On the stock market, TMT shares of TMT Automobile JSC recorded a ceiling price increase for 5 consecutive sessions (from December 25 to 31). From VND7,520/share (session December 25), TMT shares continuously increased in purple. Closing session December 31, TMT shares were VND9,840/share.

Therefore, HoSE requires TMT Company within 24 hours from the time the stock price increases to the ceiling for 5 consecutive sessions or more to report and disclose information related to the company that affects the stock price fluctuations.

TMT shares increased in the context of the company's heavy losses due to selling goods below cost price, high financial costs, and large inventories.

According to the consolidated financial report for the third quarter of 2024, TMT lost nearly VND 93 billion compared to a profit of more than VND 140 million in the same period last year. In the first 9 months, TMT lost nearly VND 192 billion, compared to a profit of more than VND 2.4 billion in the same period. This loss is equal to about 52% of the company's charter capital.

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Car model distributed by TMT. Photo: TMT

TMT has been facing difficulties for the past two years amid a general decline in car consumption. TMT's business also declined after the business plan for the low-cost Chinese electric car Wuling Hongguang MiniEV failed to meet expectations.

In the information disclosure document, Mr. Bui Van Huu, Chairman of the Board of Directors, said that the Board of Directors, the factory and the sales center have strictly implemented the Board of Directors' policy of reducing selling prices and cutting losses on almost all goods many years ago.

However, the business results at the end of 2024 will be greatly affected, but the company is determined to re-establish the entire restructuring, from production to consumption to serve the new production and business cycle, starting from the first quarter of 2025.

Cutting losses to resolve inventory has maintained a stable cash flow to ensure the company's production and business activities, building trust with credit institutions.

In recent times, a number of major car manufacturers with car models suitable for the Vietnamese market have signed cooperation agreements with TMT, adding new, highly competitive car models, which is a premise for TMT to grow in the first quarter of 2025. After cooperating with major Chinese corporations to bring product lines suitable for market demand, it will create momentum for TMT to accelerate in the upcoming new business cycle.

TMT leaders also said that they have approved the divestment of all capital contributions at Construction Mechanical and Design Consulting Joint Stock Company 30/4.

TMT Company has just announced its production and business plan for 2025. Accordingly, the company aims to sell 8,075 vehicles, of which 3,404 are electric vehicles. Total revenue excluding VAT is VND 4,165 billion, pre-tax profit is VND 297 billion.