Mountain town tycoon loses over 3 billion more after audit.

VietNamNet•19/09/2023

According to Quoc Cuong Gia Lai 's audited semi-annual financial report for 2023, revenue was recorded at VND 211 billion, a decrease of 67% compared to the same period. Net profit showed a loss of VND 14.8 billion, while the first six months of 2022 saw a profit of VND 37.4 billion.

After deducting other expenses, QCG's after-tax profit for the first six months of the year recorded a loss of VND 13,668 billion (the profit reported in the self-prepared financial statement was -VND 10,297 billion), while in the same period last year it recorded a profit of VND 29,568 billion.

According to the explanation, the company had to pay arbitration fees in the dispute between Quoc Cuong Gia Lai and Sunny Island, following a ruling from the Vietnam International Arbitration Center.

Furthermore, 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 undergoing revision and improvement. As a result, project procedures remain unresolved, the company has no new products to launch, and no construction projects to collaborate on.

In addition, regarding funding, most banks continue to tighten lending, with very limited loan balances for real estate transactions, and high interest rates putting significant pressure on customers and businesses.

The real estate market faced several unfavorable factors as mentioned, including a sharp decline in real estate transactions, limited cash flow, leading to decreased revenue and significantly lower profits 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 total liabilities).

In 2023, QCG set a revenue target of 900 billion VND and a pre-tax profit target of 50 billion VND. Based on the business results achieved in the first six months of the year, QCG has only achieved over 23% of its revenue target and has not yet generated a profit.

The Ho Chi Minh City Stock Exchange (HoSE) has 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 also has several other important events for companies listed on the exchange.

* YEG : Mr. Dao Phuc Tri, General Director of Yeah1 Group JSC, has submitted his resignation effective September 18th, citing the reason of focusing on his duties as a member of the Board of Directors and developing strategies and directions in international markets.

* IDC: Idico Corporation – JSC plans to pay an interim dividend for 2023 in cash at a rate of 20% (equivalent to 2,000 VND per share), with the record date for shareholders being September 29th and the expected payment date being October 13th.

* CTD : Coteccons Construction Joint Stock Company announces the record date for receiving newly issued shares to increase its share capital from equity. The last registration date to receive additional shares is September 29th.

* VGC : Viglacera Corporation - JSC is about to finalize the entitlement to an interim dividend payment for 2023 in cash at a rate of 10%. The ex-dividend date is September 29th and the payment is expected to be made from October 24th.

* VLA: Van Lang Technology Investment and Development Joint Stock Company announced that it has received a decision from the Hoan Kiem District Tax Office ( Hanoi ) regarding administrative penalties for tax violations. The total amount of back taxes, fines, and late payment penalties is over 128 million VND.

Transaction information

* VND : Ms. Vu Nam Huong, Chief Financial Officer of Vndirect Securities, sold all 728,000 VND shares she owned, representing 0.06% of the company, between September 11th and 13th, through order matching.

* TKC : Mr. Le Dai Nghia, Chairman of the Board of Directors of Tan Ky Construction and Real Estate Business Joint Stock Company, has registered to sell all of his more than 782,000 shares. The transaction is expected to be carried out from September 19th to October 18th through negotiated and order matching methods.

* FPT : Mr. Do Cao Bao, a member of the Board of Directors of FPT Corporation, registered to sell 2.25 million shares from September 21st to October 20th, through negotiated transactions 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 11th. After the transaction, Mr. Vu no longer holds any shares in RedstarCera.

* CEN: Mr. Tran Ngoc Son, Chief Accountant of Cencon Vietnam JSC, sold all 2.1 million shares between September 8th and 12th.

VN-Index

At the close of trading on September 18, the VN-Index fell 15.55 points (-1.27%) to 1,211.81 points. The HNX-Index fell 2.28 points (-0.9%) to 250.48 points. The UPCoM-Index fell 0.59 points (-0.63%) to 93.17 points.

In its market outlook for September 19th, Vietcombank Securities (VCBS) believes that the market may still experience fluctuations and corrections in the coming sessions, with the nearest support level identified around 1,200-1,210 points.

Even in the most positive scenario, if demand returns, the market will still need 3-5 sessions to find equilibrium again.

Investors continue to maintain a cautious stance, avoiding early bottom-fishing and only maintaining positions in stocks that are still attracting capital and holding firm at support levels.

According to Yuanta Securities Vietnam, the short-term trend of the overall market has been downgraded from an upward trend to a moderate trend. In the short term, investors may stop making new purchases and restructure their short-term portfolios.

Investors should still prioritize maintaining a high proportion of stocks in their portfolios. At this stage, investors should also focus on individual stocks or groups of stocks.

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

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