Wuling Electric Vehicle Distributor: Large Accumulated Losses, Stocks Put on Warning List

TMT Motors Company’s shares continue to be listed as a violation on the stock exchange. This company attracted attention when it became the distributor of Chinese Wuling electric vehicles in Vietnam.

Wuling HongGuang Mini EV car in TMT Motors' Hung Yen factory campus - Photo: DUC LAM

In order to protect investors' interests, the Ho Chi Minh City Stock Exchange (HoSE) has just decided to continue to put TMT Motors Corporation's shares on the warning list, in the context of somewhat improved business results but still suffering from large accumulated losses.

Stocks warned, TMT Motors still sinks in accumulated losses

Based on the audited consolidated financial report, in the first half of 2025, TMT Motors earned more than VND 1,235 billion in net revenue, down more than 7% over the same period last year. After deducting cost of goods sold and expenses, the company made a profit of nearly VND 55 billion, a significant improvement over the loss in the same period last year.

However, due to the previous period of declining business, the total accumulated loss is still negative at over VND215 billion. With this development, TMT shares continue to be put on the warning list by HoSE.

In addition to objective reasons, the business side shared that it also had many internal limitations in the past year such as: ineffective sales activities, agents not providing good after-sales service, the market has not been expanded, product displays are not complete, and customer search activities are still passive.

Along with that is the lack of long-term sales strategy and failure to grasp regional tastes, causing sales to continue to decline and market share to narrow...

To overcome accumulated losses, the company is making efforts to implement many measures such as cutting losses, clearing inventories, restructuring exporters, developing new products that meet the European Union's emission standards - Euro 5... Particularly in the electric vehicle segment, TMT Motors has agreed with its partners to choose models suitable for the Vietnamese market, with more competitive prices.

Looking for ways to sell more Chinese electric cars to the Vietnamese market

TMT Motors is currently the distributor of Wuling electric vehicles (China) in Vietnam. According to its annual report, the company believes that Vietnam will soon become the leading potential electric vehicle market in Southeast Asia, and from there, it has built a medium and long-term strategy to anticipate this trend.

To do so, TMT Motors has signed a comprehensive cooperation agreement with SAIC GM Wuling Automobile Co., Ltd - the global leader in electric vehicle production and sales, the largest in China in the period 2021-2024. The assembly line has been completed, producing more than 1,392 electric vehicles in the past year. In addition, the company is promoting tax incentives and building an electric vehicle factory in Hung Yen.

In 2025, the company plans to develop a system of 3S standard showrooms and experience stores (Sales - Service - Spare parts) in many provinces and cities.

At the same time, the truck segment still holds its core position, with the goal of launching high-quality, competitively priced heavy and light trucks in the next 5 years to consolidate its position in Vietnam.

After the restructuring phase to prepare for the new business cycle, the company plans to sell 8,075 vehicles in 2025, with revenue of VND3,838 billion and profit of VND297 billion, thereby overcoming accumulated losses in the previous period.

On the stock market, TMT code is currently in the red at 11,800 VND/share, down approximately 10% in the past month, but still up about 55% in the past year.

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Source: https://tuoitre.vn/nha-phan-phoi-xe-dien-wuling-lo-luy-ke-lon-co-phieu-bi-dua-vao-dien-canh-bao-20250823131246976.htm