Since then, NVL stock price has remained low. The number of shares held by Mr. Nhon continued to decline. Real estate giants’ assets dropped even lower.
How is Novaland’s financial health?
Along with Mr. Nhon’s group of shareholders selling more than 400 million shares, with an estimated total value of about 8,000-10,000 billion VND, the market recorded that Novaland had nearly 18,000 additional shareholders, bringing the total shareholders of this enterprise to about 80,000 people.
Although a large amount of money was put into restructuring the business, Novaland also returned to implementing projects with full legality and sales, but the financial health situation is still something that many people worry about. settle.
In the 2023 audited financial statements, the auditor doubted Novaland’s ability to continue operating.
Accordingly, the auditing firm PwC has no exception but still notes that Novaland’s ability to continue operating depends on its ability to pay or restructure loans and bonds that are about to mature and implement Other solutions generate cash flow to fund business operations.
Meanwhile, Novaland’s board of directors said they will continue to take many solutions to overcome the problem. Novaland is implementing many key projects; restructuring of loans and bonds; rescheduling debt, swapping debt or payables with real estate products; Work with banks to mobilize credit capital to deploy project construction. In addition, Novaland also receives financial support from major shareholders.
According to the report, this business’s cash amount is still about VND 3,400 billion, as of the end of 2023. However, this amount of money may have been used to pay off other loans, essentially the business’s cash. Mr. Nhon’s house is still very low.
Novaland’s inventory is still increasing and by the end of 2023 will be about 139 trillion VND.
Novaland’s long-term debt decreased quite sharply, from VND 135 trillion to VND 109 trillion by the end of 2023. Main business activities are still at a loss, consolidated profits are mainly thanks to financial activities.
However, Novaland’s investment real estate has increased, showing that this business is still using money to invest more in potential places for the long term.
Also thanks to being profitable in 2023 according to the consolidated report, Novaland was granted margin again in early April. Dozens of bondholders agreed to propose restructuring the convertible bond package worth 300 million USD to convert into common shares (NVL).
However, the Southern real estate tycoon is still facing many difficulties. In the first quarter of 2024, Novaland suffered a record loss of more than 600 billion VND. Cash flow meanwhile is heavily negative.
The question that remains is how Novaland will continue to manage capital to reduce the pressure of debt burden that has lasted for many years, while still having a portion of money for future development investment. ?
By the end of March 2024, Novaland had cash and cash equivalents of nearly VND 3,140 billion. Inventories increased to nearly 140.9 trillion VND. Total liabilities are still nearly 191.8 trillion VND, of which short-term loans are more than 35 trillion VND and long-term loans are more than 23.2 trillion VND. Equity decreased from more than 45.3 trillion VND at the end of 2023 to more than 44.7 trillion VND.
Novaland has just announced a plan to offer 1.1 billion shares to existing shareholders in the form of buying rights during the second-fourth quarter. The selling price is 10,000 VND/share. The actual ratio is 10:6 (shareholders owning 10 shares have the right to buy 6 new shares). It is expected that NVL will earn 11,700 billion VND to contribute capital to its subsidiaries. In addition, this company will also use more than 855 billion VND to pay debt, 140.3 billion VND to pay salaries and 138.8 billion VND to operate the company.
