# Financial Analysis of Vingroup Joint Stock Company (as of 31 December 2024)

## 1. Consolidated Balance Sheet Analysis (as of 31 December 2024)

### Key Highlights:
- **Total Assets:**
  - Vingroup’s total assets at the end of 2024 amounted to **VND 836,603.9 billion** (up from **VND 667,655.8 billion** at the beginning of the year).
  - A significant increase in both **current assets** and **non-current assets**, primarily driven by **long-term receivables** and **investments**.

- **Current Assets:**
  - Increased to **VND 396,479.9 billion** (from **VND 343,536.5 billion**), indicating a positive liquidity position.
  - **Cash and Cash Equivalents**: Increased by **VND 14.6 billion** to **VND 42,582.4 billion**, reflecting positive cash inflows.
  - **Receivables**: Increased substantially by **VND 21.9 billion**. This could indicate more credit sales but may also raise concerns about collectability or delays in payments.
  - **Inventories**: The company’s inventory increased by **VND 21.5 billion**, which could point to unsold products or slow-moving inventory. However, this increase is somewhat mitigated by a provision for obsolete inventory of **VND 12.98 billion**, signaling some concerns about stock turnover.

- **Non-Current Assets:**
  - Increased significantly to **VND 440,123.9 billion**, largely driven by **long-term receivables** (**VND 82.6 billion**) and **construction in progress** (**VND 113.4 billion**), likely tied to the ongoing real estate development projects.
  - **Investment Properties** decreased to **VND 13 billion**, possibly indicating some asset disposals or reclassification.
  - **Goodwill**: A notable increase in **Goodwill** (from **VND 492.6 billion** to **VND 4.5 billion**), which requires careful monitoring, as significant goodwill could indicate the purchase of subsidiaries at a premium, and could be at risk of impairment.

### Key Risks:
- **Receivables and Inventories**: An increase in these items can potentially indicate operational inefficiencies or poor cash flow management. You should monitor whether these receivables are fully recoverable and the inventory turnover rate.
- **Investment in Subsidiaries and Goodwill**: The company has increased its investment in subsidiaries and related companies, and there may be risks if these investments do not yield the expected returns.

## 2. Consolidated Income Statement (for the year ending 31 December 2024)

### Key Highlights:
- **Revenue**: The company’s **revenue from the sale of goods and services** increased significantly to **VND 189.1 billion**, up from **VND 161.4 billion**.
- **Gross Profit**: The **gross profit** of **VND 27.3 billion** shows an increase from **VND 23.5 billion**, representing good growth in margins.

- **Finance Income/Expenses**:
  - **Finance Income** surged to **VND 47.9 billion** (from **VND 20.5 billion**), indicating a strong return on investments or financial products.
  - **Finance Expenses** also increased to **VND 31.2 billion**, with significant interest costs (**VND 23 billion**) related to borrowings, reflecting the debt burden of the company.

- **Operating Profit**: The company managed to achieve an **operating profit** of **VND 11.7 billion**, a significant recovery from last year’s **operating loss** of **VND 4.9 billion**.

- **Net Profit**: The company reported a **net profit after tax** of **VND 5.3 billion**, a notable increase from **VND 2.1 billion** in 2023. Notably, the **profit attributable to shareholders of the parent company** is **VND 11.9 billion**, indicating the substantial contribution from the parent company’s operations.

### Key Risks:
- **Interest Expenses**: Despite the profit, the **finance expenses** remain high, particularly related to interest on debt. The company’s reliance on borrowing could present financial risks if interest rates increase or if the company is unable to service this debt efficiently.
- **Revenue Growth**: While there is a solid revenue increase, it is essential to ensure that this growth is sustainable. If it is driven by aggressive credit terms or increasing inventory levels, it could become problematic in the future.

## 3. Consolidated Cash Flow Statement (for the year ending 31 December 2024)

### Key Highlights:
- **Operating Activities**: The company’s cash flow from operating activities has turned positive, with a net cash inflow of **VND 20.8 billion**, compared to a net outflow of **VND 20 billion** in 2023. This indicates improvements in working capital management.
  - **Receivables and Inventories**: There is an increase in receivables and inventories, which could be a signal of potential future cash flow problems if not efficiently managed.

- **Investing Activities**: The cash flow from investing activities shows a net outflow of **VND 16.8 billion**, mainly due to significant investments in **fixed assets** and **loans to other entities**.
  - The company seems to be heavily investing in long-term assets, possibly tied to the expansion of its real estate and electric vehicle (EV) business.

- **Financing Activities**: A positive **net cash flow of VND 10.9 billion** in financing activities reflects new borrowings (VND 157.7 billion), which may be necessary to support ongoing capital expenditures and operations.
  - **Capital Contribution**: There is also some capital raised, with **VND 15.7 billion** contributed through new share issues and capital from non-controlling interests.

### Key Risks:
- **Debt and Borrowing**: The significant **new borrowings** (VND 157.7 billion) and **interest expenses** suggest the company is heavily dependent on external financing. Any changes in borrowing terms, or inability to refinance existing debt, could pose a significant risk to the company.
- **Cash Flow from Operating Activities**: Although the operating cash flow is positive, the increase in receivables and inventory may impact future liquidity. Careful management of cash conversion cycles is crucial.

## 4. Other Considerations:

- **Subsidiary Performance**: The financial statements indicate multiple subsidiaries and investments. Some of the subsidiary operations could present risks, especially if they are dependent on the real estate market, which can be volatile.
- **Related Party Transactions**: The company has intercompany transactions with related parties, which require careful monitoring to avoid conflicts of interest or potential issues with transparency.

## Conclusion:
Vingroup, including its subsidiary VinFast, has shown **positive financial performance** for the year ending 31 December 2024, with increases in revenue, profit, and a recovery in operating profit. However, there are some **financial risks** due to:
1. **High finance costs** associated with borrowing.
2. **Increasing receivables** and **inventory**, which may affect future liquidity.
3. **Substantial long-term investments** and **goodwill** that should be carefully monitored for impairment.
4. **Heavy reliance on external financing**, which could be risky if not managed prudently.

Investors or stakeholders should keep an eye on **debt management**, **liquidity**, and the **performance of related subsidiaries** to ensure the company’s continued stability and growth.