VinFast Auto .(US:VFS)2025-09-04 13:02Financial Data and Key Metrics Changes - Total revenue for Q2 2025 was reported at USD 663 million, representing a 92% year-over-year increase and a 2% quarter-over-quarter gain, driven by increasing EV sales volume in Vietnam [28] - Cost of goods sold for the quarter was USD 935 million, an increase of 66% year-over-year and 6% quarter-over-quarter, reflecting the continued ramp-up in deliveries [29] - Gross margin was negative 41% in Q2 2025, an improvement from negative 63% in Q2 2024, attributed to increased sales and improved costs [29] - Net loss for the quarter was USD 812 million, with a net loss margin of negative 122% compared to negative 109% in Q1 2025 [32] Business Line Data and Key Metrics Changes - In Q2 2025, the company delivered 35,837 EV units, a 172% increase year-over-year, with the VF3 and VF5 models contributing 61% of total deliveries [10] - E-scooter and electric bike deliveries reached 69,580 units in Q2, marking a 55% rise quarter-over-quarter and a 432% increase year-over-year [12] - The VF6 model ranked first in deliveries, contributing 12% of total deliveries, while B2C deliveries accounted for over 70% of total deliveries for four consecutive quarters [11] Market Data and Key Metrics Changes - Vietnam's auto market grew rapidly in 2025, with deliveries rising 1.6 times year-over-year to 254,794 units, driven by surging EV demand [13] - VinFast maintained its number one position in Vietnam, with 3.4x volume growth and 67,569 units more than the combined delivery of the next two players [13] - In the Philippines, VinFast captured an estimated 25% market share in the battery electric vehicle segment in the first half of 2025 [21] Company Strategy and Development Direction - The company remains focused on international expansion, with a strategy anchored around products, markets, and manufacturing, including the inauguration of two new factories in Vietnam and India [7] - The long-term vision is to be a global leader in electric mobility, supported by investments in R&D and customer incentives to drive adoption [9] - The company is expanding its green mobility ecosystem internationally, with plans to deepen its presence in key Asian markets [15] Management's Comments on Operating Environment and Future Outlook - Management noted macroeconomic headwinds and evolving regulations have introduced uncertainties in some markets, but strong momentum in business continues [8] - The company is on track to achieve its 2025 delivery target, aiming to at least double deliveries from 2024 [6] - Management expects significant ramp-up in the second half of the year, supported by robust demand in Vietnam and new model launches [40] Other Important Information - The company announced a strategic spin-off of completed R&D assets into a new entity, Novatec, for USD 1.6 billion, expected to close in Q3 [25] - As of June 30, 2025, total liquidity stood at USD 4.2 billion, reflecting cash and cash equivalents combined with expected cash proceeds from the R&D assets spin-off [34] Q&A Session Summary Question: Can you elaborate on the cost discipline efforts? - Management noted a reduction in costs over previous quarters, with expectations for greater potential in upcoming vehicle versions benefiting from optimized design and in-house battery production [36] Question: Where will the second half growth primarily come from? - Growth is expected from continued demand in Vietnam, stronger dealer networks internationally, and new model launches [39] Question: What is the impact of next-generation platforms on margin improvement? - The next-generation platforms are expected to drive meaningful cost savings and improve customer experience, although specific margin impacts cannot yet be disclosed [46] Question: What drove the higher cash balance this quarter? - The high cash balance reflects financing inflows of about USD 1.2 billion, offsetting operating outflows, with expectations for operating outflows of USD 400 million to USD 600 million per quarter in the near term [84]