Chairman Bui Thanh Nhon affirmed that NVL has completed the restructuring of most debts, focused on legal settlement, and continues to implement key projects.

On April 25, 2024, No Va Real Estate Investment Group Joint Stock Company (HoSE: NVL, “Novaland”) held the 2024 Annual General Meeting of Shareholders.

Reporting at the congress, the Board of Directors said that at the end of the fiscal year 2023, with many difficulties, Novaland recorded a total consolidated net revenue of nearly VND 4,757 billion and nearly VND 486 billion in consolidated profit after tax.

Total consolidated net revenue includes revenue from sales and service provision fees. Of which, net revenue from sales reached nearly 4,090 billion VND, recorded from handovers at projects such as NovaWorld Phan Thiet, NovaWorld Ho Tram, Aqua City, Palm City, Lakeview City, Saigon Royal and other projects. Other central real estate; Revenue from service provision reached 667 billion VND.

The fact that revenue is lower than the target Novaland submitted to the General Meeting of Shareholders in June 2023 is due to a decrease in real estate transfer revenue, caused by decreased market confidence and it takes a long time to recover as before. This. On the other hand, profit after tax was higher than the target mainly due to the Company’s efforts to restructure debt, optimize operating costs and from financial activities during the restructuring period.

As of December 31, 2023, Novaland’s unrecorded revenue reached nearly 240 trillion VND comes from projects where Novaland is the Investor and is cooperating in development.

The Board of Directors also said that some positive results from debt and bond debt restructuring activities include the Company reducing debt by about VND 7,156 billion compared to 2022, and the agreement to unify the method. The restructuring project related to convertible bonds has a total value of 300 million USD, the total value of extension of principal payment of domestic bonds according to instructions in Decree 08/2023/ND-CP reached over 9,200 billion VND.

Notably, the Company completed a bond swap transaction worth VND 2,346 billion with equity in a project. In addition, the Company also succeeded in agreements to swap bonds and debt values ​​with the Group’s products with a total value of about VND 2,500 billion.

For the 2024 plan, Novaland presented the Congress with a consolidated revenue target 32,587 billion VND and Profit after tax 1,079 billion VND. With capital in 2024, the Company is expected to mobilize VND 16,000 billion from financial institutions to develop projects and business activities. Recently, on April 22, 2024, Novaland submitted to the Board of Directors a plan to issue shares worth more than 11,700 billion VND to existing shareholders. The expected offering time is in the second quarter of 2024, after the State Securities Commission issues the Certificate of registration for public offering of shares according to regulations.

At the same time, focusing on Environment – Society – Governance (ESG) goals towards developing a sustainable real estate ecosystem, Novaland has been strengthening its corporate governance model to strictly control compliance across the Group and minimize risks. Novaland’s governance model is built towards the goals of clear decentralization, minimizing overlap and promoting the capacity of management personnel.

With the attention and support of the Government and localities in promoting the legal clearance of projects in recent times, Novaland has strived to promote the mobilization of many different capital sources to continue strongly implementing projects. Construction activities to complete products and projects under development to continue handing over to customers. The company also considered and negotiated with a number of potential strategic partners on plans to transfer some projects to restructure debt as well as improve the investment portfolio in the most effective way.

This year, main revenue-generating projects such as Aqua City, NovaWorld Phan Thiet, NovaWorld Ho Tram and housing projects in Ho Chi Minh City will be focused on development plans and destination creation activities such as Investing in amusement park and resort accommodation facilities…, thereby attracting a large number of residents and tourists and bringing specific financial results to relevant parties, while contributing to development. local tourism. Construction of these projects has been restarted in the second quarter of 2023 and it is expected that new product funds will be introduced to the market from the fourth quarter of 2024.

At the Congress, Mr. Bui Thanh Nhon, Chairman of the Board of Directors of Novaland Group shared: “Up to today, Novaland has basically completed restructuring domestic and foreign debts and bonds, and the Company’s assets. The company will still balance its debt. In the coming time, the Group will continue to restructure finances and resources, strictly improve legal regulations, change strategies, focus on core business, and streamline the department. machine, participate in the ESG action roadmap”.

Speaking at the congress, Mr. Dennis Ng Teck Yow – General Director of Novaland also said that Novaland will continue to develop essential ecosystems that provide infrastructure for new tourist destination urban areas in its development strategy. long-term. Novaland is committed to only developing effective projects that go along with community and local development values. The Group gradually implements a roadmap towards sustainable development, ESG.

Q&A section

Shareholders: Please let the Board of Directors know how Novaland plans to rebuild projects? Where does the money come from to build and is the construction guaranteed to be handed over to the customer?

Novaland General Director Dennis Ng Teck Yow: The Grand Manhattan project has resumed construction since April 2023 with the support of TPBank. Currently, the project has completed handing over the resettlement part, the remaining part has been roofed.

In addition, we are also urgently rebuilding projects, specifically the Hanaba Island and Wonderland subdivisions at NovaWorld Ho Tram, and a few subdivisions at NovaWorld Phan Thiet funded by Military Bank (MB). from May 2023.

Projects in the center of Ho Chi Minh City are also being rebuilt such as Victoria Village and Sunrise Riverside. The Aqua City project is also expected to build a number of subdivisions with the funding support of VPBank.

Currently, the Company is making every effort to negotiate and continue working with domestic banks and contractors to maintain project development activities to ensure the delivery schedule in each phase for each project. Home buyers. With other projects/subdivisions that are also in the Company’s plan, banks are considering and will sponsor rolling implementation in the near future.

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