Novaland Reports Nearly VND 1.8 Trillion Profit in First Half, Financial Revenue Boosts Amidst Real Estate Slowdown

Novaland (NVL), a leading real estate developer in Vietnam, announced that its after-tax profit for the first half of the year reached nearly VND 1.8 trillion (approximately $72 million USD), fulfilling 96% of its full-year profit target. The company's profit was primarily driven by a significant surge in financial revenue, which quadrupled year-on-year to over VND 1.741 trillion, compensating for a nearly 22% decline in real estate transfer revenue to VND 1.341 trillion in the second quarter. In the second quarter, Novaland's consolidated revenue stood at over VND 1.509 trillion, down 22% from the same period last year. Revenue from real estate transfers, recorded from project deliveries including Sunrise Riverside, Victoria Village, Aqua City, NovaWorld Phan Thiet, and NovaWorld Ho Tram, contributed VND 1.341 trillion. Despite the revenue drop, the company reported a strong turnaround in its net profit, posting VND 912 billion in after-tax profit for Q2, compared to a loss of nearly VND 190 billion in Q2 2025. For the first six months of the year, consolidated net revenue rose by nearly 38% year-on-year to VND 5.096 trillion. The after-tax profit reached close to VND 1.772 trillion, a significant improvement from a loss of over VND 666 billion in the same period last year. While revenue realization stands at 22% of the annual plan, the profit target is nearly met. As of the end of June, Novaland's total assets amounted to VND 258.658 trillion, a 3.5% increase from the beginning of the year. Inventory, primarily real estate for sale, was valued at approximately VND 157.712 trillion. Novaland has been actively pursuing financial restructuring. In June, the company issued over 167 million bonus shares to existing shareholders, raising its charter capital to nearly VND 24.021 trillion. It also reached an agreement with bondholders to restructure its international convertible bond package and extend its maturity to July 2028, thereby easing short-term payment pressures. CEO Duong Van Bac recently stated that most debts have been restructured stably, with financial institutions committing credit lines exceeding VND 33 trillion, of which over VND 25.5 trillion is being disbursed. However, he acknowledged that cash flow pressures and maturing debt obligations remain challenges amidst the difficult real estate market. To address these, Novaland plans to issue more shares, divest certain assets, and seek partnerships to meet all financial obligations, including bonds and overdue debts. Source: VnExpress