND 2,000 billion in revenue and VND 300 billion in pre-tax profit.