Quoc Cuong Gia Lai Joint Stock Co (security code QCG) has just released consolidated financial statements of second quarter with net sales of VND 299.3 billion, up 65% compared to the same period. After-tax profit of the company reached VND 212 billion, 8 times increase compared to the same period of 2016.
This is the highest profit of Quoc Cuong Gia Lai since its listing. This profit is almost equal to the profit of the whole year 2010 (268 billion) – profit record year of the company.
Remarkably, in the second quarter, the company had recorded VND 206 billion in financial income from the transfer of a portion of the share capital of Hiep Phu Joint Stock Company and Sparkle Value Homes Co., Ltd.
Total accumulated revenue in the first 6 months of 2016 was 568 billion dong, profit after tax was 215 billion dong, up 483% over the same period. Earnings per share also reached VND 782. However, compared with the profit target of VND 720 billion in 2017 set by the General Meeting of Shareholders, the company has just achieved 37%.
Despite “large” profit, the unusual thing in company’s operation is cash flow was negative at VND 340 billion while the company still spent VND 93 to invest in the same period. Payables also increased to VND 2,159 billion, receivables decreased VND 184 billion.
At the end of second quarter of 2017, Quoc Cuong Gia Lai’s total assets reached VND 9,681 billion, of which inventory accounted for VND6,313 billion (mostly concentrated in Phuoc Kieng project). Short-term liabilities of the company dropped sharply from VND 1,788 billion at the beginning of the year to VND 179 billion due to receiving advance transfer from Phuoc Kieng project to pay for BIDV.
Quoc Cuong Gia Lai’s annual shareholder meeting has set a revenue target of 2.500 billion dong and profit before tax of 720 billion dong in 2017. To achieve this profit, the management board of the company said that it lies in selling Phuoc Kieng project. In addition, there are 14 other real estate projects, of which are planned to cooperate with Dat Xanh Group.
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At the shareholders’ meeting taking place on June 29, Mrs. Nguyen Thi Nhu Loan, Chairman cum CEO of Quoc Cuong Gia Lai said “If the above projects’ sale is good, Phuoc Kieng project just need to cooperate, not necessary to sell 100%. If QCG sells off its land fund at present, it will not be able to generate breakthrough sales for the next period.
Closed trading on August 01, QCG stock price value is at VND 23,500, has decreased compared to the time reaching the threshold of 30,000 when the information about sale of Phuoc Kieng project was launched.
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