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The investor of the Aqua City project lost 136 billion VND

Aqua City Co., Ltd - an enterprise owned by Novaland with 70% of capital - last year reported a loss of 136 billion dong, while in the same period announced a profit of more than 730 billion dong.

The information was announced by Aqua City Co., Ltd in its recent financial report to the Hanoi Stock Exchange Department.

According to this report, as of the end of last year, the company had equity of nearly 1,490 billion dong. The business suffered a loss, so the return on equity last year was negative 9%, while the same period was up to 45%.The company owes nearly 11,850 billion dong, 8 times more than equity, of which bond debt is 3,000 billion dong. The company currently has 5 lots of bonds with the interest rate of 10% annually that have not yet expired or have not been redeemed before expiration. The most recent bond will expire in the next 2 months.

Aqua City Company is a subsidiary of No Va Real Estate Investment Group (Novaland) and the investor of Aqua City urban area in Bien Hoa City, Dong Nai. This is one of the key projects mentioned by Novaland President Bui Thanh Nhon in his petition on solutions for the problems sent to the National Assembly Standing Committee.


According to Mr. Nhon, Aqua City and other Novaland projects in Dong Nai have been approved for investment policy, detailed construction planning at the scale of 1/500, land allocation, land lease for implementation, and granting approval of construction permits. Novaland has also invested in this construction. However, for nearly two years now, the approval of related plans has been delayed and there is no specific removal plan.

This makes it impossible for enterprises to continue investing in business activities in projects, leading to the risk of collapse due to no cash flow.

Mr. Nhon said that long-term problems can lead to the risk of bankruptcy because the business does not have operating cash flow. As a result, leading to a chain effect on customers, contractors, banks, businesses and employment of hundreds of thousands of workers.

Aqua City's poor business results have a direct impact on Novaland's financial aim. Last year, this business made a profit of 2,181 billion dong, down nearly 37% over the same period. In the first quarter of this year, Novaland reported a loss for the first time since listing on the stock exchange with a loss after tax of 410 billion dong.


Source: VnExpress

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