CORPORATE MANAGEMENT
Corporate governance (“CG”) includes a system of regulations, rules, policies with the aim of orienting business activities, operations and management over 5 aspects: Ensuring a rational governance structure; Ensuring an effective operation of the BOD, the Board of Supervisors; Ensuring rights of shareholders and related people; Ensuring a fair treatment among shareholders; Transparency in all business activities. The effective corporate governance helps promote operations and improve production - business efficiency, make business operation transparent, mitigate risks for investors and ensure fair treatment among investors, which set the foundation for competiveness and reputation of company, and thereby facilitating access to capital markets, developing financial markets and promoting economic growth.
RISK MANAGEMENT
Risks always exist in the process of doing business. Novaland aims to control risks to seize breakthrough opportunities. With this orientation, Novaland’s risk management focuses on the following objectives:
1. Establish an effective and transparent risk monitoring and reporting mechanism throughout the Group for early identification.
2. Apply risk prevention measures, increase the operational efficiency of the control system.
3. Build a risk management culture throughout the Group so that each employee is an owner and practicing risk management.
BUSINESS EFFICIENCY MANAGEMENT
In 2021, the Covid-19 pandemic, along with the general legal status of the real estate market in Ho Chi Minh City took quite a toll on Novaland Group’s business activities. Nevertheless, Novaland Group has developed a long-term strategy for mid to high-end real estate development with 03 main product lines, Urban real estate, Urban tourism real estate, and Industrial real estate. Hence, in 2021, Novaland recorded a growth in revenue from VND 5,026 trillion to VND 14,903 trillion, while profit after tax witnessed a slight decrease from VND 3,907 trillion in 2020 to VND 3,455 trillion. Along with the increase in revenue, selling expenses also soared by 7.9 times in comparison to the same period in 2020. Additionally, general and administrative expenses were also kept stable in 2021, only increasing by 2.7% in comparison to the same period in 2020. At the end of 2021, Novaland’s total assets reached VND 201,834 trillion, increasing by 39.6% compared to the end of 2020. Its’ equity also reached VND 41,173 trillion, increasing by 28.9% compared to the same period in 2020.
Novaland prioritizes full compliance with tax obligations and payables to the State in 2021. Specifically, the Group’s tax payments and payables was VND 2,291 trillion.