AUDITED CONSOLIDATED FINANCIAL … · information in accordance with Circular No. 155/2015/TT-BTC dated 06/10/2015 issued by the Ministry of Finance on the disclosure of information

AUDITED CONSOLIDATED FINANCIAL STATEMENTSOFDEVELOPMENT INVESTMENT CONSTRUCTION JOINT STOCK CORPORATION

For the fiscal year ended as on 31st December 2016

Development Investment Construction Joint Stock Corporation No. 265 Le Hong Phong Street, Vung Tau City

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TABLE OF CONTENTS pages

Report of the Board of Directors 2 - 4

Independent Auditor’s report 5 - 6

Audited Conslolidated Financial Statements

Consolidated Balance Sheet 7 - 10

Consolidated Income Statement 11

Consolidated Cash Flow Statement 12-13

Notes to Consolidated Financial Statement 14-61


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REPORT OFTHE BOARDOF DIRECTORS

The Board of Directors of the Development Investment Construction Joint Stock Corporation (hereafter shortly referred to as the “Corporation”) presents this Report together with the Corporation’s Consolidated Financial Statements for the fiscal year ended as on 31/12/2016. Overview of the Corporation The Corporation was converted from a state-owned Company into a Joint Stock Corporation in accordance with Decision No. 1302/QD-BXD dated 15th October 2007 of the Ministry of Construction “on approving the equitization plan of the Development Investment Construction Corporation”. The Corporation was issuedBusiness Registration Certificate for Joint Stock Corporation No. 3500101107 (formerly number: 4903000520) for the first registration on 13th March 2008, reissued BusinessCode dated 24th June 2009 and 11th registration change dated 22nd June 2016 by the Department of Planning and Investment of Ba Ria - Vung Tauprovince.

English name : Development Investment Construction Corporation Abbreviated name : DIC Corp Headquarters : No. 265 Le Hong Phong Street,Ward 8,Vung Tau City, Ba Ria – Vung Tau Province Tel : 064 3859 248 Fax : 064 3560 712 E-Mail : [email protected]; Web: www.dic.vn

Its business lines: Investmentand development of new urban areas and industrial parks; Investment and development of housing and technical infrastructure in urban areas; Trading of real estate, land use rights of owners, users or renters; Construction of civil engineering, traffic and irrigation works; Consultancy on construction investment and trading of tourism services.

Charter capital : VND2,381,948,190,000 Number of shares : 238,194,819 Shares Par value of share : VND10,000 Stock code : DIG

Events after closing out to set up the Final Statements There is no material event occuring after the closing date to prepare the FinancialStatementscausing any of adjustments or announcement on the FinancialStatements. Members of the Board of Directors

Mr. Nguyen Thien Tuan Chairman

Mr. Tran Minh Phu Member

Mr. Le Van Tang Member

Mr. Nguyen Quang Tin Member

Ms. Pham Thi Mai Huong Member


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Board of General Directors

Mr. Tran Minh Phu General Director

Mr. Le Van Tang Deputy General Director

Mr. Hoang Van Tang Deputy General Director

Mr. Nguyen Hung Cuong Deputy General Director

Mr. Bui Van Su Deputy General Director

Mr. Pham Van Thanh Deputy General Director– appointed on 29/03/2016

Board of Supervisors

Ms. Hoang Thi Ha Manager

Mr. Nguyen Trong Nghia Supervisor

Mr. Tran Van Dat Supervisor

Legal Representative

The legal Representative of the Corporation during the year and until the date of this report is Mr. Nguyen Thien Tuan. Auditor

The Consolidated FinancialStatements for fiscal year ended on 31/12/2016 of the Development Investment Construction Joint Stock Corporation have been auditedby TTP Auditing Limited Company.The Unit qualifies auditing for the public interest unit and the interest unit in the field of securities in accordance with the regulations of the Ministry of Finance and the State Securities Commission. Responsibilities of the Board of Directors for Financial Statements

The Board of Directors is responsible for the preparation of Consolidated Financial Statements and the

true and appropriate presentation of the operation, consolidated income statement and consolidated cash

flow statement of the Company in the period.In the preparation of Financial Statements, the Board of

Directors shall commit to complying with the following requirements:

Select suitable accounting policies and then apply them consistently; Make reasonable and prudent evaluations and estimates; Prepare and present the Financial Statements based on compliance with the financial standards,

financial regimes and applicable relevant regulations; Prepare the Financial Statements on a basis of consecutive business operationsexcepting for the

case where it cannot make sure that the Corporation shall continue to do business; Design and implement an internal control system effectively for the purpose of properly

preparing and presenting Financial Statements to minimize risks and frauds. The Corporation’s Board of Directors assures that accounting records are are kept to give anaccurate, proper presentation of the Corporation’s financial situation at any time, and that the Consolidated Financial Statements for the fiscal year ended as on 31/12/2016 comply with the State’s applicable regulations. Also the Board of Directors takes responsibility for safeguarding the assets of the Corporation, and hence, for taking suitable measures for the prevention and detection of frauds and other violations. The Board of Directors committed that the Consolidated Financial Statements for the fiscal year ended as on 31/12/2016 gave a true, proper presentation of the Corporation’s financial situationdated 31/12/2016, Consolidated Income Statement and Consolidated Cash Flow Statement for the fiscal year ended as on


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31/12/2016 in accordance with accounting standards, accounting regimes of Vietnam and and relevant legal regulations relating to preparation and presentation of Consolidated Financial Statements. Other committments

The Board of Directorscommited that the Corporation does not breach its obligation to disclose information in accordance with Circular No. 155/2015/TT-BTC dated 06/10/2015 issued by the Ministry of Finance on the disclosure of information in the security market.

Approval of Consolidated Financial Statements

We, the Board of Directors of Development Investment Construction Joint Stock Corporation approved the Consolidated Financial Statements for the fiscal year ended as on 31/12/2016 of the Corporation presented from page 7 to page 61 attached hereof.

On behalf of Board of General Directors On behalf of Board of Management

General Director Chairman

Tran Minh Phu Nguyen Thien Tuan

Vung Tau, 30th March 2017

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No.: /BCKT/TC

INDEPENDENT AUDITOR’S REPORT

On Consolidated Fiancial Statements ended as on 31/12/2016 Of the Development Investment Construction Joint Stock Corporation

To: Shareholders, Board of Management and Board of General Directors of the Development

Investment Construction Joint Stock Corporation

We, TTP Auditing Limited Company have audited theConsolidated Financial Statements enclosed by the

Development Investment Construction Joint Stock Corporatiom, prepared on 30/03/2017, from page 07

to page 61, including Balance Sheet as on 31/12/2016, Income Statement, Cash Flow Statement for the

fiscal year ended on the same date and Notes to the Financial Statements.

Responsibilities of the Boards of General Directors

The Corporation’s Board of General Directors is responsible for the preparation and the true and proper

presentation of the Corporation’s Consolidated Financial Statements in accordance with accounting

standards, corporate accounting regimes of Vietnam and the legal regulations relating to the preparation

and presentation of the Financial Statements and for the internal control that the Board of General

Directors determines to be necessary to ensure the preparation and presentation of the Financial

Statements without material errors due to frauds or mistakes.

Responsibilities of the Auditors

Our responsibility is to propose our opinions on the Financial Statements based on our auditing results.

We have conducted our audit in accordance with the Vietnamese Standards on Auditing. The Standards

require us to comply with the standards and regulations on professional ethics, planning and performing

the audit to obtain reasonable assurance about whether the Financial Statements of the Corporation have

any of material errors.

The audit includes performing procedures to gather audit evidences about the figures and notes in the

Financial Statements. The audit procedures selected on the basis of the auditor’s judgment, including the

assessment of the risks of material errors in the Financial Statements due to fraud or mistakes. When

performing the assessment of risks, the auditor has reviewed the internal control by the Corporation

relating to the preparation and presentation of the Financial Statements in honest, reasonable way to

design audit procedures that are appropriate with the actual situation, but not to give opinions on the

effectiveness of internal control of the Corporation. The audit also includes evaluating the

appropriateness of used accounting policies and the reasonableness of accounting estimates made by The

Board of General Directors, as well as evaluating the overall presentation of the Financial Statements.

We believe that our obtained audit evidences are sufficient and appropriate as a basis for our audit

opinion.

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Auditor’s opinion

In our opinion, the Consolidated Financial Statements presented honestly and appropriately, in material

respects, of the Financial Statement of the Development Investment Construction Joint Stock Corporation

as on 31/12/2016, as well as Income Statement and Cash Flow Statement for the fiscal year ended on the

same date, in accordance with the accounting standards, corporateaccounting regime of Vietnam, and

legal regulationsrelating to the preparation and presentation of the Financial Statements.

Hanoi, 30th March 2017

TTP Auditing Limited Company

Deputy General Director Auditor

Le Phuong Anh Certificate of audit practice registration

No.: 0739-2017-133-1

Hoang Thi Khanh Van Certificate of audit practice

registrationNo. 0371-2017-133-1

Development Investment Construction Corporation Consolidated Finanical Statements No. 265 Le Hong Phong Street, Vung Tau City For the fiscal year ended as on 31-12-2016

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Form No.: B 01-DN/HN

CONSOLIDATED BALANCE SHEET

As at 31st December 2016

Unit: VND Code ASSETS Note Ending balance Beginning balance 100 CURRENT ASSETS 4,182,170,299,524 3,211,018,731,920

110 Cash and cash equivalents V.1 179,462,187,815 64,549,207,165

111 Cashon hand 179,412,187,815 43,558,165,767

112 Cash equivalents 50,000,000 20,991,041,398

120 Short-term financial investment V.2 40,000,000,000 -

121 Trading securities - -

122 Provision for devaluation of trading securities(*) - -

123 Held to maturity investments 40,000,000,000 -

130 Short-term receivables 1,046,747,241,997 676,226,638,338

131 Short-term receivables from customers V.3 713,954,723,549 496,420,672,949

132 Short-term prepayments to suppliers V.4 203,501,000,485 71,384,731,642

133 Short-term intra-company receivables - -

134 Receivables under schedule of construction contract

- -

135 Short-term loan receivables V.5 30,700,000,000 4,000,000,000

136 Other short-term receivables V.6 127,775,426,623 130,666,400,175

137 Provision for doubtful short-term receivables (*) (29,218,312,490) (26,276,012,875)

139 Shortage of assets awaiting resolution V.7 34,403,830 30,846,447

140 Inventories V.8 2,858,384,052,436 2,436,693,576,382

141 Inventories 2,858,982,948,566 2,437,143,822,512

149 Provision for devaluation of inventories (*) (598,896,130) (450,246,130)

150 Other short-terms assets 57,576,817,276 33,549,310,035

151 Short-term prepaid expenses V.9 42,423,548,163 8,746,325,134

152 Deductible VAT V.10 5,235,625,903 18,191,539,139

153 Taxes and other receivables from government budget

V.10 9,917,643,210 6,611,445,762

154 Government bonds purchased for resale - -

155 Other current assets - -


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(Continued) Unit: VND

Code ASSETS Note Ending balance Beginning balance

200 NON-CURRENT ASSETS 1,693,635,395,548 1,878,291,152,766

210 Long-terms receivables 298,161,671,208 318,139,707,171

211 Long-term receivables from customers V.3 168,674,434,812 167,255,979,388

212 Long-term prepayments to suppliers - -

213 Working capital provided to sub-units - -

214 Long-term internal receivables - -

215 Long-term loan receivables V.5 40,698,803,794 62,140,745,782

216 Other long-term receivables V.6 88,788,432,602 88,742,982,001

219 Provision for doubtful long-term receivables (*) - -

220 Fixed assets 258,830,091,427 245,575,159,129

221 Tangible fixed assets V.11 246,995,411,087 234,912,117,067

222 Historical cost 483,102,377,189 422,550,744,230

223 Accumulated depreciation(*) (236,106,966,102) (187,638,627,163)

227 Intangible fixed assets V.12 11,834,680,340 10,663,042,062

228 Historical cost 12,635,194,097 11,407,411,315

229 Accumulated depreciation(*) (800,513,757) (744,369,253)

230 Investment properties V.13 121,102,139,909 123,991,256,565

231 Historical cost 144,455,832,878 144,455,832,878

232 Accumulated depreciation(*) (23,353,692,969) (20,464,576,313)

240 Long-term assets in progress 68,781,763,243 77,975,958,041

241 Long-term work in progress - -

242 Construction in progress V.14 68,781,763,243 77,975,958,041

250 Long-term financial investments V.2 894,838,088,598 1,065,569,311,406

251 Investments in subsidiaries - -

252 Investments in joint ventures and associates 751,039,867,909 809,073,011,517

253 Investments in equity of other entities 150,793,688,973 222,348,688,973

254 Provision for long-term financial investments(*) (6,995,468,284) (7,852,389,084)

255 Held to maturity investments - 42,000,000,000

260 Other long-term assets 51,921,641,163 47,039,760,454

261 Long-term prepaid expenses V.9 30,940,737,957 25,443,392,593

262 deferred income tax assets V.15 20,980,903,206 21,596,367,861

263 Long-term equipment and spare parts for replacement

- -

268 Other long-term assets - -

269 Goodwill - -

270 TOTAL ASSETS 5,875,805,695,072 5,089,309,884,686


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(Continued) Unit: VND

Code RESOURCES Note Ending balance Beginning balance

300 LIABILITIES 3,077,744,741,352 2,432,973,437,422

310 Short-term liabilities 1,298,517,198,101 995,785,492,325

311 Short-term trade payables V.16 160,109,952,362 113,968,068,632

312 Short-term prepayments from customers V.17 513,518,552,032 285,669,324,284

313 Taxes and other payables to government budget V.18 36,200,143,550 9,618,370,333

314 Payables to employees 21,169,457,524 18,950,688,860

315 Short-term accrued expenses V.19 95,733,841,989 78,137,169,251

316 Short-term internal payables - -

317 Payables under schedule of construction contract - -

318 Short-term unearned revenues V.20 5,457,677,373 3,487,872,356

319 Other short-term payables V.21 162,833,304,178 175,445,322,340

320 Short-term borrowings and finance lease liabilities V.22 306,516,839,111 310,301,414,311

321 Short-term provisions - 200,000,000

322 Bonus and welfare fund V.23 (3,022,570,018) 7,261,958

323 Price stabilization fund - -

324 Government bonds purchased for resale - -

330 Long-term liabilities 1,779,227,543,251 1,437,187,945,097

331 Long-term trade payables - -

332 Long-term repayments from customers - -

333 Long-term accrued expenses - -

334 Internal payables for operating capital received - -

335 Long-term internal payables - -

336 Long-term unearned revenues V.20 309,614,748,860 312,988,984,851

337 Other long-term payables V.21 1,411,929,462 2,157,848,801

338 Long-term borrowings and finance lease liabilities V.22 1,430,867,580,735 1,079,327,223,130

339 Convertible bonds - -

340 Preference shares - -

341 Deferred income tax payables V.24 36,688,060,483 42,147,301,339

342 Long-term provisions V.23 645,223,711 566,586,976

343 Science and technology development fund - -

400 OWNER’S EQUITY 2,798,060,953,720 2,656,336,447,264

410 Owner’s equity 2,798,060,953,720 2,656,336,447,264

411 Contributed capital V.25 2,381,948,190,000 2,145,337,930,000

411a Ordinary shares with voting rights 2,381,948,190,000 2,145,337,930,000

411b Preference shares - -

412 Capital surplus V.25 66,111,261,707 237,736,521,707

413 Conversion options on convertible bonds - -

414 Other capital - -


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(Continued)

Code RESOURCES Note Ending balance Beginning balance

415 Treasury shares (*) - -

417 Exchange rate differences - -

418 Development and investment funds V.25 163,672,057,495 161,961,502,413

419 Enterprise reorganization assistance fund - -

420 Other equity funds - -

421 Undistributed profit after tax V.25 119,541,816,792 66,073,619,772

421a Undistributed profit after tax brought forward 61,095,839,034 55,612,798,813

421b Undistributed profit after tax for the current year

58,445,977,758 10,460,820,959

422 Capital expenditure funds - -

429 Interest of uncontrolled shareholders V.25 66,787,627,727 45,226,873,372

430 Funding sources - -

431 Funding sources - -

432 Funds used for fixed asset acquisition - -

440 TOTAL RESOURCES 5,875,805,695,072 5,089,309,884,686

Prepared by Chief accountant General Director

Le Thanh Hung Nguyen Quang Tin Tran Minh Phu Prepared on 30th March 2017

Notes: The figures in the indicators with an asterisk (*) are recorded in negative numbers in the form written in brackets (…).


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CONSOLIDATED INCOME STATEMENT

For the fiscal year ended as on 31st December 2016 Unit: VND

Code ITEM Note This year Previous year

01 Revenue from sale of goods and rendering of services

VI.1 1,314,637,475,118 692,022,624,428

02 Deductible items VI.2 162,708,886,794 36,797,377,674

10 Net revenue from sale of goods and rendering of

services VI.3 1,151,928,588,324 655,225,246,754

11 Cost of goods sold VI.4 833,342,523,007 491,247,724,636

20 Goss profit from sale of goods and rendering of

services 318,586,065,317 163,977,522,118

21 Financial income VI.5 23,704,306,892 62,680,671,166

22 Financial expenses VI.6 51,666,905,016 6,154,448,991

23 In which: Interest expense 15,687,433,198 7,713,389,459

25 Profit or loss in joint ventures, associates (42,970,446,005) (6,793,849,528)

26 Selling expenses VI.7 74,474,032,977 82,556,639,604

27 General and administrative expenses VI.8 82,419,435,982 86,351,753,703

30 Net operating profit 90,759,552,229 44,801,501,458

31 Other income 6,777,334,933 12,111,842,205

32 Other expenses 5,719,875,281 24,779,753,174

40 Other profit VI.9 1,057,459,652 (12,667,910,969)

50 Total before-tax accounting profit 91,817,011,881 32,133,590,489

51 Current corporate income tax expens VI.10 31,547,425,874 10,323,807,260

52 Deferred corporate income tax expense VI.11 (5,367,588,987) 7,941,252,168

60 Profit after corporate income tax 65,637,174,994 13,868,531,061

61 Profit after tax for parent company 58,445,977,758 10,460,820,959

62 Profit after tax of uncontrolled shareholders 7,191,197,236 3,349,198,443

70 Earnings per share VI.12 236 44


Le Thanh Hung Nguyen Quang Tin Tran Minh Phu


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Prepared on 30th March 2017


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CONSOLIDATED CASH FLOW STATEMENT

For the fiscal year ended as on 31st December 2016

(By indirect method)

Unit: VND Code ITEM Code This year Previous year Cash flows from operating activities

01 Profit before tax 91,817,011,881 32,133,590,489

Adjusted for items

02 Depreciation of fixed assets and real estate investments 22,497,102,856 24,904,125,073

03 Provisions 1,212,705,174 10,229,797,187

04 Profit or loss of exchange rate difference due to revaluation of cash items

21,055,708,232 (2,221,477)

05 Profits and losses from investments (17,517,512,626) (31,911,006,788)

06 Interest expenses 15,687,433,198 7,713,389,459

08 Profit from operating activities before changing current capital

134,752,448,715 43,067,673,943

09 Increase or decrease of receivables (293,715,748,755) 16,152,663,052

10 Increase or decrease of inventories (421,839,126,054) (449,638,474,525)

11 Increase or decrease of payables 409,901,403,881 194,304,464,964

12 Increase or decrease of prepayments (39,174,568,393) (1,208,211,399)

13 Increase or decrease of trading securities - 30,757,601,827

14 Interest paid (146,577,042,819) (182,266,961,424)

15 Corporate income tax paid (6,728,991,201) (11,839,863,156)

16 Other revenues from operating activities - -

17 Other paymentsfor operating activities (1,825,886,876) (9,472,494,698)

20 Net cash flows from operating activities (365,207,511,502) (370,143,601,416)

Net cash flows from investing activities

21 Purchase and construction of assets and other long-term assets

(21,428,470,462) (18,747,911,356)

22 Liquidation proceeds, sale of fixed assets, other long-term assets

487,563,636 224,347,273

23 Loans, purchase of debt instruments from other entities (84,962,000,000) (360,602,095,890)

24 Collection of loans and repurchase of debt instruments of other entities

77,586,834,247 317,302,095,890

25 Equity investments in other entities (870,498,847) (20,682,026,915)

26 Proceeds from equity investment in other entities 82,639,524,860 11,832,840,840

27 Interest and dividend received 17,122,176,444 30,445,694,610

30 Net cash flows from investing activities 70,575,129,878 (40,227,055,548)

Cash flows from financing activities - -

31 Proceeds from issuance of shares and receipt of contributed capital

65,000,000,000 208,982,600,000

32 Repayments of contributed capital and repurchase of stock issued

- -

33 Proceeds from borrowings 1,128,130,922,854 278,444,071,971

34 Repayment of principal (783,584,877,177) (410,256,413,867)


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Code ITEM Code This year Previous year 35 Repayment of financial principal - -

36 Dividends or profits paid to owners - (75,345,242,360)

40 Net cash flows from financing activities 409,546,045,677 1,825,015,744

CONSOLIDATED CASH FLOW STATEMENT For the fiscal year ended as on 31st December 2016

(By indirect method)

(Continued)

Unit: VND

Code ITEM Code This year Previous year

50 Net cash flow within the period 114,913,664,053 (408,545,641,220)

60 Cash and cash equivalents at the beginning of the

period 64,549,207,165 473,092,626,908

61 Effects of fluctuations in foreign exchange rates (683,403) 2,221,477

70 Cash and cash equivalents at the end of the period V.1 179,462,187,815 64,549,207,165




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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

For the fiscal year ended as on 31st December 2016 (The notes are an integral part and should be read in conjunction with the Financial Statements)

I. OPERATION CHARCTERISTICS OF THE CORPORATION

1. Form of equity ownership

The Corporation was converted from a state-owned Company into a Joint Stock Corporation in accordance with Decision No. 1302/QD-BXD dated 15th October 2007 of the Ministry of Construction “on approving the equitization plan of the Development Investment Construction Corporation”. The Corporation was issued Business Registration Certificate for Joint Stock Corporation No. 3500101107 (formerly number: 4903000520) for the first registration on 13th March 2008, reissued Business Code dated 24th June 2009 and 11th registration change dated 22nd June 2016 by the Department of Planning and Investment of Ba Ria - Vung Tau province.

Charter capital : VND2,316,948,190,000 Number of shares : 231,694,819 shares Share value : VND10,000 Stock code : DIG

2. Structure of the Corporation

Subsidiaries, Associates

Name of Company Main business line %

Ownership Subsidiaries

Development Investment Construction Number 1 Joint Stock Company

Investment in trading and development of urban areas and industrial parks; Investment in trading and development of housing and technical infrastructure in urban areas, industrial parks, export processing zones, hi-tech parks and new economic zones; Repair of motorcycles, construction equipment and means of transport.

51.67

DIC Tourist and Trade Joint Stock Company

Trading in hotels and tourism; Road passenger transport; Trading indomestic and foreign travel services …

68.58

DIC Building Materials Joint Stock Company

Production and trading of building materials; Mining and processing minerals for building materials …

96.36

DIC Central Minerals Joint Stock Company

Surveying, mining and processing non-metallic minerals for building materials and mining minerals…

68.96

DIC Eastern Concrete Structure Joint-Stock Company

Manufacture of concrete structures … 91.05


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Name of Company Main business line %

Ownership

Hanam Development Investment Construction Joint Stock Company

Investment in trading and development of urban areas and industrial parks; Investment in trading and development of housing and technical infrastructure in urban areas, industrial parks, export processing zones, hi-tech parks and new economic zones …

98.00

Development Investment Construction Number 2 Joint Stock Company (DIC)

Investment in construction, production and trading of materials, real estates.

50.07

Associates

Development investment Construction Hoi An Joint Stock Company

Investment in construction, production and trading of building materials, mining and processing of minerals, tourism hotels.

29.97

DIC Real Estate Joint Stock Company

Housing trading, brokerage of real estate, real estate services, real estate management, consulting of investment, construction.

42.67

DaiPhuoc Vina Joint Stock Company

Housing trading, brokerage of real estate, real estate services, real estate management…

28.00

Development Investment Construction Concrete Joint Stock Company

Manufacturing and trading in commercial concrete, trading and repairing equipment, construction motorcycles, construction investment.

36.00

Phuong Nam Development And Investment Joint Stock Company

Trading in tourist accommodations, hotels, pubs, bars; trading in catering services; Buying and selling alcoholic beverages and non-alcoholic beverages.

43.00

Viet Thien Lam Investment Joint Stock Company

Consulting of investment, trading in real estate, construction of civil works.

22.00

Brothers DIC Ceramic

Manufacturing and trading in ceramic tiles, mining of minerals… 40.83

Development Investment Construction Vung Tau Sport Tourist Joint Stock Company

Organizing sports tournaments, trading in golf course, buying and selling sports equipment, port warehousing services, construction of civil works…

23.92

3. Business lines


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The Corporation’s business lines: Investmentand development of new urban areas and industrial parks; Investment and development of housing and technical infrastructure in urban areas; Trading of real estate, land use rights of owners, users or renters; Construction of civil engineering, traffic and irrigation works; Consultancy on construction investment and trading of tourism services.

4. Normal production and business cycle The production and business cycle of the real estate of the Corporation is from 02 to 04 years. The production and business cycle of the construction and installation and services of the Corporation shall not exceed 12 months.

II. FISCAL YEAR, CURRENCY UNIT USED IN ACCOUNTING

1. Fiscal year

The fiscal year of the Corporation starts from 1st January and ends on 31st December annually.

2. Current unit used in accounting The currency unit used in accounting is Vietnamese Dong and is presented in the Financial Statements in Vietnamese Dong.

III. APPLIED ACCOUNTING STANDARDS AND REGIME

1. Applied accounting regime The Corporation applies accounting standard,accounting regime of Vietnam issued under Circular No.200/2014/TT-BTC and Circular No. 202/2014/TT-BTC dated 22nd December 2014 and Cirulars on guiding the implementation of accounting standard of the Ministry of Finance in the preparation and presentation of Consolidated Financial Statements.

2. Announcement on compliance with the accounting standards and regime The Board of Directors ensures that the Corporation has fully complied with the requirements of the prevailing accounting standards and corperate accounting regime of Vietnam issued under Circular No.200/2014/TT-BTC and Circular No. 202/2014/TT-BTC dated 22nd December 2014 and Cirulars on guiding the implementation of accounting standard of the Ministry of Finance in the preparation and presentation of Consolidated Financial Statements.

3. Basic of preparing the Consolidated Financial Statements

The Consolidated Financial Statements are prepared and presented under the basic accounting principles and methods: accrual basis, continuous operation, historical cost, consistent, suitable, prudent, material, offset and comparable. The Corporation’s consolidated Financial Statements are not for presenting the financial statement, consolidated income statement and state of consolidated cash flow statement under the commonly accepted accounting standard, regime, principles and practices in other countries besides Vietnam.

IV. APPLIED ACCOUNTING POLICIES

1. Cash and cash equivalents Cash includes cash on hand, cash in transit and demand deposits. Short-term investments with the recovery or due period of not more than 03 (three) months, which are easily convertible into cash – they shall be considered as cash equivalents.


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Short-term investments of not more than 03 (three), which are easily convertible into cash without a lot of risks in the conversion into cash since the date of procurement of such investments at the time of report.

2. Financial investments 2.1. Recognition principle Investments in Subsidiaries Subsidiary is a company controlled by the Corporation until the date of preparing annual Financial Statements (usually expressed byholding more than 50% of voting rights). This control is achieved when the Corporation is able to control the financialpolicies and operation of the Companies receiving investments in order to obtain benefits from the operation of the Companies receiving investments. Investments in subsidiaries are accounted under the historical cost method. Net profits divided by subsidiaries arising after the date of investment are recognized in the Income Statement. Other dividends (other than net profits) are treated as recoveries of investments and are recognized as a deduction from the initial cost of the investment. Investments in Associates An Associate is a company in which the Corporation has significant influence but is not a Subsidiary or a Joint Venture of the Corporation (usually expressed by holding between 20% and 50% of voting rights). Significant influence is expressed in the right to participate in the decision making on the financial policies and operation of the Companies receiving investmentsbut has no control or co-control influence over the policy. Investments in Associates are accounted under the historical cost method. Net profits divided from the Associatesarising after the date of investment are recognized in the Income Statement. Other dividends (other than net profits) are treated as recoveries of investments and are recognized as a deduction from the initial cost of the investment. Provision for losses on investments in Subsidiaries and Associates Provision for losses on investments in the Subsidiaries and Associates is made when the Subsidiaries and Associates are losses with the provisions made by the difference between the actual capital contributions of the parties in the Subsidiaries and Associates andactual owner’s equity multiplying by the Corporation’s capital contribution to the actual total contributed capital of the parties in the Subsidiaries and Associates. If the Subsidiaries and Associates are the objects to prepare the Consolidated Financial Statements, the basis for determining the provision for losses is the Consolidated Financial Statements Increases and decreases to the provision for losseson investments inthe Subsidiaries and Associates are required to be made a provision at the accounting period and are included in financial expenses. Investments in equity instruments of other entities Investments in equity instruments of other entities comprise investments in equity instruments but the Corporation has no control, co-control right or significant influence over the entities receiving investment. Investments in equity instruments of other entities are initially recognized at historical cost, including cost of purchase or capital contribution plus costs directly related to the investments. Dividends and profits of the periods before investments purchased are recognized as deferred in value of such own investments. Dividends and profits of the periods after investments purchased are recognized as revenue.


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Dividends received by shares are only tracked for the number of shares added, and are not recognized value of the shares.

Provision for losses on investments in equity instruments of other entities is made as follows:

For investments in listed shares or fair value of reasonable investments determined, provision is made based on the market value of the shares. For investments without reasonable investments determined at the reporting date, provision is made on the basis of the loss of the party receiving investments with provision is made by the difference between the actual capital contribution of Parties at other units and actualowner’s equity multiplying the capital contribution of the Corporation to the actual total contributed capital of the parties at other units. Increases and decreases in the provision for losses on investments in equity instruments of other entities that are required to be made a provision at the accounting period and are included in financial expenses

2.2. Provision for financial investments Provision for long-term financial investments Provision for each financial investment is equal to the invested capital and calculated according to the following formula :

Provision for losses on financial investments

= Actual contributed capital of Parties in

the economic organizations

- Actual owner’s

entity

x Investments of the Corporation

Total actual contributed capital of Parties in the economic

organizations Provision for devaluation of securities investments Provision for devaluation of securities investments is calculated for each type of security and in accordance with the following formula:

Provision for devaluation of securities investments

= Number of securites

devaluated at the time of preparing separated Financial

Statements

x Price of securities

accounted in accounting books

- Actual price of securities on the

market

3. Receivables

3.1. Recognization principle Trading and other receivables are initially recognized at historical cost and are always presented at historical cost in the next time. Provision for doubtful receivables is presented on a separate account. The classification of receivables including receivables from customers, internal receivables and other receivables are made on the following principles:

Receivables from customers present trading receivables arising from a purchase and sale transaction between the Corporation and the buyer who is an independent unit of the Corporation. Internal receivables present receivables of dependent entities not having legal entity and are accounted dependently.


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. Other receivables present non-trading receivables that are not related to a purchase or sale transaction.

3.2. Provision for doubtful debts

The provision for doubtful debts represents the estimated loss from receivables that are unlikely to be paid by the customer for receivables at the time for preparing Consolidated Financial Statements. Provision for doubtful debts is made for each doubtful debt based on the age of the overdue debts or estimated losses that may occur, specifically: For overdue receivables: 30% of the value of the receivables overdue from more than 6 months to less than 1 year. 50% of the value of the receivables overdue from 1 year to less than 2 years. 70% of the value of the receivables overdue from 2 years to less than 3 years. 100% of the value of the receivables overdue for 3 years or more. For receivables that are not overdue but the debtor is unlikely to be able to repay due to liquidation, bankruptcy, dissolution or similar difficulties or receivables with evidence that is unlikely to be recovered: Based on estimated losses for making provision .

Increases or decreases in the provision for doubtful debts required to be made at date of ending the accounting period and are included in the cost of business management. The basis for making provision is Accounting Standard No. 02- “Inventories” and Circular No. 228/2009/TT-BTC dated 07th December 2009 of the Ministry of Finance “On guiding the regime of making provision for declining in value of inventories, losses of financial investments, doubtful debts and warranty for products, goods and construction works in the enterprises”and Circular No. 89/2013/TT-BTC dated 28th March 2013 of the Ministry of Finance “ On amending and supplementing Circular No. 228/2009/TT-BTC”.

4. Inventories 4.1. Principles for evaluating inventories Inventories are calculated at historical cost. In case where net realizable value is lower than historical cost, net realizable value shall be applied. Historical cost of inventories is determined as follows:

Materials and goods: costs of purchase and other directly related costs incurred in bringing the inventories to their present location and condition. Finished goods: costs of materials, direct labor costs and directly related general production costs are allocated based on the level of normal operation, the cost of land use rights, the direct costs and related costs incurred in the course of investment in construction of finished real estate. Work in process: includes only the cost of main materials (or other cost factors as appropriate)


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Net realizable value is the estimated selling price of inventories in the ordinary production and business period minus the estimated costs to complete and the estimated costs necessary for their consumption. 4.2. Method of determining the value of inventories Value of inventoriesat the end of the year is determined by the weighted average method. 4.3. Method of accounting inventories he Corporation applies the perpetual inventory method. 4.4. Provision for declining in value of inventories Provision for declining in value of inventories is made at the balance sheet date for obsolete, damaged or deteriorated products and, where the historical cost of inventories is higher than the net realizable value of them. Provision for declining in value of inventories is made for each item of inventories with the historical cost higher than the net realizable value. For services in the process, the provision for declining in value is calculated for each type of service with a separate price. Increases and decreases to the provision for declining in value of inventories are required to be made at the date of ending the accounting period and balance are included in cost of goods sold.

5. Prepaid expenses Prepaid expenses include actual costs incurred but related to the income statement of the various accounting periods. Prepaid expenses of the Corporation include the following expenses: 5.1.Instruments and tools Instruments and tools comprise the assets held by the Corporation for use in the normal course of its operation and business, with the historical cost of each item of assets isless VND30 million. Instruments and toolsput into use are allocated in the costby straight-line methodwith a period of allocation is not more than 03 years.

5.2. Repair costs of fixed assets The one-timerepair cost of fixed assets with high value is allocated in the costby a straight-line methodin 2 years.

6. Fixed assets and depreciation of fixed assets 6.1.Tangible fixed assets Tangible fixed assets are stated at the historical cost. In the course of use, tangible fixed assets are stated at the historical cost, accumulated amortization and residual value. Costs incurred after initial recognition of fixed assets are capitalized their increases if they increase the future economic benefits expected to arise from the use of the tangible fixed asset exceeding the standard operating level as originally assessed for the Corporation, and such cost is determined reliably. All other maintenance and repair costs are recognized in the Income Statement as incurred. Depreciation is made on a straight-line method. Time for depreciation is estimated as follows:


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- Building & architectonic model : 10 - 50 years - Equipment & machine : 04 - 08 years - Transportation instrument : 06 - 10 years - Equipment for office and management : 03 - 08 years - Other fixed assets : 03 - 05 years

Revenues from the liquidation and sale of tangible fixed assets are recognized as other income and the residual value of the liquidated or sold assets is accounted as other expenses in the Income Statement. 6.2. Intangible fixed assets Land use rights are all actual expenditures of the Corporation that are directly realated to land use, including expenditures for land use rights, compensation, site clearance,leveling, registration fees ... Land use rights with indefinite term are not depreciated. Prepaid land rents for land lease contracts that took effect prior to 2003 and were issued with a land use right certificate are depreciated for a period of 38 years.

7. Investment real estate 7.1. Recognition principle Investment real estate includes the using rights on land, housing or part of the house or both the house and land and the infrastructure held by the Corporation, not for use in the production and supply of goods, services or in management, or sale in ordinary business period. The historical cost of investment real esate comprises its purchase price, cost of land use rights and costs directly attributable to bringing the asset to the required condition so that it can operate as it has been expected by the board of management. Costs incurred after the investment real estate has been put into operation, such as repair and maintenance costs, are accounted in the separated IncomeStatement during the period in which they are incurred. In those cases it can be clearly demonstrated that these costs increase the expected future economic benefits from the use of investment real estate beyond the standard operating level as foreseen, these costs are capitalized as an additional historical cost of the investment real estate.

Costs related to investment real estate incurred after initial recognition are included in the expenses unless it is probable that the asset will give rise to the future economic benefits more than originally assessed, theyshallbe recognized as an increase ofthe historical cost. When the investment real estate is sold, its historical cost and accumulated depreciation are written off, and any its gain or loss resulting is accounted into income or expense in the period. The transfer from the owner’s real estate of use or inventory to the investment real estate only if the owner terminates the use of such asset and leases to the other party or at the end of the construction period . The transfer from investment real estate to the owner’s real estate of use or inventory only if the owner begins to use the asset or commences its intended use for sale. The transfer from investment real estae to the owner’s real estate of use or inventory does not change the historical cost or residual value of the real estate at the date of transfer. 7.2. Depreciation method Investment real estate for leaseis depreciated by straight-line methodbased on estimated useful time. The depreciation years applied to the investment real estate are as follows:

Long-term land use rights: Not included


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Land use rights: 50 years

8. Liabilities Payables to suppliers, loans and other payables are liabilities defined in value and time and are recognized according to actual liabilities arising in the future relating to the goods, services received by the Corporation. The classification of payables that are payablesto suppliers, internal payables and other payables is made on the following principles:

Payables to suppliers presentthe trade payables arising from purchases of goods, services, assets and the suppliers are independent units of the Corporation. Internal payables present the payables between subordinate upper units and subordinate lower units that do not have the legal entity, or are independently accounted. Other payables presentthe non-trade payables, not related to the purchases, sales or supplies of goods or services.

9. Loans

Loans that do not include loans in the form of issuing bonds or preference shares have terms that the issuer must repurchase at a certain point in the future. The Corporation keeps track of detailed loans according to each subject of borrower and short-term and long-term classification according to the repayment period. Costs directly attributable to the loans are accounted into the financialexpenses, other than those arising from separate loans for the purpose of investing, constructing or producing in process, which are capitalized.

10. Capitalization of borrowing costs Borrowing costs should be regconised as an expenses of production and business in the period in which they are inccured, except to borrowing costs directly related to construction investment or production of asset in process arerecoginzed in value of such assets (capitalized) upon meeting conditions spcified in the accounting standard of Vietnam no.16 “Borrowing costs”. Borrowing costs that are directly attributable to the construction or production of asset in processarerecoginzed in value of such assets (capitalized), including interest on loans, distribution of discounts or additional charges when issuing bonds, additional costs incurred in the process of loan procedures. Total borrowing costs incurred during the period : VND168,863,641,251 In which:

Borrowing costs are recognized in the IncomeStatement : VND15,687,433,198 Borrowing costs are capitalized : VND153,176,208,053

11. Accrued expenses

Actual expenses not yet incurred but accrued into production and business expenses in the period to ensure that actual expenses do not cause a surge in production and business expenses on the basis of ensuring the appropriate match between revenues and costs. When those expenses arise, if there is any difference with the deducted amount, the accountants shall account the addition or reduction of expenses corresponding to the difference.


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Payable expenses present payables for goods or services received from the suppliers or provided to the customers but not yet paid due to lack of invoices or incomplete accounting records and documents and other payables to employees on leave pay, production and business expenses must be made in advance.

12. Unearned revenue

Unearned revenue includes prepaid revenue such as: Amount of customers who have prepaid for one or more accounting periods for property leasing; Interest received before loan or purchase of debt instruments; Difference between the selling price of deferred payment and installment payment as committed with the selling price paid immediately; Revenue corresponding to the value of goods, services or discounts for customers in the traditional client program.

13. Ordinary bond Book value of the ordinary bond is presented on the net basis by value of the bond minus the discount of the bond plus the excess of the bond. The Corporation monitors the discount and excess for each type of ordimary bond issued and the allocation of each discount, excess when determining borrowing costs to be accounted in expenses or capitalized according to eachperiod, specifically:

Bond discount is gradually allocated to the borrowing costs of each period during the term of the bond. Excess of bond is allocated gradually to reduce borrowing costs of each period during the term of the bond.

The allocation of a discount or excess can be made using either the effective rate method or the straight-line method:

Under the effective rate method: The discount or excess allocated in each period is calculated by the difference between the interest payables for each interest payment period (calculated at the beginning value of the bond multiplying real interest rate in the market) with periodical payables.

Under straight-line method: The discount or excess is allocated evenly during the terms of the bond.

14. Recognization principle of owner’s equity 14.1. Owner’s equity Owner’s equity is recognized according to the actual capital contributed by the shareholders. 14.2. Capital surplus Capital surplus is recognized for the difference between the issue price and the face value of shares when they are issued for the first time, additional issuance, the difference between the reissue price and the book value of the treasury shares and equity of convertible bonds upon maturity. Direct costs associated with the issuance of additional shares and the reissue of treasury shares are recognized as a reduction in the capital surplus.


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14.3. Treasury shares When acquiring shares issued by the Corporation, the payablesinclude transaction-related expenses are recognized as treasury shares and are recognized as a deduction in owner’s equity. When reissuance, the difference between the reissue value and the book value of the treasury shares is accounted into“Capital surplus”. 14.4. Funds Profit after tax is approved by the General Meeting of Shareholders when appropriating funds under the resolution of the General Assembly of Shareholders of the Corporation. The use of funds must be subject to the approval of the General Assembly of Shareholders, the Board of Management or General Director, depending on the nature of the transactions set out in the Corporation’s Charter and financial management regulations.

15. Profit distribution Profit after corporate income tax is distributed to shareholders after appropriation of funds in accordance with the Corporation’s Charter as well as the provisions of the law and approved by the General Assembly of Shareholders. Unallocated after-tax profits reflect the business results (profit or loss) after corporate income tax and the profit sharing or loss handling of the Corporation. The distribution of profits is made when the Corporation haveunallocated after-tax profits not exceeded the undistributed after-tax profits on the Consolidated Financial Statements after deducting the effect of gains from cheap deals (commercial disadvantage or negative goodwill). In case of paying dividends and profits to owners in excess of the amount of unallocated after-tax profits, they shall be recognized as the case of reduction of contributed capital.

The distribution of profits to shareholders is considered to be non-monetary items included in the undistributed after-tax profits that may affect cash flows and the ability to pay dividends such as gains due to revaluation of assets to contribute capital, gains from revaluation of monetary items, financial instruments and other non-monetary items. Dividends payable to shareholders are recognized as payables in the Corporation’s Balance Sheet after dividends are declared by the Corporation’s Board of Management and announced on the date of closing the right to receive dividends of Vietnam Securities Depository. .

16. Principle and method of revenue recognization 16.1. Goods sale Goods saleis recognized when all the following conditions are met:

Most of the risks and benefits associated with ownership of the products or goods have been transferred to the buyer; The Corporation no longer holds control over the goods such as the owner of the goods or the control of the goods; Goods sale can be measured reliably. When the contract stipulates that the buyer is entitled to return the product or goods purchased under the specified conditions, the goods sales shall be recognized only when such conditions no longer exist and the buyer is not entitled return such products and


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goods (unless the buyer has the right to return the goods in the form of a return in exchange for other goods or services) The Corporation has either acquired or will receive economic benefits from the goods sale; Determining the costs associated with the goods sale.

16.2. Services sale

Services sale is recognized when the outcome of such transactions can be measured reliably. Where the services sale involves several periods, it is recognized in the period in accordance with the result of the work completed on the date of preparing the Balance Sheet of such period. The result of a service transaction is determined when the following conditions are satisfied:

The revenue can be measured reliably; It is probable that the economic benefits associated with the transaction will gain; Identification of the part of work completed on the date of preparing the Balance Sheet; Determine the costs incurred for the transaction and the costs for completing the service transaction.

The completed supply of services is determined by the completed job assessment method.


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16.3. Real estate sale Real estate sale in which the Corporation is an investor is recognized when all the following conditions are met:

The real estate has been completely completed and handed over to the buyer and the business has transferred the risks and benefits associated with the ownership of the real estate to the buyer. The Corporation no longer holds management rights of real estate such as real estate owner or real estate control. The revenue can be measured reliably. The Corporation has either acquired or will receive economic benefits from the sale of real estate. Determining the costs associated with the sale of real estate.

16.4. Real estate sale from subdivision for selling the ground Real estate sale from subdivision for selling the ground, if the ground has been transferred to the customer (whether legal proceduresonthe Certificate of land use righthas completed or not) and irrevocable contract, the Corporation recognizes revenue for the land sold when the following conditions are met:

The risks and benefits associated with the land use rights have been transferred to the buyer; The revenue can be measured reliably; Determining the costs associated with the sale of ground; The Corporation has either acquired or will receive economic benefits from the sale of land;

16.5. Revenue from construction Construction contracts stipulate that the Contractor is paid according to the value of the performed volume, the revenue and expenses relating to the contracts are recognized corresponding to the part of the work completed and confirmed by the client and presentedin the invoices prepared. Increases, decreases in construction volume, revenues from compensation and other revenues are recognized only when agreed with the client. 16.6. Revenue from operating asset leases Revenue from operating asset leases is recognized by the straight-line methodduring the lease term. Prepaid rentals of multiple periods are allocated into revenue in accordance with the lease period. 16.7. Revenue from financial activities Revenue arising from interests, royalties, dividends, profits and other financial income is recognized when two (2) following conditions are satisfied:

It is probable that the economic benefits associated with the transaction will gain; The revenue can be measured reliably.

Interest is recognized on an accrual basis, based on the outstanding balance of deposits and actual interest rates.


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Dividends and profits are recognized when the Corporation is entitled to receive dividends or profits from the capital contribution. Dividends received by shares are only tracked for the number of additonal shares, value of the shares are not recognized.

17. Revenue deductions

Revenue deductions on sale of goods and services during the period include: trade discounts, declining in value of goods sold and goods returned. Commercial discounts, declining in value of goods sold and goods returned arising during the same period of consumption of products and goods and services shall be adjusted to reduce revenue of the arising period. Where the products, goods and services already consumed from the previous periods, but revenue deductions arise in the next period, revenue deductions shall be recognized according to the following principle: If arising before the issuance of the Financial Statements, revenue deductions are recognized on the Financial Statements of the reporting period (the previous period), and if arising after the issuance of the Financial Statements, revenue deductions of the arising period (the next period) are accounted.

18. Cost of goods sold The costs of goods, services and investment real estate sold in the period (including depreciation costs, repair costs, costs for rentinginvestment real estate by way of operating lease, sale, liquidation of investment real estate, ...) are recognized in accordance with the revenue sold in the period. Cost of goods sold in the case where the Corporation is an investor of real estate business. The deduction of expenses for temporarily calculating the cost of real estate (if any) shall ensure the following principles:

Accrual expenses are only made for expenses included in investment and construction estimates but have not enough dossiers and documents for accepting volumes; Accrual expenses are only made for temporarily calculating the histrocial cost of goods sold for the portion of real estate completed which is soldin the period and has enough conditions for revenue recognition; Accrual expenses and actual expenses are recognized as the historical cost of goods sold must be equal to the historical cost calculated according to the total estimated cost of the real estate items sold (determined by area).

For directly material costs consumed in excess of the normal level, fixed labor costs and fixed production costs are not allocated to the value of products stored in the warehouse and are immediately recognized in historical cost of goods sold (after minus any compensation, if any) even if the products or goodshave not been determined as consumption.

19. Financial expenses, selling expenses and management expenses 19.1. Financial expenses Expenses accounted in financial expenses include:

Costs or losses related to financial investment activities ; Lending and borrowing costs; Provision for devaluation of securities investment.


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The above amounts are recognized according to the total amount arising in the period, not offset with the revenue from financial activities. Borrowing costs Borrowing costs consist of interests and other costs incurs in connection with loans. Borrowing costs are recognized as an expense when incurred. Where the borrowing costs are directly attributable to the construction or production of qualifying asset, there should be a period of time that is sufficiently long (over 12 months) to get ready for its intended use or sale,this borrowing costsare capitalized. For separate loans for the construction of fixed assets and investment real estate, interestsare capitalized even if the construction period is less than 12 months. Incomes from temporary investments in loans are recognized deduction in the historical cost of such asset. For general loans, which are used for the purpose of construction investment or production of qualifying assets, the borrowing costs capitalized shall be determined according to the capitalization rate for the weighted cumulative cost arises for investment in capital construction or production of such asset. Capitalization rates are the weighted average interest rates of loans not yet paid during the year, except for separate loans for the purpose of the formation of a particular asset. 19.2. Selling expenses and general and administration expenses Are indirect costs for distribution of products and goods, provision of services to the market and administration of production and business of the Corporation. All selling expenses and general and administration expenses of arising in the period are recognized immediately in the Income Statement of the period when such expenses do not bring economic benefits in the following periods.

20. Other profits 20.1. Other incomes Include incomes other than main production and business activities of the Corporation. 20.2. Other expenses Includes expenses arising from events or operations separate from the normal operations of the Corporation.

21. Current corporateincome tax expenses Current corporate income tax expensesare the expected tax payable on the taxable income for the year using the tax rates enacted at the Balance Sheet date and any adjustments thereto are applicable relating to the previous years. Corporate income tax expensesare recognized in the Income Statement, except when it relates to items of income that are recognized directly in owner’s equity, these income taxes are also accounted directly in owner’s equity.

Current corporate income tax expenses are determined on the basis of the taxable income and the CIT rate in the current year. According to Law No. 32/2013/QH13 on amending and supplementing some articles of the Law on Corporate Income Tax passed by the 13th National Assembly of the Socialist Republic of Vietnam at its 5th Session on 19th June 2013, Corporate income tax rates fell from 22% to 20% from 01st January 2016.


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Segment report Segment report consists of segments by business sectors or a segment of geographical area. Segment by business sector: A distinguishable segment of an enterprise engaged in the production or supply of a single product or service, a group of products or services related that this segment faces risks and other economic benefits different from those of other business segments. Segment by geographical area: A distinguishable segment of an enterprise engaged in the production or supply of products or services in an certain economic environment that this segment faces risks and other economic benefits different from those of other business segments in other economic environment.

22. Accounting Estimate

The preparation of Financial Statements complies with accounting standards, corporate accounting regimeof Vietnam and other legal regulations related to the preparation and presentation of Financial Statements. The Board of General Directors is required to prepare estimates and assumptions affect the reported figures of assets, liabilities and presentation of contingent assets and liabilities at the date of preparing Financial Statementsas well as figures reportingrevenues and expenses in the accounting period. Although accounting estimates are made in all prudence and knowledge of the Board of General Directors, the actual amounts reported may differ from the estimates and assumptions made.

23. Related Parties Parties are considered to be related if one Party has the ability to control or have significant influence over the other Party in the decision making of financial and operating policies. Parties are also considered to be related if they are jointly controlled or have significant overall influence. In considering the relationship of the related Parties, the nature of the relationship is more focused than on the legal form.

24. Basis of preparation of the Consolidated Financial Statements

The Consolidated Financial Statements are prepared and presented under the basic accounting principles and methods: accrual basis, continuous operation, historical cost, consistent, suitable, prudent, material, offset and comparable. The Corporation’s consolidated Financial Statements are not for presenting the financial statement, income statement and state of cash flow statement under the commonly accepted accounting standard, regime, principles and practices in other countries besides Vietnam. The Corporation’s Consolidated Financial Statements are prepared on the basis of merging the Consolidated Financial Statements of the parent company and its subsidiaries. The Companies is identified as a subsidiary of the Corporation when it is able to control the financial and operating policies of the Company receiving investments to obtain benefits from the activities of the companies. The accounting policies of subsidiaries can be adjusted to ensure that accounting policies applied in the parent Company and subsidiaries are not significantly different. All transactions and balances between the Corporation’s subsidiaries are eliminated in preparing the Consolidated Financial Statements. The value of investments of the Corporation’s in Associates is presented in the Consolidated Financial Statements in accordance with the owner’s equity method. As a result, investments in Associates are presented in the Consolidated Balance Sheet at historical cost adjusted according to changes in capital contributions of the Corporationto net assets of Associates after the date of acquisition of investments.


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Losses of the corresponding Associates in excess of the Corporation’s capital contributions in these Associates are not recognized.

V. ADDITIONAL INFORMATION ON ITEMS PRESENTED IN BALANCE SHEET

1. Cash and cash equivalents Engding of year

VND Beginning of year

VND

Cash on hand 16,376,157,225 10,569,820,385

Demand deposit 163,003,945,838 32,952,296,382

Cash in transit 32,084,752 36,049,000

Cash equivalents 50,000,000 20,991,041,398

Total 179,462,187,815 64,549,207,165


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2. Financial investments

a) Long-term investments holding to maturity date

Ending of year VND

Beginning of year

VND

Historical cost Provision Fair value Historical cost (iv)Provision Fair value

Term deposit 40,000,000,000 - 40,000,000,000 - - -

Vietnam Maritime Commercial Joint Stock Bank (i)

40,000,000,000 40,000,000,000 - - -

Bond - - - - - -

Total 40,000,000,000 - 40,000,000,000 - - -

(i) Term Deposit Agreement No. 02/2015/MSB-DIC dated 25/12/2015 of Vietnam Maritime Commercial Joint Stock Bank for 18 months from 25/12/2015 to

26/06/2017, enjoying interest rate is 7.2% per year.

b) Investments in other entities

Ending of year


VND

Quantity % Historical cost Provision Fair value Quantity % Historical cost Provision Fair value

Investments in Joint Ventures and Associates

751,039,867,909 - 751,039,867,909 809,073,011,517 - 809,073,011,517

Vina Dai Phuoc Corp 45,080,000 28.00 440,097,428,136 - 440,097,428,136 45,080,000 28.00 444,426,358,257 - 444,426,358,257

Southern Development And Investment Joint Stock Company

18,920,000 43.00 152,039,450,663 - 152,039,450,663 18,920,000 43.00 189,750,537,261 - 189,750,537,261


8,622,034 22.00 83,465,845,094 - 83,465,845,094 8,622,034 22.00 83,647,541,017 - 83,647,541,017

Brothers DIC Ceramic 7,350,000 40.83 7,848,245,739 - 7,848,245,739 7,350,000 40.83 14,951,982,461 - 14,951,982,461

Concrete Joint Stock Company 1,259,994 36.00 28,288,816,911 - 28,288,816,911 1,259,994 36.00 26,623,959,163 - 26,623,959,163

Development Investment Construction Sport Tourist Joint Stock Company

1,793,856 24.86 17,292,430,335 - 17,292,430,335 1,793,856 23.92 16,187,356,846 - 16,187,356,846


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b) Investments in other entities Ending of year


VND

Quantity % Historical cost Provision Fair value Quantity % Historical cost Provision Fair value


1,050,000 41.67 - - - 1,050,000 41.67 11,527,263,446 - 11,527,263,446

Development investment Construction Hoi An Joint Stock Company

899,100 29.97 15,935,135,961 - 15,935,135,961 899,100 29.97 15,900,988,370 - 15,900,988,370

DIC Real Estate Joint Stock Company 481,500 42.67 6,072,515,070 - 6,072,515,070 481,500 42.67 6,057,024,696 - 6,057,024,696

Investments in other entities 150,793,688,973 (6,995,468,284) 143,798,220,689 222,348,688,973 (7,852,389,084) 214,496,299,889

DIC No.4 Joint Stock Company 802,179 14.55 7,369,504,500 - 7,369,504,500 727,600 14.55 7,369,504,500 - 7,369,504,500

DIC Investment and Trading JSC 2,683,259 10.09 33,062,084,473 (899,960,377) 32,162,124,096 1,452,548 10.09 33,062,084,473 (899,960,377) 32,162,124,096

FICO Tay Ninh Cement JSC - - - - - 6,800,000 10.00 68,000,000,000 - 68,000,000,000

Song Da Financial JSC (i) - - - - - 2,400,000 4.80 24,000,000,000 - 24,000,000,000

Military Bank (i) 1,090,909 - 24,000,000,000 - 24,000,000,000 - - - - -

Thanh Binh Development Investment Construction JSC

143,000 9.02 1,240,000,000 (783,914,553) 456,085,447 130,000 9.02 1,240,000,000 (783,914,553) 456,085,447

Song Da Joint Stock Company - Hanoi 600,000 15.00 6,000,000,000 - 6,000,000,000 600,000 15.00 6,000,000,000 - 6,000,000,000

Phu Rieng Kratie Rubber JSC 2,000,000 5.00 20,000,000,000 - 20,000,000,000 2,000,000 5.00 20,000,000,000 - 20,000,000,000

J & D Dai An Co., Ltd - 5.00 8,469,000,000 (6,124,754) 8,462,875,246 - 5.00 8,469,000,000 (6,124,754) 8,462,875,246

Taekwang DIC Co., Ltd - 10.00 38,025,000,000 - 38,025,000,000 - 10.00 38,025,000,000 - 38,025,000,000

DC2Capital Trust - - - - - 211,800 8.40 3,706,500,000 (2,732,220,000) 974,280,000

DICCapital Trust 1,239,318 6.44 11,733,600,000 (5,239,573,680) 6,494,026,320 1,169,160 6.44 11,733,600,000 (3,430,169,400) 8,303,430,600

Saigon Beer - Alcohol - Beverage Corporation

- 0.01 700,000,000 - 700,000,000 - 0.01 700,000,000 - 700,000,000

Sabeco Center Trading JSC - 0.01 43,000,000 - 43,000,000 - 0.01 43,000,000 - 43,000,000

Other long-term investments - - 151,500,000 (65,894,920) 85,605,080 - - - - -

Total 901,833,556,882 (6,995,468,284) 894,838,088,598 1,031,421,700,490 (7,852,389,084) 1,023,569,311,406


34

(i) According to Official Letter No. 696/NHNN-TTGSNH dated 04/02/2016 of the State Bank on the swap of shares of SDFC: Governor of the State Bank has allowed the Military Commercial Joint Stock Bank to issue 31,181,818 MBB shares to swap 68,600,000 shares of SDFC and have been approved by the State Securities Commission.


35

3. Receivables from customers

a) Short-term receivables from customers

Ending of year


VND

Historical value Provision Historical value Provision

Receivables form related Parties 347,615,946,067 - 334,850,089,694 -

Concrete Joint Stock Company 548,804,532 - 15,000,480 -


- - 181,352,524 -


5,005,192,643 - 11,326,239,988 -

DICReal Estate Joint Stock Company

343,625,021 - 14,025,000 -

Vina Dai Phuoc Corp 193,780,686,855 - 239,756,372,673 -


79,745,598,078 - 78,799,961,130 -

Brothers DIC Ceramic 3,807,100 - 2,675,640 -

Thanh Binh Development Investment Construction JSC

88,758,302 - 6,125,160 -

DIC No.4 Joint Stock Company 64,269,286,888 - 2,044,695,188 -

J& D Dai An Limited Company 93,082,175 - 93,082,175 -

A.T.A Construction Investment JSC

3,732,653,048 - 2,607,565,448 -


4,451,425 - 2,994,288 -

Other receivables from customers 366,338,777,482 (21,341,602,305) 161,570,583,255 (18,399,302,690)

BR-VT Construction PMU 26,333,844,214 - 20,557,404,736 -

Phuoc Anh Limited Company 60,463,000,000

Phuoc Thanh Construction JSC 3,305,000,000

UNA Joint Stock Company 1,586,514,113 1,636,514,113

Chan Long Limited Company 1,563,862,533 399,163,411

Other customers 273,086,556,622 (21,341,602,305) 138,977,500,995 (18,399,302,690)

Total 713,954,723,549 (21,341,602,305) 496,420,672,949 (18,399,302,690)

b) Long-term receivables from customers

Ending of year


VND


Receivables form related Parties


119,618,397,118 - 118,199,941,694 -

Phan Van Binh 20,369,021,195 - 20,369,021,195 -

Nguyen Vu Tuan 20,369,016,499 - 20,369,016,499 -

Le Van Huong 8,318,000,000 - 8,318,000,000 -

Total 168,674,434,812 - 167,255,979,388 -


36

4. Short-term advanced payment to suppliers

Ending of year


VND


Advanced payment to suppliers

DICReal Estate Joint Stock Company

3,470,381,534 - 1,280,121,672 -


143,249,987,066 - -


- - 162,959,415 -

Other suppliers

Phuoc An Development And Investment Joint Stock Company

12,586,641,114 - 16,376,480,114 -

Phuoc An Limited Company 3,382,964,777 - 19,725,294,000 -

Civil Engineering Joint Stock Company 68

10,312,541,774 - 10,312,541,774 -

Viet Technology Co., Ltd 6,374,848,000 - - -

Other suppliers 24,123,636,220 (1,127,106,180) 23,527,334,667 (1,127,106,180)

Total 203,501,000,485 (1,127,106,180) 71,384,731,642 (1,127,106,180)

5. Receivables from loans

a) Receivables from short-term loans Ending of year


VND

Southern Development And Investment Joint Stock Company 12,700,000,000 4,000,000,000


18,000,000,000 -

Total 30,700,000,000 4,000,000,000

b) Receivables from long-term loans Ending of year


VND


- 3,042,447,000

Brothers DIC Ceramic 10,000,000,000 10,000,000,000

DIC Eastern Concrete Structure Joint-Stock Company - 399,494,988

A.T.A Construction Investment JSC(A.T.A PMU) 26,242,803,794 48,698,803,794

A.T.A Construction Investment JSC 4,456,000,000 -

Total 40,698,803,794 62,140,745,782


37

6. Other receivables

a) Other short-term receivables Ending of year


VND


Receivables from employees - 78,229,147 -

Advances 32,537,288,221 (6,717,607,815) 71,816,654,886 (6,717,607,815)

Collateral & short term deposits 379,510,000 - 371,110,000 -

Other receivables 94,858,628,402 (31,996,190) 58,400,406,142 (31,996,190)

Receivables from related parties 34,549,629,936 35,875,498,262

Receivables from interests of deposits

- - 58,774,289 -

Advances for compensation of Long Tan project

28,217,555,600 -

Advances for compensation of Northern Vung Tau project

10,075,000,000 -

Other receivables 22,016,442,866 (31,996,190) 22,466,133,591 (31,996,190)

Total 127,775,426,623 (6,749,604,005) 130,666,400,175 (6,749,604,005)

b) Other long-term receivables Ending of year


VND Historical value Provision Historical value Provision

Collateral & short term deposits 1,470,072,834 - 1,424,622,233 -

Other receivables 87,318,359,768 - 87,318,359,768 -

DIC Investment and Trade JSC 3,000,000,000 - 3,000,000,000 -

A.T.A Coonstruction Investment JSC

84,318,359,768 - 84,318,359,768 -

Total 88,788,432,602 - 88,742,982,001 -

7. Shortage of assets waiting resolution Ending of year


VND

Inventories (DIC Tourist and Trade Joint Stock Company) 34,403,830 19,650,717

DIC Central Minerals Joint Stock Company - 3,013,888


- 8,181,842

Total 34,403,830 30,846,447

8. Inventories Ending of year


VND


Purchased goods in transit - - 676,283,520 -

Materials 16,810,381,977 - 12,174,349,505 -


38

8. Inventories Ending of year


VND


Instruments and tools 932,126,041 - 1,578,011,587 -

Work in progress (*) 2,797,138,619,849 - 2,366,433,402,748 -

Finished products 19,566,318,090 (598,896,130) 18,628,102,240 (450,246,130)

Finished real estate 16,177,240,961 - 11,611,691,272 -

Goods 8,044,239,389 - 308,044,905 -

Real estate goods - - 25,733,936,735 -

Goods in transit for sale 314,022,259 - - -

Total 2,858,982,948,566 (598,896,130) 2,437,143,822,512 (450,246,130)

(*) Work in process, including: Ending of year


VND

Infrastructure project in Chi Linh Center, Vung Tau 107,999,630,844 98,157,540,046

Dai Phuoc eco-tourism urban area project (i) 805,899,965,460 756,436,440,270

51B road project, Vũng Tàu 1,774,950,578 1,764,791,930

Apartment B13 project - Vung Tau Gateway 72,517,344,131 11,486,082,313

Phoenix Hotel & Office Complex (Phase 1) 239,326,839,978 158,820,590,358

DIC - Phoenix Apartment Project (Phase 2) 458,370,401,190 247,515,359,949

Nam Vinh Yen new urban area project 719,129,651,261 669,240,593,955

P4 residential areaproject in Hau Giang 104,559,675,956 103,471,929,737

An Son Villa project, Da Lat City 79,139,375,808 112,148,473,799

Long Tan tourist area project, Nhon Trach 7,170,536,412 5,417,610,738

Hiep Phuoc, Nhon Trach residential area project(i) 73,972,489,101 62,474,437,985

Thuy Tien resort project, Vung Tau City - 59,969,039,164

General contractor of construction of Ba Ria hospital 3,279,349,747 8,705,807,921

An Thoi, Phu Quoc, Kien Giang urban project 20,368,115,022 18,893,719,567

DIC Star Hotel Vinh Yen 2,426,475,305 1,092,869,873

Block B Pullman project 14,424,115,029 1,451,669,099

Work in process 86,779,704,027 49,386,446,044

Total 2,797,138,619,849 2,366,433,402,748

(i) The Corporation has used land use rights of some projects as collateral for long-term loans from banks

and corporate bonds.

9. Prepaid expenses

a) Short-term prepaid expenses Ending of year


VND

Instruments and tools 861,177,882 1,935,456,508

Sale expenses waiting allocation 40,598,993,463 5,705,903,266

Short-term office rentals 204,587,628 -

Expenses for office completion 26,234,452 204,587,628


39

a) Short-term prepaid expenses Ending of year


VND

Other long-term expenses waiting allocation 732,554,738 900,377,732

Total 42,423,548,163 8,746,325,134

b) Long-term prepaid expenses Ending of year


Instruments and tools 11,459,178,013 6,523,516,072

Long-term office rentals 4,916,302,723 5,120,890,351

Expenses for office completion 1,093,102,184 1,145,571,088

Regular repair expenses 6,503,638,119 2,097,277,231

Goodwill 890,317,565 2,400,925,515

Other long-term expenses waiting allocation 6,078,199,353 8,155,212,336

Total 30,940,737,957 25,443,392,593

10. Taxes and other receivables from government budget Ending of year


VND

Deductible VAT 5,235,625,903 18,191,539,139

Taxes and other receivables from government budget 9,917,643,210 6,611,445,762

Corporate income tax paid in excess - -

Taxes paid in excess to government budget 9,917,643,210 6,611,445,762

Total 15,153,269,113 24,802,984,901


40

11. Tangible fixed assets Housing Equipment & machine

Transportation instrument

Equipment for office and

management

Other fixed assets Total VND

Historical cost

Beginning balance 231,994,233,588 129,448,065,521 39,741,056,977 9,174,659,835 12,192,728,309 422,550,744,230

Purchase in the year 382,423,787 10,268,937,215 2,187,259,999 275,389,825 1,132,626,258 14,246,637,084

Complete construction investment

15,023,734,827 520,851,030 - 286,831,000 - 15,831,416,857

Liquidation, sale - (1,264,052,320) (1,482,791,711) (777,311,873) (831,172,260) (4,355,328,164)

Other fluctuations 1,176,960,279 32,349,086,757 1,070,847,712 - 232,012,434 34,828,907,182

Balance at the end of the year

248,577,352,481 171,322,888,203 41,516,372,977 8,959,568,787 12,726,194,741 483,102,377,189

Accumulated depreciation

Beginning balance 67,489,117,375 84,468,792,859 23,094,168,652 7,975,099,735 4,611,448,542 187,638,627,163

Depreciation of the year 7,555,259,341 7,756,558,394 3,286,495,886 343,270,932 610,257,143 19,551,841,696

Liquidation, sale - (1,051,411,656) (1,428,960,301) (757,412,451) (831,172,260) (4,068,956,668)

Other fluctuations 569,665,232 31,112,928,533 1,070,847,712 - 232,012,434 32,985,453,911


75,614,041,948 122,286,868,130 26,022,551,949 7,560,958,216 4,622,545,859 236,106,966,102

Residual value

At the beginning of the year 164,505,116,213 44,979,272,662 16,646,888,325 1,199,560,100 7,581,279,767 234,912,117,067

At the end of the year 172,963,310,533 49,036,020,073 15,493,821,028 1,398,610,571 8,103,648,882 246,995,411,087


41

Residual value at the end of year of tangible fixed assets mortgaged, pledged loans: VND148,682,994,254. The historical cost of fixed assets at the end of year has been fully depreciated but still in use: VND80,293,526,734.


42

12. Intangible fixed assets Land use rights Computer software

Other fixed assets Total VND

Historical cost

Beginning balance 11,034,359,499 141,321,000 231,730,816 11,407,411,315

Increase of the year (DIC 2) 1,227,782,782 - - 1,227,782,782


12,262,142,281 141,321,000 231,730,816 12,635,194,097


Beginning balance 523,873,558 141,321,000 79,174,695 744,369,253

Depreciation of the year 44,557,964 - 11,586,540 56,144,504


568,431,522 141,321,000 90,761,235 800,513,757

Residual value

At the beginning of the year 10,510,485,941 - 152,556,121 10,663,042,062

At the end of the year 11,693,710,759 - 140,969,581 11,834,680,340

Residual value at the end of year of intangible fixed assets mortgaged, pledged loans: VND11,007,812,781. The historical cost of fixed assets at the end of year has been fully depreciated but still in use: VND141,321,000.

13. Investment real estate Land use rights VND

Historical cost

Beginning balance 144,455,832,878

Purchase in year -

Balance at the end of the year 144,455,832,878


Beginning balance 20,464,576,313

Depreciation of the year 2,889,116,656

Balance at the end of the year 23,353,692,969

Residual value


43

13. Investment real estate Land use rights VND

At the beginning of the year 123,991,256,565

At the end of the year 121,102,139,909

Residual value at the end of year of real estate mortgaged, pledged loans: VND121,102,139,909.

14. Construction in progress Ending of year


VND Repair CapsaintJacques Hotel 1,193,299,736 9,337,844,407

Quarry in Gia Kiem, Dong Nai 1,023,048,503 222,062,503

Cost of repairing GDT office 45,220,909 -

Inland Clearance Port 29,404,936,995 29,404,936,995

Ba Sao ecotourism, entertainment project 21,503,954,387 21,503,954,387

Other construction in progress 15,611,302,713 17,507,159,749

Total 68,781,763,243 77,975,958,041

15. Deferred income tax assets Ending of year


VND Unrealized profits from internal trades 733,214,947 733,214,947

Unrealized profits from contributing capital to Associates 20,247,688,259 20,863,152,914

Total 20,980,903,206 21,596,367,861

16. Short-term payables to suppliers Ending of year


VND Xuan Vy Limited Company 2,025,885,297 7,389,116,128

Toan Tam Engineering Limited Company 6,814,375,000 8,814,375,000

B and H Limited Company 3,716,611,349 1,573,723,459

Thang Long Elevator and Equipment Co., Ltd 19,371,000,000 -

Phuong Linh Construction Co., Ltd 7,543,765,000 -

Moc Dai Interior Decoration JSC 2,076,473,392 -

Song Da DIC Joint Stock Company - 772,311,998

Ngoc Ha Private Company 2,181,932,770 -

Dat Loi Construction Limited Company 1,990,186,650 -

Kim Hung Phat Limited Company 6,847,981,626 -

An Dai Phat Trading & Services Co., Ltd 2,889,056,571 -

NT3 (Tin Nghia) One Member Limited Company 4,855,914,051 4,855,914,051

Le Nguyen Trading Joint Stock Company 2,170,570,000 2,170,570,000

Nam Thanh Transportation Service Co., Ltd 2,075,452,461 2,075,452,461

Building Materials Trading Joint Stock Company No. 15 3,112,651,476 2,213,667,998

PJ Vina Company Limited 3,961,266,919

Other payables to suppliers 67,310,086,353 71,570,668,338


44

16. Short-term payables to suppliers Ending of year


VND

Short-term payables to suppliers who are related parties

Concrete Construction Joint Stock Company 324,626,850 6,826,623,000


- 2,942,446,161

DICReal Estate Joint Stock Company 2,313,913,226 2,291,527,425


- -

Thanh Binh Development Investment Construction Joint Stock Company

8,821,471,067 471,672,613

DIC No. 4 Joint Stock Company 9,706,732,304 -

Total 160,109,952,362 113,968,068,632

17. Deferred revenue Ending of year


VND Taekwang Vina Industrial JSC 11,331,120,000 -

Group of customers buying real estate of the Corporation 496,366,373,973 271,102,830,373

Other customers 5,821,058,059 14,566,493,911

Total 513,518,552,032 285,669,324,284

18. Taxes

a) Taxes and other receivables from government budget

Beginning of year

VND Receivables

VND

Payables paid VND

Beginning of year

VND

Overpaid taxes to government budget

6,611,445,762 300,519,878 3,606,717,326 9,917,643,210

Total 6,611,445,762 300,519,878 3,606,717,326 9,917,643,210

b) Taxes and other payables from government budget

Beginning of year

VND Payables

VND

Payables paid VND

Beginning of year

VND

Value added tax 2,306,955,818 24,917,784,847 21,029,769,475 6,194,971,190

Excise tax 25,508,414 119,450,091 141,601,862 3,356,643

Corporate income tax 3,122,239,274 31,559,841,018 6,728,991,201 27,953,089,091

Personal income tax 270,980,804 2,067,577,294 2,150,145,308 188,412,790

Resource tax 1,411,160,042 3,197,931,085 3,882,473,448 726,617,679

Housing and land tax 819,800,500 2,771,058,988 3,059,905,988 530,953,500

License tax - 20,000,000 20,000,000 -

Other taxes 1,661,725,481 10,593,848,178 11,652,831,002 602,742,657

Total 9,618,370,333 75,247,491,501 48,665,718,284 36,200,143,550


45

Tax finalization of the Corporation will be subject to inspection by the taxationagencies. Since the application of the Law and the taxation provisions for a variety of transactions can be explained in a number of different ways, the taxes reported in the Financial Statements are subject to change according to the decision of taxationagencies.


46

19. Short-term payables Ending of year


VND

Bond interest payable 66,718,750,000 53,294,520,548

Loan interest payable 17,450,750,333 10,649,493,831

Investment cost of 34ha complex - Taekwang 1,052,245,085 14,193,154,872

Phu Quoc Vocational Training School, Kien giang province 6,407,155,605 -

Phoenixprestressed steel cables 326,357,714 -

Construction of electricity of international conference center 181,550,488 -

Technical infrastructure system of A.T.A Company 1,680,763,636 -

Other advances 1,916,269,128 -

Total 95,733,841,989 78,137,169,251

20. Unrealizable revenue

a) Short-term unrealized revenue Ending of year


VND

Revenue received in advance fromasset lease 3,374,235,992 3,374,235,992

Other revenue received in advance 2,083,441,381 113,636,364

Total 5,457,677,373 3,487,872,356

b) Long-term unrealized revenue Ending of year

VND Beginning of

yearVND

Revenue received in advance fromasset lease 138,062,459,324 141,436,695,316

Deferred income on capital contribution using land use rights 171,552,289,536 171,552,289,535

Total 309,614,748,860 312,988,984,851

21. Other payables

a) Short-term other payables Ending of year

VND Beginning of

yearVND

Surplus assets pending 32,898,830 19,650,717

Trade union fees 681,220,061 778,914,616

Social insurance, health insurance, unemployment insurance 1,334,129,575 1,159,150,776

Payable for equitization 34,082,760,007 34,322,722,979

Long-term deposits 1,347,265,609 1,708,460,000

Dividends payable 1,170,929,355 1,024,853,485

Other payables 124,184,100,741 136,431,569,767

Board of compensation, site clearance for the projects 56,499,293,289 68,503,861,216

Registration fees and maintenance fees payable to the apartments

27,332,993,660 25,880,017,386

DICReal Estate Joint Stock Company 7,111,697,483 7,111,697,483


47

a) Short-term other payables Ending of year

VND Beginning of

yearVND

Thanh Binh Development Investment Construction Joint Stock Company

2,459,351,231 8,197,837,439

Kim Ngan Phat Investment Services Joint Stock Company 5,588,450,000 7,088,450,000

Other payables 25,192,315,078 19,649,706,243

Total 162,833,304,178 175,445,322,340

b) Long-term other payables Ending of year

VND Beginning of

yearVND

Deposits 1,411,929,462 2,157,848,801


116,274,962 469,393,801

Other long-term deposits 1,295,654,500 1,688,455,000

Other long-term payables - -

Total 1,411,929,462 2,157,848,801


48

22. Loans

a) Short-term loans

Ending of year

VND During the year


VND

Value Amount can be paid Increase Decrease Value Amount can be paid

Joint Stock Commercial Bank for Investment and Development of Vietnam(i) 93,396,717,906 93,396,717,906 266,167,617,683 243,429,380,140 70,658,480,363 70,658,480,363

Vietnam Export Import Commercial Joint Stock Bank - - - 6,549,573,094 6,549,573,094 6,549,573,094

Bank for Agriculture and Rural Development, Dong Nai Branch (ii)

81,500,000,000 81,500,000,000 91,500,000,000 202,586,092,340 192,586,092,340 192,586,092,340

Joint Stock Commercial Bank for Foreign Trade of Vietnam (iii)

9,991,034,256 9,991,034,256 20,184,308,113 20,144,813,388 9,951,539,531 9,951,539,531

HCMC Development Commercial Joint Stock Bank (iv) 67,941,791,397 67,941,791,397 87,614,791,397 43,703,000,000 24,030,000,000 24,030,000,000

Industrial and Commercial Bank of Vietnam (v) 2,359,509,789 2,359,509,789 - - 2,359,509,789 2,359,509,789

Lien Viet Post Commercial Joint Stock Bank (vi) 3,074,729,166 3,074,729,166 3,074,729,166 - - -

Maritime Commercial Joint Stock Bank, Vung Tau Branch (vii)

39,200,000,000 39,200,000,000 39,200,000,000 - - -

Orient Commercial Joint Stock Bank, Vung Tau Branch (viii)

4,412,993,000 4,412,993,000 4,412,993,000 - -

SG Thuong Tin Commercial Joint Stock Bank, Vung Tau Branch(ix)

153,085,818 153,085,818 153,085,818 153,096,000 153,096,000 153,096,000

Personal Loans (x) 4,486,977,779 4,486,977,779 40,213,850,000 39,739,995,415 4,013,123,194 4,013,123,194

Total 306,516,839,111 306,516,839,111 552,521,375,177 556,305,950,377 310,301,414,311 310,301,414,311

(i) Short-term loans from Joint Stock Commercial Bank for Investment and Development of Vietnam, BRVT Branch in accordance with Credit Agreement No.

01/2016/600276/HDTDHM dated 12/05/2016; The loan line is VND30,000,000,000, which includes all outstanding short-term borrowings of the borrowers at the bank transferred from short-term Credit Agreements in accordance with Credit Line Agreement No. 01/2015/600276/HDTDHM dated 03/04/2015; Purpose of loans: adding working capital, making guarantee, opening L/C; The loan term is 12 months from the date of signing the Agreement; the interest rate for each debt certificate varies from 8.7% to 9.6% per annum. The form of loan guarantee is the land use right and property on land in Ward 5, Vung Tau City and the


49

Corporation’s office at No. 265 Le Hong Phong, Ward 8, Vung Tau City. Total value of collateral assets: VND22,766,000,000. Loan balance at 31/12/2016: VND25,800,336,107. Agreement No. 01/2016/600371/HDTD dated 04/01/2016; Loan term: 12 months from 04/01/2016 to 31/12/2016; Loan line: VND20,000,000,000; Interest rate: 6%/year; Purpose of loans: Addingworking capital. Collateral by the Company: Macber construction hoist; Fmgru tower crane; Mitshubishi Grader; Shanghai roller; Sumitomo digger 0.8m3 and Sumitomo 1.2m3; Bomag vibrator; Watanabe 12-14 ton cart; Toyota Zace car; Huyndai truck mounted crane; Toyota Camry 2.4 G car; Toyota Fortuner car; Excavator, Thaco Forland truck; SC 100/100construction hoist; Electronic Distance Meter; Certificate of land use rights No. BX920904 at C4-4/9 of Chi Linh Central Area, Thang Nhat Ward, Vung Tau City. Collateral by the third Party: Real Estate of Mr. Dinh Xuan Cong and Ms. Le Thi Hoa at 195/15 Hoang Van Thu, Ward 7, Vung Tau City; Real Estate of Mr. Tran Duy Anh and Ms. Nguyen Hoai Tin at Lot E15 Dai An Residential Area, Ward 9, Vung Tau City; Real Estate of Tran Dang Khoa and Ms. Do Thi Tuyet Nhung at 76/28 Nguyen Huu Canh Tau, Thang Nhat Ward, Vung Tau City. Total value of collateral: VND20,832,200,000. Loan balance at 31/12/2016: VND12,197,565,568 Agreement No. 02/2016/600371/HDTD dated 16/3/2016; Term of loan: 12 months, from 16/03/2016 to 15/03/2017; Loan line: VND30,000,000,000; Interest rate: 6%/year; Loan purpose: Construction of vocational training school in Phu Quoc Island, Kien Giang Province; Collateral: The entire debt claim arising from the construction contract No. 09/HD/Teakwang-DIC No1 dated 09/01/2016 and the appendix attached. Loan balance at 31/12/2016: VND5,015,932,235; Agreement No. 03/2016/600371/HDTD dated 23/11/2016; Loan term: 5 months, from 23/11/2016 to 22/4/2017; Loan line: VND6,000,000,000; Interest rate: 6%/year; Purpose of loans: Construction of electrical system, water supply and drainage, sanitation, busway, lightening system of DIC Phoenix work; Collateral: All right to claim debts arising from construction Contract No. 12A/HD-DIC Corp-BQLDT dated 18/08/2016 and Appendix of contract. Loan balance at 31/12/2016: VND2,827,804,179;

Loans from Joint Stock Commercial Bank for Investment and Development of Vietnam, BRVT Branch in accordance with Credit Agreement No. 01/2017/600331/HDTD dated 12/08/2016; The loan line is VND35 billion,Interest rate: 6%-6.75%/year;Term of loan: 12 months, from 12/08/2016 to 06/08/2017; Purpose of loans: adding working capital; The form of loan guarantee is collateral. The total value of collateral is VND73 billion. The loan balance at 31/12/2016 is VND12,595,000,000. Classification of long-term loans for medium-term Credit Agreement No. 01/2014/600331/HDTH dated 29/12/2014 on short-term loans is VND 1,896,000,000. Loans from Joint Stock Commercial Bank for Investment and Development of Vietnam, BRVT Branch in accordance with Credit Agreement No. 01/2016/600331/ HDTH dated 19/02/2016. The loan interest rate is 10.2% per annum, the C is 60 months, from the first withdrawal date is 22/04/2016. Loans to invest, upgrade the technical infrastructure of Vung Tau Hotel, DIC Star-Phase 2. The form of loan guarantee is collateral. Total value of collateral: VND79 billion. The loan balance at 31/12/2016 is VND1,782,553,469. Classification of long-term loans on short-term loans is VND1,782,553,469


50

Joint Stock Commercial Bank for Investment and Development of Vietnam. Agreement No: 01/2016/8066985/HDTD. Loan term: 12 months, from 19/05/2016 to 19/05/2017. Ddding working capital, making guarantee, opening L/C. Loan line: VND1,000,000,000. The loan balance at31/12/2016: VND1,000,000,000. Interest rate: 8 %/year. The form of loan guarantee is collateral. Short-term loans from Joint Stock Commercial Bank for Investment and Development of Vietnam, BRVT Branch in accordance with Credit Agreement No. 01/2015/600331/HDTD dated 06/08/2015; The loan line is VND35 billion,; the interest rate is7.5%/year, loan terms is 12 months, from 06/08/2015 to 06/08/2016. The purpose of loans: adding working capital.The form of loan guarantee is collateral. Total value of collateral: VND79 billion. The loan balance at 31/12/2016 is 31/12/2016: VND24,950,620,000.

Credit LineAgreement No.: 01/2016/600370/HDTD. Loan term: 12 months, from 11/04/2016 to 11/04/2017. Loan purpose: adding working capital for business and making guarantee at the request of the investor. Short-term loan line: VND10,000,000,000. Interest rate: Floating, specified in each credit agreement in accordance with the bank interest rate regime in each period, the interest rate at the time of initial recognition is 7%/year. Credit LineAgreement No.: 03/2016/600370/HDTD. Loan term: 11 months from 05/10/2016 to 05/10/2017. Loan purpose: adding working capital for making guarantee implementation of DIC Phoenix project phase 1 in Chi Linh Chi Linh Central Area, Vung Tau City. Loan line: VND16,000,000,000. Interest rate: Floating, specified in each credit agreement in accordance with the bank interest rate regime in each period, the interest rate at the time of initial recognition is 7%/year. And the Credit Agreements each time have interest rates of 6.5 - 7.5%/year. Loan term is less than 12 months. Loan purpose: adding working capital. Collateral: Real Estate in Land Lot 239, Map 37, (A4), No. 05, Street No. 06, Thang Nhat Ward, Vung Tau City, owned by Development Investment Construction Joint Stock Company Corporation - DIC No. 02; 01 YZY400D Hydraulic Pile Press, 01 QTZ6015tower crane, 01 YZY600HHydraulic Pile Press. The right to claim debts for future construction volume from the construction contract No.12/HD-DIC Corp-MBDT dated 31/05/2016. Loan line: VND12 billion. Loan term: 06 months from the withdrawal date under each credit agreement. Loan purpose: adding working capital. Interest rate: 6% - 9%/year. Collateral: The land use rights of land lot located in Dai Phuoc Commune, Nhon Trach District, Dong Nai Province under the Certificate of Land Use Rights No. AL 011373 of the Development Investment Construction Joint Stock Company Corporationunder the documentsamended andsupplemented the CollateralContract of land use rights No. 01/2015/HDBDS/609911 dated 15/05/2015 signed between BIDV Ba Ria, Development Investment Construction Joint Stock Company Corporationand DIC Construction Materials Joint Stock Company.

(ii) Short-term loansfrom Vietnam Bank for Agriculture and Rural Development, Branch of Dong Nai province under the following credit agreements:


51

Credit Agreement No. 5900-LAV-201602316 dated 31/08/2016. Loan line: VND 29,500,000,000; Loan purpose: covering the demand for payment for production and business in 2016; Loan term: Until the end of 19/08/2017; Loan balance at 31/12/2016: VND29.5 billion.

Credit Agreement No. 5900-LAV-201602588 dated 30/09/2016. The loan line:VND52,000,000,000; Loan purpose: coveringcosts for construction and installation of equipment of General Hospital of BRVT province; Loan term: Until the end of 30/09/2017; Loan balance at 31/12/2016: VND52,000,000,000.

The interest rate is applied at floating rate and adjusted according to the regulations of Agribank and Agribank - Dong Nai Branch announced in each period. Loan interest rate at the time of signing the credit agreement is 8%; The form of loan guarantee is the land use right certificate of land lots in Dai Phuoc eco-tourism area, Nhon Trach district, Dong Nai province; Total value of collateral: VND497,187,582,416 VND.

(iii) Joint Stock Commercial Bank for Foreign Trade of Vietnam, Vung Tau Branch Credit Line Agreement No.: 2015-DIC/HDHM dated 03/12/2015; Loan line: VND6 billion; Loan term: 06 months from the date of withdrawal of each debenture;

Loan purpose: adding working capital; Interest rate: 7%/year. Collateral: The entire factories, machinery, equipment, structures of the Long Huong Tunnel Brick Factory and the rights to mine My Xuan 3 Clay Mine following the provisions of the CollateralContractNo.DIC-2003/HDTC-TUYNEL signed on 14/07/2003 between DevelopmentInvestmentConstruction Corporation and the Bank for loans; Contract No. 01/2011/NHNT.TUYNEL in 12/2011 together with the Agreement on the inheritance of the rights and obligations of the borrower signed on 07/11/2012 between Building Materials Joint Stock Company and the Bank. Total value ofcollateral: VND16,744,000,000. Loan balance at 31/12/2016: VND5,091,813,618.

Credit Line Agreement No.: 2016/DIC/HDMH dated 15/12/2016; Loan line: VND6 billion; Loan term: 06 months from the date of withdrawal with each debt Certificate; Loan purpose: Adding working capital; Interest rate: 6%/year;

Collateral: The entire factories, machinery, equipment, structures of the Long Huong Tunnel Brick Factory and the rights to mine My Xuan 3 Clay Mine and deposit account No. 0085000279717 valued at VND50,000,000 under collateralAgreement No. 01/2016-DIC/HDCC dated 08/12/2016 together with two minutes of asset valuation dated25/11/2016 and 08/12/2016; Total value ofcollateral: VND14,929,000,000; Loan balance at 31/12/2016: VND900,000,000.

Short-term loans from Joint Stock Commercial Bank for Foreign Trade of Vietnam, Quang Nam Branch under Credit Agreement No. 6500H1/14366/NHNT dated 18/11/2014 and Appendix No. 01/14366/PL HDTD dated 14/07/2015. Loan line: VND4 billion. Interest rate is applicable to each withdrawal. Loan term: 09 months from the withdrawal date. Loan purpose: adding working capital. The form of loan guarantee is collateral. Total value of collateral: VND35,919,838,738. Loan balance at 31/12/2016: VND3,995,393,714.

(iv) Loans from the Ho Chi Minh City Development Joint Stock Commercial Bank, Vung Tau Branch under the medium- and long-term Credit Agreement No.

1164/2015/HDTDH-DN/051 dated 14/10/2015; Loan line: VND400 billion; Loan purpose: financing Phoenix I & II project in Vung Tau city; The loan term is 60 months from 07/10/2015 (grace period is 15 months from the date of first payment), the principal repayment period is 15 quarters from the grace period; The interest rate for each debt certificate ranges from 9.9% to 11.5%/year. The form of loan guarantee is land use rights for projects and capital contributions to associates. Total


52

value of collateral: VND1,639,334,000,000. As at 31/12/2016, short-term loan balance according to principal repayment period is VND61,941,791,397, long-term loan balance is VND247,808,984,018.

Agreement No.: 0008/2016/HDTDHM-DN/135. Loan term: 12 months, from 09/01/2016 to 09/01/2017. Adding working capital for production and business. Loan line: VND6,000,000,000. Loan balance at 31/12/2016: VND6,000,000,000. Interest rate: 8.5%/year. Collateral: machinery and equipment for production of concrete and land use rights in Nhon Trach 3 Industrial Zone, Dong Nai. Total value of collateral: VND15,721,000,000.

(v) Short-term loans from Vietnam Joint Stock Commercial Bank for Industry and Trade, Quang Nam Branch under Credit Agreement No. 6500J1/NHNT dated

20/03/2009 and Agreement No. 6500J6/09018. Loan line: VND4 billion. The loan interest rate is calculated on each debt certificate. As of 30/06/2016, this short-term loan principal is overdue. Loan balance at 31/12/2016: VND2,359,509,789.

(vi) Loans from Lien Viet Post Joint Stock Commercial Bank, Vung Tau Branch under Credit Agreement No. 868/15/HDTD-LPBVT dated 30/09/2015; Loan line:

VND800,000,000,000; Loan purpose: Payment of construction items of Vung Tau Gateway apartment building; Loan term is 60 months (grace period is 12 months from the first loan), the principal repayment period is 15 periods after the grace period; The loan interest rate at the time of signing the credit Agreement is 10.5%/year. The form of loan guarantee is Gate Way apartment building at Lot B13, Chi Linh Central Area, Ward 10, Vung Tau City expected to form in the future associated with land use rights; Land use rights under GCN No. AL 622002 issued by the Department of Natural Resources and Environment of BRVT province dated 31/01/2008. The total value of collateral: VND1,952,484,704,000. As on 31/12/2016, the short-term loan balance according to principal repayment period is VND3,074,729,166.

(vii) Short-term loans from Vietnam Maritime Commercial Joint Stock Bank, Vung Tau Branch under Credit Agreement No. 001/2016/HDTDHM dated 29/06/2016.

Loan line: VND40,000,000,000; Loan purpose: adding working capital; The loan term is 12 months from the date of signing the Agreement; The loan interest rate at the time of signing the credit Agreement is 6%/year. The form of loan guarantee is deposit Agreement No. 02/2015/MSB-DIC dated 25/12/2015. Total value of collateral: VND40,000,000,000. Loan balance at 31/12/2016: VND39,200,000.

(viii) Short-term loansfrom Orient Commercial Joint Stock Bank, Ba Ria-Vung Tau Branch under Credit Agreement No. 0036/2016/HDTD-DN dated 12/08/2016; Loan

line: VND53 billion; Loan purpose: payment of land use fees and infrastructure investment cost of Hiep Phuoc project; The loan term is 12 months; Interest rate is 9.4%/year. The form of loan guarantee is the land use right under GCN No. AL 011375 dated 31/12/2007 and the land use rights according to GCN No. BG 788068 dated 20/09/2011 issued by Dong Nai Provincial People’s Committee. The total value of collateral is VND66,481,000,000. Loan balance at 31/12/2016: VND4,412,993,000.

(ix) Loans from Saigon Thuong Tin Commercial Joint Stock Bank, Vung Tau Branch under the CreditAgreement of gradually decreasing loan balance No.

LD1532400090 dated 11/12/2015. The loan amount is VND306,181,818, interest rate is 7%/year, the loan term is 24 months from 16/12/2015. Loans to pay for the truck. The form of loan guarantee is collateral. The total value of collateral is VND306,181,818. The loan balance at 31/12/2016 is VND153,085,818.

(x) Loans from other organizations and individuals.


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Loans from the Environmental Protection Fund of Ba Ria Vung Tau Province under loan Agreement No. 01/2013/HDVV dated 20/06/2013. The credit line is VND2.5 billion. The interest rate is 5.4%/year and the loan term is 60 months from 06/07/2013. Loans to invest in wastewater treatment system of DIC Star-Cap Saint Jacques 4-star hotel with capacity of 120m3/day of DIC Tourist and Trade Joint Stock Company. The form of loan guarantee is the third Party’s guarantee is Vietnam Development Investment Fund, Ba Ria Vung Tau Branch. The loan balance at 31/12/2016 is VND736,000,000. Classification of long-term loans on short-term loans is VND588,000,000. Loans from Ngo Thi Thanh Chau under loan Agreement dated 01/12/2016. Interest rate is 0.5%/month, the loan term is less than 12 months. Loans to add working capital. Form of loan guarantee is collateral. The loan balance at 31/12/2016 is VND1.248 billion. Loans from Nguyen Thi Tuyet Binh under the loan Agreement dated 01/12/2016. Interest rate is 0.5%/month, the loan term is less than 12 months. Loans to add working capital. Form of loan guarantee is collateral. The loan balance at 31/12/2016 is VND 529,200,000. Other individuals, Interest rate is7,5 %/year – 8%/year, loan term is 6 months.

b) Long-term loans Ending of year

VND During the year


VND


Joint Stock Commercial Bank for Investment and Development of Vietnam, Vung Tau Branch(i) 8,002,197,070 8,002,197,070 38,088,409,173 34,907,327,419 4,821,115,316 4,821,115,316

Joint Stock Commercial Bank for Foreign Trade of Vietnam, Quang Nam Branch(ii) 2,859,000,000 2,859,000,000 420,000,000 901,000,000 3,340,000,000 3,340,000,000

Vietnam Bank for Agriculture and Rural Development, Dong Nai Branch

- - 81,500,000,000 81,500,000,000 - -

Asia Commercial Joint Stock Bank, HCMC Branch(iii) 143,249,987,066 143,249,987,066 143,249,987,066 - - -

Lien Viet Post Commercial Joint Stock Bank, Vung Tau Branch(iv)

36,422,537,307 36,422,537,307 39,497,266,473 3,074,729,166 - -

HCMC Development Commercial Joint Stock Bank, Vung Tau branch (v) 247,808,984,018 247,808,984,018 229,240,891,965 61,941,791,397 80,509,883,450 80,509,883,450

SG Thuong Tin Commercial Joint Stock Bank - - - 153,085,818 153,085,818 153,085,818

Maritime Commercial Joint Stock Bank, Vung Tau Branch

- - 39,200,000,000 39,200,000,000 - -


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b) Long-term loans Ending of year

VND During the year


VND


Orient Commercial Joint Stock Bank, Vung Tau Branch - - 4,412,993,000 4,412,993,000 - -

Other individuals(vi) 148,000,000 148,000,000 - 1,188,000,000 1,336,000,000 1,336,000,000

Total 438,490,705,461 438,490,705,461 575,609,547,677 227,278,926,800 90,160,084,584 90,160,084,584

(i) Loans from Joint Stock Commercial Bank for Investment and Development of Vietnam, Vung Tau Branch under medium-term Credit Agreement No. 01/2014/600331/HDTH dated 29/12/2014. The loan interest rate is 11%/year, the loan term is 60 months, from the first withdrawal date is 06/02/2015. Loans to renovate technical facilities, replace equipment and supplies for Vung Tau Hotel. The form of loan guarantee is collateral. Total value of collateral: VND79 billion. The loan balance at 31/12/2016 is VND6,400,147,070.

Classification of long-term loans on short-term loans is VND1.896 billion. Credit Agreement No. 02/2016/600370/HDTD. Loan term: 54 months, from 19/07/2016 to 19/01/2021. Loan purpose: payment for ZYJ860 hydraulic pile press.

Loan amount: VND5,200,000,000. Interest rate: 7.5% per annum at the time of first withdrawal, then adjusted every 6 months. Collateral: ZYJ860 Hydraulic Piling Press. Classification of long-term loans duedate: VND1,200,000,000.

(ii) Long-term loans from the Joint Stock Commercial Bank for Foreign Trade of Vietnam, Quang Nam Branch under Credit Agreement No. 6500J1/14322/NHNT dated 15/08/2014 with the loan amount of VND4 billion. The interest rate is from the date of receiving the first loan, the loan term is 60 months. The form of loan guarantee is collateral under the collateral Agreement No. 276/2014/VCB.QNa. Total value of collateral: VND 6,785,675,000 billion. Loan balance at 31/12/2016: VND2,460,000,000.

Credit Agreement No.: 2016765/KHBL, loan term: 60 months, from 20/09/2016 to 20/09/2021. Loan to buy 05-seat Ford Ranger car, plate number 60C-309.69. Loan line: VND420,000,000. Interest rate: 8.43%/year. Collateral: 5-seat Ford Ranger care, plate number 60C-309.69 owned by the Corporation.

(iii) Long-term loansfrom Asia Commercial Bank, Ho Chi Minh City Branch under Credit Agreement No. HCM.DN.409.010715 dated 07/07/2015. Loan line is:

VND246.5 billion; Loan purpose: Buy Block B - Pullman 5-star hotel complex and Vung Tau International Exhibition Center; The loan term is 60 months from the date of signing the Agreement; Interest rate: 9% - 9.5%/year. The form of loan guarantee is the receivables and the rights is the money and all the rights and benefits of Dic-Corp acquired under the joint venture contract dated 16/08/2007 was signed with Vinacapital Pacific Company Limited and Allright Asset Limited Company; All receivables and rights are amounts and all rights and benefits of Dic-Corp acquired from Vina Dai Phuoc JSC; Accounts Receivables and Proceeds are amounts and all rights and benefits of Dic-Corp under long-term sale/lease contract of apartment in Block B - Pullman 5-star hotel complex and Vung Tau International


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Exhibition Center (Located at Le Hong Phong - Thi Sach St., Thang Tam Ward, Vung Tau City, Ba Ria - Vung Tau Province); 18,920,000 ordinary shares issued by Phuong Nam Development Investment Corporation. Total value of collateral: VND746.268 billion; Loan balance at 31/12/2016: VND143.249.987.066.

(iv) Loan froms Lien Viet Post Commercial Joint Stock Bank, Vung Tau Branch under Credit Agreement No. 868/15/HDTD-LPBVT dated 30/09/2015; Loan line is

VND800,000,000,000; Loan purpose: Payment of construction items of Vung Tau Gateway apartment building; Loan term is 60 months (grace period is 12 months from the first receipt), the principal repayment period is 15 periods after the grace period; The loan interest rate at the time of signing the credit Agreement is 10.5%/year. The form of loan guarantee is Gate Way apartment building at Lot B13, Chi Linh Central Area, Ward 10, Vung Tau City expected to form in the future associated with land use rights; Land use rights under GCN No. AL 622002 issued by the Department of Natural Resources and Environment of BRVT province on 31/01/2008. The total value of collateral is: VND1,952,484,704,000. As of 31/12/2016, the long-term loan balance is VND36,422,537,307.

(v) Loans from the HCMC Development Commercial Joint Stock Bank, Vung Tau Branch under the medium- and long-term Credit Agreement No.

1164/2015/HDTDH-DN/051 dated 14/10/2015; Loan line is: VND400 billion; Loan purpose: financing Phoenix I & II project in Vung Tau city; The loan term is 60 months from 07/10/2015 (grace period is 15 months from the date of first receipt), the principal repayment period is 15 quarters from the grace period; The interest rate for each debt certificate ranges from 9.9% to 11.5%/year. The form of loan guarantee is land use rights for projects and capital contributions to associates. Total value of collateral: VND1,639,334,000,000. As on 31/12/2016, the long-term loan balance is VND247,808,984,018.

(vi) Loans from the Environmental Protection Fund of Ba Ria Vung Tau Province under loan Agreement No. 01/2013/HDVV dated 20/06/2013. The credit line is

VND2.5 billion. The interest rate is 5.4%/year and the loan term is 60 months from 06/07/2013. Loans to invest in wastewater treatment system of DIC Star-Cap Saint Jacques 4-star hotel with capacity of 120m3/day of DIC Tourist and Trade Joint Stock Company. The form of loan guarantee is the third Party’s guarantee is Vietnam Development Investment Fund, Ba Ria Vung Tau Branch. The loan balance at 31/12/2016 is VND736,000,000. Classification of long-term loans on short-term loans is VND588,000,000.

(vii) Loans from Mr. Tran Tan Trung, loan Agreement No. 01/HDV-2013 dated 26/02/2013. Interest rate is 9%/year. Loan balance at 31/12/2016: VND148,000,000.


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c) Issuance of bonds Ending of year


VND

Type of issuance at par value (i) 990,772,006,910 989,167,138,546

Par value (DIC.BOND.2014.1000) 1,000,000,000,000 1,000,000,000,000

Bond discount (9,227,993,090) (10,832,861,454)

Total 990,772,006,910 989,167,138,546

(i) The Corporation issued bonds code DIC.BOND.2014.1000 dated 16th May 2014; Type of Bonds: Non-convertible bonds with collateral; Bond par value:

VND1,000,000,000/bond; Number of bonds issued: 1,000 bonds; Bond term: 05 years; Issuancedate: 16/05/ 2014; Maturity date 16/05/2019; Interest rate: Bondhas fixed interest: the first interest period is 12.2%/year, from the second interest period, the bond interest rate is determined by the principle of the reference interest plus the margin of 4%/year. The reference interest rate is determined by the average interest rate of personal savings deposit in VND listed for post-paid interest payment, 12-month term announced at Transaction Office /Branch of 4 commercial banks in Hanoi (including Joint Stock Commercial Bank for Investment and Development of Vietnam - Transaction Office No.1, Vietnam Joint Stock Commercial Bank for Industry and Trade - Transaction Office, Joint Stock Commercial Bank for Foreign Trade of Vietnam - Hanoi branch and Bank for Agriculture and Rural Development of Vietnam - The Transaction Office at each day determines interest rates); Purpose of issuance: (a) Restructure the Corporation’s capital for Nam Vinh Yen new urban area project and Dai Phuoc eco-tourism urban area project; (B) increase the size of capital and new investment in DIC-Phoenix luxury apartment project and Nam Vinh Yen new urban area project. This bond is secured by the following assets:

Land use rights for projects: Dai Phuoc eco-tourism urban area project; Residential area project in ward 4 Hau Giang; Nam Vinh Yen new urban area; Phoenix hotel and office complex project (Phase 1); The DIC-Phoenix luxury apartment project (Phase 2) and Gate Way project located in the infrastructure of Chi Linh Central Area, Vung Tau City. Capital contribution to Vina Dai Phuoc JSC, Dai An J & D Co., Ltd., Teakwang - DIC Co., Ltd, Viet Thien Lam Investment Joint Stock Company.


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23. Reward and welfare funds Ending of year


VND

Reward fund (1,096,926,221) 7,261,958

Welfare Fund (1,925,643,797) -

Total (3,022,570,018) 7,261,958

24. Deferred income tax payables Ending of year


VND Reversal of ơrovispon of Subsidiaries and Associates 20,817,735,268 26,276,976,124

Foreign exchange differences arising from revaluation of monetary items denominated in foreign currencies

15,870,325,215 15,870,325,215

Total 36,688,060,483 42,147,301,339

25. Provision for long-term payables Ending of year


VND

Provision for warranty of products and goods 645,223,711 566,586,976

DIC Building Materials JSC 645,223,711 566,586,976

Total 645,223,711 566,586,976


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26. Owner’s equity

a) Table on comparation of fluctuationsin owner’s equity

Items Owner’s equity Share surplus Development and investment fund

Undistributed after-tax profits

Benefits of non-controlling

shareholders

Total VND

Beginning balance of lastyear

1,787,436,200,000 386,568,251,707 157,201,646,004 61,984,532,848 45,226,873,372 2,438,417,503,931

Issuance of bonus shares 158,901,730,000 (158,901,730,000) - - - -

Separate issuance 199,000,000,000 10,070,000,000 - - - 209,070,000,000

Gains from last year - - - 10,460,820,959 - 10,460,820,959

Appropriation of funds - - 4,759,856,409 (11,762,380,183) - (7,002,523,774)

Other fluctuations - - - 5,390,646,148 - 5,390,646,148

Ending balance of last year

2,145,337,930,000 237,736,521,707 161,961,502,413 66,073,619,772 45,226,873,372 2,656,336,447,264

Beginning balance of this period

2,145,337,930,000 237,736,521,707 161,961,502,413 66,073,619,772 45,226,873,372 2,656,336,447,264

Issuance of bonus shares 171,610,260,000 (171,610,260,000) - - - -

Separate issuance 65,000,000,000 -

Gains in this year - - - 58,445,977,758 21,560,754,355 80,006,732,113

Appropriation of funds - - 476,211,891 (5,576,211,891) - (5,100,000,000)

Dividends - - - - - -

Other fluctuations - (15,000,000) 1,234,343,191 598,431,153 - 1,817,774,344

Ending balance 2,381,948,190,000 66,111,261,707 163,672,057,495 119,541,816,792 66,787,627,727 2,798,060,953,720


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60

b) Details of capital contribution of owners

Shareholders Ending of year

Beginning of year

Value VND

% Value VND

%

Representatives of State capital 1,182,602,610,000 49.65 1,095,002,420,000 51.04

Capital contributed by other shareholders 1,199,345,580,000 50.35 1,050,335,510,000 48.96

Total 2,381,948,190,000 100 2,145,337,930,000 100

c) Capital transactions with owners From 01/01/2016 to31/12/2016

VND

From 01/01/2015 to31/12/2015

VND

Capital contributed at the beginning of the year 2,145,337,930,000 1,787,436,200,000

Capital contribution increased during the year 236,610,260,000 357,901,730,000

Capital contribution decreased during the year - -

Capital contribution at the end of the year 2,381,948,190,000 2,145,337,930,000

According to the Resolution No. 62/NQ-HDQT of the Board of Management dated 20/06/2016, the Corporation issued additionally 17,161,026 bonus shares to existing shareholders through the use of equity surplus . As a result, the share capital of the Corporation increased from VND2,145,337,930,000 to VND2,316,948,190,000. This additional issuance has been approved by the State Securities Commission. According to Resolution No. 70/NQ-HDQT DIC Corp of the Board of Management dated 13/12/2016, the Corporation has offered individual shares in 2016 with 6.5 million shares. Therefore, the share capital of the Corporation increased from VND2,316,948,190,000 to VND2,381,948,190,000. This additional issuance has been approved by the State Securities Commission.

d) Share(Stock codeDIG) Ending of year

Share Beginning of year

Share

Number of shares registered for issuance 238,194,819 214,533,793

Number of shares sold to the public 238,194,819 214,533,793

Number of common shares 238,194,819 214,533,793

Number of shares acquired - -

Common shares - -

Number of outstanding shares 238,194,819 214,533,793

Common shares 238,194,819 214,533,793

Par value share: VND10,000/share

27. Items off Balance Sheet

Ending of year


VND

Doubtful debts handled 981,372,571 981,372.571

Foreign currency (USD) 982.63 985.93


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VI. ADDITIONAL INFORMATION ON ITEMS PRESENTED IN THE FINANCIAL STATEMENTS

1. Gross revenue from sales of goods and rendering of services This year

VND

Previous year VND

Revenuefrom goods sold 316,711,728,581 257,350,997,403

Revenuefrom finished products sold 145,705,823,464 95,273,720,406

Revenuefrom rendering services 60,632,103,723 94,423,745,486

Revenuefrom construction contracts 183,181,434,858 56,232,671,679

Revenuefrom investment real estate trading 608,406,384,492 182,425,765,204

Other revenues - 6,315,724,250

Total 1,314,637,475,118 692,022,624,428

2. Revenue deductions This year VND

Previous year

VND

Sales discount - 4,701,945

Returned goods 162,708,886,794 36,792,675,729

Total 162,708,886,794 36,797,377,674

3. Net revenue from sales of goods and rendering of services This year VND

Previous year

VND

Net revenuefrom goods sold 316,711,728,581 257,350,997,403

Net revenuefrom finished products sold 145,705,823,464 95,269,018,461

Net revenuefrom rendering services 60,632,103,723 94,423,745,486

Net revenuefrom construction contracts 183,181,434,858 56,232,671,679

Net revenuefrom investment real estate trading 445,697,497,698 145,633,089,475

Net revenue from other activities - 6,315,724,250

Total 1,151,928,588,324 655,225,246,754

4. Cost of goods sold This year VND

Previous year

VND

Cost of goods sold 292,158,109,491 242,932,608,291

Cost of finished product sold 118,993,015,249 79,342,453,656

Cost of services provided 13,808,485,581 27,860,645,735

Cost of construction contract 145,449,621,367 42,808,251,236

Cost of real estate trading 262,784,641,319 98,303,765,718

Provision for devaluation of inventory 148,650,000 -

Total 833,342,523,007 491,247,724,636


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5. Revenue from financial activities This year VND

Previous year

VND

Gains from deposits, loans 10,985,639,359 28,398,124,271

Selling financial investments 4,216,000,000 -

Dividends and profits distributed 6,136,537,085 5,007,102,000

Gains from selling foreign currency - 7,077,374,430

Gains from exchange rate differences 2,364,453,443 21,288,600,220

Gains from deferred sales, payment discount 1,677,005 909,470,245

Total 23,704,306,892 62,680,671,166

6. Finanical expenses This year VND

Previous year

VND

Loan interest 15,687,433,198 7,713,389,459

Discount for payment, interest for late payment 27,324,528 175,220,326

Lossesfrom liquidation of financial investments 4,224,168,113 8,795,941,186

Lossesfrom realized exchange rate differences 896,453 -

Lossesfromunrealized exchange rate differences 23,419,265,222 -

Provision for trading securities and investment losses 8,091,297,389 (11,023,153,443)

Other financial expenses 216,520,113 493,051,463

Total 51,666,905,016 6,154,448,991

7. Sale expenses This year VND

Previous year

VND

Cost for sales staff 26,678,926,874 28,509,434,334

Cost for instruments and tools 10,008,972,813 12,286,871,982

Cost for depreciation of fixed assets 5,328,993,557 5,191,768,224

Cost for raw materials 1,092,503,986 1,908,871,866

Cost for electricity and water 4,536,055,454 5,494,589,511

Brokerage cost 7,015,924,657 -

Cost for marketing, advertising 621,153,818 -

Transportation cost 6,724,631,941 3,806,738,787

Other expenses 60,112,322,561 78,749,900,817

Total 74,474,032,977 82,556,639,604

8. General and administration expenses This year

VND

Previous year VND

Expense for management staff 40,555,349,826 11,864,599,132

Provision fro doubtly receivables 19,710,238,542 -

Fuel cost 860,271,629 -

Cost for instruments and tools 751,030,157 -


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8. General and administration expenses This year

VND

Previous year VND

Depreciation cost 2,963,153,789 -

Outside purchasing cost 1,600,552,493

Other expenses 15,978,839,546 74,487,154,571

Total 82,419,435,982 86,351,753,703

9. Other profits This year VND

Previous year

VND

Other incomes 6,767,645,282 12,111,842,205

Discount, promotion 2,925,099,212 2,038,762,645

Fines for breach of economic contracts 1,734,099,480 4,340,718,349

Revenue from liquidation of fixed assets, tools 393,939,044 -

Fines of interest due to late payment 616,337,002 -

Other incomes 1,098,170,544 5,732,361,211

Other expenses 5,710,185,630 24,779,753,174

Residual value of the liquidated fixed assets - 277,832,170

Fines for late payment, administrative violation 3,790,332,903 16,596,491,168

Fines for breach of economic contracts 45,000,000 2,002,462,692

Other expenses 1,874,852,727 5,902,967,144

Other profits 1,057,459,652 (12,667,910,969)

10. Current corporate income tax expense This year VND

Previous year

VND

Total accounting profit before tax 91,817,011,881 32,133,590,489

Adjustments in increase, (decrease) 69,047,664,805 14,792,806,150

Gains (losses) from Subsidiaries 16,398,419,556 5,973,776,277

Reversal of provision from Subsidiaries, Associates (3,061,074,396) (7,305,482,343)

Gains (losses) from Joint Ventures, Associates 42,970,446,005 6,793,849,528

Unrealized gains on asset sale (458,259,342) (229,129,671)

Exchange rate difference of losses from Vina Dai Phuoc 23,419,265,222 -

Expenses are not deductible when calculating CIT 3,208,458,667 38,427,720,962

Fines 102,056,353 -

Remuneration for the Board of Directors, Board of Supervision not directly manage

246,000,000 -

Provision for doubtful receivables 49,902,917 -

Transfer losses from previous years (5,326,920,720) (21,282,824,247)

Exchange rate difference (2,364,092,372) (4,185,104,356)

Dividends (6,136,537,085) (3,400,000,000)

Total taxable profits 160,864,676,686 46,926,396,639


64

10. Current corporate income tax expense This year VND

Previous year

VND

Current corporate income tax expense 31,547,425,874 10,323,807,260

Deferred corporate income tax expense (5,459,240,856) -

Corporate income tax expense 37,006,666,730 10,323,807,260

According to Law No. 32/2013/QH13 on amending and supplementing some articles of the Law on Corporate Income Tax passed by the 13th National Assembly of the Socialist Republic of Vietnam at its 5th Session on 19thJune 2013, The corporate income tax rate fell from 22% to 20% from 01st January 2016.

11. Deferred income tax expense This year VND

Previous year

VND

Deferred income tax recognized (5,367,588,987) 7,941,252,168

Total (5,367,588,987) 7,941,252,168

12. Basic earnings per share (DIG) This year VND

Previous year

VND

Profit after tax of the parent company 58,445,977,758 10,460,820,959

Adjustments in increase or (decrease) profits (5,576,211,891) (1,552,958,574)

Profit attributable to shareholders owning shares 52,869,765,867 8,907,862,385

Average number of outstanding shares during the year 223,665,594 201,885,026

Basic earnings per share 236 44

13. Cost of production and business by factor This year VND

Previous year

VND

Raw materials cost 288,135,812,771 180,688,071,181

Labor cost 181,042,366,981 115,445,474,868

Fixed asset depreciation expense 23,768,823,401 23,092,994,332

External services expense 797,517,537,028 267,977,945,789

Other expenses in cash 103,062,076,357 166,464,828,348

Total 1,393,526,616,538 753,669,314,518

VII. OTHER INFORMATION

1. Operating lease At the balance sheet date, future minimum lease payments from irrevocable operating lease contractare as follows:


65

Ending of year


VND

From 1 year or less 3,374,235,956 3,374,235,956

From more than 1 year to 5 years 13,496,943,825 13,496,943,825

More than 5 years 126,252,633,531 129,626,869,487

Total 143,123,813,312 146,498,049,268

Total rentals incurred recognized as revenue in the year are VND3,374,235,956 (previous year: VND3,374,235,956).

2. Segment report Segment reportby geographic area: The Corporation operates in geographic area in Vietnam only. Segment report by business sector Main business segments of the Corporation are as follows:

Real estate Investment in the development of new urban areas, investment in housing development and infrastructure of urban areas and economic zones. Construction Construction of civil, industrial, technical infrastructure, transportation, irrigation works.

Commerce and Services Project management consultancy, construction investment consultancy, construction items trading, travel business, office leasing.

For fiscal year of 2016

Commerce Services Construction Real estate Total VND

Segment net revenues

462,417,552,045 60,632,103,723 183,181,434,858 445,697,497,698 1,151,928,588,324

Segment expenses

(411,299,774,740) (13,808,485,581) (145,449,621,367) (262,784,641,319) (833,342,523,007)

Income of segments

51,117,777,305 46,823,618,142 37,731,813,491 182,912,856,379 318,586,065,317

Financial revenue 23,704,306,892

Financial expense (51,666,905,016)

Gains or losses of Joint Ventures or Associates (42,970,446,005)

Sale expense (74,474,032,977)

General and administration expense (82,419,435,982)

Other incomes 6,777,334,933

Other expenses (5,719,875,281)


66


Commerce Services Construction Real estate Total VND

Current corporate income tax (31,547,425,874)

Deferred corporate income tax expenses 5,367,588,987

After-tax profits 65,637,174,994


Commerce Services, others Construction Real estate Total VND

Segment revenues 352,620,015,864 100,739,469,736 56,232,671,679 145,633,089,475 655,225,246,754

Segment expenses (322,275,061,947) (27,860,645,735) (42,808,251,236) (98,303,765,718) (491,247,724,636)

Income of segments

30,344,953,917 72,878,824,001 13,424,420,443 47,329,323,757 163,977,522,118

Financial revenue 62,680,671,166

Financial expense (6,154,448,991)

Gains or losses of Joint Ventures or Associates (6,793,849,528)

Sale expense (82,556,639,604)

General and administration expense (86,351,753,703)

Other incomes 12,111,842,205

Other expenses (24,779,753,174)

Current corporate income tax (10,323,807,260)

Deferred corporate income tax expenses (7,941,252,168)

After-tax profits 13,868,531,061

3. Events after closing out to set up the Financial Statements

There is no event occuring after the closing date to prepare the final statement causing any of adjustments or announcement on the final statements.

4. Information ofrelated parties During the course of its business, the Corporation incurs transactions with related parties and amounts not paid to related parties at the time of preparing the Financial Statements. The main transactions in the period are as follows: Contents/Related party Relationship Transaction

value VND

Ending balance receivables/(payables)

VND Receivables from suplly of goods and services

DICReal Estate Joint Stock Company Associate 545,259,000 87,825,000

Vina Dai Phuoc Corp Associate 148,697,531,347 193,527,369,935


Associate

375,073,299

-


67

Contents/Related party Relationship Transaction value VND


VND Southern Development And Investment Joint Stock Company

Associate

956,982,735

263,441,002


Associate

-

199,363,995,196

Brothers DIC Ceramic Associate 3,807,100 3,807,100


Associate

4,451,425

4,451,425

Construction Number 4 Joint Stock Company

Related party

62,000,000,000

62,000,000,000

Receivables from share transfer

Mr. Phan Van Binh Related party - 20,369,021,195

Mr. Nguyen Vu Tuan Related party - 20,369,016,499

Mr. Le Van Huong Related party - 8,318,000,000

Other receivables

Construction Hoi An Joint Stock Company Associate - -

DICReal Estate Joint Stock Company Associate 240,750,000 240,750,000

Vina Dai Phuoc Corp Associate 99,761,450 -


Associate

15,574,013,888

142,999,999

Brothers DIC Ceramic Associate 1,270,833,332 6,834,539,446


Associate

408,299,286


Related party

-

-

Branch of A.T.A Construction Investment JSC

Related party

7,243,927,547

23,764,779,509

A.T.A Construction Investment JSC Related party 893,151,145 3,158,261,696

Receivables from loans

Brothers DIC Ceramic Associate - 10,000,000,000

Southern Development And Investment Joint Stock Company Associate

18,800,000,000

12,700,000,000

Development Investment Construction Sport Tourist Joint Stock Company Associate

48,000,000,000

18,000,000,000


Related party

-

26,242,803,794

A.T.A Construction Investment JSC Related party - 4,456,000,000

Receivables from joint venture contribution

DIC Investment and Trade JSC Related party - 3,000,000,000


Related party

-

84,318,359,768


68

Contents/Related party Relationship Transaction value VND


VND

Payables for service supply

DICReal Estate Joint Stock Company(Broker)

Associate

1,616,639,945

(2,313,913,226)


Associate 138,511,300 -


Related party

124,181,461,451

(9,150,325,100)

Thanh Binh Development Investment Construction JSC Related party

29,701,543,036

(8,821,471,067)

Short-term advanced payment to supplier

DICReal Estate Joint Stock Company(construction)

Associate 7,387,433,038

3,470,381,534


Associate 1,122,573,900

143,249,987,066

Payables for joint venture capital contribution

DICReal Estate Joint Stock Company Associate 12,750,000 (7,111,697,483)

Thanh Binh Development Investment Construction JSC Related party

-

(2,459,351,231)

Deposits received

Development Investment Construction Concrete Joint Stock Company Associate

-

116,274,962

During the year, the Corporation made the payment of allowances and income to members of the Board of Management and the Board of Supervisors of the Corporation, specifically:

Content This year VND

Previous year

VND Allowances, bonuses for Board of Management and Board of Supervisors

1,889,840,000 1,889,840,000

5. Information on comparative figures Comparative figures are the figures in the Consolidated Financial Statements for the fiscal year ended as on 31st December 2015 and the Consolidated Financial Statements for the fiscal year ended as on 31st December 2015 audited by Ernst & Young Vietnam Co., Ltd.



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Documents

AUDITED CONSOLIDATED FINANCIAL … · information in accordance with Circular No. 155/2015/TT-BTC dated 06/10/2015 issued by the Ministry of Finance on the disclosure of information