CTD announced that its Q3 2020 net revenue sank 55% YoY (VND2.8tn/USD120.7mn) and its NPAT-MI declined 46% YoY (VND89bn/USD3.9mn). Q3 2020 EBIT margin remained flat YoY at 2.3% as gross margin expanded YoY to 6.1% (vs 4.1% in Q3 2019) and was offset by high SG&A expenses on sales that climbed to 3.7% (vs 1.6% in Q3 2019). We also note on a quarter-on-quarter basis, Q3 2020 gross margin level is also equal to that of Q2 2020 (6.1%); however, Q3 2020’s EBIT margin is lower vs 4.4% in Q2 2020.