VinFast Auto Ltd. (Nasdaq: VFS), a member company of Vingroup, has just announced its unaudited financial report for the first quarter, ending March 31, 2024, reaching VND 7,264 billion, an increase of 269.7% over the same period in 2023.
Ms. Le Thi Thu Thuy, Chairwoman of VinFast’s Board of Directors, shared: “VinFast recognizes that the ongoing global economic and geopolitical uncertainties are short-term challenges. With a diverse product range and a rapidly growing global sales network, superior after-sales service and a breakthrough battery leasing policy, VinFast maintains its target of delivering 100,000 electric cars and has outlined a clear roadmap from now until the end of the year.”
Ms. Nguyen Thi Lan Anh, VinFast's CFO, affirmed: "We remain steadfast in implementing continuous reforms in our business operations. Focusing on optimizing raw materials, economies of scale and tight cost management will be the key to bringing sustainable value to shareholders."
Revenue and vehicle deliveries recorded in Q1/2024 showed strong growth compared to the same period in 2023. VinFast delivered a total of 9,689 electric cars in Q1, an increase of 444% compared to the same period in 2023.
Total revenue reached VND 7,264 billion in Q1, up 269.7% over the same period in 2023. The above growth is the result of newly implemented campaigns such as developing the dealer system and customer reception of new car models.
The company recorded a gross loss of VND3,619 billion in Q1. Gross profit margin improved from minus 172.9% in Q1 2023 to minus 49.8%.
Creating a solid foundation for growth in the second half of the year
In the first quarter of the year, VinFast stuck to its growth roadmap: launching the brand in Indonesia and Thailand, establishing a presence in the Middle East, starting construction of a factory in India, and expanding its global sales network.
The domestic market continued to contribute the majority of sales in Q1. At the same time, VinFast has also begun to record encouraging growth in the US market and some new dealers have begun to record sales.
In Q1, VinFast signed distribution agreements with 10 new dealers, bringing the total number of dealer partners to 16 in 7 states in the US, including North Carolina, New York, Texas, Florida, Kansas, Connecticut, and Kentucky. The new dealers will open for sale from Q2.
In addition to its current markets, VinFast continues to establish its presence and promote sales activities in potential markets in the region. Within the framework of the Bangkok International Motor Show 2024, the Vietnamese electric vehicle company officially launched its brand in Thailand and signed a Letter of Intent to cooperate with 15 dealers to operate 22 stores in Bangkok.
Recently, in the Indonesian market, VinFast officially opened its first dealership and sold the C-segment electric SUV VF e34 with a unique battery rental policy, encouraging Indonesian consumers to switch to electric vehicles with lower initial and operating costs.
In March, VinFast also officially delivered the C-segment electric SUV VF 7 to customers in Vietnam.
The company also expanded its global reach with distribution agreements in Oman, Ghana and Micronesia.
Maintain target of delivering 100,000 electric cars in 2024
In the context of macroeconomic fluctuations leading to adverse impacts on the electric vehicle industry in general, VinFast has set clear plans and maintained the target of delivering 100,000 electric cars in 2024 with sales to be mainly recorded in the second half of the year thanks to the rapidly expanding retail network, new models targeting a larger customer base and penetrating new markets.
In terms of products, VinFast plans to bring to the Vietnamese market the much-anticipated mini-SUV VF 3, and launch the VF 9 and VF 7 in the North American market. The company will also complete its complete product range for global markets.
Regarding charging station infrastructure, in March, VinFast founder and CEO Pham Nhat Vuong announced the establishment of V-GREEN Global Charging Station Development Company to develop a global charging station network, providing charging services for VinFast vehicles. By reducing capital expenditure (Capex) for infrastructure, VinFast can focus on promoting business growth.
Vietnam.vn
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