Some real estate projects of Novaland are being rebuilt.
On July 30, No Va Real Estate Investment Group Joint Stock Company (Novaland, stock code: NVL) shared information about the financial "health" of this real estate company.
Novaland said it will compensate customers for their losses.
Mr. Dennis Ng Teck Yow - General Director of Novaland Group - said that in the first 6 months of this year, Novaland's business results had many bright spots compared to the same period last year. Many projects have been restarted, but the progress of many projects is still slower than Novaland's plan from the beginning of the year.
However, Mr. Dennis Ng Teck Yow affirmed that Novaland has a plan for handover and construction to achieve a growth rate of 60%/year in the next 5 years. "We hope that you will continue to be patient and support us in the coming period," he said.
Regarding customers stopping working with Novaland, the company's leader said that about 10-15% of customers are facing financial difficulties, cannot work with the company, or are under pressure from the bank, so they want to stop.
Regarding the interest support that customers are paying, Novaland said that this is a "thank you" for the support from customers, then the business will deduct it in the final payment and the benefits and disadvantages that customers have suffered will be compensated.
In case customers want to change apartments, Novaland leaders said that if it is the same project or a different project but the same sponsoring bank, they will support the customer to change, if it is a different bank, they will find another solution to ensure the customer's obligations.
Expected to pay off debt in 2026
Regarding Novaland's financial "health", Mr. Duong Van Bac - Novaland's CFO - said that as of June 30, Novaland's total outstanding debt was VND 54,635 billion, down VND 8,122 billion, equivalent to 13% compared to the end of 2022 (VND 62,757 billion).
Of which, retail bond outstanding balance decreased by nearly VND3,600 billion, accounting for 44.1% of the total outstanding balance reduced. In addition, nearly VND20,500 billion of total outstanding balance from foreign loans and privately issued bonds of Novaland has also reached consensus on extension and has a handling plan.
According to Mr. Bac, Novaland plans to pay off all loans and bonds from the first or second quarter of 2026 because it is expected that during this period there will be strong cash flow to fulfill financial obligations.
In the coming time, Novaland will focus resources on completing legal procedures, construction, handover and collecting cash flow for sold products.
According to Novaland, 14/16 projects in the project clusters being implemented by this enterprise are currently continuing construction with a total construction limit of 12,100 billion VND and are being disbursed in stages.
In addition, many large contractors agree to construct in advance and receive payment after the product is sold, helping Novaland's projects to be completed early to hand over products to customers and have cash flow to pay off due debts.
The total value of completed and delivered products as well as new sales is estimated at nearly 480,000 billion VND.
According to Novaland, at the end of the second quarter of 2024, Novaland recorded total consolidated revenue of VND 5,241 billion, including revenue from sales, service provision and financial activities.
Net sales revenue reached nearly VND1,891 billion, up 37% over the same period last year. Profit after tax recorded a profit of nearly VND345 billion.
Source: https://tuoitre.vn/tong-giam-doc-novaland-mong-khach-hang-tiep-tuc-kien-nhan-20240730180553324.htm
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