While Hang Xanh Auto Services Joint Stock Company (Haxaco, stock code HAX) is plummeting due to fierce competition in the luxury car market, Giai Phong Auto Joint Stock Company (UPCoM: GGG) continues to sink deeper into difficulties with 11 consecutive quarters of losses and negative equity.
Haxaco's profits "evaporate" due to competition and costs
As the first authorized distributor of Mercedes-Benz in Vietnam, Haxaco had a difficult business quarter. According to the consolidated financial report, Haxaco's net revenue in the third quarter of 2025 reached VND 1,149.5 billion, down 25% compared to the same period in 2024. After deducting the cost of goods sold, the company recorded a loss after tax of VND 25.78 billion, a complete reversal from the profit of more than VND 90 billion in the same period last year.
Accumulated in the first 9 months of 2025, consolidated revenue reached 3,137 billion VND, down 15%. Profit after tax was only 1.01 billion VND, down 99% compared to 144 billion VND in the first 9 months of 2024.
In a written explanation to the State Securities Commission, Haxaco said that its business results had declined sharply due to many reasons. The luxury car segment continued to be affected by the trend of tightening consumer spending. At the same time, increased competitive pressure from other high-end brands and a series of deep discount programs in the market had significantly narrowed profit margins. In addition, increased interest expenses and operating costs due to expansion also negatively impacted the company's profits.
GGG lost 11 consecutive quarters
The business situation of Giai Phong Auto Corporation (UPCoM: GGG) is even more dire as it continues its long losing streak.
In the third quarter of 2025, GGG recorded net revenue of nearly VND52 billion. However, the gross profit of VND983 million was not enough to offset financial, sales and management expenses, resulting in a loss after tax of nearly VND2 billion. This is the company's 11th consecutive quarter of losses since 2023.
In the first 9 months of the year, GGG had a cumulative loss after tax of nearly 11 billion VND. Notably, as of September 30, 2025, the company's total accumulated loss had reached nearly 357 billion VND, causing negative equity of 62 billion VND.
Despite the difficult financial situation, GGG's extraordinary general meeting of shareholders on September 18 approved an ambitious plan: investing VND200 billion to upgrade the Giai Phong automobile factory in Thanh Thuy Border Gate Economic Zone, Tuyen Quang province.
To raise capital for the project, GGG plans to privately offer 20 million shares at VND10,000/share to strategic investors and professional securities investors, expecting to collect VND200 billion. This is considered a "vital" step for Giai Phong Auto in its efforts to revive its business activities.
Source: https://doanhnghiepvn.vn/doanh-nhan/haxaco-va-o-to-giai-phong-bao-lo/20251014050330266
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