TMT Motors (TMT) recently released its financial report, revealing revenue of over 1,233 billion VND for the first half of the year, a nearly 7% decrease compared to the same period last year. This decline is primarily attributed to a 41% drop in Q2 revenue, stemming from a shortage of heavy trucks over 10 tons. Adjusted delivery schedules from suppliers led to registration delays, impacting sales targets.

On a positive note, sales of light trucks under 10 tons met planned targets, and the company continues to restructure its products and supplier network. Management reported that Q2 sales consisted entirely of Euro 5 vehicles, boasting quality, suitable designs, and competitive pricing.

A recently launched Wuling EV model in Vietnam with a starting price of 399 million VND. Photo: TMT Motors

A recently launched Wuling EV model in Vietnam with a starting price of 399 million VND. Photo: TMT Motors

A 16% decrease in cost of goods sold in the first six months led to a nearly 14-fold improvement in gross profit, reaching over 133 billion VND. TMT attributes this to effective cost control measures, strategic sourcing of raw materials, and improved operational efficiency. The company also saw a threefold increase in financial revenue, reaching 3 billion VND, primarily due to interest income from deposits.

Recurring expenses were also reduced. Financial costs were cut by more than half to 23 billion VND as the company liquidated all inventory to prepay bank debts. Management expenses also decreased by over 20% through personnel optimization, streamlining administration, and controlling indirect costs.

As a result, TMT Motors reported a post-tax profit of nearly 54.8 billion VND for the first half of the year, a significant improvement from the nearly 99 billion VND loss during the same period last year. This six-month profit also surpasses the full-year profits from 2016 to 2024.

TMT Motors, formerly the Transportation Mechanical Equipment and Materials Company under the Department of Mechanical Engineering (Ministry of Transport, now Ministry of Construction), primarily focused on light trucks. The company is also a partner in the General Motors - SAIC - Wuling joint venture to manufacture, assemble, and distribute Wuling EVs in Vietnam, including the Wuling mini EV and Wuling Bingo.

The company's performance declined from the second half of 2022, with several quarters of losses or minimal profits. In 2024, TMT reported a loss of over 315 billion VND, nearly one billion VND per day, a first in its history. This was attributed to a sharp decline in auto sales and the company's comprehensive restructuring. Accumulated losses reached nearly 270 billion VND by the end of 2024, leading the Ho Chi Minh City Stock Exchange (HoSE) to issue a trading warning for TMT stock.

With the return to profitability in the first half of this year, the company has reduced its accumulated losses by approximately 20%. Management plans to maintain sales growth, optimize product structure, and strengthen inventory management. They will also continue to review production processes to reduce costs and lower product prices.

This year, TMT Motors aims to sell over 8,000 vehicles, 2.5 times more than in 2024, including 7 new EV models. The company also plans to invest in 30,000 charging stations nationwide over the next 5 years, with an initial target of 200 stations this year.

The company's full-year targets include a 65% increase in revenue to 3,839 billion VND and a post-tax profit of nearly 270 billion VND to eliminate accumulated losses. To date, TMT has achieved 30% of its revenue target and over 20% of its profit goal.

Tat Dat