What was Quoc Cuong Gia Lai's optimistic goal before the shareholders' meeting failed?

Ms. Nguyen Thi Nhu Loan - General Director of Quoc Cuong Gia Lai - Photo: DN Website

On June 30th, Quoc Cuong Gia Lai Joint Stock Company (QCG) held its 2024 annual general shareholders' meeting.

According to current regulations, the general shareholders' meeting must be held annually within four months of the end of the fiscal year.

Although organized quite late, today's QCG congress was still unsuccessful.

The reason is that the proportion of shareholders attending only represents more than 18% of charter capital, so it is not eligible to proceed.

The number of shareholders attending the meeting who meet the eligibility requirements must exceed 50% of the total voting rights.

A company representative stated that Ms. Nguyen Thi Nhu Loan, the general director, was not in good health and therefore unable to attend.

This unforeseen circumstance caused QCG's general meeting to be postponed to a later date as per regulations.

According to the company's annual report, Ms. Nguyen Thi Nhu Loan owns more than 101.9 million QCG shares, accounting for 37.05% of the company's charter capital.

As of March 31, Quoc Cuong Gia Lai's total assets reached VND9,515 billion. The company's cash balance was about VND30 billion. The company recorded more than VND5,161 billion in liabilities, of which VND4,300 billion was in short-term loans and financial leasing debt.

Quoc Cuong Gia Lai aims for a profit of 100 billion VND, with a monthly salary of 7 million VND for its executives.

According to documents provided before the general meeting, the QCG board of directors plans to present to shareholders a business plan for 2024 with the goal of achieving net revenue of VND 1,300 billion, pre-tax profit of VND 100 billion, and no dividend distribution.

This is considered a relatively optimistic target as the revenue of VND1,300 billion is 3 times higher than the actual level in 2023. The pre-tax profit target of VND100 billion is 20 times higher than last year's figure, a high level in recent years.

For the real estate sector, this enterprise aims to complete the adjustment of the 1/500 planning of the Marina Da Nang project for sales this year, and at the same time put into operation 6 commercial floors of the Giai Viet project (HCMC), continue to exploit the commercial area of ​​the projects...

In the first quarter of 2024, Quoc Cuong Gia Lai recorded nearly 39 billion VND in revenue, down 77% over the same period, and net profit reached only nearly 1.4 billion VND.

At this general meeting, QCG also plans to elect Ms. Ha Thi Thu Thuy (born in 1981) as an additional independent member of the company's board of directors. This addition aims to meet future corporate governance standards.

Previously, on June 18th, the QCG board of directors received a resignation letter from Ms. Trinh Thi My Hanh, citing personal reasons. The consideration and approval of Ms. Trinh Thi My Hanh's resignation from the board of directors was supposed to be discussed at the shareholders' meeting (June 30th).

Another important item considered at this general meeting was the payment of remuneration for 2023 to members of the board of directors and supervisory board, which was to be implemented through a resolution of the 2023 Annual General Meeting of Shareholders.

Accordingly, the board of directors plans to propose the payment of remuneration to board members at 7 million VND per month each, and to the supervisory board at 5 million VND.

Regarding Quoc Cuong Gia Lai, in the first-instance judgment of the case involving Van Thinh Phat Group, the judging panel also ordered the company to return the entire amount received from Ms. Truong My Lan, which is 2,882.8 billion VND.

Subsequently, Quoc Cuong Gia Lai appealed part of the first-instance judgment. The company argued that the first-instance court's ruling compelling the company to repay 2,882.2 billion VND to Ms. Truong My Lan to secure the execution of the judgment was incorrect and biased.

Based on the contract with Sunny Island, Quoc Cuong Gia Lai Company said it only has the obligation to pay back 1,444.1 billion VND.

Recently, Ms. Nguyen Thi Nhu Loan also sent a document to the State Securities Commission clarifying matters related to the land plot at 39 Ben Van Don.

This is the land where the Investigation Police Department of the Ministry of Public Security (C03) issued a decision to prosecute and temporarily detain Mr. Le Quang Thung - former General Director of the Vietnam Rubber Industry Group - and many accomplices at this group to investigate the act of "violating regulations on the management and use of state assets causing losses and waste" when public land was transformed into private land.

Regarding compliance with legal regulations in the transfer of ownership, Quoc Cuong Gia Lai affirms that all buying, selling, and transferring transactions, business activities, and business results arising during the period are declared, accounted for, and reported by the company in accordance with regulations and accounting standards...

Source: https://tuoitre.vn/muc-tieu-lac-quan-cua-quoc-cuong-gia-lai-ra-sao-truoc-khi-dai-hoi-co-dong-bat-thanh-202406302008318.htm