SINGAPORE, Nov. 26,
2024 /PRNewswire/ -- VinFast Auto Ltd.
("VinFast" or the "Company") (Nasdaq: VFS), a pure-play electric
vehicle ("EV") manufacturer with the mission of making EVs
accessible to everyone, today announced its unaudited financial
results for the third quarter ending September 30, 2024.
- VinFast reported strong third-quarter results, delivering
21,912 vehicles, a 115% year-over-year increase. Revenue reached
US$511.6 million, up 49.3%
year-over-year.
- The Company became the top-selling automotive brand in
Vietnam for September, October,
and for the first ten months of 2024 while continuing to make
strides in its global expansion.
- VinFast remains committed to its growth strategy and has
secured capital commitments to support its expansion plans. The
Company is focused on balancing revenue growth and optimizing
costs.
Madam Thuy Le, Chairwoman
of VinFast, said: "The third quarter's result was
underpinned by a robust September, as we recorded the highest
monthly deliveries in our home market, Vietnam. This marks a historic milestone for
Vietnam's automotive industry
where, for the first time since we were established seven years
ago, a domestic OEM has outperformed international competitors to
become the market leader across the passenger vehicle market. We
expect to finish 2024 on a strong note and meet our 80,000-vehicle
delivery target, as the momentum in Q3 has continued into Q4.
Producing high-quality electric vehicles is a complex task, one
that requires unwavering dedication and fortitude to navigate
ongoing uncertainties. Every day we are learning how to make
durable and exciting EVs that will be a key part of the global
transition to green mobility. The path to green mobility is
challenging, but our commitment to this future is resolute—because
the future is, without question, electric."
Ms. Lan Anh Nguyen, Chief
Financial Officer of VinFast, added: "I am pleased to
share that Q3'24 was in line with our internal forecast, driven by
an acceleration in our top line and an improvement in profitability
as gross loss and net loss narrowed significantly. Increasing
scale, ongoing BOM and production cost optimization and improved
operating efficiencies have already started to have a positive
impact on gross margin and will continue to be key drivers for our
path to profitability. Our overall liquidity position has been
enhanced by the recently announced loans from Vingroup and grants
from our Founder, whereby we expect to receive a potential of
$3.5 billion injection by the end of
2026."
EV Deliveries Up 115%, Revenue Up 49.3%
In the third quarter of 2024, VinFast delivered 21,912 electric
vehicles. This represents a substantial increase of 66% compared to
the second quarter of the same year and a significant 115% increase
compared to the third quarter of 2023. Notably, B2C deliveries
experienced a considerable quarterly increase of 163%, highlighting
strong market demand for VinFast's EVs.
Total revenues were VND12,326,537
million (US$511.6 million) in
the third quarter of 2024, representing an increase of 49.3% from
the third quarter of 2023 and an increase of 42.2% from the second
quarter of 2024.
Gross loss was VND2,957,886
million (US$122.8 million) in
the third quarter of 2024, representing a decrease of 45.6% from
the second quarter of 2024.
The gross margin in the third quarter of 2024 was negative
24.0%. This represents a significant improvement compared to the
negative 27.0% margin in the same quarter of the previous year and
the negative 62.7% margin in the second quarter of 2024.
Net loss was VND13,251,944 million
(US$550.0 million) in the third
quarter of 2024, representing a decrease of 14.8% from the third
quarter of 2023 and a decrease of 29.4% from the second quarter of
2024.
The Vietnamese Market Significantly Contributes to Revenue
Growth
In September, VinFast recorded robust monthly deliveries in its
home market of Vietnam, firmly
positioning VinFast as the top-selling car brand in Vietnam for the month. This marked the first
time ever that a Vietnamese EV brand outperformed all international
competitors to become the market leader in terms of monthly
sales.
In October, VinFast delivered more than 11,000 EVs to customers
in Vietnam, representing a 21%
increase compared to September and bringing total deliveries in
Vietnam to more than 51,000 EVs
from January 1 to October 31, 2024. This positioned VinFast as
the best-selling automotive brand in the Vietnamese market for
October and the first ten months of 2024.
In response to increasing demand for affordable EVs and to
improve production efficiencies, the Company plans to add a new
completely knocked down (CKD) factory in Ha Tinh, Vietnam focusing on VF 3 and VF 5.
The factory will be under a long-term lease structure to optimize
initial spendings.
The factory targets a maximum capacity of 300,000 EVs per year,
subject to demand and general market conditions, with a gradual
ramp up in capacity and production overtime. The construction of
the factory will begin in early December, and the factory is
expected to commence operations in 2025.
VinFast Expands Global Footprint
VinFast continues to expand its global reach. As of October 31, 2024, the Company had 173 showrooms
globally for EVs and 160 showrooms and service workshops for
e-scooters, including VinFast showrooms and dealer showrooms.
The Company's acceleration towards a dealership model as part of
its international strategy is starting to pay off. September was a
record-breaking month for VinFast in North America, driven by a growing dealer
network and continuous improvements to its electric
vehicles. In November, VinFast started delivering the VF 9 to
customers in the U.S. and Canada.
In Indonesia, VinFast has
initiated the delivery of its first right-hand drive VF e34 and VF
5, with a growing network of 17 dealerships spanning 15 cities as
of October 31, 2024. The Company is
also working on its plant in Subang, scheduled to commence
operations in 2025.
In the Philippines, VinFast
opened reservations for three models – the VF 3, VF 5, and VF 7. As
of October 31, VinFast had eight
dealer stores in six Philippine cities.
VinFast's Indian plant, with an annual capacity of 50,000
electric vehicles, is gearing up for equipment and machinery
installation. The plant is scheduled to begin operations in
2025.
VinFast also officially launched its brand in the Middle East in October, opening its first
dealership in United Arab
Emirates, located in downtown Dubai.
VinFast Secures Significant Funding
VinFast has received financial backing from its founder and
parent company. VinFast's Founder and Chief Executive Officer,
Mr. Pham Nhat Vuong, and his
associated companies intend to provide up to VND50 trillion (US$2.1
billion) in free grants to the Company and its subsidiaries
through the end of 2026.
In addition, Vingroup Joint Stock Company intends for it and its
subsidiaries (collectively "Vingroup") to provide VinFast's
subsidiaries incorporated in Vietnam with up to VND35 trillion (US$1.5
billion) in loans through the end of 2026.
Vingroup has approved the plan for additional capital
contributions to VFTP, a direct subsidiary of VinFast holding the
Company's EV manufacturing business in Vietnam, by converting
up to VND80 trillion (US$3.3 billion) of loans extended by Vingroup to
VFTP into preference shares issued by VFTP.
VinFast Poised for Strong Finish to 2024
The Vietnamese Nasdaq-listed electric vehicle manufacturer is
optimistic about its performance in the fourth quarter of 2024.
Building on the strong momentum from the third quarter,
particularly in key markets like Vietnam and North
America, VinFast is reiterating its annual delivery target
of 80,000 vehicles.
To ensure sustainable growth, VinFast remains committed to
prudent financial management and cost optimization. The Company is
actively working to improve its profitability while continuing to
expand its global footprint.
Conference Call
The Company's management will host its 3Q24 earnings
conference call at 8:00 AM U.S.
Eastern Time on November 26, 2024.
Details for the call are below:
- What: VinFast Q3 2024 Financial Results
and Q&A Webcast
- When: Tuesday,
November 26, 2024
- Time: 8:00 a.m. Eastern Standard
Time
- Live
webcast: https://edge.media-server.com/mmc/p/5725mupo
A replay of the webcast will also be made available on the
Company's website.
For additional information, please
visit https://vinfastauto.us/investor-relations
Investor Relations Email: ir@vinfastauto.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 contained herein, 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 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, (ii)
the adverse impact of any legal proceedings and regulatory
inquiries and investigations on the Company's business, (iii) risks
associated with the Company's limited operating history, (iv) the
ability of the Company to achieve profitability, positive cash
flows from operating activities, and a net working capital surplus,
(v) 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, (vi) risks associated
with being a new entrant in the EV industry, (vii) the risks of the
Company's brand, reputation, public credibility, and consumer
confidence in its business being harmed by negative publicity,
(viii) the Company's ability to successfully introduce and market
new products and services, (ix) competition in the automotive
industry, (x) the Company's ability to adequately control the costs
associated with its operations, (xi) the ability of the Company to
obtain components and raw materials according to schedule at
acceptable prices, quality, and volumes acceptable from its
suppliers, (xii) 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, (xiii) the Company's ability to establish
manufacturing facilities outside of Vietnam and expand capacity in a timely manner
and within budget, (xiv) the risk that the Company's actual vehicle
sales and revenue could differ materially from expected levels
based on the number of reservations received, (xv) the demand for,
and consumers' willingness to adopt, EVs, (xvi) the availability
and accessibility of EV charging stations or related
infrastructure, (xvii) the unavailability, reduction, or
elimination of government and economic incentives or government
policies which are favorable for EV manufacturers and buyers,
(xviii) 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, (xix) the risk of battery pack failures in the Company or
its competitor's EVs, (xx) risks related to the failure of the
Company's business partners to deliver their services, (xxi)
errors, bugs, vulnerabilities, design defects, or other issues
related to technology used or involved in the Company's EVs or
operations, (xxii) the risk that the Company's research and
development efforts may not yield expected results, (xxiii) risks
associated with autonomous driving technologies, (xxiv) product
recalls that the Company may be required to make, (xxv) the ability
of the Company's controlling shareholder to control and exert
significant influence on the Company, (xxvi) 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, (xxvii) 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 (xxviii) other risks discussed in our
reports filed or furnished to the SEC.
All forward-looking statements attributable to us or people
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 hereof. 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 herein
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