Nam Long: Sales revenue soaked to vnd 2,340 billion, interest totaled vnd 179 billion in first half of the yearLE VY
Through a difficult time of the real estate market due to impacts from Covid-19, Nam Long Group (NLG) still recorded quite positive sales results. Besides, short-term advanced payments have increased by approximately 30% as of the end of Q2/2020.
NLG’s Q2 consolidated financial report recorded revenue of VND 242 billion and net profit of nearly VND 68 billion, dropping by 60% and 49% YOY, respectively. The revenue dropped as all products at Flora Novia and Flora Island had been handed over in 2019 and Q1/2020.
In Q2, NLG’s revenue from the handover of apartments, villas, land plots totaled VND 76 billion, while revenue from general contractor and construction services reached VND 154 billion, accounting for 64% of the revenue structure. Nam Long also disclosed that revenue and profit from other in-progress projects cannot yet be recognized. In the first 6 months of 2020, NLG reported VND 658 billion in revenue and VND 179 billion in net profit. A notable advantage of NLG is the short-term advanced payments of over VND 1,712 billion, increased by 30% compared to the beginning of the year. This is deposits from customers who buy apartments, villas, and land but have not received the properties by the date of closing balance sheet i.e. June 30, 2020.
NLG also has an accrued VND 670 billion long-term revenue which is the total profit from transferring a part of the Nguyen Son project to Mizuki Company and a part of the Waterpoint project to Southgate base on their percentage ownership in this joint venture. As of the end of Q2/2020, NLG’s total assets reached over VND 11,800 billion, increased by VND 1,000 billion compared to the beginning of the year, of which the total of cash, cash equivalents, and short-term deposits is over VND 1,400 billion.
The year-to-date sales revenue reached VND 2,340 billion
Facing the interrupted market due to Covid-19, Nam Long has still put through promising business performance.Indeed, on July 19, 2020, Nam Long successfully organized the Launching Ceremony of detached villas in Aquaria subdivision and luxury collection (Grand Villas & Riverfront Grand Villas) in Rivera 1 subdivision at Waterpoint. The Grand Villas have total area of more than 300m2 and cost about VND 10 billion, while Riverfront Grand Villas are located along the Vam Co Dong river, with a total area of 400 – 1000m2 and prices from VND 16 to 30 billion.
NLG’s representative shared that the detached villas, Grand Villa, and Riverfront Grand Villa at Waterpoint are designed for high-end customers who have their preference and taste. The launch of these luxury products has returned a sales revenue of almost VND 800 billion within 1 day for the Group. Overall, approximately 500 products including Valora single villas, duplex villas, garden townhouses, commercial townhouses, and 2 new high-end products Grand Villa and Riverfront Villa, have been sold since the beginning of the year, bringing sales revenue of VND 2,000 billion (of which July sales is VND 1,500 billion).
Previously, Nam Long successfully launched more than 130 Flora apartments worth over VND 340 billion. So far, NLG’s total revenue as of July 21, 2020, is VND 2,340 billion. According to NLG, the handover of Waterpoint’s will include 289 products in Q3 and 204 products in the Q4. The Akari project is scheduled to take off in the Q3, around mid-August. As in the sales plan, NLG continues to introduce the 2 projects Akari and Waterpoint, and the housing saving program for the Mizuki project.