Novaland at annual general meeting: ‘Completed restructuring of majority of debts, overcoming legal bottlenecks, and continuing with key projects.’

Thursday, Apr 25, 2024 15:00

No Va Land Investment Group Corporation (HoSE: NVL, “Novaland”) on Thursday held its 2024 annual general meeting of shareholders.

At the meeting, Novaland reported on its operations in 2023, sought approval for its business goals for 2024 and presented a strategic road map for the coming years.

Despite ending fiscal year 2023 with many challenges, Novaland recorded total consolidated net revenues of VNĐ4.8 trillion (US$189 million) and net after-tax profit of VNĐ486 billion.

Of its consolidated net revenues, those from real estate sales were worth nearly VNĐ4.1 trillion from handovers at projects including NovaWorld Phan Thiết, NovaWorld Hồ Tràm, Aqua City, Palm City, Lakeview City, Saigon Royal, and other central real estate projects.

The Coastal Economic Tourism and Entertainment Metropolis NovaWorld Phan Thiết. — Photo courtesy of Novaland

Revenues from services topped VNĐ667 billion. 

The shortfall in targeted revenues was due to a decrease in real estate sales as a result of the market slump, which needs more time to be overcome.

On the other hand, after-tax profit was higher than the target mainly due to the company's efforts at debt restructuring, cost optimisation and other financial activities during the restructuring period.

Novaland’s unbilled revenues as of December 31, 2023, were nearly VNĐ240 trillion from projects in which it is the investor or co-developer.

The several positive results from its bond and other debt restructuring include a decrease in payables of VNĐ7.2 trillion, an agreement for restructuring its $300 million convertible bonds and the value of domestic bond maturity extension under Decree 08/2023/NĐ-CP totaling VNĐ9.2 trillion.

No Va Land Investment Group Corporation's annual general meeting at PGA NovaWorld Phan Thiết. -- Photo courtesy of Novaland
The company has completed the conversion of VND2.3 trillion worth of bonds into equity.

It has successfully negotiated with bondholders and contractors to exchange their claims for products amounting to some VNĐ2.5 trillion in debt obligations.

For 2024, Novaland presented to shareholders targets including consolidated revenues of VNĐ32.6 trillion and after-tax profit of VNĐ1.1 trillion. 

For funding in 2024, it expects to raise VNĐ16 trillion for project development and business operations.

On April 22, Novaland also submitted to its board of directors a plan for issuance of shares worth more than VNĐ11.7 trillion to existing shareholders between the second and fourth quarters this year after obtaining the usual approvals from regulators.

At the same time, focusing on Environmental - Social - Governance (ESG) goals towards developing a sustainable real estate ecosystem, Novaland has strengthened its corporate governance to ensure compliance across the group and mitigate risks.

The company’s governance model is decentralised, with operations streamlined and management-level personnel empowered.

With the support of the Government and localities in removing legal bottlenecks to its projects recently, Novaland has been making every effort to raise funds from various sources to complete ongoing projects steadily to hand over to customers. 

The company is currently considering and negotiating with several potential strategic partners plans to transfer a number of projects to support debt restructuring and enhance its investment portfolio in the most effective way.

Bùi Thành Nhơn – Chairman Novaland Group delivers the openning speech at the AGM. -- Photo courtesy of Novaland

This year key revenue centres (Aqua City, NovaWorld Phan Thiết, NovaWorld Hồ Tràm, and HCM City) will be prioritised, both in terms of the development pipeline and destination making investments in theme parks, hospitality, etc. to build up traffic and communities, deliver concrete financial results for stakeholders and develop local tourism.

Construction of these projects resumed in the second quarter of 2023 and we expect new launches there to begin by the fourth quarter of 2024.

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