After nearly a year full of difficulties and fluctuations in the economy, in the first 6 months of 2023, the domestic real estate market has witnessed several postive signs. However, the tightening of real estate credit policies by financial institutions and the slower-than-expected recovery in market confidence continue to be major barriers that make Novaland's liquidity not as stable as expected. This leads to a decrease in the Company's revenue and profits recorded in semi-annual financial reports.

Novaland's published audited semi-annual financial statements with differences between the pre-audit and post-audit numbers. Specifically, Novaland's consolidated after-tax profit in the first 6 months of 2023 decreased by 483.2 billion VND compared to the pre-audit version. The main reason is the provisions and the adjustment in recorded income as required by the audit. However, within this year, Novaland is expected to record a gain back in the income of VND 283.8 billion out of the VND 483.2 billion mentioned above.

NovaWorld Phan Thiet has completed phase one, attracting a large number of tourists to visit and experience it.

In addition, currently some of Novaland's partners have not fulfilled their financial obligations under the cooperation contract, resulting in a decrease in the Company's income during the period. This income will be recognized in the next accounting period after Novaland collects financial obligations from partners who are late in paying the Company.

The independent auditor also stated that a material uncertainty relating to going concern exists in the issuer's latest financial statements. In this regard, the Company has updated and transparently shared current challenges including uncertain economic variables globally and locally, high interest rates, and post-COVID-19 recession that have prevented the economy from a strong recovery. All of those difficulties with the existing legal bottleneck of real estate market have made  a significant impact on the Company's operations, business, and liquidity.

Novaland's projects are also being solved by the Government and Local Authoritsies

With the attention and direction of the Government and the determination of local Government Agencies and Departments, legal issues and investment procedures in Novaland’s projects including NovaWorld Phan Thiet, Aqua City, The Grand Manhattan, etc. have been taken into consideration with many positive signals. Previously, many of the Company's projects were restarted with the assistance of major financial partners such as TPBank, MBBank, VPBank... as well as experienced contractors and construction units.