TMT Motors, a major distributor of Chinese electric vehicles in Vietnam, has been penalized by the Ho Chi Minh City Stock Exchange (HoSE) for regulatory violations.

HoSE recently issued a notice regarding the handling of violations by TMT Motors Joint Stock Company (listed as HoSE: TMT), headquartered at the Coninco Building, Kim Lien Ward, Hanoi.

According to the announcement, TMT stock remains under warning status under Decision No. 177/QD-SGDHCM by the HoSE General Director.

The reason: as of June 30, 2025, TMT Motors’ retained earnings were in deficit by more than 215 billion VND (approx. $8.44 million USD), based on its semi-annual reviewed consolidated financial report. The stock failed to meet the requirements of the Listing and Securities Trading Regulation issued by HoSE’s Board of Members.

TMT shares are also ineligible for margin trading, as stated in HoSE’s official notification.

Being on a warning list classifies TMT as a high-risk stock, which may discourage investors and result in decreased trading activity, potentially driving the share price lower.

According to the semi-annual financial report, TMT’s charter capital stands at nearly 373 billion VND (approx. $14.64 million USD). With accumulated losses exceeding 215 billion VND, the company’s net asset value has dropped to just over 167 billion VND (approx. $6.56 million USD).

Despite a sharp turnaround in the first half of 2025 - where TMT posted a profit of nearly 55 billion VND (approx. $2.16 million USD), compared to a loss of nearly 99 billion VND (approx. $3.89 million USD) in the same period last year - its accumulated losses remain substantial. The positive result was attributed to a campaign to liquidate inventory and early settlement of bank loans.

Previously, TMT Motors suffered consecutive losses through late 2023 and most of 2024, peaking at nearly 123 billion VND (approx. $4.83 million USD) in Q4 2024. It also reported losses of over 100 billion VND in Q2 and around 93 billion VND in Q3 2024. These losses were primarily due to selling below cost, high financial expenses, and excessive inventory.

By the end of 2024, TMT had incurred losses exceeding half its charter capital. The company attributed the downturn to broader economic challenges, a frozen real estate market, inflation concerns, and tightened consumer spending - leading to a significant drop in automobile sales.

For 2025, TMT Motors set a target of over 3.838 trillion VND (approx. $150.8 million USD) in net revenue and 270 billion VND (approx. $10.61 million USD) in post-tax profit. However, by mid-year, the company had only achieved about 32% of its revenue goal and 20% of its annual profit target.

Manh Ha