Novaland "through the most difficult times", committed to compensate customers

At the 2023 Annual General Meeting of Shareholders (AGM) of No va - Novaland Real Estate Investment Group Corporation (NVL) on June 22, Novaland Chairman Bui Thanh Nhon said that this year's congress is a very special event, for the first time in 30 years of operation, Novaland has received 60,000 shareholders and is continuing to attract public investors.

Novaland Chairman shared that 2022 was a stormy year, leaving heavy losses and valuable lessons for the group. In the crisis, with no operating funds, capital and sales revenue being tightened by banks, Novaland accepted all losses, difficulties and obstacles, and committed to making efforts to compensate customers and shareholders.

In the fourth quarter of 2022 and the first half of 2023, Novaland has resolved many issues such as debt deferral, asset sale, debt conversion into shares; coordinated with international consulting organizations and leading experts to restructure and control cash flow.

*Novaland Chairman Bui Thanh Nhon at the 2023 annual general meeting of shareholders. (Photo: NVL)*

During this period, Novaland has plans for project development and construction activities, re-prioritizing projects that are about to be completed to continue handing over products to customers; choosing good projects with high liquidity to speed up legal completion steps to promptly respond when the market recovers.

Mr. Nhon also apologized to all customers, investors, partners, contractors, suppliers, laid-off employees and all parties affected by the group's incident.

According to him, in the coming time, Novaland has a strategy to focus on 3 pillars: environment - society - governance.

Regarding the environment, Novaland Group cooperates with partners to develop two green standard projects in the Mekong Delta, while pursuing environmental goals in other projects.

In terms of society, the satellite urban area Aqua City (Dong Nai province), NovaWorld Ho Tram (Ba Ria Vung Tau province), and the economic tourism resort urban area NovaWorld Phan Thiet are major projects that contribute to local development, improve the quality of life of people, create jobs and contribute to social security...

In addition, Novaland also registered to participate in building 200,000 social housing units in the Government's 1 million social housing unit program.

Regarding management, the top priority in Novaland's restructuring is to rearrange debts and repayment terms, prioritize resolving problems and fulfilling commitments to customers, creating new cash flow to restore production and business activities. The company continues to complete construction and deliver products to customers as committed.

In addition, Novaland focuses on legal solutions to ease cash flow, professionalize corporate governance according to good international practices, and meet the regulations of the Vietnamese stock market.

At the same time, businesses focus on increasing efficiency in risk management, cash flow management, transparency of financial information as well as non-financial information for investors, the market and management agencies.

The hardest part is over.

In 2023, Novaland submitted to the General Meeting of Shareholders a revenue target of VND9,531 billion and after-tax profit of VND214 billion. Novaland representative said that this target is somewhat cautious when the market is not developing favorably.

As of December 31, 2022, the group's unrecorded revenue reached more than VND 251,000 billion from projects that have been handed over, are in the process of completing legal procedures, and projects that Novaland is the investor and is cooperating in development.

In the 2024-2025 period, Novaland plans to implement two more urban real estate projects in Ho Chi Minh City and one satellite urban project near Ho Chi Minh City.

Novaland also sets out specific plans for project development and construction activities, re-prioritizes projects that are about to be completed to continue handing over products to customers; selects good projects with high liquidity, and speeds up legal completion steps to promptly respond when the market recovers.

In addition, Novaland is continuing to review land funds, divest land funds that have not been prioritized for development to reduce debt and negotiate and arrange shareholder capital for projects that will be developed in the near future.

In the second quarter of 2023, central projects in Ho Chi Minh City such as The Grand Manhattan (District 1), Victoria Village (Thu Duc City) and the large urban areas of NovaWorld Phan Thiet, NovaWorld Ho Tram, Aqua City will restart with the support of major financial partners such as TPBank, MBBank... and experienced contractors and construction units.

For other projects and subdivisions, banks are also surveying and considering funding for rolling implementation in the coming time.

In 2022, Novaland recorded total consolidated revenue of nearly VND 11,151 billion, down 25.5% over the same period in 2021, reaching only more than 30% of the set target and nearly VND 2,182 billion.

Consolidated profit after tax decreased by 36.8% compared to the same period in 2021 and only reached more than 33% of the set target. At the end of 2022, total assets reached nearly VND 258,000 billion, up nearly 28% compared to the beginning of the year, mainly increasing in inventories and short-term receivables.

Real estate 'surged', Novaland increased the ceiling price to buy up, Phat Dat suddenly changed. The real estate group continued to surge, millions of Novaland shares were bought at the ceiling price at the end of the afternoon session.

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