Quoc Cuong Gia Lai's QCG shares 'hit the floor': What is the cause?

At the end of the trading session on November 19, QCG shares of Quoc Cuong Gia Lai Joint Stock Company (HoSE: QCG) hit the floor early, the market price dropped to 12,400 VND/share, matching more than 1.89 million units, with the remaining floor price selling price remaining at nearly 244,300 units.

This negativity is believed to be influenced by information related to the company auditing the company's financial statements.

According to previous developments on November 18, Quoc Cuong Gia Lai announced that it had received an official dispatch from the State Securities Commission regarding the 2023 Financial Statements audited by DFK Vietnam Auditing Company Limited.

The State Securities Commission said that the auditors of DFK Vietnam Auditing Company Limited have not fully performed the audit procedures and have not collected enough audit evidence to give a qualified audit opinion. Therefore, the auditors who signed the 2023 Financial Statements of Quoc Cuong Gia Lai will be suspended.

In the 2023 Financial Statements, DFK Vietnam Auditing Company Limited expressed its opinion: “ In our opinion, the accompanying consolidated financial statements give a true and fair view, in all material respects, of the consolidated financial position of Quoc Cuong Gia Lai as at December 31, 2023, as well as the consolidated results of its operations and consolidated cash flows for the fiscal year, in accordance with Vietnamese accounting standards, the Vietnamese corporate accounting regime and relevant legal regulations on the preparation and presentation of consolidated financial statements ”.

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In addition, in the 2024 Semi-Annual Financial Report, DFK Vietnam Auditing Company Limited will continue to audit the Financial Report of Quoc Cuong Gia Lai.

In addition, also related to the auditing unit, previously on November 12, 2024, the State Securities Commission issued decisions to suspend the status of approved auditing company, the status of approved auditors for public interest entities in the securities sector for DFK Vietnam Auditing Company Limited and auditors of DFK Vietnam Auditing Company Limited, Moore AISC Auditing and Informatics Services Company Limited.

In particular, the status of an audit firm approved to audit public interest entities in the securities sector until December 31, 2024 for DFK Vietnam Auditing Company Limited is suspended due to audit quality not meeting the requirements as prescribed in Point c, Clause 1, Article 13 of Circular No. 183/2014/TT-BTC dated December 4, 2014.

Suspend the status of auditors approved to audit public interest entities in the securities sector until December 31, 2024 for auditors Nguyen Anh Tuan, Le Huy Binh and Nguyen Van Tan of DFK Vietnam Auditing Company Limited;

In addition, the State Securities Commission also decided to suspend the status of auditor approved to audit public interest entities in the securities sector from the effective date of this Decision until December 31, 2024 for Auditor Phan Duc Danh of Moore AISC Auditing and Informatics Services Company Limited.

Regarding the business situation in the third quarter of 2024, the company achieved revenue of 178 billion VND, an increase of 166% over the same period, and profit after tax increased by 148%, reaching 25.3 billion VND.

Thanks to this result, Quoc Cuong Gia Lai escaped the loss situation in the first 9 months of the year, recording a profit after tax of 8.7 billion VND, compared to a loss of 3.2 billion VND in the same period last year.