VinFast Auto .-VinFast Reports Unaudited Third Quarter 2024 Financial Results

Financial Performance - VinFast delivered 21,912 vehicles in Q3 2024, a 115% year-over-year increase and a 66% increase compared to Q2 2024 [1][3] - Revenue reached US $511.6 million in Q3 2024, up 49.3% year-over-year and 42.2% compared to Q2 2024 [1][4] - Gross loss decreased by 45.6% to US$ 122.8 million in Q3 2024 compared to Q2 2024 [4] - Gross margin improved to negative 24.0% in Q3 2024 from negative 27.0% in Q3 2023 and negative 62.7% in Q2 2024 [5] - Net loss decreased by 14.8% year-over-year and 29.4% quarter-over-quarter to US $550.0 million in Q3 2024 [5] Market Performance - VinFast became the top-selling automotive brand in Vietnam for September, October, and the first ten months of 2024 [1][6][8] - The company delivered over 11,000 EVs in Vietnam in October 2024, a 21% increase from September, bringing total deliveries in Vietnam to over 51,000 EVs from January to October 2024 [7][8] - VinFast achieved record-breaking sales in North America in September 2024, driven by a growing dealer network [11] Global Expansion - VinFast had 173 EV showrooms and 160 e-scooter showrooms globally as of October 31, 2024 [10] - The company initiated deliveries of right-hand drive VF e34 and VF 5 in Indonesia, with 17 dealerships across 15 cities as of October 31, 2024 [12] - VinFast opened reservations for three models in the Philippines and had eight dealer stores in six cities as of October 31, 2024 [12] - The company launched its brand in the Middle East in October 2024, opening its first dealership in Dubai [13] Manufacturing and Production - VinFast plans to add a new CKD factory in Ha Tinh, Vietnam, targeting a maximum capacity of 300,000 EVs per year, with construction starting in December 2024 and operations expected to commence in 2025 [8][9] - The Indian plant, with an annual capacity of 50,000 EVs, is gearing up for equipment installation and is scheduled to begin operations in 2025 [13] - The Subang plant in Indonesia is also scheduled to commence operations in 2025 [12] Funding and Financial Support - VinFast's Founder and CEO, along with associated companies, intend to provide up to US$ 2.1 billion in free grants to the company and its subsidiaries through the end of 2026 [14] - Vingroup plans to provide up to US $1.5 billion in loans to VinFast's subsidiaries in Vietnam through the end of 2026 [15] - Vingroup approved the conversion of up to US$ 3.3 billion of loans to VFTP into preference shares, supporting VinFast's EV manufacturing business in Vietnam [16] Strategic Outlook - VinFast is optimistic about Q4 2024 performance and reiterates its annual delivery target of 80,000 vehicles [17] - The company remains committed to balancing revenue growth and cost optimization while expanding its global footprint [1][18]