VIETNAM FERTILIZER INDUSTRY REPORT Q3/2018

Transcription

1 VIETNAM FERTILIZER INDUSTRY REPORT Q3/2018

2 Content Executive summary 4 1. Business environment Macroeconomic situation Legal framework Trade agreements Industry overview Situation of fertilizer industry in the world Supply demand Import export Price movement Production and consumption situation in some typical countries 2.2 Vietnam fertilizer industry situation History of Vietnam fertilizer industry Definition and Classification Scale and Characteristics of market Main activities Input materials Production technology Supply demand Import export Inventory Price movement Transport and distribution Industry risks Planning and forecast Planning Global forecast Domestic forecast Enterprise analysis Top 10 enterprises Target group of business results Target group of finance Target group of cash flow Appendix of financial statements 107 2

3 Abbreviation ADB Asia Development Bank GSO General Statistics Office EVN Vietnam Electricity MOT Ministry of Transport FAO Food and Agriculture Organization MARD Ministry of Agriculture and Rural Development FAV Fertilizer Association Vietnam Vinacomin Vietnam National Coal and Mineral Industries Holding Corporation Limited FDI Foreign Direct Investment UN comtrade United Nations Database of Trade Statistics FIA Foreign Investment Agency VIRAC Vietnam Industry Research and Consultancy GDVC General Department of Vietnam Custom 3

4 Executive summary Fertilizer market continues to oversupply, estimated supply of nutrition by fertilizer ingredients increased to 3.4% while demand increased slightly by 0.6% Average supply exceeds the demand. Vietnam fertilizer production has focused on the single and mixed market for NPK and DAP Fertilizer imports have fluctuated continuously over the years Asia and the Americas are the largest fertilizer consuming regions in the world, Fertilizer prices tend to rise again due to high demand while supply is scarce and the impact of raw material costs and transportation (due to rising oil, gas and coal prices). Fertilizer consumption tends to decrease over the years Asian countries continue to be the main export markets of Vietnam. 4

5 Executive summary In particular, Cambodia continues to be the main export market, Fertilizers are in a saturated state, domestic firms have to compete fiercely with imports, while demand tends to fall, leading to downward pressure in the period. Fertilizer inventories tend to increase over the years, but the growth rate has been decreasing. 5

6 Content 1. Business environment 1.1 Macroeconomic situation 1.2 Legal framework 1.3 Trade agreements 6

7 1. Business environment 1.1 Macroeconomic situation GDP in the first 6 months of 2018 is estimated to increase 7.08% over the same period last year, the highest increase of 6 months since GDP growth, M/2018 Source: VIRAC, GSO Monthly CPI fluctuation, /2018 Source: VIRAC, GSO 7

8 1. Business environment 1.1 Macroeconomic situation VND/CNY exchange rate, /2018 Source: VIRAC VND/USD exchange rate, 3/2015-6/2018 Source: VIRAC, SBV 8

9 1. Business environment 1.1 Macroeconomic situation Export- Import by quarter, Q1/2015 Q2/2018 USD million Structure of export commodities, 6M/2018 Source: VIRAC, GDVC Source: VIRAC, GDVC 9

10 Content 1. Business environment 1.1 Macroeconomic situation 1.2 Legal framework 1.3 Trade agreements 10

11 1. Business environment 1.2 Legal framework - Group of regulations on production, trading and use of fertilizers Circular No. 36/2010/TT-BNNPTNT Decree No. 163/2013/ND-CP 11

12 1. Business environment 1.2 Legal framework - Group of regulations on production, trading and use of fertilizers Decree No. 202/2013/ND-CP 12

13 1. Business environment 1.2 Legal framework - Group of regulations on production, trading and use of fertilizers 13

14 1. Business environment 1.2 Legal framework - Group of regulations on taxes of fertilizer import and export 14

15 1. Business environment 1.2 Legal framework - Group of regulations on taxes of fertilizer import and export 15

16 1. Business environment 1.2 Legal framework - Group of regulations on taxes of fertilizer import and export 16

17 1. Business environment 1.2 Legal framework - Group of regulations on taxes of fertilizer import and export On June 2, 2018, the Ministry of Finance said that in the draft law to amend and supplement some articles of the 6 Laws on tax, fertilizer will be subject to VAT at the preferential tax rate of 5%. 17

18 Content 1. Business environment 1.1 Macroeconomic situation 1.2 Legal framework 1.3 Trade agreements 18

19 1. Business environment 1.3 Trade agreements As of Q2/2018, Vietnam had signed, implemented, and has been negotiating a total of 17 free trade agreements (FTAs). Accession to international trade agreements brings opportunities and challenges for domestic firms. Vietnam's integration process since 1995 to date 19

20 1. Business environment 1.3 Trade agreements Tariffs under the Vietnam-EU trade agreement Export taxes in 2016 Export taxes applied since 10/5/

21 Content 2. Industry overview 2.1 Situation of fertilizer industry in the world 2.2 Vietnam fertilizer industry situation 2.3 Industry risks 2.4 Planning and forecast 21

22 2. Industry overview 2.1 World fertilizer market Fertilizer supply-demand Million tons Demand by nutrient and nutrient supply, e Source: VIRAC, FAO 22

23 2. Industry overview 2.1 World fertilizer market Import export USD billion Fertilizer exports, e Over the years, urea exports have been steadily increasing, mainly from countries in West Asia and East Asia. Source: VIRAC, Trademap 23

24 2. Industry overview 2.1 World fertilizer market Import export China is a country in the top import and export countries Top fertilizer exporting countries, Top fertilizer importing countries, Country 2016e 2017e Growth Country 2016e 2017e Growth Source: VIRAC, UN comtrade Source: VIRAC, UN comtrade 24

25 2. Industry overview 2.1 World fertilizer market Price movement Fertilizer prices tend to rise again due to high demand but supply scarcity and the impact of raw material and transportation costs (due to rising oil, gas and coal prices). USD/ton Price movement of main fertilizers in the world, 1/2012 6/2018 Source: VIRAC, Worldbank 25

26 2. Industry overview 2.1 World fertilizer market Price movement 26

27 2. Industry overview 2.1 World fertilizer market Situation of fertilizer industry in countries China - world leader in fertilizer production Fertilizer production in China continues to grow low USD billion Top largest fertilizer enterprises in China, 2017 Source: VIRAC, The Wall Street Journal 27

28 2. Industry overview 2.1 World fertilizer market Situation of fertilizer industry in countries Fertilizer exports in China are forecasted to continue to fall in the coming years. Import and export of fertilizers from China, USD thousand Source: VIRAC, Trademap Change in fertilizer export tax rate, Export Source: VIRAC, Fert 28

29 2. Industry overview 2.1 World fertilizer market Situation of fertilizer industry in countries The impact of the environmental tax on the Chinese fertilizer industry in Environmental taxes in China, 2018 High Medium Low Air pollution Water pollution Source: VIRAC, Integer Research Environmental tariffs are expected to continue to increase in the future. 29

30 2. Industry overview 2.1 World fertilizer market Situation of fertilizer industry in countries India Fertilizer demand is increasing Million tons Imports of fertilizers by type in India, Source: VIRAC, Centre for Monitoring Indian Economy 30

31 2. Industry overview 2.1 World fertilizer market Situation of fertilizer industry in countries Impact of cost of production on fertilizer industry in India Perspectives on India fertilizer industry Structure of fertilizer production in India by type, Source: VIRAC, Fertilizer Association of India 31

32 2. Industry overview 2.1 World fertilizer market Situation of fertilizer industry in countries There are also other countries that also have large-scale fertilizer production: United States Russia Canada Germany Brazil 32

33 Content 2. Industry overview 2.1 Situation of fertilizer industry in the world 2.2 Vietnam fertilizer industry situation 2.3 Industry risks 2.4 Planning and forecast 33

34 2. Industry overview 2.2 Vietnam Fertilizer Industry History of Industry Development 34

35 2. Industry overview 2.2 Vietnam Fertilizer Industry Definition and Specification Classified according to the nutrient requirements of plants Classified according to source Structure of major fertilizers

36 2. Industry overview 2.2 Vietnam Fertilizer Industry Definition and Specification Name of fertilizer Chemical composition Characteristic Type of suitable land 36

37 2. Industry overview 2.2 Vietnam Fertilizer Industry Definition and Specification Name of fertilizer Chemical composition Characteristic Type of suitable land 37

38 2. Industry overview 2.2 Vietnam Fertilizer industry Scale and characteristic of market Fertilizer industry revenue, VND billion Share by revenue, 2016 Source: VIRAC, GSO Source: VIRAC, GSO 38

39 2. Industry overview 2.2 Vietnam Fertilizer industry Main activities 39

40 2. Industry overview 2.2 Vietnam Fertilizer industry Main activities 40

41 2. Industry overview 2.2 Vietnam Fertilizer industry Input material Coal reserves are concentrated in the Red River Delta coal basin and the coal used in fertilizer production accounts for 4% of the coal consumption market. Coal reserves by area Market segment of coal consumption Source: VIRAC,Vinacomin Source: VIRAC,Vinacomin 41

42 2. Industry overview 2.2 Vietnam Fertilizer industry Input material Million tonnes Forecast for coal supply and demand in the period

43 2. Industry overview 2.2 Vietnam Fertilizer industry Input material The reserves of apatite ore are plentiful and meet the demand Exploration ore reserves in 2014 Forecast for ore demand for fertilizer, Thousand tonnes Thousand tonnes Source: VIRAC, Vietnam Chemical Group Source: VIRAC, Vietnam Chemical Group 43

44 2. Industry overview 2.2 Vietnam Fertilizer industry Input material Domestic gas production will meet demand until 2076, the annual plant consumption of 1 billion m³ to produce 1.6 million tonnes of Urea Market segment of natural gas consumption Source: VIRAC, Vietnam Gas Corporation 44

45 2. Industry overview 2.2 Vietnam Fertilizer industry Production technology Production technology of NPK Technology Advantage Disadvantage Using businesses 45

46 2. Industry overview 2.2 Vietnam Fertilizer industry Production technology Production technology of Urea 46

47 2. Industry overview 2.2 Vietnam Fertilizer industry Production technology Production technology of DAP Production technology of Phosphate 47

48 2. Industry overview 2.2 Vietnam Fertilizer Market Supply demand Million tons Supply - Demand, M/2018e Million tons Production and consumption of domestic producers, M/2018e Source: VIRAC, GSO, MARD, GDVC Source: VIRAC, GSO, MARD, GDVC 48

49 2. Industry overview 2.2 Vietnam Fertilizer Market Supply demand Million tons Fertilizer production, M/2018e Source: VIRAC, GSO 49

50 2. Industry overview 2.2 Vietnam Fertilizer Market Supply demand The impact of tax policies on domestic production 50

51 2. Industry overview 2.2 Vietnam Fertilizer Market Supply demand On June 2, 2018, the Ministry of Finance said that in the draft law to amend and supplement some articles of the 6 Laws on tax, fertilizer will be subject to VAT at the preferential tax rate of 5%. 51

52 2. Industry overview 2.2 Vietnam Fertilizer Market Supply demand Fertilizer production capacity of big domestic enterprises, 6/2018 Source: VIRAC 52

53 2. Industry overview 2.2 Vietnam Fertilizer Market Supply demand Factory Capacity Source: VIRAC 53

54 2. Industry overview 2.2 Vietnam Fertilizer Market Supply demand Million tons Demand and consumption of fertilizer, M/2018e Source: VIRAC, GSO, MARD 54

55 2. Industry overview 2.2 Vietnam Fertilizer Market Import export Fertilizer imports have fluctuated continuously over the years as a result of domestic demand - supply and import and export tax policies as well as major import markets. Thousand tons Fertilizer imports, M/2018e Source: VIRAC, GDVC, MARD 55

56 2. Industry overview 2.2 Vietnam Fertilizer Market Import export Thousand tons Fertilizer imports, 6M/2017 / 6M/2018e Source: VIRAC, MARD, GDVC Fertilizer imports by type, 6M/2018e Source: VIRAC, MARD, GDVC 56

57 2. Industry overview 2.2 Vietnam Fertilizer Market Import export Import structure of fertilizer by countries, 6M/2018 Source: VIRAC, MARD, GDVC 57

58 2. Industry overview 2.2 Vietnam Fertilizer Market Import export Prices of some types of imported fertilizer 6M/2018 Unit: USD Type of fertilizer Average unit price 6M/2018 Content is intentionally Source: GDVC removed for demo purpose Structure of importing fertilizer enterprises, 6M/2018 Source: GDVC 58

59 2. Industry overview 2.2 Vietnam Fertilizer Market Import export Million tons Fertilizer exports, M/2018e Source: VIRAC, MARD, GDVC 59

60 2. Industry overview 2.2 Vietnam Fertilizer Market Import export Fertilizer exports by country, 6M/2018e Fertilizer exports by country, 6M/2017-6M/2018e Thousand tons Source: VIRAC, GDVC Source: VIRAC, GDVC 60

61 2. Industry overview 2.2 Vietnam Fertilizer Market Import export Vietnam fertilizer exports by type, 6M/2017 Temporary import for export by type, 6M/2017 Type of fertilizer Share Type of fertilizer Share Source: VIRAC, GDVC Fertilizer exports by origin, 6M/2018 Source: VIRAC, GDVC 61

62 2. Industry overview 2.2 Vietnam Fertilizer Market Inventory Fertilizer inventories tend to increase over the years, causes are: Million tons Fertilizer inventories, e Source: VIRAC, GSO 62

63 2. Industry overview 2.2 Vietnam Fertilizer Market Price movement Ure and DAP prices have been fluctuating much in the first three months of 2018, specifically: VND Price movement, /2018 * Price movements of main products (highest price) from Tran Xuan Soan market Source: VIRAC, VIETRADE- MOIT 63

64 2. Industry overview 2.2 Vietnam Fertilizer Market Price movement 64

65 2. Industry overview 2.2 Vietnam Fertilizer Market Transport and distribution Key seaports in Vietnam 65

66 2. Industry overview 2.2 Vietnam Fertilizer Market Transport and distribution 66

67 Content 2. Industry overview 2.1 Situation of fertilizer industry in the world 2.2 Vietnam fertilizer industry situation 2.3 Industry risks 2.4 Planning and forecast 67

68 2. Industry overview 2.3 Industry risks Risk of input material prices Coal, oil prices, 7/2011 5/2018 USD/ton Coal prices in Australia Average oil prices of Dated Brent, West Texas Intermediate and Dubai Fateh Source: VIRAC, Worldbank 68

69 2. Industry overview 2.3 Industry risks Weather influences the direction of impact and efficiency of fertilizer. 69

70 2. Industry overview 2.3 Industry risks Risk of output sector Structure of cultivation area, 2017 Area of paddy land for years, Thousand ha Source: VIRAC, MARD Source: MNRE 70

71 2. Industry overview 2.3 Industry risks Demand for fertilizer by crop Main agricultural products exports, 6M/2017 6M/2018 Thousand tons USD million Source: VIRAC, MARD 2013 Source: VIRAC, MARD 71

72 2. Industry overview 2.3 Industry risks Area of rice cultivation by season, 2017 Area of rice cultivation by region, Thousand ha Source: VIRAC, MARD Thousand tons Rice output by season, Source: VIRAC, MARD Source: VIRAC, MARD 72

73 2. Industry overview 2.3 Industry risks 73

74 2. Industry overview 2.3 Industry risks 74

75 2. Industry overview 2.3 Industry risks 5-forces analysis 75

76 Content 2. Industry overview 2.1 Situation of fertilizer industry in the world 2.2 Vietnam fertilizer industry situation 2.3 Industry risks 2.4 Planning and forecast 76

77 2. Industry overview 2.4 Planning and forecast Planning Decision No. 6868/QD-BTC approving the master plan for the development of the fertilizer production system and distribution system in the period, with a view to Planning the fertilizer production system 77

78 2. Industry overview 2.4 Planning and forecast Planning 2. Planning the fertilizer distribution system 3. Group of support solutions 78

79 2. Industry overview 2.4 Planning and forecast Planning 79

80 2. Industry overview 2.4 Planning and forecast Global forecast Million tons Forecast supply and demand of fertilizer by nutrients, 2017e f Source: VIRAC, FAO, IFA 80

81 2. Industry overview 2.4 Planning and forecast Global forecast Fertilizer prices tend to decrease over the years mainly due to oversupply, which is caused by oversupply and falling prices of raw materials. 81

82 2. Industry overview 2.4 Planning and forecast Domestic forecast Million tons Forecast of supply and demand, f Source: VIRAC 82

83 2. Industry overview 2.4 Planning and forecast Domestic forecast The trend of developing high quality mixed fertilizers, organic fertilizers, replacing for low-tech fertilizers. 83

84 Content 3. Enterprise analysis 3.1 Top 10 enterprises 3.2 Target group of business results 3.3 Target group of finance 3.4 Target group of cash flow 84

85 3. Enterprise analysis 3.1 Top 10 enterprises Top 10 businesses with largest revenue in 2017 Enterprise name Address Chartered capital (VND million) Total assets (VND million) Net revenue (VND million) Source: VIRAC 85

86 3. Enterprise analysis 3.1 Top 10 enterprises Phu My Fertilizer Plant - PetroVietnam Fertilizer and Chemicals Corporation 86

87 3. Enterprise analysis 3.1 Top 10 enterprises Binh Dien Fertilizer Joint Stock Company BFC s fertilizer plants Source: VIRAC 87

88 3. Enterprise analysis 3.1 Top 10 enterprises Ca Mau Petroleum Fertilizer Joint Stock Company 88

89 3. Enterprise analysis 3.1 Top 10 enterprises Lam Thao Fertilizers and Chemicals Joint Stock Company 89

90 3. Enterprise analysis 3.1 Top 10 enterprises Ha Bac Nitrogenous Fertilizer & Chemicals Joint Stock Company 90

91 3. Enterprise analysis 3.1 Top 10 enterprises DAP VINACHEM Joint Stock Company 91

92 3. Enterprise analysis 3.1 Top 10 enterprises Quảng Bình Import Export Company 92

93 3. Business analysis 3.1 Top 10 businesses Southwest Petrovietnam Fertilizer and Chemicals Corporation Southeast Petrovietnam Fertilizer and Chemicals Corporation Central Petrovietnam Fertilizer and Chemicals Corporation North Petrovietnam Fertilizer and Chemicals Corporation 93

94 Content 3. Enterprise analysis 3.1 Top 10 enterprises 3.2 Target group of business results 3.3 Target group of finance 3.4 Target group of cash flow 94

95 3. Enterprise analysis 3.2 Target group of business results VND billion Net revenue Source: VIRAC 95

96 3. Enterprise analysis 3.2 Target group of business results 96

97 3. Enterprise analysis 3.2 Target group of business results VND billion Gross profit margin, Source: VIRAC 97

98 3. Enterprise analysis 3.2 Target group of business results Self-financing rate, Source: VIRAC 98

99 3. Enterprise analysis 3.2 Target group of business results Selling expenses, Source: VIRAC Administrative expenses, Source: VIRAC 99

100 Content 3. Enterprise analysis 3.1 Top 10 enterprises 3.2 Target group of business results 3.3 Target group of finance 3.4 Target group of cash flow 100

101 3. Enterprise analysis 3.3 Target group of finance Fixed asset turnover, Source: VIRAC 101

102 3. Enterprise analysis 3.3 Target group of finance Day Days in inventory, Producing enterprises Trading enterprises Source: VIRAC 102

103 3. Enterprise analysis 3.3 Target group of finance Day Days of sales outstanding, Source: VIRAC 103

104 3. Enterprise analysis 3.3 Target group of finance Profit Ratio, Source: VIRAC 104

105 Content 3. Enterprise analysis 3.1 Top 10 enterprises 3.2 Target group of business results 3.3 Target group of finance 3.4 Target group of payment 105

106 3. Enterprise analysis 3.4 Target group of payment Index of payment, Source: VIRAC 106

107 Content 4. Appendix 107

108 4. Appendix Financial statements INCOME STATEMENT Phu My Fertilizer Unit: VND Net revenue from goods sold and services provided BALANCE SHEET Cost of goods sold and services provided Unit: VND Gross profit of goods sold and services provided A. SHORT-TERM ASSETS I. Cash and cash equivalents Revenue from financing activities Financial expenses Interest expenses II. Short-term financial investments III. Short-term receivables 1. Short-term receivables of customers IV. Inventories B. LONG-TERM ASSETS Selling expenses Administrative expenses Net profit from business operations Total accounting profit before tax Costs of current corporate income tax 1. Long-term receivables 2. Fixed assets Costs of deferred corporate income tax Profit after tax TOTAL ASSETS A. LIABILITIES I. Current liabilities 1. Short-term borrowings and liabilities 2. Taxes and other payables to the State budget II. Long-term Liabilities 1. Long-term borrowings and liabilities 2. Provision for long-term payables B. OWNER S EQUITY TOTAL CAPITAL RESOURCES CASH FLOW STATEMENT Unit: VND I. Cash Flow From Operating Activities Depreciation of fixed assets Unrealized foreign exchange gain (loss) Net Cash Flow From Operations II. Cash flow from investing activities Expenditures on purchase and construction of fixed assets and long-term assets Net cash flow from investing activities III. Cash flow from financing activities Net cash flow from financing activities Effect of foreign exchange differences Net cash flow during the fiscal year 108

109 4. Appendix Financial statements INCOME STATEMENT Binh Dien Unit: VND Net revenue from goods sold and services provided BALANCE SHEET Cost of goods sold and services provided Unit: VND Gross profit of goods sold and services provided A. SHORT-TERM ASSETS I. Cash and cash equivalents Revenue from financing activities Financial expenses Interest expenses II. Short-term financial investments III. Short-term receivables 1. Short-term receivables of customers IV. Inventories B. LONG-TERM ASSETS Selling expenses Administrative expenses Net profit from business operations Total accounting profit before tax Costs of current corporate income tax 1. Long-term receivables Content is intentionally removed Costs of deferred corporate for income demo tax purpose 2. Fixed assets Profit after tax TOTAL ASSETS A. LIABILITIES I. Current liabilities 1. Short-term borrowings and liabilities 2. Taxes and other payables to the State budget II. Long-term Liabilities 1. Long-term borrowings and liabilities 2. Provision for long-term payables B. OWNER S EQUITY TOTAL CAPITAL RESOURCES CASH FLOW STATEMENT Unit: VND I. Cash Flow From Operating Activities Depreciation of fixed assets Unrealized foreign exchange gain (loss) Net Cash Flow From Operations II. Cash flow from investing activities Expenditures on purchase and construction of fixed assets and long-term assets Net cash flow from investing activities III. Cash flow from financing activities Net cash flow from financing activities Effect of foreign exchange differences Net cash flow during the fiscal year 109

110 4. Appendix Financial statements INCOME STATEMENT Ca Mau Fertilizer Unit: VND Net revenue from goods sold and services provided BALANCE SHEET Cost of goods sold and services provided Unit: VND Gross profit of goods sold and services provided A. SHORT-TERM ASSETS I. Cash and cash equivalents Revenue from financing activities Financial expenses Interest expenses II. Short-term financial investments III. Short-term receivables 1. Short-term receivables of customers IV. Inventories B. LONG-TERM ASSETS Selling expenses Administrative expenses Net profit from business operations Total accounting profit before tax Costs of current corporate income tax 1. Long-term receivables Content is intentionally removed Costs of deferred corporate for income demo tax purpose 2. Fixed assets Profit after tax TOTAL ASSETS A. LIABILITIES I. Current liabilities 1. Short-term borrowings and liabilities 2. Taxes and other payables to the State budget II. Long-term Liabilities 1. Long-term borrowings and liabilities 2. Provision for long-term payables B. OWNER S EQUITY TOTAL CAPITAL RESOURCES CASH FLOW STATEMENT Unit: VND I. Cash Flow From Operating Activities Depreciation of fixed assets Unrealized foreign exchange gain (loss) Net Cash Flow From Operations II. Cash flow from investing activities Expenditures on purchase and construction of fixed assets and long-term assets Net cash flow from investing activities III. Cash flow from financing activities Net cash flow from financing activities Effect of foreign exchange differences Net cash flow during the fiscal year 110

111 4. Appendix Financial statements INCOME STATEMENT Lam Thao Chemicals Unit: VND Net revenue from goods sold and services provided BALANCE SHEET Cost of goods sold and services provided Unit: VND Gross profit of goods sold and services provided A. SHORT-TERM ASSETS I. Cash and cash equivalents Revenue from financing activities Financial expenses Interest expenses II. Short-term financial investments III. Short-term receivables 1. Short-term receivables of customers IV. Inventories B. LONG-TERM ASSETS Selling expenses Administrative expenses Net profit from business operations Total accounting profit before tax Costs of current corporate income tax 1. Long-term receivables Content is intentionally removed Costs of deferred corporate for income demo tax purpose 2. Fixed assets Profit after tax TOTAL ASSETS A. LIABILITIES I. Current liabilities 1. Short-term borrowings and liabilities 2. Taxes and other payables to the State budget II. Long-term Liabilities 1. Long-term borrowings and liabilities 2. Provision for long-term payables B. OWNER S EQUITY TOTAL CAPITAL RESOURCES CASH FLOW STATEMENT Unit: VND I. Cash Flow From Operating Activities Depreciation of fixed assets Unrealized foreign exchange gain (loss) Net Cash Flow From Operations II. Cash flow from investing activities Expenditures on purchase and construction of fixed assets and long-term assets Net cash flow from investing activities III. Cash flow from financing activities Net cash flow from financing activities Effect of foreign exchange differences Net cash flow during the fiscal year 111

112 4. Appendix Financial statements INCOME STATEMENT Ha Bac Fertilizer Unit: VND Net revenue from goods sold and services provided BALANCE SHEET Cost of goods sold and services provided Unit: VND Gross profit of goods sold and services provided A. SHORT-TERM ASSETS I. Cash and cash equivalents Revenue from financing activities Financial expenses Interest expenses II. Short-term financial investments III. Short-term receivables 1. Short-term receivables of customers IV. Inventories B. LONG-TERM ASSETS Selling expenses Administrative expenses Net profit from business operations Total accounting profit before tax Costs of current corporate income tax 1. Long-term receivables Content is intentionally removed Costs of deferred corporate for income demo tax purpose 2. Fixed assets Profit after tax TOTAL ASSETS A. LIABILITIES I. Current liabilities 1. Short-term borrowings and liabilities 2. Taxes and other payables to the State budget II. Long-term Liabilities 1. Long-term borrowings and liabilities 2. Provision for long-term payables B. OWNER S EQUITY TOTAL CAPITAL RESOURCES CASH FLOW STATEMENT Unit: VND I. Cash Flow From Operating Activities Depreciation of fixed assets Unrealized foreign exchange gain (loss) Net Cash Flow From Operations II. Cash flow from investing activities Expenditures on purchase and construction of fixed assets and long-term assets Net cash flow from investing activities III. Cash flow from financing activities Net cash flow from financing activities Effect of foreign exchange differences Net cash flow during the fiscal year 112

113 4. Appendix Financial statements INCOME STATEMENT Dinh Vu DAP Unit: VND Net revenue from goods sold and services provided BALANCE SHEET Cost of goods sold and services provided Unit: VND Gross profit of goods sold and services provided A. SHORT-TERM ASSETS I. Cash and cash equivalents Revenue from financing activities Financial expenses Interest expenses II. Short-term financial investments III. Short-term receivables 1. Short-term receivables of customers IV. Inventories B. LONG-TERM ASSETS Selling expenses Administrative expenses Net profit from business operations Total accounting profit before tax Costs of current corporate income tax 1. Long-term receivables Content is intentionally removed Costs of deferred corporate for income demo tax purpose 2. Fixed assets Profit after tax TOTAL ASSETS A. LIABILITIES I. Current liabilities 1. Short-term borrowings and liabilities 2. Taxes and other payables to the State budget II. Long-term Liabilities 1. Long-term borrowings and liabilities 2. Provision for long-term payables B. OWNER S EQUITY TOTAL CAPITAL RESOURCES CASH FLOW STATEMENT Unit: VND I. Cash Flow From Operating Activities Depreciation of fixed assets Unrealized foreign exchange gain (loss) Net Cash Flow From Operations II. Cash flow from investing activities Expenditures on purchase and construction of fixed assets and long-term assets Net cash flow from investing activities III. Cash flow from financing activities Net cash flow from financing activities Effect of foreign exchange differences Net cash flow during the fiscal year 113

114 4. Appendix Financial statements INCOME STATEMENT Quang Binh Import Export Unit: VND Net revenue from goods sold and services provided BALANCE SHEET Cost of goods sold and services provided Unit: VND Gross profit of goods sold and services provided A. SHORT-TERM ASSETS I. Cash and cash equivalents Revenue from financing activities Financial expenses Interest expenses II. Short-term financial investments III. Short-term receivables 1. Short-term receivables of customers IV. Inventories B. LONG-TERM ASSETS Selling expenses Administrative expenses Net profit from business operations Total accounting profit before tax Costs of current corporate income tax 1. Long-term receivables Content is intentionally removed Costs of deferred corporate for income demo tax purpose 2. Fixed assets Profit after tax TOTAL ASSETS A. LIABILITIES I. Current liabilities 1. Short-term borrowings and liabilities 2. Taxes and other payables to the State budget II. Long-term Liabilities 1. Long-term borrowings and liabilities 2. Provision for long-term payables B. OWNER S EQUITY TOTAL CAPITAL RESOURCES CASH FLOW STATEMENT Unit: VND I. Cash Flow From Operating Activities Depreciation of fixed assets Unrealized foreign exchange gain (loss) Net Cash Flow From Operations II. Cash flow from investing activities Expenditures on purchase and construction of fixed assets and long-term assets Net cash flow from investing activities III. Cash flow from financing activities Net cash flow from financing activities Effect of foreign exchange differences Net cash flow during the fiscal year 114

115 4. Appendix Financial statements INCOME STATEMENT Southwest Petroleum Chemicals Unit: VND Net revenue from goods sold and services provided BALANCE SHEET Cost of goods sold and services provided Unit: VND Gross profit of goods sold and services provided A. SHORT-TERM ASSETS I. Cash and cash equivalents Revenue from financing activities Financial expenses Interest expenses II. Short-term financial investments III. Short-term receivables 1. Short-term receivables of customers IV. Inventories B. LONG-TERM ASSETS Selling expenses Administrative expenses Net profit from business operations Total accounting profit before tax Costs of current corporate income tax 1. Long-term receivables Content is intentionally removed Costs of deferred corporate for income demo tax purpose 2. Fixed assets Profit after tax TOTAL ASSETS A. LIABILITIES I. Current liabilities 1. Short-term borrowings and liabilities 2. Taxes and other payables to the State budget II. Long-term Liabilities 1. Long-term borrowings and liabilities 2. Provision for long-term payables B. OWNER S EQUITY TOTAL CAPITAL RESOURCES CASH FLOW STATEMENT Unit: VND I. Cash Flow From Operating Activities Depreciation of fixed assets Unrealized foreign exchange gain (loss) Net Cash Flow From Operations II. Cash flow from investing activities Expenditures on purchase and construction of fixed assets and long-term assets Net cash flow from investing activities III. Cash flow from financing activities Net cash flow from financing activities Effect of foreign exchange differences Net cash flow during the fiscal year 115

116 4. Appendix Financial statements INCOME STATEMENT Southeast Petroleum Chemicals Unit: VND Net revenue from goods sold and services provided BALANCE SHEET Cost of goods sold and services provided Unit: VND Gross profit of goods sold and services provided A. SHORT-TERM ASSETS I. Cash and cash equivalents Revenue from financing activities Financial expenses Interest expenses II. Short-term financial investments III. Short-term receivables 1. Short-term receivables of customers IV. Inventories B. LONG-TERM ASSETS Selling expenses Administrative expenses Net profit from business operations Total accounting profit before tax Costs of current corporate income tax 1. Long-term receivables Content is intentionally removed Costs of deferred corporate for income demo tax purpose 2. Fixed assets Profit after tax TOTAL ASSETS A. LIABILITIES I. Current liabilities 1. Short-term borrowings and liabilities 2. Taxes and other payables to the State budget II. Long-term Liabilities 1. Long-term borrowings and liabilities 2. Provision for long-term payables B. OWNER S EQUITY TOTAL CAPITAL RESOURCES CASH FLOW STATEMENT Unit: VND I. Cash Flow From Operating Activities Depreciation of fixed assets Unrealized foreign exchange gain (loss) Net Cash Flow From Operations II. Cash flow from investing activities Expenditures on purchase and construction of fixed assets and long-term assets Net cash flow from investing activities III. Cash flow from financing activities Net cash flow from financing activities Effect of foreign exchange differences Net cash flow during the fiscal year 116

117 REPORT DISCLAIMER REPORT DISCLAIMER This document has been prepared in good faith on the basis of information available at the date of publication without any independent verification. VIRAC has produced this report for private circulation to professional clients only. All information and statistical data herein have been obtained from sources we believe to be reliable and made to ensure the accuracy of the contents of the pages of the report at the time of preparation. Such information has not been independently verified and VIRAC makes no representation or warranty, whether express or implied, of any kind with respect to the document and its contents, information and materials. The content found in this report is proprietary to VIRAC and is provided solely for your personal and non-commercial use. You agree that you will not use this report for any purpose that is unlawful and that you will not reproduce the report or redistribute it outside your organisation, or place it on a website for public access without the express written permission of VIRAC. SHOULD YOU NEED ANY ASSISTANCE, PLEASE CONTACT US: VIETNAM INDUSTRY RESEARCH AND CONSULTANCY (VIRAC JSC.,) 6 th Floor, Anh Minh Building, 36 Hoang Cau, O Cho Dua, Dong Da, Hanoi, Vietnam Website: viracresearch@virac.com.vn Tel:

118 Thank you! 118