Novaland reduces 8,122 billion VND in debt after 18 months, profits 345 billion VND in the second quarter of 2024
Novaland has completed the restructuring of most of its debts after a long period of restructuring, while recording positive changes in the financial situation, project legality, and construction progress.
Nearly 20,500 billion VND was extended
No Va Real Estate Investment Group Joint Stock Company (Novaland; HoSE: NVL) has just announced its consolidated financial report for the second quarter of 2024 and recorded a total consolidated revenue of VND 7,056 billion, including revenue from sales, service provision and financial activities. Profit after tax was recorded at nearly VND 345 billion.
Net revenue from sales reached nearly VND 1,891 billion, up 37% over the same period last year, recorded from the handover of projects such as: NovaWorld Phan Thiet, NovaWorld Ho Tram, Aqua City, Palm City, Lakeview City...; net revenue from providing services reached VND 355 billion.
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| At NovaWorld Ho Tram, the Contractor is simultaneously implementing many items, accelerating construction progress, expecting to put many utilities into operation in August 2024. |
As of June 30, Novaland's total outstanding debt to lenders decreased by VND8,122 billion, equivalent to 13%, compared to December 31, 2022; of which retail bond outstanding debt decreased by nearly VND3,600 billion, accounting for 44.1% of the total outstanding debt reduction.
In addition, nearly VND 20,500 billion of total outstanding debt from foreign loans and privately issued bonds of Novaland has also reached consensus on extension and has a handling plan.
Some major debts include the official completion of restructuring of an international convertible bond package worth a total of 300 million USD, with the bond maturity extended to 2027.
A representative of Novaland Group said that currently, 14/16 projects in the Group's ongoing project clusters are continuing to be built with a total construction limit of VND 12,100 billion and are being disbursed in phases.
In addition, many large contractors agreed to construct in advance and receive payment after the product is sold to accompany Novaland during this difficult period.
This helps Novaland's projects to be completed early to hand over products to customers and have cash flow to pay off due debts, while contributing to changing the local appearance and avoiding wasting social resources.
“The total value of completed and handed over products as well as new sales is estimated at nearly 480,000 billion VND,” Novaland said.
September to restart Cu Lao Phuoc Hung Commercial Service Urban Area
Providing more information about the progress of key projects, Novaland said that at the central project cluster of Ho Chi Minh City, Novaland has made efforts to coordinate with parties to resolve legal issues and achieved some positive results.
In particular, The Grand Manhattan project is awaiting the final conclusion after the Government working group and Ho Chi Minh City authorities paid attention to legal issues. Tower B1 of the project has been topped out and Tower B2 is expected to be topped out in the second half of 2024, and will start handing over products from the second quarter of 2025.
In addition, more than 1,200 certificates of ownership for low-rise apartments, condos... in the Sunrise Riverside project (Southern Ho Chi Minh City), Victoria Village (Thu Duc City) have been handed over to residents from June 2024 to the end of 2024.
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| Aqua City completes the landscape, internal and external facilities, gradually completing the livable urban area in the East of Ho Chi Minh City. |
The four towers of the Victoria Village high-rise complex are still under construction and are expected to be handed over in the fourth quarter of 2025. Since July 20, the last two towers, G6 and E2, of Sunrise Riverside have begun handing over apartments to residents.
At Aqua City (Dong Nai), with the Government's attention and efforts to coordinate with relevant agencies to resolve legal difficulties, it is expected that by early August 2024, the partial adjustment of the Bien Hoa City Master Plan for Area C4 and part of the urban area west of the Bien Hoa - Vung Tau Expressway will be completed.
In September 2024, Cu Lao Phuoc Hung Commercial Service Urban Area will restart land leveling and construction of technical infrastructure when the planning steps are completed.
The project has currently delivered 516 products in the subdivisions. Many subdivisions of the project are continuing to be completed and are expected to begin delivering an additional 891 products in the last 6 months of 2024.
At NovaWorld Ho Tram (Ba Ria - Vung Tau), by the end of the second quarter of 2024, 381 products in The Tropicana and Wonderland phases had been handed over to customers and put into operation for rent with an occupancy rate of about 50% on weekdays and up to 90% on weekends.
From now until the end of 2024, Habana Island, The Tropicana, Binh Chau Onsen... will continue to build a series of projects and hand over 243 products. In the coming time, more than 12 attractive amusement park projects will be put into operation, such as Wonder Museum, Habana Water Park, Pirate Park, Beach Club, Wonder Water Park, Ocean Park... to enhance the experience for visitors, contributing to promoting local economic tourism.
For NovaWorld Phan Thiet (Binh Thuan), the project has completed the 1/500 detailed planning, with 1,111 products handed over, operating more than 500 villas and more than 100 villas are completing interior construction to exploit business, meeting peak season demand with room occupancy rate of up to more than 90%.
In the near future, when the 2024 Land Law comes into effect, the project will soon have specific land prices determined as the basis for calculating land rent, construction and handover of 820 products to residents in parallel with the completion and operation of a new chain of utilities such as: The Museum; Jack & Bean theme parks, Fantasy Park... in a total of nearly 40 entertainment and park items invested here.
The positive results in 18 months of comprehensive restructuring and the goal of completing construction and handing over 2,600 products in the last 6 months of 2024 are a great effort by Novaland to fulfill its commitment to customers, restore investor confidence, and contribute to promoting sustainable market development.
Novaland representative said that there are still many difficulties in the market and challenges in liquidity and legal progress. In order to recover business activities soon, it is necessary to have thorough direction from the Government, agencies and departments as well as continued support from financial partners and customers in the coming time.
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