Haxaco returns to profit as cash burn widens

That gap between accounting profit and cash generation is the story. Haxaco’s revenue rose 29% in the first nine months of 2026, supported by a larger operating scale and the consolidation of Future Vietnam Group from March. Yet the business still failed to turn that growth into durable earnings. Gross margin in the third quarter improved to about 9.1% from 5.2% a year earlier, but the benefit was swallowed by sharply higher financing, selling and administrative expenses. Interest expense alone climbed to nearly 61.8 billion dong in the nine-month period, more than double last year.

The balance sheet helps explain why the market should pay attention. Total assets jumped 51% from the start of the year to almost 3.748 trillion dong, but inventories swelled to 2.117 trillion dong, or 56% of assets. Short-term borrowings and finance lease liabilities rose 72.5% to nearly 1.64 trillion dong, and total liabilities more than doubled to 2.293 trillion dong. In other words, Haxaco is growing, but it is doing so with more working capital tied up in stock and receivables, and with more leverage on the books.

That is not just an accounting problem; it is an economic one. Inventory-heavy dealers can look healthy when car sales rise, yet they can also consume cash quickly if vehicles linger on lots or if margins compress. Haxaco’s 9-month cash outflow shows the company is still funding growth with borrowed money and balance sheet expansion rather than internally generated cash. For investors, that raises questions about how much of the recent improvement is sustainable and how much depends on one-off gains and continued access to credit.

The company’s core business is improving, but it is not yet strong enough to stand on its own. Haxaco’s third-quarter loss from operations narrowed to 19.8 billion dong from 44.5 billion dong a year earlier, and profit after tax swung to 3.6 billion dong from a 25.8 billion dong loss. Still, core operations remained in the red, and the company relied on 27 billion dong of other income to get over the line. That is a useful reminder for investors: a return to net profit is encouraging, but the quality of those earnings matters even more.

Over the next few quarters, the key question is whether Haxaco can convert revenue growth into positive operating cash flow. If inventories normalize, receivables tighten and financing costs stabilize, the company could prove that its recovery is real. If not, the cash drain may keep pressure on margins, debt and valuation. For now, Haxaco is worth watching as a turnaround story, but not yet one that has fully earned investor confidence.