AsemconnectVietnam - TMT Auto JSC (code TMT - HOSE) recorded a loss of VND100.17 billion in the second quarter of 2024, and a cumulative loss of VND99.9 billion in the first half of 2024, erasing all accumulated profits accumulated over many years.

In the second quarter of 2024, TMT Auto recorded revenue of VND805.56 billion, down 2.6% year-on-year, and the parent company's after-tax profit recorded a loss of VND100.17 billion compared to the same period, a loss of VND0.58 billion, a decrease of VND99.59 billion.
It is known that since its listing in January 2010, TMT Auto has not had a record loss like in the second quarter of 2024. Of which, the largest loss ever recorded was in the second quarter of 2022 with a negative value of VND16.96 billion.
Notably, during the period, business below cost price led to a negative gross profit of VND47.61 billion, down VND101.28 billion compared to the same period. In addition, also during the period, financial expenses decreased by 41.8%, equivalent to a decrease of VND17.13 billion to VND23.83 billion; sales and business management expenses increased by 28.4%, equivalent to an increase of VND7.27 billion to VND32.84 billion...
Thus, TMT Auto recorded a record loss in the second quarter mainly due to business below cost price, while also being under pressure from financial, sales and business management expenses.
In the first half of 2024, TMT Auto recorded revenue of VND1,321.66 billion, down 13.5% year-on-year, and the parent company's after-tax profit recorded a loss of VND99.9 billion, down VND101.32 billion year-on-year.
In 2024, TMT Auto plans to have revenue of VND2,645.96 billion and after-tax profit of VND38.57 billion.
Thus, ending the first half of 2024 with a loss of VND99.9 billion, TMT Auto is still far from the plan to make a profit in the 2024 fiscal year.
Eliminating all accumulated profits accumulated over many years after a quarter of losses
With a loss of VND99.9 billion in the first half of 2024, as of June 30, 2024, TMT Auto has erased all accumulated profits accumulated over many years and recorded an accumulated loss of VND46.2 billion, equal to 12.4% of charter capital (charter capital of VND372.9 billion).
In terms of asset size, as of June 30, 2024, TMT Auto's total assets decreased sharply by 30.8% compared to the beginning of the year, equivalent to a decrease of VND667.9 billion, to VND1,501.9 billion. Of which, the main assets in inventory were recorded at VND825.5 billion, accounting for 55% of total assets; fixed assets were recorded at VND295 billion, accounting for 19.6% of total assets; other long-term assets were recorded at VND212.3 billion, accounting for 14.1% of total assets... TMT Automobile explained the inventory structure, at the beginning of the year, it only set aside a provision of VND15.5 billion, but at the end of the second quarter, it had set aside up to VND28.14 billion. Of which, the provision was related to finished products and goods in transit.
In addition, also at the end of the second quarter, total cash had decreased by 62.9% compared to the beginning of the year, corresponding to a decrease of VND20.69 billion to VND12.2 billion. In contrast, total short-term and long-term debt amounted to VND570.87 billion, equal to 168.6% of total equity. Of which, short-term debt is VND555.97 billion and long-term debt is VND14.9 billion.
It is known that TMT Auto has attracted the attention of investors when selling additional electric vehicle products. In particular, TMT Auto started delivering the first Wuling HongGuang Mini EV electric vehicles in Vietnam in September 2023 with the goal of selling 5,000 vehicles per year when participating in selling electric vehicles.
N.Nga
Source: VITIC/Tinnhanhchungkhoan