On June 22, 2023, Novaland Investment Group Corporation (HoSE: NVL, “Novaland”) held Annual General Meeting of Shareholders 2023. At the meeting, Novaland reported the business performance for the year 2022, approval of business target for 2023 as well as presented the implementation strategy for the following years.
At the end of fiscal year 2022 with many challenges, Novaland recorded a total consolidated revenue of nearly 11,151 billion VND, down by 25.5% compared to the same period in 2021, achieving only over 30% of the set target; and nearly 2,182 billion VND of Consolidated profit after tax, down by 36.8% y.o.y, only over 33% of the set target. Total Consolidated Revenue includes revenue from sales and collection of 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 in inventory and short-term receivables.
Mr Dennis – Ng Tek Yow, Novaland's CEO reads the report of the Board of Directors at the General Meeting
Regarding sustainable development activities, despite many difficulties, in 2022, Novaland has made efforts to carry out more than 80 activities through the fields of Education, Health, and Social Security and Community Development with a total funding of over VND 50 billion.
Regarding 2023 plan, Novaland proposed to the Shareholders’ Meeting a target of VND 9,531 billion in revenue and VND 214 billion in profit after tax. Novaland's representative stated that this indicator is moderately cautious when the market condition is not favorable. In the context of many difficulties and challenges, since the end of 2022, Novaland has cooperated with professional, reputable partners, domestic experts and leading consulting firms such as YKVN, Deloitte, E&Y Parthenon, KPMG, etc. to strive for comprehensive restructuring with specific plans, repayment extension, assets sales to reduce debt, debt-to-equity or debt-to-asset swap, cash flow control, etc.
According to the representative of Novaland, the company has gone through the most difficult period, aiming to restructure on the foundation of sustainable development.
Notably, as of 31 Dec 2022, Novaland's unbilled revenue of more than VND 251,000 billion comes from projects that have been handed over and under process of legal completion which are owned and co-developed by Novaland. In the period of 2024-2025, the Company plans to deploy two more urban projects in Ho Chi Minh City and one satellite urban project in the surrounding area of Ho Chi Minh City.
The Company also sets out specific plans for project development and construction activities, reorders priorities for nearly completed projects in order to continue handing over products to customers; selects good projects with high liquidity and accelerates the legal process to promptly adapt the market volatility. In addition, Novaland continues to review land bank, divest from less prioritized lands to reduce debt, and negotiate to arrange shareholder capital for projects that will develop in the near future.
In the second quarter, the central projects of Ho Chi Minh City such as The Grand Manhattan (District 1), Victoria Village (Thu Duc City) and the major urban centers of NovaWorld Phan Thiet, NovaWorld Ho Tram, and Aqua City were also restarted under the support of major financial partners such as TPBank, MBBank, etc. and experienced contractors and construction companies. Novaland's representative revealed that for other projects and subdivisions, the banks were also surveying and considering to finance and deploy respectively in the near future.
NovaWorld Phan Thiet has been put into operation in phase 1 and welcomed many residents to settle down to start business and create jobs for local workers.
In 2023, the sustainable development strategy will be the foundation for the restructuring and orientation for Novaland in the following years. Particularly, the three pillars of Environment - Society - Governance (ESG) with strategic action plan advised by DEG will be the focus for all activities of the Company in order to maximize the Company's market capitalization, ensure sustainability and harmonize benefits for customers, shareholders, investors, community, etc.
Mr Bui Thanh Nhon, Chairman of Novaland's Board of Directors shared that the three pillars of Environment - Society - Governance (ESG) will be the focus for all activities of the Company
Novaland will also ensure the implementation of sustainable development strategies and goals through restructuring and establishing committees under the Board of Directors such as the Audit Committee, the ESG Committee (Environmental, Social and Governance) – Risk Management – Strategic Management, Human Resources and Remuneration Committee. These Committees operate under a specialized, independent mechanism with rights to vote on issues under Committees’ jurisdiction and duties, consulting the Board of Directors on the basis of executive advices from leading experts and many senior managers who have worked at large corporations nationwide and worldwide, ensuring the Company to operate efficiently in line with relevant international standards in the new period.
In addition to the determination of the Board of Management and the efforts of all employees, the support of the Government and the community to the real estate market during the past time will be the driving force for Novaland to recover soon and overcome difficulties and challenges; thus continuing to complete standardized urban areas, contributing to the general renovation, economic development and social security in localities.