On April 25th, 2024, No Va Land Investment Group Corporation (HoSE: NVL, “Novaland”) held the 2024 Annual General Meeting of Shareholders. At the meeting, Novaland reported on its operations in 2023, approving business goals set for 2024 as well as presenting strategic roadmap in the upcoming years.
Ending the 2023 fiscal year with many challenges, Novaland recorded total consolidated net revenue of VND 4,757 billion and net profit after tax of VND 486 billion. Within total consolidated net revenue, net revenue from sales of real estates reached nearly VND 4,090 billion, recorded from the handover at projects including NovaWorld Phan Thiet, NovaWorld Ho Tram, Aqua City, Palm City, Lakeview City, Saigon Royal and other central real estate projects; net revenue from rendering of services reached VND 667 billion.
The lower revenue compared to the target Novaland submitted to the General Meeting of Shareholders in June 2023 was due to a decrease in revenue from sales of real estates which was strongly impacted by the current low market momentum and would require more time to recover. On the other hand, profit after tax was higher than target mainly due to the Company's efforts in debt restructuring, cost optimization and financial activities made during the restructuring period.
The 2024 Annual General Meeting of Shareholders of Novaland Group
Accumulated to December 31, 2023, the unbilled revenue of Novaland reached nearly VND 240 trillion, coming from projects of which Novaland is the investor and co-developer.
Several positive results from debt and bond restructuring activities include: a decrease in debt level of VND 7,156 billion y.o.y, an agreement on a restructuring proposal for the Group’s USD 300,000,000 convertible bonds, the value of domestic bond maturity extension under Decree 08/2023/NĐ-CP totaling at VND 9,200 billion. Notably, the Company has completed an exchange of bond obligations worth VND 2,346 billion into equity of a project. In addition, Novaland has successfully negotiated with bondholders and contractors to exchange their claims for products, amounting to approximately VND 2,500 billion in debt obligations.
Mr. Bui Thanh Nhon, Chairman of Novaland’s Board of Directors, said: Novaland has completed restructuring the majority of debts, will focus on overcoming legal bottlenecks, and continue the construction of key projects in 2024.
For the 2024 plan, Novaland presented to the General Meeting of Shareholders the targets with consolidated revenue of VND 32,587 billion and profit after tax of VND 1,079 billion. For the funding in 2024, the Company also expects to raise a total of VND 16,000 billion from financial institutions for project development and business operations. Lately, on April 22nd, 2024, Novaland also submitted to the Board of Directors the Additional Share Issuance Plan with total value of more than VND 11,700 billion to existing shareholders. The expected issuance time is within 2nd quarter of 2024, after obtaining the approval from SSC according to regulations.
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 decentralized, streamlining operations and empowering management-level personnel.
Mr. Ng Teck Yow, BOD Member - CEO of Novaland presents the ESG orientation. In 2024, the Company will continue the restructuring and participate in the ESG action roadmap.
With the attention and support of the Government and localities in removing legal bottlenecks of projects recently, Novaland has been making every effort in fundraising from various capital sources to continuously implement ongoing project completion for the handover to customers. The Company is currently considering and negotiating with several potential strategic partners for plans to transfer a number of projects to support debt restructuring as well as enhance the investment portfolio in the most effective way.
This year, key revenue centers (Aqua City, NovaWorld Phan Thiet, NovaWorld Ho Tram and HCMC projects) will be prioritized, both in terms of development pipeline and destination making investments in theme parks & hospitality, etc. to build up traffic and community, delivering concrete financial results for stakeholders and developing the local tourism. Construction of these projects has been resumed since 2nd quarter of 2023 and we expect new launches for these projects to begin by 4th quarter of 2024.
Festival season at night in The Coastal Economic Tourism and Entertainment Metropolis NovaWorld Phan Thiet. This is one of Novaland's key projects that is constantly improving its entertainment and accommodation facilities.