Quoc Cuong Gia Lai (QCG) shares lose liquidity, price drops to floor

QCG shares hit the floor after police appeared at CEO Nguyen Thi Nhu Loan's house

On the morning of July 19, 2024, many riot police, investigators, and prosecutors appeared at the villa of Quoc Cuong Gia Lai CEO - Ms. Nguyen Thi Nhu Loan. Immediately after the above information, Quoc Cuong Gia Lai's QCG stock was sold off in large numbers, pushing the selling price to the floor.

Recorded in the trading session on July 19, 2024, QCG shares turned light blue, with over 3.1 million shares remaining for sale. The 'no buy side' situation pushed the stock price down to only 9,070 VND/share.

Quoc Cuong Gia Lai (QCG) shares hit the floor after news of police appearing at CEO Nguyen Thi Nhu Loan's house (Photo TL)

Previously, in April 2024, QCG shares peaked at VND 17,850/share. The price increase was explained by the information about the court's decision reversing the transaction between Quoc Cuong Gia Lai and Sunny Island at the Bac Phuoc Kien Residential Area project.

Thus, compared to the peak reached in April 2024, QCG shares have lost more than half their value.

In May 2024, Quoc Cuong Gia Lai was said to be involved in violations at the 39-39B Ben Van Don project. This is a land area of more than 6,000 m2 of state-owned origin, managed by the Vietnam Rubber Industry Group, Ba Ria Rubber Company, and Dong Nai Rubber.

Responding to the above information, Quoc Cuong Gia Lai once affirmed that the company had received the transfer of all capital from the investor of the 39-39B Ben Van Don project for more than 464 billion VND in accordance with regulations.

Revenue dropped 77%, first 3 months of the year did not reach 1% of business plan

Regarding business activities, in the first quarter of 2024, QCG recorded net revenue of only 39 billion VND, down 77% over the same period last year.

Financial revenue was recorded at VND6 billion. Meanwhile, financial expenses increased, accounting for VND9 billion. Business management expenses accounted for VND3 billion and sales expenses VND321 million, both decreased compared to the same period due to the decline in revenue scale.

As a result, Quoc Cuong Gia Lai reported a profit after tax of only 651 million VND, down 1/3 compared to the same period last year.

Compared with the 2024 business target, expected revenue of 1,300 billion VND, pre-tax profit of 100 billion VND, currently Quoc Cuong Gia Lai has not completed 1% of the proposed business plan.

Also in June, Quoc Cuong Gia Lai had to postpone its annual shareholders' meeting. The reason was that CEO, businesswoman Nguyen Thi Nhu Loan was absent due to health reasons.

At the annual general meeting of shareholders held on June 30, 2024, the number of shareholders attending represented only 18% of voting shares, much lower than the regulations. Major shareholders Ms. Loan with 37.05% of charter capital and Ms. Nguyen Ngoc Huyen My (Ms. Loan's daughter) holding 14.3% did not attend the general meeting of shareholders.

Source: https://www.congluan.vn/co-phieu-quoc-cuong-gia-lai-qcg-mat-thanh-khoan-giam-gia-kich-san-post304108.html