DQC sees plunge in profit
DQC sees plunge in profit
Dien Quang Lamp Joint Stock Company (DQC) saw a plunge in consolidated profit in the first six months of this year in general and the second quarter in particular.
According to its consolidated financial report of the first six months of 2017, DQC earned VND418.8 billion ($18.4 million) in revenue and VND61.6 billion ($27.1 million) in net profit from business operations, signifying respective decreases of 7 and 53.7 per cent on-year. The company’s after-tax profit decreased by 52.8 per cent to VND50.4 billion ($22.2 million).
In the second quarter alone, the company reported VND26.7 billion ($1.17 million) in after-tax profit, a 62.6 per cent decrease on-year.
Along with the decrease in profit, DQC's troubles also stem from the scandal of Deputy Minister of Industry and Trade Ho Thi Kim Thoa, former chairwoman of the board of directors and general director of DQC from January 2004 to May 2010.
According to newswire Vietnamnews, while serving as Secretary of the Party Committee and director of formerly state-owned DQC, then Secretary of the Party Committee, chairwoman of the board of directors, and general director of DQC from January 2004 to May 2010, Thoa was said to have violated regulations and procedures on business equitisation and misappropriated loan interest worth VND6.7 billion ($298,000) exempted by banks.
Additionally, she infringed on state regulations on land management when the company signed a contract with another company to invest in the land area at 12 Ton Dan Street in Ho Chi Minh City. She also failed to properly handle the VND30 billion ($1.3 million) collected from the transfer of land use rights.
Thoa bought more shares than the permissible level and her transfer of shares also violated the company’s regulations.
With these violations, the Party Central Committee’s Secretariat has decided to relieve Ho Thi Kim Thoa of her Party membership at the Ministry of Industry and Trade (MoIT).
At a meeting chaired by Party General Secretary Nguyen Phu Trong on August 8, the Secretariat also proposed the prime minister to dismiss Thoa from the post of Deputy Minister of Industry and Trade.
