Record loss in 2024, an auto company restructures

DNVN - According to TMT Motors Corporation, in 2024, the company will focus all resources and human resources to reduce prices, cut losses, and release all inventory from many years ago, leading to the company's production and business results losing nearly 270 billion VND, a loss that TMT has never encountered.

On April 16, TMT Motors Joint Stock Company (TMT Motors, stock code: TMT) sent an official dispatch to the State Securities Commission (SSC) and Ho Chi Minh City Stock Exchange (HoSE) to explain and propose measures to overcome accumulated losses in 2024.

According to TMT's audited financial report for 2024, the company's undistributed profit after tax in 2023 was VND 55.2 billion, undistributed profit after tax in 2024 was negative VND 325.2 billion. Cumulative undistributed profit after tax was negative VND 269.9 billion.

As of December 31, 2024, TMT Motors' total assets decreased by 32.4% compared to the beginning of the year, down to more than VND 1,465 billion. Of which, inventories recorded nearly VND 485.4 billion, down 65.1% compared to the beginning of the year, accounting for 33.1% of total assets; cash and cash equivalents were more than VND 283.9 billion, up 882.35%, accounting for 19.37% of total assets. The company's total liabilities were nearly VND 1,353.4 billion, down 21.8% compared to the beginning of the year.

TMT Motors Corporation (TMT Motors) accumulated loss of nearly 270 billion VND in 2024.

Regarding the roadmap to overcome accumulated losses, TMT said that, with the goal of sustainable development, TMT Motors has made strong decisions to release all inventories, restructure exporters, and only accept exporters that meet TMT's professional after-sales service standards. TMT aims to be in the top 5 in terms of best after-sales service quality in Vietnam in the next 5 years.

At the same time, the enterprise will restructure all new products to Euro 5 standards in accordance with current regulations of the State and consumer needs. Inventory management, building Min - Max inventory according to actual market needs, ensuring optimal inventory turnover, working capital turnover... Managing and restructuring the entire production process with the goal of reducing costs by at least 25-30% to reduce production costs.

"From the above restructuring contents, the enterprise sees that in 2024, TMT will focus all resources and human resources to reduce prices, cut losses, and release all inventory from many years ago, leading to the company's 2024 production and business results suffering a huge loss that TMT has never encountered before," TMT stated.

However, TMT said that the Board of Directors is still determined to restructure the entire business operations of the company to prepare for the new production and business cycle starting from the first quarter of 2025. Restructuring the entire production operations of the company is the right thing to do to ensure the rights of shareholders, employees and to achieve the company's long-term strategic goals in the future.

TMK aims to sell 8,075 vehicles in 2025, with revenue of VND 3,838 billion, striving to overcome losses as quickly as possible in 2024.

According to the separate financial report for the accounting period ending March 31, 2025, announced by TMT Motors on April 14, revenue in the first quarter of 2025 reached VND 656 billion - an increase of 26.7% over the same period in 2024. After deducting expenses, profit after tax reached VND 34.5 billion, a sharp increase compared to the VND 4.1 billion recorded in the same period in 2024, equivalent to an increase of 741.4%.

Previously, according to HoSE's decision, TMT shares of TMT Motors were put on warning status from April 11, 2025 because TMT Motors' undistributed profit after tax as of December 31, 2024 on the audited consolidated financial statements for 2024 was negative VND 269.98 billion.

Regarding the business performance, TMT Motors plans to hold the 2025 Annual General Meeting of Shareholders on April 26 in Hanoi . Here, TMT will present to shareholders the reports of the Board of Directors on the 2024 business results, the 2025 business plan, the audited financial statements for 2024; the report of the Board of Directors for 2024, the direction of the 2025 business plan...

TMT Automobile Joint Stock Company, formerly known as Transport Mechanical Equipment and Materials Company, under the Mechanical Department ( Ministry of Transport ), was established in 1976. In 2006, the company changed to a joint stock company model with a charter capital of 25 billion VND. The company's headquarters is currently located at Coninco building, No. 4 Ton That Tung, Trung Tu ward, Dong Da district, Hanoi.

Thu An

Source: https://doanhnghiepvn.vn/kinh-te/chung-khoan/lo-ky-luc-trong-nam-2024-mot-doanh-nghiep-o-to-thuc-hien-tai-cau-truc/20250417091338269