Vietnamese leading real estate developer Novaland earned revenue of VND11.15 trillion ($474.5 million) in 2022, a year-on-year reduction of 25%, according to its audited report.
The Ho Chi Minh City-based major’s after-tax profit fell to VND2.18 trillion ($92.76 million), down 36.85% year-on-year, and equal to about one-third of its 2022 target.
The Vietnamese real estate market has encountered many obstacles since last year’s second quarter. Since the fourth quarter, Novaland has made an overall shakeup, including its operations and organization models, to deal with market woes. The firm has also offered solutions to financial restructuring and negotiated debt restructuring options to ensure the interests of clients, investors, and other stakeholders.
Novaland is focusing on key projects while delivering its housing products to customers in phases. It has already adjusted construction schedules for new projects and is working with officials in localities home to these projects to rapidly complete the necessary legal processes.
In mid-February this year, Novaland asked the government for a supportive mechanism to help the ailing real estate sector deal with market woes, including a credit crunch and long-lasting legal procedures.
Later Novaland struck deals with bondholders to prolong payment terms as the Government’s Decree 08, which took effect on March 5 and allows issuers to extend their bond maturities by up to two years and pay principal and interest with assets other than cash.
The company, listed on the Ho Chi Minh Stock Exchange as NVL, has also sent a document to its shareholders to ask for their opinion on its plans to issue more than 1.9 billion shares to existing shareholders and offer more than 975 million shares via private placements to expand its charter capital by nearly VND30,000 billion ($1.27 billion).