Novaland reports H1 after-tax profit of over VND2 trillion

July 31, 2021 | 16:54
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Novaland Investment Group Corporation (HSX: NVL) announced today its consolidated financial results for the second quarter of 2021.

By the end of the second quarter of 2021, the company recognised net after-tax profit of VND2.014 trillion ($87.57 million), up 71 per cent on-year. Total consolidated revenue including revenue from sales of goods and service rendering was about VND7.097 trillion ($308.57 million), an increase of 282 per cent over the same period in 2020. Of this, revenue from sales was VND6.344 trillion ($275.83 million), up by 541 per cent on-year, mainly contributed by project handover such as Saigon Royal, Aqua City, NovaHills Mui Ne, Victoria Village, NovaWorld Ho Tram, NovaWorld Phan Thiet; revenue from service rendering and others reached nearly VND753 billion ($32.74 million).

As of June 30, 2021, the company’s total assets were recorded at VND171.5 trillion ($7.46 billion), up 18.7 per cent on-year. Inventories were recorded at VND103.241 trillion ($4.45 billion), up 18.9 per cent year-to-date, mostly from an increase of project development costs at Aqua City, NovaWorld Phan Thiet, NovaWorld Ho Tram. Land bank and project development costs accounted for 92 per cent of total inventories (equivalent to VND94.731 trillion [$4.1 billion]) while the rest was attributed to finished works and real estate products and products on handover.

Cash and cash equivalents, deposits at banks reached VND2.132 trillion ($92.7 million), up 5 per cent on-year. As of June 30, 2021, the company's total loans and financial leases were VND51.303 trillion ($2.23 billion), up 4.9 per cent year-to-date. Short-term loans and finance lease liabilities accounted for 35.4 per cent of total outstanding loans at VND18.185 trillion ($790.65 million). Long-term loans and financial lease liabilities recorded VND33.118 trillion ($1.44 billion), down 4 per cent year-to-date, mainly from loan repayment, bond redemption of international convertible bond package and from the conversion of international convertible bonds into shares.

In Q2/2021, the group made principal and interest repayment of VND16.782 trillion ($729.65 million) for matured debts and prepayment loans from available cash and cash collected from sales.

Regarding fundraising activities, in July 2021, the group successfully issued $300 million of international convertible bonds, listed on the Singapore Stock Exchange (SGX). Credit Suisse (Singapore) Ltd. was the Sole Global Coordinator and Sole Bookrunner. The issuance received great interest from reputable international investors. The order book was 2.5 times oversubscribed relative to the initial deal size.

In terms of products introduction activities, during Q2/2021, the group has received strong support from the market despite the effects of the COVID-19 pandemic on the economy. Online launching events were held regularly and a variety of suitable incentive programmes were offered to customers so that they could choose which programmes match their financial needs and demands. Accordingly, presales performance has witnessed an increase of 227 per cent quarter-on-quarter.

In late June and early July 2021, the new phase, Waikiki, was officially launched at the NovaWorld Phan Thiet project. The entire phase has an area of 10.5 hectares located in the centre of NovaWorld Phan Thiet. Launching units are very limited and offer a location with a unique "multi-storey" view, covering the entire Phan Thiet Bay and 25ha theme park.

Perspective of Waikiki Villa at NovaWorld Phan Thiet (Binh Thuan)
Waikiki Villa at NovaWorld Phan Thiet (Binh Thuan)

NovaWorld Ho Tram attracted attention in the second quarter with the launch of a "limited” beach villa product line at the Habana Island phase. Known as the most luxurious area at NovaWorld Ho Tram, Habana Island resonates with its rare harmonious river and sea terrain. The second home apartments here are likened to having both sea-frontage and river-frontage with possesses spectacular panoramic views. Since June, Binh Chau hot spring has officially been introduced as a utility at NovaWorld Ho Tram so that customers can come to visit and experience the project.

Additionally, in early July 2021, the group introduced to the market the new phase of the Aqua City project called Sun Harbor 1. It is located at the core of Aqua City with outstanding amenities. The most luxurious area of this phase is the European-style square-marina complex named Aqua Marina with a size of 2.7ha. According to the plan, Aqua Marina is designed as a complex of amusement-entertainment-shopping with a world-class shopping mall, international standard marina, and a square with a capacity of 10,000 people. Aqua Marina is currently in the finishing stage to be launched in August.

Regarding to sustainable development activities, in Q2/2021, Novaland has joined hands with the community to respond to the COVID-19 pandemic. Specifically, the group has donated VND100 billion ($4.35 million) to the COVID-19 Vaccine Fund. Furthermore, Novaland has also carried out various activities and donated urgent medical equipment to the medical system of Ho Chi Minh City, Binh Thuan, and Can Tho, and Vung Tau.

Perspective of the park duplex villa at the Habana Island divergence, belonging to NovaWorld Ho Tram (Ba Ria - Vung Tau).
A park duplex villa at Habana Island at NovaWorld Ho Tram (Ba Ria-Vung Tau)

Novaland Group is the leading reputable real estate developer in property investment and development in Vietnam. Over 29 years of establishment and development, Novaland has so far developed more than 50 tourism and residential real estates projects with a diverse range of products both being implemented and in operation, including apartments, villas, shophouses, office-tel 24/24, second home, and branded resort villas.

Novaland continues to implement the seond phase of its development strategy with a focus on the core business of high-end real estate. Total accumulated land bank reached 5,400ha, including real estates in central of Ho Chi Minh City and its satellite townships, hospitality real estate, and industrial real estate.

With a clear business strategy, stable land bank, solid financial structure, sophisticated risk management framework, and strong legal compliance, Novaland will always strive to contribute to society. At the same time, the Novaland workforce is committed to the company’s core values of Integrity – Efficiency – Professionalism to ensure stable and outstanding growth in the next five years.

Novaland firmly believes that the mission of “Creating Community – Building Destinations – Cultivating Happiness” will earn it recognition as a national and reputable brand providing international standards while promoting the overall development of Vietnam.

Novaland Group was listed on the Ho Chi Minh City Stock Exchange (HSX: NVL) in December 2016. As at December 31, 2020, Novaland’s total market capitalisation was approximately VND63 trillion ($2.74 billion).

By Hoang Anh

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