TMT Motors Corporation (TMT Motors, code TMT) has just announced its financial report for the second quarter of 2024 with revenue reaching VND 804.5 billion, the highest in the past 4 quarters but slightly down compared to the same period last year.

Due to the sharp increase in cost of goods sold, higher than revenue, at over VND853 billion, the company's gross profit from sales and service provision this quarter fell to a negative VND48.7 billion.

After deducting all expenses, the company's after-tax profit in the second quarter was negative VND95.3 billion, down about VND97.4 billion compared to the same period in 2023. This is the highest loss in TMT Motors' operating history.

In the first 6 months of the year, TMT Motors achieved net revenue of VND1,322 billion and a loss of nearly VND100 billion, while in the same period last year the company recorded a profit of VND1.2 billion.

TMT Motors explained that 2024 is a very difficult year for the economy in general and automobile manufacturers in particular. The economic recession, frozen real estate, sharp decline in public investment, increased risk of inflation, and tightening of people's spending... have caused a sharp decline in automobile consumption, despite automobile manufacturers and distributors continuously reducing prices to clear inventory.

In the second quarter of 2024, to ensure liquidity and reduce interest expenses, the company had to deeply discount to clear inventory, resulting in a negative gross profit of VND 48.7 billion. In addition, the company also determined to restructure new product lines of EURO 5 and 6 engines to focus on new products that are suitable for market trends and needs.

TMT Motors' predecessor was the Transportation Equipment and Materials Trading and Manufacturing Company. This used to be a "giant" in the automobile industry. The company's main activities are manufacturing, assembling and trading automobiles and spare parts of all kinds. TMT Motors has famous truck products such as Cuu Long, Tata, Howo, Sinotruk tractor trucks,... with large payloads.

TMT Motors is currently the distributor of the Chinese Wuling Mini EV electric car in Vietnam. More than 10 days ago, TMT Motors announced price adjustments for the 120km and 170km Wuling Mini EV versions. Specifically, the price of the LV2-120 is 197 million VND and the LV2-170 is 231 million VND.

This small car will be sold in Vietnam from June 2023. In total, there are 4 versions for customers to choose from, with prices ranging from 239-279 million VND. However, sales of this type of car by TMT Motors did not meet expectations.

In 2023, TMT Motors sold only 591 Wuling Mini EV electric vehicles in the Vietnamese market, equal to 11% of the plan of 5,525 units. Therefore, this year, the company adjusted its sales target down to 1,016 vehicles.

At the end of the trading session on August 16, TMT shares reached 7,530 VND/share.

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