EX-99.1 2 tm2424221d1_ex99-1.htm EXHIBIT 99.1

 

Exhibit 99.1

 

VinFast Auto Ltd.

 

Unaudited Condensed Consolidated Balance Sheets

 

    As of December 31, 2023     As of March 31, 2024     As of March 31, 2024  
    VND million     VND million     USD  
    (As adjusted(1))     (Unaudited)
(Restated)		     (Unaudited)
(Restated)		  
ASSETS                  
                   
CURRENT ASSETS                        
Cash and cash equivalents     4,095,472       2,959,316       123,289,422  
Restricted cash     102,932       53,918       2,246,303  
Trade receivables     469,918       415,926       17,328,084  
Advances to suppliers     4,753,634       4,338,778       180,759,822  
Inventories, net     30,141,381       27,861,431       1,160,747,865  
Short-term prepayments and other receivables     8,006,103       8,469,212       352,839,728  
Short-term derivative assets     548,010       697,520       29,059,701  
Current net investment in sales-type lease     87,552       68,515       2,854,435  
Short-term investments     4,105       4,106       171,062  
Short-term amounts due from related parties     2,374,382       2,493,265       103,873,058  
Total current assets     50,583,489       47,361,987       1,973,169,479  
                         
NON-CURRENT ASSETS                        
Trade receivables     110,312       112,370       4,681,498  
Property, plant and equipment, net     79,122,703       81,148,209       3,380,752,781  
Intangible assets, net     1,346,324       1,307,720       54,481,523  
Investment in equity investees     1,214,938       1,213,504       50,556,347  
Other long-term investments     918,040       918,040       38,246,886  
Operating lease right-of-use assets     7,081,509       6,889,380       287,021,622  
Long-term derivative assets     66,124       -       -  
Long-term prepayments     217,180       214,270       8,926,801  
Non-current net investment in sales-type lease     620,665       642,616       26,772,320  
Long-term amounts due from related parties     51,073       51,073       2,127,776  
Long-term restricted cash     660,363       706,913       29,451,027  
Other non-current assets     4,865,001       5,438,107       226,559,472  
Total non-current assets     96,274,232       98,642,202       4,109,578,053  
TOTAL ASSETS     146,857,721       146,004,189       6,082,747,532  

 

(1)As adjusted retrospectively to reflect the historical financial statements of VinES acquired on January 19, 2024, deemed as business combination under common control.

 

1 

 

 

VinFast Auto Ltd.

 

Unaudited Condensed Consolidated Balance Sheets (continued)

 

    As of December 31, 2023     As of March 31, 2024     As of March 31, 2024  
    VND million     VND million     USD  
    (As adjusted(1))     (Unaudited)
(Restated)		     (Unaudited)
(Restated)		  
EQUITY AND LIABILITIES                        
                         
CURRENT LIABILITIES                        
Short-term and current portion of long-term interest-bearing loans and borrowings     42,924,034       47,544,059       1,980,754,864  
Convertible debenture     1,190,475       1,222,605       50,935,508  
Short-term financial liabilities     18,258,063       19,253,692       802,136,900  
Trade payables     12,146,588       7,835,821       326,451,735  
Deposits and down-payment from customers     1,194,112       998,387       41,594,259  
Short-term deferred revenue     149,747       146,495       6,103,195  
Short-term accruals     11,431,878       10,526,833       438,563,221  
Other current liabilities     13,875,625       14,045,921       585,173,562  
Current operating lease liabilities     1,524,356       1,540,230       64,168,229  
Amounts due to related parties     49,341,144       56,862,943       2,368,993,168  
Total current liabilities     152,036,022       159,976,986       6,664,874,641  
                         
NON-CURRENT LIABILITIES                        
Long-term interest-bearing loans and borrowings     30,170,149       24,766,799       1,031,820,981  
Long-term derivative liabilities     137,057       58,048       2,418,364  
Other non-current liabilities     2,194,253       2,882,082       120,071,741  
Non-current operating lease liabilities     5,330,344       5,171,218       215,440,487  
Long-term deferred revenue     1,569,733       1,721,792       71,732,367  
Deferred tax liabilities     1,025,264       992,319       41,341,457  
Long-term accruals     123,867       179,371       7,472,858  
Amounts due to related parties     19,682,747       30,246,856       1,260,128,151  
Total non-current liabilities     60,233,414       66,018,485       2,750,426,405  
                         
Commitments and contingencies                        
                         
EQUITY                        
Ordinary shares – VinFast Auto (2,337,788,498 and 2,337,865,164 shares issued and outstanding as of December 31, 2023 and March 31, 2024 respectively)     9,847,536       9,861,943       410,862,934  
Accumulated losses     (190,502,556 )     (205,223,838 )     (8,549,924,509 )
Additional paid-in capital     38,258,499       38,370,811       1,598,583,969  
Other comprehensive loss     (385,873 )     (348,292 )     (14,510,353 )
Deficit attributable to equity holders of the parent     (142,782,394 )     (157,339,376 )     (6,554,987,960 )
Non-controlling interests     77,370,679       77,348,094       3,222,434,446  
Total deficit     (65,411,715 )     (79,991,282 )     (3,332,553,514 )
TOTAL DEFICIT AND LIABILITIES     146,857,721       146,004,189       6,082,747,532  

 

(1)As adjusted retrospectively to reflect the historical financial statements of VinES acquired on January 19, 2024, deemed as business combination under common control.

 

2 

 

 

VinFast Auto Ltd.

 

Unaudited Condensed Consolidated Statements of Operations

 

    For the three months ended March 31,  
    2023      2024     2024  
    VND million     VND million     USD  
    (As adjusted(1))     (Unaudited)
 (Restated)		     (Unaudited)
(Restated)		  
Revenues                        
Sales of vehicles     1,529,758       5,754,230       239,729,617  
Sales of merchandise     38,269       41,555       1,731,242  
Sales of spare parts and components     191,545       288,880       12,035,162  
Rendering of services     74,720       215,743       8,988,168  
Rental income                        
Revenue from leasing activities     130,473       225,456       9,392,826  
Revenues     1,964,765       6,525,864       271,877,015  
Cost of vehicles sold     (4,802,400 )     (9,535,524 )     (397,263,842 )
Cost of merchandise sold     (38,533 )     (41,286 )     (1,720,035 )
Cost of spare parts and components sold     (180,872 )     (186,941 )     (7,788,235 )
Cost of rendering services     (173,466 )     (369,312 )     (15,386,077 )
Cost of leasing activities     (148,305 )     (221,710 )     (9,236,762 )
Cost of sales     (5,343,576 )     (10,354,773 )     (431,394,951 )
                         
Gross loss     (3,378,811 )     (3,828,909 )     (159,517,935 )
                         
Operating expenses                        
Research and development costs     (5,179,913 )     (2,592,704 )     (108,015,831 )
Selling and distribution costs     (1,277,860 )     (1,713,130 )     (71,371,495 )
Administrative expenses     (1,215,608 )     (1,344,055 )     (55,995,292 )
Net other operating expenses     66,872       (550,441 )     (22,932,175 )
                         
Operating loss     (10,985,320 )     (10,029,239 )     (417,832,729 )
Finance income     160,395       28,449       1,185,227  
Finance costs     (2,865,586 )     (4,164,757 )     (173,509,853 )
Net (loss)/gain on financial instruments at fair value through profit or loss     (671,463 )     (609,830 )     (25,406,408 )
Share of gain/(losses) from equity investees     2,809       (1,434 )     (59,743 )
                         
Loss before income tax expense     (14,359,165 )     (14,776,811 )     (615,623,505 )
Tax income/(expense)     19,502       32,944       1,372,495  
                         
Net loss for the period     (14,339,663 )     (14,743,867 )     (614,251,010 )
Net loss attributable to non-controlling interests     (28,865 )     (22,585 )     (940,924 )
                         
Net loss attributable to controlling interest     (14,310,798 )     (14,721,282 )     (613,310,086 )

 

(1)As adjusted retrospectively to reflect the historical financial statements of VinES acquired on January 19, 2024, deemed as business combination under common control.

 

3 

 

 

VinFast Auto Ltd.

 

Unaudited Condensed Consolidated Statements of Comprehensive Loss

 

    For the three months ended March 31,  
    2023      2024     2024  
    VND million     VND million     USD  
    (As adjusted(1))     (Unaudited)
(Restated)		     (Unaudited)
(Restated)		  
Net loss for the period     (14,339,663 )     (14,743,867 )     (614,251,010 )
                         
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     (18,824 )     37,580       1,565,679  
                         
Net other comprehensive (loss)/income that will be reclassified to profit or loss in subsequent periods     (18,824 )     37,580       1,565,679  
                         
Total comprehensive loss for the period, net of tax     (14,358,487 )     (14,706,287 )     (612,685,331 )
Net loss attributable to non-controlling interests     (28,865 )     (22,585 )     (940,924 )
Comprehensive loss attributable to controlling interest     (14,329,622 )     (14,683,702 )     (611,744,407 )
                         
Net loss per share attributable to ordinary shareholders     VND       VND       USD  
Basic and diluted     (6,224 )     (6,297 )     (0.26 )
                         
Weighted average number of shares used in loss per share computation                        
Basic and diluted     2,299,999,998       2,337,862,964       2,337,862,964  

 

(1)As adjusted retrospectively to reflect the historical financial statements of VinES acquired on January 19, 2024, deemed as business combination under common control.

 

4 

 

 

VinFast Auto Ltd.

 

Unaudited Condensed Consolidated Statements of Cash Flows

 

    For the three months ended March 31,  
    2023      2024     2024  
    VND million     VND million     USD  
    (As adjusted(1))     (Unaudited)
(Restated)		     (Unaudited)
(Restated)		  
OPERATING ACTIVITIES                        
Net loss for the period     (14,339,663 )     (14,743,867 )     (614,251,010 )
Adjustments to reconcile net loss to net cash flows:                        
Depreciation of property, plant and equipment     1,190,905       2,021,967       84,238,095  
Amortization of intangible assets     56,268       81,429       3,392,451  
Impairment of goodwill, assets and changes in fair value of held for sale assets     350,610       36,436       1,517,977  
Changes in operating lease right-of-use assets     207,744       294,866       12,284,548  
Provision related to compensation expenses, assurance-type warranties and net realizable value of inventories     2,830,972       2,560,902       106,690,914  
Deferred income tax income     (19,502 )     (32,944 )     (1,372,495 )
Unrealized foreign exchange (gain)/losses     (87,585 )     379,399       15,806,316  
Shares of (gain)/loss from equity investees     -       1,434       59,743  
Net (gain)/loss on financial instruments at fair value through profit or loss     671,463       609,830       25,406,408  
Change in amortized costs of financial instruments measured at amortized cost     798,271       809,053       33,706,328  
Share-based compensation expenses     (2,809 )     47,880       1,994,751  
Change in working capital:                        
Trade receivables, advance to suppliers, net investment in sales-type lease     1,856,615       (638,888 )     (26,617,006 )
Inventories     (6,147,799 )     564,207       23,505,687  
Trade payables, deferred revenues and other payables     (1,723,131 )     (4,180,575 )     (174,168,854 )
Operating lease liabilities     (243,317 )     (245,989 )     (10,248,261 )
Prepayments, other receivables and other assets     (16,408 )     7,913       329,667  
Net cash flows used in operating activities     (14,617,366 )     (12,426,947 )     (517,724,743 )

 

(1)As adjusted retrospectively to reflect the historical financial statements of VinES acquired on January 19, 2024, deemed as business combination under common control.

 

5 

 

 

VinFast Auto Ltd.

 

Unaudited Condensed Consolidated Statements of Cash Flows (continued)

 

    For the three months ended March 31,  
    2023      2024     2024  
    VND million     VND million     USD  
    (As adjusted(1))     (Unaudited)
(Restated)		     (Unaudited)
(Restated)		  
INVESTING ACTIVITIES                        
Purchase of property, plant and equipment, and intangible assets (including deposit paid under construction contracts)     (6,222,318 )     (4,789,704 )     (199,546,057 )
Disbursement of bank deposit     (10,480,000 )     -       -  
Collection of loans     677,900       -       -  
Payment for acquisition of subsidiary (net of cash held by entity being acquired)     (480,804 )     (10,252 )     (427,113 )
Receipt from government grants     -       509,821       21,239,887  
Net cash flows used in investing activities     (16,505,222 )     (4,290,135 )     (178,733,283 )
                         
FINANCING ACTIVITIES                        
Deemed contribution from owners     -       74,904       3,120,610  
Proceeds from borrowings     45,127,185       24,627,697       1,026,025,788  
Repayment of borrowings     (13,931,753 )     (9,190,864 )     (382,904,804 )
Net cash flows from financing activities     31,195,432       15,511,737       646,241,595  
                         
Net increase in cash, cash equivalents and restricted cash     72,844       (1,205,345 )     (50,216,431 )
Cash, cash equivalents and restricted cash at the beginning of the period     4,361,631       4,858,766       202,423,280  
Net foreign exchange difference     (14,645 )     66,726       2,779,903  
Cash, cash equivalents and restricted cash at the end of period     4,419,830       3,720,147       154,986,752  
                         
Supplement disclosures of non-cash activities                        
Non-cash property, plant and equipment additions     4,254,079       6,713,519       279,694,996  
Establishment of right-of-use assets and lease liabilities at commencement dates and lease modification     2,966,933       102,737       4,280,173  
                         
Supplemental Disclosure                        
Interest paid, net of capitalized interest     1,232,327       2,096,344       87,336,750  

 

(1)As adjusted retrospectively to reflect the historical financial statements of VinES acquired on January 19, 2024, deemed as business combination under common control.

 

6 

 

 

Restatement of the Interim Financial Statements

 

The Interim Financial Statements of VinFast Auto Ltd. (the “Company”, “our”, or “we”) as of March 31, 2024 and for the three months then ended were restated to (a) correct accounting errors relating to (i) the recognition of revenue from the sale of vehicles on a bill-and-hold basis and (ii) the accounting for an after-sale policy and (b) to reflect as a subsequent event an update of the 1Q24 financial statements of VinES Energy Solution Joint Stock Company (“VinES”) – a subsidiary of the Company following the completion of the audit of its fiscal year 2023 financial statements. Details are as follows:

 

-In relation to accounting errors in connection with recognition of revenue from sale of vehicles on the bill-and-hold basis, the Company delivered and transferred risk and control of 412 EVs and 2,192 e-scooters to GSM JSC and 12 EVs to an unrelated third party in Vietnam in the first quarter of 2024. Therefore, the Company excluded those sales in its restated financial statements for fiscal year 2023, and the Company has recognized those sales in the first quarter of 2024 by adjusting the corresponding revenue, amount due from a related party, advance from customer, trade receivables, other receivables, cost of sale, inventories, accrual for sale transaction, deferred revenue, warranty provided and the related impact of provision for inventories.

 

Separately, after the fiscal year ended December 31, 2023, the sale of 425 EVs and 924 e-scooters to GSM JSC, 291 EVs to Vinhomes JSC and 182 EVs and 38 e-scooters to unrelated third parties in Vietnam were originally recorded as revenue in the first quarter of 2024. However, the dispatching of these vehicles for delivery began in the second quarter of 2024 or risk and controls had not been fully transferred to the customers during the first quarter of 2024. Therefore, the Company corrected this error by adjusting the corresponding revenue, advance from customer, amount due to a related party, other receivables, cost of sale, inventories, accrual for sale transaction, deferred revenue, warranty provided and the related impact of provision for inventories, as reflected in the restated Interim Financial Statements;

 

-In 2024, the Company announced an after-sales policy that provides eligible customers who previously purchased the Company’s ICE vehicles with service vouchers. The Company recognized expenses in relation to vehicles sold prior to effectiveness of this policy as selling and distribution costs rather than as a reduction to revenue. Since the after-sales expenses policy is tied to previously recognized revenue and current customer agreements, the support provided under the after-sales policy is consideration payable to a customer and should have been recorded as a reduction to revenue during the first quarter of 2024. Accordingly, the Company corrected this error by decreasing selling and distribution costs and revenue by the same amount.

 

-

In January 2024, we acquired our affiliate, VinES, a Vietnam-based EV battery company, from Mr. Pham Nhat Vuong. The Company has reflected the audited financial statements of VinES for fiscal year 2023 in the restated Interim Financial Statements as the VinES financial statements were released subsequent to the issuance of Company’s original Interim Financial Statements. In particular, the following line items are adjusted: including account property, plant and equipment, net, other long-term investments, trade payables, provision for warranty, amounts due to a related party, deferred tax liabilities, cost of sale, research and development costs and finance costs.

 

7 

 

 

The financial statements of the Company as of March 31, 2024 and for the three months then ended have been updated to reflect the events mentioned above. Details are as follows:

 

    As previously
reported		     Adjustment     As adjusted     As adjusted  
CONSOLIDATED BALANCE SHEET   VND million     VND million     VND million     USD  
As of March 31, 2024                        
ASSETS                                
Trade receivables     526,856       (110,930 )     415,926       17,328,084  
Inventories, net     26,711,521       1,149,910       27,861,431       1,160,747,865  
Short-term prepayments and other receivables     8,329,867       139,345       8,469,212       352,839,728  
Short-term amounts due from related parties     3,376,097       (882,832 )     2,493,265       103,873,058  
Total current assets     47,066,494       295,493       47,361,987       1,973,169,479  
Property, plant and equipment, net     80,986,881       161,328       81,148,209       3,380,752,781  
Other long-term investments     937,268       (19,228 )     918,040       38,246,886  
Total non-current assets     98,500,102       142,100       98,642,202       4,109,578,053  
TOTAL ASSETS     145,566,596       437,593       146,004,189       6,082,747,532  
                                 
EQUITY AND LIABILITIES                                
CURRENT LIABILITIES                                
Trade payables     7,688,438       147,383       7,835,821       326,451,735  
Deposits and down-payment from customers     663,849       334,538       998,387       41,594,259  
Short-term accruals     10,541,709       (14,876 )     10,526,833       438,563,221  
Other current liabilities     14,143,625       (97,704 )     14,045,921       585,173,562  
Amounts due to related parties     56,856,137       6,806       56,862,943       2,368,993,168  
Total current liabilities     159,600,839       376,147       159,976,986       6,664,874,641  
Other non-current liabilities     2,930,699       (48,617 )     2,882,082       120,071,741  
Long-term deferred revenue     1,763,294       (41,502 )     1,721,792       71,732,367  
Deferred tax liabilities     987,819       4,500       992,319       41,341,457  
Amounts due to related parties     30,114,664       132,192       30,246,856       1,260,128,151  
Total non-current liabilities     65,971,912       46,573       66,018,485       2,750,426,405  
Accumulated losses     (205,239,009 )     15,171       (205,223,838 )     (8,549,924,509 )
Deficit attributable to equity holders of the parent     (157,354,547 )     15,171       (157,339,376 )     (6,554,987,960 )
Non-controlling interests     77,348,392       (298 )     77,348,094       3,222,434,446  
Total deficit     (80,006,155 )     14,873       (79,991,282 )     (3,332,553,514 )
TOTAL DEFICIT AND LIABILITIES     145,566,596       437,593       146,004,189       6,082,747,532  

 

8 

 

 

      As previously reported       Adjustment       As adjusted       As adjusted  
CONSOLIDATED STATEMENT OF OPERATIONS     VND million       VND million       VND million       USD  
For the three months ended March 31, 2024                                
Sales of vehicles     6,492,833       (738,603 )     5,754,230       239,729,617  
Revenues     7,264,467       (738,603 )     6,525,864       271,877,015  
Cost of vehicles sold     (10,064,701 )     529,177       (9,535,524 )     (397,263,842 )
Cost of sales     (10,883,950 )     529,177       (10,354,773 )     (431,394,951 )
Gross loss     (3,619,483 )     (209,426 )     (3,828,909 )     (159,517,935 )
Research and development costs     (2,626,801 )     34,097       (2,592,704 )     (108,015,831 )
Selling and distribution costs     (1,982,864 )     269,734       (1,713,130 )     (71,371,495 )
Operating loss     (10,123,644 )     94,405       (10,029,239 )     (417,832,729 )
Finance costs     (4,162,257 )     (2,500 )     (4,164,757 )     (173,509,853 )
Loss before income tax expense     (14,868,716 )     91,905       (14,776,811 )     (615,623,505 )
Tax income     26,839       6,105       32,944       1,372,495  
Net loss for the period     (14,841,877 )     98,010       (14,743,867 )     (614,251,010 )
Net loss attributable to non-controlling interests     (22,673 )     88       (22,585 )     (940,924 )
Net loss attributable to controlling interest     (14,819,204 )     97,922       (14,721,282 )     (613,310,086 )
                                 
CONSOLIDATED STATEMENT OF OTHER COMPREHENSIVE LOSS                                
For the three months ended March 31, 2024                                
Net loss for the period     (14,841,877 )     98,010       (14,743,867 )     (614,251,010 )
Total comprehensive loss for the period, net of tax     (14,804,297 )     98,010       (14,706,287 )     (612,685,331 )
Net loss attributable to non-controlling interests     (22,673 )     88       (22,585 )     (940,924 )
Comprehensive loss attributable to controlling interest     (14,781,624 )     97,922       (14,683,702 )     (611,744,407 )
Net loss per share attributable to ordinary shareholders                                
Basic and diluted     (6,339 )     42       (6,297 )     (0.26 )
                                 
CONSOLIDATED STATEMENTS OF CASH FLOW                                
Net loss for the period     (14,841,877 )     98,010       (14,743,867 )     (614,251,010 )
Depreciation of property, plant and equipment     2,009,490       12,477       2,021,967       84,238,095  
Amortization of intangible assets     90,080       (8,651 )     81,429       3,392,451  
Provision related to compensation expenses, assurance-type warranties and net realizable value of inventories     2,610,649       (49,747 )     2,560,902       106,690,914  
Deferred tax income     (26,839 )     (6,105 )     (32,944 )     (1,372,495 )
Change in amortized costs of financial instruments measured at amortized cost     806,554       2,499       809,053       33,706,328  
Change in working capital:                                
Trade receivables, advance to suppliers, net investment in sales-type lease     (1,110,933 )     472,045       (638,888 )     (26,617,006 )
Inventories     1,093,508       (529,301 )     564,207       23,505,687  
Trade payables, deferred revenues and other payables     (4,171,500 )     (9,075 )     (4,180,575 )     (174,168,854 )
Net cash flows used in operating activities     (12,409,099 )     (17,848 )     (12,426,947 )     (517,724,743 )
Purchase of property, plant and equipment, and intangible assets (including deposit paid under construction contracts)     (4,807,718 )     18,014       (4,789,704 )     (199,546,057 )
Payment for acquisition of subsidiary (net of cash held by entity being acquired)     -       (10,252 )     (10,252 )     (427,113 )
Net cash flows used in investing activities     (4,297,897 )     7,762       (4,290,135 )     (178,733,283 )
Payment for initial public offering costs     (10,252 )     10,252       -       -  
Repayment of borrowings     (9,190,698 )     (166 )     (9,190,864 )     (382,904,804 )
Net cash flows from financing activities     15,501,651       10,086       15,511,737       646,241,595  

 

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