On the morning of July 30, 2024, Quoc Cuong Gia Lai Joint Stock Company (stock code QCG) held its 2024 Annual General Meeting of Shareholders (AGM). The main topic of interest at this meeting was the proposal to elect Mr. Nguyen Quoc Cuong as a member of the Board of Directors for the 2022-2027 term, replacing Ms. Nguyen Thi Nhu Loan.
Recently, the Business Registration Office, Department of Planning and Investment of Gia Lai Province also issued a new "business registration certificate" for Quoc Cuong Gia Lai. Accordingly, General Director Nguyen Quoc Cuong (nicknamed "Cuong Dola", born in 1982) officially took on the role of the company's legal representative, replacing his mother, Ms. Nhu Loan. Currently, Mr. Nguyen Quoc Cuong owns 537,500 QCG shares (equivalent to 0.2% of the capital), while his wife, Dam Thu Trang, does not own any shares.
It is known that the replacement of senior personnel at Quoc Cuong Gia Lai took place after Ms. Nhu Loan was prosecuted and detained on July 19 to serve the investigation of the act of "Violating regulations on management and use of state assets causing loss and waste." Ms. Loan is accused of violating the law in the transfer of the 39-39B Ben Van Don project, Ward 12, District 4, Ho Chi Minh City.
During the discussion at the meeting, the issue that shareholders were most concerned about was the court ruling on the amount of VND 2,880 billion that Quoc Cuong Gia Lai had to pay to Van Thinh Phat. Shareholders questioned whether, after paying the money, the project could be reclaimed. Would Quoc Cuong Gia Lai's appeal to reduce half of the payment to Van Thinh Phat be accepted?
Mr. Nguyen Quoc Cuong stated that regarding the Phuoc Kien project (Nha Be District), the company had received over VND 2,880 billion from Sunny Land Company - related to Ms. Truong My Lan. However, after the Van Thinh Phat case was exposed, the court ordered the return of the above amount to ensure Ms. Truong My Lan's execution of the sentence.
Currently, due to the case, all red book documents are frozen and cannot be used as collateral for any other loans. Therefore, when Quoc Cuong Gia Lai pays off VND 2,800 billion, the project will be reclaimed, and the company will have plans to continue the project in a suitable direction, Mr. Nguyen Quoc Cuong said.
Mr. Nguyen Quoc Cuong also shared with shareholders that despite the recent unfortunate events at Quoc Cuong Gia Lai, everything is still under investigation. This does not affect the company, and in his role as General Director, Mr. Cuong assured that he would strive to keep the company running smoothly.
Currently, Quoc Cuong Gia Lai has VND 4,900-5,000 billion in debt on VND 9,000 billion in capital, which is a large number. But according to Mr. Cuong, based on the financial report, the interest expense the company is currently paying is only about 3%, around VND 300 billion. Therefore, the debt is not a pressure for Quoc Cuong Gia Lai in the near future. The company's health is very good and not worrisome.
According to the meeting documents previously announced, Quoc Cuong Gia Lai targets net revenue of VND 1,300 billion and pre-tax profit of VND 100 billion, respectively 3 times and 20 times higher than the previous year.
The leadership aims to complete the 1/500 planning adjustment for the Marina Da Nang project and carry out procedures to sell products in the fourth quarter. At the same time, the company will put into operation the 6 commercial floors of the Giai Viet project (District 8, Ho Chi Minh City) in the third quarter of this year; continue to exploit commercial space at other projects.
Additionally, Quoc Cuong Gia Lai plans to generate revenue from rubber latex; complete the transfer of 3 hydropower plants; and complete divestment from the associated company - Quoc Cuong Lien A Joint Stock Company. The company will finalize the legal aspects of unfinished projects with high feasibility and transfer inventory at the projects.
Regarding QCG shares of Quoc Cuong Gia Lai, after the incident of Ms. Nguyen Thi Nhu Loan's arrest, the shares were heavily affected, continuously being sold off with 7 consecutive floor price drops. However, the company's shares have unexpectedly reversed, hitting the ceiling price for 2 sessions before the meeting and are trading at VND 7,240 per share in the morning session of July 30.
