Vietnam’s leading property developer Novaland reported a sudden net profit of VND1.65 trillion ($67.5 million) in the fourth quarter of 2023, 12 times higher than the same period the previous year.
According to its freshly released financial statement, Novaland, listed on the Ho Chi Minh Stock Exchange (HoSE) as NVL, earned VND805 billion ($32.96 million) in net profit in 2023, down 63% year-on-year.
During the last quarter of 2023, Novaland’s net revenue decreased by 37% to VND2.03 trillion ($83.11 million), and its gross profit fell 44% to VND554 billion ($22.68 million).
However, its financial revenue more than doubled to VND1.83 trillion ($74.82 million), including over VND1 trillion in profit from investment cooperation and VND415 billion in profit from stock trading. Financial and sales costs declined by 63% and 44%, respectively, while management costs rose 39%.
Other activities earned profits of VND572 billion ($23.42 million) compared to a loss of VND1 billion ($40.94 million) in the same period in 2022, mainly thanks to collecting fines. During the period, the company collected nearly VND800 billion ($32.75 million) in fines for contract violations and paid VND200 billion ($8.19 million) in compensation for contract violations.
The group reduced its liabilities by VND17 trillion to VND195.87 trillion ($8.02 billion), mainly long-term debts, while short-term debts increased. Loan debt alone decreased by more than VND7.16 trillion ($293.74 million) to VND57.7 trillion ($2.36 billion).
Notably, at the end of 2023, Novaland had VND19.19 trillion ($785.67 million) of short-term advance payments from home buyers, an increase of VND3.2 trillion compared to the beginning of the year.
On the stock market, NVL closed Wednesday at VND16,700 ($0.68) per share.