VinFast Auto .(US:VFS)2025-04-24 18:31Financial Data and Key Metrics Changes - In Q4 2024, revenue was $678 million, up 34% quarter-over-quarter and 70% year-over-year, while full-year revenue reached $1.8 billion, an increase of 58% year-over-year [39] - Cost of goods sold in Q4 2024 was $1.2 billion, up 93% quarter-over-quarter, with full-year cost of goods sold at $2.8 billion, a 67% increase compared to 2023 [39] - Q4 2024 gross margin was minus 79%, impacted by an accounting charge related to the free charging program, compared to minus 24% in Q3 [40] - Full-year gross margin loss improved to minus 32% from minus 40% in 2023, excluding one-off charges [42] - Q4 2024 EBITDA loss was minus $928 million, with a full-year net loss of minus $3.2 billion [46][47] Business Line Data and Key Metrics Changes - Total deliveries for Q4 2024 reached 53,139 electric vehicles, a 143% increase quarter-over-quarter and 342% year-over-year [15] - B2C sales grew by 140% quarter-over-quarter and over 20x year-over-year [15] - The proportion of EV deliveries to non-related party customers increased to 81% from 78% in Q3 [16] Market Data and Key Metrics Changes - Non-Vietnam sales grew 10x year-over-year, contributing from 3% to 10% of total deliveries [11] - As of March 31, 2025, VinFast had 322 showrooms, a 160% increase from 123 showrooms at the end of 2023 [12] Company Strategy and Development Direction - The company aims to solidify its leadership position in Vietnam while expanding its market presence in Asia and other regions [34] - VinFast is focusing on product innovation, manufacturing capacity, and market reach as part of its three-pillar growth strategy [32][34] - The company plans to open three new CKD plants in Asia in 2025 to enhance production flexibility [38] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving the 2025 guidance despite macroeconomic challenges, expecting Q1 to be the slowest quarter [59] - The company is closely monitoring regulatory and geopolitical changes and remains agile in its operations [8][9] - Management highlighted the importance of building a green mobility ecosystem to support EV adoption [17] Other Important Information - The free charging program in Vietnam is expected to cost approximately $242 million, recognized as a revenue reduction [41] - The battery leasing program was discontinued as of March 31, 2025, due to decreased consumer reliance on it [26][110] Q&A Session Summary Question: What gives confidence in the 2025 guidance? - Management expects Q1 to be slow, with an anticipated increase in deliveries in Q2 and a strong second half due to preorders [59][61] Question: Path to positive gross margins? - Excluding one-off charges, gross loss margin improved from minus 40% in 2023 to minus 32% in 2024, with a focus on scaling and efficiency [65] Question: Accounting treatment for EV charging credit? - A one-time charge of $242 million was recognized in Q4 for the free charging program, with future recognition aligned with vehicle sales [71][72] Question: Capital spending for 2025 and 2026? - Expected cash burn in 2025 is around $2.5 billion, with approximately $1.8 billion allocated for CapEx and R&D [81] Question: Share of sales from VF 3 and VF 5 in 2025? - Expected to be less than 50% of total sales, with new models contributing significantly [88] Question: Impact of new U.S. tariffs? - Management believes the impact will be less significant compared to other OEMs, as most growth is expected from non-U.S. markets [107] Question: Rationale for discontinuing battery leasing? - Battery leasing was essential in early EV adoption but has decreased in relevance as consumer familiarity has grown [110] Question: Key priorities for 2025? - Focus on solidifying market leadership in Vietnam, enhancing manufacturing capacity, and driving product innovation [114]