Novaland Group (NVL) promotes the sale of a series of assets, expected to earn more than 1 billion USD

Novaland Group (stock code NVL) said it is accelerating the liquidation of a series of assets with a total expected selling price of over VND25,400 billion. Of these, 7 assets have signed principle contracts for sale with a total value of over VND12,300 billion.

Novaland Group said it is coordinating with authorities to resolve legal issues and complete sales plans for NovaWorld Phan Thiet and Aqua City projects... in December 2024.

Novaland Real Estate Investment Group Joint Stock Company ( Novaland Group, stock code NVL - HoSE) has just announced that the company is liquidating assets with a total amount of over VND 25,400 billion, equivalent to 1.02 billion USD. Specifically, Novaland Group has offered for sale 15 assets in the first 6 months of the year. Of which, the group has successfully sold one asset and earned VND 1,000 billion. In addition, Novaland Group has signed principle contracts to sell 7 assets with a total value of over VND 12,360 billion; at the same time, signed memorandums of understanding to sell 3 other assets with a total value of about VND 9,100 billion. In addition, the group has also received letters of offer to buy 3 assets with a total value of nearly VND 2,000 billion. For products that have been and are being sold at projects such as NovaWorld Phan Thiet; Aqua City; and Grand Manhattan, Novaland Group said it is working with the Government and local authorities to resolve legal issues in order to complete the sales plan in December this year. In early April this year, Novaland Group also sold all its capital in Huynh Gia Huy Joint Stock Company for less than VND2 billion. Huynh Gia Huy Company is the investor in the NovaHills Mui Ne Resort & Villas project (Centana Mirage Resort Mui Ne) including 603 beach villas in Phan Thiet City, Binh Thuan Province. Novaland Group emphasized that the efforts to sell the above assets are aimed at restructuring cash flow to have enough resources to finance business operations.

Price movements and trading volume of NVL shares of Novaland Group from the beginning of 2024 to present. (Source: TradingView)

According to the consolidated financial report for the first half of 2024, as of the end of June 2024, Novaland Group's total assets reached VND 238,800 billion, equivalent to the beginning of the year. However, cash decreased sharply to nearly VND 850 billion, and cash equivalents to VND 1,300 billion. The total value of these two items accounted for less than 1% of Novaland Group's total assets. Meanwhile, inventories and receivables increased, reaching VND 144,000 billion and more than VND 76,000 billion, respectively. Novaland Group's liabilities also exceeded VND 200,000 billion, of which financial debt amounted to VND 59,200 billion (bond balance reached VND 38,400 billion). Regarding bond debts, Novaland Group said that the group has received some initial restructuring agreements for bond debts with a total amount of more than VND 17,300 billion. In addition, the group's management board also expects to be able to disburse an additional credit limit of nearly VND 12,500 billion in the next 12 months. In terms of business operations, in the first 6 months of the year, Novaland Group recorded a record high consolidated loss after tax of VND 7,327 billion, in contrast to the profit of VND 345 billion in the self-made report. Source: https://tapchicongthuong.vn/tap-doan-novaland--nvl--xuc-tien-ban-loat-tai-san--du-thu-ve-hon-1-ty-usd-128111.htm