What does TMT Auto explain about its stock price continuously hitting the ceiling?

On January 1, 2025, TMT Automobile Joint Stock Company (HoSE: TMT) announced information on "Explanation of TMT stock price increasing to the ceiling for 5 consecutive sessions" according to the request for explanation No. 1975/SGDHCM-GS dated December 31, 2024 of the Ho Chi Minh City Stock Exchange.

On the stock exchange, TMT's stock price increased from VND7,030/share (session 24/12) to VND9,840/share (session 31/12), an increase of nearly 40% after 5 consecutive ceiling sessions. At the end of the session on January 2, 2025, the market price of this stock increased to the ceiling of VND10,500/share, reaching the highest level in more than 5 months. This is the 6th consecutive session that this stock has worn a "purple shirt".

Therefore, on December 31, 2024, Ho Chi Minh City Stock Exchange (HoSE) requested TMT to explain the above unusual stock fluctuations.

In the explanatory document, TMT said that the stock price increased to the ceiling for 5 consecutive sessions (from December 25, 2024 to December 31, 2024) due to market demand and beyond the Company's control. The Company's business activities are still within the plan and are taking place normally.

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The company also said that in 2024, TMT has implemented a policy of clearing inventory, restructuring all products from production to consumption. At the same time, TMT has focused all resources and human resources to reduce prices, cut losses, and clear all inventory from many years ago, leading to the Company's production and business results in 2024 being a huge loss that TMT has never encountered.

However, the Board of Directors of the Company 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 and business operations of the Company is the right thing to do to ensure the rights of shareholders and employees of the Company as well as to implement the Company's long-term strategic goals in the future.

By December 31, 2024, the Company has basically completed and effectively implemented all of the above restructuring contents, regaining the trust of consumers as well as agents and preparing resources for the new production and business cycle starting from the second quarter of 2025.

TMT affirms its commitment to not have any impact on stock prices recently and commits to comply with the provisions of the Law for listed companies.

In a related development, TMT recently announced the Board of Directors' resolution approving the 2025 business plan.

Accordingly, TMT plans to sell more than 8,075 vehicles in 2025, of which light trucks (3,456 units) and electric vehicles (3,404 units) are the two main products. The revenue target (excluding VAT) is nearly VND 3,839 billion, pre-tax profit is nearly VND 300 billion.

In addition, the Board of Directors also approved the divestment of all capital contributions at Construction Mechanical and Design Consulting Joint Stock Company 30-4. This is a subsidiary in which TMT owns 94.34% of the capital, equivalent to a capital contribution of more than 51 billion VND.