In six months, Novaland reduced its debt by more than 9,000 billion VND.

On June 22nd, Nova Real Estate Investment Group Joint Stock Company ( Novaland ; HoSE: NVL) held its 2023 Annual General Meeting of Shareholders. The company is currently striving to implement a comprehensive restructuring with specific plans.

According to information presented at the general meeting, Novaland's representative stated that the company's consolidated outstanding debt as of March 31, 2023, was only VND 62.7 trillion, a decrease of VND 9 trillion compared to September 30, 2022.

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

Ending 2022 with many challenges, Novaland recorded consolidated total revenue of nearly VND 11,151 billion, a decrease of 25.5% compared to the same period in 2021, achieving only over 30% of the set target and nearly VND 2,182 billion. Consolidated after-tax profit decreased by 36.8% compared to the same period in 2021 and only achieved 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 due to increases in inventory and short-term receivables.

For its 2023 plan, Novaland aims for revenue of VND 9,531 billion and after-tax profit of VND 214 billion.

A representative from Novaland stated that this target is somewhat conservative given the unfavorable market conditions. Amidst numerous difficulties and challenges, since the end of 2022, Novaland has collaborated with reputable professional partners, domestic experts, and leading consulting firms such as YKVN, Deloitte, E&Y Parthenon, KPMG… to strive for comprehensive restructuring with specific plans, including debt deferral, asset sales to reduce debt, debt-to-equity conversion, and cash flow control…

Looking ahead to 2024-2025, Novaland plans to launch two more urban real estate projects in Ho Chi Minh City and one satellite urban project near Ho Chi Minh City. The company has also outlined specific plans for project development and construction, prioritizing projects nearing completion to continue delivering products to customers.

In addition, the company is continuing to review land holdings, divest from land plots not prioritized for development to reduce debt, and negotiate and arrange shareholder financing for projects to be developed in the near future.

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

For other projects and subdivisions, banks are also surveying and considering providing phased funding for implementation in the coming period.

Mr. Bui Thanh Nhon, Chairman of the Board of Directors of Nova Group, shared: “In this crisis, in the context of a lack of operating funds, and with banks tightening capital and sales revenue, we are ready to accept all losses, all difficulties and obstacles. We will do our best and are committed to making every effort to compensate our customers and shareholders. For Novaland, customers are always number one, something we have strived for and cherished for over 30 years.”

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