Costs ballooned even as revenues edged down, according to the latest audited half-yearly statement released by THACO, formally known as Truong Hai Auto Corporation.

Revenues were down 3 percent year-on-year to VND26.85 trillion ($1.16 billion), while the cost of sales rose 36 percent to VND1.18 trillion ($50.8 million), and financial expenses almost doubled to VND1.22 trillion ($52.5 million).

Interest payments accounted for 56 percent of financial costs, having risen 146 percent to VND678 billion ($29.2 million).

It was the result of the company taking on an additional VND6.55 trillion ($282 million) in both long- and short-term debts during the period, and now owes VND31.44 trillion ($1.35 billion).

It used these funds to acquire shares and invest in Hoang Anh Gia Lai (HAGL), once a leading real estate and agricultural conglomerate that is now under dire financial pressure.

THACO is a leading assembler of foreign vehicles in Vietnam like Peugeot, Kia and Mazda, and it is currently planning to build BMW cars.

Since 2015 its first-half profits had always hovered around VND3 trillion ($129 million).