Novaland's 6-month profit decreased after audit due to provisioning

Novaland's recently released semi-annual audited financial statements show a difference between before and after the audit. Specifically, Novaland's consolidated after-tax profit in the first 6 months of 2023 decreased by VND483.2 billion compared to the financial statements before the audit. The company explained that the main reason was due to provisions and income adjustments as required by the audit.

Novaland believes that the company always strictly complies with information disclosure regulations, especially the disclosure of quarterly financial reports and semi-annual financial reports.

NovaWorld Phan Thiet has put into operation phase 1, attracting a large number of tourists to visit and experience.

After nearly a year of economic difficulties and fluctuations, the domestic real estate market has seen new bright spots in the first 6 months of 2023. However, the tightening of real estate credit policies by financial institutions and the lack of recovery in market confidence continue to be major obstacles that have prevented Novaland's liquidity from being as stable as expected. This has led to a decrease in the company's revenue and profit in the semi-annual financial report.

However, this year, Novaland has scheduled to collect VND283.8 billion out of the VND483.2 billion mentioned above. In addition, currently, some of Novaland's partners have not fulfilled their financial obligations under the cooperation contract. Therefore, the company's income in the period has decreased. This income will be recorded in the next accounting period after Novaland collects the financial obligations from the overdue partners and is completed in 2023.

Also in the semi-annual financial report, the independent auditor noted Novaland's going concern assumption. Regarding this, the company has updated and transparently shared current difficulties such as the world and regional economic situation with many fluctuations, high interest rates and the post-Covid-19 impact that has not yet recovered the economy, plus legal difficulties and delays that have greatly affected the company's operations, business and liquidity.

Novaland believes that with the attention and direction of the Government and the determination of agencies and departments, legal and investment procedure problems in Novaland projects such as NovaWorld Phan Thiet, Aqua City, The Grand Manhattan... have been and are being resolved and have received positive signals. Previously, many of the company's projects were also restarted with the support of major financial partners such as TPBank, MBBank, VPBank... and experienced contractors and construction units.

Many businesses' profits evaporate after audit

Source: https://thanhnien.vn/loi-nhuan-6-thang-novaland-giam-sau-kiem-toan-do-trich-lap-du-phong-185230830145112256.htm