Quốc Cường Gia Lai stock hits ceiling as court case and audit flags loom; 2025 revenue declines but net profit doubles on financial income

On the morning trading session on April 10, Quốc Cường Gia Lai’s (QCG) shares continued to hit the ceiling at 15,400 đồng per share, with nearly 680,000 shares placed at the ceiling bid, pushing the stock to its highest level this year.

Stock ceiling amid ongoing legal proceedings

QCG shares have been hitting the ceiling continuously during the trial period related to misconduct involving the transfer of more than 6,000 square meters of land at 39-39B Ben Van Don. The case involves former chairwoman Nguyen Thi Nhu Loan.

At the April 9 trial, the Ho Chi Minh City Prosecutor’s Office proposed a sentence of 24-30 months in prison with probation for Ms. Loan for violations of regulations on management and use of state assets causing loss and waste. The agency cited mitigating factors, including that Ms. Loan has made significant charitable contributions and has largely remedied the consequences, so isolation from society is not necessary.

2025 performance: revenue fell, profit doubled

For full-year 2025, Quốc Cường Gia Lai reported revenue declined versus the previous year, while after-tax profit reached more than 171 billion đồng, double the 2024 figure. The company attributed the improvement mainly to financial income in the fourth quarter.

Compared with the company’s annual plan, QCG did not meet its targets. The company set revenue of 2,000 billion đồng and pre-tax profit of 300 billion đồng, but actual results were only about 24% of the revenue plan and 70% of the profit plan.

Auditor UHY raised several issues for attention, including matters related to going concern.

Balance sheet pressure and auditor concerns

As of December 31, 2025, the company’s current assets were a little over 2,240 billion đồng, while short-term debt totaled more than 3,920 billion đồng.

The large gap is mainly attributed to an obligation to repay more than 1,680 billion đồng related to a land purchase contract for the Bắc Phước Kiển residential project in Ho Chi Minh City. The repayment obligation is tied to securing enforcement of a court judgment in the case involving Truong My Lan.

According to the auditors, this situation indicates material uncertainty that could cast significant doubt on the company’s going concern.

Another issue noted by the auditors is that Quốc Cường Gia Lai is involved in a case under investigation related to the land parcel 39-39B Ben Van Don, District 4, in the former Ho Chi Minh City area.

Shareholding and related transactions

It is reported that former chairwoman Nguyen Thi Nhu Loan has paid more than 230 billion đồng to remedy the consequences of the “golden land” Ben Van Don case.

Ms. Loan, who has been with Quốc Cường Gia Lai since 1994, is among the most prominent real estate business figures in the Southern market. She has held multiple roles, including chairwoman of the board and CEO. In 2022, she stepped away from the chair role to take on the CEO position. In 2024, when the 39-39B Ben Van Don case was indicted, she left the CEO post and her son Nguyen Quoc Cuong returned to take over.

Despite limited stock trading, Ms. Loan remains the largest shareholder of Quốc Cường Gia Lai with nearly 102 million shares, equivalent to 37.5% of charter capital. At the current market price of around 14,000 đồng per share, her stake is valued at about 1,467 billion đồng.

Loans to the company

Even though trial information has circulated since April 7, QCG shares have remained green on the market.

While Quốc Cường Gia Lai is reported to be arranging funds to repay Mrs. Truong My Lan, it also lent her 11 billion đồng.

Within the company’s shareholder structure, Ms. Loan’s son—CEO Nguyen Quoc Cuong—currently holds just over 537,000 shares (about 7.7 billion đồng). Her daughter Nguyen Ngoc Huyen My owns more than 39.38 million shares, worth about 567 billion đồng. Her husband, Lau Duc Duy, is also a notable shareholder with more than 10.5 million shares, worth about 151 billion đồng. These individuals are reported to be among those who frequently lend the company hundreds of billions.