Why is Quoc Cuong Gia Lai under audit suspicion of continuous operation capability?

Quoc Cuong Gia Lai Joint Stock Company (MCK: QCG) announced its consolidated financial report for 2025, with revenues of 242.6 billion VND, a 272.1% increase from the previous year. The net profit reached 10 billion VND, improving from a loss of 16.6 billion VND in the same period last year. However, the auditor pointed out two issues raising doubts about the company’s ability to continue operations. Firstly, 74.3 billion VND in the “Other Receivables” section relates to an apartment complex project awaiting a decision from the HCMC People’s Committee. Secondly, total short-term debt of 3.814.9 billion VND dwarfs total short-term assets of only 1.844.1 billion VND, indicating significant financial risk. Notably, a 2.782.8 billion VND debt associated with judicial enforcement obligations weighs heavily on the company. Nonetheless, management has developed a business plan and is confident in meeting debt obligations, hence the report is still based on the assumption of going concern.