Mountain town tycoon loses more than 3 billion after audit

According to the audited financial report for the first half of 2023 of Quoc Cuong Gia Lai , revenue was recorded at 211 billion VND, down 67% over the same period. Net profit was a loss of 14.8 billion VND, while in the first 6 months of 2022, it was 37.4 billion VND.

After deducting other expenses, QCG's after-tax profit in the first 6 months of the year recorded a loss of VND13,668 billion (profit reported in independent financial statements was -10,297 billion), while in the same period last year, it made a profit of VND29,568 billion.

According to the explanation, the company must pay the arbitration fee in the dispute between Quoc Cuong Gia Lai and Sunny Island, according to the decision from the Vietnam International Arbitration Center.

In addition, the real estate market continues to face many difficulties and unfavorable factors from previous years that have not been resolved, such as overlapping legal procedures for projects, which are still in the process of being revised and improved, so the procedures for projects have not been resolved, the company has no new products to market, and no construction projects to cooperate with.

In addition, in terms of capital, most banks continue to tighten lending sources, with outstanding loans for real estate transactions dripping, and high interest rates causing great pressure on customers and businesses.

The real estate market has many unfavorable factors as mentioned above with a sharp decrease in real estate transaction demand, limited cash flow, resulting in a decrease in revenue as well as a significant decrease in profit in the period compared to the same period last year.

In the second quarter of 2023, QCG did not record any revenue from real estate. QCG's short-term financial debt amounted to VND 4,350 billion (accounting for 81% of liabilities).

In 2023, QCG set a revenue target of VND900 billion and pre-tax profit of VND50 billion. With the business results achieved in the first 6 months of the year, QCG has only achieved more than 23% of the revenue plan and has not been able to make a profit.

Ho Chi Minh City Stock Exchange (HoSE) has just decided to add QCG shares of Quoc Cuong Gia Lai Joint Stock Company to the list of stocks ineligible for margin trading.

Business News

The stock market has a number of other important events of listed companies.

* YEG : Mr. Dao Phuc Tri, General Director of Yeah1 Group Corporation, has just submitted his resignation letter, effective September 18, with the reason of focusing on his duties as a member of the Board of Directors, building orientation and strategy in international markets.

* IDC: Idico Corporation - Joint Stock Company plans to pay interim cash dividends for 2023 at a rate of 20% (equivalent to 2,000 VND per share), the record date for shareholders is September 29, the expected payment date is October 13.

* CTD : Coteccons Construction JSC announces the closing date for receiving shares issued to increase share capital from equity capital. The last registration date to receive additional shares issued is September 29.

* VGC : Viglacera Corporation - JSC is about to close the right to pay 2023 interim cash dividend at a rate of 10%. The ex-dividend date is September 29 and the expected payment date is October 24.

* VLA: Van Lang Technology Investment and Development JSC announced that it received a decision from the Hoan Kiem District Tax Department ( Hanoi ) on administrative penalties for tax violations. The total amount of tax arrears, fines and late payment fees is more than 128 million VND.

Transaction information

* VND : Ms. Vu Nam Huong, CFO of Vndirect Securities, sold all 728,000 VND shares she owned, at a rate of 0.06% from September 11 to September 13, using the order matching method.

* TKC : Mr. Le Dai Nghia, Chairman of the Board of Directors of Tan Ky Construction and Real Estate Trading Joint Stock Company, registered to sell all of his more than 782,000 shares. The transaction is expected to take place from September 19 to October 18 by negotiation and order matching.

* FPT : Mr. Do Cao Bao, member of the Board of Directors of FPT Corporation, registered to sell 2.25 million shares from September 21 to October 20, by negotiation and order matching.

* TRT : Mr. Dong Tuan Vu, Chairman of the Board of Directors of RedstarCera JSC, sold all of his more than 577,000 shares on September 11. After the transaction, Mr. Vu no longer holds any shares at RedstarCera.

* CEN: Mr. Tran Ngoc Son, Chief Accountant of Cencon Vietnam JSC, sold all 2.1 million shares during the period from September 8-12.

VN-Index

At the end of the session on September 18, VN-Index decreased by 15.55 points (-1.27%) to 1,211.81 points. HNX-Index decreased by 2.28 points (-0.9%) to 250.48 points. UPCoM-Index decreased by 0.59 points (-0.63%) to 93.17 points.

Commenting on the market session on September 19, Vietcombank Securities (VCBS) said that in the coming sessions, the market may still experience fluctuations and adjustments, and the nearest support level is determined around the 1,200-1,210 point area.

In the positive case, if demand reappears, the market will still need 3-5 sessions to regain balance.

Investors continue to be cautious instead of buying at the bottom early and only maintain the proportion of stocks that are still attracting cash flow and maintaining support zones.

According to Yuanta Vietnam Securities, the short-term trend of the general market has been downgraded from bullish to neutral. In the short term, investors can stop buying new stocks and restructure their short-term portfolios.

Investors should still prioritize holding a high proportion of stocks in their portfolio. At the same time, at this stage, investors should pay attention to individual stocks or groups of stocks.

Quoc Cuong Gia Lai borrowed hundreds of billions of dong from leaders . In the first quarter, Quoc Cuong Gia Lai recorded loans of up to hundreds of billions of dong from individuals in the leadership.

Source