Written by Cláudio Afonso | LinkedIn | X
Vietnamese electric vehicle (EV) maker VinFast filed on Monday a form with the SEC announcing it is restating its financial statements for the year ended December 31, 2023, and the first quarter of 2024 due to identified accounting errors.
The company’s revenue, selling and distribution costs, and net loss for fiscal year 2023 were overstated in 3 different areas by approximately $33.9 million, $6.1 million, and $1.8 million.
As a result, the company added that its previously issued consolidated financial statements, unaudited condensed consolidated financial statements, and related financial information should not be relied upon.
Regarding the sale to GSM Green and Smart Mobility Joint Stock Company, which was overstated by $33.9 million, VinFast explained that invoiced the sale of 454 electric vehicles (EVs) and 2,192 e-scooters in fiscal year 2023.
However, delivery began in early 2024, meaning the revenue should not have been recognized in 2023. This resulted in an overstatement of revenue by approximately $17.2 million.
Regarding to the sale of 205 EVs to an unrelated third party last year, VinFast stated that most of vehicles were returned for a software update and redelivered in 2024.
Therefore, revenue should not have been recorded in 2023, overstating revenue by approximately $10.5 million.
Regarding Revenue overstatement, the total overstatement of revenue due to these errors is approximately $27.7 million. Out of this, $15.7 million is expected to be recognized in the first quarter of 2024, with the remaining amount expected to be recognized throughout 2024, according to VinFast
The company added that an additional adjustment of $6.1 million will be made to reclassify after-sales policy expenses from selling and distribution costs to a reduction in revenue. VinFast clarified that this adjustment does not impact the net loss for fiscal year 2023.
After completing an internal review, the EV maker will re-publish the financial statements for the fiscal year ended December 31, 2023, and the first quarter of 2024.
According to the company, Ernst & Young Vietnam is conducting an AS 4105 review of the interim financial information for the period ended June 30, 2024, with results expected to be announced by mid-September 2024.
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Written by Cláudio Afonso | LinkedIn | X
