Novaland shares hit the ceiling because of this information

Accordingly, from the beginning of the trading session on February 20, the price of NVL shares of Novaland Real Estate Investment Joint Stock Company (Novaland) was strong, and by the end of the session, it had increased to the ceiling (nearly 7%), up to 10,100 VND/share.

Along with NVL, many other stocks on the floor also remained green, helping the market continue to increase points and the VN-Index is heading towards the 1,300 point mark.

Specifically, VN-Index closed the session on February 20 up 4.42 points, reaching 1,292 points. Liquidity was positive when the transaction value on HOSE reached over 16,200 billion VND.

Regarding NVL, this stock increased sharply after the news that Novaland's Lakeview City project (Thu Duc City) will be approved by the National Assembly to resolve the problems related to determining the time to calculate land rent and land use fees. Novaland has the opportunity to recover thousands of billions of VND in provisions related to this project in 2025.

Resolution No. 170/2024/QH15 of the National Assembly on specific mechanisms and policies to remove difficulties and obstacles for projects and land in the inspection and examination conclusions in Ho Chi Minh City, Da Nang and Khanh Hoa province officially takes effect on April 1.

According to this Resolution, the two land plots of 30.224ha in Binh Khanh Ward (Thu Duc City) and 30.106ha in Nam Rach Chiec (Lakeview City project - the land plot Novaland was compensated for when the state reclaimed the 30.224ha land plot for resettlement projects), have clearly stated the land price determination plan as the basis for collecting land use fees.

Accordingly, the total land rent and land use fee payable for the Lakeview City project is nearly VND 5,176 billion based on the tax authority's announcement on January 8, 2021 and will be re-determined.

For the land area exchanged corresponding to the amount of money the investor has invested in this 30.224ha land plot up to 2008, the time to determine the land price is the time of completion of land recovery and compensation for the 30.224ha land plot in Binh Khanh ward (2008).

For the land area for which land use fees have not been paid, the time for determining land price is the time when the competent state agency issues a decision to allocate land for the 30.106ha Nam Rach Chiec land area (2017).

Cổ phiếu Novaland tăng kịch trần vì thông tin này- Ảnh 1. — Lakeview City Project

With this decision, from April 1, Ho Chi Minh City departments and agencies will organize the implementation according to the order and procedures to thoroughly handle and remove difficulties and obstacles for the Lakeview City project. When the land rent and land use fees of the Lakeview City project are specifically determined, Novaland will have the basis to fulfill the financial obligations of this project, as a basis to proceed to issue certificates to project residents in the soonest time.

In particular, the provision of VND 4,358 billion for the Lakeview City project for Novaland's 2024 audited semi-annual financial report, according to the auditor's own opinion, will be adjusted and reversed when eligible in 2025. This is the basis for Novaland to have a strong source of cash to implement upcoming business plans, as well as ensure the fulfillment of obligations to related parties.

The removal of obstacles at the Lakeview City project is the result of the direction of the Government and ministries, departments and branches, contributing to creating trust for the business community in the Government's general policy in directing drastic removal of legal obstacles for projects with remaining problems.

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