Baùo caùo thöôøng nieân. Annual Report.

Transcription

1 Baùo caùo thöôøng nieân Annual Report

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3 Muïc luïc Thoâng ñieäp»»thoâng ñieäp cuûa Chuû tòch Hoäi Ñoàng Quaûn Trò Contents Messages»» Message sent by the Chairman of the Board of Management Giôùi thieäu coâng ty»»lòch söû phaùt trieån Transimex - Saigon»»Caùc yeáu toá caáu thaønh söùc maïnh»»toå chöùc vaø nhaân söï Introduction»» Development History of Transimex - Saigon»» Strength constituting factors»» Organization and human resource Thoâng tin coå ñoâng vaø Quaûn trò coâng ty»»thoâng tin coå ñoâng»»quaûn trò coâng ty Shareholder information and company management»»»» Shareholder Information Company management Baùo caùo Ban Toång Giaùm Ñoác»»Baùo caùo cuûa Toång Giaùm Ñoác»» Tình hình thöïc hieän keá hoaïch ñaàu tö naêm 2008 vaø keá hoaïch ñaàu tö naêm 2009»»Keá hoaïch kinh doanh naêm 2009»»Chieán löôïc phaùt trieån cuûa Transimex - Saigon trong giai ñoaïn BOD s report»»»»»»»» Report of the General Director Situation of implementation of investment plan in 2008 and plan for 2009 Business plan in 2009 Development strategy in period of Baùo caùo taøi chính»»baùo caùo kieåm toaùn»»baûng caân ñoái keá toaùn»»baùo caùo keát quaû hoaït ñoäng kinh doanh naêm 2008»»Baùo caùo löu chuyeån tieàn teä»»baûn thuyeát minh baùo caùo taøi chính naêm Financial reports»»»»»»»»»» Auditor s report Balance sheet Income statement Cash flow statement Notes to the financial statements Thoâng tin lieân heä Contact details

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5 MESSAGES»» Message sent by the Chairman of the Board of Management

6 Dear valued customers, partners, shareholders! On behalf of the Transforwarding Warehousing Joint Stock Corporation (Transimex - Saigon), I would like to pay my respects to you all. Ladies and Gentlemen! Logistic activities play an important and indispensable role in the whole process of production, sales, circulation and distribution of the economy of each country. In recent years, along with the development of the economy, the increase in import-export activities and investment, the logistics service in Vietnam is developed strongly and rapidly since Vietnam s official admission to WTO. Entering into global market, enterprises engaging in logistics, especially Transimex - Saigon will have many great chances for development. At the end of the fiscal year of 2008, the company has gained promising results with growth rate of profit at 25% compared with This achievement obtained is thanks to sound leadership of the Board of Management, effective management of Board of Directors, especially great contribution by staffs, employees, and this has also affirmed the right orientation in investment of the company. In order to have great achievement as at present, and to create a firm position in field of logistics, Transimex - Saigon has focused on reaching stable and solid development basing on basic factors of human, capital, information, material facilities, sound strategy, effective management, trade name and business culture. About human factor: Transimex - Saigon always gives prominence to human resource administration. The company has the Board of Management and staffs professional, well-trained, experienced in trade, they always improve their skill, whole-hearted toward works and have strong attachment to the company. Employees all stick together for objectives of quality, cost and caring for customers. For capital, in 2008, the owner s equity of Transimex - Saigon increased by 7.8% and especially, the owner s equity of Nippon Express Vietnam (NEV) Joint-Venture company increased by 47% compared with Transimex - Saigon continued to increase accumulation of capital through past years with the chartered capital increasing by 2.9 times, the owner s equity by 7.3 times compared with the first year of equitization. Chartered capital of the company in NEV also increased by 1.9 times, the owner s equity increased by 8.4 times compared with first year of the establishment. About information, Transimex - Saigon has introduced IT to be used in management. At present, the company is carrying out the enterprise management project of ERP for business and human resource administration. When applying ERP, the company shall restructure activities according to professional process in accordance with international standards, to improve quality of the product, to save cost, increase profit, increase competitiveness and develop the company s trade name. About material facilities, Transimex - Saigon always forward investment in renovation of equipment, gradually ameliorate infrastructure of warehouse, freight yard, wharf to meet increasing need of customer. The Board of Management put forward strategy for planning ICD Transimex by newly building, renovating, upgrading infrastructure into cluster of warehouse of CFS, bonded warehouse, refrigerated stores, modern container yard with a view to improving efficiency of using and maximizing the exploitation of the existing area. About strategy, the Board of Management and Board of Directors have set up specific strategies widely and deeply. Namely: - To exploit and make the most of existing advantages, the company has invested in office building for lease, to create stable profit beside profit gained from traditional business lines. - To gradually carry out investment projects, increase rate of ownership to reach the whole ownership or in other words, merging companies with the same business line. To establish subsidiaries specializing in transport, warehouse, freight yard to gradually specialize and complete chains of logistics. - To re-invest in expansion, increase capital of joint-venture to serve and capture the market, win traditional customers. - To participate in cooperation with big international groups to diversify and improve quality of service. 6

7 MESSAGE SENT BY THE CHAIRMAN OF THE BOARD OF MANAGEMENT About management: the company has applied thoroughly system of management of quality of service in accordance with standard of ISO 9001 : To forward application of IT to management of finance, personnel as well as other resources. Besides, the company defines that construction and development of trade name of Transimex - Saigon is an important factor of the process of business. Transimex - Saigon trade name is fostered and developed on the basis of formation and development of Transimex-Saigon culture according to specific features showing professional, whole hearted service, always satisfying customers thanks to perfect quality of service; at the same time, mutual respect in cooperation, joint-venture, association with partners in manner of mutual benefit (win-win). The Board of Management believes that, with resources and crucial values of the company, together with cooperation of partners, customers, constant contribution made by employees, flexibility, decisiveness in management of the Board of Director, clear-sighted guidance and leadership of the Board of Management, together with active participation of shareholders, the trade name of Transimex - Saigon shall develop more and more, reach objective of being one of Vietnam leading logistics companies. Lastly, on behalf of the Board of Management, Board of Directors and employees of Transimex - Saigon, I would like to express heartfelt thanks to valued customers, partners, shareholders who have put their beliefs in and entered into cooperation with Transimex - Saigon; I thank agency, organization, individual for having supported our company during past time. At the same time, on behalf of Board of Directors of the company, I express heartfelt thanks to all employees for having overcome difficulties together with the company during 27 past years to bring the company into stable development as at present. Our wish of happiness, success and good health to you. The Chairman of the Board of Management Bui Tuan Ngoc 7

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9 INTRODUCTION»»»»»» Development History of Transimex Saigon Strength constituting factors Organization and human resource

10 GENERAL INFORMATION Company s name: CONG TY CO PHAN KHO VAN GIAO NHAN NGOAI THUONG TP. HO CHI MINH Company s name in English: TRANSFORWARDING WAREHOUSING JOINT STOCK CORPORATION Transaction name Securities code Address of head office : TRANSIMEX SAIGON : TMS : 9-10 th Floor, TMS BUILDING, 172 Hai Ba Trung Street, Dakao Ward, District 1, HCMC Tel : Fax : Website Charter capital Quantity of share issued : info@transimexsaigon.com; : : VND 63,480,000,000 (sixty three billion four hundred eighty million VND only) : 6,348,000 Common shares Account at: VietcomBank Ho Chi Minh City Branch Account No : VND USD Certificate of Business Registration No: issued on Dec 03 rd 1999 by HCMC Department of Planning and Investment Economic field: Service of forwarding and transport, warehousing and yards, general trading, office lease ICD ( Inland Clearance Depot ) TRANSIMEX SAIGON with total area of about 100,000 m 2 located at Truong Tho Ward, Thu Duc District, Ho Chi Minh City Branches of Company stationed at Hanoi, Hai Phong, Da Nang Representative Office of Company stationed at Binh Duong and Dong Nai

11 DEVELOPMENT HISTORY OF TRANSIMEX SAIGON STAGES OF DEVELOPMENT - TRANSFORWARDING WAREHOUSING JOINT STOCK CORPORATION (Transimex - Saigon) is a State Enterprise, was set up in From 01 January 2000, this Company was changed into Joint Stock Company according to Decision No 989/QÑ-TTg dated Oct 26th 1999 of the Prime Minister of Government with total charter capital of 22 billion Dong. - The shares of Transimex - Saigon is licensed to be listed on Ho Chi Minh City Stock Exchange on July 20th The share certificates of Transimex - Saigon was officially transacted from 04 August From June 2004 to March 2008, Transimex - Saigon issued further 4,148,000 shares for addition to and increase of the charter capital from 22 billion up to billion dong. - Transimex - Saigon was granted the Certificate of Service Quality Management according to standard ISO 9002 from 02 Octorber 2000 by SGS group, added with standard ISO 9001 : 2000 from July Transimex - Saigon is a member of FIATA, VIFFAS, VCCI Associations from 1989 and joining in IATA Association from THE KEY EVENTS SINCE SHAREHOLDER S MEETING On 29 March 2008: The shareholders meeting elected 7 new members of the Board at the shareholder meeting for tenure On April 2008, Mr. BUI TUAN NGOC Chairman of Board of Management is legal representative of Company. - On Sept 2008, restructuring the Company: Logistics Department, Agency Cooperation Department, Sales & Marketing Division, and Finance Investment Department. - On November 2008, Mr. BUI TUAN NGOC temporarily held the Acting General Director of Company. - In 2008, Transimex - Saigon became a strategic shareholder of Saigon Maritime Joint Stock Company. - On January 2009, Transimex - Saigon invested to set up the Transimex Saigon - Huu Nghi Joint Stock Company specialized in bonded warehouses at Bac Giang Province. At the same time, setting up Foreign Trade Transforwarding Company Limited with 100% of its own fund and registering new field of business, repairing containers. - On December 2008, Transimex - Saigon was licensed by State Securities Committee to issue 1,904,400 shares certificates for increase of charter capital of Company. - On March 2009: Transimex - Saigon officially put TMS Building into operation.

12 NIPPON EXPRESS (VIETNAM) CO., LTD. Nippon Express (Vietnam) Co., Ltd. Is a joint venture company between Transimex Saigon (50%) and Japan-based Nippon Express (50%). After nearly 9 operating years, Nippon Express Vietnam Joint Venture Company has been developing day by day and gaining a considerable market sharing in Vietnam. Now, the company has expanded its branch so as to expand its import-export forwarding in the North. As of 31/12/2008, total investment capital of Transimex - Saigon in Nippon Express Vietnam increased by about 8.4 times compared to its initial contribution capital. In 2008, post-tax profit was 32.7 billion VND, forecasted to be divided to each party at 2.1 billion VND. The profit amount of 28.5 billion VND will be retained for business development investment. ICD TRANSIMEX It was built on an area of about 100,000m 2 in 1997 with a system of warehouses, yards, wharfs facilitating to 1,000DWT barges, a system of 4 onshore-cranes with total lifting capacity of 162 tons. ICD is divided into functional zones including container depot, yards for reefer container yard, goods loading and customs checking, bonded warehouses and CFS, quay, office and customs zone. Now, the stevedoring facilities at ICD include 10 container stackers, 12 diesel forklifts for goods loading, 4 electric forklifts, 10 of trailer-trucks, vans and other specialized means. According to the 5-year development plan proposed by the company s board, ICD Transimex will become a modern depot of international standards, increasing the cargoes handling capacity to 1.5 times higher than present. TMS BUILDING Constructed since March 2007 and anticipated to be officially put into operation in March 2009, the building has an area of 8,500m 2 including 14 floors, including two basements and one entresol. Located at 172 Hai Ba Trung St., District 1, TMS Building is of a convenient traffic place suitable to any enterprises seeking to stable and long-term office leasing. 12

13 STRENGTH CONSTITUTING FACTORS TRANSIMEX SAIGON HUU NGHI JOINT STOCK COMPANY It is an company in association between Transimex Saigon - Huu Nghi Company and Haneco Hanoi specializing in bonded-warehouse business and inspection area of import-export goods, in which Transimex - Saigon invests 25 billion VND for 5 years. The associated company with its head office located at Dinh Tram Industrial Park, Bac Giang province is a strategic place on import-export traffic route with China. FOREIGN TRADE TRANSFORWARDING CO., LTD It is a company engaged in multimodal transport in container and cargoes on domestic and international routes. With initial investment capital of 16 billion VND, it has been equipped a variety of new model trailer-trucks, light and medium-tonnage trucks enabling to meet any transport demands of the customers. The company s expected revenue in 2009 is billion VND. SAIGON MARINE CORPORATION (SHC) It is listed on HOSE and has been appraised as the leading company in international forwarding and transport by sea and inland waterway in Vietnam. At present, Transimex - Saigon is paying attention to investment in Saigon Marine Corporation with the strategy for all-sided, stable and long-term cooperation in forwarding and waterway transport. On March 27, 2009, in the SHC shareholder s meeting 4 members of Transimex - Saigon s Board of Management and Board of Directors were elected in Board of Management and two in Board of Supervisors of SHC. Then one member was assigned as General Director, which will enhance strength in business cooperation of both companies. 13

14 ORGANIZATION DIAGRAM SHAREHOLDER S MEETING COMMITTEE OF CONTROLLERS BOARD OF MANAGEMENT SALES & MARKETING DEPT. GENERAL DIRECTOR AGENCY COOPERATION DEPT. LOGISTICS DEPT. V. GENERAL DIRECTOR ICD WAREHOUSE SERVICE V. GENERAL DIRECTOR LOGISTICS SERVICE HA NOI BRANCH HAI PHONG BRANCH ICD WAREHOUSE CENTER DA NANG BRANCH TRANSIMEX SAIGON - HUU NGHI Co. CHIEF ACCOUNTANT ACCOUNTANT DEPT. FINANCIAL DEPT. HR & ADIMIN DEPT. PLANNING INVESTMENT DEPT. TMS BUILDING MANAGEMENT AND EXPLOITATION DEPT. TRANS-FORWARDING TRANSPORT Co.,Ltd 14

15 ORGANIZATION AND HUMAN RESOURCE BOARD OF MANAGEMENT Mr. Bui Tuan Ngoc: B.A in foreign trade economics, engineer in construction. Taking part in TMS Directors Board since 2006, holding TMS Board s Chairman since April Since November 2008, temporarily assuming CEO of Transimex - Saigon. Mr. Nguyen Hong Quang: Engineer in techniques, 14 years working in forwarding sector. Participating in TMS Board since March He is now TMS Board s Vice Chairman. Mr. Le Hung: B.A in business administration, 11 years working in forwarding sector. Participating in TMS Board since March Mr. Nguyen Viet Cuong: B.A in economics, 11 years working in investment sector. Take part in TMS Board since March Mr. Huynh Minh Thao: 26 years working in forwarding sector with TMS and NEV; being the founder, taking part in TMS Board since He is currently the Vice CEO of Nippon Express VN. 15

16 MEMBER OF THE BOM Mr. Bui Tuan Ngoc Chairman and Acting General Director Mr. Nguyen Hong Quang Vice Chairman Mr. Le Hung Member Mr. Nguyen Viet Cuong Member Mr. Quynh Minh Thao Member BOARD OF SUPERVISORS Mr. Nguyen Cong Hieu Chief Supervisor Ms. Nguyen Thi Dam Member Mr. Hoang Phong Giao Member 16

17 ORGANIZATION AND HUMAN RESOURCE GENERAL DIRECTOR BOARD Mr. Nguyen Tri Hung Vice General Director CHANGES ON THE BOARD Mr. Nguyen Tri Duc Vice General Director Mr. Hoang Cong Phuoc Chief Accountant In 2008, General Director Board of Transimex-Saigon have 3 members including Mr. Bui Tuan Ngoc Board Chairman cum Acting CEO, Mr. Nguyen Tri Hung - Vice General Director in Sales-ICD services - with more than 15 experience years of working with international forwarders and transporters, Mr. Nguyen Chi Duc - Vice General Director in Sales - Logistics Services - with more than 15 experience years of working with Transimex - Saigon. Such new appointment is a sound and necessary move to cope with challenges on economic crisis and business competition, but most importantly, to express Transimex - Saigon s commitments to the shareholders and customers to the constant innovation for development. 17

18 ORGANIZATION AND HUMAN RESOURCE INTERESTS OF MEMBERS OF THE BOARD OF MANAGEMENT AND BOARD OF SUPERVISORS The Board of Management was elected by the shareholders meeting, acting on behalf of all shareholders for leading and managing the company, having the rights and obligations as stipulated by Article 30 of the corporation s Charter. According to the shareholders meeting s resolution, remuneration and working expenses of the Board will be 3% of post-tax profit covering: - Any expense for holding regular meetings of the shareholders, the Board of Management and Board of Supervisors. - Any expense for entertainment, advertising and promotion in relation to stock and stock market. - Any remuneration and everyday expenses to the Board s members. NUMBER OF EMPLOYEES, POLICIES TO LABORS As of 31 December 2008, there are 432 employees working for the corporation. The corporation has strictly complied with the State s regulations on contribution to social and health insurance funds for the labors, and with the clauses in the collective employment agreement. Together with holding courses on improving professional and politic background, and training of labor safety, the corporation is always paying attention to the measures for enhancing its employees mental living such as short-day vacations, sport, culture and movement operations, annual health examination. 18

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21 SHAREHOLDER INFORMATION AND COMPANY MANAGEMENT»»»» Shareholder Information Company management

22 OWNING RATIO OF SHARE AND CHANGES IN YEAR OF BOARD OF MANAGEMENT N o Owner s name of share Owned share Addition Total Changes Owned share % Ratio 1 Bui Tuan Ngoc 488, Nguyen Hong Quang 4, Vietnam Ventures Co., Ltd (Representative: Nguyen Viet Cuong) 300, Huynh Minh Thao 127, Total 920, SHAREHOLDER S STRUCTURE OF TRANSIMEX SAIGON (To Dec.31,2008) N o Items Shares Value (VND) Ratio (%) Total Shares: 6,348,000 63,480,000, The Board Member 920,615 9,206,150, The shareholders own over 5% shares: 3,668,381 36,683,810, Domestic shareholders 2,005,793 20,057,930, Foreign shareholders 1,662,588 16,625,880, The shareholders own under 5% shares: 2,679,619 26,796,190, Domestic Shareholders 1,231,691 12,316,910, Foreign shareholders 1,447,928 14,479,280, Note: Nominal value VND 10,000/per share (Data based on official document No 202 &203 provided by HCMC S.T.C dated 8 jan.2009) 22

23 SHAREHOLDER INFORMATION INTRODUCTION OF THE ACTIVITIES OF THE BOARD OF MANAGEMENT Shareholders general meeting on 29 March 2008 elected the Board of Management for the tenure of , including 7 members. The Board of Management has elected the Chairman and Vice-Chairman, at the same time, division of sections as follows: Section: ADMINISTRATION OF BUSINESS, FINANCE, PERSONNEL AND SALARY Section: PLANNING-INVESTMENT-CAPITAL CONSTRUCTION Section: RESEARCH & DEVELOPMENT OF THE MARKET, DEVELOPMENT POLICY Section: JOINT-VENTURE, ASSOCIATION In order to perform duties assigned by Shareholders general meeting, the Board of Management has conducted 5 sessions and 5 times for taking opinions in writing to decide the following matters: - To elect Chairman, vice-chairman of the Board of Management, Board of Directors of the company. - To pass and approve report on business of the quarter, year 2008 and norms of plan for 2009, addition to the lines of business for the company, projects for long-term investment into the companies of the same business lines and the lines in support to Transimex, to modify the company s charter, to change financial fiscal year, salary fund of 2009, the progress of issue and plan for distribution of shares. - To approve resignation from membership of the Board of Management made by two members. - To appoint two new members of the Board of Management as substitutes. Result of supervising activities of Board of Director: In process of supervision, the Board of Management realizes that the Board of Directors has developed effectively the resolutions of the Board of Management, timely reported and provided the information and adjusted the process of implementation in accordance with actual situation and requirements of the Board of Management. In 2009, the Board of Management shall carry out the following works: - To hold Shareholders general meeting annually for , to put forward to the meeting the issues within decision power of General meeting of shareholders. - To strengthen performance of regulations on management of the company applied to companies listed on stock exchange to streamline company administration. - To hold periodical meetings at least once a quarter to discuss, approve reports, plan, to direct in effective and timely manner and expand the implementation of resolutions of the Board of Management. - To supervise closely and directly in timely manner the operations of Board of Directors, especially in tasks of expansion of new investment projects. - To hold extraordinary meetings to deal with arising matters within competence of the Board of Management. INTRODUCTION ABOUT ACTIVITIES OF THE BOARD OF SUPERVISORS Immediately after elected by General meeting of shareholders dated 29 March 2008, on 31 March 2008, the Board of Supervisors of 3rd term ( ) held the meeting to assign works and elect Mr. Nguyen Cong Hieu as the Chief of the Board of Supervisors of Transimex - Saigon. Consecutively from 22 April 2008 until now, the Board of Supervisors held periodical and extraordinary meetings in program framework to consider operational situation, result of business in the quarter, financial statements of 2008 of the company provided by Accounting Department, update and put forward and timely remedy the errors in management, supervision, administration of the company. 23

24 SHAREHOLDER INFORMATION DISTRIBUTION OF PROFITS, EXTRACTED ON AND MAKING OF FUNDS AND DISTRIBUTION OF DIVIDEND N o Norm Execution in 2008 I Profits of execution in 2008 Total profits before tax 35,517,640,674 Payable Corporate Income Tax 8,141,138,424 Profits after tax 27,376,502,250 II UNIT: VND Distribution of profits as follows Profits extracted for making funds 9,439,735,259 15% for business development investment fund 4,045,600,825 5% for financial reserve fund 1,348,533,608 12% for fund for reward and welfare 3,236,480,661 3% for fund of activities fees for the Board of Management, Board of Supervisors 809,120,165 The remaining profits 17,936,766,991 Distribution of dividend (Year 2008=15%) 9,522,000,000 Undivided profits 8,414,766,991

25 COMPANY MANAGEMENT ACTIVITIES TO STRENGTHEN EFFICIENCY IN THE COMPANY ADMINISTRATION In context of global economic recession and severe competitiveness at present, to ensure sustainable existence of the company as well as to create foundation for future development of the company, then top priority is given to reasonableness and efficiency in the company administration. For management manner: having improved and reassigned leading posts, to create self-motivation, creativeness according to new tendency. For personnel: to reduce some unnecessary posts in the working process. To access directly labor productivity basing on position and responsibility in process of operation. At the same time, to restructure fund of salary, policies regarding reward reasonably and standards for valuing employees levels, methods to improve professional skill, improve professional knowledge of employees. For operating funds: to build concrete norms of business activities and regulations on using budget. To adjust budget reasonably according to demand for activities and the market impact. For regulations, process of operation: having issued Regulations on company administration in accordance with the provisions of the law and specific operation of the company. To set up Board of Internal Supervisors with the compliance with ISO procedures. To streamline professional operation process and management work, application of ERP software to business administration. For financial risk, the company takes the following steps: - To issue regulations on setting up, approving and controlling budget monthly, quarterly, annually according to norm of business activities approved by General meeting of shareholders and the Board of Management. - To issue regulations on controlling limit, term of paying the debt for the whole company. - To set up and issue regulations on operation of the Board of Internal Supervisors. The steps being practical and suitable with the new present situation in business administration enable the company to have flexible move in the present economic context, to lay foundation for long-term and stable development in future.

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27 BOD s REPORT»»»»»»»» Report of the General Director Situation of implementation of investment plan in 2008 and plan for 2009 Business plan in 2009 Development strategy in period of

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29 REPORT OF THE GENERAL DIRECTOR SITUATION OF IMPLEMENTATION OF BUSINESS IN 2008 In 2008, the global economic recession affected adversely production, business, growth of economy and investment environment, influencing directly on the business operation of the company. To implement resolutions of annual General Meeting of shareholders dated 29 March 2008, the Board of Management of 3rd term ( ) have directed the Board of Directors to focus intensively on logistics, to continue to modernize infrastructure of warehouse and container yard of ICD, works of strengthening efficiency of business administration, to timely meet the need of customers in domestic and international forwarding. Although facing with many difficulties in the market, but the company still made significant progress in business and affirmed its position on the market. Achievements: In 2008, the corporation has surpassed its planned target, particularly in profit criteria, broken down as follows: UNIT : VND Executed in 2008 Compared with 2008 plan I. Norms for profits Total turnover 174,903,899, % Profits before tax 35,517,640, % Profits after tax 27,376,502, % Ratio of profits before tax per total turnover (%) Dividend II. Norms of forwarding Volume of forwarding (Ton) 934, % Yield (TEU) 23, % III. Norms of transport - warehouse Volume of transport (Ton) 2,329, % Volume of rotation (Ton/km) 4,993, % Yield of laden container through the port (Teu) 202, % Yield of empty container through port (Teu) 149, % Bonded warehouses - Import (m 3 ) 30, % - Export (Ton) 3, % CFS Warehouse (m 3 ) 192, % 29

30 REPORT OF THE GENERAL DIRECTOR Investment projects having been performed: To become strategic shareholder of Saigon Maritime Joint-Stock Company. To complete construction and to carry out effectively the exploitation of office building of 14 floors at 172, Hai Ba Trung Street, District 1, HCMC. To buy new 10 trucks and 20 trailers 40 for the project on establishment of Foreign trade Transforwarding Co., Ltd. Orientation and duties on business for 2009 In 2009, then company shall continue to meet with many difficulties, inflation and increase in cost of raw material - the consequence of global economic recession. In order to reach the targets of business in 2009, the company shall focus on flexible management to suit actual condition, with a view to maintaining growth and ensuring jobs with stable income for the employees Main tasks: - To strive for business plan: a. Total turnover : billion VND b. Profit after tax : billion VND - To coordinate with Joint-Stock Companies, joint-venture, association to develop the strength, expand the business line of the company, such as Transimex Saigon - Huu Nghi Joint-Stock Company, Saigon Maritime Joint-Stock Company, Vietnam Nippon Express company. - To expand gradually investment projects in the 5 year development plan of the company. In which, priority will be given to the projects bringing back high economic efficiency just in the time to come. - To focus on development of companies specializing in trade directly under the company such as the Foreign Trade Transforwarding Co., Ltd. To streamline overhaul, maintenance of equipments of infrastructural facilities, safe measures for the goods, labor safety and fire prevention and fighting at ICD. - To implement in details the measures for ameliorating the efficiency of management of company and risk management in the present economic context. Best Regards, Acting General Director Bui Tuan Ngoc 30

31 SITUATION OF IMPLEMENTATION OF INVESTMENT PLAN IN 2008 AND PLAN FOR 2009 IMPLEMENTATION OF INVESTMENT PLAN IN 2008 Items balanced till 31December 2008 N o Items Budgeting Paid Capital sources 1 Warehouse, architecture 19,488,092,602 Additional capital and loan capital 2 Transport means 20,015,626,908 Additional capital 3 Tools for management 822,396,126 Additional capital 4 Software for managing container 32,500,000 Additional capital UNIT: VND The unfinished items until 31December 2008 N o Items Budgeting Paid Capital sources 1 Warehouse, architecture TMS Building 69,801,094,761 USD 4,478,230 62,139,434,179 UNIT:VND Additional capital and capital for issuance of shares INVESTMENT PLAN OF CAPITAL CONSTRUCTION FOR 2009 UNIT: VND N o Items Budgeting Capital sources 1 Warehouse, architecture: - ICD in 2009: Repairing, upgrading yards 1,200,000,000 Additional capital Patching for roads 360,000,000 Additional capital Maintenance and anti-leaking for warehouses 320,000,000 Additional capital 2 Transport means 10,000,000,000 Issued capital and loan capital 3 Software for managing (ERP) 5,000,000,000 Additional capital 31

32 BUSINESS PLAN FOR 2009 Items I. Financial norms Executed in 2008 (Dong) Plan in 2009 Ratio (2009/2008) Total turnover 174,903,899, ,500,000, % Deductions 61,020,382 UNIT: VND Net turnover from trading and service 174,842,878, ,500,000, % Cost of service 139,207,460, ,400,000, % Gross profits for supply of service 35,635,418,535 38,100,000, % Turnover from financial activities 14,751,230,498 5,300,000, % In which: Income after tax from capital contribution of Joint Venture 6,305,378,626 2,000,000, % Financial expenses 1,886,845,410 1,460,000, % Expenses of selling 242,363, ,000, % Expenses for Enterprise s management 13,719,504,611 9,430,000, % Net profits from trading activities 34,537,935,674 31,640,000, % Other income 1,026,530,783 20,000, % Other expenses 46,825,783 Other profits 979,705,000 20,000, % Total accounting profits before tax 35,517,640,674 31,660,000, % Total profits subject to Corporate Income Tax 29,726,783,221 29,660,000, % Expenses of current Corporate Income Tax 8,323,499,302 7,415,000, % Expenses of the deferred Corporate Income Tax -182,360, % Profits after Corporate Income Tax(*) 27,376,502,250 24,245,000, % Dividend / 01 share (**) 1,500 2, % Ratio of profits before tax / Total revenue 20,31% 19,85% 97.75% II. Volume of service 1. Service of agency and forwarding of export-import goods (Tons converted) 934, , % 2. Service of transport: volume of transport (Ton) 2,329,480 1,500, % 3. Service of exploitation of ICD - Yield of laden container going through port (Teu) 202, , % - Yield of empty container going through port (Teu) 149, , % - Yield of goods through warehouse (m 3 ) 204, , % - Yield of goods going through warehouse (Ton) 14,462 12, % - Area of using yards (m 2 ) 605, ,000 90% 32 Notes:( * ) the after-tax profits in year 2008 reaches 27.3 billion, including 6.6 billion dong as the profits from the profit division from previous years and additional profits from 2007 backwards of Nippon Joint Venture Company. (**) Plan for 2009 : VND 1,000 in cash & VND 1,000 in share.

33 STRATEGY FOR THE DEVELOPMENT OF TRANSIMEX - SAIGON IN PERIOD OF I. STRATEGY FOR THE DEVELOPMENT Transimex - Saigon always defines logistics to be main activity via construction of centers and networks of providing logistics services at the key economic zones, Industrial Zones, border gates, ports nationwide. Transimex - Saigon wishes to become provider of the whole services of logistics to customers. Besides, Transimex - Saigon will invest in the companies of the same business lines supporting the company s main business activities in form of strategic shareholder, exploit and develop existing business facilities such as ICD Transimex, TMS building... Transimex-Saigon undertakes:»» To ensure providing service with the best quality for customer»» To maintain stable, robust and fast growth rate»» To maintain its position as one of two leading enterprises regarding scope of business, quality of service and practical experience in field of logistics in Vietnam. II. SPECIFIC OBJECTIVE 1. Chance and challenge for Transimex - Saigon In 2009, the import turnover is anticipated to decrease due to effect of global economic crisis. This will affect adversely growth rate of the sector of containerized transport in particular and logistics in general because the international trade always has a direct proportionality to the demand for container transport. According to news from website Support VN, the growth rate in 2009 of logistics will decrease by 30%, light recovery in 2010 with the same output as in 2008 and will reach growth rate 15-20% from Besides, the potentiality of exploiting goods at Vietnam seaports, especially at the Southern key economic zones, is very great but weakness and shortcoming in infrastructure and planning, transport capacity have hindered the development of this logistics service. However, with policy for moving 5 sea ports such as Saigon New Port, Nha Rong port, Khanh Hoi port, Tan Thuan Dong port, Rau Qua port to form 3 new port clusters of HCMC, Ba Ria Vung Tau and Dong Nai, it will enable ports to set up system of classifying the goods with fast processing, in close association with ICD Transimex lying far inland by various means to create firm position for sea port all year-round. Facing such chance and challenge, Transimex - Saigon realizes that it should expand the operation scope to sea ports, key economic zones, in immediate time, it is required to upgrade and ameliorate infrastructure at ICD Transimex to keep up with growth in future. 2. Specific objective For sustainable development as well as maximizing the value invested by shareholders, Transimex - Saigon will set up specific following objectives: Items Unit Turnover Billion VND Profit after tax Billion VND Rate of profit after tax/ % 15% 15% 15% 15% 15% Turnover Dividend % 20% 15% - 22% 33

34 In order to reach above mentioned objectives, Transimex - Saigon should: 2.1. Develop human resource To allot annual budget for training, improving professional skill, knowledge, occupational ethics, behavior culture for existing human resource, at the same time, to build and carry out policies attracting human resource with high quality to be ready for meeting demand for higher development of the company. To upgrade infrastructure of IT via development and operation of system of advanced software system such as project for furnishing softwares for business administration ERP with costs about 5 billion to be carried out from 2009 to With a large amount spent for the project for investment in humans, it has shown the care given by the Board of Director in improving ability for management and development of quality of human resource to contribute to competition against other business rivals To build up a strong trade name In order to build up a strong trade name, besides striving for improving and ameliorating quality of service to maximize benefit for customer, to build and promote trade name effectively, the company shall focus more on creation and standardization of components of trade name such as trade mark, logo, slogan Selected concentrated investment Increase of capital to expand trading services in Nippon Express (Vietnam) Joint-venture Company With business efficiency of Nippon Express (Vietnam) Joint-venture company having been proven in past time, it has urged Transimex - Saigon to enter into stronger association with Nippon partner for investment of more capital in expanding the business Investment in companies with the same supporting business lines in form of strategic shareholders To enter into joint-venture, association with companies with the same business lines with a view to increasing rate of ownership in part and then in whole of the company, which can be called Mergers & Aacquisition M&A, is an important form of investment which Transimex - Saigon shall forward strongly in the coming time because it will enable Transimex - Saigon to become more stronger in scale, trade name, human resource and competitiveness. Actually, M&A promises an expansion of the market share via taping new market with maximum- reduced expense for exploitation while increase in business efficiency by making the most of financial resource, trade secret, common competitive strategy and the most important is that the value of share of Transimex - Saigon shall increase and we can raise more capital Improving transport capacity of Foreign Trade Transforwarding Company In order to meet demand for transporting goods from the South to the North, down to the provinces of the East, Mekong delta.in the coming time, the company defines that it should be a multimodal transport company (waterways, road, ) and develop strongly means of transport reaching 70 trailer- trucks, 50 trucks, 150 trailers, 20 self-propelled barges for transporting containers on river...in Investing intensively in bonded warehouse area and customs check-point in Bac Giang Transimex Saigon Huu Nghi Joint-Stock Company with the main business infrastructure as the bonded warehouse and customs check-point came into operation in 2009 in Dinh Tram, Viet Yen district, Bac Giang province, thanks to its favourable geographical location lying between National Road No. 1A, national road no. 37 crossing, 10 km from Bac Giang city, 40km from Ha Noi, 40km from Noi Bai international airport, 110km from Hai Phong city, 120km from Huu Nghi border gate (Lang Son), it satisfies need of import-export of the enterprises in Bac Giang province and neighboring provinces. The project is expected to have the investment capital of 25 billion and will be carried out from 2009 to To strengthen and develop existing branches, to expand new agencies and branches a. Da Nang branch: To build system of warehouse and freight yard with area of 4ha at Hoa Cam district, Son Tra (Da Nang); to invest in construction of warehouse at Da Nang Port (Tien Sa Song Han Lien Chieu) to receive amount of the goods from the corridor of the west-east road, to serve the development of Industrial Zones of Lien Chieu, Hoa Khanh, Da Nang, to develop the key economic zones of the Central, Highlands. To develop existing material facilities into office for lease. To improve capacity of transport to reach 10 trailer-trucks, 15 trucks, 20 trailers. b. Ha Noi branch: To upgrade material facilities to reduce expenses, increase business efficiency by moving existing office to new location with more favorable conditions. Entering into joint-venture with Northern Transport Company to develop air service and transport of goods in northern area. To improve capacity of transport to reach 15 trailer-trucks, 20 trucks, 30 trailers. To invest in construction of warehouse, freight yard in Industrial Zones such as Minh Quang Industrial Zone (Hung Yen),... 34

35 c. Hai Phong branch: To improve capacity of transport to reach 10 trailer-trucks, 15 trucks, 20 trailers. To focus on development of system of warehouse, freight yard in Hai Phong because this is area linking with Hai Phong port, with the biggest volume of cargoes among all northern ports. From Hai Phong port, we may transport goods to sea ports world wide by sea or internal roads to economic zone of Vietnam and South of China by waterways, railway or road in quick and effective manner. d. To establish, expand agencies and branches in Mekong River Delta such as Can Tho, An Giang, Kien Giang Project for planning of ICD Transimex As above mentioned, to lift Transimex - Saigon to new high level, we should quickly improve, upgrade infrastructure and equipment of ICD at Binh Tho hamlet, Truong Tho ward, Thu Duc district with the area of about 10ha to form CFS warehouse cluster, bonded warehouse, refrigerated store, container yard in modern manner to improve efficiency of usage and exploit most the existing area. The investment project shall be performed with total invested capital about 190 billion VND. With this project coming into operation, we will have area of warehouse and yard for containers increased by about 20% and the output of exploiting warehouse and yard service at ICD Transimex will increase by about 50% compared with the existing capacity To enter into joint-venture with partners to invest in construction of project for trade in warehouse and freight yard at strategic location Project for investment in construction of goods inspection yard at Moc Bai border gate Yard for inspecting the goods is located in urban area of Moc Bai border gate, Loi Thuan village, Ben Cau district, Tay Ninh province. Building area is expected to be about 3ha with invested capital about 30 billion and carried out since The investment in area of inspecting import-export goods shall be under the mode of one door, one stop at Moc Bai border gate to meet requirements for transport, exchange of goods through border between Vietnam and Cambodia. Project for investment in construction of the business area of warehouse and freight yard service of Cat Lai The project has the area of about 6ha, with the invested value of about 200 billion VND, period of implementation from 2010 to The project is located just beside Cat Lai port at Cat Lai ward, district 02, HCMC. This is a place assessed to have favorable economic location thanks to its lying beside Industrial Zones and Export Processing Zones of HCMC, Binh Duong, Dong Nai and Ba Ria -Vung Tau. With the market share of import export containers going through accounting for about 65% of the area of southern ports and more than 42% of the whole country, the activities in forwarding goods and releasing ship at Cat Lai port play a very important role in trade of import-export of the South and the whole country. The project for investment in construction of the business area of warehouse and freight yard service of Hiep Phuoc The project is located beside Hiep Phuoc port, along Soai Rap River, with the space floor area of about 5ha, the invested value of about 100 billion VND, period of investment from 2010 to Considering geographical aspect, area of Hiep Phuoc - Nha Be is both gateway to the East Sea and the area contiguous to Mekong River Delta, so it is very convenient for waterways and roads traffic. The south-north road axis connects Hiep Phuoc to the inner city, then Phu My bridge will connect Nguyen Van Linh Avenue (district 7) with district 2, forming outer ring of HCMC, creating a connection with Mekong River Delta and South East area. The project for investment in area for operation of warehouse and freight yard service of Cai Mep The project for warehouse and freight yard is of Cai Mep port (Thi Vai river), in the area of Tan Thanh district, Ba Ria Vung Tau. The area of Cai Mep port serves transport via Ba Ria Vung Tau, at the same time, facilitates the trade in import-export at home and abroad. The space floor under investment is expected to be about 5ha, with the value invested of about 100 billion VND and carried out from The project for investment in construction of the business area in warehouse and freight yard services of Chu Lai open economic zone: The Chu Lai open economic zone is of Quang Nam province, with the very favorable location for domestic and international traffic, on national road no. 1A, south-north railway, and the west-east corridor for the countries of Mekong river sub-region, on the balcony of the international sea way, attached to Chu Lai airport and Ky Ha port. The investment in Chu Lai open economic zone is a practical solution for meeting the demand of storage, transport of goods in transit of this key economic zone of Central Vietnam. The land area under investment is expected to be about 5ha with invested value about 50 billion VND and the work to be started from Besides, Transimex-Saigon shall have project for investment in the economic-trade zone at Lao Bao border gate, Huong Hoa district, Quang Tri province because this area is an important point on economic corridor of west-east. It is border gate of Vietnam on border line between Vietnam and Laos and project for investment in the area of Huu Nghi border gate contiguous to China. 35

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37 FINANCIAL REPORTS»»»»»»»»»» Auditor s report Balance sheet Income statement Cash flow statement Notes to the financial statements

38 AUDITOR S REPORT No.: 0058/2009/BCTC-KTTV ON THE FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED 2008 OF TRANSFORWARDING WAREHOUSING JOINT STOCK CORPORATION THE SHAREHOLDERS, THE BOARD OF MANAGEMENT AND THE DIRECTORS We have audited the accompanying financial statements for the fiscal year ended 2008 of Transforwarding Warehousing Joint Stock Corporation, including the balance sheet as of 31 December 2008, the income statement, the cash flow statement and the notes to the financial statements for the fiscal year then ended, which were prepared on 21 January 2009 (from page 97 to page 119). The preparation and the presentation of these financial statements are the responsibility of the company s management. Our responsibility is to express an opinion on these financial statements based on our audit. Audit s background Our audit is conducted in accordance with the Vietnamese Auditing Standards. These standards require that we plan and perform the audit procedures to obtain a reasonable assurance that the financial statements are free from material mistakes. The audit is developed on the basis of our performing the sampling method as well as applying the necessary examinations and tests of evidences supporting the amounts and the disclosures in the financial statements. The audit also includes our assessing the company s compliance with the prevailing accounting standards and system, the accounting principles and methods applied, the material estimates and judgments of the company s management as well as our evaluating the overall presentation of the financial statements. We believe that our audit has provided reasonable bases for our opinion. Auditor s opinion In our opinion, the financial statements referred to above give a true and fair view, in all material respects, of the financial position as of 31 December 2008, the business results and the cash flows for the fiscal year then ended of Transforwarding Warehousing Joint Stock Corporation in conformity with the prevailing Vietnamese accounting standards and system as well as other related regulations. This report is made in two languages (Vietnamese and English), both of equal validity. The Vietnamese version will be the original for reference when needed. For and on behalf of AUDITING AND CONSULTING CO., LTD. (A&C) Bui Van Kha Deputy General Director Audit Certificate No. Ñ.0085/KTV Do Thi Mai Loan Auditor Audit Certificate No. Ñ.0090/KTV Ho Chi Minh City, 25 th February

39 BALANCE SHEET As of 31 December 2008 UNIT: VND ASSETS Code Note Ending balance Beginning balance A - CURRENT ASSETS 44,184,271,611 98,849,112,159 I. Cash and cash equivalents 110 V.1 22,550,894,201 21,021,153, Cash ,550,894,201 21,021,153, Cash equivalents II. Short-term investments ,655,000 58,102,046, Short-term investments 121 V.2 254,655,000 58,102,046, Provisions for devaluation of short-term investments III. Accounts receivable ,512,909,217 10,940,895, Receivable from customers 131 V.3 8,501,033,492 8,490,384, Prepayments to suppliers 132 V.4 346,442, ,644, Short-term inter-company receivable Receivable according to the progress of construction contracts Other receivable 135 V.5 2,665,433,045 1,888,866, Provisions for bad debts IV. Inventories 140 V.6 2,574,008,190 2,101,820, Inventories 141 2,574,008,190 2,101,820, Provisions for devaluation of inventories V. Other current assets 150 7,291,805,003 6,683,195, Short-term prepaid expenses 151 V.7 1,219,530,471 3,591,543, VAT to be deducted 152 3,324,870,927 1,150,632, Taxes and other accounts receivable from the State 154 1,000,000 9,439, Other current assets 158 V.8 2,746,403,605 1,931,579,871 For the fiscal year ended 31 December 2008 Balance sheet (cont.) 39

40 Balance sheet (cont.) ASSETS Code Note Ending balance Beginning balance B - LONG-TERM ASSETS ,086,855, ,364,623,392 I. Long-term accounts receivable Long-term accounts receivable from customers Working capital in affiliates Long-term inter-company receivable Other long-term receivable Provisions for bad debts II. Fixed assets ,460,675, ,988,585, Tangible assets 221 V.9 91,234,040,352 66,743,679,592 Historical costs ,419,123, ,367,002,054 Accumulated depreciation 223 (69,185,082,899) (53,623,322,462) 2. Financial leasehold assets Historical costs Accumulated depreciation Intangible assets 227 V.10 2,737,277,502 2,738,280,403 Initial costs 228 2,924,068,000 2,891,568,000 Accumulated amortization 229 (186,790,498) (153,287,597) 4. Construction-in-progress 230 V.11 68,489,357,179 39,506,625,342 III. Investment property Historical costs Accumulated depreciation IV. Long-term investments ,935,581,500 4,994,800, Investments in affiliates Investments in business concerns and joint ventures 252 V.12 9,600,000,000 4,944,800, Other long-term investments 258 V.13 9,731,915,555 50,000, Provisions for devaluation of long-term investments 259 (396,334,055) - V. Other long-term assets ,598, ,238, Long-term prepaid expenses Deferred income tax assets 262 V ,493, ,132, Other long-term assets 268 V ,105, ,105,140 TOTAL ASSETS ,271,127, ,213,735,551 For the fiscal year ended 31 December 2008 Balance sheet (cont.) 40

41 Balance sheet (cont.) UNIT: VND LIABILITIES AND OWNER S EQUITY Code Note Ending balance Beginning balance A - LIABILITIES ,715,077,301 32,649,759,221 I. Current liabilities ,215,558,001 22,537,354, Short-term debts and loans 311 V.16 6,461,552,194 3,232,000, Payable to suppliers 312 V.17 2,607,327, ,031, Advances from customers ,160, Taxes and other obligations to the State Budget 314 V.18 2,796,029,593 2,161,353, Payable to employees 315 V.19 5,762,127,261 6,821,351, Accrued expenses 316 V.20 1,312,477, ,188, Inter-company payable Payable according to the progress of construction contracts Other payable 319 V.21 4,935,883,726 9,130,429, Provisions for short-term accounts payable II. Long-term liabilities 330 6,499,519,300 10,112,404, Long-term accounts payable to suppliers Long-term inter-company payable Other long-term payable 333 V.22 35,808, ,808, Long-term debts and loans 334 V.23 6,463,710,500 9,695,710, Deferred income tax payable Provisions for unemployment allowances ,885, Provisions for long-term accounts payable B - OWNER S EQUITY ,556,049, ,563,976,330 I. Owner s equity ,761,719, ,952,817, Capital 411 V.24 63,480,000,000 63,480,000, Share premiums 412 V.24 73,135,477,853 73,135,477, Other sources of capital 413 V Treasury stocks Differences on asset revaluation Foreign exchange differences Business promotion fund 417 V.24 22,277,999,640 18,232,398, Financial reserved fund 418 V.24 5,687,159,109 4,338,625, Other funds Retained earnings 420 V.24 26,181,082,558 17,766,315, Construction investment fund For the fiscal year ended 31 December 2008 Balance sheet (cont.) 41

42 Balance sheet (cont.) LIABILITIES AND OWNER S EQUITY Code Note Ending balance Beginning balance II. Other sources and funds 430 4,794,330,616 3,611,158, Bonus and welfare funds 431 V.25 4,794,330,616 3,611,158, Sources of expenditure Fund to form fixed assets TOTAL LIABILITIES AND OWNER S EQUITY ,271,127, ,213,735,551 OFF-BALANCE SHEET ITEMS ITEMS Code Note Ending balance Ending balance 1. Leasehold assets Materials and goods kept or processed for others Goods deposited by others Bad debts already treated Foreign currency USD 504, , Estimates for non-business and project expenditure - - Depreciation fund - - Ho Chi Minh City, 21 January 2009 Hoang Cong Phuoc Financial Manager Chief Accountant Bui Tuan Ngoc Acting General Director For the fiscal year ended 31 December 2008 Balance sheet (cont.) 42

43 INCOME STATEMENT FOR THE FISCAL YEAR ENDED 2008 UNIT: VND ITEMS Code Note Current year Previous year 1 Sales 01 VI.1 174,903,899, ,209,257,473 2 Deductions 02 VI.1 61,020,382 19,850,837 3 Net sales 10 VI.1 174,842,878, ,189,406,636 4 Costs of goods sold 11 VI.2 139,207,460, ,313,782,961 5 Gross profit 20 35,635,418,535 33,875,623,675 6 Financial income 21 VI.3 14,751,230,498 4,494,124,704 7 Financial expenses 22 VI.4 1,886,845,410 1,350,750,211 In which: Loan interest expenses 23 1,421,850,938 1,192,319,331 8 Selling expenses 24 VI.5 242,363,338-9 Administrative overheads 25 VI.6 13,719,504,611 12,636,712, Net operating profit 30 34,537,935,674 24,382,285, Other income 31 VI.7 1,026,530, ,390, Other expenses 32 VI.8 46,825,783 1,827,579, Other profit/(loss) ,705,000 (1,429,188,300) 14 Total accounting profit before tax 50 35,517,640,674 22,953,096, Current corporate income tax 51 8,323,499,302 5,806,104, Deferred corporate income tax 52 VI.9 (182,360,878) 164,656, Profit after tax 60 27,376,502,250 16,982,335, Earning per share 70 VI.10 4,313 3,199 Ho Chi Minh City, 21 January 2009 Hoang Cong Phuoc Financial Manager Chief Accountant Bui Tuan Ngoc Acting General Director 43

44 CASH FLOW STATEMENT (Direct method) For the fiscal year ended 2008 I. Cash flows from operating activities ITEMS Code Note Current year Previous year 1. Gains from sales of goods and service provisions and other gains ,161,478, ,553,752, Payments to suppliers 02 (68,142,644,271) (61,322,573,105) 3. Payments to employees 03 (40,591,801,864) (40,364,416,919) 4. Loan interests already paid 04 (1,421,850,938) (1,192,319,331) 5. Payments for corporate income tax 05 (7,040,206,634) (6,883,758,573) 6. Other gains 06 76,413,995, ,292,762, Other disbursements 07 (113,590,655,992) (129,956,840,787) Net cash flows from operating activities 20 23,788,313,941 4,126,606,544 II. Cash flows from investing activities 1. Purchases and construction of fixed assets and other long-term assets 21 (76,996,926,456) (28,933,032,905) 2. Gains from disposal and liquidation of fixed assets and other long-term assets 22 VI.6 94,916, ,818, Loans given and purchases of debt instruments of other entities 23 (39,565,054,273) (80,102,046,400) 4. Recovery of loan given and disposals of debt instruments of other entities 24 97,462,445, Investments in other entities Withdrawals of investments in other entities 26 30,000,000, Receipts of loan interests, dividends and profit shared 27 9,049,893,326 3,238,042,902 Net cash flows from investing activities 30 (9,954,725,409) (75,445,218,221) For the fiscal year ended 31 December 2008 Cash flow statement (cont.) 44

45 CASH FLOW STATEMENT (Direct method) For the fiscal year ended 2008 II. ITEMS Code Note Current year Previous year Cash flows from financing activities UNIT: VND 1. Gains from stock issuance and capital contributions from shareholders 31-83,733,191, Repayments of capital contributions to owners and re-purchases of stocks already issued Short-term and long-term loans received 33 3,229,552, Loan principal amounts repaid 34 V.15 (3,232,000,000) (4,971,317,207) 5. Payments for financial leasehold assets Dividends and profit shared to the owners 36 (12,696,000,000) (7,235,000,000) Net cash flows from financing activities 40 (12,698,447,806) 71,526,874,393 Net cash flows during the year 50 1,135,140, ,262,716 Beginning cash and cash equivalents 60 V.1 21,021,153,280 20,812,234,362 Effects of fluctuations in foreign exchange rates ,600, ,202 Ending cash and cash equivalents 70 V.1 22,550,894,201 21,021,153,280 Ho Chi Minh City, 21 January 2009 Hoang Cong Phuoc Financial Manager Chief Accountant Bui Tuan Ngoc Acting General Director 45

46 I. OPERATION FEATURES 1. Investment form : A joint stock company. 2. Operating industry : Maritime service, general trading. 3. Main operations : - Acting as agent to provide services of forwarding and transporting goods for import and export as well as for public interests by sea, by air and by road. - Providing services of bonded warehouses, CFS, and ICD. - Providing services on warehousing, loading and storing imports and exports in transit. - Providing goods collecting and delivering services and customs clearance services. - Acting as a shipping agent and maritime broker for ships both in and out of the country. - Trading goods in transit and transporting goods to Cambodia, Laos and China. - Providing services of goods packing and marking for local and overseas manufacturers. - Trading household wooden products; porcelains, fine arts; rubber products; rattan, bamboo and leafy products; industrial products, textile and leather products; agricultural, forestry and aquatic products; processed foodstuff; chemicals, materials, supplies, machinery and equipment serving the industrial and agricultural productions; groceries; electrical and mechanic appliances; fabric, industrial foodstuff; construction materials and interior decorations; transportations, motorbikes; agricultural and fishery tools, agricultural medicine of all kinds and office machines. - Trading fuel, oil, gas and lubricants. - Providing multi-model transportation services. - Providing service of leasing offices. II. FISCAL YEAR AND STANDARD CURRENTCY USED IN ACCOUNTING 1. Fiscal year The fiscal year of the company is from 01 January to 31 December of each calendar year. The fiscal year ended 31 December 2008 is the 8th fiscal year of the company. 2. Standard currency unit used in accounting The standard currency unit used in accounting is Vietnam dong (VND). III. ACCOUNTING SYSTEM AND STANDARDS 1. Accounting system The company has been applying the Vietnamese accounting system.. 2. Statement on the compliance with the accounting system and standards The Directors ensure to follow all the requirements of the prevailing Vietnamese accounting system and standards in the preparation of these financial statements. 3. Accounting form Voucher recording. 46

47 NOTES TO THE FINANCIAL STATEMENTS For the fiscal year ended 2008 IV. ACCOUNTING SYSTEM AND STANDARDS 1. Accounting convention All the financial statements are prepared in accordance with the historical cost convention. 2. Cash and cash equivalents Cash and cash equivalents include cash on hand, cash in bank, cash in transit and short-term investments of which the due dates cannot exceed 3 months from the dates of the investments and the convertibility into cash is easy, and which do not have a lot of risks in the conversion into cash. 3. Inventories Inventories are recorded at their original costs. Costs include purchasing expenses, processing expenses and other directly related costs to bring the inventories to the current positions and conditions. Costs of inventories are determined in accordance with the specific identification method and are recorded in line with the perpetual method. Provisions for devaluation of inventories are recognized when the original costs are higher than the net realizable values. Net realizable values are estimated selling prices of inventories less estimated expenses on product completion and other necessary expenses on product consumption. 4. Trade receivable and other receivable Trade receivable and other receivable are recognized at the values on supporting documents and invoices. 5. Tangible fixed assets Fixed assets are determined by their historical costs less accumulated depreciation. Historical costs of fixed assets include all the expenses of the company to have these fixed assets as of the dates they are ready to be put into use. Other expenses incurred subsequent to the initial recognition are included in historical costs of fixed assets only if they certainly bring more economic benefits in the future thanks to the use of these assets. Those, which do not meet the above conditions, will be recorded into expenses during the period. When a fixed asset is sold or disposed, its historical cost and accumulated depreciation are written off, then any gain/ (loss) arisen are posted into the income or the expenses during the period. Fixed assets are depreciated in accordance with the straight-line method over their estimated useful lives. The depreciation periods (years) applied are as follows: Fixed assets Years Buildings and structures Vehicles 6-10 Office equipment 5-10 Other fixed assets 5 6. Intangible fixed assets Land use right Land use right includes all the actual expenses related to the land being used such as expenses to obtain the land use right, expenses for house removal and land clearance, expenses on ground leveling, registration fees, etc. Since the land use right is permanent, it is not amortized. 47

48 Notes to the financial statements (cont.) Computer software Computer software includes all the expenses paid until the date the software is put into use. Computer software is amortized in 5 years. 7. Borrowing costs Borrowing costs are included into expenses during the period. In case the borrowing costs are directly related to the construction or the production of an asset in progress, which has taken a substantial period of time (over 12 months) to get ready for intended use or sales of the asset, these costs will be capitalized. In the event of general borrowings, which are partly used for acquiring, constructing or producing an asset in progress, the costs eligible for capitalization will be determined according to the capitalization rates applied to average accumulated expenditure on that asset. The capitalization rates are computed at the average interest rates on the borrowings not yet paid during the period, except for particular borrowings serving the purpose of obtaining a specific asset. 8. Recording joint venture activities Rewards of the company in the joint control activities and the assets under the joint control are reflected in the financial statements by allocating the shares of the company in assets, liabilities, income and expenses into the corresponding items. 9. Accrued expenses, accrued large repair expenses Accrued expenses are recorded, based on reasonable estimates on the amounts payable for goods and services already used during the period. The accrual of large repair expenses is based on the company s plan to repair fixed assets. In case the large repair expenses are higher than the accrued amount, the difference is allocated fully or gradually into expenses for the maximum period of 3 years. In case the large repair expenses are lower than the accrued amount, the difference is recorded as a decrease of expenses incurred during the period. 10. Appropriation for unemployment fund Unemployment fund is used to pay for severance and unemployment allowances. The rates of extraction for this fund are from 1% to 3% of the salary fund, which is used as the basis for social insurance payment, and is included into the company s expenses during the period. In case that the unemployment fund is not enough for subsidizing resigned employees, the insufficient difference is recorded into expenses. 11. Capital and funds The company s sources of capital include - Capital: being recorded according to the amount actually invested by shareholders. - Share premiums: the difference between the issuance price and face value. The company s funds are extracted and used in line with the company s Charter. 12. Dividends Dividends are recorded as an amount payable in the period during which the dividends are disclosed. 13. Corporate income tax The company is responsible to pay corporate income tax at the rate of 28% on taxable income. Corporate income tax during the period includes current income tax and deferred income tax. Current income tax is the tax amount computed based on the taxable income during the period at the tax rates applied as of the balance sheet date. Taxable income is different from accounting profit due to the adjustments of temporary differences between tax and accounting figures as well as those of non-taxable or non-deductible income and expenses. Deferred income tax is the amount of corporate income tax payable or refundable due to temporary differences between book values of assets and liabilities serving the preparation of the financial statements and the values for tax purposes. Deferred income tax liabilities are recognized for all the temporary taxable differences. Deferred income tax assets are recorded only when there is an assurance on the availability of taxable income in the future against which the temporarily deductible differences can be used. Book values of deferred corporate income tax assets are considered at the balance sheet dates and will be reduced to the rates 48

49 Notes to the financial statements (cont.) that ensure enough taxable income against which the benefits from a part of or all of the deferred income tax can be used. Deferred income tax assets and deferred income tax liabilities are determined at the estimated rates to be applied in the year when the assets are recovered or the liabilities are settled based on the effective tax rates as of the balance sheet date. Deferred income tax is recognized in the income statement. In the case that deferred income tax is related to the items of the owner s equity, corporate income tax will be included in the owner s equity of the company. 14. Foreign currency translation The transactions in foreign currencies during the year are converted at the actual exchange rates ruling as of the transaction dates. The balances of monetary items in foreign currencies are converted at the actual exchange rates ruling as of the balance sheet date. The differences on foreign exchange and those due to the revaluation of the ending balances of the monetary items are included in income or expenses during the period. Particularly, in the construction period, the differences on foreign exchange and those due to the revaluation of the ending balances of the monetary items are accumulated in the balance sheet (i.e. in the account Difference on foreign exchange ). The exchange rates used as of: 31 December 2007 : VND 16,114/USD 31 December 2008 : VND 16,977/USD 15. Recognition of sales Sales of finished goods are recognized when most of risks and benefits associated with the goods ownership are transferred to customers and there are no uncertain factors related to payments, additional costs or sales returns. Sales of service provision are recognized when there are no uncertain factors related to payments or additional costs. In case that the services are to be provided in many accounting periods, the determination of sales in each period is done on the basis of the service completion rate as of the balance sheet date. Interests are recorded based on the term and the interest rates applied for each period. 16. Related parties A party is considered a related party of the company in case that party is able to control the company or to cause material effects on the financial decisions as well as the operations of the company. The transactions during the year with the related parties are presented in Note VII.1. V. ADDITIONAL INFORMATION ON THE ITEMS OF THE BALANCE SHEET 1. Cash and cash equivalents Ending balance Beginning balance Cash on hand 338,802, ,589,361 Cash in bank 22,212,092,138 20,609,563,919 Total 22,550,894,201 21,021,153, Short-term investments This item reflects the time deposits at Vietcombank. 3. Receivable from customers Ending balance Beginning balance Receivable for forwarding service 3,786,728,136 5,923,176,700 Receivable for warehousing and transporting service (ICD) 4,714,305,356 2,567,207,884 Total 8,501,033,492 8,490,384,584 49

50 Notes to the financial statements (cont.) 4. Prepayments to suppliers Ending balance Beginning balance Short-term prepayments to suppliers 346,442, ,644,800 Long-term prepayments to suppliers - - Total 346,442, ,644, Other receivable Ending balance Beginning balance Interests on time deposits - 1,006,400,000 Freights collected on others behalf 87,626, ,242,700 Receivable for amounts paid on others behalf 1,475,402, ,223,614 Others 1,102,404,479 - Total 2,665,433,045 1,888,866, Inventories Ending balance Beginning balance Materials and supplies 225,483, ,624,535 Spare parts 1,546,533,342 1,283,881,411 Work-in-process 801,991, ,314,839 Total 2,574,008,190 2,101,820, Short-term prepaid expenses Beginning balance Increases Allocation Ending balance Forwarding fee prepaid 8,326,240 - (8,326,240) Insurance premiums 111,570, ,848,267 (490,641,554) 247,776,943 Tools 878,705, ,733,190 (1,125,438,653) Office and warehouse rentals 1,068,186,250 1,656,715,818 (2,366,627,068) 358,275,000 Others 1,524,755,649 2,562,310,120 (3,473,587,241) 613,478,528 Total 3,591,543,832 5,092,607,395 (7,464,620,756) 1,219,530, Other current assets Ending balance Beginning balance Deficit assets for treatment 280,422,422 - Advances 1,842,000,260 1,342,031,055 Short-term deposits and mortgages 623,980, ,548,816 Total 2,746,403,605 1,931,579,871 50

51 Notes to the financial statements (cont.) 9. Increases/(decreases) of tangible fixed assets Buildings and structures Vehicles Office equipmentù Other fixed assets Historical costs Beginning balance 42,343,367,334 71,966,039,664 5,491,987, ,607, ,367,002,054 Increases 19,488,092,602 20,015,626, ,396,126-40,326,115,636 Complete construction 19,488,092,602 20,015,626, ,396,126-40,326,115,636 Loan interest capitalized Decreases - (190,000,000) (83,994,439) - (273,994,439) Liquidation and disposals - (190,000,000) (83,994,439) - (273,994,439) Ending balance 61,831,459,936 91,791,666,572 6,230,389, ,607, ,419,123,251 In which: Total Assets fully depreciated assets but being still in use 127,642,614 4,285,882,301 1,614,149, ,607,260 6,593,281,348 Depreciation Beginning balance 18,672,609,728 31,443,201,258 2,941,904, ,607,260 53,623,322,462 Increases 4,174,207,567 10,721,050, ,481,505-15,813,739,291 Depreciation 4,174,207,567 10,721,050, ,481,505-15,813,739,291 Decreases - (190,000,000) (61,978,854) - (251,978,854) Liquidation and disposals - (190,000,000) (61,978,854) - (251,978,854) Ending balance 22,846,817,295 41,974,251,477 3,798,406, ,607,260 69,185,082,899 Net book values Beginning balance 23,670,757,606 40,522,838,406 2,550,083,580-66,743,679,592 Ending balance 38,984,642,641 49,817,415,095 2,431,982,616-91,234,040,352 Some fixed assets of which the historical costs and the net book values as in the accounting books are VND 20,068,897,990 and VND 15,525,010,683 respectively have been mortgaged to secure the loans from Vietcombank Ho Chi Minh City Branch. The historical cost of assets fully depreciated assets but being still in use at the end of the year is VND 6,210,402, Increases/(decreases) of intangible fixed asset Land use right Website Copyright Container management software Initial costs Beginning balance 2,708,840, ,728,000 2,891,568,000 Increases - 32,500, ,000 Purchases - 32,500,000-32,500,000 Ending balance 2,708,840,000 32,500, ,728,000 2,924,068,000 Total 51

52 Notes to the financial statements (cont.) Land use right Website Copyright Container management software In which: Assets fully depreciated but being still in use ,728, ,728,000 Amortization Beginning balance ,287, ,287,597 Increases - 4,062,498 29,440,403 33,502,901 Amortization - 4,062,498 29,440,403 33,502,901 Ending balance - 4,062, ,728, ,790,498 Net book values Beginning balance 2,708,840,000-29,440,403 2,738,280,403 Ending balance 2,708,840,000 28,437,502-2,737,277,502 Total 11. Construction-in-progress Beginning balance Increases Inclusion into fixed assets Other decreases Ending balance Acquisition of fixed assets 5,175,811,000 20,348,499,022 (20,637,343,022) - 4,886,967,000 Construction-in-progress 34,330,814,342 49,348,060,169 (19,581,153,567) (540,105,765) 63,557,615,179 Office building at 172 Hai Ba Trung 15,578,638,392 47,978,976, ,557,615,179 Other 18,752,175,950 1,369,083,382 (19,581,153,567) (540,105,765) - Large repairs of fixed assets - 2,675,775,173 (107,619,047) (2,523,381,126) 44,775,000 Total 39,506,625,342 72,372,334,364 40,326,115,636 3,063,486,891 68,489,357, Investments in business concerns and joint ventures This item reflects the investment in Nippon Express (Vietnam) Co., Ltd. The amount invested by the company occupies 50% of the legal capital of Nippon Express (Vietnam) Co., Ltd., i.e. VND 19,200,000,000 equivalent to USD 1,200,000. The increased capital is supplemented from the current business promotion fund of Nippon Express (Vietnam) Co., Ltd. 13. Other long-term investments This item reflects the investments in purchases of shares and stock purchase right in Saigon Maritime Joint Stock Company. 14. Deferred income tax assets The deferred income tax assets are related to the accruals of expenses. 15. Other long-term assets This item reflects the deposits to lease office. 52

53 Notes to the financial statements (cont.) 16. Short-term debts and loans Ending balance Beginning balance Short-term loan from Vietcombank Ho Chi Minh City Branch in line with the loan contract No dated 15 December 3,229,552, Current portions of long-term debts 3,232,000,000 3,232,000,000 Total 6,461,552,194 3,232,000,000 Details of increases/(decreases) of short-term loans are as follows: Beginning balance Increases Amount already repaid Ending balance Short-term loan form bank - 3,229,552,194 3,229,552,194 Current portions of long-term debts 3,232,000,000 3,232,000,000 3,232,000,000 3,232,000,000 Total 3,232,000,000 6,461,552,194 3,232,000,000 6,461,552,194 Current portions of long-term loans from Vietcombank Ho Chi Minh City Branch (see Note V.23). 17. Payable to suppliers Ending balance Beginning balance INCOMMEX 1,052,419,074 - Supply and Transport Joint Venture Company No.1 325,574,000 - Saigon Newport Company 619,966,000 - Giang Nam Co., Ltd 334,400,000 - Petroleum Materials Joint Stock Company - 120,240,000 Branch of Thanh Long Co., Ltd ,466,425 K Line Vn Co., Ltd. - 97,629,000 Others 274,968, ,695,809 Total 2,607,327, ,031, Taxes and other obligations to the State Budget Beginning balance Amount payable Amount already paid Ending balance VAT on local sales 9,246, ,889,496 (134,136,133) - Corporate income tax 1,301,305,590 8,323,499,302 (7,040,206,634) 2,584,598,258 Contractor tax 20,701, ,247,893 (235,949,603) - Personal income tax 830,099,192 2,561,370,933 (3,180,038,790) 211,431,335 Total 2,161,353,129 11,225,007,624 (10,590,331,160) 2,796,029,593 53

54 Notes to the financial statements (cont.) Value added tax (VAT) The company has paid VAT in accordance with the deduction method. The tax rates applied are as follows: Forwarding service provided to customers in export-processing zones 0% Transporting and loading services 5% Forwarding service provided locally 10% Import - export duties The company has declared and paid these duties in line with the Customs notices. Corporate income tax See Note IV.13.. Estimated corporate income tax payable during the year is as follows: Current year Previous year Total accounting profit before tax 35,517,640,674 22,953,096,968 Increase/(decrease) of accounting profit to determine profit subject to corporate income tax: Previous year s accrued expenses to be deducted in the current year (661,188,983) (1,249,248,784) Reversal of accrued expenses in the current year 1,312,477, ,188,983 Gains from capital contributions in joint ventures (6,644,726,082) (1,650,178,626) Unrealized exchange gain (405,830,082) 21,230,077 Expenses after tax 608,409,863 - Total taxable income 29,726,783,222 20,736,088,618 Corporate income tax rate 28% 28% Estimated corporate income tax payable 8,323,499,302 5,806,104,812 Corporate income tax payable 8,323,499,302 5,806,104,812 Other taxes: The company has declared and paid these taxes in line with the prevailing regulations. 19. Payable to employees In the year 2008, the company has changed its method of salary calculation. Before, salary was calculated at the rate of 60% on the income, which is equal to revenues less expenses excluding salary expense; however, in this year, the company has applied the rate of 21 % on the realized revenues to calculate salary. This change of salary calculation has led to an increase of VND 1,748,297,490 in the company s salary expense in 2008 in comparison with that in

55 Notes to the financial statements (cont.) 20. Accrued expenses Ending balance Beginning balance Expenses for forwarding service 312,477, ,188,983 Expenses for loading and unloading service 1,000,000,000 - Total 1,312,477, ,188, Other short-term payable Ending balance Beginning balance Trade Union s expenditure 315,801, ,512,436 Dividends payable 1,269,600,000 4,443,600,000 Payable of amounts collected on others behalf 3,322,546,805 3,741,317,221 Others 27,935, ,000,000 Total 4,935,883,726 9,130,429, Other long-term accounts payable Long-term deposits received. 23. Long-term loans and debts Ending balance Beginning balance This is the loan according to the credit agreement No. 0036/TD1/06CD dated 18 September 2006 to purchase machinery and equipment of project of constructing embankment enforcing yards of Transimex at the interest rate applied to 12-month savings accounts in VND of lender 6,463,710,500 9,695,710,500 plus (+) 0,27%/month. This loan is secured by mortgaging all the machinery and equipment acquired in the future of the project and by mortgaging all the rights to receive insurance amounts to the lender Total 6,463,710,500 9,695,710,500 Details of long-term loans and debts are as follows Beginning Amount Ending balance Increases balance recorded Credit agreement No. 0036/TD1/06CD dated 18 September ,695,710,500-3,232,000,000 6,463,710,500 Total 9,695,710,500-3,232,000,000 6,463,710,500 55

56 Notes to the financial statements (cont.) 24. Owner s equity Statement of fluctuations in owner s equity Capital Share premiums Business promotion fund Financial reserved fund Retained earnings Beginning balance of the previous year 42,900,000,000 9,995,198,520 15,725,340,472 3,614,739,387 15,309,382,957 87,544,661,336 Capital increased in the previous year 20,580,000,000 63,140,279, ,720,279,333 Profit increased in the previous year ,982,335,411 16,982,335,411 Sharing dividends in the previous year - - 2,507,058, ,686,114 (5,849,802,801) (2,507,058,344) Capital decreased in the previous year (8,675,600,000) (8,675,600,000) Disbursements of funds (111,800,000) - (111,800,000) Ending balance of the previous year 63,480,000,000 73,135,477,853 18,232,398,815 4,338,625,501 17,766,315, ,952,817,736 Beginning balance of the current year 63,480,000,000 73,135,477,853 18,232,398,815 4,338,625,501 17,766,315, ,952,817,736 Capital increased in the current year Profit during the year ,376,502,250 27,376,502,250 Allocating funds - - 4,045,600,825 1,348,533,608 (9,439,735,259) (4,045,600,826) Total Sharing dividends during the year - - (9,522,000,000) (9,522,000,000) Disbursements of funds Ending balance of the current year 63,480,000,000 73,135,477,853 22,277,999,640 5,687,159,109 26,181,082, ,761,719,160 Details of owner s equity Ending balance Beginning balance Capital in vested by the State 5,148,000,000 5,148,000,000 Capital contributed by shareholders 58,332,000,000 58,332,000,000 Share premiums 73,135,477,853 73,135,477,853 Total 136,615,477, ,615,477,853 56

57 Notes to the financial statements (cont.) Dividends Ending balance Beginning balance Dividends of the previous year 4,443,600,000 3,003,000,000 Advance of dividends of the current year 8,252,400,000 4,232,000,000 Total 12,696,000,000 7,235,000,000 Shares Ending balance Beginning balance Number of shares allowed to be issued 6,348,000 6,348,000 Number of shares already issued and fully contributed into 6,348,000 6,348,000 the capital Common shares 6,348,000 6,348,000 Preferred shares Number of shares re-purchased - - Common shares Preferred shares Number of outstanding shares 6,348,000 6,348,000 Common shares 6,348,000 6,348,000 Preferred shares - - Face value per outstanding share: VND 10,000 Purposes of appropriation for business promotion fund and financial reserved fund Business promotion fund is used to supplement the company s prescribed capital. Financial reserved fund is used to: Compensate losses, damages of assets and accounts receivable unable to be recovered during the operations. Compensate the losses of the company according to the decision of the Board of management. 25. Bonus and welfare funds Beginning balance Increases Decreases Ending balance Bonus fund 2,812,511,008 2,157,653,774 (1,108,077,933) 3,862,086,849 Welfare fund 598,837,231 1,496,579,284 (1,493,871,914) 601,544,601 Fund for the Board of Management 199,810, ,120,165 (678,231,354) 330,699,166 Total 3,611,158,594 4,463,353,223 (3,280,181,201) 4,794,330,616 57

58 Notes to the financial statements (cont.) VI. ADDITIONAL INFORMATION ON THE ITEMS OF THE INCOME STATEMENT 1. Sales Current year Previous year Gross sales 174,903,899, ,209,257,473 Deductions: (61,020,382) (19,850,837) Net sales 174,842,878, ,189,406,636 In which: Forwarding service 72,986,715,647 63,916,556,252 Warehousing service 101,856,163,191 71,272,850, Costs of goods sold Current year Previous year Costs of forwarding service 59,579,903,575 47,006,358,718 Costs of services of the ICD 79,627,556,728 54,307,424,243 Total 139,207,460, ,313,782, Financial income Current year Previous year Gains from capital contributed to joint venture 6,644,726,082 1,650,178,626 Bank deposit interests 6,901,909,873 2,594,264,276 Realized exchange gain 729,506,855 - Unrealized exchange gain 405,830,082 16,307,626 Others , ,374,176 Total 14,751,230,498 4,494,124, Financial expenses Current year Previous year Loan interest expenses 1,421,850,938 1,192,319,331 Exchange loss 68,660, ,430,880 Provision for devaluation of securities 396,334,055 - Total 1,886,845,410 1,350,750,211 58

59 Notes to the financial statements (cont.) 5. Selling expenses Current year Previous year Expenses for employees 207,547,229 - Materials and tools 20,032,373 - External service rendered 13,796,464 - Other cash expenses 987,272 - Total 242,363, Administrative overheads Current year Previous year ï Expenses for employees 8,081,169,053 8,103,964,268 Materials and suppliesï 581,979, ,080,243 Depreciation of fixed assets 562,323, ,515,757 External service rendered 2,528,760,273 2,526,739,803 Others 1,965,272,873 1,086,412,829 Total 13,719,504,611 12,636,712, Other income Current year Previous year Gains from liquidation and disposals of fixed assets 40,181, ,818,182 Gains from sales of scraps of tools 53,115,455 2,288,636 Others 933,233,510 44,284,050 Total 1,026,530, ,390, Other expenses Current year Previous year Expenses for liquidation and disposals of fixed assets 22,015,585 1,823,159,168 Others 24,810,198 4,420,000 Total 46,825,783 1,827,579, Deferred corporate income tax This is the deferred corporate income tax arising from the differences due to the accrual of expenses for forwarding service and of repairing expenses to be deducted 59

60 Notes to the financial statements (cont.) 10. Earning per share Current year Previous year Accounting profit after corporate income tax 27,376,502,250 16,982,335,411 Profit attributable to holders of ordinary shares 27,376,502,250 16,982,335,411 Ordinary shares outstanding during the year 6,348,000 5,308,871 Earning per share 4,313 3, Operating expenses Current year Previous year Materials and supplies 14,607,799,206 10,281,663,726 Labor 44,861,254,989 33,921,495,656 Depreciation of fixed assets 15,847,242,192 12,296,343,619 External service rendered 75,110,381,158 53,595,452,552 Others 2,742,650,707 3,855,540,308 Total 153,169,328, ,950,495,861 VII. OTHER INFORMATION 1. Transactions with related parties Transaction with key persons and other related individuals Income of key persons is as follows: Current year Previous year Salary 3,169,300,373 4,576,864,687 Social insurance, health insurance 46,149,112 25,169,100 Allowances 38,682,833 88,349,904 Bonuses 21,100,000 27,800,000 Rewards 221,000, ,000,000 Total 3,496,232,318 5,128,183,691 60

61 Notes to the financial statements (cont.) Transaction with other related parties Other related party of the company includes: Related party Nippon Express (Vietnam) Co., Ltd. Relationship Joint venture company As of the balance sheet date, the accounts receivable from Nippon Express (Vietnam) Co., Ltd. are as follows: Receiving profit due to contributing capital in joint venture activities Receiving profit from business promotion fund to supplement investment capital. Current year Previous year 1,989,526,082 1,650,178,626 4,655,200,000 - Ho Chi Minh City, 21 January 2009 Hoang Cong Phuoc Financial Manager Chief Accountant Bui Tuan Ngoc Acting General Director 61

62 TRANSIMEX - SAIGON Floor 9-10, TMS Building, 172 Hai Ba Trung Street, Dakao Ward, Dist. 1, HCMC, Vietnam. Tel : (84-8) Fax : (84-8) tsmsg-fax@hcm.vnn.vn ICD TRANSIMEX Km 7/1, Binh Tho, Truong Tho Ward, Thuduc Dist., HCMC, Vietnam. Tel : (84-8) Fax : (84-8) icd.info@transimexsaigon.com REPRESENTATIVE OFFICE Dong Nai Argtex Industrial Park, Long Binh Ward, Bien Hoa City, Dong Nai Province, Vietnam. Tel : (84-616) Fax : (84-616) dno.info@transimexsaigon.com Binh Duong VSIP Service No.2 VSIP, Street No.3, Vietnam - Singapore Industrial Park, Thuan An Dist., Binh Duong Province, Vietnam. Tel : (84-650) Fax : (84-650) bdo.info@transimexsaigon.com

63 CONTACT DETAILS BRANCHES Ha Noi 19 Thai Ha Street, Dong Da Dist., Hanoi City, Vietnam. Tel : (84-4) /02 Fax : (84-4) tmshn.info@transimexsaigon.com Hai Phong 03 Le Thanh Tong Street, Thanh Dat Building, Floor 7, Room 16, Hai Phong City, Vietnam. Tel : (84-313) /36/37/38 Fax : (84-313) tmshp.info@transimexsaigon.com Da Nang Hoang Van Thu Street, Hai Chau Dist., Da Nang City, Vietnam. Tel : (84-511) /88 Fax : (84-511) tmsdn.info@transimexsaigon.com AUDITING COMPANY Auditing & Consulting Co.,Ltd (A & C) 229 Dong Khoi Street, Dist. I, HCMC, Vietnam. Tel : (84-8) /96 Fax : (84-8)