Quality of Growth
NVD’s business is structured to contain business and financial risks. In the market situation where 40-50% of the market share is dominated by big-name developers, NVD strategically chooses to focus on its distinctive, yet profitable and sizable mid-to-high products rather than competing in the lower-margin segments. While business risk is managed by product mix and segmentation, financial risk is contained by the business model.
Most of NIRVANA homes are made to order and purchased under two contracts. First contract is for land purchase which is paid soon after the contract signing and approval of customer’s post-financing loan (if not immediately by cash). Second contract is for the house purchase which is paid upon the construction completion progress. Roughly at 50% sales of total units, NVD’s project loan is fully paid back (on an average of about 2.5 years) by the inflows of the customers’ land-purchase contracts. Given the relatively high speed of project loan repayments, i.e. less interests burden, financial leverage is accordingly maintained within suitable range. The first aspect of Quality of Growth is about containing risks.
Another aspect of Quality of Growth is about creating a business portfolio with multiple revenue streams and recurring incomes for earnings stability. NVD’s first revenues stream is from NIRVANA’s original business of Property Development for Sales. The second stream is from DAII’s business of Prefabricated Home Builder. An official relaunch is planned during the first half of 2018. DAII’s construction technology will also be catered for Prefabricated Construction Services for other business sectors both domestically and internationally. In 2018, we will also begin new businesses of Property Development for Rents and Property Development to Manage. Both of which will be constructed using prefabricated construction system for recurring income streams.
Thus, Quality of Growth is to sustain earnings growth with risks well-managed.
Re-define Living Solution
NVD’s vision is to Re-define Living Solution. Businesses and implied products in the Quality of Growth portfolio above will touch on many lives, not only customers of residential property sales. NVD is missioned to be at the forefront in living integration, inspired by holistic values in achieving new and unique living solutions. Quality of Growth portfolio will sustain by integrating new products and living solutions into our business portfolio, while fostering a creative organization that does not compromise on customer experiences. We strongly commit to business practices by co-existing with the environment and the surrounding communities under good corporate governance, while upholding the satisfaction of our stakeholders.
On behalf of Management of NVD, we wish to express sincere gratitude to Shareholders, the Board of Directors, Jointventure Partners, Business Partners, Customers, Employees, Financial Institutions, and other relevant parties for their trusts and continued supports for NVD. We will put in all our efforts to achieve our goals in maximizing shareholders’ value and the Quality of Growth in upcoming years.
Mr. Sornsak Somwattana
Chief Executive Officer