Summary
- Shares fall around 1.6% in pre-market trading
- Company has said it hopes to become profitable next year
- Focus is on growing international markets
(Reuters) – Vietnamese electric-vehicle maker VinFast reported an 85.5% jump in second-quarter revenue on Monday, as a one-off $1.18 billion gain from transferring manufacturing assets cut its net loss but its operating loss almost tripled.
The company made public a restructuring plan in May, including the transfer of manufacturing assets worth about $530 million to a purchaser group that would assume roughly $6.9 billion of debt.
During the second quarter, VinFast recorded a gain from discontinued operations of about $1.18 billion, largely related to the asset transfer. Completed in September, it reduced the company’s net loss by about 93% from a year earlier to around $54.65 million.
The operating loss, however, was $1.16 billion in the second quarter, rising 198% from the same time a year earlier.
VinFast shares, listed on the Nasdaq, were down about 1.6% in pre-market trading.
The company was founded in 2017 and became fully focused on EVs in 2022. It said in April it aimed to achieve positive EBITDA by the end of next year.
INTERNATIONAL AMBITIONS
Pham Nhat Quan Anh, CEO and chair of VinFast, said in a statement the priorities were to scale up production in international markets including the Philippines, Indonesia and India, while continuing “strategic expansion” across the United States, Europe, and the Middle East.
Quarterly revenue rose to 30.3 trillion dong ($1.17 billion) from a year earlier, helped by stronger sales in Vietnam and growing contributions from high-growth overseas markets including India, Indonesia and the Philippines, the company said.
It added VinFast delivered 70,085 cars in the second quarter, a quarterly increase of 20%, of which 6% went to its related parties.
As it seeks to capture market share across the world, VinFast has expanded its product lineup.
Last month, it launched the VF Wild pickup, a range-extended electric vehicle, in Vietnam, and has plans to introduce the model to overseas markets next year.
($1 = 25,892.0000 dong)
Editing by Barbara Lewis
