According to QCG's second-quarter financial report, the amount payable to Sunny Island Investment Joint Stock Company (a subsidiary of Van Thinh Phat Group) is now 2,782 billion VND.

This means the company has repaid 100 billion VND of the 2,882 billion VND debt related to the Bac Phuoc Kien residential project. This mega-project was once expected by Nguyen Thi Nhu Loan, QCG's leader from 2011 to 2016, to bring in over 12,000 billion VND in revenue and 7,000 billion VND in profit, but it remains unfinished.

The Phuoc Kien project is the reason the company has been burdened with debt for over a decade. It is still stalled due to its connection to the Truong My Lan case.

According to the initial judgment, QCG was approved by the Ho Chi Minh City People's Committee (HCMC PC) as the investor of the Bac Phuoc Kien residential project (formerly Nha Be district) with an area of over 90 hectares. In 2017, Sunny Island Investment Joint Stock Company and QCG signed a promised purchase and sale contract for this project for 2,882 billion VND.

However, disputes arose between the two parties and were resolved at the Vietnam International Arbitration Centre (VIAC). At that time, QCG won the lawsuit and was not required to refund the money received.

After the Van Thinh Phat case was prosecuted, the HCMC People's Court annulled VIAC's ruling and ordered QCG to return 2,882 billion VND to regain ownership of the Phuoc Kien project. QCG then agreed to pay over 2,800 billion VND to Truong My Lan.

Bac Phuoc Kien residential project. Photo: Quynh Tran

Bac Phuoc Kien residential project. Photo: Quynh Tran

The financial report also shows that in the first half of this year, QCG's net revenue reached nearly 243 billion VND, 3.7 times higher than the same period last year. Profit after tax was nearly 11 billion VND, compared to a loss of 17 billion VND in the same period last year.

This year, QCG aims for net revenue of 2,000 billion VND and pre-tax profit of 300 billion VND, increases of 274% and 306% respectively compared to 2024. However, after half a year, the company has only achieved 12% of its revenue target and 7% of its profit target.

As of the end of the second quarter, QCG's total assets reached 9,485 billion VND, an increase of nearly 7% compared to the beginning of the year. The company has 55 billion VND in cash. The cost of unfinished business at the Bac Phuoc Kien project alone accounts for 5,420 billion VND.

Quynh Trang