VinFast Auto .(US:VFS)2025-11-21 11:02Financial Performance - Quarterly revenues reached VND 18,100.2 billion (US$718.6 million), representing a 46.8% increase year-over-year and a 9.0% increase quarter-over-quarter[20]. - Vehicle sales amounted to VND 16,695.2 billion (US$662.9 million), reflecting a 48.4% increase year-over-year and an 11.4% increase quarter-over-quarter[8]. - Total revenues for the nine months ended September 30, 2025, were VND 51,015,903 million, up 85.0% from VND 27,522,639 million in the same period of 2024[33]. - Vehicle sales revenue for Q3 2025 reached VND 16,695,205 million, a 48.5% increase from Q3 2024's VND 11,251,190 million[33]. Delivery and Sales Growth - EV deliveries totaled 38,195 units in Q3 2025, a 74% increase year-over-year and a 7% increase quarter-over-quarter, with cumulative deliveries of 110,362 EVs in the first nine months of 2025, up 149% year-over-year[7]. - E-scooter and e-bike deliveries reached 120,052 units in Q3 2025, marking a 535% increase year-over-year and a 73% increase quarter-over-quarter[7]. - VinFast aims to double its global EV deliveries in 2025, maintaining strong growth momentum in the e-scooter business due to favorable government policies in Vietnam[30]. Losses and Financial Challenges - The gross loss was VND 10,167.6 billion (US$403.7 million), representing a 243.7% increase year-over-year and a 49.0% increase quarter-over-quarter, with a gross margin of negative 56.2%[25]. - Net loss for Q3 2025 was VND 24,011.1 billion (US$953.3 million), an increase of 81.2% year-over-year and 18.0% quarter-over-quarter[25]. - Gross loss for Q3 2025 was VND 10,167,565 million, compared to a gross loss of VND 2,957,886 million in Q3 2024, indicating a significant increase in losses[33]. - Net loss for Q3 2025 was VND 24,011,091 million, a 81.2% increase from VND 13,251,944 million in Q3 2024[34]. - As of September 30, 2025, VinFast reported accumulated losses of VND 329,732,860 million (approximately USD 13,091,390,797)[32]. Research and Development - Research and development costs were VND 2,679.1 billion (US$106.4 million), up 28.1% year-over-year and 14.7% quarter-over-quarter, driven by costs for new vehicle platforms[25]. - Research and development costs for Q3 2025 were VND 2,679,109 million, up from VND 2,091,725 million in Q3 2024, representing a 28.0% increase[33]. Assets and Liabilities - As of September 30, 2025, VinFast's total current assets amounted to VND 87,809,930 million (approximately USD 3,486,319,530), an increase from VND 64,781,629 million as of December 31, 2024[31]. - The company's total assets reached VND 183,183,797 million (approximately USD 7,272,950,212) as of September 30, 2025, up from VND 155,966,496 million as of December 31, 2024[32]. - Current liabilities totaled VND 174,284,917 million (approximately USD 6,919,637,789) as of September 30, 2025, compared to VND 171,508,908 million as of December 31, 2024[32]. Funding and Financial Strategy - The company secured additional funding commitments, including VND 35,000 billion (US$1.4 billion) from Vingroup to support growth initiatives[19]. - VinFast is exploring various funding sources, including loans, grants, and capital markets, to support its growth strategy[29]. - The company plans to capture available tax incentives and subsidies to reduce investment and operational costs[29]. Expansion and Market Strategy - As of September 30, 2025, VinFast operated 381 showrooms globally, expanding its reach in various markets[7]. - VinFast is focused on expanding its manufacturing and distribution capacity through existing infrastructure and new projects to support future operations[28]. - VinFast is continuously monitoring its global expansion strategy and can adjust its plans for distribution, manufacturing, and marketing as needed[28]. - VinFast is evaluating a full spectrum of vehicle types for future product development while focusing on the mini- through E-segments of the electric SUV market[28]. Cash Flow and Financial Instruments - The company reported a net cash flow used in operating activities of VND 37,871,624 million for the nine months ended September 30, 2025, compared to VND 31,481,587 million for the same period in 2024[35]. - For the nine months ended September 30, 2025, VinFast reported a net cash flow used in investing activities of VND (19,245,393) million, equivalent to approximately USD (764,100,250)[36]. - The company experienced a net cash flow from financing activities of VND 62,382,327 million, which translates to approximately USD 2,476,766,864[36]. - As of September 30, 2025, cash, cash equivalents, and restricted cash at the end of the period totaled VND 12,037,477 million, or approximately USD 477,924,207[36]. - The company experienced a net loss on financial instruments at fair value through profit or loss of VND 503,390 million in Q3 2025, compared to VND 251,088 million in Q3 2024, indicating increased financial losses[33]. Risks and Forward-Looking Statements - VinFast's forward-looking statements indicate potential risks associated with being a growth-stage company in the EV industry, including competition and supply chain challenges[38].