VinFast Auto .(US:VFS)2025-04-24 13:02Financial Data and Key Metrics Changes - Revenue for Q4 2024 was $678 million, up 34% quarter over quarter and 70% year over year [27] - Full year revenue reached $1.8 billion, an increase of 58% year over year [27] - Cost of goods sold in Q4 2024 was $1.2 billion, a 93% increase quarter over quarter [27] - Full year cost of goods sold was $2.8 billion, up 67% compared to 2023 [27] - Q4 2024 gross margin was -79%, compared to -24% in Q3 2024 [28] - Full year gross margin loss improved to -57% in 2024 from -49% in 2023 [28] 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 [12] - B2C sales grew by 140% quarter over quarter and over 20 times year over year [12] - The proportion of EV deliveries to non-related party customers increased to 81% from 78% in Q3 2024 [12] - The company delivered 31,170 e-scooters in Q4 2024, a 65% increase quarter over quarter [12] Market Data and Key Metrics Changes - Non-Vietnam sales grew tenfold year over year, increasing their contribution from 3% to 10% of total deliveries [10] - As of March 31, 2025, VinFast had 322 showrooms globally, with 89% being dealer stores, marking a 160% growth [10] - In Southeast Asia, the company has established 22 showrooms in Indonesia and 6 in the Philippines as of March 31, 2025 [14] Company Strategy and Development Direction - The company aims to solidify its leadership position in Vietnam while expanding into new markets [85] - Plans to open three new CKD plants in Asia in 2025 to enhance production flexibility [26] - The focus is on building a vertically integrated green mobility ecosystem, combining electric vehicles, shared mobility services, and charging infrastructure [13] Management's Comments on Operating Environment and Future Outlook - Management remains confident in achieving 2025 guidance despite macroeconomic challenges, expecting Q1 to be the slowest quarter [40] - The company is focused on scaling volume through new product launches and deepening market presence in Asia [46] - Management highlighted the importance of optimizing manufacturing efficiency and strategic capital deployment to drive margin improvement [46] Other Important Information - The company has discontinued its battery leasing program, which was previously a key differentiator, due to increased consumer familiarity with EVs [83] - A free charging program has been introduced to ease the transition for customers, extending benefits until 2027 [84] - The liquidity position stood at approximately $3 billion as of March 31, 2025, including $968 million in an ELOC facility [34] Q&A Session Summary Question: What gives confidence in the 2025 guidance given macro conditions? - Management expects Q1 to be slow but anticipates an uptick in Q2 with new model deliveries, projecting that the first half will contribute approximately 25-30% of total deliveries [38][40] Question: Path to positive gross margins with lower ASPs? - Excluding one-off charges, the gross loss margin improved to -32% in 2024, and the focus will be on scaling volume and optimizing costs to drive margin improvement [45][46] Question: Clarification on accounting treatment for EV charging credits? - A one-time charge of $242 million was recognized in Q4 2024 for the free charging program, which will be realized over the life of the program [50][51] Question: Capital spending for 2025 and 2026? - Expected cash burn for 2025 is approximately $2.5 billion, with $1.8 billion allocated for CapEx on CKD facilities [58] Question: Status of the US manufacturing plant in North Carolina? - The company remains committed to the North Carolina facility, with plans to monitor macroeconomic conditions and adjust as necessary [73] Question: Progress in Indonesia and the Philippines? - Deliveries in Indonesia have begun, with plans to expand the dealership network, while the Philippines has introduced five models and aims for 50 showrooms by year-end [76][77]