Quarterly Revenues reached VND8,254,306 million (US$342.7 million)
Quarterly Vehicle Deliveries were 10,027
units
SINGAPORE, Oct. 5, 2023
/PRNewswire/ -- VinFast Auto Ltd. ("VinFast" or the "Company")
(Nasdaq: VFS), a subsidiary of Vingroup JSC, and Vietnam's leading electric automotive
manufacturer, today announced its unaudited financial results for
the quarter ended September 30, 2023.
Operating Highlights for the Third Quarter of
2023
|
3Q2023
|
2Q2023
|
3Q2022
|
EV
Deliveries1
|
10,027
|
9,535
|
153
|
E-scooters
Deliveries
|
28,220
|
10,182
|
13,253
|
- EV deliveries were 10,027 in the third quarter of 2023,
representing an increase of approximately 5.2% from the second
quarter of 2023. We started to see a sales increase in September in
North America, particularly in
Canada.
- E-scooters deliveries were 28,220 in the third quarter
of 2023, representing an increase of approximately 177.2% from the
second quarter of 2023 and an increase of approximately 112.9% from
the third quarter of 2022.
- As of September 30, 2023, the
Company had 126 showrooms globally for EVs and 247 showrooms and
service workshops for e-scooters, including VinFast showrooms and
dealer showrooms.
Financial Highlights for the Third Quarter of
2023
- Vehicle sales were VND7,697,601
million (US$319.5 million),
representing an increase of 185.2% from the third quarter of 2022
and an increase of 2.8% from the second quarter of 2023.
- Total revenues were VND8,254,306
million (US$342.7 million),
representing an increase of 159.3% from the third quarter of 2022
and an increase of 3.8% from the second quarter of 2023. Total
revenues are primarily comprised of revenue from EV sales.
- Gross loss was VND2,467,661
million (US$102.4 million),
representing a decrease of 28.4% from the third quarter of 2022 and
a decrease of 9.1% from the second quarter of 2023.
- Gross margin was negative (29.9%), compared to negative
(108.2%) in the third quarter of 2022 and negative (34.1%) in the
second quarter of 2023.
- Loss from operations was VND8,922,454 million (US$370.4 million), representing a decrease of
9.2% from the third quarter of 2022 and a decrease of 3.3% from the
second quarter of 2023.
- Net loss was VND15,003,845
million (US$622.9 million),
representing an increase of 33.7% from the third quarter of 2022
and an increase of 19.7% from the second quarter of 2023.
- Cash and cash equivalents were VND3,154,673 million (US$131.0 million) as of September 30, 2023.
1
|
Includes VF e34, VF 5,
VF 8, VF 9 and e-bus
|
Key Financial Results for the Third Quarter of 2023
(in VND millions, except for percentages and basis points
("bp"))
|
2023
Q3
|
2023
Q2
|
2022
Q3
|
QoQ
|
YoY
|
Vehicle
Sales
|
7,697,601
|
7,487,874
|
2,699,158
|
2.8 %
|
185.2 %
|
Total
Revenues
|
8,254,306
|
7,952,531
|
3,182,774
|
3.8 %
|
159.3 %
|
Gross Loss
|
(2,467,661)
|
(2,714,622)
|
(3,444,637)
|
(9.1 %)
|
(28.4 %)
|
Gross Margin
|
(29.9 %)
|
(34.1 %)
|
(108.2 %)
|
424bp
|
7833bp
|
Loss from
Operations
|
(8,922,454)
|
(9,230,423)
|
(9,825,614)
|
(3.3 %)
|
(9.2 %)
|
Net Loss
|
(15,003,845)
|
(12,535,202)
|
(11,223,262)
|
19.7 %
|
(33.7 %)
|
Recent Business Updates
Launch of the VF 6 in Vietnam
- On September 29, 2023, VinFast
officially introduced its B-segment EV model in Vietnam. The VF 6 is designed by Torino Design
and equipped with a wide range of smart features and ADAS Level 2
capabilities. With a reasonable price point, the VF 6 is targeted
towards young families.
- The VF 6 is offered in two trims (Base and Plus) at a starting
price of VND675 million
(approximately US$28,000) for the
Base trim and VND765 million
(approximately US$31,800) for the
Plus trim, excluding the battery. The expected WLTP driving range
is 248 miles and 237 miles for the Base and Plus trims,
respectively.
- VinFast will start taking orders for the VF 6 in Vietnam on October 20,
2023.
Concrete steps to execute on VinFast's new business
model
- As unveiled last quarter, VinFast is establishing broad
distribution channels, leveraging local networks and the expertise
of third-party dealerships and distribution to increase coverage in
our expanding list of target markets. We aim for our vehicles to be
present in up to 50 global markets and countries by the end of
2024.
- In the U.S., this approach is intended to provide increased
consumer access to substantially more states, as compared to a
direct-to-customer model. Through the end of September 30, 2023, VinFast has received
Applications/Letters of Intent (LOIs) from 27 dealers with more
than 100 open points across 12 states in the U.S, including
Florida, Texas, North
Carolina, Virginia,
Louisiana, New Jersey and Arkansas, among others.
- To support our dealership partners in growing their store
network in the early stage of partnership, VinFast might consider
transferring some of our existing showrooms to our dealers.
- VinFast continues to maintain and promote its best-in-class
after-sales policy in the market. VinFast's local partners in new
distribution markets are expected to support the policy and
continue to provide a high standard of service for customers and
buyers.
- Leveraging local distributors in many of these key markets can
offer a capital-light model for expansion that can allow VinFast to
be more efficient about capital usage and costs.
Use of discretionary capital expenditures for optimal market
expansion
- VinFast has optimized its capital expenditure plan for global
manufacturing in 2024 and 2025, which is expected to save
approximately US$400 million,
compared to earlier guidance. These savings are expected to be used
towards building CKD factories in Indonesia, the most populous country in
Southeast Asia, and India, the third largest auto market in the
world, according to Nikkei Asia.
- VinFast aims to access the tremendous potential for increased
EV adoption in India and
Indonesia where EV penetration is
currently only 1%, according to Business Standard and Reuters. The
establishment of VinFast facilities in these local markets can
provide access to government incentives for local manufacturing,
relief from certain tariffs and taxes and access to raw materials
at attractive rates.
- Each CKD facility in Indonesia
and India has a planned total
capacity of up to 50,000 cars per year and an estimated total
capital expenditure of US$150 million
to US$200 million in phase 1.
Production is expected to commence by 2026.
Chairman and Vingroup support
commitment
- In April 2023, VinFast entered
into a capital funding agreement (as amended from time to time, the
"Capital Funding Agreement") that provides a framework for VinFast
to receive up to VND60,000 billion
(US$2.5 billion), consisting of
VND24,000 billion (US$1 billion) in grants from its Chairman, Mr.
Pham Nhat Vuong, and VND24,000 billion (US$1
billion) in loans and VND12,000
billion (US$0.5 billion) in
grants from Vingroup to facilitate VinFast's ongoing growth. The
Chairman's commitment could be provided as a grant from two of
VinFast's key shareholders that are controlled by the Chairman.
Disbursements were and are subject to the parties agreeing to enter
into a definitive loan agreement, the financial resources of the
Chairman, the relevant VinFast shareholders and Vingroup and
necessary approvals from the relevant governing bodies of
Vingroup.
- As of September 30, 2023,
Vingroup had disbursed approximately VND23,000 billion (US$955
million) in loans to VinFast in accordance with the Capital
Funding Agreement. VinFast expects to receive up to VND12,000 billion (US$0.5
billion) in grants from Vingroup in the next six
months.
- In September 2023, Chairman
Pham Nhat Vuong disbursed a total
amount of VND7,000 billion
(US$291 million) to VinFast as a free
grant in accordance with the Capital Funding Agreement.
- The Company will receive all of the proceeds from the sale from
time to time of up to approximately 46 million ordinary shares by
two of VinFast's key shareholders that are controlled by the
Chairman, net of any sales commissions, fees and expenses,
brokerages, taxes and legal costs. If the sum of such proceeds and
the aforementioned VND7,000 billion
(US$291 million) contribution by the
Chairman is more than VND24,000
billion (US$1 billion),
VinFast will receive the surplus amount from the two key
shareholders as a further grant on behalf of the Chairman.
- Overall, VinFast expects to receive up to VND29,000 billion (US$1.2
billion) or more in grants from Vingroup, the Chairman and
two key shareholders in the next six months.
New equity funding
- In the third quarter of 2023, the Company received
approximately US$240 million from its
deSPAC transaction and a private strategic investment by Gotion
Inc.
Expansion of North America
charging network
- VinFast currently has over 107,000 charging points enabled on
our platform in North America, an
increase of 10,000 compared to the previous quarter. This number is
expected to grow as the company partners with new charging
operators, and as VinFast's current partners invest in their own
network growth.
- VinFast customers currently have access to 90% of DC fast
chargers available in the public network (excluding Tesla's).
VinFast customers can benefit from a broad charging network with a
promise of convenience and reliability.
- VinFast plans to add new charging operators in California and Washington to its network and is in
discussions on potential NACS adoption.
Management Commentary
Madam Thuy Le, Global Chief
Executive Officer of VinFast, said: "This is the first quarter that
VinFast was listed on the Nasdaq and complies with reporting and
disclosure standards required for foreign companies listed in the
U.S. We have inspirational and ambitious plans to build a
greener future for everyone. The successes achieved in the past two
quarters are just the first stepping stone. We have come up with a
concrete action plan to deliver on each growth milestone and to
accelerate our global expansion."
Mr. David Mansfield, Chief
Financial Officer, added, "We see strong momentum in our business,
supported by growing delivery volumes, increased revenues, and an
improved path to profitability. We are focused on our cost cutting
initiatives, optimizing return on capital invested, and switching
towards a capital-light distribution model. VinFast is on track to
meet its deliveries guidance and is well-positioned to expand in
strategic markets such as Indonesia and India. We received significant funding in the
third quarter from Vingroup and Chairman Pham Nhat Vuong and will continue to look for
opportunities to strengthen our strong balance sheet to support
growth and achieve further success."
Financial Results for the Third Quarter of
2023
Revenues
- Total revenues were VND8,254,306
million (US$342.7 million),
representing an increase of 159.3% from the third quarter of 2022
and an increase of 3.8% from the second quarter of 2023.
- Vehicle sales were VND7,697,601
million (US$319.5 million),
representing an increase of 185.2% from the third quarter of 2022
and an increase of 2.8% from the second quarter of 2023. The
increase in vehicle sales over the third quarter of 2022 was mainly
due to a significant increase in EV and e-scooter sales volume in
Vietnam in the third quarter of
2023, including the VF e34, VF 8, VF 5, VF 9, and the Feliz and
Evo. This increase over the third quarter of 2022 was partially
offset by phasing out production of ICE vehicles in furtherance of
our plan to fully transform into a pure EV player, which resulted
in minimal revenue from sales of ICE vehicles in the third quarter
of 2023.
Cost of Sales and Gross Margin
- Cost of sales was VND10,721,967
million (US$445.1 million),
representing an increase of 61.8% from the third quarter of 2022
and flat versus the second quarter of 2023. The increase over the
third quarter of 2022 was primarily attributable to increases in
the cost of vehicles sold as the Company delivered more EVs and
e-scooters to customers in the third quarter of 2023. This increase
was partially offset by a decrease in the total cost of ICE
vehicles sold, due to the decrease in ICE vehicle sales volume in
furtherance of our plan to fully transform into a pure EV player
and a decrease in accelerated amortization and depreciation
expenses due to the ICE production phase out.
- Gross loss was VND2,467,661
million (US$102.4 million),
representing a decrease of 28.4% from the third quarter of 2022 and
a decrease of 9.1% from the second quarter of 2023.
- Gross margin was negative (29.9%), as compared to
negative (108.2%) in the third quarter of 2022 and negative (34.1%)
in the second quarter of 2023. The improvement of gross margin over
the third quarter of 2022 was mainly attributed to a strong
increase in sales volume and a decrease in charges to write down
the carrying value of inventories. The improvement of gross margin
over the second quarter of 2023 was due to lower sales volume to
VinFirst customers, who were entitled to more incentives, and
better economies of scale resulting from a strong increase in sales
volume of e-scooters.
Operating Expenses
- Research and development (R&D) costs were
VND3,167,066 million (US$131.5 million), representing a decrease of
11.9% from the third quarter of 2022 and a decrease of 12.3% from
the second quarter of 2023. The decrease over the third quarter of
2022 and the second quarter of 2023 was mainly attributed to the
decrease in R&D costs paid to external suppliers (including
taxes on expenses paid out to suppliers) and other costs related to
our R&D activities for EVs as we brought three EV models into
commercial production in the last four quarters.
- Selling, general and administrative expenses were
VND2,763,436 million (US$114.7 million), representing an increase of
43.4% from the third quarter of 2022 and flat versus the second
quarter of 2023. The increase over the third quarter of 2022 was
primarily attributable to an increase in labor costs and rental
costs, which are primarily attributable to our efforts to scale up
our sales and administrative operations in North America and Europe.
Loss from Operations
- Loss from operations was VND8,922,454 million (US$370.4 million), representing a decrease of
9.2% from the third quarter of 2022 and a decrease of 3.3% from the
second quarter of 2023.
Net Loss and Earnings Per Share
- Net loss on financial instruments at fair value through
profit or loss was VND2,561,432
million (US$106.3 million),
representing a decrease of 515.1% from net gain of the third
quarter of 2022 and an increase of 321.6% from net loss of the
second quarter of 2023. The decrease over net gain of the third
quarter of 2022 and increase over net loss of the second quarter of
2023 was mainly attributable to changes in the fair value of
currency interest rate swaps contracts, financial liabilities in
respect of Dividend Preferred Shares, and warrants.
- Net loss was VND15,003,845
million (US$622.9 million),
representing an increase of 33.7% from the third quarter of 2022
and an increase of 19.7% from the second quarter of 2023.
- Net loss attributable to controlling interest was
VND14,986,693 million (US$622.1 million), representing an increase of
33.7% from the third quarter of 2022 and an increase of 19.8% from
the second quarter of 2023.
- Basic and diluted net loss per ordinary share were both
VND6,491 (US$0.27), compared with VND4,876 (US$0.20)
in the third quarter of 2022 and VND5,431 (US$ 0.23)
in the second quarter of 2023.
Balance Sheet
- Cash and cash equivalents were VND3,154,673 million (US$
131.0 million) as of September 30,
2023.
Business Outlook
- FY2023 Delivery Target: VinFast affirms its FY2023
delivery target of between 40,000 and 50,000 vehicles.
- FY2024 and FY2025 Capital Expenditure Plan: VinFast
expects a saving of US$400 million in
capital expenditures planned for global manufacturing between 2024
and 2025, which is expected to be used for CKD factories in
Indonesia and India. Overall, VinFast expects a net decrease
in total capital expenditures for global manufacturing between 2024
and 2025.
- EV Models: VinFast is on track to commence delivery of
the VF 6 in Vietnam in the fourth
quarter, and deliveries of the VF 7 and VF 3 in 2024.
The Company believes that it has sufficient runway to grow in
the coming years and will continue to look for opportunities to
strengthen its balance sheet.
This outlook reflects the Company's current and preliminary view
on the business and existing market conditions, which is subject
to change.
Conference Call
The Company's management will host its third quarter 2023
earnings conference call at 8:00 AM
U.S. Eastern Time on October 5,
2023.
Live Webcast:
https://edge.media-server.com/mmc/p/46isto5b
Q&A Participation:
https://register.vevent.com/register/BIcfb9f3e3614f4ce9a98ae10ca4bea162
VinFast Auto
Ltd.
Unaudited Interim
Condensed Consolidated Balance Sheets
|
|
|
|
As of December
31,
2022
|
As of September
30,
2023
|
As of September
30,
2023
|
|
|
VND
million
|
VND
million
|
USD
|
|
|
|
(Unaudited)
|
(Unaudited)
|
ASSETS
|
|
|
|
|
|
|
|
|
|
CURRENT
ASSETS
|
|
|
|
|
Cash and cash
equivalents
|
|
4,271,442
|
3,154,673
|
130,959,068
|
Short-term restricted
cash
|
|
-
|
35,766
|
1,484,744
|
Trade
receivables
|
|
652,922
|
1,157,810
|
48,063,847
|
Advances to
suppliers
|
|
8,968,752
|
6,360,490
|
264,041,264
|
Inventories,
net
|
|
21,607,277
|
24,408,253
|
1,013,253,062
|
Short-term prepayments
and other receivables
|
|
6,457,169
|
6,875,276
|
285,411,432
|
Short-term derivative
assets
|
|
532,718
|
570,454
|
23,681,099
|
Current net investment
in sales-type lease
|
|
5,448
|
26,930
|
1,117,938
|
Short-term
investments
|
|
3,902
|
4,053
|
168,251
|
Short-term amounts due
from related parties
|
|
1,978,097
|
3,811,558
|
158,228,154
|
Assets classified as
held for sale
|
|
360,893
|
356,104
|
14,782,847
|
Total current
assets
|
|
44,838,620
|
46,761,367
|
1,941,191,706
|
|
|
|
|
|
NON-CURRENT
ASSETS
|
|
|
|
|
Long-term restricted
cash
|
|
-
|
631,959
|
26,234,339
|
Property, plant and
equipment, net
|
|
57,188,667
|
63,934,427
|
2,654,092,200
|
Intangible assets,
net
|
|
1,461,071
|
1,535,181
|
63,729,545
|
Goodwill
|
|
272,203
|
272,203
|
11,299,888
|
Operating lease
right-of-use assets
|
|
4,558,983
|
6,670,955
|
276,929,511
|
Long-term derivative
assets
|
|
696,332
|
279,675
|
11,610,071
|
Long-term advances to
suppliers
|
|
29,082
|
-
|
-
|
Long-term
prepayments
|
|
7,611
|
35,296
|
1,465,233
|
Non-current net
investment in sales-type lease
|
|
82,062
|
310,859
|
12,904,604
|
Long-term amounts due
from related parties
|
|
44,533
|
47,445
|
1,969,571
|
Other non-current
assets
|
|
4,426,135
|
4,362,490
|
181,098,842
|
Total non-current
assets
|
|
68,766,679
|
78,080,490
|
3,241,333,804
|
|
|
|
|
|
TOTAL
ASSETS
|
|
113,605,299
|
124,841,857
|
5,182,525,510
|
VinFast Auto
Ltd.
Unaudited Interim
Condensed Consolidated Balance Sheets (continued)
|
|
|
|
As of December
31,
2022
|
As of September
30,
2023
|
As of September
30,
2023
|
|
|
VND
million
|
VND
million
|
USD
|
|
|
|
(Unaudited)
|
(Unaudited)
|
DEFICIT AND
LIABILITIES
|
|
|
|
|
|
|
|
|
|
CURRENT
LIABILITIES
|
|
|
|
|
Short-term and current
portion of long-term
interest-bearing loans
and borrowings
|
|
14,579,553
|
21,154,961
|
878,200,050
|
Trade
payables
|
|
16,636,820
|
10,551,587
|
438,025,114
|
Deposits and down
payment from customers
|
|
1,572,537
|
630,069
|
26,155,880
|
Short-term deferred
revenue
|
|
107,448
|
129,999
|
5,396,613
|
Short-term
accruals
|
|
11,056,666
|
10,101,033
|
419,321,392
|
Other current
liabilities
|
|
4,177,978
|
8,917,624
|
370,194,861
|
Current operating lease
liabilities
|
|
768,883
|
1,345,977
|
55,875,171
|
Amounts due to related
parties
|
|
17,325,317
|
45,974,308
|
1,908,518,743
|
Total current
liabilities
|
|
66,225,202
|
98,805,558
|
4,101,687,824
|
|
|
|
|
|
NON-CURRENT
LIABILITIES
|
|
|
|
|
Long-term
interest-bearing loans and borrowings
|
|
41,624,960
|
45,678,450
|
1,896,236,872
|
Long-term financial
liability
|
|
15,180,723
|
17,245,422
|
715,904,438
|
Other non-current
liabilities
|
|
606,429
|
1,833,625
|
76,118,768
|
Non-current operating
lease liabilities
|
|
3,256,351
|
5,035,167
|
209,023,496
|
Long-term deferred
revenue
|
|
499,395
|
920,015
|
38,192,328
|
Deferred tax
liabilities
|
|
947,981
|
939,399
|
38,997,011
|
Long-term
accruals
|
|
16,007
|
134,286
|
5,574,578
|
Amounts due to related
parties
|
|
21,918,710
|
18,782,079
|
779,695,255
|
Total non-current
liabilities
|
|
84,050,556
|
90,568,443
|
3,759,742,746
|
|
|
|
|
|
DEFICIT
|
|
|
|
|
Ordinary shares –
VinFast Auto (2,299,999,998
and 2,332,229,366
shares issued and outstanding
as of December 31, 2022
and September 30, 2023 respectively)
|
|
871,021
|
7,621,603
|
316,393,499
|
Accumulated
losses
|
|
(127,188,455)
|
(168,785,639)
|
(7,006,751,588)
|
Additional paid-in
capital
|
|
12,311,667
|
19,356,607
|
803,545,477
|
Other comprehensive
loss
|
|
(104,065)
|
(101,400)
|
(4,209,390)
|
Deficit attributable
to equity holders of the parent
|
|
(114,109,832)
|
(141,908,829)
|
(5,891,022,002)
|
Non-controlling
interests
|
|
77,439,373
|
77,376,685
|
3,212,116,942
|
Total
deficit
|
|
(36,670,459)
|
(64,532,144)
|
(2,678,905,060)
|
|
|
|
|
|
TOTAL DEFICIT AND
LIABILITIES
|
|
113,605,299
|
124,841,857
|
5,182,525,510
|
VinFast Auto
Ltd.
Unaudited
Interim Condensed Consolidated Statements of
Operations
|
|
|
|
|
For the three months
ended September 30,
|
|
For the nine months
ended September 30,
|
|
2022
|
2023
|
2023
|
|
2022
|
2023
|
2023
|
|
|
VND
million
|
VND
million
|
USD
|
|
VND
million
|
VND
million
|
USD
|
|
|
(Unaudited)
|
(Unaudited)
|
(Unaudited)
|
|
(Unaudited)
|
(Unaudited)
|
(Unaudited)
|
|
Revenues
|
|
|
|
|
|
|
|
|
Sales of
vehicles
|
2,699,158
|
7,697,601
|
319,548,383
|
|
8,779,656
|
16,722,094
|
694,179,667
|
|
Sales of
merchandise
|
-
|
14,656
|
608,410
|
|
46,414
|
52,925
|
2,197,061
|
|
Sales of spare parts
and components
|
428,205
|
215,420
|
8,942,671
|
|
1,463,614
|
587,758
|
24,399,435
|
|
Rendering of
services
|
50,723
|
127,059
|
5,274,565
|
|
159,782
|
300,046
|
12,455,727
|
|
|
|
|
|
|
|
|
|
|
Rental
income
|
|
|
|
|
|
|
|
|
Revenue from leasing
activities
|
4,688
|
199,570
|
8,284,695
|
|
51,006
|
515,640
|
21,405,621
|
|
Revenues
|
3,182,774
|
8,254,306
|
342,658,724
|
|
10,500,472
|
18,178,463
|
754,637,511
|
|
Cost of vehicles
sold
|
(6,155,256)
|
(10,043,980)
|
(416,952,966)
|
|
(17,485,112)
|
(25,483,143)
|
(1,057,874,673)
|
|
Cost of merchandise
sold
|
-
|
(14,831)
|
(615,675)
|
|
(46,245)
|
(53,364)
|
(2,215,285)
|
|
Cost of spare parts and
components sold
|
(413,965)
|
(134,965)
|
(5,602,765)
|
|
(1,310,118)
|
(365,791)
|
(15,184,981)
|
|
Cost of rendering
services
|
(59,753)
|
(294,448)
|
(12,223,338)
|
|
(193,456)
|
(683,044)
|
(28,355,017)
|
|
Cost of leasing
activities
|
-
|
(233,743)
|
(9,703,309)
|
|
(42,849)
|
(584,174)
|
(24,250,653)
|
|
Cost of
sales
|
(6,627,411)
|
(10,721,967)
|
(445,098,053)
|
|
(19,077,780)
|
(27,169,516)
|
(1,127,880,609)
|
|
|
|
|
|
|
|
|
|
|
Gross
loss
|
(3,444,637)
|
(2,467,661)
|
(102,439,329)
|
|
(8,577,308)
|
(8,991,053)
|
(373,243,099)
|
|
|
|
|
|
|
|
|
|
|
Operating
expenses
|
|
|
|
|
|
|
|
|
Research and
development costs
|
(3,593,736)
|
(3,167,066)
|
(131,473,536)
|
|
(14,041,574)
|
(11,787,830)
|
(489,344,929)
|
|
Selling and
distribution costs
|
(1,069,610)
|
(1,462,236)
|
(60,701,399)
|
|
(3,361,210)
|
(4,031,377)
|
(167,353,439)
|
|
Administrative
expenses
|
(857,868)
|
(1,301,200)
|
(54,016,356)
|
|
(1,981,183)
|
(3,862,061)
|
(160,324,671)
|
|
Net other operating
expenses
|
(859,763)
|
(524,291)
|
(21,764,747)
|
|
(1,475,251)
|
(622,829)
|
(25,855,328)
|
|
|
|
|
|
|
|
|
|
|
Operating
loss
|
(9,825,614)
|
(8,922,454)
|
(370,395,367)
|
|
(29,436,526)
|
(29,295,150)
|
(1,216,121,466)
|
|
Finance
income
|
12,243
|
25,207
|
1,046,412
|
|
91,861
|
66,470
|
2,759,351
|
|
Finance
costs
|
(2,027,884)
|
(3,526,722)
|
(146,403,836)
|
|
(5,454,794)
|
(8,599,269)
|
(356,979,078)
|
|
Net (loss)/gain on
financial instruments
at fair value through
profit or loss
|
617,010
|
(2,561,432)
|
(106,332,019)
|
|
1,277,296
|
(3,840,505)
|
(159,429,823)
|
|
|
|
|
|
|
|
|
|
|
Loss before income
tax expense
|
(11,224,245)
|
(14,985,401)
|
(622,084,810)
|
|
(33,522,163)
|
(41,668,454)
|
(1,729,771,016)
|
|
Tax
income/(expense)
|
983
|
(18,444)
|
(765,661)
|
|
(1,013,254)
|
8,582
|
356,262
|
|
|
|
|
|
|
|
|
|
|
Net loss for the
period
|
(11,223,262)
|
(15,003,845)
|
(622,850,471)
|
|
(34,535,417)
|
(41,659,872)
|
(1,729,414,754)
|
|
Net loss attributable
to non-controlling interests
|
(14,623)
|
(17,152)
|
(712,026)
|
|
(37,360)
|
(66,490)
|
(2,760,181)
|
|
|
|
|
|
|
|
|
|
|
Net loss
attributable to controlling interest
|
(11,208,639)
|
(14,986,693)
|
(622,138,445)
|
|
(34,498,057)
|
(41,593,382)
|
(1,726,654,573)
|
|
|
|
|
|
|
|
|
|
|
|
VinFast Auto
Ltd.
Unaudited
Interim Condensed Consolidated Statements of Comprehensive
Loss
|
|
|
For the three months
ended September 30,
|
For the nine months
ended September 30,
|
|
2022
|
2023
|
2023
|
2022
|
2023
|
2023
|
|
VND
million
|
VND
million
|
USD
|
VND
million
|
VND
million
|
USD
|
|
(Unaudited)
|
(Unaudited)
|
(Unaudited)
|
(Unaudited)
|
(Unaudited)
|
(Unaudited)
|
|
|
|
|
|
|
|
Net loss for the
period
|
(11,223,262)
|
(15,003,845)
|
(622,850,471)
|
(34,535,417)
|
(41,659,872)
|
(1,729,414,754)
|
|
|
|
|
|
|
|
Other comprehensive
(loss)/income
|
|
|
|
|
|
|
Other comprehensive
(loss)/income that will be reclassified
to profit or loss in
subsequent periods (net of tax):
|
|
|
|
|
|
|
Exchange differences on
translation of foreign operations
|
16,591
|
56
|
2,325
|
7,882
|
2,665
|
110,632
|
|
|
|
|
|
|
|
Net other
comprehensive (loss)/income that will be
reclassified to
profit or loss in subsequent periods
|
16,591
|
56
|
2,325
|
7,882
|
2,665
|
110,632
|
|
|
|
|
|
|
|
Total comprehensive
loss for the period, net of tax
|
(11,206,671)
|
(15,003,789)
|
(622,848,146)
|
(34,527,535)
|
(41,657,207)
|
(1,729,304,122)
|
Net loss attributable
to non-controlling interests
|
(14,623)
|
(17,152)
|
(712,026)
|
(37,360)
|
(66,490)
|
(2,760,181)
|
Comprehensive loss
attributable to controlling interest
|
(11,192,048)
|
(14,986,637)
|
(622,136,120)
|
(34,490,175)
|
(41,590,717)
|
(1,726,543,941)
|
|
|
|
|
|
|
|
Net loss per share
attributable to ordinary shareholders
|
VND
|
VND
|
USD
|
VND
|
VND
|
USD
|
Basic and
diluted
|
(4,876)
|
(6,491)
|
(0.27)
|
(15,006)
|
(18,060)
|
(0.75)
|
|
|
|
|
|
|
Unit:
Shares
|
Weighted average
number of shares used in loss per
share
computation
|
|
|
|
|
|
|
Basic and
diluted
|
2,298,963,211
|
2,308,837,804
|
2,308,837,804
|
2,298,963,211
|
2,303,020,921
|
2,303,020,921
|
VinFast Auto
Ltd.
Unaudited Interim
Condensed Consolidated Statements of Cash Flows
|
|
|
For the nine months
ended September 30,
|
|
2022
|
2023
|
2023
|
|
VND
million
|
VND
million
|
USD
|
|
(Unaudited)
|
(Unaudited)
|
(Unaudited)
|
|
|
|
|
OPERATING
ACTIVITIES
|
|
|
|
Net loss for the
period
|
(34,535,417)
|
(41,659,872)
|
(1,729,414,754)
|
Adjustments to
reconcile net loss to net cash flows:
|
|
|
|
Depreciation of
property, plant and equipment
|
2,930,220
|
4,270,158
|
177,265,889
|
Amortization of
intangible assets
|
2,141,071
|
212,631
|
8,826,892
|
Impairment of assets
and changes in fair value of held for sale assets
|
80,787
|
1,112,176
|
46,169,455
|
Changes in operating
lease right-of-use assets
|
391,477
|
823,044
|
34,166,798
|
Provision related to
compensation expenses, assurance-type warranties
and net realizable
value of inventories
|
4,287,318
|
4,599,665
|
190,944,622
|
Allowance against
receivable and advances to suppliers
|
172,571
|
-
|
-
|
Deferred tax
expenses/(income)
|
1,013,253
|
(8,582)
|
(356,262)
|
Unrealized foreign
exchange losses
|
1,453,928
|
679,868
|
28,223,172
|
Investment
losses
|
18,962
|
-
|
-
|
Net (gain)/losses on
financial instruments at fair value through profit or
loss
|
(1,277,296)
|
3,840,505
|
159,429,823
|
Change in amortized
costs of financial instruments measured at amortized
cost other than nominal
interest
|
1,450,505
|
2,810,683
|
116,679,107
|
Change in working
capital:
|
|
|
|
Trade receivables and
advance to suppliers
|
(3,586,049)
|
(1,734,495)
|
(72,003,612)
|
Inventories
|
(9,516,719)
|
(6,441,491)
|
(267,403,836)
|
Trade payables,
deferred revenue and other payables
|
9,798,740
|
(13,490,318)
|
(560,019,843)
|
Operating lease
liabilities
|
(378,096)
|
(590,283)
|
(24,504,255)
|
Prepayments, other
receivables and other assets
|
25,994
|
(62,667)
|
(2,601,477)
|
Net cash flows used
in operating activities
|
(25,528,751)
|
(45,638,978)
|
(1,894,598,281)
|
VinFast Auto
Ltd.
Unaudited Interim
Condensed Consolidated Statements of Cash Flows
(continued)
|
|
|
For the nine months
ended September 30,
|
|
2022
|
2023
|
2023
|
|
VND
million
|
VND
million
|
USD
|
|
(Unaudited)
|
(Unaudited)
|
(Unaudited)
|
INVESTING
ACTIVITIES
|
|
|
|
Purchase of property,
plant and equipment, and
intangible assets
|
(12,674,364)
|
(20,022,855)
|
(831,203,246)
|
Repayment under a
business investment and cooperation contract
|
(968,773)
|
-
|
-
|
Proceeds from disposal
of property, plant and equipment
|
1,528,669
|
922,675
|
38,302,752
|
Disbursement of
loans
|
(3,736)
|
-
|
-
|
Collection of
loans
|
1,017,899
|
545,400
|
22,641,039
|
Proceeds from disposal
of equity investment (net of cash held
by entity being
disposed)
|
(2,240)
|
-
|
-
|
Net cash flows used
in investing activities
|
(11,102,545)
|
(18,554,780)
|
(770,259,455)
|
|
|
|
|
FINANCING
ACTIVITIES
|
|
|
|
Capital contribution
from owners
|
6,000,000
|
6,778,711
|
281,402,756
|
Deemed contribution
from owners
|
646,655
|
7,000,000
|
290,589,066
|
Proceeds from
borrowings
|
53,244,294
|
74,955,275
|
3,111,597,618
|
Cash received under a
business cooperation contract
|
-
|
5,875,000
|
243,887,251
|
Repayment of
borrowings
|
(24,438,219)
|
(30,884,928)
|
(1,282,117,481)
|
Net cash flows from
financing activities
|
35,452,730
|
63,724,058
|
2,645,359,210
|
|
|
|
|
Net decrease in cash
and cash equivalents and
restricted
cash
|
(1,178,566)
|
(469,700)
|
(19,498,526)
|
Cash, cash equivalents
and restricted cash at beginning
of the
period
|
3,024,916
|
4,271,442
|
177,319,191
|
Net foreign exchange
difference on cash, cash
equivalents
and restricted
cash
|
8,251
|
20,656
|
857,487
|
Cash, cash
equivalents and restricted cash at end of the period
|
1,854,601
|
3,822,398
|
158,678,152
|
|
|
|
|
Supplement
disclosures of non-cash activities
|
|
|
|
Non-cash property,
plant and equipment additions
|
7,699,963
|
9,269,312
|
384,794,387
|
Establishment of
right-of-use assets and lease liabilities
at commencement
dates
|
2,200,405
|
2,935,015
|
121,840,467
|
|
|
|
|
Forward Looking Statements
Forward-looking statements in this press release, 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 SEC.
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 press release. 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
press release 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.
Exchange Rates
This announcement contains translations of certain Vietnam Dong
amounts into U.S. dollars at specified rates solely for the
convenience of the reader. Unless otherwise stated, all
translations from Vietnam Dong to U.S. dollars were made at the
rate of VND24,089 to US$1.00, representing the central exchange rate
quoted by the State Bank of Vietnam Operations Centre as of
September 30, 2023. The Company makes
no representation that the Vietnam Dong or U.S. dollars amounts
referred could be converted into U.S. dollars or Vietnam Dong, as
the case may be, at any particular rate or at all.
About VinFast Auto Ltd.
VinFast – a subsidiary of Vingroup JSC – is Vietnam's leading automotive manufacturer
committed to its mission of creating a green future for everyone.
VinFast manufactures a portfolio of electric SUVs, e-scooters and
e-buses in Vietnam and exports to
the United States, and soon,
Europe. Learn more
at www.vinfastauto.us.
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SOURCE VinFast