Vietnam's manufacturing, processing and export (00422) profit warning expects a net loss of about 1.5 million US dollars in the first half of the year

According to the Zhitong Finance App, Vietnam Manufacturing and Export (00422) issued an announcement. The Group expects a net loss of about 1.5 million US dollars for the six months ending June 30, 2026, and a net profit of about 40,000 US dollars for the six months ending June 30, 2025. The main reasons for the expected net loss are as follows: (i) continued intense competition in the Vietnamese market, and changes in the market structure brought about by the government's policy to promote electrification of transportation, which affected demand in the fuel locomotive market; some major export market agents carried out inventory adjustments, which led to a decrease in sales volume and revenue during the period; (ii) sales and production volume declined, and fixed manufacturing costs did not decrease in the same proportion as the scale of production, leading to an increase in fixed manufacturing costs per unit of product, resulting in an increase in the gross margin for the current period compared to the same period last year.