Quarterly Revenues reached VND7,952,531 million (US$334.1 million)
Quarterly Vehicle Deliveries were 9,535 units
SINGAPORE, Sept. 21,
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 June 30,
2023.
Operating Highlights for the Second Quarter of
2023
|
2Q2023
|
1Q2023
|
2Q2022
|
EV
Deliveries1
|
9,535
|
1,780
|
1,789
|
E-scooters
Deliveries
|
10,182
|
9,757
|
15,299
|
- EV deliveries were 9,535 in the second quarter of 2023,
representing an increase of approximately 436% from the first
quarter of 2023.
- E-scooters deliveries were 10,182 in the second quarter
of 2023, 4% increase from the first quarter of 2023.
- As of June 30, 2023, the Company
had 122 showrooms globally for EVs and 245 showrooms and service
workshops for e-scooters.
Financial Highlights for the Second Quarter of
2023
- Vehicle sales were VND7,487,874
million (US$314.6 million),
representing an increase of 147.0% from the second quarter of 2022
and an increase of 387.3% from the first quarter of 2023.
- Total revenues were VND7,952,531
million (US$334.1 million),
representing an increase of 131.2% from the second quarter of 2022
and an increase of 303.3% from the first quarter of 2023. Total
revenues primarily comprise of revenue from selling EVs.
- Gross loss was VND2,714,622
million (US$114.1 million),
representing an increase of 7.5% from the second quarter of 2022
and a decrease of 28.7% from the first quarter of 2023.
- Gross margin improved to negative 34.1% in the second
quarter of 2023, compared to negative 73.4% in the second quarter
of 2022 and negative 193.2% in the first quarter of 2023.
- Loss from operations improved to VND9,230,423 million (US$387.8 million) in the second quarter of 2023,
representing a decrease of 20.0% from the second quarter of 2022
and a decrease of 17.2% from the first quarter of 2023.
- Net loss improved to a loss of VND12,535,202 million (US$526.7 million), representing a decrease of
8.2% from the second quarter of 2022 and a decrease of 11.2% from
the first quarter of 2023.
- Cash and cash equivalents were VND1,600,653 million (US$67.3 million), as of June 30, 2023.
______________________________________
|
1 Includes
VF e34, VF 5, VF 8, VF 9 and e-bus
|
Key Financial Results for the Second Quarter of 2023
(in VND millions, except for percentages and basis points
("bp"))
|
2023
Q2
|
2023
Q1
|
2022
Q2
|
QoQ
|
YoY
|
Vehicle
Sales
|
7,487,874
|
1,536,619
|
3,031,170
|
387.3 %
|
147.0 %
|
Total
Revenues
|
7,952,531
|
1,971,626
|
3,439,302
|
303.3 %
|
131.2 %
|
Gross Loss
|
(2,714,622)
|
(3,808,770)
|
(2,524,537)
|
(28.7 %)
|
7.5 %
|
Gross Margin
|
(34.1 %)
|
(193.2 %)
|
(73.4 %)
|
15,904bp
|
3,927bp
|
Loss from
Operations
|
(9,230,423)
|
(11,142,273)
|
(11,540,423)
|
(17.2 %)
|
(20.0 %)
|
Net Loss
|
(12,535,202)
|
(14,120,825)
|
(13,651,818)
|
(11.2 %)
|
(8.2 %)
|
Second Quarter of 2023 Business Updates
Business Combination with Black Spade Acquisition Co
("Black Spade")
- On May 12, 2023, the Company
announced a business combination with Black Spade, at an
approximate $27 billion enterprise
value.
- The business combination was completed on August 11, 2023, and VinFast's ordinary shares
began trading in the U.S. on Nasdaq under the ticker symbol "VFS"
on August 15, 2023.
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 approximately $2.5
billion in grants and loans from its Chairman, Mr.
Pham Nhat Vuong, and Vingroup to
facilitate VinFast's ongoing growth. Up to $1 billion would be provided as a grant from its
Chairman or two of VinFast's key shareholders, Vietnam Investment
Group Joint Stock Company ("VIG") and Asian Star Trading &
Investment Pte. Ltd. ("Asian Star"), which are each controlled by
the Chairman. The remainder would be provided in the form of a
grant of up to approximately $504
million and a loan of up to $1
billion from Vingroup. Disbursements 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.
Filing of registration statement on Form F-1
- On September 12, 2023, the
Company filed a registration statement on Form F-1 to register the
offer and sale from time to time of ordinary shares by certain
selling securityholders, including by Black Spade Sponsor LLC (the
"Sponsor") and other persons associated with Black Spade and our
key shareholders, VIG and Asian Star. The registration statement
has not yet been declared effective by the Securities and Exchange
Commission.
- The ordinary shares being registered for resale by VIG and
Asian Star represent approximately 2.0% of our outstanding shares
and have been released from lock-up restrictions. VIG, Asian Star
and Vingroup together will continue to hold 96.6% of VinFast's
outstanding shares that are subject to lock-up restrictions.
- The Company also registered for 15,000,000 ordinary shares
issued to Gotion Inc. ("Gotion") pursuant to the terms of the
ordinary shares subscription agreement, dated as of June 30, 2023.
- In total, ordinary shares representing 3.1% of VinFast's
outstanding ordinary shares are being registered for resale
(including VIG's and Asian Star's ordinary shares). Ordinary shares
held by the Sponsor and other persons associated with Black Spade
have been released from lock-up restrictions, except ordinary
shares held by the Sponsor pursuant to its earlier exercise of
warrants and by the backstop subscription investor, which continue
to be subject to lock-up restrictions reduced from 12 to six
months.
- The Company will receive all of the proceeds from the sale of
ordinary shares pursuant to the registration statement by VIG and
Asian Star, net of any sales commissions, fees, brokerages and
taxes. Such proceeds will be provided to the Company by VIG and
Asian Star on behalf of our Chairman in relation to our Chairman's
aforementioned commitment under the Capital Funding Agreement. Any
additional proceeds will be provided to the Company by VIG and
Asian Star as a further grant on behalf of our Chairman.
Market Expansion
- For VinFast's next phase of development ("Phase II") beginning
in 2024, it plans to adopt a multi-channel distribution strategy
and differentiated model for each market category:
- Model 1 – VinFast Directed Distribution: Under this
model, VinFast plans to act as its own distributor and may
initially open showrooms to introduce the VinFast brand. Shortly
thereafter, VinFast plans to roll out dealership networks in market
clusters such as Vietnam,
North America, Europe (France, Germany, Netherlands), and other new markets,
including, but not limited to, Indonesia, India, the rest of Europe and the Middle East.
VinFast has identified Indonesia
from among seven new market clusters as a key potential market for
the potential establishment of manufacturing facilities for its EVs
and batteries due to the relatively low cost and availability of
domestic raw materials. Based on the Company's evaluation of the
market opportunity in Indonesia, a
preliminary investment target of up to approximately $1.2 billion has been set for Indonesia in the long-term. The target
includes approximately $150 to
$200 million that the Company
envisions applying toward the establishment of a CKD factory with
production capacity in the range of 30,000 and 50,000 cars per year
and a target production start date no later than in 2026.
- Model 2 – 3P Distribution: The Company has identified an
additional 40-50 markets for which it plans to engage high-quality
distributors to import and distribute VinFast cars into local
markets
VinFast VF 9 Received EPA-Rated Ranges of 330/291 Miles
(Eco/Plus Trim)
- In August 2023, the VF 9 model
received a certified EPA range of 330 miles for the Eco trim and
291 miles for the Plus trim when fully charged.
- The VF 9 is a full-size, seven-passenger, all-electric SUV,
with an MSRP of $83,000 and
$91,000 for the Eco and Plus trims,
respectively.
- VF 9 deliveries have been made to customers in Vietnam and the model is available for
reservations globally.
VinFast Broke Ground at North Carolina Facility
- On July 28, 2023, VinFast broke
ground at our electric vehicle manufacturing site in Chatham County, North Carolina.
- Planned annual production capacity of 150,000 in Phase I.
Showroom Openings
- During the quarter, VinFast added 10 showrooms in strategically
central locations across Vietnam,
North America and Europe.
GSM Launch
- Earlier this year, GSM, a Vietnamese EV-only taxi operator and
an affiliate of VinFast, officially launched in Hanoi and Ho Chi
Minh City.
- GSM has since entered into vehicle sale agreements with VinFast
for up to 200,000 e-scooters and 30,000 EVs, of which approximately
7,100 EVs have been delivered through June
30, 2023.
Management Commentary
Madam Thuy Le, Global Chief
Executive Officer of VinFast, said: "It has been a remarkable
journey since we started our company back in 2017. I could not be
more proud of what we have accomplished in our short history. We
are excited for the tremendous global opportunity in the EV space
and believe we are well positioned to deliver on our strategic
goals and achieve our mission of creating a greener future for
everyone."
Mr. David Mansfield, Chief
Financial Officer, added, "We are pleased to report a strong second
quarter marked by high growth and progress towards profitability.
Our EV deliveries saw a 436% year-over-year increase, driving
revenues to VND7,952,531 million. In
addition, growing delivery volume and operating efficiency led to
an improvement in gross margin to negative 34% as we continue to
work on cost control initiatives. The continued support from our
Chairman and Vingroup has positioned us well to further invest in
refinements across our products as well as market expansions to
deliver value for both our global customers and shareholders."
Financial Results for the Second Quarter of
2023
Revenues
- Total revenues were VND7,952,531
million (US$334.1 million),
representing an increase of 131.2% from the second quarter of 2022
and an increase of 303.3% from the first quarter of 2023.
- Vehicle sales were VND7,487,874
million (US$314.6 million),
representing an increase of 147.0% from the second quarter of 2022
and an increase of 387.3% from the first quarter of 2023. The
increase in vehicle sales over the second quarter of 2022 and the
first quarter of 2023 was mainly due to a significant increase in
EV sales volume in Vietnam in the
second quarter of 2023, including the VF e34, VF 8, VF 5 and VF 9.
This increase over the second quarter of 2022 was partially offset
by our phasing out of 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 second quarter
of 2023, and a decrease in sales of e-scooters, which was
attributable to a decline in the sales volume of our older
e-scooter models, including the Feliz, Klara-A2, Tempest, and
Ludo.
Cost of Sales and Gross Margin
- Cost of sales was VND10,667,153
million (US$448.2 million),
representing an increase of 78.9% from the second quarter of 2022
and an increase of 84.5% from the first quarter of 2023. The
increase over the second quarter of 2022 and the first quarter of
2023 was primarily attributable to increases in cost of vehicles
sold as the Company delivered more EVs to customers in the second
quarter of 2023 and charges to write-down the carrying value of our
inventories that exceeded its estimated net realizable value
attributable to an increase in inventories reserved for EV
production and certain promotion programs for VinFast's customers.
This increase was partially offset by a decrease in the cost of
e-scooters sold in line with a decrease in e-scooter sales, 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 VND2,714,622
million (US$114.1 million),
representing an increase of 7.5% from the second quarter of 2022
and a decrease of 28.7% from the first quarter of 2023.
- Gross margin was negative 34.1%, as compared with to
negative 73.4% in the second quarter of 2022 and negative 193.2% in
the first quarter of 2023, due to a strong increase in sales volume
in the second quarter of 2023 and the lower base in the second
quarter of 2022 and first quarter of 2023. In addition, there were
significant charges to write down the carrying value of inventories
in the first quarter of 2023 due to the increase in the balance of
inventories to reserve for our EV production and promotion programs
carried out for VinFast's customers.
Operating Expenses
- Research and development (R&D) costs were
VND3,613,061 million (US$151.8 million), representing a decrease of
47.4% from the second quarter of 2022 and a decrease of 27.8% from
the first quarter of 2023. The decrease over the second quarter of
2022 and the first 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 relating
to our R&D activities for EVs given certain EV models were in
start of production from 2022 to the beginning of 2023.
- Selling and distribution expenses were VND1,291,284.0 million (US$54.3 million), representing an increase of
33.1% from the second quarter of 2022 and an increase of 1.1% from
the first quarter of 2023. The increase over the second quarter of
2022 and the first quarter of 2023 was primarily attributable to an
increase in labor costs and rental costs, which are primarily
attributable to our efforts to scale our sales operations in the
North America and Europe, including opening new showrooms.
- Administrative expenses were VND1,457,018 million (US$61.2 million) representing an increase of
148.3% from the second quarter of 2022 and an increase of 32.0%
from the first quarter of 2023. The increase over the second
quarter of 2022 and the first quarter of 2023 was primarily due to
an increase in labor costs and impairment charges in relation to
our battery leasing activities under the automotive segments where
the carrying value of certain long-lived assets may not be
recoverable from impairment testing, as well as an increase in
depreciation and amortization expenses and other costs.
Loss from Operations
- Loss from operations was VND9,230,423 million (US$387.8 million), representing a decrease of
20.0% from the second quarter of 2022 and a decrease of 17.2% from
the first quarter of 2023.
Net Loss and Earnings Per Share
- Net loss was VND12,535,202
million (US$526.7 million),
representing a decrease of 8.2% from the second quarter of 2022 and
an increase of 11.2% from the first quarter of 2023.
- Net loss attributable to controlling interest was
VND12,513,485 million (US$525.8 million), representing a decrease of
8.3% from the second quarter of 2022 and a decrease of 11.2% from
the first quarter of 2023.
- Basic and diluted net loss per ordinary share/ADS were
both VND5,431 (US$0.23), compared with VND5,933 (US$ 0.25)
in the second quarter of 2022 and VND5,841 (US$ 0.25)
in the first quarter of 2023.
Balance Sheet
- Cash and cash equivalents were VND1,600,653 million (US$67.3 million), as of June 30, 2023.
Business Outlook
The Company expects:
- Deliveries of vehicles to be between 40,000 and 50,000 vehicles
in FY2023.
- Capex for 2023-24 to maintain at 1H2023 incurred level.
- On track to commence delivery of the VF 9 in North America and the VF 6 in Vietnam by end of this year. VF 7 and VF 3
expected to commence deliveries in 2024.
The Company believes that it has sufficient runway to grow in
the coming years while continuing 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 inaugural earnings
conference call at 8:00 AM U.S.
Eastern Time on September 21,
2023.
Live Webcast: https://edge.media-server.com/mmc/p/p26bwgdm
Q&A Participation:
https://register.vevent.com/register/BIddbc93f688224008aec1b49339eb1f6c
VinFast Auto
Ltd.
|
Unaudited Interim
Condensed Consolidated Balance Sheets
|
|
|
|
As of December
31,
2022
|
As of June 30,
2023
|
As of June 30,
2023
|
|
|
VND
million
|
VND
million
|
USD
|
|
|
|
(Unaudited)
|
(Unaudited)
|
ASSETS
|
|
|
|
|
|
|
|
|
|
CURRENT
ASSETS
|
|
|
|
|
Cash and cash
equivalents
|
|
4,271,442
|
1,600,653
|
67,254,328
|
Trade
receivables
|
|
652,922
|
355,683
|
14,944,664
|
Advances to
suppliers
|
|
8,968,752
|
5,334,949
|
224,157,521
|
Inventories,
net
|
|
21,607,277
|
24,022,069
|
1,009,330,630
|
Short-term prepayments
and other receivables
|
|
6,457,169
|
6,678,594
|
280,613,193
|
Short-term derivative
assets
|
|
532,718
|
440,425
|
18,505,252
|
Current net investment
in sales-type lease
|
|
5,448
|
21,117
|
887,269
|
Short-term
investments
|
|
3,902
|
3,989
|
167,605
|
Short-term amounts due
from related parties
|
|
1,978,097
|
391,784
|
16,461,513
|
Assets classified as
held for sale
|
|
360,893
|
353,049
|
14,833,992
|
Total current
assets
|
|
44,838,620
|
39,202,312
|
1,647,155,966
|
|
|
|
|
|
NON-CURRENT
ASSETS
|
|
|
|
|
Property, plant and
equipment, net
|
|
57,188,667
|
63,322,217
|
2,660,597,353
|
Intangible assets,
net
|
|
1,461,071
|
1,515,011
|
63,655,924
|
Goodwill
|
|
272,203
|
272,203
|
11,437,101
|
Operating lease
right-of-use assets
|
|
4,558,983
|
6,905,579
|
290,150,378
|
Long-term derivative
assets
|
|
696,332
|
309,614
|
13,008,992
|
Long-term advances to
suppliers
|
|
29,082
|
-
|
-
|
Long-term
prepayments
|
|
7,611
|
37,920
|
1,593,277
|
Non-current net
investment in sales-type lease
|
|
82,062
|
225,277
|
9,465,420
|
Long-term amounts due
from related parties
|
|
44,533
|
47,445
|
1,993,487
|
Other non-current
assets
|
|
4,426,135
|
4,990,736
|
209,694,790
|
Total non-current
assets
|
|
68,766,679
|
77,626,002
|
3,261,596,723
|
|
|
|
|
|
TOTAL
ASSETS
|
|
113,605,299
|
116,828,314
|
4,908,752,689
|
VinFast Auto
Ltd.
|
Unaudited Interim
Condensed Consolidated Balance Sheets (continued)
|
|
|
|
As of December
31,
2022
|
As of June 30,
2023
|
As of June 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
|
15,170,731
|
637,425,672
|
Trade
payables
|
|
16,636,820
|
15,953,666
|
670,322,101
|
Deposits and down
payment from customers
|
|
1,572,537
|
487,920
|
20,500,840
|
Short-term deferred
revenue
|
|
107,448
|
127,053
|
5,338,361
|
Short-term
accruals
|
|
11,056,666
|
12,307,182
|
517,108,487
|
Other current
liabilities
|
|
4,177,978
|
4,134,982
|
173,738,739
|
Current operating lease
liabilities
|
|
768,883
|
1,296,743
|
54,485,000
|
Amounts due to related
parties
|
|
17,325,317
|
42,208,018
|
1,773,446,134
|
Total current
liabilities
|
|
66,225,202
|
91,686,295
|
3,852,365,336
|
|
|
|
|
|
NON-CURRENT
LIABILITIES
|
|
|
|
|
Long-term
interest-bearing loans and borrowings
|
|
41,624,960
|
40,730,992
|
1,711,386,218
|
Long-term financial
liability
|
|
15,180,723
|
16,083,583
|
675,780,798
|
Other non-current
liabilities
|
|
606,429
|
6,432,066
|
270,254,874
|
Non-current operating
lease liabilities
|
|
3,256,351
|
5,091,287
|
213,919,622
|
Long-term deferred
revenue
|
|
499,395
|
721,011
|
30,294,580
|
Deferred tax
liabilities
|
|
947,981
|
920,955
|
38,695,588
|
Long-term
accruals
|
|
16,007
|
24,188
|
1,016,303
|
Amounts due to related
parties
|
|
21,918,710
|
18,461,814
|
775,706,471
|
Total non-current
liabilities
|
|
84,050,556
|
88,465,896
|
3,717,054,454
|
|
|
|
|
|
DEFICIT
|
|
|
|
|
Ordinary shares –
VinFast Auto (2,299,999,998 shares issued and
outstanding as of December 31, 2022 and June 30, 2023)
|
|
871,021
|
871,021
|
36,597,521
|
Accumulated
losses
|
|
(127,188,455)
|
(153,785,023)
|
(6,461,555,588)
|
Additional paid-in
capital
|
|
12,311,667
|
12,311,667
|
517,296,933
|
Other comprehensive
loss
|
|
(104,065)
|
(101,456)
|
(4,262,857)
|
Deficit attributable
to equity holders of the parent
|
|
(114,109,832)
|
(140,703,791)
|
(5,911,923,992)
|
Non-controlling
interests
|
|
77,439,373
|
77,379,914
|
3,251,256,891
|
Total
deficit
|
|
(36,670,459)
|
(63,323,877)
|
(2,660,667,101)
|
|
|
|
|
|
TOTAL DEFICIT AND
LIABILITIES
|
|
113,605,299
|
116,828,314
|
4,908,752,689
|
VinFast Auto
Ltd.
|
Unaudited
Interim Condensed Consolidated Statements of
Operations
|
|
|
For the three months
ended June 30,
|
For the six months
ended June 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
|
3,031,170
|
7,487,874
|
314,616,555
|
6,080,498
|
9,024,493
|
379,180,378
|
Sales of
merchandise
|
-
|
-
|
-
|
46,414
|
38,269
|
1,607,941
|
Sales of spare parts
and components
|
328,841
|
180,793
|
7,596,345
|
1,035,409
|
372,338
|
15,644,454
|
Rendering of
services
|
59,431
|
98,266
|
4,128,824
|
109,059
|
172,987
|
7,268,361
|
Rental
income
|
|
|
|
|
|
|
Revenue from leasing
activities
|
19,860
|
185,598
|
7,798,235
|
46,318
|
316,070
|
13,280,253
|
Revenues
(*)
|
3,439,302
|
7,952,531
|
334,139,958
|
7,317,698
|
9,924,157
|
416,981,387
|
Cost of vehicles
sold
|
(5,638,988)
|
(10,199,944)
|
(428,569,076)
|
(11,329,856)
|
(15,439,163)
|
(648,704,328)
|
Cost of merchandise
sold
|
-
|
-
|
-
|
(46,245)
|
(38,533)
|
(1,619,034)
|
Cost of spare parts and
components sold
|
(216,277)
|
(49,953)
|
(2,098,866)
|
(896,153)
|
(230,826)
|
(9,698,571)
|
Cost of rendering
services
|
(74,858)
|
(215,130)
|
(9,039,076)
|
(133,703)
|
(388,596)
|
(16,327,563)
|
Cost of leasing
activities
|
(33,716)
|
(202,126)
|
(8,492,689)
|
(44,412)
|
(350,431)
|
(14,723,991)
|
Cost of
sales
|
(5,963,839)
|
(10,667,153)
|
(448,199,706)
|
(12,450,369)
|
(16,447,549)
|
(691,073,487)
|
Gross
loss
|
(2,524,537)
|
(2,714,622)
|
(114,059,748)
|
(5,132,671)
|
(6,523,392)
|
(274,092,101)
|
Operating
expenses
|
|
|
|
|
|
|
Research and
development costs
|
(6,871,280)
|
(3,613,061)
|
(151,809,286)
|
(10,447,838)
|
(8,620,764)
|
(362,216,975)
|
Selling and
distribution costs
|
(969,914)
|
(1,291,284)
|
(54,255,630)
|
(2,291,600)
|
(2,569,141)
|
(107,947,101)
|
Administrative
expenses
|
(586,689)
|
(1,457,018)
|
(61,219,244)
|
(1,123,315)
|
(2,560,861)
|
(107,599,202)
|
Net other operating
expenses
|
(588,003)
|
(154,438)
|
(6,488,992)
|
(615,488)
|
(98,538)
|
(4,140,252)
|
Operating
loss
|
(11,540,423)
|
(9,230,423)
|
(387,832,899)
|
(19,610,912)
|
(20,372,696)
|
(855,995,630)
|
Finance
income
|
36,015
|
26,050
|
1,094,538
|
79,618
|
41,263
|
1,733,739
|
Finance
costs
|
(1,880,423)
|
(2,749,685)
|
(115,532,983)
|
(3,426,910)
|
(5,072,547)
|
(213,132,227)
|
Net (loss)/gain on
financial instruments at
fair value through profit or loss
|
(273,370)
|
(607,610)
|
(25,529,832)
|
660,286
|
(1,279,073)
|
(53,742,563)
|
Loss before income
tax expense
|
(13,658,201)
|
(12,561,668)
|
(527,801,176)
|
(22,297,918)
|
(26,683,053)
|
(1,121,136,681)
|
Tax
income/(expense)
|
6,383
|
26,466
|
1,112,017
|
(1,014,237)
|
27,026
|
1,135,546
|
Net loss for the
period
|
(13,651,818)
|
(12,535,202)
|
(526,689,160)
|
(23,312,155)
|
(26,656,027)
|
(1,120,001,134)
|
Net loss attributable
to non-controlling interests
|
(10,932)
|
(21,717)
|
(912,479)
|
(22,737)
|
(49,338)
|
(2,073,025)
|
Net loss
attributable to controlling interest
|
(13,640,886)
|
(12,513,485)
|
(525,776,681)
|
(23,289,418)
|
(26,606,689)
|
(1,117,928,109)
|
|
(*) Including sales
to related parties in the three months ended June 30, 2022 and 2023
and six months ended June 30, 2022 and 2023 of VND335,107 million;
VND5,584,112 million (USD234.6 million); VND1,169,681 million and
VND5,833,858 million (USD245.1 million),
respectively.
|
VinFast Auto
Ltd.
|
Unaudited
Interim Condensed Consolidated Statements of Comprehensive
Loss
|
|
|
For the three months
ended June 30,
|
For the six months
ended June 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
|
(13,651,818)
|
(12,535,202)
|
(526,689,160)
|
(23,312,155)
|
(26,656,027)
|
(1,120,001,134)
|
|
|
|
|
|
|
|
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
|
(38,509)
|
21,433
|
900,546
|
(8,709)
|
2,609
|
109,622
|
|
|
|
|
|
|
|
Net other
comprehensive (loss)/income that will be
reclassified to profit or loss in subsequent periods
|
(38,509)
|
21,433
|
900,546
|
(8,709)
|
2,609
|
109,622
|
|
|
|
|
|
|
|
Total comprehensive
loss for the period, net of tax
|
(13,690,327)
|
(12,513,769)
|
(525,788,613)
|
(23,320,864)
|
(26,653,418)
|
(1,119,891,513)
|
Net loss attributable
to non-controlling interests
|
(10,932)
|
(21,717)
|
(912,479)
|
(22,737)
|
(49,338)
|
(2,073,025)
|
Comprehensive loss
attributable to controlling interest
|
(13,679,395)
|
(12,492,052)
|
(524,876,134)
|
(23,298,127)
|
(26,604,080)
|
(1,117,818,487)
|
|
|
|
|
|
|
|
Net loss per share
attributable to ordinary shareholders
|
VND
|
VND
|
USD
|
VND
|
VND
|
USD
|
Basic and
diluted
|
(5,933)
|
(5,431)
|
(0.23)
|
(10,130)
|
(11,567)
|
(0.49)
|
|
|
|
|
|
|
Unit:
Shares
|
Weighted average
number of shares used in loss per
share computation
|
|
|
|
|
|
|
Basic and
diluted
|
2,298,963,211
|
2,299,999,998
|
2,299,999,998
|
2,298,963,211
|
2,299,999,998
|
2,299,999,998
|
VinFast Auto
Ltd.
|
Unaudited Interim
Condensed Consolidated Statements of Cash Flows
|
|
|
For the six months
ended June 30,
|
|
2022
|
2023
|
2023
|
|
VND
million
|
VND
million
|
USD
|
|
(Unaudited)
|
(Unaudited)
|
(Unaudited)
|
|
|
|
|
OPERATING
ACTIVITIES
|
|
|
|
Net loss for the
period
|
(23,312,155)
|
(26,656,027)
|
(1,120,001,134)
|
Adjustments to
reconcile net loss to net cash flows:
|
|
|
|
Depreciation of
property, plant and equipment
|
1,806,904
|
2,511,264
|
105,515,294
|
Amortization of
intangible assets
|
1,479,172
|
113,261
|
4,758,866
|
Impairment of assets
and changes in fair value of held for sale assets
|
39,259
|
862,561
|
36,242,059
|
Changes in operating
lease right-of-use assets
|
187,207
|
570,103
|
23,953,908
|
Provision related to
compensation expenses, assurance-type warranties and net realizable
value of inventories
|
2,779,274
|
4,636,460
|
194,809,244
|
Deferred tax
expenses/(income)
|
1,014,237
|
(27,026)
|
(1,135,546)
|
Unrealized foreign
exchange losses
|
592,844
|
167,064
|
7,019,496
|
Investment
losses
|
18,962
|
-
|
-
|
Net (gain)/losses on
financial instruments at fair value through profit or
loss
|
(660,286)
|
1,279,073
|
53,742,563
|
Change in amortized
costs of financial instruments measured at amortized cost other
than nominal interest
|
917,271
|
1,582,016
|
66,471,261
|
Change in working
capital:
|
|
|
|
Trade receivables and
advance to suppliers
|
1,086,977
|
4,053,598
|
170,319,244
|
Inventories
|
(3,956,198)
|
(6,418,463)
|
(269,683,319)
|
Trade payables,
deferred revenue and other payables
|
2,654,005
|
(3,640,389)
|
(152,957,521)
|
Operating lease
liabilities
|
(160,284)
|
(565,412)
|
(23,756,807)
|
Prepayments, other
receivables and other assets
|
(67,887)
|
345,613
|
14,521,555
|
Net cash flows used
in operating activities
|
(15,580,698)
|
(21,186,304)
|
(890,180,840)
|
VinFast Auto
Ltd.
|
Unaudited Interim
Condensed Consolidated Statements of Cash Flows
(continued)
|
|
|
For the six months
ended June 30,
|
|
2022
|
2023
|
2023
|
|
VND
million
|
VND
million
|
USD
|
|
(Unaudited)
|
(Unaudited)
|
(Unaudited)
|
INVESTING
ACTIVITIES
|
|
|
|
Purchase of property,
plant and equipment, and
intangible assets
|
(5,530,036)
|
(15,727,008)
|
(660,798,655)
|
Repayment under a
business investment and cooperation contract
|
(968,773)
|
-
|
-
|
Proceeds from disposal
of property, plant and equipment
|
170,017
|
922,675
|
38,767,857
|
Disbursement of bank
deposit
|
(5,654)
|
-
|
-
|
Collection of
loans
|
1,017,000
|
545,400
|
22,915,966
|
Proceeds from disposal
of equity investment (net of cash held
by entity being disposed)
|
(2,240)
|
-
|
-
|
|
|
|
|
Net cash flows used
in investing activities
|
(5,319,686)
|
(14,258,933)
|
(599,114,832)
|
|
|
|
|
|
|
|
|
FINANCING
ACTIVITIES
|
|
|
|
Capital contribution
from owners
|
6,000,000
|
-
|
-
|
Deemed contribution
from owners
|
646,655
|
-
|
-
|
Proceeds from
borrowings
|
31,634,689
|
42,914,466
|
1,803,128,824
|
Cash received under a
business cooperation contract
|
-
|
5,875,000
|
246,848,739
|
Repayment of
borrowings
|
(18,482,853)
|
(15,372,426)
|
(645,900,252)
|
|
|
|
|
|
|
|
|
Net cash flows from
financing activities
|
19,798,491
|
33,417,040
|
1,404,077,311
|
|
|
|
|
|
|
|
|
Net decrease in cash
and cash equivalents and restricted cash
|
(1,101,893)
|
(2,028,197)
|
(85,218,361)
|
Cash, cash equivalents
and restricted cash at beginning of the period
|
3,024,916
|
4,271,442
|
179,472,353
|
Net foreign exchange
difference on cash, cash
equivalents and
restricted cash
|
3,473
|
24,422
|
1,026,134
|
|
|
|
|
|
|
|
|
Cash, cash
equivalents and restricted cash at end of the period
|
1,926,496
|
2,267,667
|
95,280,126
|
|
|
|
|
|
|
|
|
Supplement
disclosures of non-cash activities
|
|
|
|
Non-cash property,
plant and equipment additions
|
2,591,952
|
5,512,701
|
231,626,092
|
Establishment of
right-of-use assets and lease liabilities at
commencement dates
|
1,232,320
|
2,968,837
|
124,741,050
|
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 VND23,800 to US$1.00, representing the central exchange rate
quoted by the State Bank of Vietnam Operations Centre as of
June 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