CENTURY 21 JOINT STOCK COMPANY CENTURY 21 JOINT STOCK COMPANY CONSOLIDATED FINANCIAL STATEMENTS FOR THE PERIOD ENDED 30 SEPTEMBER 2015

Transcription

1 CENTURY 21 JOINT STOCK COMPANY CONSOLIDATED FINANCIAL STATEMENTS FOR THE PERIOD ENDED 30 SEPTEMBER 2015 This Financial Statements was translated from Vietnamese Official Financial Statements and internal circulation only, not intended to replace Vietnamese Official Financial Statements, published officially on the website of Century 21 Joint Stock Company. All information in this report is used for reference only. 1

2 CONSOLIDATED BALANCE SHEET Code ASSETS Note As at 30 September CURRENT ASSETS 251,685,709, ,482,277, Cash and cash equivalents ,775,806, ,817,755, Cash 16,684,878,664 11,692,710, Cash equivalents 191,090,927, ,125,044, Short-term investments 31,052,183,333 97,727,666, Investments held to maturity ,052,183,333 97,727,666, Accounts receivable 10,792,061,193 11,455,473, Trade accounts receivable 2,058,551,253 2,511,773, Prepayments to suppliers 7,427,996,516 7,737,736, Other receivables 4.3 2,186,497,969 2,086,948, Provision for doubtful debts 4.4 (880,984,545) (880,984,545) 140 Inventories 4.5 1,557,555,180 1,887,804, Inventories 1,557,555,180 1,887,804, Other current assets 508,103,390 1,593,577, Short-term prepayments ,752,931 1,324,920, Value Added Tax to be reclaimed 315,452, ,758, Other taxes receivable 897, , LONG-TERM ASSETS 338,932,857, ,775,863, Long-term receivables 192,643, ,886, Other long-term receivables ,643, ,886, Fixed assets 59,448,904,514 44,402,255, Tangible fixed assets ,007,147,573 30,471,310, Cost 106,257,752,835 86,175,169, Accumulated depreciation (60,250,605,262) (55,703,858,809) 227 Intangible fixed assets ,441,756,941 13,930,945, Cost 17,198,082,678 17,198,082, Accumulated depreciation (3,756,325,737) (3,267,137,226) 230 Investment properties ,887,060,177 12,931,395, Cost 36,269,460,819 36,269,460, Accumulated depreciation (24,382,400,642) (23,338,065,176) 240 Long-term unfinished assets 215,844,725, ,319,542, Long-term production costs in progress ,325,754, ,383,954, Construction in progress ,518,971,094 45,935,588, Long-term investments ,674,889,834 51,089,261, Investments in associates, joint ventures 10,542,885,411 11,065,499, Other long-term investments 41,123,400,000 45,297,400, Provision for diminution in value of longterm investments (5,991,395,577) (5,273,638,071) 260 Other long-term assets 3,220,939,163 2,638,034, Long-term prepayments ,214,118,580 1,641,950, Deferred income tax assets ,820, ,083, Goodwill ,663,695,152 3,234,486, TOTAL ASSETS 590,618,567, ,258,140,961 2

3 Code RESOURCES Note As at 30 September LIABILITIES 123,335,149,348 98,792,408, Current liabilities 33,966,529,663 20,156,679, Trade accounts payable 1,709,254,586 1,100,159, Advances from customers 494,208, ,642, Taxes and other payables to the State Budget ,890,243,752 4,452,273, Payable to employees 3,356,642,418 3,908,926, Accrued expenses 3,807,667, Unrealized short-term revenue 271,300, Other payables ,161,259,988 6,286,702, Bonus and welfare fund ,275,952,150 4,046,974, Long-term liabilities 89,368,619,685 78,635,729, Other long-term payables ,058,584,135 78,596,764, Deferred income tax liabilities 267,558, Long-term contingent exp. payables 42,476,897 38,965, OWNERS EQUITY 454,513,263, ,407,898, Capital and reserves ,513,263, ,407,898, Share capital 193,363,710, ,363,710, Share premium 146,743,244, ,743,244, Treasury shares (18,474,260,952) (124,283,168,376) 418 Investment and development fund 34,031,363,970 34,031,363, Undistributed earnings 204,658,113, ,743,840, Minority interests 12,770,154,732 10,057,833, TOTAL RESOURCES 590,618,567, ,258,140,961 OFF BALANCE SHEET ITEMS Included in cash and cash equivalents are balances held in foreign currencies of US$ 448, (30 September 2014: US$ 389,757.26). 3

4 CONSOLIDATED INCOME STATEMENT Code Note The period ended 30 September Sales 213,805,100, ,295,656, Less deductions - 901,028, Net sales ,805,100, ,394,628, Cost of sales ,082,642,181 92,908,496, Gross profit 101,722,457,959 83,486,131, Financial income 5.3 7,774,688,655 5,844,155, Financial expenses 717,758,663 13,955,686,054 Gains (losses) in joint venture and associate (522,614,325) (5,753,308,264) 24 Selling expenses ,444,387,392 6,959,894, General and administration expenses ,724,487,177 13,130,625, Operating profit 83,087,899,057 49,530,772, Other income ,610, ,720, Other expenses 194,777, ,430, Net other income (43,166,579) 78,290, Net accounting profit before tax 83,044,732,478 49,609,062, Business income tax - current ,184,292,589 10,828,600, Business income tax - deferred 1,256,821, ,905, Net profit after tax 64,603,618,285 38,495,556, Minority interests 2,712,320,950 3,504,325, Profit after tax of the parent company 61,891,297,335 34,991,231,302 Profit shared to capital contribution party according to Business Cooperation Contract 4,488,927,981 4,183,907, Profit after tax attributable to the Company s shareholders 57,402,369,354 30,807,323, Earnings per share 5.8 4,130 1, Diluted earnings per share 5.9 4,130 1,680 4

5 CONSOLIDATED CASH FLOW STATEMENT (Indirect method) Code Note The period ended 30 September CASH FLOWS FROM OPERATING ACTIVITIES 01 Net profit before tax 83,044,732,478 49,609,062,825 Adjustments for: 02 Depreciation and amortisation 6,651,062,249 5,784,750, Provisions 717,757, ,974, Unrealised foreign exchange gains (512,310,839) (81,466,209) 05 Losses/(profits) from investing activities (7,254,189,886) 13,738,841, Operating profit before changes in working capital 82,647,051,508 69,177,163, Increase in receivables 586,077,486 (4,361,203,195) 10 Decrease/(increase) in inventories 55,388,449,240 56,270,525, Increase/(decrease) in payables 9,925,378,144 3,805,272, Increase in prepaid expenses (439,000,138) (408,764,508) 14 Business income tax paid (6,792,757,630) (10,631,860,171) 16 Other payments on operating activities (2,590,022,748) 319,294, Net cash inflows from operating activities 138,725,175,862 3,738,003,331 CASH FLOWS FROM INVESTING ACTIVITIES 21 Purchases of fixed assets (16,665,966,462) (20,760,887,278) 23 Payment for loan, purchase of debt instrument (21,649,881,442) 24 Proceeds from loans, sale of debt instrument 66,675,483,334 2,000,000, Investment in other entities (373,400,000) 26 Proceeds from divestment in other entities 4,174,000,000 19,910,210, Dividends and interest received 7,774,688,655 5,844,155, Net cash (outflows)/inflows from investing activities 61,958,205,527 (15,029,803,679) CASH FLOWS FROM FINANCING ACTIVITY 32 Payment of capital to owners (105,808,907,424) 36 Dividends paid (14,428,733,405) (12,880,854,100) 40 Net cash outflows from financing activity (120,237,640,829) (12,880,854,100) 50 Net increase in cash and cash equivalents 80,445,740,560 86,259,770, Cash and cash equivalents at beginning of year 126,817,755, ,037,845, Effect of foreign exchange differences 512,310,839 81,466, Cash and cash equivalents at end of year 207,775,806, ,379,082,027 5

6 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE PERIOD ENDED 31 DECEMBER GENERAL INFORMATION Century 21 Joint Stock Company ( the Company ) was established in SR Vietnam pursuant to Business Registration Certificate No , dated 10 October 1997 which was issued by the Department of Planning and Investment of Ho Chi Minh City and last amended for the 11 th time on 6 August The Company s shares have been listed on the Ho Chi Minh City Stock Exchange since 2011 with symbol code being C21. The Company has located at 41 Nguyen Thi Minh Khai Street, District 1, Ho Chi Minh City. In this year, the principal activities of the Company are sales of land plots and projects, office leases and investments in tourism projects. At the present, the Company s investment projects include: - Residential Project with a scale of 16 square hectares in Phuoc Long B Ward, District 9, Ho Chi Minh City. - Residential Project with a scale of 6 square hectares in 9B7 Zone Residential South Saigon, Ho Chi Minh City. - Complex of Building - Office - Commercial Services and Apartments Huynh Tan Phat, District 7, Ho Chi Minh City. The Group s consolidated financial statements for the period ended 30 September 2015 include financial statements of the Company and its subsidiaries (together the Group ) and the Group s interest in joint ventures and associates as follows: Name Business activity Business Registration License % ownership and voting right Subsidiaries: Sao Mai Century 21 Limited Company Mining mineral water and mud for leisure tourism and trading. Certificate of Business Registration of limited company with 2 members and more No dated 23 July 1999 and the 18 th amendment dated 20 May % 85% Ham Tan Century 21 Limited Company Restaurant, hotel and other tourism services. Certificate of Business Registration of One-member limited company No dated 24 June 2003 and the 4 th amendment dated 9 November % 100% Khai Hoan Trading and Construction Limited Company Construction investment and tourism operator. Certificate of Business Registration for 2 members and more limited company No dated 22 May 6 100% 100%

7 Name Business activity Business Registration License 1997 and the 17 th amendment dated 28 July % ownership and voting right Dao Ngoc Century 21 One Member Limited Company Construction investment and tourism operator. Certificate of Business Registration of one member limited company No dated 4 April % 100% Capital contribution in subsidiaries, joint ventures and associates is presented as follows: Capital surplus/(deficit) Name Contributed up to compared with the registered Charter capital capital Subsidiaries: Sao Mai Century 21 Limited Company 11,800,000,000 10,030,000,000 - Ham Tan Century 21 Limited Company 80,000,000,000 80,000,000,000 - Khai Hoan Trading and Construction Limited Company 1,750,000,000 1,750,000,000 - Dao Ngoc Century 21 One Member Limited Company 20,000,000,000 20,000,000,000 - Joint ventures and associates: Codona Century 21 Joint Stock Company Address: 2 nd street, Bien Hoa 1 industrial Parks, An Binh Ward, Bien Hoa City, Dong Nai Province. The principal activities: construction investment and trade in Ho Song May ecotourism. Ownership and voting right ratio: 50% Capital surplus/(deficit) Name Contributed up to compared with the registered Charter capital capital Codona Century 21 Joint Stock Company 50,000,000,000 16,818,808,000 (8,181,192,000) 7

8 Business Cooperation Agreement The Company is operating Tuoi Tre Office Building (Yoco Building) at 41 Nguyen Thi Minh Khai Street, District 1, Ho Chi Minh City. This is the building that the Company and Tuoi Tre Newspaper Agency cooperate to construct and operate. The capital contribution ratio is 50:50 for each party. The profit after tax from office leasing after distributing to the mandatory reserve fund (5%) and bonus and welfare fund (5%) is shared to each party equally. 2 ACCOUNTING SYSTEM 2.1 Basis of preparation of consolidated financial statements The consolidated financial statements have been prepared in accordance with Vietnamese Accounting Standards, the Vietnamese Corporate Accounting System and applicable regulations on preparation and presentation of financial statements in Vietnam. The financial statements have been prepared under the historical cost convention. The accompanying consolidated financial statements are not intended to present the financial position and results of operations and cash flows in accordance with accounting principles and practices generally accepted in countries and jurisdictions other than SR Vietnam. The accounting principles and practices utilised in SR Vietnam may differ from those generally accepted in countries and jurisdictions other than SR Vietnam. 2.2 Fiscal year The Group s fiscal year is from 1 January to 31 December. 2.3 Consolidation The Group prepared its consolidated financial statements in accordance with the Vietnamese Accounting Standard Consolidated Financial Statements and Accounting for Investments in Subsidiaries. Subsidiaries Subsidiaries are all entities over which the Group has the power to govern the financial and operating policies generally accompanying a shareholding of more than one half of the voting rights. The existence and effect of potential voting rights that are currently exercisable or convertible are considered when assessing whether the Group controls another entity. Subsidiaries are fully consolidated from the date on which control is transferred to the Group. They are de-consolidated from the date that control ceases. Inter-company transactions, balances and unrealised gains and losses on transactions between group companies are eliminated. Accounting policies of subsidiaries have been changed where necessary to ensure consistency with the policies adopted by the Group. Transactions and minority interests The Group applies a policy of treating transactions with minority interests as transactions with parties external to the Group. Disposals to minority interests result in 8

9 gains and losses for the Group that are recorded in the income statement. Purchases from minority interests result in goodwill, being the difference between any consideration paid and the Company s interest in the total net fair value of the identifiable assets, liabilities and contingent liabilities of the subsidiary at the date of acquisition. 2.3 Consolidation (continued) Joint ventures and associates Joint ventures are contractual arrangements whereby two or more parties undertake an economic activity which is subject to joint control. Associates are all entities over which the Group has significant influence but not control, generally accompanying a shareholding of between 20% and 50% of the voting rights. Investments in joint ventures and associates are accounted for using the equity method of accounting and are initially recognised at cost. The Group s investment in joint ventures and associates includes goodwill identified on acquisition, net of any accumulated impairment loss. The Group s share of its joint ventures and associates post-acquisition profits or losses is recognised in the consolidated income statement, and its share of post-acquisition movements in reserves is recognised in consolidated reserves. The cumulative postacquisition movements are adjusted against the carrying amount of the investment. When the Group s share of losses in a joint venture or associate equals or exceeds its interest in the joint venture or associate, the Group does not recognise further losses, unless it has incurred obligations or made payments on behalf of the joint venture or associate. Unrealised gains and losses on transactions between the Group and its joint ventures and associates are eliminated to the extent of the Group s interest in the joint ventures and associates. Accounting policies of joint ventures and associates have been changed where necessary to ensure consistency with the policies adopted by the Group. 2.4 Form of records applied The Company uses journal vouchers to record its transactions. 2.5 Use of accounting estimates The preparation of the consolidated financial statements in conformity with Vietnamese Accounting Standards requires the Board of Directors to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosures of contingent assets and liabilities at the date of consolidated financial statements and the amounts of revenues and expenses during the year. Although these estimates are based on the Board of Directors best knowledge of current events and actions, actual results may differ from those estimates. 9

10 3 ACCOUNTING POLICIES 3.1 Cash and cash equivalents Cash and cash equivalents comprise cash on hand, cash at bank, cash in transit, demand deposits and other short-term investments with an original maturity of three months or less. 3.2 Currency The consolidated financial statements are measured in Vietnamese Dong and presented using Vietnamese Dong ( ). Transactions arising in foreign currencies are translated at exchange rates ruling at the transaction dates. Foreign exchange differences arising from these transactions are recognized in the income statement. Monetary assets and liabilities denominated in foreign currencies at the balance sheet date are translated at the rates of exchange ruling at the balance sheet date. Foreign exchange differences arising from these translations are recognized in the income statement. 3.3 Trade receivables Trade receivables are carried at the original invoice amount less an estimate made for doubtful receivables based on a review by the Board of Directors of all outstanding amounts at the period end. Bad debts are written off when identified. 3.4 Inventories Inventories are stated at the lower of cost and net realisable value. Cost includes all costs of purchase, costs of conversion and other costs incurred in bringing the inventories to their present location and condition. The investment cost of the project includes the costs of land clearance, transfer of land use rights and the expenses payable to construction contractors. Provision for decline in value of inventories Provision for decline in value of inventories is made for the expected loss in value (discount price, obsolete, slow moving...) of raw material, finished goods, the cost of construction investment projects, inventory owned by the Group based on appropriate evidence of impairment at the time of the financial statements. Increase or decrease in provision of inventories is recognised in cost of sales of the consolidated income statement. 3.5 Fixed assets Tangible and intangible fixed assets Fixed assets are stated at historical cost less accumulated depreciation. Historical cost includes expenditure that is directly attributable to the acquisition of the fixed assets. Depreciation 10

11 Fixed assets are depreciated using the straight-line method so as to write off the cost of the assets over their estimated useful lives or over the term of the project (the Business Registration Certificate). The principal annual rates used are as follow: Buildings Machinery Motor vehicles Office equipment Other assets Computer software Mud mining licence Mineral water mining licence Definite land use rights Indefinite land use rights Goodwill 4-13 years 2-9 years 3-8 years 3-8 years 5-18 years 3 years 3-4 years 16 years Follow the term on Certificate of Land use right No depreciation 5 years Land use rights which have definite term are amortised, using the straight-line method over number of years in accordance with the terms indicated in each land use right certificate. Land use rights which are granted for an indefinite term are carried at cost and not amortised. Disposals Gains and losses on disposals are determined by comparing net disposal proceeds with the carrying amount and are recognised as income or expense in the income statement. 3.6 Investments (a) Short-term investments Short-term investments are those maturing within 12 months from the balance sheet date. Short-term investments are recognised at historical cost less provision for diminution in value. (b) Investments in joint ventures and associates Investments in joint ventures and associates are accounted for at under equity method of accounting in the consolidated financial statements. (c) Long-term investments Long-term investments comprise shareholding in listed and unlisted entities which are held with no intention to dispose of them within 12 months from the balance sheet date. These investments are initially stated at cost of acquisition. Provision is made where there is a diminution in value of these investments. 11

12 3.6 Investments (continued) (d) Capital contribution in joint venture activities A joint venture is a contractual arrangement whereby two or more parties undertake an economic activity which is subject to joint control. Joint control is the power to jointly govern the financial and operating policy decisions of an economic activity on a contractual basis. Form of the Company s joint venture activities and accounting for their business results are as follows: Form of joint venture activities Joint venture activity under the form of joint control assets in which the Company is in charge of accounting. Business results of the joint venture activities Business results of the joint venture activity is reflected by the distributed profits, including profit after tax and appropriation to bonus and welfare fund. The Company distributes share of profits to the joint venturer from its undistributed earnings. 3.7 Investment properties Investment properties include land use rights and buildings which owned by the Group to earn income from office lease. Historical cost includes expenditure that is directly attributable to the acquisition of properties. Depreciation Investment properties are depreciated on the straight-line method to write off the cost of the assets over their estimated useful lives. The principal annual useful lives are as follow: Indefinite land use rights Buildings and apartments No depreciation charge 6-25 years Disposals Gains or losses on disposals are determined by comparing net disposal proceeds with the net book value and are recognised as income or expense in the income statement. 3.8 Prepaid expenses Prepaid expenses include short-term or long-term prepayments on the balance sheet and are mainly tools and equipment was put to use. Prepaid expenses are amortised to the income statement using straight-line method. 3.9 Goodwill Goodwill on the consolidated financial statement represents the excess of the cost of acquisition over the Company s interest in the total net fair value of the identifiable assets, liabilities and contingent liabilities of a subsidiary at the date of acquisition. 12

13 Goodwill is recognized as an intangible asset and is amortised on the straight-line basis within 5 years. On disposal of a subsidiary, the attribution amount of unmortised goodwill is included in the determination of the profit or loss on disposal Revenue recognition (a) Provision of services Revenue from the provision of services is recognised in the income statement when the services are rendered, by reference to completion of the specific transaction assessed on the basis of the actual service provided as a proportion of the total services to be provided. (b) Sales of goods Revenue from the sale of goods is recognised in the income statement when the significant risks and rewards of ownership have been transferred to the buyer. No revenue is recognised if there are significant uncertainties regarding recovery of the consideration due or the possible return of goods Revenue recognition (continued) (c) Interest income Interest income is recognised on an earned basis. (d) Dividend income Income from dividend is recognised when the Group has established the receiving right from investees. (e) Revenue from operating leases Revenue from operating leases is recognised on a straight-line basis over the lease term, irrespective of the payment method Current and deferred income tax Income taxes include all income taxes which are based on taxable profits including profits generated from production and trading activities in other countries with which the Socialist Republic of Vietnam has not signed any double taxation agreement. Income tax expense comprises current tax expense and deferred tax expense. Current income tax is the amount of income taxes payable in respect of the current year taxable profits and the current year tax rates. Current and deferred tax should be recognised as an income or an expense and included in the profit or loss of the year, except to the extent that the tax arises from a transaction or event which is recognised, in the same or a different period, directly in equity. Deferred income tax is provided in full, using the liability method, on temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the financial statements. Deferred income tax is not accounted for if it arises from initial recognition of an asset or liability in a transaction other than a business combination that at the time of occurrence affects neither the accounting nor 13

14 the taxable profit or loss. Deferred income tax is determined at the tax rates that are expected to apply to the financial year when the asset is realised or the liability is settled, based on tax rates that have been enacted or substantively enacted by the balance sheet date. Deferred income tax assets are recognised to the extent that it is probable that future taxable profit will be available against which the temporary differences can be utilised Share capital and treasury shares Share capital consists of all issued shares. Incremental costs directly attributable to the issue of ordinary shares or options are recognised as a deduction from equity. Treasury shares are shares that are issued and repurchased by the Company. When share capital recognised as equity is purchased, the amount of the consideration paid, which includes directly attributable cost, net of any tax effects, is recognised as a deduction from equity. Repurchased shares are classified as treasury shares and are presented as a deduction from total equity. Total amount received from the reissue or sales of treasury shares less directly attributable costs are recorded as equity Funds under owners equity Funds under owners equity are allocated in accordance with approval of shareholders in Annual General Meetings. (a) Financial reserve fund The financial reserve fund is appropriated from the Company's net profit and subject to shareholders' approval at Annual General Meetings. (b) Investment and development fund The investment and development fund is appropriated from the Company's net profit and subject to approval by the shareholders at Annual General Meetings. (c) Bonus and welfare fund The bonus and welfare fund is appropriated from the Company's net profit and subject to shareholders' approval at Annual General Meetings. (d) Funds of subsidiaries Investment and development fund and bonus and welfare fund of each subsidiary are appropriated in accordance with the charter of each subsidiary Dividend distribution Dividend distribution to the Company s shareholders is recognised as a liability in the Group s financial statements in the year in which the dividends are approved by the shareholders in Annual General Meetings Related parties Enterprises and individuals that directly, or indirectly through one or more intermediaries, control, or are controlled by, or are under common control with, the Company, including holding companies, subsidiaries and fellow subsidiaries are related parties of the 14

15 Company. Associates and individuals owning, directly or indirectly, an interest in the voting power of the Company that gives them significant influence over the enterprise, key management personnel, including directors of the Company and close members of the family of these individuals and companies associated with these individuals also constitute related parties. In considering each possible related party relationship, attention is directed to the substance of the relationship and not merely the legal form Provision Provision is recognised when: the Group has a present legal or constructive obligation as a result of past events; it is probable that an outflow of resources will be required to settle the obligation; and the amount has been reliably estimated. Provision is not recognised for future operating losses. Provision is measured at the expenditures expected to be required to settle the obligation. If the time value of money is material, provision will be measured at the present value using a pre-tax rate that reflects current market assessments of the time value of money and the risks specific to the obligation. The increase in the provision due to passage of time is recognised as interest expenses. 4. ADDITIONAL INFORMATION FOR ITEMS PRESENTED IN THE BALANCE SHEET 4.1 CASH AND CASH EQUIVALENTS Cash on hand 846,274, ,991,702 Cash at bank 15,838,603,725 11,143,534,235 Cash equivalents (*) 191,090,927, ,165,044, ,775,806, ,838,570,548 (*) Cash equivalents include term deposits with an original maturity within 3 months. September , cash in bank deposits and term deposits in foreign currency were USD 448,967.5 equivalent 10,099,125, SHORT-TERM INVESTMENTS Short-term investments represent term deposits with an original maturity more than 3 months and less than 1 year. Bank deposits with terms of 3 to 6 months 31,052,183,333 99,727,666,667 31,052,183,333 99,727,666,667 15

16 4.3 SHORT-TERM TRADE RECEIVABLES Registration fee paid in advance for customers 5,705,500 13,571,100 Advance costs 658,409, ,013,919 Loan 519,800, ,500,000 Deposit at the bank 248,064,000 Other receivables 754,519,232 1,230,047,923 2,186,497,969 2,086,948, PROVISION FOR DOUBTFUL DEBTS Provision for doubtful debts (880,984,545) (880,984,545) (880,984,545) (880,984,545) Fluctuations in the provision for doubtful debts: 30 Sep Balance at beginning of year 880,984,545 1,017,155,135 Provision in year - 375,600,000 Provision was handled in year - (511,770,590) 4.5 INVENTORIES 880,984, ,984,545 Raw materials 1,174,471,698 1,598,897,000 Merchandise 243,182, ,064,570 Tools and equipment 139,900, ,843,308 1,557,555,180 1,887,804,878 16

17 4.6 SHORT-TERM PREPAYMENTS Costs of tools, equipment and repair in process 191,752, ,909,470 Parking costs 952,596,210 Other expenses 49,415, OTHER LONG-TERM RECEIVABLES 191,752,931 1,324,920,814 Deposits for environmental rehabilitation of mining Mud 160,692, ,935,740 Deposits for environmental rehabilitation of mining Mineral water 31,950,937 16,950, ,643, ,886,677 17

18 4.8 TANGIBLE FIXED ASSETS Motor Office Lawn and Buildings Machinery vehicles equipment green carpet Others Total Historical cost As at 1 January ,090,910,646 6,210,776,777 4,010,627, ,016,700 2,994,890,352 3,355,946,991 86,175,169,305 New purchases 166,763, ,636, ,000, ,399,819 Transferred from construction in progress 16,674,876,311 1,269,638, ,249, ,419,299 19,587,183,711 Disposal Write-off As at 30 September ,932,550,412 7,639,051,787 5,124,877, ,016,700 2,994,890,352 4,054,366, ,257,752,835 Accumulated depreciation As at 1 January ,062,608,908 5,147,500,075 4,010,627, ,053,054 2,994,890,352 3,024,178,581 55,703,858,809 Charge for the year 3,682,179, ,598,219 77,378,435 30,576, ,013,568 4,546,746,453 Disposal Write-off As at 30 September ,744,788,621 5,683,098,294 4,010,627, ,629,572 2,994,890,352 3,245,192,149 60,250,605,262 Net book value As at 1 January ,028,301,738 1,063,276,702-47,963, ,768,410 30,471,130,496 As at 30 September ,187,761,791 1,955,953,493 1,036,871,020 17,387, ,174,141 46,007,147,573 18

19 4.9 INTANGIBLE FIXED ASSETS Compensation of Land use Mud mining Mineral water Software land clearance rights license mining license Total Historical cost As at 1 January ,942,804 15,584,734, ,000, ,405, ,000,000 17,198,082,678 New purchases As at 30 September ,942,804 15,584,734, ,000, ,405, ,000,000 17,198,082,678 Accumulated amortisation As at 1 January ,270,840 2,863,585, ,280, ,999,972 3,267,137,226 Charge for the year 20,412, ,341,224-42,685,290 18,748, ,188,511 As at 30 September ,682,840 3,270,927, ,965, ,749,969 3,756,325,737 Net book value As at 1 January ,672,000 12,721,148, ,000, ,124, ,000,028 13,930,945,452 As at 30 September ,260,000 12,313,807, ,000, ,439, ,250,031 13,441,756,941 Cost of fully depreciated tangible and intangible fixed assets as at 30 September 2015 was 984,694,

20 4.10 INVESTMENT PROPERTIES Land use rights (Yoco Building) Buildings (Yoco Building) Ung Van Khiem Apartment (Basement and Ground floor) Total Historical cost As at 1 January ,933,909,250 26,030,913,735 7,304,637,834 36,269,460,819 New purchases As at 30 September ,933,909,250 26,030,913, ,637,834 36,269,460,819 Accumulated depreciation As at 1 January ,375,799 20,315,600,433 2,240,088,944 23,338,065,176 Charge for the year - 825,196, ,139,137 1,044,335,466 As at 30 September ,375,799 21,140,796,762 2,459,228,081 24,382,400,642 Net book value As at 1 January ,151,533,451 5,715,313,302 5,064,548,890 12,931,395,643 As at 30 September ,151,533,451 4,890,116,973 4,845,409,753 11,887,060,177 Cost of fully depreciated investment properties as at 30 September 2015 was 5,127,565,585 (31 December 2014: 5,127,565,585) LONG-TERM PRODUCTION COSTS IN PROGRESS Investment in projects: Song Giong Residence District 2 3,765,312,154 4,430,099,349 Phuoc Long B Residence District 9 82,184,671,542 76,764,206,111 9B-7 Residence South Saigon Town 85,144,560,817 71,526,692,024 Huynh Tan Phat Building Apartments, District 7-73,518,244,351 Mui Da Tourist area Binh Thuan Province 713,642, ,217,712 Phong Dien Project Binh Thuan Province 1,517,567,538 1,457,494, ,325,754, ,383,954,335 20

21 Investment in projects by factor Land compensation and clearance expenses 133,579,435, ,777,013,680 Levelling, infrastructure, design and mapping costs 36,909,553,333 28,723,946,183 Capitalized interest expenses - 1,395,976,772 Other costs 2,836,767,377 2,487,017, CONSTRUCTION IN PROGRESS 173,325,754, ,383,954,335 Sep Opening balance 45,935,588,162 16,120,681,500 Increase 16,136,795,538 31,051,761,162 Written-off (104,000,000) Transfer to tangible fixed assets (19,553,412,606) (1,132,854,500) Closing balance Including: 42,518,971,094 45,935,588,162 The project cost of Mom Da Chim Resort Spa - 53,200,000 Cost of the acquisition of land use right 11,692,435,532 11,675,749,432 Expenses of Vinh Phuong Mine 6,384,038,569 6,384,038,569 Thap Ba 2 extensive project 6,724,527,143 12,429,183,899 Expenses for Cam Ranh Mud Mine Exploration Licence and Register 290,398, ,398,182 Land and Construction expenses in Dao Ngoc 17,427,571,668 15,103,018,080 42,518,971,094 45,935,588,162 21

22 4.13 LONG-TERM INVESTMENTS Investment in associated companies and joint venture 10,542,885,411 11,065,499,736 Codona 21 Century Joint Stock Company 10,542,885,411 11,065,499,736 Other long-term investments 41,123,400,000 45,297,400,000 Purchased 675,000 shares of Vien Dong Securities Company for 10,000/share 6,750,000,000 6,750,000,000 Project of Go Sao Residence in District 12 34,373,400,000 34,373,400,000 Bai Dai Resort Limited Company 4,174,000,000 Provision for diminution in value of long term investments (5,991,395,577) (5,273,638,071) Vien Dong Securities Company (5,991,395,577) (5,273,638,071) 45,674,889,834 51,089,261,665 Movement of the provision for diminution in value of investments represents the decline in value of the investment in Vien Dong Securities Company: Sep Opening balance 5,273,638,071 2,162,037,016 Provision charge for the year 717,757,506 3,111,601,055 Closing balance 5,991,395,577 5,273,638, LONG-TERM PREPAYMENTS Cost of renovation and repairs 838,032, ,226,635 Cost of used tools - 1,189,723,924 Parking costs 383,994,899 - Other costs 1,992,091,477-3,214,118,580 1,641,950, DEFERRED INCOME TAX Deferred income tax assets and liabilities are offset when there is a legally enforceable right to offset current tax assets against current tax liabilities and when the deferred income taxes relate to the same taxation authority. The offset amounts are as follows: 22

23 Accrued expenses - (154,850,268) Cost allocation tools and equipment 6,820,583 6,820,583 Tax loss from ordinary operations - 1,144,113, GOODWILL (6,820,583) 996,083,534 Goodwill represents the excess of the cost of the 8% acquisition of the subsidiary - Sao Mai Century 21 Limited Company over the Company s interest in the total net fair value of the identifiable assets, liabilities and contingent liabilities of subsidiary at the date of acquisition in April The goodwill is recorded and amortised to the income statement in 5 years. Investment value 8,000,000,000 8,000,000,000 Net value at the time of purchase 4,194,721,209 4,194,721,209 Include: Equity 944,000, ,000,000 Investment and development fund 143,169, ,169,884 Undistributed earnings 3,107,641,325 3,107,641,325 Goodwill (5 years allocation) 3,805,278,791 3,805,278,791 Goodwill was allocated (1,141,583,639) (570,791,820) 2,663,695,152 3,234,486, TAXES AND OTHER PAYABLES TO THE STATE BUDGET Value added tax 520,360, ,817,042 Special consumption tax 79,078,711 87,368,574 Business income tax - current 14,189,277,617 3,797,329,326 Personal income tax 41,568,874 58,456,059 Natural resource taxes 18,136,800 15,242,280 Duties and fees 41,821,562 43,060, OTHER PAYABLES 14,890,243,752 4,452,273,655 23

24 Union fees and social insurance 56,919,635 17,245,728 Profit shared to business collaboration partner - Tuoi Tre Newspaper 4,488,927,981 5,135,590,038 Dividends 660,594, ,230,660 Others 954,818, ,636,133 6,161,259,988 6,286,702, BONUS AND WELFARE FUND This fund is established by annual provision from undistributed earnings following the Company s charter and decision of shareholders in general meeting. This fund is used to pay bonus and other welfare to employees in compliance with the Group s bonus and welfare policies. Movement in bonus and welfare fund during the year is as follows: 30 Sep Opening balance 4,046,974,898 5,211,275,943 Appreciation from retained earnings 1,500,000,000 2,228,918,184 Appreciation from minority interests 168,568,862 Other contribution 24,969, ,867,000 Utilisation (2,295,992,148) (3,675,655,091) Closing balance 3,275,952,150 4,046,974, OTHER LONG-TERM PAYABLES 24 Tenant deposits 6,077,038,430 5,815,218,430 Capital contribution of Tuoi Tre Newspaper in Yoco Building Joint Venture (*) 14,334,529,046 14,334,529,046 Capital contribution of Nam Long Investment Joint Stock Company in 9B7 South Sai Gon Residential Project (**) 68,647,016,659 58,447,016,659 89,058,584,135 78,596,764,135 (*) According to the Business Cooperation Agreement of Yoco Building between the Company and Tuoi Tre Newspaper, the capital contribution ratio is 50:50 for each party, profit after tax from office leasing after distributing to the mandatory reserves funds (5%) and bonus and welfare funds (5%) is shared to each party

25 equally. Sep 2015, profit shared to Tuoi Tre Newspaper amounted to 4,488,927,981 (2014: 5,135,590,038). (**) According to Business Cooperation Agreement of 9B-7 Zone, South Sai Gon Residential Area, Nam Long Investment Joint Stock Company contributes 45% of land area in this project. In 2014, Nam Long Company contributed additional 23,559,723,000, raising capital contribution ratio up to 60% DEFERRED INCOME TAX PAYABLE Taxes Deferred income arising from temporary differences are deductible: Unrealised foreign exchange gains 267,558, ,558,653-25

26 4.22 MOVEMENT OF OWNERS CAPITAL Share Share Investment and Undistributed capital premium Treasury shares development funds earnings Total As at 1 January ,363,710, ,743,244,250 (18,474,260,95 34,031,363, ,200,516, ,864,573,689 Profit for the year ,673,752,148 42,673,752,148 Appreciation to Bonus and welfare fund (2,228,918,184) (2,228,918,184) Dividends paid in 2013 (*) (12,835,459,700) (12,835,459,700) Dividends paid in 2014 (**) (12,835,459,700) (12,835,459,700) Bonus to the Board of Management and the Board of Supervision (95,000,000) (95,000,000) Profit shared under Yoco Building (5,135,590,038) (5,135,590,038) As at 31 December ,363,710, ,743,244,250 (18,474,260,952) 34,031,363, ,743,840, ,407,898,215 Profit for the year ,891,297,335 61,891,297,335 Treasury shares - - (105,808,907,424) - (105,808,907,424) Appreciation to Bonus and welfare fund (1,500,000,000) (1,500,000,000) Dividends paid (14,669,096,800) (14,669,096,800) Bonus to the Board of Management and the Board of Supervision (319,000,000) (319,000,000) Profit shared under Yoco Building (4,488,927,981) (4,488,927,981) As at 31 September ,363,710, ,743,244,250 (124,283,168,376) 34,031,363, ,658,113, ,513,263,345 26

27 MOVEMENT OF OWNERS CAPITAL (CONTINUE) 2014 Sep 2015 Owner s equity + Opening balance 193,363,710, ,363,710,000 + Equity increased in year Closing balance 193,363,710, ,363,710,000 Treasury shares (par value) (57,998,960,000) (10,000,000,000) Owner s equity 135,364,780, ,363,710,000 Dividends paid 14,669,096,800 25,670,919,400 (*) The Resolution of the 2015 Annual Shareholders General Meeting on 11 April 2015 declared dividends distribution for the year 2014 of 15% of the share capital, of which 7% was paid in The remaining 8% was already paid in (**) The Resolution of the 2015 Annual Shareholders General Meeting on 11 April 2015 declared that Company is going to repurchase 4,800,000 treasury shares at a price 22,000 /Share. On 30 September 2015, number of repurchased treasury shares is 4,799,896 equivalents to 105,808,907,424. SHARES Ordinary shares Number of shares registered 19,336,371 19,336,371 Number of shares issued 19,336,371 19,336,371 Number of shares repurchased (5,799,896) (1,000,000) Number of existing shares in issue 13,536,475 18,336,371 Par value 10,000 10,000 Preference shares: none. 27

28 5. ADDITIONAL INFORMATION FOR ITEMS PRESENTED IN INCOME STATEMENT 5.1 REVENUE Sep 2015 Sep 2014 Revenue from selling land 130,750,319,723 94,359,767,309 Revenue from office leasing 18,152,601,242 17,120,569,783 Revenue from accommodation and foods service 11,006,056,635 10,990,334,803 Revenue from mineral and mud bathing service 53,745,205,993 53,865,895,253 Revenue from other services 150,916,547 47,000,000 Sales deductions Special Consumption Tax - - Net revenue from sales of goods and rendering of services 5.2 COST OF SALES 213,805,100, ,394,628,071 Sep 2015 Sep 2014 Costs of office leasing, apartment service 6,207,227,440 6,001,613,793 Costs of land 75,225,439,816 57,131,654,328 Mineral and mud bath services and mud products 19,714,540,057 18,887,654,255 Hotel, food and beverage services 10,935,434,868 10,887,574, ,082,642,181 92,908,496,712 Costs by factor Sep 2015 Sep 2014 Raw material costs 3,852,941,396 3,835,951,654 Labour costs 15,457,852,199 13,351,674,643 Depreciation expense 5,626,384,712 5,411,433,741 Costs of land 75,225,439,816 57,131,654,328 Other costs 11,920,024,058 13,177,782, ,082,642,181 92,908,496,712 28

29 5.3 FINANCIAL INCOME Sep 2015 Sep 2014 Interest income 7,226,139,618 5,761,768,464 Net gain from foreign currency translation at 548,549,037 82,386,577 year-end 7,774,688,655 5,844,155, SELLING EXPENSES Sep 2015 Sep 2014 Staff costs 2,190,765,775 1,691,155,302 Depreciation charges of fixed assets 30,159, ,460,615 Other expenses 9,223,461,795 4,470,278, GENERAL AND ADMINISTRATION EXPENSES 11,444,387,392 6,959,894,652 Sep 2015 Sep 2014 Staff costs 9,019,829,812 8,708,863,637 Depreciation charges of fixed assets 76,045, ,248,170 Provision for doubtful debts - 255,428,769 Other expenses 4,628,612,208 3,838,084,763 13,724,487,177 13,130,625,339 29

30 5.6 OTHER INCOMES Sep 2015 Sep 2014 Customer compensation - 117,811,652 Revert provision for financial investments - 2,426,406 Other incomes 151,610, ,482, TAXATION 151,610, ,720,846 Sep 2015 From 1 Jan to 30 Sep 2014 Business income tax - current 17,184,292,589 10,777,357,186 Business income tax - deferred 1,256,821, ,000,000 18,441,114,193 11,107,357,186 Business income tax expenses - current Sep 2015 Sep 2014 Net accounting profit before tax 83,044,732,478 49,609,062,825 Adjust: Permanent differences Tax on expenses not deductible 694,231, ,877,563 Temporary differences Unrealised foreign exchange gains (512,310,839) (81,926,393) Revert accrual expenses (1,500,000,000) Losses ordinary business of the (5,200,514,632) previous year No tax losses 84,282,665 43,973,216 Taxable profits 78,110,420,869 48,987,987,211 Tax rate 22% 22% Business income tax - current 17,184,292,589 10,777,357,186 Business income tax of the previous year 51,243,340 Business income tax expenses - current 30 17,184,292,589 10,828,600,526

31 Business income tax expenses deferred Sep 2015 From 1 Jan to 30 Sep 2014 Accrued expenses last year, this year's expenditures - 330,000,000 Unrealized exchange rate differences 112,708,385 - Prepaid expenses Tools and equipment allocation - (45,094,139) Tax Losses of ordinary business in ,144,113,219-1,256,821, ,905, EARNINGS PER SHARE Earnings per shares at 30 September 2015 is calculated by dividing net profit attributable to shareholders by the average number of outstanding ordinary shares as follows: Sep 2015 From 1 Jan to 30 Sep 2014 Net profit attributable to shareholders () 57,402,369,354 30,807,323,717 Bonus and welfare fund (1,500,000,000) Average number of outstanding ordinary shares 13,536,475 18,336,371 Earnings per share () 4,130 1, DILUTED EARNINGS PER SHARE Sep 2015 From 1 Jan to 30 Sep 2014 Net profit attributable to shareholders () 57,402,369,354 30,807,323,717 Bonus and welfare fund (1,500,000,000) Average number of outstanding ordinary shares 13,536,475 18,336,371 The share is expected to release more - - Diluted earnings per share () 4,130 1,680 31

32 Form B 09 DN/HN 6. SEGMENT REPORTING Segment reporting by business stream, including: real estate investment, office leasing and other services. Income statement for the period ended 30 September 2015 and 30 September 2014 Real estate From 1 Jan to 30 Sep 2015 From 1 Jan to 30 Sep 2014 Office leasing From 1 Jan to 30 Sep 2015 From 1 Jan to 30 Sep 2014 Mineral and mud bath From 1 Jan to 30 Sep 2015 From 1 Jan to 30 Sep 2014 Unit: million Restaurant and hotel Others Total From 1 From 1 From 1 From 1 From 1 From 1 Jan to Jan to Jan to Jan to Jan to 30 Jan to 30 Sep 30 Sep 30 Sep 30 Sep Sep Sep Net Revenue 130,750 94,360 18,152 17,121 53,745 53,866 11,006 11, , ,396 Cost of sale (75,225) (57,132) (6,207) (6,002) (19,714) (18,888) (10,935) (10,888) - - (112,083) (92,908) Gross profit 55,525 37,228 11,945 11,119 34,031 34, ,722 83,486 Unallocated expenses (25,169) (20,090) Financial income ,775 5,844 Financial expense (718) (13,956) Losses in associates (522) (5,753) Other income (43) 78 Business income tax-current (17,184) (10,829) Business income taxdeferred (1,257) (285) Profit after tax 64,604 38,495 Purchase of fixed assets Depreciation expense - - 1,085 1,073 1, ,529 3, ,080 5,404 32

33 Form B 09 DN/HN 6. SEGMENT REPORTING (continued) Assets and liabilities segment at 30 September 2015 and 30 September Real estate From 1 Jan to 30 Sep 2015 From 1 Jan to 30 Sep 2014 Office leasing From 1 Jan to 30 Sep 2015 From 1 Jan to 30 Sep 2014 Mineral and From 1 Jan to 30 Sep 2015 mud bath From 1 Jan to 30 Sep 2014 Restaurant and From 1 Jan to 30 Sep 2015 Unit: million hotel Others Total From 1 From 1 From 1 From 1 Jan to Jan to Jan to Jan to 30 Sep 30 Sep 30 Sep 30 Sep From 1 Jan to 30 Sep 2014 Segment assets 192, ,755 12,224 13,473 64,633 51,262 33,967 36,780 75, , , ,119 Unallocated assets 211, ,139 Total assets 590, ,258 Segment liabilities 73,183 59,302 24,341 26,426 3,884 3, , ,685 90,254 Unallocated liabilities 20,650 8,538 Total liabilities 123,335 98,792 Segment reporting by geographical area was not prepared as the Group s operation is solely in Vietnam territory. 33

34 7. FINANCIAL INSTRUMENTS Financial assets and financial liabilities Financial assets: trade receivables, other receivables, cash and bank deposits arising from the group's activities. Financial liabilities: Trade accounts payables and other payables. The purpose of financial liabilities is order to mobilize financial resources to serve the group's activities. Book value Actual value Million Million Million Million Financial assets Cash and cash equivalents 79, ,817 79, Trade receivables 2,059 2,511 2,059 2,511 Other receivables 1,306 1,205 1,306 1,205 83, ,533 83, ,533 Financial liabilities Trade accounts payables 1,709 1,100 1,709 1,100 Other payables 9,308 5,871 9,308 5,871 11,017 6,971 11,017 6,971 The actual value of financial assets and liabilities were not accurately evaluated on 30 September 2015 and on 1 January However, the board of directors estimated that the actual value was not essential difference from book value at the time of ending period. The Group is able to have some market risk and credit risk: Market risk: The Group s activities will have market risk when interest rate changes, particularly, bank deposits. A decrease in interest rate will tend to decrease in the group s financial incomes. Credit risk is the risk of financial loss to the Group if a customer or counterparty to a financial instrument fails to meet its contractual obligations; The Group adopts the policy of dealing with customers of appropriate credit history to mitigate credit risk. This risk arises mainly from receivables from customers of the Group. The Group assess the credit risk of accounts receivables is not significant because the Group often receives advance payments from customers before providing services. Cash and term deposits at banks of the Group mainly deposited in high credit financial institutions. The Board of Directors has not found significant credit risk from the deposit and do not think the financial institutions could lose the ability to pay debts and cause losses to the Group. 34