| FAIR VALUE HIERARCHY |
13.FAIR VALUE HIERARCHY A.Fair value of financial instruments that are carried at fair value The fair value of financial assets and liabilities by classes that are carried at fair value are as follows: | | | | | | | | | | | As of December 31, 2024 | | | Quoted prices in | | | | Significant | | | | | active markets for | | Significant other | | unobservable | | | | | identical instruments | | observable inputs | | inputs | | Total | | | (Level 1) | | (Level 2) | | (Level 3) | | | | | VND million | | VND million | | VND million | | VND million | Financial assets: | | | | | | | | | Financial assets at fair value through profit or loss | | | | | | | | | - Derivative assets — cross-currency interest rate swaps contracts (i) | | — | | — | | 185,787 | | 185,787 | - Other investments (ii) | | — | | — | | 918,040 | | 918,040 | In which: | | | | | | | | | Non-current portion | | — | | — | | 918,040 | | 918,040 | Current portion | | — | | — | | 185,787 | | 185,787 | As of December 31, 2024 | | — | | — | | 1,103,827 | | 1,103,827 | Financial liabilities: | | | | | | | | | Financial liabilities at fair value through profit or loss | | | | | | | | | - Financial liabilities in respect of DPS2 (Note 14) | | — | | — | | 21,619,612 | | 21,619,612 | - Warrant liability | | 36,326 | | — | | — | | 36,326 | In which: | | | | | | | | | Non-current portion | | 36,326 | | — | | — | | 36,326 | Current portion | | — | | — | | 21,619,612 | | 21,619,612 | As of December 31, 2024 | | 36,326 | | — | | 21,619,612 | | 21,655,938 |
13.FAIR VALUE HIERARCHY (continued) A.Fair value of financial instruments that are carried at fair value (continued) The fair value of financial assets and liabilities by classes that are carried at fair value are as follows (continued): | | | | | | | | | | | | | As of June 30, 2025 | | | Quoted prices in | | | | Significant | | | | | | | active markets for | | Significant other | | unobservable | | | | | | | identical instruments | | observable inputs | | inputs | | Total | | Total | | | (Level 1) | | (Level 2) | | (Level 3) | | | | | | | VND million | | VND million | | VND million | | VND million | | USD | Financial assets: | | | | | | | | | | | Financial assets at fair value through profit or loss | | | | | | | | | | | - Other investments (ii) | | — | | — | | 918,040 | | 918,040 | | 36,645,378 | In which: | | | | | | | | | | | Non-current portion | | — | | — | | 918,040 | | 918,040 | | 36,645,378 | Current portion | | — | | — | | — | | — | | — | As of June 30, 2025 | | — | | — | | 918,040 | | 918,040 | | 36,645,378 | Financial liabilities: | | | | | | | | | | | Financial liability at fair value through profit or loss | | | | | | | | | | | - Financial liabilities in respect of DPS2 (Note 14) | | — | | — | | 23,351,952 | | 23,351,952 | | 932,139,230 | - Derivative liabilities - cross-currency interest rate swaps contract (i) | | — | | — | | 147,686 | | 147,686 | | 5,895,178 | - Warrant liability | | 24,018 | | — | | — | | 24,018 | | 958,726 | In which: | | | | | | | | | | | Non-current portion | | 24,018 | | — | | — | | 24,018 | | 958,726 | Current portion | | — | | — | | 23,499,638 | | 23,499,638 | | 938,034,408 | As of June 30, 2025 | | 24,018 | | — | | 23,499,638 | | 23,523,656 | | 938,993,134 |
13.FAIR VALUE HIERARCHY (continued) A.Fair value of financial instruments that are carried at fair value (continued) Reconciliations of significant liabilities categorized within Level 3 under the fair value hierarchy are as follow: | | | | | | | | | | | Net change in unrealized | | | | | As of | | fair value recognized in | | As of | | | January 1, | | consolidated statements | | June 30, | | | 2024 | | of operations | | 2024 | | | VND million | | VND million | | VND million | Financial assets: | | | | | | | Financial assets at fair value through profit or loss | | | | | | | - Derivative asset — cross-currency interest rate swaps contract (i) | | 614,134 | | 258,723 | | 872,857 | - Other investments (ii) | | 918,040 | | — | | 918,040 | In which: | | | | | | | Non-current portion | | 984,164 | | (66,124) | | 918,040 | Current portion | | 548,010 | | 324,847 | | 872,857 | Financial liabilities: | | | | | | | Financial liability at fair value through profit or loss | | | | | | | - Financial liabilities in respect of DPS2 (Note 14) | | 18,258,063 | | 2,125,226 | | 20,383,289 | - Convertible debenture | | 1,190,475 | | 108,997 | | 1,299,472 | In which: | | | | | | | Non-current portion | | — | | — | | — | Current portion | | 19,448,538 | | 2,234,223 | | 21,682,761 |
13.FAIR VALUE HIERARCHY (continued) A.Fair value of financial instruments that are carried at fair value (continued) Reconciliations of significant liabilities categorized within Level 3 under the fair value hierarchy are as follows (continued): | | | | | | | | | | | | | Net change in unrealized | | | | | | | As of | | fair value recognized in | | As of | | As of | | | January 1, | | consolidated statements | | June 30, | | June 30, | | | 2025 | | of operations | | 2025 | | 2025 | | | VND million | | VND million | | VND million | | USD | Financial assets: | | | | | | | | | Financial assets at fair value through profit or loss | | | | | | | | | - Derivative asset — cross-currency interest rate swaps contract (i) | | 185,787 | | (185,787) | | — | | — | - Other investments (ii) | | 918,040 | | — | | 918,040 | | 36,645,378 | In which: | | | | | | | | | Non-current portion | | 918,040 | | — | | 918,040 | | 36,645,378 | Current portion | | 185,787 | | (185,787) | | — | | — | Financial liabilities: | | | | | | | | | Financial liability at fair value through profit or loss | | | | | | | | | - Financial liabilities in respect of DPS2 (Note 14) | | 21,619,612 | | 1,732,340 | | 23,351,952 | | 932,139,230 | - Derivative liabilities - cross-currency interest rate swaps contract (i) | | — | | 147,686 | | 147,686 | | 5,895,160 | In which: | | | | | | | | | Non-current portion | | — | | — | | — | | — | Current portion | | 21,619,612 | | 1,880,026 | | 23,499,638 | | 938,034,390 |
| (i) | The Group entered into non-transferable cross-currency interest rate swap (“CCIRS”) contracts with financial institutions for syndicated loans No.1. Under the terms of the CCIRS contracts, the maximum Group will receive floating interests based on outstanding USD notional amount every interest payment date, and in turn will pay fixed interest for such loans based on the outstanding VND notional amount. In addition, at each principal repayment date, the Group will pay a fixed amount in VND based on the USD-VND exchange rate for such loans at inception of the CCIRS for receiving notional amount in USD with the financial institutions. The outstanding notional amounts of the Group’s derivative instruments were equal the carrying value of syndicated loans No.1 as disclosed in Note 8. |
As of June 30, 2025, the total net amount of fair value of the CCIRS derivative assets was nil (as of December 31, 2024: VND185.8 billion), the total net amount of fair value of the CCIRS derivative liabilities was VND147.7 billion (as of December 31, 2024: nil). The Group opted not to designate the CCIRS under hedge accounting therefore, the whole fair value change was charged to the consolidated statement of operations. Net change in fair value of CCIRS derivative instruments for the six months ended June 30, 2025 was recorded as net loss on financial instruments at fair value through profit or loss in the consolidated statement of operations. | (ii) | As of 30 June 2025, the Group has 3.75% voting shares in Storedot Ltd., equivalent to 2,219,970 series D preference shares of this company which was invested in December 2021. |
13.FAIR VALUE HIERARCHY (continued) B.Valuation processes Valuation methods and assumptions The following methods and assumptions were used for the estimation of recurring fair value measurements categorized within Level 3 of the fair value hierarchy: | ► | The significant unobservable inputs used in the fair value measurements categorized within Level 3 of the fair value hierarchy as of June 30, 2025 and as of December 31, 2024 are shown below: |
| | | | | | | | | | | Valuation | | | | Significant unobservable | | Rate | Item | | technique | | Valuation date | | inputs | | (%/annum) | CCIRS contract of the loan No.1 | | Discounted Cash Flow
(“DCF”) | | December 31, 2024 | | Interpolated SOFR for
subsequent years | | 4.45 | | | | | June 30, 2025 | | Interpolated SOFR for
subsequent years | | 3.45 - 4.45 | Financial liabilities in respect of DPS2 (*) | | Binomial option pricing model – Lattice model and Available Market Price (AMP) | | December 31, 2024 | | Credit spread of the Company | | 13.6 | | | | | | | Probability of expected events & expected exercise date | | | | | | | | | Volatility | | 62.6% | | | | | June 30, 2025 | | Credit spread of the Company | | 13.6 | | | | | | | Probability of expected events & expected exercise date | | | | | | | | | Volatility | | 69.22% | Other investments (ii) | | Option Pricing Model | | December 31, 2024 | | Volatility | | 53.8% - 90.8% | | | | | | | Risk free rate | | 2.5% | | | | | June 30, 2025 | | Volatility | | 53.8% - 90.8% | | | | | | | Risk free rate | | 2.5% |
| (*) | The Group has never declared or paid any cash dividends on its ordinary shares, and the Group does not anticipate any dividend payments in the foreseeable future. The expected volatility at valuation date is estimated based on historical volatilities of comparable companies. |
An increase/decrease in the credit spread of the Company would result in a decrease/increase in fair value of the financial liabilities in respect of DPS2. The Company remeasured DPS1 and DPS4 at fair value as of the date the terms and conditions of these DPSs were amended (i.e., 31 December 2024) in accordance with Share Exchange Agreements (Note 14). The following methods and assumptions were used for the non-recurring fair value measurements categorized within Level 3 of the fair value hierarchy: | | | | | | | | | Item | | Valuation technique | | Valuation date | | Significant unobservable inputs | | Rate (%/annum) | Equity instrument in respect of DPS1 and DPS4 | | Binomial option pricing model – Lattice model | | December 31, 2024 | | Credit spread of the Company | | 13.6 | | | | | | | Volatility | | 62.6% | | | | | | | Risk free rate | | 3.934 – 4.119 |
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