Why did Novaland incur a loss of thousands of billions?

Novaland Group (NVL) has recently announced its Q3 financial report showing a net revenue of 1.683 trillion VND but a net loss of 1.153 trillion VND, contrasting with a profit of 2.950 trillion VND in the same period last year. For the first nine months, cumulative net revenue reached nearly 5.398 trillion VND, with sales revenue rising 33%, driven by the handover of major projects like NovaWorld Phan Thiet and Aqua City. Despite maintaining service revenue at 442 billion VND, the total net loss after tax reached 1.820 trillion VND primarily due to reduced financial revenue. As of the end of September, NVL’s total assets reached 239.575 trillion VND with inventories at 152.285 trillion VND, mostly consisting of land and construction projects. Novaland is also processing nearly 2,000 land use rights certificates for ongoing projects. Additionally, Phat Dat Real Estate Development Company (PDR) reported Q3 revenue of 506 billion VND, with gross profit sharply rising to 249 billion VND. PDR did not incur losses from affiliated companies and recorded a profit increase of 68% over the same period.