Ms. Nguyen Thi Nhu Loan's family lent Quoc Cuong Gia Lai hundreds of billions of dong.
Her son has withdrawn from his leadership role, but Ms. Loan's family still has many "karmic ties" with Quoc Cuong Gia Lai Company.
The Board of Directors of Quoc Cuong Gia Lai Joint Stock Company (stock code: QCG) has just approved the resignation of Mr. Nguyen Quoc Cuong with two positions: member of the Board of Directors for the 2017-2021 term and Deputy General Director. Mr. Cuong was born in 1982, the son of Ms. Nguyen Thi Nhu Loan, Chairwoman and General Director of QCG.
The complete withdrawal of the Chairman's son from all positions related to QCG took place in the context of the company's operations facing many difficulties, especially the failed purchase of public land and the problems surrounding Phuoc Kien Residential Area. However, this move did not reduce the "fate" between the family of Chairwoman Nguyen Thi Nhu Loan and Quoc Cuong Gia Lai when the company was still borrowing hundreds of billions of VND from Ms. Loan's family.
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A corner of the 32-hectare land plot that Quoc Cuong Gia Lai "failed" to buy from a company under the City Party Committee. Photo:Tuyet Nguyen |
Compared to many businesses operating in the same real estate business sector, the bank debt ratio of Quoc Cuong Gia Lai Joint Stock Company (stock code: QCG) is in the low group, accounting for less than 5% of total capital. However, the amount payable to related parties, mainly borrowed from members of the board of directors, amounts to nearly VND 2,300 billion, equivalent to nearly 20% of total capital. Of these, the majority are loans related to the family of Chairwoman Nguyen Thi Nhu Loan.
According to the financial report for the first 9 months of the year, Quoc Cuong Gia Lai is "borrowing" more than 1,400 billion VND from individuals. Of which, relatives of Chairwoman Nguyen Thi Nhu Loan alone are creditors of hundreds of billions of VND.
Ms. Loan is lending QCG 251 billion, Ms. Loan's younger sister - Nguyen Thi Anh Nguyet lent 360 billion, Ms. Loan's daughter - Nguyen Ngoc Huyen My lent more than 147 billion, Mr. Ho Viet Manh - Ms. Loan's brother-in-law - also lent the company more than 45 billion VND. Two individuals related to Board of Directors member Lai The Ha also lent Quoc Cuong Gia Lai more than 400 billion VND.
If we ignore the story of operating capital, the business picture of this enterprise is also not bright. The third quarter business results of this unit show the most dismal numbers in the past 2 years. Net profit reached less than 1.3 billion VND, down 130 times compared to the same period last year. The profit is extremely modest compared to the equity of over 4,000 billion VND and total assets worth nearly 12,400 billion VND.
The reason for the decline in business results was explained by the company that no projects were handed over during the period, so no revenue was recorded. At the same time, the company did not have any significant income from financial investments. This situation was similar to the previous quarter (Q2), when they were involved in a scandal over the failed purchase of 30 hectares of public land from Tan Thuan Company.
The company's cumulative net profit over the past 9 months has only reached over 40 billion VND, still far from the pre-tax profit plan of 320 billion VND approved at the beginning of the year.
As of September 30, 2018, the company's total inventory value was recorded at VND7,296 billion, mainly real estate projects under construction. The company's key project in the past decade, Phuoc Kien Residential Area, Nha Be District, Ho Chi Minh City, accounted for the largest proportion of inventory, estimated at over VND4,800 billion.
