In 6 months, Novaland reduced debt by more than 9,000 billion VND

On June 22, No Va Real Estate Investment Group Joint Stock Company (Novaland; HoSE: NVL) held its 2023 Annual General Meeting of Shareholders. The company is currently making efforts to carry out comprehensive restructuring with specific plans.

At the meeting, a representative of Novaland said that the company's consolidated debt as of March 31, 2023 was only 62.7 trillion VND, a decrease of 9 trillion VND compared to September 30, 2022.

In 6 months, Novaland reduced debt by more than 9,000 billion VND - 1 — Novaland's 2023 Annual General Meeting of Shareholders.

Ending 2022 with many challenges, Novaland recorded a total consolidated revenue of nearly VND 11,151 billion, down 25.5% over the same period in 2021, reaching only over 30% of the set target and nearly VND 2,182 billion. Consolidated profit after tax decreased by 36.8% over the same period in 2021 and reached only over 33% of the set target. Total consolidated revenue includes revenue from sales and service fees.

At the end of 2022, Novaland's total assets reached nearly VND 258,000 billion, an increase of nearly 28% compared to the beginning of the year, mainly increasing in inventories and short-term receivables.

For the 2023 plan, Novaland sets a revenue target of VND 9,531 billion and after-tax profit of VND 214 billion.

Novaland representative said that this target is somewhat cautious when the market is not developing favorably. In the context of many difficulties and challenges, since the end of 2022, Novaland has coordinated with professional, reputable partners, domestic experts and leading consulting units such as YKVN, Deloitte, E&Y Parthenon, KPMG... to make efforts to carry out comprehensive restructuring with specific plans, deferral, sale of assets to reduce debt, conversion of debt into shares, into assets, control of cash resources...

In the coming period of 2024-2025, Novaland plans to implement two more urban real estate projects in Ho Chi Minh City and one satellite urban project near Ho Chi Minh City. The company also sets out specific plans for project development and construction activities, re-prioritizing projects that are about to be completed to continue handing over products to customers.

In addition, the company is continuing to review land funds, divest land funds that have not been prioritized for development to reduce debt and negotiate and arrange shareholder capital for projects that will be developed in the near future.

In the second quarter, central projects in Ho Chi Minh City such as The Grand Manhattan (District 1), Victoria Village (Thu Duc City) and the urban areas of NovaWorld Phan Thiet, NovaWorld Ho Tram, Aqua City were also restarted with the support of major financial partners such as TPBank, MBBank... and experienced contractors and construction units.

For other projects and subdivisions, banks are also surveying and considering funding for rolling implementation in the coming time.

Mr. Bui Thanh Nhon, Chairman of the Board of Directors of Nova Group shared: “In the crisis, in the context of no operating money, capital and sales money being tightened by banks, we are ready to accept all losses, all difficulties and obstacles. We will do our best, committed to making efforts to compensate customers and shareholders. For Novaland, customers are always number 1, something we have strived and cherished for over 30 years”.

Thy Hue

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