Hanoi (VNA) - Novaland published its consolidated financial statement for the fourth quarter of 2019, announcing that its post-tax profit hit 3.38 trillion VND, helping it fulfill the profit target set for 2019 and even increase slightly by 3 percent compared with that made in 2018.
In the year, the group earned an accumulative revenue of 10.9 trillion VND and delivered 3,468 product units, mainly from existing projects like The Sun Avenue, Sunrise Riverside, Richstar, Saigon Royal, Newton Residence, Orchard Parkview, and Victoria Village, which started the hand-over in 2019, and other projects.
The group’s financial health continues to improve, with its total assets recording 89.9 trillion VND as of December 31, 2019, posting a surge of 30 percent. In particular, short-term assets were worth 71.27 trillion VND, a surge of 42 percent from 2018. Inventories soared 84 percent, in which real estate under construction accounted for 89.5 percent, mainly due to the increase of new projects purchased during the year.
Novaland achieved a new, positive point in the year, reflected in its debt structure which has shifted to safer, increased long-term debt and reduced short-term debt. Specifically, liabilities were worth 65.5 trillion VND, with long-term liabilities more than doubling the end of 2018, accounting for 72.5 percent of total liabilities.
Novaland projects draw interests of investors and customers with real needs (Photo: Eco-smart urban area, Aqua City)
In the fourth quarter of 2019, Novaland proved its attractiveness in the international capital market by successfully mobilizing a limit of 600 million USD via three capital arrangements carried out by Credit Suisse AG (Singapore). Of the figure, it actually disbursed 310 million USD and the remaining 250 million is the available limit and will be disbursed in 2020.
Embarking on the phase II of its development strategy, Novaland has deployed many M&A deals in the past year, carried out new projects with positive absorption from the market, and is expected to bring a stable source of revenue to ensure the company’s business plan secure.
The company currently owns and is studying to deploy a land bank of 4,900 ha.
Along with luxury and high-end apartment projects in the central area of Ho Chi Minh City, in June 2019, Novaland launched the first eco-smart urban area model in southern Dong Nai province, Aqua City.
Located on a land area of over 600 ha with three sides facing the river and greenery space and conveniences accounting for more than 70 percent of the total land, Aqua City is drawing interest from both investors and customers.
Eco-smart urban area Aqua City in Dong Nai
Commenting on the project, Kelly Lin, a customer from Taiwan, said she had a special impression of Aqua City because of its nature-friendly living space and location in Dong Nai province. She said she was attracted to villas and Shophouse in the project as they met all what she wanted for living and investment.
In terms of resort real estate, the group is deploying a series of concentrated large projects, including NovaWorld Phan Thiet and Nova Hills Mui Ne Resort & Villas in southern Binh Thuan propvince, NovaWorld Ho Tram in southern Ba Ria-Vung Tau province, and NovaBeach Cam Ranh Resort & Villas in the central coastal province of Khanh Hoa.
Novaland’s resort projects offer dozens of thousands of product lineups, such as second home, resort villas, commercial townhouses, which are much favoured due to their multi-functional purpose and durable profit-making capability.
With a focused, clear business strategy, stable land bank, solid financial structure, and stringent risk governance, Novaland is working to maintain its prestige as the most competitive developer in Vietnam’s real estate market in 2020./.
