Filed Pursuant to Rule 424(b)(3)
Registration No. 333-274475
Prospectus Supplement No. 1
(To Prospectus dated March 22, 2024)
VinFast Auto Ltd.
64,041,969 Ordinary Shares
This prospectus supplement amends and supplements the prospectus dated March 22, 2024 (the “Prospectus”), which forms a part of our Registration Statement on Form F-1 (Registration Statement No. 333-274475). The Prospectus relates to: (i) the offer and sale, from time to time, by the selling securityholders named therein, or their pledgees, donees, transferees, or other successors in interest, of an aggregate of 60,720,967 ordinary shares of VinFast Auto Ltd., a public company incorporated under the laws of Singapore (Company Registration No: 201501874G), no par value (“ordinary shares”), and (ii) the issuance from time to time by us of up to 3,321,002 ordinary shares issuable upon the exercise of up to 3,672,708 warrants. Each warrant entitles the holder thereof to purchase one ordinary share at a price of $11.50 per ordinary share.
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 April 17, 2024, the last reported sale price of our ordinary shares and warrants as reported on Nasdaq was $2.72 per ordinary share and $0.4725 per warrant, respectively.
Investing in our securities involves a high degree of risk. See “Risk Factors” beginning on page 12 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 April 18, 2024.
Part I
– Unaudited Condensed Consolidated Financial Statements
As of and for the three months and full year ended March 31, 2024
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) | (Unaudited) | ||||||||||
| ASSETS | ||||||||||||
| CURRENT ASSETS | ||||||||||||
| Cash and cash equivalents | 4,095,472 | 2,959,316 | 123,289,422 | |||||||||
| Trade receivables | 469,918 | 526,856 | 21,949,590 | |||||||||
| Advances to suppliers | 4,752,004 | 4,338,778 | 180,759,822 | |||||||||
| Inventories, net | 29,518,771 | 26,711,521 | 1,112,840,937 | |||||||||
| Short-term prepayments and other receivables | 8,017,739 | 8,383,785 | 349,280,715 | |||||||||
| 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 | 2,849,679 | 3,376,097 | 140,653,127 | |||||||||
| Total current assets | 50,343,250 | 47,066,494 | 1,960,858,809 | |||||||||
| NON-CURRENT ASSETS | ||||||||||||
| Trade receivables | 110,312 | 112,370 | 4,681,498 | |||||||||
| Property, plant and equipment, net | 78,978,674 | 80,986,881 | 3,374,031,621 | |||||||||
| Intangible assets, net | 1,307,186 | 1,307,720 | 54,481,523 | |||||||||
| Investment in associates | 1,214,938 | 1,213,504 | 50,556,347 | |||||||||
| Other investments | 937,268 | 937,268 | 39,047,952 | |||||||||
| 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 | |||||||||
| Other non-current assets | 5,525,364 | 6,145,020 | 256,010,499 | |||||||||
| Total non-current assets | 96,110,293 | 98,500,102 | 4,103,657,959 | |||||||||
| TOTAL ASSETS | 146,453,543 | 145,566,596 | 6,064,516,769 | |||||||||
| (1) | As adjusted to reflect the historical financial statements of VinES acquired on January 19, 2024. |
2
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) | (Unaudited) | ||||||||||
| 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 | 11,976,739 | 7,688,438 | 320,311,544 | |||||||||
| Deposits and down-payment from customers | 870,626 | 663,849 | 27,656,918 | |||||||||
| Short-term deferred revenue | 149,747 | 146,495 | 6,103,195 | |||||||||
| Short-term accruals | 11,431,959 | 10,541,709 | 439,182,977 | |||||||||
| Other current liabilities | 13,973,704 | 14,143,625 | 589,244,053 | |||||||||
| Current operating lease liabilities | 1,524,356 | 1,540,230 | 64,168,229 | |||||||||
| Amounts due to related parties | 49,334,224 | 56,856,137 | 2,368,709,620 | |||||||||
| Total current liabilities | 151,633,927 | 159,600,839 | 6,649,203,808 | |||||||||
| 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 | 2,220,295 | 2,930,699 | 122,097,196 | |||||||||
| Non-current operating lease liabilities | 5,330,344 | 5,171,218 | 215,440,487 | |||||||||
| Long-term deferred revenue | 1,600,469 | 1,763,294 | 73,461,401 | |||||||||
| Deferred tax liabilities | 1,014,658 | 987,819 | 41,153,981 | |||||||||
| Long-term accruals | 123,867 | 179,371 | 7,472,858 | |||||||||
| Amounts due to related parties | 19,551,353 | 30,114,664 | 1,254,620,839 | |||||||||
| Total non-current liabilities | 60,148,192 | 65,971,912 | 2,748,486,106 | |||||||||
| 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 | (190,419,805 | ) | (205,239,009 | ) | (8,550,556,555 | ) | ||||||
| Additional paid-in capital | 38,258,500 | 38,370,811 | 1,598,583,969 | |||||||||
| Other comprehensive loss | (385,874 | ) | (348,292 | ) | (14,510,353 | ) | ||||||
| Deficit attributable to equity holders of the parent | (142,699,643 | ) | (157,354,547 | ) | (6,555,620,006 | ) | ||||||
| Non-controlling interests | 77,371,067 | 77,348,392 | 3,222,446,861 | |||||||||
| Total deficit | (65,328,576 | ) | (80,006,155 | ) | (3,333,173,145 | ) | ||||||
| TOTAL DEFICIT AND LIABILITIES | 146,453,543 | 145,566,596 | 6,064,516,769 | |||||||||
| (1) | As adjusted to reflect the historical financial statements of VinES acquired on January 19, 2024. |
3
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) | (Unaudited) | ||||||||||
| Revenues | ||||||||||||
| Sales of vehicles | 1,529,758 | 6,492,833 | 270,500,896 | |||||||||
| 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 | 7,264,467 | 302,648,294 | |||||||||
| Cost of vehicles sold | (4,821,526 | ) | (10,064,701 | ) | (419,310,128 | ) | ||||||
| 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 | (5,362,702 | ) | (10,883,950 | ) | (453,441,237 | ) | ||||||
| Gross loss | (3,397,937 | ) | (3,619,483 | ) | (150,792,943 | ) | ||||||
| Operating expenses | ||||||||||||
| Research and development costs | (5,154,121 | ) | (2,626,801 | ) | (109,436,362 | ) | ||||||
| Selling and distribution costs | (1,277,859 | ) | (1,982,864 | ) | (82,609,007 | ) | ||||||
| Administrative expenses | (1,215,608 | ) | (1,344,055 | ) | (55,995,292 | ) | ||||||
| Net other operating expenses | 66,872 | (550,441 | ) | (22,932,175 | ) | |||||||
| Operating loss | (10,978,653 | ) | (10,123,644 | ) | (421,765,779 | ) | ||||||
| Finance income | 160,395 | 28,449 | 1,185,227 | |||||||||
| Finance costs | (2,864,720 | ) | (4,162,257 | ) | (173,405,699 | ) | ||||||
| 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 | (14,351,632 | ) | (14,868,716 | ) | (619,452,402 | ) | ||||||
| Tax income/(expense) | 6,510 | 26,839 | 1,118,152 | |||||||||
| Net loss for the period | (14,345,122 | ) | (14,841,877 | ) | (618,334,250 | ) | ||||||
| Net loss attributable to non-controlling interests | (28,840 | ) | (22,673 | ) | (944,590 | ) | ||||||
| Net loss attributable to controlling interest | (14,316,282 | ) | (14,819,204 | ) | (617,389,660 | ) | ||||||
| (1) | As adjusted to reflect the historical financial statements of VinES acquired on January 19, 2024. |
4
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) | (Unaudited) | ||||||||||
| Net loss for the period | (14,345,122 | ) | (14,841,877 | ) | (618,334,250 | ) | ||||||
| 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 | 1,565,638 | ||||||||
| Net other comprehensive (loss)/income that will be reclassified to profit or loss in subsequent periods | (18,824 | ) | 37,580 | 1,565,638 | ||||||||
| Total comprehensive loss for the period, net of tax | (14,363,946 | ) | (14,804,297 | ) | (616,768,612 | ) | ||||||
| Net loss attributable to non-controlling interests | (28,840 | ) | (22,673 | ) | (944,590 | ) | ||||||
| Comprehensive loss attributable to controlling interest | (14,335,106 | ) | (14,781,624 | ) | (615,824,022 | ) | ||||||
| Net loss per share attributable to ordinary shareholders | VND | VND | USD | |||||||||
| Basic and diluted | (6,224 | ) | (6,339 | ) | (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 to reflect the historical financial statements of VinES acquired on January 19, 2024. |
5
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) | (Unaudited) | ||||||||||
| OPERATING ACTIVITIES | ||||||||||||
| Net loss for the year | (14,345,122 | ) | (14,841,877 | ) | (618,334,250 | ) | ||||||
| Adjustments to reconcile net loss to net cash flows: | ||||||||||||
| Depreciation of property, plant and equipment | 1,170,930 | 2,009,490 | 83,718,285 | |||||||||
| Amortization of intangible assets | 56,268 | 90,080 | 3,752,864 | |||||||||
| 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 | 3,145,854 | 2,610,649 | 108,763,446 | |||||||||
| Deferred income tax expenses | (6,510 | ) | (26,839 | ) | (1,118,152 | ) | ||||||
| Unrealized foreign exchange (gain)/losses | (87,585 | ) | 379,399 | 15,806,316 | ||||||||
| Shares of profit/(loss) of associates, joint-ventures | (2,809 | ) | 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 | 797,405 | 806,554 | 33,602,216 | |||||||||
| Share-based compensation expenses | - | 47,880 | 1,994,751 | |||||||||
| Change in working capital: | ||||||||||||
| Trade receivables, advance to suppliers, net investment in sales-type lease | 1,735,994 | (1,110,933 | ) | (46,283,090 | ) | |||||||
| Inventories | (6,439,908 | ) | 1,093,508 | 45,557,139 | ||||||||
| Trade payables, deferred revenues and other payables | (1,628,300 | ) | (4,171,500 | ) | (173,790,776 | ) | ||||||
| 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 | (14,633,691 | ) | (12,409,099 | ) | (516,981,169 | ) | ||||||
| (1) | As adjusted to reflect the historical financial statements of VinES acquired on January 19, 2024. |
6
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) | (Unaudited) | ||||||||||
| INVESTING ACTIVITIES | ||||||||||||
| Purchase of property, plant and equipment, and intangible assets (including deposit paid under construction contracts) | (6,207,073 | ) | (4,807,718 | ) | (200,296,546 | ) | ||||||
| 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 | ) | - | - | ||||||||
| Receipt from government grants | - | 509,821 | 21,239,887 | |||||||||
| Net cash flows used in investing activities | (16,489,977 | ) | (4,297,897 | ) | (179,056,660 | ) | ||||||
| FINANCING ACTIVITIES | ||||||||||||
| Deemed contribution from owners | - | 74,904 | 3,120,610 | |||||||||
| Payment for initial public offering costs | - | (10,252 | ) | (427,113 | ) | |||||||
| Proceeds from borrowings, business cooperation contract and convertible debenture | 45,127,185 | 24,627,697 | 1,026,025,788 | |||||||||
| Repayment of borrowings | (13,930,673 | ) | (9,190,698 | ) | (382,897,888 | ) | ||||||
| Net cash flows from financing activities | 31,196,512 | 15,501,651 | 645,821,397 | |||||||||
| Net increase in cash, cash equivalents and restricted cash | 72,844 | (1,205,345 | ) | (50,216,431 | ) | |||||||
| Cash, cash equivalents and restricted cash at January 1 | 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 December 31 | 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 to reflect the historical financial statements of VinES acquired on January 19, 2024. |
7
Part II – First Quarter 2024 Financial Results and Business Update
Financial Results for the First Quarter of 2024
Revenues
| · | Total revenues were VND7,264,467 million (US$302.6 million) in the first quarter of 2024, representing an increase of 269.7% from the first quarter of 2023 and a decrease of 31.0% from the fourth quarter of 2023. Total revenues are primarily comprised of revenue from EV sales. |
| · | Vehicle sales were VND6,492,833 million (US$270.5 million) in the first quarter of 2024, representing an increase of 324.4% from the first quarter of 2023 and a decrease of 31.6% from the fourth quarter of 2023. Revenue growth from the first quarter of 2023 was driven by an increase in EVs sale volumes thanks to our growth in both domestic and overseas markets The decrease over the fourth quarter of 2023 was attributed to a decrease in EVs and e-scooters sales volumes due to low season and Lunar New Year in Vietnam. |
Cost of Sales and Gross Margin
| · | Cost of sales was VND10,883,950 million (US$453.4 million) in the first quarter of 2024, representing an increase of 103.0% from the first quarter of 2023 and a decrease of 27.7% from the fourth quarter of 2023. The increase over the first 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 first quarter of 2024. The decrease over the fourth quarter of 2023 was attributed to a decrease in the cost of EVs and e-scooter sold due to anticipated decrease in sale volumes during low season. |
| · | Gross loss was VND3,619,483 million (US$150.8 million) in the first quarter of 2024, representing an increase of 6.5% from the first quarter of 2023 and a decrease of 20.1% from the fourth quarter of 2023. |
| · | Gross margin was negative (49.8%) in the first quarter of 2024, as compared to negative (172.9%) in the first quarter of 2023 and negative (43.0%) in the fourth quarter of 2023. The improvement of gross margin over the first quarter of 2023 was attributed to increased sales and improved costs. Due to low seasonal sales, gross margin in the first quarter of 2024 was lower compared to the fourth quarter of 2023, mostly driven by depreciation. |
Operating Expenses
| · | Research and development (R&D) costs were VND2,626,801 million (US$109.4million) in the first quarter of 2024, representing a decrease of 49.0% from the first quarter of 2023 and a decrease of 16.2% from the fourth quarter of 2023. The decrease over the first quarter of 2023 and fourth quarter of 2023 is in line with three of our EV models, the VF 5, VF6 and VF7, progressing from the development stage to commercial production in the last four quarters. |
| · | Selling, general and administrative expenses were VND3,326,919 million (US$138.6 million) in the first quarter of 2024, representing an increase of 33.4% from the first quarter of 2023 and was flat versus the fourth quarter of 2023. The increase over the first quarter of 2023 was primarily attributable to an increase in selling and marketing expenses as a result of our efforts to scale up sales and administrative operations in overseas markets. The increase was partially offset by a decrease in impairment charges for batteries leasing activities. |
| · | Net other operating expenses were VND550,441 million (US$22.9 million) in the first quarter of 2024, representing an increase in net expenses of 923.1% from the net income of the first quarter of 2023 and a decrease of 47.1% from the net expenses of the fourth quarter of 2023. The increase in net expenses over the first quarter of 2023 was mainly due to an increase in foreign exchange losses. The decrease in net expenses over the fourth quarter of 2023 was mainly due to a decrease in expenses in connection with discontinued projects and was partially offset by an increase in foreign exchange losses. |
Loss from Operations
| · | Loss from operations was VND10,123,644 million (US$421.8million) in the first quarter of 2024 representing a decrease of 7.8% from the first quarter of 2023 and a decrease of 15.4% from the fourth quarter of 2023. |
Net Loss and Net Loss Per Share
| · | Net loss on financial instruments at fair value through profit or loss was VND609,830 million (US$25.4 million) in the first quarter of 2024, representing a decrease of 9.2% from net loss of the first quarter of 2023 and a decrease of 41.3% from net loss of the fourth quarter of 2023. The decrease over net loss of the first quarter of 2023 and the fourth 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, convertible debenture, and warrants. |
| · | Net loss was VND14,841,877 million (US$618.3 million) in the first quarter of 2024, representing an increase of 3.5% from the first quarter of 2023 and a decrease of 12.3% from the fourth quarter of 2023. |
| · | Net loss attributable to controlling interest was VND14,819,204 million (US$617.4 million) in the first quarter of 2024, representing an increase of 3.5% from the first quarter of 2023 and a decrease of 12.3% from the fourth quarter of 2023. |
| · | Basic and diluted net loss per ordinary share were both VND6,339.8 (US$0.26) in the first quarter of 2024, compared with VND6,224.5 (US$0.26) in the first quarter of 2023 and VND6,768.8 (US$0.28) in the fourth quarter of 2023. |
8
Balance Sheet
| · | Cash and cash equivalents were VND2,959,316 million (US$123.3 million) as of March 31, 2024. |
First Quarter 2024 Business Updates
| 1Q2024 | 4Q2023 | 1Q2023 | |
| EV Deliveries1 | 9,689 | 13,513 | 1,780 |
| E-scooters Deliveries | 6,632 | 24,309 | 9,757 |
| · | EV deliveries were 9,689 in the first quarter of 2024, representing a decrease of 28% from the fourth quarter of 2023 and an increase of 444% from the first quarter of 2023. |
| · | E-scooter deliveries were 6,632 in the first quarter of 2024, representing a decrease of 73% from the fourth quarter of 2023 and a decrease of 32% from the first quarter of 2023. |
| · | As of March 31, 2024, the Company had 119 showrooms globally for EVs and 235 showrooms and service workshops for e-scooters, including VinFast showrooms and dealer showrooms. |
Dealership in the US
| · | Since previously announced last quarter, we signed additional agreements with 10 dealers, bringing the total number of dealers signed to 16, spanning across 7 states: Connecticut, Florida, Kansas, Kentucky, New York, North Carolina, and Texas. |
| · | Sales operations for these newly added dealerships are expected to begin in the second quarter of 2024. |
Sales of VinFast Drgnfly
| · | After its debut at CES in January 2024, the VinFast DrgnFly electric bikeis set to hit the market in late April with a listed price of $2,599. |
| · | Customers in the U.S. can now place orders the VinFast DrgnFly through the Company’s extensive dealer network. |
New Product Delivery
| · | Following its launch in December 2023, the VF 7, VinFast’s C-segment EV model, commenced deliveries to initial customers in Vietnam in late March 2024. The model is expected to be shipped and delivered to other markets in the same year. |
| · | The first batch of VF 9, VinFast’s E-segment EV model, is set to arrive in the U.S in April and will be ready for deliveries between late quarter two and early quarter three of 2024. |
| · | The 4-seat mini eSUV, VF 3, is on track for domestic delivery by the end of 2024. |
Progress on market expansion
| · | In Indonesia, the Company has signed with 5 dealership partners, with the first VinFast store opened on April 2. In addition, we have commenced sales of the right-hand drive configuration of the VF e34, with a starting list price of IDR 315,000,000 (battery-exclusive). |
| · | In Thailand, at the Bangkok International Motor Show (BIMS), the Company announced signing of Letter of Intent (LOI) with 15 initial dealers. |
| · | In the Middle East, the Company signed a dealer sales agreement for the distribution of electric vehicles in the Oman market. The inaugural store is anticipated to open in mid-2024, with vehicle sales commencing shortly thereafter. |
Establishment of V-Green
| · | In March 2024, V-Green, which is 90% owned by Mr. Pham Nhat Vuong (the Founder of VinFast), was established to further the global expansion of charging network that support VinFast’s growth. |
| · | V-Green will provide EV charging infrastructure and management services to VinFast’s customers and assume responsibility for engaging third-party charging station suppliers to establish and expand networks in key markets around the world. |
Related Party Transactions
| · | Out of 9,689 EVs delivered in the first quarter of 2024, 56% were to related parties of the Company. |
| · | Out of the 6,632 e-scooters delivered in the first quarter of 2024, 24% were to related parties of the Company. |
1 Includes VF e34, VF 5, VF 6, VF 8, VF 9 and e-bus
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Part III – Extension and Redemption of Exchangeable Bonds by Parent Company
On April 12, 2024, our parent company, Vingroup Joint Stock Company (“Vingroup”), reached an agreement with certain institutional investors (the “EB Investors”) to partially redeem and amend its $625.0 million aggregate principal amount of exchangeable bonds (the “Exchangeable Bonds”), which are exchangeable for ordinary shares of VinFast Auto Ltd. (our “Company” or “VinFast”).
Under the terms of a deed of amendment and supplement (the “Extension Deed of Amendment”) between Vingroup and the EB Investors, among other things, Vingroup will redeem 50% of the Exchangeable Bonds held by each EB Investor and the remaining principal will be subject to scheduled partial redemptions. The amendments and partial redemption will take effect upon the satisfaction of various conditions precedent, which is anticipated to occur on or before May 17, 2024. The Exchangeable Bonds are scheduled to mature on May 10, 2027.
Each EB Investor is entitled to exchange its Exchangeable Bonds for VinFast ordinary shares pursuant to, and at a rate of exchange determined by, a deed poll dated April 29, 2022 (as amended and/or supplemented from time to time, the “Deed Poll” and the “Deed Poll Exchange Rights”) between February 29, 2024 to April 13, 2027. In connection with the Extension Deed of Amendment, we entered into a supplemental deed poll on April 12, 2024 (the “Extension Supplemental Deed Poll”), pursuant to which, among other things, the rate of exchange will be reset to 100,000 ordinary shares in our Company for each $1 million of Exchangeable Bonds with effect from the effective date of the Extension Deed of Amendment, subject to further scheduled reset and adjustment upon the occurrence of certain customary events.
This Form 6-K shall be deemed to be incorporated by registration statement on Form S-8 (File No. 333-278251) of the Company (including any prospectuses forming a part of such registration statement) and to be a part thereof from the date on which this report is furnished, to the extent not superseded by documents or reports subsequently filed or furnished.
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