No Va Real Estate Investment Group Corporation - Novaland (code NVL) has just announced its financial report for the third quarter of 2024 with a record profit of more than VND 2,950 billion, 21.6 times higher than the same period thanks to a sharp increase in financial revenue.

At the end of September, Novaland 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.

The main reason is that NVL must make provisions and increase financial costs as requested by the auditor for land rent, land use fees payable according to the 2017 land price plan and late payment fees for the project of more than 30 hectares in Nam Rach Chiec, An Phu ward, Thu Duc city (instead of 2008).

NVL also had to reassess the exchange rate difference of payables with foreign currency balances and losses from liquidating subsidiaries. The independent auditor even expressed an opinion on Novaland's going concern assumption.

Novaland announced record high profits in the third quarter in the context of NVL shares at a historic low, around VND10,000/share and having to add collateral for the trillion-dong bond lot at the request of bondholders. NVL shares have also been put on warning due to late submission of the audited semi-annual financial report for 2024.

According to regulations, the financial report for the third quarter of 2024 is self-prepared and unaudited.

This also means that there will be no adjustments to these numbers. Auditing is only involved in the fourth quarter and full year reports.

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Novaland recorded a total debt of VND59.9 trillion. Of which, the total outstanding bond debt is nearly VND39 trillion. Photo: NVL

Financial activities remain the mainstay

According to Novaland's explanation, the sharp increase in third-quarter profit was mainly due to an increase in financial revenue compared to the same period last year, including the financial revenue for the first 6 months of 2024 that the auditor adjusted down in the semi-annual review report of more than VND 3,045 billion. Novaland said the group had completed the actual collection in the third quarter of 2024.

Besides, the decrease in financial expenses from 1,288 billion VND in the same period to more than 319 billion VND also contributed to NVL's profit.

According to the report, Novaland recorded revenue in the third quarter of 2024 of more than VND 2,010 billion, compared to VND 1,073 billion in the same period last year.

In the first 9 months, Novaland's total consolidated revenue was nearly VND4,295 billion (higher than VND2,740 billion in the same period) from several large projects. Of which, nearly VND3,739 billion was real estate transfer revenue.

Due to heavy losses in the first half of the year, after review, accumulated 9 months, NVL still lost nearly 4,377 billion VND.

Total assets by the end of September were over VND232,000 billion. Short-term loans were nearly VND37,700 billion, long-term loans were nearly VND22,200 billion. Of which, total outstanding bonds were nearly VND39,000 billion.

NVL also recorded taxes and payables to the State increasing 8 times compared to the beginning of the year, up to 7,800 billion VND.

According to NLV, by the end of September 2024, NovaWorld Phan Thiet project (Binh Thuan) had more than 1,200 villas handed over, of which more than 600 had completed interior and put into operation; NovaWorld Ho Tram project ( Ba Ria - Vung Tau ) had handed over more than 400 villa products; Aqua City project (Dong Nai) had handed over more than 650 townhouses to customers.

NVL shares recently fell to a low of VND10,000/share, compared to over VND18,000/share in early April and nearly VND90,000/share (adjusted price) in September 2022.

Immediately after announcing huge profits in the third quarter of 2024, Novaland sent a dispatch to the Securities Commission requesting to remove the warning for NVL shares.

Previously, NVL shares were on the list of non-margin lending by HoSE due to the company's delay in disclosing audited semi-annual financial statements for 2024.

On October 30, this stock recovered slightly and closed at 10,700 VND/share.

On September 6, NovaGroup completed the sale of more than 3 million NVL shares, thereby reducing the ownership ratio of the group of shareholders related to Mr. Bui Thanh Nhon to less than 39% of capital at Novaland.

Since the beginning of the year, NovaGroup has net sold more than 36 million NVL shares. In the past 2 years, the group of shareholders related to Mr. Nhon has reduced their ownership of more than 400 million NVL shares.

Novaland changed from profit to loss of more than 7,300 billion VND after audit Novaland, chaired by Mr. Bui Thanh Nhon, has just reported its business results for the first 6 months of 2024 after audit with a loss of 7,327 billion VND, instead of a profit of 345 billion VND as previously reported.