Novaland earns trillions of dong from asset sales

No Va Real Estate Investment Group ( Novaland - NVL) has just announced its third quarter business results with consolidated revenue of nearly VND1,074 billion, down 67% compared to the same period last year. After-tax profit decreased by 42% to VND137 billion, breaking the loss streak of the previous two quarters.

In the first 9 months of the year, the total consolidated revenue reached VND2,740 billion and recorded a loss of VND958 billion. Revenue mainly came from sales with a value of nearly VND2,292 billion, recorded from the handover of projects such as NovaWorld Phan Thiet, NovaWorld Ho Tram, Aqua City, Palm City, Saigon Royal and other central real estate projects. Revenue from providing services reached VND449 billion.

This real estate giant recorded an inventory value of more than VND137,594 billion. The majority of which comes from the value of land funds and projects under construction with a proportion of more than 92% (equivalent to nearly VND126,818 billion); the rest is built real estate and completed goods waiting to be handed over to customers.

Notably, in the third quarter 2023 financial report, Novaland also recorded VND 2,230 billion in financial revenue, mainly from the sale of assets to restructure debt. Novaland's extraordinary financial revenue mainly came from divestment at Thanh Nhon Real Estate Investment Company Limited (nearly VND 1,179 billion); the rest was interest from investment cooperation contracts, interest on deposits/loans and other activities.

Novaland said that the restructuring activities were cleared of legal obstacles by the management agency. In August 2023, the Department of Construction of Dong Nai province issued an official dispatch allowing future real estate to be put into business for low-rise houses in subdivisions I and V of the Aqua City project, continuing to invest in construction and sales for items in accordance with the approved detailed planning.

The NovaWorld Ho Tram project ( Ba Ria - Vung Tau ) is also being strongly directed by the Provincial People's Committee to speed up legal procedures. The NovaWorld Phan Thiet project (Binh Thuan) has completed adjusting the detailed planning 1/500 for all items for the entire project and adjusting the form of land rental payment from annual to one-time payment.

Projects in the center of Ho Chi Minh City have also been receiving attention and receiving many positive signals in removing legal obstacles and investment procedures.

By the end of September, this southern real estate giant recorded total assets of more than VND249,000 billion, a slight decrease of 3% compared to the beginning of the year. Most of which was inventory value of nearly VND138,000 billion and short-term receivables of nearly VND56,500 billion.

On the other side of the balance sheet, total liabilities decreased by 9% compared to the beginning of the year to around VND205,000 billion, including financial loans of nearly VND59,000 billion.

The company currently has a charter capital of over 19,500 billion and undistributed profits of nearly 12,900 billion VND.

With trillions deposited in banks, tycoons narrowly escape losses. Many real estate, industrial park, insurance, fertilizer... tycoons are heavily dependent on bank deposit interest to save their financial indicators from getting worse.

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