CEO Quoc Cuong Gia Lai’s sister lent the company nearly 200 billion VND

Ms. My is the younger sister of Mr. Nguyen Quoc Cuong, General Director of Quoc Cuong Gia Lai Joint Stock Company. She was the person who lent the most money to this company in the first 6 months of the year. This amount has a term of 12 months, for the company to supplement working capital.

Quoc Cuong Gia Lai was also lent tens to several hundred billion dong by many other individuals such as Mr. Nguyen Quoc Cuong, Mr. Lau Duc Duy (Mrs. My’s husband), Chairman of the Board of Directors Lai The Ha, and Ms. Lai Thi Hoang Yen (Mr. Ha’s daughter). Most of these loans are unsecured loans with 0% interest rate or the interest rate has not been determined at the time of reviewing the semi-annual financial statements.

In the first half of this year, Quoc Cuong Gia Lai settled and reduced the outstanding balance of many old loans. The total value of financial debt thus decreased by more than 100 billion VND, to 933 billion VND.

Counting the total other debts, Quoc Cuong Gia Lai still has to pay over VND 3,000 billion. This number is a sharp decrease compared to the debt level of VND 4,000 billion at the beginning of the year. More than half of the debt is related to the amount of money that must be returned to the contract to buy and sell the Bac Phuoc Kien residential area project.

In the audited financial report in March, Quoc Cuong Gia Lai was suspected of its ability to continue operating because short-term debt exceeded the value of short-term assets. However, in the newly published report, the audit unit no longer emphasizes this issue.

The main reason is that the company has paid 1,411 billion VND out of the total 2,882 billion VND repayment obligation under the promise to buy and promise to sell contracts. The remainder is expected to be paid off this year. Funds are expected to be arranged from business activities, commitments to support from individuals and legal financial sources.

“The Board of Directors believes that the company has the ability to arrange adequate funds to pay due debts and continue operating in the future,” according to the financial report published at the end of August.

In the first half of this year, Quoc Cuong Gia Lai collected 80 billion VND, only one third of the same period. The result is still far below the target of VND 2,403 billion approved at the annual meeting in mid-year. However, thanks to unusual income from liquidation and sale of hydroelectric plants, the company reported a profit after tax of more than 181 billion VND, 18 times higher than the first half of last year.

Quoc Cuong Gia Lai was established in 1994, formerly a company specializing in providing sawn timber and exported wood products. The company then opened additional real estate, rubber, and hydroelectric businesses.