Novaland targets revenue of over VND 32,500 billion, has completed debt restructuring

In 2024, Novaland set an expected revenue target of more than VND32,500 billion, an increase of nearly 7 times compared to last year. The company also said that it has completed restructuring its domestic and foreign loans and bonds. No Va Real Estate Investment Group Joint Stock Company (Novaland; HoSE: NVL) has just announced documents for the 2024 Annual General Meeting of Shareholders, scheduled to be held at the NovaWorld Phan Thiet Project (Phan Thiet City, Binh Thuan Province) on the afternoon of April 25. This year, the company set an expected revenue target of more than VND32,500 billion, an increase of nearly 7 times compared to the result achieved in 2023 of VND4,757 billion. Profit after tax is expected to be VND1,079 billion, an increase of 122% compared to the figure in 2023 of VND486 billion. The company plans not to pay dividends in 2023, retaining all remaining undistributed after-tax profits of VND 13,494 billion. The company also has no plans to pay dividends in 2024. Regarding the investment plan, this year, the company plans to continue to complete/hand over a series of projects. In Ho Chi Minh City, there are The Grand Manhattan (District 1), Vitoria Village, Palm Marina (Thu Duc City), Park Avenue (District 11), Sunrise Riverside (Nha Be District). In Dong Nai, Novaland continues to implement the Aqua City, Aqua Riverside City, Aqua Waterfront City, Aqua Marina City, Aqua City Phoenix Island projects (sub-areas 1,2,3,4,5). In addition, there are NovaWorld projects in Ba Ria - Vung Tau and Phan Thiet. In the message to shareholders in the 2023 annual report, Mr. Bui Thanh Nhon, Chairman of the Board of Directors of Novaland , affirmed that up to this point, Novaland has basically completed the restructuring of domestic and foreign loans and bonds, and the company's assets are still balanced with its debts. "The legal settlement of the projects is slower than expected, causing Novaland to fail to fulfill its commitments to customers. This is a huge loss that affects Novaland's brand reputation and the Group must try to overcome it step by step by all means," Mr. Nhon shared. Providing more information about the operating situation, Mr. Ng Teck Yow, General Director of Novaland, said that in 2023, Novaland handed over 563 products from many projects. Accumulated for 12 months, the company recorded a total consolidated net revenue of VND 4,757 billion and a profit after tax of VND 486 billion. Of which, net revenue from sales reached nearly VND 4,090 billion, recorded from the handover of projects such as NovaWorld Phan Thiet, NovaWorld Ho Tram, Aqua City, Palm City, Lakeview City, Saigon Royal and other central real estate projects; Net revenue from providing services reached VND 667 billion. The lower revenue compared to the target submitted by Novaland to the General Meeting of Shareholders in June 2023 was due to a decrease in real estate transfer revenue, caused by a decline in market confidence and the need for more time to recover as before. In addition, the higher profit after tax than the set target mainly came from the company's efforts to restructure debt, optimize operating costs and from financial activities during the restructuring period. As of December 31, 2023, the Group's total assets reached more than VND 241,486 billion, down 6.3% compared to the total assets as of December 31, 2022. Inventories recorded VND 138,935 billion, of which the value of land funds and projects under construction accounted for 93.3% (equivalent to VND 129,574 billion), the rest was completed real estate and real estate goods, completed real estate waiting to be handed over to customers. The Company is also considering and negotiating with a number of potential strategic partners on the transfer of a number of projects to restructure debts as well as improve the investment portfolio in the most effective way. In addition, the legal settlement of the projects is slower than expected, causing Novaland to fail to fulfill its commitments to customers. This is a huge loss, affecting Novaland's brand. Therefore, the company must try to overcome this step by step, continue to focus on legal issues, complete products and projects under development to continue to hand over to customers. The company hopes that authorities at all levels will understand and continue to support the quick resolution to specific results. Previously, Novaland announced information related to the proposal to restructure the convertible bond package worth 300 million USD with an interest rate of 5.25% due in 2026 to be converted into common shares. Accordingly, the total number of bondholders participating in the agreement responding to the voting proposal is 25. The total outstanding bond balance of bondholders participating in the agreement who voted for the settlement agreement is 284 million USD, or 95.11% of the maximum outstanding bond balance. The bondholder group also pledged not to require Novaland to immediately pay interest and principal in the near future. At the same time, they will not sell or transfer part or all of the bonds to a third party, unless the buyer also agrees to the new agreement. At the same time, bondholders can also convert the bonds into NVL shares. The initial conversion price is VND40,000 per share. After the majority of bondholders agree to the above plan, Novaland plans to submit the settlement agreement documents to the Singapore International Commercial Court (SICC) for approval. If successful, the Company will complete the restructuring of the debt of 300 million USD. Source: https://baodautu.vn/novaland-dat-muc-tieu-doanh-thu-hon-32500-ty-dong-da-hoan-thanh-tai-co-cau-no-d212370.html