A steel tycoon determined to collect debt from Novaland group

(Dan Tri) - Some debts related to the Novaland group have been listed by SMC as bad debts because they are overdue for one year or more.

SMC Investment and Trading Joint Stock Company (stock code: SMC) stated in a recent document that it will resolutely handle outstanding debts, especially from customers in the Novaland group this year.

According to the 2025 semi-annual financial report, SMC has short-term receivables from Novaland-related companies and other companies of more than VND1,252 billion. The company must set aside more than VND386 billion in provisions for this debt.

Some debts related to Novaland group have been listed by SMC as bad debts because they are overdue for one year or more. For example, Delta - Valley Binh Thuan Company Limited owes nearly 441 billion VND, Dalat Valley Real Estate Company Limited owes more than 8 billion VND, Aqua City Company Limited owes more than 8.7 billion VND, The Forest City Company Limited owes more than 5 billion VND.

SMC Steel determined to settle debt with Novaland group (Photo: SMC).

According to this report, although they were bad debts, the above companies also paid part of their debts to SMC in the first 6 months of the year. Specifically, Aqua City paid 105 billion VND, The Forest City paid 126 billion VND, and Da Lat Valley Real Estate paid 161 billion VND.

SMC specializes in steel processing and trading, doing business with construction companies and investors. Since the real estate market has been in trouble since 2022, SMC's business results have also been affected.

Steel giant determined to collect debt from Novaland group in the context of first half of the year, auditors gave opinions emphasizing the business's ability to continue operating.

In 6 months, SMC lost more than 102 billion VND, leading to an accumulated loss of nearly 242 billion VND. Business cash flow was also negative more than 129 billion VND.

As of June 30 this year, short-term debt exceeded short-term assets by nearly VND972 billion. This raised concerns among auditors about the company's ability to generate cash flow to pay off its maturing debts.

Therefore, SMC affirmed that it will restructure its finances and handle outstanding debts with the Novaland group. The goal this year is to complete and maintain stability in bank loans, and find long-term capital sources to compensate for short-term assets (bad receivables) that are being appropriated by customers. The company will also control production costs, liquidate assets, increase production efficiency, and handle inventories...

On December 20, 2024, SMC and Novaland Group (Novagroup Joint Stock Company and its member companies) signed a debt confirmation and debt repayment commitment. In March and April this year, SMC and Novaland Group signed a number of contracts and agreements on real estate sales and purchases.

Accordingly, SMC recorded an increase in assets awaiting handover with a value of nearly VND 279 billion and prepaid to the seller related to the purchase/long-term lease of real estate with a value of more than VND 156 billion to offset SMC's receivables from the Novaland group.

Source: https://dantri.com.vn/kinh-doanh/mot-dai-gia-thep-quyet-doi-no-nhom-novaland-20250909173156363.htm