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Form 424B3 VinFast Auto Ltd.

February 22, 2024 7:48 AM EST

 

Filed Pursuant to Rule 424(b)(3)
Registration No. 333-275133

Prospectus Supplement No. 5

(To Prospectus dated October 31, 2023) 

 

 

VinFast Auto Ltd.

 

100,800,000 Ordinary Shares

 

 

 

This prospectus supplement amends and supplements the prospectus dated October 31, 2023 (the “Prospectus”), which forms a part of our Registration Statement on Form F-1 (Registration Statement No. 333-275133). The Prospectus relates to the offer and sale, from time to time, by YA II PN, Ltd., a Cayman Islands exempt limited partnership (“Yorkville”), of up to 100,800,000 ordinary shares in the capital of VinFast Auto Ltd., a public company incorporated under the laws of Singapore (Company Registration No: 201501874G) (“we,” “us,” the “Company” or “VinFast”), no par value (“ordinary shares”), including (i) up to 100,000,000 ordinary shares that we may, at our discretion, elect to issue to Yorkville from time to time after the date of this prospectus, pursuant to the Standby Equity Subscription Agreement, dated as of October 20, 2023, entered into by and between Yorkville and the Company (the “Yorkville Subscription Agreement”) and (ii) 800,000 ordinary shares to be issued to Yorkville as consideration for its irrevocable commitment to subscribe for ordinary shares at our direction, from time to time after the date of this prospectus, upon the terms and subject to the conditions set forth in the Yorkville Subscription Agreement.

 

This prospectus supplement is being filed to update and supplement the information included in the Prospectus with the information contained herein. This prospectus supplement is not complete without, and may not be delivered or utilized except in combination with, the Prospectus, including any amendments or supplements thereto. This prospectus supplement should be read in conjunction with the Prospectus and if there is any inconsistency between the information in the Prospectus and this prospectus supplement, you should rely on the information in this prospectus supplement.

 

Our ordinary shares and warrants are listed on the Nasdaq Stock Market LLC (“Nasdaq”) under the symbols, “VFS” and “VFSWW.” On February 21, 2024, the last reported sale price of our ordinary shares and warrants as reported on Nasdaq was $5.26 per ordinary share and $0.8555 per warrant, respectively.

 

 

 

Investing in our securities involves a high degree of risk. See “Risk Factors” beginning on page 33 of the Prospectus for a discussion of information that should be considered in connection with an investment in our securities.

 

Neither the Securities and Exchange Commission nor any state securities commission has approved or disapproved of these securities or determined if the Prospectus or this prospectus supplement is truthful or complete. Any representation to the contrary is a criminal offense. 

 

The date of this prospectus supplement is February 22, 2024

 

 

 

Part I – Unaudited Condensed Consolidated Financial Statements
As of and for the three months and full year ended December 31, 2023

 

VinFast Auto Ltd.

  

Unaudited Condensed Consolidated Balance Sheets

 

   As of December 31, 2022  As of December 31, 2023  As of December 31, 2023 
   VND million  VND million  USD 
   (Audited) 

(Unaudited)

  (Unaudited) 
ASSETS          
           
CURRENT ASSETS          
Cash and cash equivalents  4,271,442  4,002,272  167,697,645 
Trade receivables  652,922  412,926  17,301,852 
Advances to suppliers  8,968,752  4,544,011  190,396,841 
Inventories, net  21,607,277  28,662,793  1,200,988,561 
Short-term prepayments and other receivables  6,457,169  7,309,198  306,259,868 
Short-term derivative assets  532,718  548,010  22,961,954 
Current net investment in sales-type lease  5,448  54,061  2,265,189 
Short-term investments  3,902  4,105  172,002 
Short-term amounts due from related parties  1,978,097  3,169,213  132,791,963 
Assets classified as held for sale  360,893  -  - 
Total current assets  44,838,620  48,706,589  2,040,835,875 
           
NON-CURRENT ASSETS          
Trade receivables  -  28,656  1,200,704 
Property, plant and equipment, net  57,188,667  67,916,328  2,845,735,691 
Intangible assets, net  1,461,071  1,295,303  54,273,988 
Goodwill  272,203  -  - 
Operating lease right-of-use assets  4,558,983  6,736,622  282,268,583 
Long-term derivative assets  696,332  66,124  2,770,636 
Long-term advances to suppliers  29,082  -  - 
Long-term prepayments  7,611  193,429  8,104,793 
Non-current net investment in sales-type lease  82,062  517,456  21,681,723 
Long-term amounts due from related parties  44,533  47,443  1,987,891 
Other non-current assets  4,426,135  5,464,562  228,968,491 
Total non-current assets  68,766,679  82,265,923  3,446,992,500 
TOTAL ASSETS  113,605,299  130,972,512  5,487,828,375 

 

 

 

VinFast Auto Ltd.

 

Unaudited Condensed Consolidated Balance Sheets (continued)

 

   As of December 31, 2022  As of December 31, 2023  As of December 31, 2023 
   VND million  VND million  USD 
   (Audited)  (Unaudited) 

(Unaudited)

 
EQUITY AND LIABILITIES          
           
CURRENT LIABILITIES          
Short-term and current portion of long-term interest-bearing loans and borrowings  14,579,553  39,894,782  1,671,615,771 
Short-term derivative liabilities  -  18,258,063  765,024,009 
Debenture Note  -  1,190,475  49,881,631 
Trade payables  16,636,820  10,937,631  458,293,430 
Deposits and down-payment from customers  1,572,537  780,266  32,693,623 
Short-term deferred revenue  107,448  169,329  7,094,989 
Short-term accruals  11,056,666  11,312,799  474,013,199 
Other current liabilities  4,177,978  10,306,456  431,846,811 
Current operating lease liabilities  768,883  1,410,444  59,098,466 
Amounts due to related parties  17,325,317  44,265,557  1,854,753,918 
Total current liabilities  66,225,202  138,525,802  5,804,315,847 
           
NON-CURRENT LIABILITIES          
Long-term interest-bearing loans and borrowings  41,624,960  30,170,149  1,264,147,700 
Long-term derivative liabilities  15,180,723  137,057  5,742,772 
Other non-current liabilities  606,429  1,910,709  80,059,876 
Non-current operating lease liabilities  3,256,351  5,192,481  217,568,130 
Long-term deferred revenue  499,395  1,701,340  71,287,187 
Deferred tax liabilities  947,981  911,272  38,182,854 
Long-term accruals  16,007  123,867  5,190,103 
Amounts due to related parties  21,918,710  18,116,587  759,096,078 
Total non-current liabilities  84,050,556  58,263,462  2,441,274,700 
           
Commitments and contingencies          
           
EQUITY          
Ordinary shares (2,299,999,998 and 2,337,788,498 shares issued and outstanding as of December 31, 2022 and 2023, respectively)  871,021  9,847,536  412,617,783 
Accumulated losses  (127,188,455) (184,292,753) (7,721,979,092)
Additional paid-in capital  12,311,667  31,748,427  1,330,278,513 
Other comprehensive loss  (104,065) (487,421) (20,423,238)
Deficit attributable to equity holders of the parent  (114,109,832) (143,184,211) (5,999,506,034)
Non-controlling interests  77,439,373  77,367,459  3,241,743,862 
Total deficit  (36,670,459) (65,816,752) (2,757,762,172)
TOTAL DEFICIT AND LIABILITIES  113,605,299  130,972,512  5,487,828,375 

 

 

 

VinFast Auto Ltd.

 

Unaudited Condensed Consolidated Statements of Operations

 

   For the three months ended December 31,   For the year ended December 31, 
   2022   2023   2023   2022   2023   2023 
   VND million   VND million   USD   VND million   VND million   USD 
   (Unaudited)   (Unaudited)   (Unaudited)   (Unaudited)   (Unaudited)   (Unaudited) 
Revenues                        
Sales of vehicles   3,611,844    9,456,934    396,251,320    12,391,500    26,179,028    1,096,917,288 
Sales of merchandise   65,792    98,557    4,129,599    112,206    151,482    6,347,188 
Sales of spare parts and components   609,014    282,864    11,852,175    2,072,628    870,622    36,479,594 
Rendering of services   62,950    158,147    6,626,456    222,732    458,193    19,198,567 
Rental income                              
Revenue from leasing activities   115,519    421,256    17,650,884    166,525    936,896    39,256,516 
Revenues   4,465,119    10,417,758    436,510,433    14,965,591    28,596,221    1,198,199,154 
Cost of vehicles sold   (7,175,037)   (13,627,696)   (571,008,799)   (24,660,149)   (39,110,839)   (1,638,768,080)
Cost of merchandise sold   (105,108)   (102,595)   (4,298,793)   (151,353)   (155,959)   (6,534,778)
Cost of spare parts and components sold   (558,966)   (253,307)   (10,613,718)   (1,869,084)   (619,098)   (25,940,585)
Cost of rendering services   (196,179)   (349,861)   (14,659,390)   (389,635)   (1,032,905)   (43,279,351)
Cost of leasing activities   (119,426)   (258,603)   (10,835,624)   (162,275)   (842,777)   (35,312,872)
Cost of sales   (8,154,716)   (14,592,062)   (611,416,324)   (27,232,496)   (41,761,578)   (1,749,835,666)
                               
Gross loss   (3,689,597)   (4,174,304)   (174,905,891)   (12,266,905)   (13,165,357)   (551,636,512)
                               
Operating expenses                              
Research and development costs   (5,898,324)   (2,746,461)   (115,078,396)   (19,939,898)   (14,534,291)   (608,995,684)
Selling and distribution costs   (1,852,529)   (1,438,143)   (60,259,071)   (5,213,739)   (5,469,520)   (229,176,234)
Administrative expenses   (2,028,829)   (1,459,275)   (61,144,515)   (4,010,012)   (5,321,336)   (222,967,234)
Net other operating expenses   649,441    (1,117,567)   (46,826,741)   (825,810)   (1,740,396)   (72,923,657)
                               
Operating loss   (12,819,838)   (10,935,750)   (458,214,615)   (42,256,364)   (40,230,900)   (1,685,699,321)
Finance income   (3,801)   16,202    678,874    88,060    82,672    3,464,007 
Finance costs   (2,505,046)   (3,474,164)   (145,569,597)   (7,959,840)   (12,073,433)   (505,884,229)
Net (loss)/gain on financial instruments at fair value through profit or loss   (51,284)   (1,039,328)   (43,548,479)   1,226,012    (4,879,833)   (204,467,988)
                               
Loss before income tax expense   (15,379,969)   (15,433,040)   (646,653,817)   (48,902,132)   (57,101,494)   (2,392,587,530)
Tax income/(expense)   66,516    (83,300)   (3,490,321)   (946,738)   (74,718)   (3,130,730)
                               
Net loss for the period   (15,313,453)   (15,516,340)   (650,144,138)   (49,848,870)   (57,176,212)   (2,395,718,260)
Net loss attributable to non-controlling interests   (27,715)   (8,181)   (342,789)   (65,075)   (74,671)   (3,128,761)
                               
Net loss attributable to controlling interest   (15,285,738)   (15,508,159)   (649,801,349)   (49,783,795)   (57,101,541)   (2,392,589,500)

 

 

 

 

VinFast Auto Ltd.

  

Unaudited Condensed Consolidated Statements of Comprehensive Loss

 

   For the three months ended December 31,   For the year ended December 31, 
   2022   2023   2023   2022   2023   2023 
   VND million   VND million   USD   VND million   VND million   USD 
   (Unaudited)   (Unaudited)   (Unaudited)   (Audited)   (Unaudited)   (Unaudited) 
Net loss for the period   (15,313,453)   (15,516,340)   (650,144,138)   (49,848,870)   (57,176,212)   (2,395,718,260)
                               
Other comprehensive (loss)/income                              
Other comprehensive (loss)/income that will be reclassified to profit or loss in subsequent periods (net of tax):                              
Exchange differences on translation of foreign operations   (48,453)   (386,021)   (16,174,516)   (40,571)   (383,356)   (16,062,851)
                               
Net other comprehensive (loss)/income that will be reclassified to profit or loss in subsequent periods   (48,453)   (386,021)   (16,174,516)   (40,571)   (383,356)   (16,062,851)
                               
Total comprehensive loss for the period, net of tax   (15,361,906)   (15,902,361)   (666,318,654)   (49,889,441)   (57,559,568)   (2,411,781,111)
Net loss attributable to non-controlling interests   (27,715)   (8,181)   (342,789)   (65,075)   (74,671)   (3,128,761)
Comprehensive loss attributable to controlling interest   (15,334,191)   (15,894,180)   (665,975,865)   (49,824,366)   (57,484,897)   (2,408,652,351)
                               
Net loss per share attributable to ordinary shareholders   VND    VND    USD    VND    VND    USD 
Basic and diluted   (6,648)   (6,642)   (0.28)   (21,654)   (24,710)   (1.04)
                             Unit: Shares 
Weighted average number of shares used in loss per share computation                              
Basic and diluted   2,299,143,522    2,334,761,397    2,334,761,397    2,299,008,659    2,310,823,009    2,310,823,009 

 

 

 

VinFast Auto Ltd.

 

Unaudited Condensed Consolidated Statements of Cash Flows

 

   For the year ended December 31, 
   2022   2023   2023 
   VND million   VND million   USD 
   (Audited)   (Unaudited)   (Unaudited) 
OPERATING ACTIVITIES               
Net loss for the year   (49,848,870)   (57,176,212)   (2,395,718,260)
Adjustments to reconcile net loss to net cash flows:               
Depreciation of property, plant and equipment   3,924,658    5,827,511    244,176,276 
Amortization of intangible assets   2,341,850    466,454    

19,544,708

 

 
Impairment of goodwill, assets and changes in fair value of held for sale assets    1,133,743    1,024,215    42,915,235 
Changes in operating lease right-of-use assets   448,651    1,107,894    46,421,436 
Provision related to compensation expenses, assurance-type warranties and net realizable value of inventories   5,988,521    8,570,494    359,108,942 
Allowance against receivable   172,571    -    - 
Deferred income tax expenses   946,738    74,718    3,130,730 
Unrealized foreign exchange losses   744,989    774,137    32,436,814 
Investment loss   18,962    -    - 
Net (gain)/loss on financial instruments at fair value through profit or loss   (1,226,012)   4,879,833    204,467,988 
Change in amortized costs of financial instruments measured at amortized cost   1,999,914    2,798,691    117,266,865 
Loss on disposal of fixed assets   -    84,829    3,554,387 
Share-based compensation expenses   -    144,083    6,037,166 
Change in working capital:               
Trade receivables, advance to suppliers   622,707    531,268    22,260,454 
Inventories   (20,241,698)   (12,329,479)   (516,612,713)
Trade payables, deferred revenues and other payables   17,792,820    (9,761,303)   (409,004,567)
Operating lease liabilities   (420,877)   (707,841)   (29,658,971)
Prepayments, other receivables and other assets   (27,080)   (120,203)   (5,036,579)
Net cash flows used in operating activities   (35,628,413)   (53,810,911)   (2,254,710,090)

  

 

 

VinFast Auto Ltd.

 

Unaudited Condensed Consolidated Statements of Cash Flows (continued)

 

   For the year ended December 31, 
   2022   2023   2023 
   VND million   VND million   USD 
   (Audited)  

(Unaudited)

   (Unaudited) 
INVESTING ACTIVITIES               
Purchase of property, plant and equipment, and intangible assets   (17,681,672)   (25,100,932)   (1,051,744,406)
Repayment under a business investment and cooperation contract   (968,773)   -    - 
Deposit received under a business investment and cooperation contract   170,017    -    - 
Proceeds from disposal of property, plant and equipment   1,412,976    1,003,506    42,047,515 
Disbursement of bank deposit   (3,902)   -    - 
Collection of loans   1,034,648    545,400    22,852,594 
Payment for acquisition of subsidiary (net of cash held by entity being acquired)   -    (6,900)   (289,114)
Proceeds from disposal of equity investment (net of cash held by entity being disposed)   (2,240)   -    - 
Receipt from government grant   -    393,934    16,506,076 
Net cash flows used in investing activities   (16,038,946)   (23,164,992)   (970,627,336)
                
FINANCING ACTIVITIES               
Capital contribution from owners   6,317,129    4,759,291    199,417,204 
Deemed contribution from owners   646,655    20,647,786    865,154,865 
Additional amount paid up to convert warrants to capital   -    1,421,444    59,559,373 
Payment for initial public offering costs   (41,649)   -    - 
Proceeds from borrowings and convertible debenture   87,660,103    101,393,847    4,248,464,217 
Repayment of borrowings   (41,637,135)   (50,801,704)   (2,128,622,475)
Net cash flows from financing activities   52,945,103    77,420,664    3,243,973,184 
                
Net increase in cash, cash equivalents and restricted cash   1,277,744    444,761    18,635,758 
Cash, cash equivalents and restricted cash at January 1   3,024,916    4,271,442    178,976,033 
Net foreign exchange difference   (31,218)   (204)   (8,548)
Cash, cash equivalents and restricted cash at December 31   4,271,442    4,715,999    197,603,243 
                
Supplement disclosures of non-cash activities               
Debt conversion to equity   71,515,874    -    - 
Non-cash property, plant and equipment additions   13,349,412    9,319,831    390,506,620 
Establishment of right-of-use assets and lease liabilities at commencement dates and lease modification   2,772,465    3,285,532    137,665,801 
Interest payable conversion to debt   2,625,845    -    - 
                
Supplemental Disclosure               
Interest paid, net of capitalized interest   4,378,839    7,341,014    307,592,977 
Income tax paid   22,618    -    - 

 

 

 

Part II – Fourth Quarter and Fiscal Year 2023 Financial Results and Business Update

 

Financial Results for the Fourth Quarter of 2023

 

Revenues

 

·Total revenues were VND10,417,758 million (US$436.5 million) in the fourth quarter of 2023, representing an increase of 133.3% from the fourth quarter of 2022 and an increase of 26.2% from the third quarter of 2023. Total revenues are primarily comprised of revenue from EV sales.

 

·Vehicle sales were VND9,456,934 million (US$396.3 million) in the fourth quarter of 2023, representing an increase of 161.8% from the fourth quarter of 2022 and an increase of 22.9% from the third quarter of 2023. Revenue growth was driven by an increase in EV sale volumes in the fourth quarter of 2023 and an improved product mix which led to a higher average selling price. The increase over the fourth quarter of 2022 was also attributed to an increase in sales volume of e-scooters, including the Feliz and Evo, and was partially offset by a decrease in ICE vehicle sales due to our full transition into an EV-only maker. The increase in vehicle sales over the third quarter of 2023 was partially offset by a slight decrease in sales volumes of e-scooters

 

Cost of Sales and Gross Margin

 

·Cost of sales was VND14,592,062 million (US$611.4 million) in the fourth quarter of 2023, representing an increase of 78.9% from the fourth quarter of 2022 and an increase of 36.1% from the third quarter of 2023. The increase over the fourth quarter of 2022 and third quarter of 2023 was primarily attributable to an increase in the cost of vehicles sold as the Company delivered more EVs to customers in the fourth quarter of 2023. The increase over the third quarter of 2023 was partially offset by a decrease in the cost of e-scooters sold due to decrease in sale volume of e-scooters. The increase over the fourth quarter of 2022 was also due to an increase in the cost of e-scooters sold, partially offset by a decrease in the total cost of ICE vehicles sold, due to the decrease in ICE vehicle sales volume due to our full transition into an EV-only maker.

 

·Gross loss was VND4,174,304 million (US$174.9million) in the fourth quarter of 2023, representing an increase of 13.1% from the fourth quarter of 2022 and an increase of 69.2% from the third quarter of 2023.

 

·Gross margin was negative (40.1%) in the fourth quarter of 2023, as compared to negative (82.6%) in the fourth quarter of 2022 and negative (29.9%) in the third quarter of 2023. The improvement of gross margin over the fourth quarter of 2022 was mainly attributed to a strong increase in sales volume of EVs which had a higher gross margin The decrease over the third quarter of 2023 was mainly attributed to the increase in charges to write down the carrying value of inventories

 

Operating Expenses

 

·Research and development (R&D) costs were VND2,746,461 million (US$115.1million) in the fourth quarter of 2023, representing a decrease of 53.4% from the fourth quarter of 2022 and a decrease of 13.3% from the third quarter of 2023. The decrease over the fourth quarter of 2022 and third quarter of 2023 is in line with four of our EV models, the VF 8, VF 9, VF 5 and VF6, progressing from the development stage to commercial production in the last four quarters.

 

·Selling, general and administrative expenses were VND2,897,418 million (US$121.4 million) in the fourth quarter of 2023, representing a decrease of 25.4% from the fourth quarter of 2022 and an increase of 4.9% from the third quarter of 2023. The decrease over the fourth quarter of 2022 was primarily due to a decrease in impairment charges for batteries leasing activities and a decrease in marketing costs across almost markets, which was partially offset against an increase in labor costs and external service renders. The increase over the third quarter of 2023 was primarily attributable to an increase in labor costs as a result of our efforts to scale up our sales and administrative operations in overseas markets.

 

·Net other operating expenses were VND1,117,567 million (US$46.8 million) in the fourth quarter of 2023, representing an increase in net expenses of 272.1% from the net income of the fourth quarter of 2022 and an increase of 113.2% from the third quarter of 2023. The increase in net expenses was mainly due to an increase in expenses in connection with discontinued projects and foreign exchange losses.

 

Loss from Operations

 

·Loss from operations was VND10,935,750 million (US$458.2 million) in the fourth quarter of 2023 representing a decrease of 14.7% from the fourth quarter of 2022 and an increase of 22.6% from the third quarter of 2023.

 

 

 

Net Loss and Net Loss Per Share

 

·Net loss on financial instruments at fair value through profit or loss was VND1,039,328 million (US$43.5 million) in the fourth quarter of 2023, representing an increase of 1,926.6% from net loss of the fourth quarter of 2022 and a decrease of 59.4% from net loss of the third quarter of 2023. The increase over net loss of the fourth quarter of 2022 and decrease over net loss of the third quarter of 2023 was mainly attributable to changes in the fair value of currency interest rate swaps contracts, financial liabilities in respect of dividend preference shares, and warrants.

 

·Net loss was VND15,516,340 million (US$650.1 million) in the fourth quarter of 2023, representing an increase of 1.3% from the fourth quarter of 2022 and an increase of 3.4% from the third quarter of 2023.

 

·Net loss attributable to controlling interest was VND15,508,159 million (US$649.8 million) in the fourth quarter of 2023, representing an increase of 1.5% from the fourth quarter of 2022 and an increase of 3.5% from the third quarter of 2023.

 

·Basic and diluted net loss per ordinary share were both VND6,642 (US$0.28) in the fourth quarter of 2023, compared with VND6,648 (US$0.28) in the fourth quarter of 2022 and VND6,491 (US$0.27) in the third quarter of 2023.

 

Balance Sheet

 

·Cash and cash equivalents were VND4,002,272 million (US$ 167.7 million) as of December 31, 2023.

 

Financial Results for the Fiscal Year Ended December 31, 2023

 

Revenues

 

·Total revenues were VND28,596,221 million (US$1,198.2 million) in 2023, representing an increase of 91.1% from 2022. Total revenues in 2023 are primarily comprised of revenue from EV sales.

 

·Vehicle sales were VND26,179,028 million (US$1,096.9 million) in 2023, representing an increase of 111.3% from 2022. Revenue growth was driven by an increase in EV and e-scooter sales volume in 2023, including the VF e34, VF 8, VF 5, VF6, VF 9 EV models, and the Feliz and Evo e-scooter models and an improved product mix which led to a higher average selling price. The majority of these sales were in Vietnam, complemented by sales of the VF 8 model in the North America market, which represented the beginning of our international rollout. The increase in vehicle sales revenue over 2022 was partially offset by a decrease of ICE vehicle sales due to our full transition into an EV-only maker.

 

Cost of Sales and Gross Margin

 

·Cost of sales was VND41,761,578 million (US$1,749.8 million) in 2023, representing an increase of 53.4% from 2022. The increase over 2022 was primarily attributable to increases in the cost of vehicles sold as the Company delivered more EVs and e-scooters to customers in 2023. This increase was partially offset by a decrease in the total cost of ICE vehicles sold, due to the decrease in ICE vehicle sales volume as we fully transformed into an EV-only maker.

 

·Gross loss was VND13,165,357 million (US$551.6 million) in 2023, representing an increase of 7.3% from 2022.

 

·Gross margin was negative (46.0%) in 2023, as compared to negative (82.0%) in 2022. The improvement of gross margin over 2022 was mainly attributed to a strong increase in sales volume of EVs which had a higher gross margin and a decrease in accelerated amortization and depreciation expenses due to our ICE vehicle production phase out.

 

Operating Expenses

 

·Research and development (R&D) costs were VND14,534,291 million (US$609.0 million) in 2023, representing a decrease of 27.1% from 2022. The decrease was in line with four of our EV models, the VF 8, VF 9, VF 5 and VF 6 models, progressing from the development stage to commercial production in 2023.

 

·Selling, general and administrative expenses were VND10,790,856 million (US$452.1 million) in 2023, representing an increase of 17.0% from 2022. The increase over 2022 was primarily attributable to an increase in labor costs and rental costs, as a result of our efforts to scale up our sales and administrative operations in overseas markets. The increase was partially offset against a decrease in extended warranties for ICE vehicles in line with our cessation of ICE vehicle production in 2023.

 

·Net other operating expenses were VND1,740,396 million (US$72.9 million) in 2023, representing an increase of 110.8% from 2022. The increase in net expenses was mainly due to an increase in expenses in connection with discontinued projects and was partially offset against a decrease in foreign exchange losses.

 

 

 

Loss from Operations

 

·Loss from operations was VND40,230,900 million (US$1,685.7million) in 2023, representing a decrease of 4.8% from 2022.

 

Net Loss and Earnings Per Share

 

·Net loss on financial instruments at fair value through profit or loss was VND4,879,833 million (US$204.5 million) in 2023, representing a decrease of 498.0% from net gain of VND1,226,012 million in 2022]. The decrease over the net gain in 2022 was mainly attributable to changes in the fair value of currency interest rate swaps contracts, financial liabilities in respect of Dividend Preferred Shares, and warrants.

 

·Net loss was VND57,176,212 million (US$2,395.7 million) in 2023, representing an increase of 14.7% from 2022.

 

·Net loss attributable to controlling interest was VND57,101,541 million (US$2,392.6 million) in 2023, representing an increase of 14.7% from 2022.

 

·Basic and diluted net loss per ordinary share were both VND24,710 (US$1.04) in 2023, compared with VND21,654 (US$0.91) in 2022.

 

Fourth Quarter and Full Year 2023 Business Updates

 

    FY 2023    4Q2023    3Q2023 
EV Deliveries1   34,855    13,513    10,027 
E-scooters Deliveries   72,468    24,309    28,220 

 

·EV deliveries were 13,513 in the fourth quarter of 2023, representing an increase of approximately 35% from the third quarter of 2023. For the full year 2023, EV deliveries were 34,855, representing an increase of approximately 374% from 2022.

 

·E-scooter deliveries were 24,309 in the fourth quarter of 2023, representing a decrease of approximately 14% from the third quarter of 2023 and an increase of approximately 48% from the fourth quarter of 2022. For the full year 2023, E-scooters deliveries were 72,468, representing an increase of approximately 21% from 2022.

 

·As of December 31, 2023, the Company had 123 showrooms globally for EVs and 246 showrooms and service workshops for e-scooters, including VinFast showrooms and dealer showrooms.

 

New Product Launches

 

·In December 2023, VinFast opened orders in Vietnam for the VF 7, its C-segment EV model

 

·Designed by Torino Design, the VF 7 is offered in two trims (Base and Plus) at a starting price of VND850 million (approximately US$35,616) for the Base trim and VND999 million (approximately US$41,900) for the Plus trim, excluding the battery. The expected WLTP driving range is 233 miles and 268 miles for the Base and Plus trims, respectively.

 

·At the 2024 CES in January, we announced the global launch of the VF 3, a 4-seat mini eSUV, and unveiled the concept of a mid-size pickup truck, the VF Wild.

 

Dealership in the US

 

·We signed agreements with six dealers in five states – New York, Texas, Kansas, Florida and North Carolina. Including those, we have received 75 applications from the dealer groups.

 

·These dealers will initially begin selling the VF 8 model, with plans to add the VF9, then the VF 6 and VF 7 models when these are launched in the North America market.

 

 

1 Includes VF e34, VF 5, VF 6, VF 8, VF 9 and e-bus

 

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New market expansion

 

·In India, we signed an MoU with the State of Tamil Nadu to establish an integrated EV manufacturing facility with an intended commitment of up to US$500 million for phase 1 of the project. The groundbreaking ceremony is scheduled for February 25, 2024.

 

·In Indonesia, at the Indonesia International Motor Show 2024 (“IIMS”), we announced the launch of our right-hand drive versions of the VF 5, VF e34, VF 6, and VF 7 models and the signings of letters of intent with five dealers in February 2024.

 

·Also during the IIMS, we signed memoranda of understanding with three Jakarta-based companies, PT. Energi Mandiri Bumi Pertiwi, PT. Sumber Amarta Jaya, and PT. Teknologi Karya Digital Nusa Tbk, for the intended purchase of approximately 600 VinFast EVs.

 

Leadership transition

 

·In January 2024, Mr. Pham Nhat Vuong transitioned from his role as Chairman to assume the executive position of CEO to facilitate VinFast’s next phase of global expansion.

 

·Madame Thuy transitioned to the role of Chairwoman of VinFast’s Board to focus on fund raising and expanding international and strategic relations.

 

·Ms. Lan Anh Nguyen was appointed to the position of VinFast Chief Financial Officer, replacing Mr. David Mansfield.

 

VinES Acquisition

 

·In October 2023, VinFast announced the acquisition of VinES Energy Solutions Joint Stock Company (“VinES”), one of our key EV battery suppliers, from Mr. Pham Nhat Vuong.

 

·The acquisition of VinES closed in January 2024.

 

Related Party Transactions

 

·Out of 34,855 EVs delivered in 2023, 72% were to related parties of the Company (mainly to Green and Smart Mobility Joint Stock Company (“GSM”)).

 

·Out of 72,468 E-scooters delivered in 2023, 46% were to related parties of the Company (mainly to GSM).

 

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