Ms. Bui Cao Ngoc Quynh, daughter of Mr. Bui Thanh Nhon – Chairman of the Board of Directors of Novaland Group (stock code: NVL), has sold 9.1 million NVL shares. Ms. Quynh carried out this transaction for personal reasons.
The method of sale was by agreement, taking place between May 9 and May 14. Following this transaction, Ms. Quynh’s ownership of NVL shares decreased from 24.6 million units to 15.6 million shares.
As of now, Mr. Bui Thanh Nhon and related parties’ ownership in Novaland stands at approximately 760.36 million shares, equivalent to 39.9% of the company’s charter capital.
Similarly, Novagroup, the largest shareholder of Novaland, also sold 40,075 NVL shares on May 9, reducing its ownership to 358.13 million units. Prior to this, Novagroup had registered to sell more than 9 million NVL shares.
Notably, in October 2022, the shareholder group related to Mr. Bui Thanh Nhon held nearly 1.19 billion NVL shares, equivalent to 60.85% of Novaland’s charter capital. Currently, Mr. Nhon and related parties’ ownership stands at approximately 760.36 million shares, or 39.9% of the company’s charter capital.
Thus, over the past two years, the ownership of Novaland by the shareholder group related to Mr. Bui Thanh Nhon has decreased by more than 407 million NVL shares. Since the beginning of the year, Novagroup and Diamond Properties have sold a total of nearly 30 million NVL shares to support the company’s debt restructuring.
Speaking at this year’s shareholder meeting, Mr. Bui Thanh Nhon stated that Novaland has essentially completed the restructuring of its domestic and foreign debts and bonds, and the company’s assets remain balanced with its liabilities.
“Going forward, Novaland will continue to restructure its finances and resources, improve legal compliance, change strategies, focus on its core business, streamline its organization, and embark on an ESG action plan,” said Mr. Nhon.
According to the Chairman of Novaland, amidst a sluggish economy, slow legal reforms, and banks’ continued control over project cash flows, the Group lacks the resources to immediately fulfill its commitments to customers. This has caused significant damage and seriously affected the reputation and brand that Novaland has cultivated for over 30 years.
“Currently, the Group is facing limited revenue sources. We must prioritize maintaining continuous operations and completing projects, delivering products as committed. Out of responsibility and honor, Novaland pledges to concentrate all efforts to promptly address any issues that arise. Our team has been working tirelessly to overcome countless challenges,” affirmed Mr. Nhon.
For 2024, Novaland sets consolidated revenue and after-tax profit targets of VND 32,587 billion and VND 1,079 billion, respectively. In terms of capital, the company plans to raise VND 16,000 billion from financial institutions for project development and business activities.
This year, key revenue-generating projects such as Aqua City, NovaWorld Phan Thiet, NovaWorld Ho Tram, and housing projects in Ho Chi Minh City will be prioritized in terms of development plans and destination-building activities, including investments in entertainment parks and resorts.
As of March 31, Novaland’s total assets amounted to VND 236,480 billion, a decrease of 2% from the beginning of the year.
In the first quarter of 2024, NVL recorded a revenue of over VND 397 billion, an increase of 15% compared to the same period last year. However, NVL’s financial revenue decreased by 30% to VND 640 billion. Additionally, despite a 52% reduction in interest expenses, the company’s financial expenses only decreased by 6% due to increased foreign exchange losses. After deducting expenses, NVL reported a net loss of VND 567 billion in the first quarter of this year, the largest quarterly loss for Novaland.
As of March 31, Novaland’s total assets amounted to VND 236,480 billion, a decrease of 2% from the beginning of the year. Inventory accounted for 59.57% of total assets, totaling VND 140,881 billion, mainly comprising properties under construction. Novaland has used VND 57,798 billion of its inventory as collateral for loans.
The company’s receivables are valued at VND 75,170 billion, a decrease of 7.8% from the beginning of the year, equivalent to 31.78% of total assets. As of March 31, Novaland’s equity stood at VND 44,702 billion, a decrease of 1.3% compared to the start of the year.
Novaland’s operating cash flow is negative at VND 2,507 billion due to a reduction in payables. To compensate for this, the company has increased the recovery of loans, resale of debt instruments of other entities (VND 1,747 billion), increased recovery of capital contributions to other units (VND 350 billion), and increased borrowings (VND 702 billion, a 12-fold increase), while decreasing principal repayments (VND 545 billion, a 75% decrease, of which VND 173 billion was for bond payments).
