Novaland reports nearly VND3.4 trillion profit in 2019

Friday, Jan 31, 2020 11:30

Giant property developer Novaland Investment Group Corporation (NVL) said it had achieved its annual target with after-tax profit rising to nearly VND3.4 trillion.

In its financial report for 2019 released yesterday, NVL said after-tax profit increased by 3 per cent.

During the year it handed over 3,468 units mostly at is main projects like The Sun Avenue, Sunrise Riverside, Richstar, Saigon Royal, Newton Residence, Orchard Parkview, and Victoria Village.

Sunrise Riverside located at Nguyen Huu Tho Street, HCM City

Debt was also restructured, with short-term liabilities reduced, NVL said.

Liabilities were worth VND65.5 trillion at the end of 2019, 72.2 per cent of it being long-term liablities, double the 2018 figure.

Another positive sign was that the group’s assets at the end of last year stood at nearly VND90 trillion, a 30 per cent rise from 2018.

Short-term assets increased by 42 per cent to over VND71.2 trillion.

In order to advance its new business strategy, Novaland last year strengthened its M&A programmes.

Under this strategy, many new projects have been developed to ensure a new and steady source of income.

Last year, in addition to developing luxury condo projects in Districts 1 and 2 in HCM City, it also launched the Aqua City, the first ecological urban area in Dong Nai Province.

Aqua City, the first ecological urban area in Dong Nai Province

In the hospitality segment, Novaland has been developing many leisure-tourism property projects like NovaWorld Mekong in the Mekong Delta, NovaWorld Phan Thiet and NovaHills Mui Ne Resort & Villas in Binh Thuan, NovaWorld Ho Tram in Ba Ria-Vung Tau, and NovaBeach Cam Ranh Resort Villas in Khanh Hoa.

These projects are predicted to bring to the market thousands of second-home products, villas and houses which are favourites with both domestic and foreign investors thanks to the high profits they fetch.

They clearly indicate the company’s prospects for sustainable development as it catches up with the latest trends to avoid the difficulties the HCM City real estate market faces.

Part of the VN30 and with convertible bonds listed on the Singapore stock exchange, Novaland is one of the prestigious brands in the global property market. In the fourth quarter of 2019, Novaland successfully raised offshore capital, which was arranged by a reputable financial institution - Credit Suisse, with a credit limit of US$600 million. In 2019, US$310 million was disbursed and the remaining of US$290 million is available for the Company’s operations in 2020.

Thanks to its sustainable development strategy, availability of unencumbered lands, deep pockets, good risk management, and scrupulous compliance with the law, Novaland will this year continue to be the most prestigious name in the Vietnamese property market.

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