Novaland from profit to loss of more than 7,300 billion VND after audit

On the afternoon of September 27, No Va Real Estate Investment Group Corporation - Novaland (code NVL) announced its audited semi-annual financial report for 2024 with a loss of VND 7,327 billion, instead of a profit of VND 345 billion as reported independently.

Also in the report, the independent auditor expressed his opinion on Novaland's going concern assumption.

According to Novaland's explanation, the main reason comes from the provision for land rent and land use fees payable according to the 2017 land price plan of the 30.106ha Nam Rach Chiec project, An Phu ward, Thu Duc city, Ho Chi Minh City. For this item alone, NVL had to adjust its after-tax profit down by VND4,358 billion.

This is the land plot for the Lakeview City project. This enterprise completed compensation and site clearance in 2008 according to the land allocation decision in 2004. However, Ho Chi Minh City later approved the land price plan for the above land plot according to the land price plan at the time of April 2017 (instead of the time of 2008). Novaland is continuing to petition the Ho Chi Minh City People's Committee and relevant departments for reconsideration.

Novaland still faces many difficulties. Photo: NVL

In addition, Novaland also made adjustments to reduce financial revenue from lending, business cooperation, and other income from contract violation penalties arising during the period due to not having been collected in cash as of June 30, according to the auditor's own opinion.

Some key projects such as NovaWorld Phan Thiet (Binh Thuan), NovaWorld Ho Tram (Ba Ria - Vung Tau) and Aqua City (Dong Nai)... are being accelerated by Novaland.

Besides, Novaland is also making efforts to restructure its finances and gradually restore its business operations.

NVL shares recently fell to near the historic low set in early 2023, below VND11,000/share on September 17. This is a very low price compared to the level of over VND18,000/share in early April and the level of nearly VND90,000/share (adjusted price) in September 2022. The current price is only slightly higher than the record low of VND10,300/share recorded at the end of February 2023.

On the morning of September 17, the Ho Chi Minh City Stock Exchange (HoSE) announced its decision to put NVL shares on warning status from September 23 because this company submitted its audited semi-annual financial statements for 2024 15 days later than the prescribed deadline.

Previously, HoSE reminded Novaland to delay announcing its separate and consolidated audited financial statements for the 2024 half-year on September 4.

On September 11, Novaland shares hit the floor after HoSE put them on the list of ineligible stocks for margin trading due to the group's delay in disclosing the audited semi-annual financial report for 2024 after 5 working days from the deadline for information disclosure.

Information that a group of shareholders related to Mr. Bui Thanh Nhon has reduced their ownership ratio at Novaland may also have a negative impact on the stock. On September 6, NovaGroup completed the sale of more than 3 million shares, thereby reducing the ownership ratio of the group of shareholders related to Mr. Bui Thanh Nhon to less than 39% of Novaland's capital. Since the beginning of the year, NovaGroup has net sold more than 36 million NVL shares.

Over the past two years, the group of shareholders related to Mr. Nhon has reduced their ownership of more than 400 million NVL shares.

Stocks hit rock bottom, what's happening to Novaland? NVL shares of Nova Real Estate Investment Group - Novaland hit a historic low set in early 2023. What's happening to the Southern real estate giant when major projects are moving positively?

Source: https://vietnamnet.vn/novaland-tu-lai-thanh-lo-hon-7-300-ty-dong-sau-soat-xet-2326635.html