📸 Snapshot: Novaland’s 2025 Results
Accounting Reversal | Cashflow Pressure | Domestic Loans
Despite its revenue drop, the Vietnamese developer reported an increase in gross profits due to an accounting reversal related to its Lakeview City project.
While Novaland’s cashflow remained under pressure, the company retained access to domestic loans.
Vietnamese developer No Va Land Investment Group Corporation (Novaland) has released the results for its fourth quarter and full year ended 31 December 2025. These are some of the highlights.
Accounting Reversal
Consolidated sales fell 67% to VND 1.57 trillion (USD 60.4 million) in the fourth quarter of 2025 (4Q25) from a year earlier. For the full year, sales dropped to VND 6.97 trillion from VND 9.08 trillion.
Despite its revenue drop, Novaland reported an increase in gross profits to VND 2.58 trillion in 4Q25 from VND 1.94 trillion a year earlier because of a swing in the cost of sales and services rendered.
During the quarter, the developer recorded the “reversal and reassessment” of provisions related to land lease payments and land use fees for its Lakeview City project, according to its press release.
The Investor reported in November 2025 that Ho Chi Minh City’s authorities had approved the land pricing for Novaland’s flagship Lakeview City development, “marking a major step toward resolving long-standing legal and financial bottlenecks that have stalled the project for years.”
Cashflow Pressure
On the cashflow side, net operating cash outflow was barely changed at VND 5.95 trillion in 2025.
Net cashflow from investing activities plunged to VND 266.61 billion in 2025 from VND 4.21 trillion a year earlier. Two items stood out: “Loans granted, purchases of debt instruments of other entities” and “investments in other entities”.
Net cashflow from financing activities jumped to VND 5.47 trillion in 2025 from VND 2.96 trillion a year earlier, partly lifted by proceeds from borrowings.
Overall, Novaland’s cash and equivalents dipped to VND 4.4 trillion as of end-2025 from VND 4.6 trillion a year earlier.
Domestic Loans
Novaland said that its long-term borrowings increased as a result of “additional disbursements from new loan facilities”, which will be used to accelerate its projects.
The company added that it continues to implement “various flexible measures” to restructure its debt and alleviate cashflow pressure.
I flagged in June 2025 that Novaland had to go through a second round of restructuring as its cashflow was tied up by project delays. I also wrote that the developer had mostly followed the Chinese restructuring playbook of converting some debt into equity and prioritizing local creditors to avoid burning bridges onshore.
A friend familiar with the matter said Novaland has been current on its payments to the local banks, which means that the developer should retain access to domestic loans.
I also wrote last week that some local banks prefer working it out with the borrowers because they are exposed to both the developers and their owners.