Ms. Do Thi Phuong Lan, a member of Novaland's executive advisory board, said that major shareholders associated with Mr. Bui Thanh Nhon have been continuously selling shares, but not in an attempt to flee the company.
At the annual general meeting held this afternoon in Phan Thiet, several shareholders of Novaland Investment Group questioned the management about the sharp drop in share price since last year and why major shareholders have been continuously selling off their shares.
According to Ms. Lan, NovaGroup – the largest shareholder of Novaland – registering to sell a large number of shares is to facilitate the restructuring of the company's debts. This includes a significant amount of NovaGroup's shares being sold off through forced liquidation.
Keeping commitments to bondholders in some bond issues.
"NovaGroup and the family of Chairman Bui Thanh Nhon have returned to directly managing Novaland with a spirit of facing difficulties and challenges without avoidance, so there has been no escape," Ms. Lan replied.
Ms. Lan reassured shareholders that short-term stock prices depend heavily on factors such as investor confidence in macroeconomic fundamentals like exchange rate policies, interest rates, inflation, and market capital flows. According to her, after the most challenging six months, Novaland's situation is improving, evidenced by a significant reduction in outstanding debt, the resolution of legal obstacles, and supportive macroeconomic factors.
Ms. Do Thi Phuong Lan is seated next to Mr. Bui Thanh Nhon (second from the right) during the annual meeting on the afternoon of June 22nd. Photo: NVL
Also during this afternoon's session, Mr. Bui Thanh Nhon offered his apologies to customers, investors, partners, contractors, suppliers, laid-off employees, and all parties affected by the short-term liquidity difficulties.
"We are prepared to bear all losses and are always aware of our responsibility to fulfill all financial and product commitments to our customers, investors, and partners. Please give us time," Mr. Nhon said.
According to Mr. Nhon, the comprehensive restructuring efforts have shown positive signs. Consolidated debt as of the end of March was approximately VND 62,700 billion, a decrease of VND 9,000 billion compared to six months earlier. Currently, the company has over VND 251,000 billion in unrecorded revenue from projects undergoing legal completion. He is confident that business operations will soon recover in the third quarter of this year.
The head of Novaland added that the company is rearranging priorities for projects nearing completion to deliver products to customers and selecting projects with high liquidity potential to expedite legal procedures in order to catch up with the market recovery. Looking ahead to 2024-2025, the company plans to launch two more real estate projects in Ho Chi Minh City and one satellite urban project near Ho Chi Minh City.
Novaland aims for a nearly 15% decrease in revenue this year compared to last year, reaching VND 9,531 billion. Net profit after tax this year is expected to decrease by nearly 90%, reaching VND 214 billion, the lowest level in the past 8 years. The company stated that it will not pay dividends for either last year or this year, despite having approximately VND 13,000 billion in undistributed profits.
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