TRANSIMEX - SAIGON ANNUAL REPORT 2007
Contents Message from the Chairman 4 General information 6 Milestone 8 Joint venture company 10 The Board Members and Board of Management 12 Shareholders information 14 Report of General Director 19 Report of capital expenditure year 2007 23 Plan of capital construction & maintenance of 2008-2009 period 24 Business plan of 2008 26 Auditor s report 28 Balance sheet 30 Notes to the financial statements 36 Contact information 52
Dear our shareholders and investors! In 2007, Vietnam has made great progress after becoming 150th member of WTO, facilitated integration into world economy, the development of investment, trade and import-export. That is not only great chance for trade in logistics, but also not less challenge due to actual state that Vietnamese logistics companies are played only the role of forwarding agencies for foreign forwarding agents, currently it is required to affirm their position to compete with famous and over 100 years experienced International Freight Forwarder in the local market. Over 25 years operation, Transimex-Saigon has become professional and prestigious logistics supplier domestically and internationally. To welcome the integration, as from starting equitization, in 2000, the Board Members has focused on investment in and development warehousing services and yards: construction of wharf, conversion of normal yard into ICD (Inland Clearance Depot), conversion of normal storage into bonded warehouse and CFS warehouse. Until now, ICD Transimex has become one of the most bustling and effective ICD among ICDs in the area. Besides, thanks to the advantage of our head office good location, the company has invested 4 Transimex Annual Report 2007
Message from the Chairman in construction office building TMS-Tower at 172, Hai Ba Trung, district 1, to increase profit and ensure us business balance even at the most difficult period. Effective and well-oriented investment during past time has contributed to increase in labor productivity, improvement of service quality, enhancement of competitiveness of the company. Although there are many changes in business and investment environment, while many domestic logistics companies are closed down, Transimex-Saigon still has maintained regular growth rate, distribution of dividend to shareholders is ranging from 15 to 22%/ year, the owned capital of the company has reached 177 billion, six times as much as time of starting equitization in 2000. Production and business in 2007 reached and exceeded the planned norm, income and profit increased by 7% compared with 2006. This gained achievement is also thanks to great contribution of employees of the company, shareholders trust, making capital contribution to investment project, intellectual contribution made by the Board Members and effective management of Executive board. Our company s strategy is to concentrate our business in professional logistics, to continue investment in modernizing existing infrastructure and expanding effectively scope of business to prepare for opening logistics market in 2012. At the same time, to develop labour source, increase the cooperation, joint-venture, association to reduce competition and expand the market share, to develop some support trades such as : express delivery, warehouse management service, operate distribution center... The company will grow gradually and safely, ensure rate of profit per chartered capital from 20-25% and higher. In 2008, economic-social situation will have unexpected changes, however, with sound development strategy and customers confidence, employees of the company, shareholders and investors of Transimex- Saigon, I ensure that the Board Members will fully devote to make the value of the company will increase more and more; benefit of customers, shareholders, employees and trade name of Transimex-Saigon will become more stably grow up. On behalf of the Board Members, I highly appreciate efforts made by Executive board and whole employees of Transimex-Saigon. Thanks shareholders, customers and relevant agencies having trusted, supported, cooperated with the company in past time. Looking forward to your kind attention advices and continuing support. Wishing you good health, happiness and success. Sincerely, Tran Hong Dom Chairman 5 Transimex Annual Report 2007
General information Full name : TRANSFORWARDING WAREHOUSING JOINT STOCK CORPORATION Trade name : TRANSIMEX - SAIGON Securities code : TMS Head office : 429 Vo Van Tan St., Ward 5, Dist. 3, Ho Chi Minh City Tel : (84-8) 8181 080 (20 lines) Fax. : (84-8) 8181 083 Email : info@transimexsaigon.com; tsmsg-fax@hcm.vnn.vn Website : www.transimexsaigon.com Charter Capital : VND 63,480,000,000 (Sixty-three billion four hundred and eighty million VND) Outstanding shares : 6,348,000 shares Bank : Vietcombank, Ho Chi Minh City Branch Account No. : VND 007.100.0006146 - USD 007.137.0082671 Business License No. 056651 issued by Department of Planning & Investment of HCMC on December 03, 1999. Business activities : International freight forwarding, warehousing services, general trading, office leasing. ICD TRANSIMEX at Truong Tho ward, Thu Duc district with total area 100,000 square meters. TMS DEPOT with 20,000 square meters empty CY. The company has branches in Ha Noi, Hai Phong and Da Nang. The company s representative offices at Binh Duong and Dong Nai Province. 6 Transimex Annual Report 2007
7 Transimex Annual Report 2007
8 8 Transimex Baùo caùo Annual thöôøng Report nieân 2007 2007
Milestone THE IMPORTANT EVENTS Transforwarding Warehousing Joint Stock Corporation (Transimex - Saigon) was State owned company, established in 1983. On 01 January 2000, was transfered to joint stock company under the Decision No. 989/QÑ-Ttg issued by the Prime Minister dated 26 October 1999 with 22 billion VND total chartered capital. TRANSIMEX - SAIGON s shares was licenced for listing at Ho Chi Minh Stock Exchange on 20 July 2000. TRANSIMEX - SAIGON s shares was listed on stock market on 4 August 2000. On June 2004, TRANSIMEX - SAIGON issued additional 1,100,000 shares for increasing chartered capital to VND 33 billion from VND 22 billion from accumulated profit. On September 2005, TRANSIMEX - SAIGON issued additional 990,000 shares for equipment and investment facilities, increasing chartered capital to VND 42.9 billion from VND 33 billion. On August 2007, TRANSIMEX - SAIGON successfully issued additional 2,058,000 shares for construction office building, increases its chartered capital to VND 63.48 billion from VND 42.9 billion. TRANSIMEX - SAIGON achieved the Quality Management System conforming to the requirement of ISO 9002 and being certified by SGS on 2 October 2000, updated ISO 9001:2000 in July 2003. TRANSIMEX - SAIGON is a member of FIATA, VIFFAS, VCCI since 1989 and member of IATA Cargo Agent since 2000. 9 Transimex Annual Report 2007
Joint venture company 10 10 Transimex Baùo caùo Annual thöôøng Report nieân 2007 2007
Nippon Express Vietnam Co., Ltd. Nippon Express (Vietnam) Co., Ltd. is a joint venture company established by Transimex-Saigon (50%) and Nippon Express (Japan) (50%). After 8 years of operation, the joint venture Nippon Express Vietnam Co., Ltd. has been unceasingly developed and obtained considerable share in Vietnam market. At present, the company has improved activities in its branches at Hanoi and Hai Phong in order to enlarge the cargo distribution business for northern area to Japan. As of August 2006, it has received the license in handling seafreight cargo. In 2007, its turnover increased 62% compared the same period in 2006. Total contributed capital upon 31 December 2007 was nearly 29 billion VND that almost 6 times compared to the initial figure at October 2000 (4.95 billion VND). Accordingly, total profit divided was up to 7.2 billion VND. 11 Transimex Annual Report 2007
The Board Members and Board of Management THE BOARD MEMBERS Tran Hong Dom (Mr.), graduated University of Foreign Trade, high-ranking expert in foreign trade transportation and logistics business with over 42 years experience, in which 24 years is General Director of Transimex Saigon. Besides that, he is Founder and Chairman of Transimex Saigon (TMS) since 2000. Nguyen Chi Thien (Mr.), had over 32 years experience in foreign trade transportation and logistics business, 24 years in TMS. He became member of Board Members and is Founder since 2000. At present, he is Deputy General Director and Vice Chairman of Board Members of TMS. Tran Thi Nguyen Hang (Mrs.), graduated University of Foreign Language and University of Foreign Trade, Master of Business Administration (USA), had over 17 years experience in foreign trade transportation and logistics business and in TMS. She is member of Board Members of TMS since 2000, at present, holding General Director of TMS. Phan Thanh Nghia (Mr.), Mechanic Engineer, had over 27 years experience in foreign trade transportation and logistics business and 25 years in TMS. He is member of Board Members of TMS since 2004, at present, holding Manager of Planning and Investment Department of TMS. Christian Philip Kamm (Mr.), the financial investment expert, at present, is holding Chairman of Kamm Investment - Ohio, USA. He became member of Board Members of TMS since 2004. Kamm investment is big shareholder from starting time. Huynh Minh Thao (Mr.), had over 25 years experience in foreign trade transportation and logistics business, in TMS and NEV. He became member of Board Members and is Founder since 2000. At present, he is holding Deputy Executive Director of Nippon Express Vietnam joint venture company. Bui Tuan Ngoc, Construction Engineer, at present, is holding Chairman and General Director of Thien Hai Manufacturing, Trading and Building Co., Ltd. He became member of Board Members of TMS since 2006. THE EXECUTIVE OFFICERS General Director Mrs. Tran Thi Nguyen Hang Deputy General Director Mrs. Vo Ngoc Thuy Mr. Nguyen Chi Thien Mrs. Tran Thi Hong Yen COMMITTEE OF CONTROLLERS Chief Controller Mr. Nguyen Cong Hieu Members Mrs. Nguyen Thi Minh Chau Ms. Nguyen Thi Dam 12 Transimex Annual Report 2007
THE BOARD MEMBERS Chairman Mr. Tran Hong Dom (1) 6 7 5 1 1 4 3 2 Vice Chairman Mr. Nguyen Chi Thien (2) Members Mrs. Tran Thi Nguyen Hang (3) Mrs. Pham Thi Phuc (4) (Representative for Mr. Christian Philip Kamm) Mr. Huynh Minh Thao (5) Mr. Bui Tuan Ngoc (6) Mr. Phan Thanh Nghia (7) COMMITTEE OF CONTROLLERS (From left:) Chief Controller Mr. Nguyen Cong Hieu Members Mrs. Nguyen Thi Minh Chau Ms. Nguyen Thi Dam 13 Transimex Annual Report 2007
Shareholders information 14 14 Transimex Annual Annual Report Report 2007 2007
RATE OF SHARES AND CHANGES OF THE BOARD MEMBERS No. Name of shareholder Owned Owned Changes share at Addition Total share at 31/12/2006 Selling Buying 31/12/2007 % Ratio 1 Tran Hong Dom 289,440 130,560 420,000 6.62 2 Nguyen Chi Thien 106,900 106,900 1.68 3 Tran Thi Nguyen Hang 31,030 70,206 101,236 1.59 4 Kamm Investment Inc. 170,000 170,000 2.68 5 Phan Thanh Nghia 33,618 33,618 0.53 6 Bui Tuan Ngoc 171,916 66,543 238,459 3.76 7 Huynh Minh Thao 127,890 127,890 2.01 Total 930,794 267,309 1,198,103 18.87 SHAREHOLDERS STATISTIC Shareholders structure (To Dec.31, 2007) No. Items Shares Value (VND) Ratio (%) Total shares 6,348,000 63,480,000,000 100.00 1 The Board Members 1,198,103 11,981,030,000 18.87 2 The shareholders own over 5% shares 2,536,082 25,360,820,000 39.95 - Domestic shareholders 873,494 8,734,940,000 13.76 - Foreign shareholders 1,662,588 16,625,880,000 26.19 3 The shareholders own under 5% shares 2,613,815 26,138,150,000 41.18 - Domestic shareholders 1,336,487 13,364,870,000 21.05 - Foreign shareholders 1,277,328 12,773,280,000 20.13 Note: Nominal value VND10,000/per share (Data based on official document No 326 & 327/DS provided by HCMC S.T.C dated 14 Jan. 2008) 15 Transimex Annual Report 2007
16 Transimex Baùo caùo thöôøng nieân 2007
Our steps are to go closer to you... 17 Transimex Baùo caùo thöôøng nieân 2007
In 2007, in context of being as WTO s member, there had a lot of advantages for Vietnam s economy growth in common and Ho Chi Minh City s in particular. People s income has been improved and the country s GDP was above 8%. In meantime, the company s service performance faced a great deal of difficulties because of increase on fuel price, input freight and fierce competition from forwarders relating to the quality and service price. In addition, the company s warehouse and yard s area was not enough to meet all the requirement of customers. Since May 2007, for constructing TMS-Tower Building, the company s office has been moved to new location, 429 Vo Van Tan Str., Dist. 3, office lease expense and remaining depreciation of the former building at 172 Hai Ba Trung Street made business expenditure increased considerably affecting to the company s performance. To overcome these difficulties while to improve competitiveness, raise the business performance as well as to reinforce and keep the trademark, the company has already upheld its advantages services such as: Door to door delivery, bonded warehouse, CFS, ICD, etc. Furthermore, the company has 18 Transimex Annual Report 2007
Report of General Director bravely developed a new service that is office leasing. Specifically, July/2007 TMS-Tower building at 172 Hai Ba Trung, Dist. 1 with 14 floors and construction gross floor area of approximately 8,500m.sq. is on construction with gross investment capital of over 70bil.vnd. The construction time is 20 months and estimated to complete in Q1/2009. Besides intensive development of human resource, improvement on management and capital use efficiencies, expansion on services and modernization on ICD have been applied for upholding internal strengths in an attempt to controlling the market. The company also concentrated on joint venture, cooperation with domestic and oversea partners by raising investment capital into NEV and joint venture and alliance procedures with other partners are on the process. PERFORMANCE 2007: In 2007, Nippon Express Vietnam (NEV) was licensed for sea freight forwarding so the company had to designated a great deal of goods transported by the sea to it. However, the company reached encouraged results that the revenue and profit exceeded their annual targets slightly higher than those in 2006 with trusts from the customers and partners. Goods and services output averagely raised from 5-10%. Gross revenue was 140,082bil.vnd, or 100.06% of the target, up 7% compared the same period in 2006. Pre-tax profit was 22,953bil.vnd, or 102.01% of the target, up 6.77% compared the same period in 2006. Profit after tax was 16,982bil.vnd, or 101.16% of the target, up 6.68% compared the same period in 2006. Paid dividend was 15% of the chartered capital, or 100% of the target. 2,058,000 shares were successfully issued in order to construct office building TMS-Tower and raise the chartered capital to 63,480bil.vnd. In 2007, the company invested 23,623bil.vnd for repairing and improving container yard; refrigeration workshop; warehouse; equipping machinery and equipment and vehicles such as deck crane, empty container lift-truck, container pick-up truck, electric lift-truck, prime-mover, etc. Since May 2007, the company has already signed the agent contract with a German beverage logistics company - JFH. JFH was established above 160 years ago (1844) and has its offices and agents in above 50 countries all over the world, is occupying the most market share in beverage, especially wine handling services. This agreement contributes to the increase of company handling volume and revenue in 2007 and following years. 19 Transimex Annual Report 2007
Start-up of rep. office in Binh Duong province and movement of that in Dong Nai province have facilitated to expand and develop forwarding services in big industrial parks there. PROSPECT AND PLAN IN 2008: In 2008, the economy, society and politics in the world and the country will be fluctuated requiring the company to actively raise the competitiveness for existence and development. Also, pressure on the human resource, fierce competition, increase on input price (fuel, materials, land rent, etc.) will greatly affect to the company s service price, profit as well as stability and business development. However, the following targets will be attempted to reach: To reach revenue and profit growth targets in connection to stable development. It is specific that the service revenue is 150bil.vnd, up 7%, and the pretax profit is 24bil.vnd, up 5% compared in 2007. To additionally issue about 2mil. shares for mobilizing about 70bil.vnd for investing, constructing and developing CFS and bonded warehouse. To restructure ICD Transimex. To continuously improve and innovate machinery and equipment for business and transport operations such as container truck, pick-up and empty container lift-trucks, lift-truck, lorry, crane truck, GPS, warehouse s shelves and code scanning, etc. To intensively develop warehouse services and those behind the wharfs such as investment and development of treasure, yard for boosting transport, yard business, improving CFS, cool stations in accordance with international standards. To work out yard and warehouse development plans in the country s major economic regions such as Hanoi, Hai Phong, Da Nang, Dung Quat-Quang Ngai, Binh Duong and Dong Nai, etc. To train and develop the human resource in direction of professionalization so as to improve the service quality. To perfect IT application into service provision and management, to sustain the quality management system in accordance with ISO standards. To be engaged in forward services requiring high professionals such as machinery and equipment transport and installation for construction projects, forwarding of alcohol and beverages, exhibition and artistry-display goods, express services and goods distribution, etc. To reinforce joint venture, cooperation and alliance with the domestic and oversea partners for expanding and improving the service quality, developing the agents in the country and the world. To promote a joint venture project with a Japan-based logistics company. To diversify business scopes. Besides of conventional businesses, the company will expand to invest and trade new businesses such as office leasing, services of express, yard and warehouse management, goods distribution center, etc. 20 Transimex Annual Report 2007
With the above prospects, Transimex Saigon s management board and all staffs are always united, active and creative in order to wait in front of opportunities and to overcome difficulties and challenges so that the company could become a prestigious professional logistics provider in the country and the world meeting expectations from the customers, shareholders and investors. General director Tran Thi Nguyen Hang 21 Transimex Annual Report 2007
Report of capital expenditure year 2007 22 22 Transimex Annual Annual Report Report 2007 2007
The items have drown the balance sheet to 31 December 2007: Unit: VND No. Items Financial plan Financial statement Sources 1 Building 1,919,714,792 1,730,011,629 Owned capital 4,216,800,000 Transportation 2 EUR 385,000 20,682,388,547 Owned capital & bank credit equipment USD 501,070 Administrative 3 equipment 1,217,208,488 1,210,213,545 Owned capital Total 7,353,723,280 EUR 385,000 USD 501,070 23,622,613,721 Uncompleted items to 31 December 2007 Unit: VND No. Items Financial plan Financial statement Sources 1 Building In which - TMS Tower - ICD Transimex 94,913,681,352 USD 4,478.23 69,801,094,761 USD 4,478.23 25,112,586,591 38,523,713,342 15,376,438,392 23,147,274,950 Owned capital & share capital source Share capital source Owned capital 2 Transportation equipment 650,000,000 USD 39,356.00 563,212,000 Owned capital 3 Administrative equipment 595,000,000 217,500,000 Owned capital Total 96,158,681,352 USD 43,834.23 77,828,138,684 23 Transimex Annual Report 2007
Plan of capital construction & maintenance of 2008-2009 period Unit: VND Items Financial plan Sources 1) Major maintenance plans 3,000,000,000 Owned capital - Repairing container yard of icd 600,000,000 Owned capital - Repairing warehouses 500,000,000 Owned capital - Repairing transportation equipment 800,000,000 Owned capital - Repairing handling equipment 700,000,000 Owned capital - Repairing local road 400,000,000 Owned capital 2) Plan of purchasing equipment 23,000,000,000 Owned capital - Purchasing transportation equipment 8,000,000,000 Owned capital - Purchasing specialized handling equipment 15,000,000,000 Owned capital 3) Plan of construction 63,000,000,000 Share capital source - Building CFS warehouses, bonded warehouses 63,000,000,000 Share capital source Total 1, 2 & 3: 89,000,000,000 24 Transimex Annual Report 2007
22.953 bil. Profit before tax 25 Transimex Annual Report 2007
Business plan of 2008 26 26 Transimex Annual Annual Report Report 2007 2007
Items Result in 2007 Plan in 2008 I. Financial items Ratio (2008/2007) Total sales 140,081,922,208 150,000,000,000 107% In which: Net sales 135,189,406,636 146,000,000,000 Cost of goods sold 101,313,782,961 111,800,000,000 Gross profit 33,875,623,675 34,200,000,000 Financial incomes 4,494,124,704 4,000,000,000 In which: profit after tax from joint-venture capital 1,650,178,626 1,700,000,000 Financial expenses 1,350,750,211 1,000,000,000 Service expenses - - General and administration expenses 12,636,712,900 13,200,000,000 Net operating profit 24,382,285,268 24,000,000,000 Other incomes 398,390,868 - Other expenses 1,827,579,168 - Other profit (1,429,188,300) - Total accounting profit before tax 22,953,096,968 24,000,000,000 105% Total profit for tax 21,324,148,419 22,300,000,000 Current corporate income tax 5,970,761,557 6,244,000,000 In which: Payable corporate income tax 5,806,104,812 6,244,000,000 Deferred corporate income tax (164,656,745) Net profit after tax 16,982,335,411 17,756,000,000 105% Funds: %/ net profit after tax In which: - Business development fund 15% 15% - Financial reserved fund 5% 5% - Bonus and welfare fund 12% 12% - Operation fund of board of management 3% 3% Dividend/per share (On chartered capital: vnd 63,480,000,000) VND 1,500 VND 1,500 Gross profit / sales ratio 16.39% 16.00% II. Service sector 1. Forwarding services (tons) 670,609 750,400 112% 2. Transportation services: Transport tonnage (ton) 2,441,376 2,690,000 110% 3. Icd services: Unit: VND - Full container throughput (teu) 217,129 242,400 112% - Empty container throughput (teu) 166,395 183,000 110% - Total throughput of warehouse (m 3 ) 160,395 184,000 115% - Total throughput of warehouse (tons) 11,737 13,000 111% - Container yard area (m 2 ) 737,943 738,000 100% 27 Transimex Annual Report 2007
AUDITING AND CONSULTING CO., LTD. Auditor s report No. 0120/2008/BCTC-KTTV AUDITOR S REPORT ON THE FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED 2007 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 2007 of Transforwarding Warehousing Joint Stock Corporation, including the balance sheet as of 31 December 2007, 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 2008 (from page 76 to page 95). 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 2007, 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. 28 Transimex Annual Report 2007
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, 04 March 2008 29 Transimex Annual Report 2007
Balance sheet As of 31 December 2007 Unit: VND Assets Code Note Ending balance Beginning balance A Current assets 100 98,849,112,159 45,737,121,576 I. Cash and cash equivalents 110 V.1 21,021,153,280 20,812,234,362 1. Cash 111 21,021,153,280 20,812,234,362 2. Cash equivalents 112 - - II. Short-term investments 120 58,102,046,400 8,000,000,000 1. Short-term investments 121 V.2 58,102,046,400 8,000,000,000 2. Provisions for devaluation of short-term investments 129 - - III. Accounts receivable 130 10,940,895,698 12,773,298,045 1. Receivable from customers 131 V.3 8,490,384,584 6,203,827,393 2. Prepayments to suppliers 132 V.4 561,644,800 205,633,124 3. Short-term inter-company receivable 133 - - 4. Receivable according to the progress of construction contracts 134 - - 5. Other receivable 135 V.5 1,888,866,314 6,363,837,528 6. Provisions for bad debts 139 - - IV. Inventories 140 V.6 2,101,820,785 1,285,887,943 1. Inventories 141 2,101,820,785 1,285,887,943 2. Provisions for devaluation of inventories 149 - - V. Other current assets 150 6,683,195,996 2,865,701,226 1. Short-term prepaid expenses 151 V.7 3,591,543,832 1,127,413,767 2. Vat to be deducted 152 1,150,632,787 76,280,975 3. Taxes and other accounts receivable from the state 154 9,439,506 9,439,506 4. Other current assets 158 V.8 1,931,579,871 1,652,566,978 For the fiscal year ended 31 December 2007 Balance sheet (cont.) 30 Transimex Annual Report 2007
Assets Code Note Ending balance Beginning balance B Long-term assets 200 114,364,623,392 101,367,122,754 I. Long-term accounts receivable 210 - - 1. Long-term accounts receivable from customers 211 - - 2. Working capital in affiliates 212 - - 3. Long-term inter-company receivable 213 - - 4. Other long-term receivable 218 - - 5. Provisions for bad debts 219 - - II. Fixed assets 220 108,988,585,337 95,942,183,094 1. Tangible assets 221 V.9 66,743,679,592 57,055,464,660 Historical costs 222 120,367,002,054 101,573,390,763 Accumulated depreciation 223 (53,623,322,462) (44,517,926,103) 2. Financial leasehold assets 224 - - Historical costs 225 - - Accumulated depreciation 226 - - 3. Intangible assets 227 V.10 2,738,280,403 2,783,962,411 Initial costs 228 2,891,568,000 2,891,568,000 Accumulated amortizatio 229 (153,287,597) (107,605,589) 4. Construction-in-progress 230 V.11 39,506,625,342 36,102,756,023 III. Investment property 240 - - Historical costs 241 - - Accumulated depreciation 242 - - IV. Long-term investments 250 4,994,800,000 4,994,800,000 1. Investments in affiliates 251 - - 2. Investments in business concerns and joint ventures 252 V.12 4,944,800,000 4,944,800,000 3. Other long-term investments 258 V.13 50,000,000 50,000,000 4. Provisions for devaluation of long-term investments 259 - - V. Other long-term assets 260 381,238,055 430,139,660 1. Long-term prepaid expenses 261 - - 2. Deferred income tax assets 262 V.14 185,132,915 349,789,660 3. Other long-term assets 268 V.15 196,105,140 80,350,000 Total assets 270 213,213,735,551 147,104,244,330 For the fiscal year ended 31 December 2007 Balance sheet (cont.) 31 Transimex Annual Report 2007
Liabilities and owner s equity Code Note Ending balance Beginning balance A Liabilities 300 32,649,759,221 56,412,763,587 I. Current liabilities 310 22,537,354,401 43,276,823,653 1. Short-term debts and loans 311 V.16 3,232,000,000 4,971,317,207 2. Payable to suppliers 312 V.17 531,031,234 133,913,798 3. Advances from customers 313 - - 4. Taxes and other obligations to the State Budget 314 V.18 2,161,353,129 3,057,571,078 5. Payable to employees 315 V.19 6,821,351,398 13,379,876,575 6. Accrued expenses 316 V.20 661,188,983 1,249,248,784 7. Inter-company payable 317 - - 8. Payable according to the progress of construction contracts 318 - - 9. Other payable 319 V.21 9,130,429,657 20,484,896,211 10. Provisions for short-term accounts payable 320 - - II. Long-term liabilities 330 10,112,404,820 13,135,939,934 1. Long-term accounts payable to suppliers 331 - - 2. Long-term inter-company payable 332 - - 3. Other long-term payable 333 V.22 210,808,800 10,808,800 4. Long-term debts and loans 334 V.23 9,695,710,500 12,927,710,500 5. Deferred income tax payable 335 - - 6. Provisions for unemployment allowances 336 205,885,520 197,420,634 7. Provisions for long-term accounts payable 337 - - B Owner s equity 400 180,563,976,330 90,691,480,743 I. Owner s equity 410 176,952,817,736 87,544,661,336 1. Capital 411 V.24 63,480,000,000 42,900,000,000 2. Share premiums 412 V.24 73,135,477,853 9,995,198,520 3. Other sources of capital 413 V.24 - - 4. Treasury stocks 414 - - 5. Differences on asset revaluation 415 - - 6. Foreign exchange differences 416 - - 7. Business promotion fund 417 V.24 18,232,398,815 15,725,340,472 8. Financial reserved fund 418 V.24 4,338,625,501 3,614,739,387 9. Other funds 419 - - 10. Retained earnings 420 V.24 17,766,315,567 15,309,382,957 11. Construction investment fund 421 - - II. Other sources and funds 430 3,611,158,594 3,146,819,407 1. Bonus and welfare funds 431 V.25 3,611,158,594 3,146,819,407 2. Sources of expenditure 432 - - 3. Fund to form fixed assets 433 - - Total liabilities and owner's equity 440 213,213,735,551 147,104,244,330 For the fiscal year ended 31 December 2007 Balance sheet (cont.) 32 Transimex Annual Report 2007
OFF-BALANCE SHEET ITEMS Items Note Ending balance Beginning balance 1. Leasehold assets - - 2. Materials and goods kept or processed for others - - 3. Goods deposited by others - - 4. Bad debts already treated - - 5. Foreign currency USD 323,054.91 595,757.70 6. Estimates for non-business and project expenditure - - 7. Depreciation fund 3,608,767,697 4,210,924,536 Ho Chi Minh City, 21 January 2008 Hoa Thi Minh Nguyet Le Thi Anh Dung Tran Thi Nguyen Hang Preparer Chief Accountant General Director INCOME STATEMENT For the fiscal year ended 2007 Unit: VND Items Code Note Current year Previous year 1. Sales 01 VI.1 135,209,257,473 128,245,017,246 2. Deductions 02 VI.1 19,850,837-3. Net sales 10 VI.1 135,189,406,636 128,245,017,246 4. Costs of goods sold 11 VI.2 101,313,782,961 97,585,672,398 5. Gross profit 20 33,875,623,675 30,659,344,848 6. Financial income 21 VI.3 4,494,124,704 2,344,492,258 7. Financial expenses 22 VI.4 1,350,750,211 672,543,904 In which: Loan interest expenses 23 1,192,319,331 633,437,333 8. Selling expenses 24 - - 9. Administrative overheads 25 VI.5 12,636,712,900 11,025,770,651 10. Net operating profit 30 24,382,285,268 21,305,522,551 11. Other income 31 VI.6 398,390,868 201,492,766 12. Other expenses 32 VI.7 1,827,579,168 9,225,192 13. Other profit/(loss) 40 (1,429,188,300) 192,267,574 14. Total accounting profit before tax 50 22,953,096,968 21,497,790,125 15. Current corporate income tax 51 V.18 5,806,104,812 5,929,834,780 16. Deferred corporate income tax 52 VI.8 164,656,745 (349,789,660) 17. Profit after tax 60 16,982,335,411 15,917,745,005 18. Earning per share 70 VI.9 3,199 3,710 Ho Chi Minh City, 21 January 2008 Hoa Thi Minh Nguyet Le Thi Anh Dung Tran Thi Nguyen Hang Preparer Chief Accountant General Director 33 Transimex Annual Report 2007
CASH FLOW STATEMENT For the fiscal year ended 2007 (Direct method) Unit: VND Items Code Note Current year Previous year I. Cash flows from operating activities 1. Gains from sales of goods and service provisions and other gains 01 128,553,752,602 118,722,360,702 2. Payments to suppliers 02 (61,322,573,105) (51,274,161,517) 3. Payments to employees 03 (40,364,416,919) (32,273,586,888) 4. Loan interests already paid 04 (1,192,319,331) (633,437,333) 5. Payments for corporate income tax 05 (6,883,758,573) (3,572,527,713) 6. Other gains 06 115,292,762,657 84,085,232,878 7. Other disbursements 07 (129,956,840,787) (82,792,012,536) II. Net cash flows from operating activities 020 4,126,606,544 32,261,867,593 Cash flows from investing activities 1. Purchases and construction of fixed assets and other long-term assets 21 (28,933,032,905) (33,397,663,553) 2. Gains from disposal and liquidation of fixed assets and other long-term assets 22 VI.6 351,818,182 56,911,818 3. Loans given and purchases of debt instruments of other entities 23 (80,102,046,400) (8,000,000,000) 4. Recovery of loan given and disposals of debt instruments of other entities 24 - - 5. Investments in other entities 25 6. Withdrawals of investments in other entities 26 30,000,000,000-7. Receipts of loan interests, dividends and profit shared 27 3,238,042,902 2,124,864,288 Net cash flows from investing activities 30 (75,445,218,221) (39,215,887,447) III. Cash flows from financing activities 1. Gains from stock issuance and capital contributions from shareholders 31 83,733,191,600 2. Repayments of capital contributions to owners and re-purchases of stocks already issued 32 3. Short-term and long-term loans received 33 - - 4. Loan principal amounts repaid 34 V.15 (4,971,317,207) (4,004,000,000) 5. Payments for financial leasehold assets 35-6. Dividends and profit shared to the owners 36 (7,235,000,000) (6,435,000,000) Net cash flows from financing activities 40 71,526,874,393 (10,439,000,000) Net cash flows during the year 50 208,262,716 (17,393,019,854) Beginning cash and cash equivalents 60 V.1 20,812,234,362 38,150,531,421 Effects of fluctuations in foreign exchange rates 61 656,202 54,722,795 Ending cash and cash equivalents 70 V.1 21,021,153,280 20,812,234,362 Ho Chi Minh City, 21 January 2008 Hoa Thi Minh Nguyet Le Thi Anh Dung Tran Thi Nguyen Hang Preparer Chief Accountant General Director 34 Transimex Annual Report 2007
Notes to the financial statements For the fiscal year ended 2007 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 and lubricants. - Providing multi-model transportation services. - Office leasing. 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 2007 is the 7th fiscal year of the company. 2. Standard currency unit used in accounting The standard currency unit used in accounting is Vietnam dong (VND). 36 Transimex Annual Report 2007
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. IV. ACCOUNTING POLICIES 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 can not 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 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: 37 Transimex Annual Report 2007
Fixed assets Buildings and structures 25-50 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. 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. 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 of 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. 38 Transimex Annual Report 2007
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 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 2006: VND 16,101/USD 31 December 2007: VND 16,114 /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. 39 Transimex Annual Report 2007
V. ADDITIONAL INFORMATION ON THE ITEMS OF THE BALANCE SHEET 1. Cash and cash equivalents Ending balance Beginning balance Cash on hand 411,589,361 928,042,030 Cash in bank 20,609,563,919 19,884,192,332 Total 21,021,153,280 20,812,234,362 2. Short-term investments This item reflects the time deposits at Vietcombank. 3. Receivable from customers Ending balance Beginning balance Receivable for forwarding service 5,923,176,700 4,293,094,184 Receivable for warehousing and transporting service (ICD) 2,567,207,884 1,910,733,209 Total 8,490,384,584 6,203,827,393 4. Prepayments to suppliers Ending balance Beginning balance Unico Handels Gmbh Company 536,644,800 - Tan Vinh Loc Production Trading and Maritime Service Co., Ltd. - 22,000,000 Thong Nhat Trading and Services Co., Ltd. - 183,633,124 Other suppliers 25,000,000 - Total 561,644,800 205,633,124 5. Other receivable Ending balance Beginning balance Interests on time deposits 1,006,400,000 - Freights collected on others behalf 132,242,700 5,801,514,949 Receivable for amounts paid on others behalf 750,223,614 562,322,579 Total 1,888,866,314 6,363,837,528 6. Inventories Ending balance Beginning balance Materials and supplies 133,624,535 219,326,373 Spare parts 1,283,881,411 1,066,561,570 Work-in-process 684,314,839 - Total 2,101,820,785 1,285,887,943 40 Transimex Annual Report 2007
7. Short-term prepaid expenses Beginning balance Increases Allocation Ending balance Forwarding fee prepaid 382,493,256 10,944,000 385,111,016 8,326,240 Insurance premiums 67,535,420 145,660,968 101,626,158 111,570,230 Tools 487,551,991 884,683,647 493,530,175 878,705,463 Office and warehouse rentals 167,842,500 2,916,989,741 2,016,645,991 1,068,186,250 Others 21,990,600 1,989,924,244 487,159,195 1,524,755,649 Total 1,127,413,767 5,948,202,600 3,484,072,535 3,591,543,832 8. Other current assets Ending balance Beginning balance Advances 1,342,031,055 916,420,473 Short-term deposits and mortgages 589,548,816 736,146,505 Total 1,931,579,871 1,652,566,978 9. Increases/(decreases) of tangible fixed assets Buildings and structures Vehicles Office equipment Other fixed assets Historical costs Beginning balance 44,143,844,705 52,183,562,317 4,680,376,481 565,607,260 101,573,390,763 Increases 1,730,011,629 20,682,388,547 1,210,213,545-23,622,613,721 Complete construction 1,730,011,629 20,115,755,284 1,210,213,545-23,055,980,458 Loan interest capitalized - 566,633,263 - - 566,633,263 Decreases (3,530,489,000) (899,911,200) (398,602,230) - (4,829,002,430) Liquidation and disposals (3,530,489,000) (899,911,200) (398,602,230) (4,829,002,430) Ending balance 42,343,367,334 71,966,039,664 5,491,987,796 565,607,260 120,367,002,054 In which: Fully depreciated assets but being still in use 73,224,000 3,082,965,299 1,460,558,882-4,616,748,181 Total Depreciation Beginning balance 17,310,773,165 23,990,282,705 2,651,262,973 565,607,260 44,517,926,103 Increases 3,231,171,293 8,352,829,753 666,660,565-12,250,661,611 Depreciation 3,231,171,293 8,352,829,753 666,660,565 12,250,661,611 Decreases (1,869,334,730) (899,911,200) (376,019,322) - (3,145,265,252) Liquidation and disposals (1,869,334,730) (899,911,200) (376,019,322) (3,145,265,252) Ending balance 18,672,609,728 31,443,201,258 2,941,904,216 565,607,260 53,623,322,462 Net book values Beginning balance 26,833,071,540 28,193,279,612 2,029,113,508-57,055,464,660 Ending balance 23,670,757,606 40,522,838,406 2,550,083,580-66,743,679,592 41 Transimex Annual Report 2007
10. Increases/(decreases) of intangible fixed assets Land use right Software to manage containers Initial costs Beginning balance 2,708,840,000 182,728,000 2,891,568,000 Ending balance 2,708,840,000 182,728,000 2,891,568,000 In which: Fully depreciated but being still in use - Amortization Beginning balance - 107,605,589 107,605,589 Increases - 45,682,008 45,682,008 Amortization 45,682,008 45,682,008 Ending balance - 153,287,597 153,287,597 Net book values Beginning balance 2,708,840,000 75,122,411 2,783,962,411 Ending balance 2,708,840,000 29,440,403 2,738,280,403 Total 11. Construction-in-progress Beginning balance Increases Inclusion into fixed assets Other decreases Ending balance Acquisition of fixed assets 16,188,817,996 9,781,908,250 (20,258,270,446) (536,644,800) 5,175,811,000 Construction-in-progress 19,567,004,627 18,208,666,766 (2,797,710,012) (647,147,039) 34,330,814,342 - Construction of CFS and ICD 5,945,967,679 - - (26,179,312) 5,919,788,367 - Office building at 172 Hai Ba Trung - Barge terminal - phases 3 and 4 955,626,363 14,623,012,029 - - 15,578,638,392 12,313,288,107 907,748,220 - (620,967,727) 12,600,068,600 Mechanic refrigeratory plant 352,122,478 3,449,632 (355,572,110) - - - Others - 2,674,456,885 (2,442,137,902) - 232,318,983 Large repair of fixed assets 346,933,400 1,892,921,111 - (2,239,854,511) - Total 36,102,756,023 29,883,496,127 (23,055,980,458) (3,423,646,350) 39,506,625,342 12. 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. 13. Other long-term investments This item reflects the investments in purchases of educational bonds. 14. Deferred income tax assets The deferred income tax assets are related to the accruals of expenses. 15. Other long-term assets Deposits to lease office at Transimex Saigon 16. Short-term debts and loans These are the current portions of long-term loans from Vietcombank Ho Chi Minh City (see the Note V.23). Details are as follows: 42 Transimex Annual Report 2007
Beginning balance 4,971,317,207 Transferring from long-term loans 3,232,000,000 Amount already repaid (4,971,317,207) Ending balance 3,232,000,000 17. Payable to suppliers Ending balance Beginning balance Petroleum Materials Joint Stock Company 120,240,000 101,039,998 Branch of Thanh Long Co., Ltd. 200,466,425 K Line Vn Co., Ltd. 97,629,000 Others 112,695,809 32,873,800 Total 531,031,234 133,913,798 18. Taxes and other obligations to the State Budget Beginning balance Amount payable Amount already paid Ending balance VAT on local sales 158,383,543 1,261,185,985 (1,410,322,891) 9,246,637 Corporate income tax 2,378,959,351 5,806,104,812 (6,883,758,573) 1,301,305,590 Contractor tax 16,084,166 219,669,431 (215,051,887) 20,701,710 Personal income tax 504,144,018 2,964,315,425 (2,638,360,251) 830,099,192 Total 3,057,571,078 10,251,275,653 (11,147,493,602) 2,161,353,129 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 the Note IV.13. Estimated corporate income tax payable during the year is as follows: Current year Previous year Total accounting profit before tax 22,953,096,968 21,497,790,125 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 (1,249,248,784) - Reversal of accrued expenses in the current year 661,188,983 1,249,248,784 Gains from capital contributions in joint ventures (1,650,178,626) (1,552,598,101) Unrealized exchange gain 21,230,077 (16,459,453) Total taxable income 20,736,088,618 21,177,981,355 Corporate income tax rate 28% 28% Estimated corporate income tax payable 5,806,104,812 5,929,834,780 Corporate income tax reduced - Corporate income tax payable 5,806,104,812 5,929,834,780 43 Transimex Annual Report 2007
Other taxes The company has declared and paid these taxes in line with the prevailing regulations. 19. Payable to employees The company has made extractions for salary fund from the realized revenues of the current year at the rate of 60% on revenues less expenses not including salary expenses. 20. Accrued expenses Ending balance Beginning balance Expenses for forwarding service 661,188,983 463,516,666 Large repairs of fixed assets - 785,732,118 Total 661,188,983 1,249,248,784 21. Other payable Ending balance Beginning balance Trade Union s expenditure 695,512,436 591,574,478 Dividends payable 4,443,600,000 3,003,000,000 Payable of amounts collected on others behalf 3,741,317,221 16,890,321,733 Nippon Express(Vietnam) Co., Ltd. 2,639,201,677 16,181,120,186 Other companies 1,102,115,544 709,201,547 Others 250,000,000 - Total 9,130,429,657 20,484,896,211 22. Other long-term accounts payable Long-term deposits received 23. Long-term loans and debts 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 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 Ending balance Beginning balance 9,695,710,500 12,927,710,500 Total 9,695,710,500 12,927,710,500 Details of long-term loans and debts are as follows Credit agreement No. 0036/TD1/06CD dated 18 September 2006 Beginning balance Increases Amount recorded Ending balance 12,927,710,500 - (3,232,000,000) 9,695,710,500 Total 12,927,710,500 - (3,232,000,000) 9,695,710,500 44 Transimex Annual Report 2007
24. Owner s equity Statement of fluctuations in owner s equity Capital Share premiums Business promotion fund Financial reserved fund Retained earnings Total Beginning balance of the previous year 42,900,000,000 9,995,198,520 9,147,675,400 2,819,675,109 15,584,560,134 80,447,109,163 Transferring amounts of reduced and exempted - - 4,192,472,239 - (4,192,472,239) - income tax to funds Allocating funds of the previous year 2,385,192,833 795,064,278 (5,565,449,943) (2,385,192,832) Sharing dividends in the previous year - - - - (6,435,000,000) (6,435,000,000) Profit of the previous year - - - - 15,917,745,005 15,917,745,005 Ending 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 Beginning balance of the current 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 current year 20,580,000,000 63,140,279,333 - - - 83,720,279,333 Profit during the year - - - - 16,982,335,411 16,982,335,411 Allocating funds - - 2,507,058,343 835,686,114 (5,849,802,801) (2,507,058,344) Sharing dividends during the year - - - (8,675,600,000) (8,675,600,000) Disbursements of funds - - - (111,800,000) - (111,800,000) Ending balance of the current year 63,480,000,000 73,135,477,853 18,232,398,815 4,338,625,501 17,766,315,567 176,952,817,736 Details of owner s equity Ending balance Beginning balance Capital in vested by the State 5,148,000,000 4,290,000,000 Capital contributed by shareholders 58,332,000,000 38,610,000,000 Share premiums 73,135,477,853 9,995,198,520 Total 136,615,477,853 52,895,198,520 Dividends Dividends of the previous year 3,003,000,000 Advance of dividends of the current year 4,232,000,000 Total 7,235,000,000 Shares Ending balance Beginning balance Number of shares allowed to be issued 6,348,000 4,290,000 Number of shares already issued and fully contributed into the capital 6,348,000 4,290,000 - Common shares 6,348,000 4,290,000 - Preferred shares - Number of shares re-purchased - - - Common shares - - Preferred shares - Number of outstanding shares 6,348,000 4,290,000 - Common shares 6,348,000 4,290,000 - Preferred shares - - 45 Transimex Annual Report 2007
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 2,138,513,225 1,338,297,783 (664,300,000) 2,812,511,008 Welfare fund 486,904,134 1,289,987,997 (1,178,054,900) 598,837,231 Fund for the Board of Management 521,402,048 501,411,669 (823,003,362) 199,810,355 Total 3,146,819,407 3,129,697,449 (2,665,358,262) 3,611,158,594 VI. ADDITIONAL INFORMATION ON THE ITEMS OF THE INCOME STATEMENT 1.Sales Current year Previous year Gross sales 135,209,257,473 128,245,017,246 Deductions: 19,850,837 - Net sales 135,189,406,636 128,245,017,246 In which: - Forwarding service 63,916,556,252 62,707,052,298 - Warehousing service 71,272,850,384 65,537,964,948 2. Costs of goods sold Current year Previous year Costs of forwarding service 47,006,358,718 47,344,448,191 Costs of services of the ICD 54,307,424,243 50,241,224,207 Total 101,313,782,961 97,585,672,398 3. Financial income Current year Previous year Gains from capital contributed to joint venture 1,650,178,626 1,552,598,101 Bank deposit interests 2,594,264,276 572,571,434 Realized exchange gain - 201,980,953 Unrealized exchange gain 16,307,626 16,459,453 Others 233,374,176 882,317 Total 4,494,124,704 2,344,492,258 46 Transimex Annual Report 2007
4. Financial expenses Current year Previous year Loan interest expenses 1,192,319,331 633,437,333 Exchange loss 158,430,880 39,106,571 Total 1,350,750,211 672,543,904 5. Administrative overheads Current year Previous year Expenses for employees 8,103,964,268 7,478,798,340 Materials and supplies 487,080,243 580,203,414 Depreciation of fixed assets 432,515,757 596,588,354 External service rendered 2,526,739,803 1,418,455,451 Others 1,086,412,829 951,725,092 Total 12,636,712,900 11,025,770,651 6. Other income Current year Previous year Gains from liquidation and disposals of fixed assets 351,818,182 56,911,818 Gains from sales of scraps of tools 2,288,636 14,668,545 Others 44,284,050 129,912,403 Total 398,390,868 201,492,766 7. Other expenses Current year Previous year Expenses for liquidation and disposals of fixed assets 1,823,159,168 9,225,192 Others 4,420,000 - Total 1,827,579,168 9,225,192 8. 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. 9. Earning per share Current year Previous year Accounting profit after corporate income tax 16,982,335,411 15,917,745,005 Profit attributable to holders of ordinary shares 16,982,335,411 15,917,745,005 Ordinary shares outstanding during the year 5,308,872 4,290,000 Earning per share 3,199 3,710 47 Transimex Annual Report 2007
Average ordinary shares outstanding during the year are calculated as follows: Current year Previous year Ordinary shares outstanding at the beginning of the year 4,290,000 4,290,000 Effects of ordinary shares repurchased - - Effects of ordinary shares issued on 17 May 2007 624,658 - Effects of ordinary shares issued on 17 August 2007 394,214 - Average ordinary shares outstanding during the year 5,308,872 4,290,000 10. Operating expenses Current year Previous year Materials and supplies 10,281,663,726 7,508,313,743 Labor 33,921,495,656 37,225,346,189 Depreciation of fixed assets 12,296,343,619 10,003,022,280 External service rendered 53,595,452,552 52,653,266,688 Others 3,855,540,308 1,221,494,149 Total 113,950,495,861 108,611,443,049 VII. OTHER INFORMATION 1. Transactions with related parties Transaction with key persons and other related individuals Income of key persons is as follows: Transaction with other related parties Other related party of the company includes: Current year Previous year Salary 4,576,864,687 3,772,501,680 Social insurance, health insurance 25,169,100 24,116,400 Allowances 88,349,904 34,278,660 Bonuses 27,800,000 36,700,000 Rewards 410,000,000 288,000,000 Total 5,128,183,691 4,155,596,740 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: Current year Previous year Receivable of the amount paid on behalf of Nippon Express (Vietnam) Co., Ltd. - 588,539,214 Payable for the amount collected on behalf of Nippon Express (Vietnam) Co., Ltd. - 36,573,743 Total account receivable - 625,112,957 48 Transimex Annual Report 2007
2. Financial ratios Items Unit Current year Previous year Structures of assets and sources of capital Structure of assets Current assets/ total assets % 46.36 31.09 Long-term assets/ total assets % 53.64 68.91 Sources of capital Liabilities/ total liabilities and owner s equity % 15.31 38.35 Owner s equity/ total liabilities and owner s equity % 84.69 61.65 Liquidity ratios Total assets/ liabilities Time 6.53 2.61 Current assets/ current liabilities Time 4.39 1.06 Cash and cash equivalents/ current liabilities Time 0.93 0.48 Profitability ratios Profit margin on sales Profit before tax/ net sales % 16.98 16.76 Profit after tax/ net sales % 12.56 12.41 Profit/ total assets Profit before tax/ total assets % 10.77 14.61 Profit after tax/ total assets % 7.96 10.82 Profit after tax/ owner s equity % 9.41 18.18 15.92 16.98 17.76 130.79 140.08 150.00 Total turnover Profit after tax Unit: Billion dong 2006 2007 Plan of 2008 49 Transimex Annual Report 2007
50 Transimex Baùo caùo thöôøng nieân 2007
51 Transimex Baùo caùo thöôøng nieân 2007
Contact information ICD TRANSIMEX 7/1 Truong Tho Ward, Thu Duc Dist., Ho Chi Minh City, Viet Nam. Tel: (84-8) 7313302 7311528. Fax: (84-8) 7313079-8978335. Email: icd.info@transimexsaigon.com REPRESENTATIVE OFFICE Dong Nai Argtex Industrial Park, Long Binh Ward, Bien Hoa City, Dong Nai Province, Vietnam. Tel: (84-61) 3891642 Fax: (84-61) 3993611 Email: dno.info@transimexsaigon.com Binh Duong 02-03 VSIP Service No 2 VSIP, Street No. 3, Vietnam Singapore Industrial Park, Thuan An District, Binh Duong Province. Tel: (84-650) 769122 Fax: (84-650) 769121 Email: bdo.info@transimexsaigon.com BRANCHES Ha Noi 19 Thai Ha Str., Dong Da Dist., Ha Noi City, Viet Nam. Tel: (84-4) 8574799 Fax: (84-4) 8574803 Email: tmshn.info@transimexsaigon.com Hai Phong 02 Hoang Van Thu Str., Hong Bang Dist, Hai Phong City, Viet Nam. Tel: (84-313) 842461 Fax: (84-313) 841374 Email: tmshp.info@transimexsaigon.com Da Nang 25-27 Hoang Van Thu Str., Hai Chau Dist, Da Nang City, Viet Nam. Tel: (84-511) 561587 Fax: (84-511) 561589 Email: tmsdn.info@transimexsaigon.com AUDITING COMPANY AUDITING & CONSULTING Co., Ltd (A & C) 229 Dong Khoi Str., District 1, Ho Chi Minh City Tel: (84-8) 827 2295 827 2296 Fax: (84-8) 827 2300
53 Transimex Baùo caùo thöôøng nieân 2007