Ms. Do Thi Phuong Lan, a member of Novaland's Executive Advisory Board, said that major shareholders related to Mr. Bui Thanh Nhon continuously sold shares but not to flee.
At the annual meeting held this afternoon in Phan Thiet, some shareholders of No Va Real Estate Investment Group (Novaland) questioned the board of directors about the sharp decline in stock prices since last year and why major shareholders are continuously selling.
According to Ms. Lan, NovaGroup - the largest shareholder of Novaland - registered to sell a large number of shares to serve the restructuring of the company's debts. Of which, a large number of shares held by NovaGroup were sold for liquidation.
keep commitments to bondholders in some bond lots.
"NovaGroup and Chairman Bui Thanh Nhon's family have returned to directly manage Novaland with the spirit of facing difficulties and challenges and not avoiding them, so there has been no escape," Ms. Lan replied.
Ms. Lan reassured shareholders that short-term stock prices depend on many factors such as investor confidence in macroeconomic foundations such as exchange rate management policies, interest rates, inflation, and cash flow into the market. According to her, after the most difficult 6 months, Novaland's situation is improving, as shown by a sharp decrease in outstanding debt, legal problems starting to be resolved, and supportive macroeconomic factors.
Ms. Do Thi Phuong Lan sits next to Mr. Bui Thanh Nhon (second from right) at the annual meeting on the afternoon of June 22. Photo: NVL
Also in this afternoon's meeting, Mr. Bui Thanh Nhon apologized to customers, investors, partners, contractors, suppliers, laid-off employees and parties affected by short-term liquidity difficulties.
"We are ready to bear all losses and are always aware of our responsibility to fulfill our financial and product commitments to customers, investors and partners. Please give us time," said Mr. Nhon.
According to Mr. Nhon, the comprehensive restructuring effort has shown positive signs. The consolidated outstanding debt as of the end of March was about VND62,700 billion, down VND9,000 billion compared to half a year ago. Currently, the company has more than VND251,000 billion in unrecorded revenue from projects in the process of completing legal procedures. He is confident that production and business activities will soon recover in the third quarter of this year.
The head of Novaland added that the company is re-prioritizing projects that are about to be completed to hand over products to customers and choosing projects with high liquidity to speed up legal procedures to catch up with the market recovery. In the coming period of 2024-2025, the company plans to implement two more real estate projects in Ho Chi Minh City and one satellite urban project near Ho Chi Minh City.
Novaland aims to reduce its profit this year by nearly 15% compared to last year, reaching VND9,531 billion. This year's after-tax profit is expected to decrease by nearly 90%, reaching VND214 billion, the lowest level in the past 8 years. The company said it will not pay dividends for last year or this year, although undistributed profit is about VND13,000 billion.
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