Quoc Cuong Gia Lai (QCG) - 2021 dividend payment postponed to Q3 2025
On June 24, 2023, the General Meeting of Shareholders of Quoc Cuong Gia Lai Joint Stock Company (QCG) was held with some notable information. In particular, QCG set a net revenue target of VND 900 billion in 2023, down 29% compared to 2022. Although revenue decreased, the pre-tax profit target was VND 50 billion, up 13% over the same period.
Regarding the dividend payment plan, QCG said it will not pay dividends in 2022 because it needs to use 2022 profits as investment capital for unfinished projects due to the current very limited borrowing situation.
Quoc Cuong Gia Lai (QCG) postpones dividend payment for 2021 until 2025 (Photo TL)
Regarding the 2021 dividend, the Board of Directors of Quoc Cuong Gia Lai proposed to postpone the payment until the third quarter of 2025. Regarding this dividend, QCG issued Resolution 06/NQ-HĐQT on August 9, 2022 on the plan to issue shares to pay dividends. However, due to problems related to the lawsuit against Sunny Island Investment JSC, the company has not been able to complete the plan to issue shares to pay dividends.
QCG shares continuously hit the ceiling despite business results being indifferent, even going backwards.
In early June, QCG shares had 5 consecutive sessions of unusual ceiling price increases. Explaining this issue to the State Securities Commission, Quoc Cuong Gia Lai said that the consecutive ceiling price increases were due to objective reasons, beyond the control of the enterprise.
In the most recent 3 sessions on June 21, 22 and 23, 2023, QCG shares continued to record ceiling increases with trading volume up to millions of shares.
Previously, the trading history of QCG code also recorded a period of 15 consecutive ceiling price increases on February 27, 2020, causing QCG stock price to increase from VND 3,620/share to a peak of VND 10,960/share, equivalent to a 3-fold increase in price in just 15 trading sessions.
During this time, QCG did not have any notable project information announced. Even QCG's 2019 financial statements at that time recorded a 41% decrease in profit compared to the same period last year.
Revenue increased by hundreds of billions but profit was less than 1 billion VND, short-term debt is higher than equity
Regarding the business situation in the first quarter of 2023, QCG's revenue increased from 135 billion to 168 billion VND over the same period, corresponding to an increase of 24.4%. However, the cost of goods sold also skyrocketed to 150 billion VND, causing gross profit to only 16 billion. Gross profit margin also decreased from 19.9% to only 9.8%.
Expenses during the period also increased sharply, including financial expenses which increased by 55%, from 7 billion VND to 11 billion VND. The company's after-tax profit decreased by 93% compared to the same period last year, to just over 900 million VND.
By the end of the first quarter of 2023, QCG's total assets reached VND 9,734 billion, a slight decrease compared to the beginning of the year. Cash and cash equivalents were only VND 25 billion, a decrease of nearly 68% compared to the beginning of the period. Of which, payables accounted for VND 5,394 billion, of which VND 5,095 billion was short-term debt.
It can be seen that in the asset structure of Quoc Cuong Gia Lai, short-term debt is higher than equity.
In addition, most of QCG's assets are also recorded as inventories, amounting to VND7,094 billion, equivalent to about 72.9% of total assets. The majority of which is unfinished real estate, accounting for VND6,589 billion.
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