SINGAPORE, Sept. 20,
2024 /PRNewswire/ -- VinFast Auto Ltd.
("VinFast" or the "Company") (Nasdaq: VFS), a subsidiary of
Vingroup JSC, and Vietnam's only
pure-play electric vehicle manufacturer, today announced its
unaudited financial results for the second quarter ended June
30, 2024.
- VinFast delivered 13,172 EVs in Q2, up by 44% QoQ and 43%
YoY, bringing its delivery total for the first half of 2024 to
22,348 vehicles, a 101% increase compared to the same period
last year.
- The Company recorded $357 million
in revenue for Q2, up by 33% QoQ and 9% YoY.
- Vietnam, where momentum is
accelerating, will play a key role in driving VinFast's
revenue in the remainder of 2024.
Madam Thuy Le, Chairwoman
of VinFast, said: "We remain focused on our
mission to contribute to a sustainable future for everyone. Our
strategy is unchanged with regards to being a
vertically-integrated green mobility solutions company providing
high quality and good-value electric vehicles. With the delivery of
VF 3 starting in Q3, we have completed the development of all
7 e-SUV models."
Ms. Lan Anh Nguyen, Chief Financial Officer of
VinFast, added: "Q2 of 2024 aligned with our
forecasts, driven in large part by the increasing demand for
VinFast's EVs in Vietnam. This
growth in our home market has been crucial in advancing our mission
to promote EV adoption and green mobility. The momentum we've built
in Vietnam has laid a solid
foundation for our strong position in this key market to continue
thriving."
VinFast EV Deliveries Rose 44% QoQ and Revenue Grew 33%
QoQ
During the quarter, VinFast delivered
13,172 vehicles, a 44% increase compared to the previous
quarter and a 43% increase year-over-year. This brings total
deliveries for the first half of 2024 to
22,348 vehicles, representing a 101% increase compared to
the same period last year.
One of the key drivers behind this growth was the
increasing adoption of electric vehicles in the Vietnamese
market, where VinFast recorded a 108% year-over-year increase
in B2C deliveries in Q2.
VinFast reported $357 million in revenue in Q2, up by
9% year-over-year and by 33% quarter-over-quarter.
The Company's gross loss for Q2 was ($224) million, equivalent to a gross margin
of (62.7%). This was primarily due to an impairment charge on
Net Residual Value (NRV) of $104
million, compared to $5
million in Q1.
Expanding Global Footprint to Drive Sales
VinFast's strategic expansion through dealership network has
shown progress.
As of August 31, VinFast had 155 showrooms across all
markets, of which around 70% were dealerships.
Strengthening Presence in Key Markets
Vietnam
VinFast achieved its highest year-over-year growth for
Vietnam in the first half of 2024.
The VF 5 model has been instrumental in driving the Company's
strong sales performance, securing the VF 5's position as a
domestic leader in its segment. Additionally, the Company began
delivering its highly anticipated VF 3, VinFast's mini electric
SUV, in the third quarter of 2024.
North America
In the second quarter of 2024, VinFast continued to build its
foundation in the U.S. by introducing its products and strategies
to key dealerships. To bolster brand awareness, VinFast expanded
customer outreach through its dealer network and established a
Dealer Advisory Council to gain valuable insights. As of the second
quarter, VinFast now operates in eight states, California, Connecticut, Florida, Kansas, Kentucky, North
Carolina, New York, and
Texas, with a combined network of
dealer stores and VinFast-owned showrooms.
In Canada, VinFast recorded 15%
quarter-over-quarter growth in the second quarter and is seeing
this momentum continue in the third quarter, with July and August
seeing its highest delivery levels for North America in the past year.
Southeast Asia
VinFast entered the Indonesian market less than six months ago
and has since established 15 showrooms across major cities,
including Jakarta and Surabaya. VinFast began delivering its first
batch of VF e34 electric vehicle during the third quarter of 2024,
making Indonesian customers the first globally to receive
right-hand drive VinFast EVs. VinFast also broke ground its
completely knocked down (CKD) facility in Indonesia.
VinFast's innovative battery subscription offer has been a key
driver of sales in Indonesia,
accounting for nearly 100% of its total sales and orders. This
program has also garnered positive feedback in the Philippines, further validating its
commitment to making electric vehicles more accessible.
Building on the positive response from dealers in the Philippines, VinFast is eager to introduce
additional models to the market in the coming months, further
expanding its footprint and product offerings in the region.
Outlook for the Remainder of 2024
VinFast reaffirms its target to deliver approximately 80,000
units in 2024.
Vietnam is expected to play a
key role in driving revenue for the remainder of 2024. The growing
success of the VF 5 model, along with VinFast's extensive charging
infrastructure, flexible battery subscription program, and strong
after-sales services, are expected to reinforce its leadership
position in the Vietnamese electric vehicle market.
While international markets continue to face near-term
challenges, they remain integral to VinFast's longer-term growth
strategy as the company expands its global brand and distribution
network.
VinFast remains committed to its mission of accelerating the
global shift to sustainable electric mobility through continuous
innovation, product expansion, and market presence./.
Conference Call
The Company's management will host its second quarter 2024
earnings conference call at 8:00 AM
U.S. Eastern Time on September 20,
2024.
Live
Webcast: https://edge.media-server.com/mmc/p/urnhoxtg
For additional information, please
visit https://vinfastauto.us/investor-relations/
Investor Relations - Email: ir@vinfastauto.com
Media Relations - Email: info@vingroup.com
About VinFast
VinFast (NASDAQ: VFS), a subsidiary of Vingroup JSC, one of
Vietnam's largest conglomerates,
is a pure-play electric vehicle ("EV") manufacturer with the
mission of making EVs accessible to everyone. VinFast's product
lineup today includes a wide range of electric SUVs, e-scooters,
and e-buses. VinFast is currently embarking on its next growth
phase through rapid expansion of its distribution and dealership
network globally and increasing its manufacturing capacities with a
focus on key markets across North
America, Europe and
Asia. Learn more at
www.vinfastauto.us
Forward-Looking Statements
Forward-looking statements in this announcement, which are
not historical facts, are forward-looking statements within the
meaning of the Private Securities Litigation Reform Act of 1955.
These statements include statements regarding our future results of
operations and financial position, planned products and services,
business strategy and plans, objectives of management for future
operations of VinFast, market size and growth opportunities,
competitive position and technological and market trends and
involve known and unknown risks that are difficult to predict. As a
result, our actual results, performance or achievements may differ
materially from those expressed or implied by these forward-looking
statements. In some cases, you can identify forward-looking
statements because they contain words such as "may," "will,"
"shall," "should," "expects," "plans," "anticipates," "could,"
"intends," "target," "projects," "contemplates," "believes,"
"estimates," "predicts," "potential," "goal," "objective," "seeks,"
or "continue" or the negative of these words or other similar terms
or expressions that concern our expectations, strategy, plans, or
intentions. Such forward-looking statements are necessarily based
upon estimates and assumptions that, while considered reasonable by
us and our management, are inherently uncertain. Factors that may
cause actual results to differ materially from current expectations
include, but are not limited to: (i) the effect of the consummation
of the business combination and the public listing of the Company's
securities on its business relationships, performance, financial
condition and business generally, (ii) the risk that the Company's
securities may experience a material price decline and volatility
in the price of such securities due to a variety of factors, (iii)
the adverse impact of any legal proceedings and regulatory
inquiries and investigations on the Company's business, (iv) the
Company's potential inability to maintain the listing of its
securities on Nasdaq, (v) the risk associated with the Company's
limited operating history, (vi) the ability of the Company to
achieve profitability, positive cash flows from operating
activities and a net working capital surplus, (vii) the ability of
the Company to fund its capital requirements through additional
debt and equity financing under commercially reasonable terms and
the risk of shareholding dilution as a result of additional capital
raising, if applicable, (viii) risks associated with being a new
entrant in the EV industry, (ix) the risks of the Company's brand,
reputation, public credibility and consumer confidence in its
business being harmed by negative publicity, (x) the Company's
ability to successfully introduce and market new products and
services, (xi) competition in the automotive industry, (xii) the
Company's ability to adequately control the costs associated with
its operations, (xiii) the ability of the Company to obtain
components and raw materials according to schedule at acceptable
prices, quality and volumes acceptable from its suppliers, (xiv)
the Company's ability to maintain relationships with existing
suppliers who are critical and necessary to the output and
production of its vehicles and to create relationships with new
suppliers, (xv) the Company's ability to establish manufacturing
facilities outside of Vietnam and expand capacity in a
timely manner and within budget, (xvi) the risk that the Company's
actual vehicle sales and revenue could differ materially from
expected levels based on the number of reservations received,
(xvii) the demand for, and consumers' willingness to adopt, EVs,
(xiii) the availability and accessibility of EV charging stations
or related infrastructure, (xix) the unavailability, reduction or
elimination of government and economic incentives or government
policies which are favorable for EV manufacturers and buyers, (xx)
failure to maintain an effective system of internal control over
financial reporting and to accurately and timely report the
Company's financial condition, results of operations or cash flows,
(xxi) battery pack failures in the Company or its competitor's EVs,
(xxii) failure of the Company's business partners to deliver their
services, (xxiii) errors, bugs, vulnerabilities, design defects or
other issues related to technology used or involved in the
Company's EVs or operations, (xxiv) the risk that the Company's
research and development efforts may not yield expected results,
(xxv) risks associated with autonomous driving technologies, (xxvi)
product recalls that the Company may be required to make, (xxvii)
the ability of the Company's controlling shareholder to control and
exert significant influence on the Company, (xxiii) the Company's
reliance on financial and other support from Vingroup and its
affiliates and the close association between the Company and
Vingroup and its affiliates, (xxix) conflicts of interests with or
any events impacting the reputation of Vingroup affiliates or
unfavorable market conditions or adverse business operations of
Vingroup and Vingroup affiliates and (xxx) other risks discussed in
our reports filed or furnished to the Securities and Exchange
Commission.
All forward-looking statements attributable to us or persons
acting on our behalf are expressly qualified in their entirety by
the cautionary statements set forth above. You are cautioned not to
place undue reliance on any forward-looking statements, which are
made only as of the date of this announcement. VinFast does not
undertake or assume any obligation to update publicly any of these
forward-looking statements to reflect actual results, new
information or future events, changes in assumptions or changes in
other factors affecting forward-looking statements, except to the
extent required by applicable law. If VinFast updates one or more
forward-looking statements, no inference should be drawn that it
will make additional updates with respect to those or other
forward-looking statements. The inclusion of any statement in this
announcement does not constitute an admission by VinFast or any
other person that the events or circumstances described in such
statement are material. Undue reliance should not be placed upon
the forward-looking statements.
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SOURCE VinFast