vinci Package: Geotechnical Investigations Gace iona Title: Financial Situation XAY DUNG 46 1- on FINANCIAL SITUATION OF BIDDER [27 ‘bus concyy * Date 15", July 2019 Bidder: Construction Corporation No.1 — JSC (CC1) Summarizing the financial date in the recent 3 years (2018, 2017, 2016) Unit: VND No. Content Year 2018 Year 2017 Year 2016 1. | Total assets 9,441,976,088,400 | 8,346,732,552,476 | 9,399,248,910,559 2 | Total liabi 7,589,679,597,133 | 6,712,481,487,313 | 7,630,074,649,971 3. | Net Worth 1,852,296,491,267 | 1,634,251,065,163 | 1,769,174,260,588 4 | Current assets 6,104,086,256,742 | 4,996,297,597,259 | 5,145,214,439,993 5_ | Current liabilities 4,901,615,158,251 | 3,518,425,128,993 | 4,276,563,148,902 6 | Revenues (or Turnover) | 5.939,830,075,089 | 6,096,021,419,957 | 6.584,324,541,712 7. | Before-tax profit 205,147,130,917 | 48,861,615,873 | 231,316,080,196 8 | Aficr-tax profit 192,447,319,004 | 38,725,679,005 | 211,138,803,886RSM , CONSTRUCTION CORPORATION NO 1 JOINT STOCK COMPANY AND ITS SUBSIDIARIES AUDITED CONSOLIDATED FINANCIAL STATEMENTS For the financial period from 01 November 2016 to 31 December 2016CONSTRUCTION CORPORATION NO 1 JOINT STOCK, COMPANY AND ITS SUBSIDIARIES. ‘Address: 111 Pasteur Street, Ben Nghe Ward, District 1, Ho Chi Minh City, Vietnan CONTENTS Pages THE MANAGEMENT'S REPORT 1-2 INDEPENDENT AUDITORS’ REPORT B-4 AUDITED CONSOLIDATED FINANCIAL STATEMENTS, Consolidated statement of financial position 5-6 Consolidated income statement 7 Consolidated cash-flow statement Bree Notes to the consolidated financial statements 10-46 ‘Appendix to consolidated financial statements 47-84CONSTRUCTION CORPORATION NO 1 JOINT STOCK COMPANY AND ITS SUBSIDIARIES ‘THE MANAGEMENT'S REPORT ‘Address: No. 111A Pasteur Stroot, Bon Nghe Ward, For the finzancial period _District 1, Ho Chi Minh City, Vietnam, from 01 November 2016 to 31 December 2016 ‘THE MANAGEMENT'S REPORT ‘The Management of Construction Corporation No 4 Joint Stock Company (hereinafter referred to as “the Company’) hereby presents its report and the audited consolidated financial statements of the Company and its subsidiaries (together with tho Company hereinafter referred to as."the Group’) for the financial period from 01 November 2016 to 31 December 2016 MEMBERS OF THE BOARD OF DIRECTORS, THE CONTROL COMNITTEE, AND THE MANAGEMENT Members of the Board of Directors during the petiod and on the date of this report include: Fullname Position Mr. Le Dung Chairperson Mr. Le Huu Viet Duc Member Mr. Nguyen Duc Dung Member Mr. Nguyen Quoc Cuong Member Mr. Nguyeri Cong Khai Member Mr. Le Thanh Member Mr. Phan Van Vu Member ‘Members of the Control Committee during the period and on the date of this report include: Fullname Position Ms. Tran Thi To Loan Head Ms. Nguyen Thi Hong Phuong Member Ms. Tran Thi Tuyet, Member Members of the Management during the period and on the date of this report include: Full name Position Mr. Le Huu Viet Duc General Director Mr. Nguyon Duc Dung Vice General Director ‘Mr. Hoang Trung Thanh Viee General Director Mr. Huynh Tan Tri Vice General Director Mr. Nguyen Tri Manh Vice General Director RESPONSIBILITY OF THE MANAGEMENT The Group's Management is responsible for preparing the consolidated financial statements of each period which give a true and fair view of the consolidated financial position of the Group and the consolidated Fesults of its operations and its consolidated cash flows. In preparing these consolidated financial statements, the Management is required to: * Select suitable accounting policies and then apply them consistently; + Make judgments and estimates that are reasonable and prudent; + State whether applicable accounting principles have been followed, subject to any departures that need to be disclosed and explained in the financial statements; * Prepare the consolidated financial statements on the going concern basis unless it is inappropriate to presume that the Group will continue in business; and + Design and implement the internal control system effectively for a fair preparation and presentation of the consolidated financial statements so as to mitigate orror or fraud ‘The Management is responsible for ensuring that proper accounting records are kept, which disclose, with reasonable accuracy at any time, the consolidated financial position of the Group and ensure that the consolidated financial statements comply with Vielnamese Accounting Standards, Vietnamese Corporate Accounting System and prevailing accounting regulations in Vietnam, The Management is also responsible for safeguarding the assets of the Group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.CONSTRUCTION CORPORATION NO 1 JOINT STOCK, COMPANY AND ITS SUBSIDIARIES ‘THE MANAGEMENT'S REPORT Address: No. 111A Pastour Street, Ben Nghe Ward, For the financial period 01 November 2016 to 31 December 2016 THE MANAGEMENT'S REPORT (CONTINUED) The Management confirms that the Group has complied with the above requirements in preparing these ‘consolidated financial statements, AUDITOR ‘The accompanying consolidated financial statements of the Group for the financial period from 01 November 2016 to 31 December 2016 were audited by RSM Vietnam Auditing & Consulting Company Limited, & ‘member firm of RSM International STATEMENT BY THE MANAGEMENT In the Management's opinion, the accompanying consolidated financial statements give a true and fair view of the consolidated financial positon of the Group as at 31 December 2016 and the consolidated results of its operations end its consolidated cash flows for the financial period from 01 November 2016 to 31 December 2016 in accordance with the Vielnamese Corporate Accounting Standards, Vietnamese Corporate Accounting System and prevailing accounting regulations in Vietnam, For and on teal. of the Management on) [3 1616 (xd Dung Huu Viet Due General Director Ho Chi Minh City, 31 March 20171S SRR RSM RSM Vietnam st Hoo Sa Go 1 ng Wo Najen Van Fa Sto, Do Ka Ward Disc Hoch din iy, Yet 1 aaa 30075026 Fagan ers? No: O7A - 2017HNIBCKT-RSM HCM INDEPENDENT AUDITOR'S REPORT To: Members of tho Board of Directors ‘Members of the Management CONSTRUCTION CORPORATION NO 1 JOINT STOCK COMPANY Report on the consolidated financial statements ‘We have audited the accompanying consolidated financial statements of Construction Corporation No 4 Joint Stock Company (hereinafter referred to as ‘the Company’) and its subsidiaries (logether with the Company hereinafter referred to as “the Group") prepared on 31 March 2017 as set out from page 05 to page 46, which comprise the consolidated statement of financial position as at 31 December 2016, and the consolidated income statement and consolidated cash-flow statement for the financial period from 01 November 2016 to 31 December 2016, and the notes to the consolidated financial statements, Managoment's Responsibility ‘The Management is responsible for the preparation and fair presentation of these consolidated financial statements in accordance with Vietnamese Accounting Standards and Vietnamese Corporate Accounting ‘System and relevant legislation as to the preparation and presentation of consolidated financial statements and for such internal control as management determines is necessary to enable the preparation and presentation of the consolidated financial statemnents that are free from material misstatement, whether due {o fraud or error. Auditors’ Responsibility ur responsibility is to express an opinion on these consolidated financial statements based on our audit. We conducted our audit in accordance with Vietnamese Standards on Auditing. Those standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the consolidated financial statements are free from material misstatement, ‘An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the consolidated financial statements. The procedures selacted depend on the auditors judgment, including the ‘assessment of the tisks of material misstatement of the consolidated financial statements, whether due to fraud of eror. In making those risk assessments, the auditor considers internal control retevant to the entity's preparation and fair presentation of the consolidated financial statements in order to design audit procadures that are appropriate in the ciccumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s intemal contol. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by the Management, a5 well as evaluating the overall presentation of the consolidated financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion, IE POWER OF BEING U AUDIT} TAX LCONSULTIN . . sis 3aw a wu a id Wu dw i be R ERM Oa ho RSM INDEPENDENT AUDITOR'S REPORT (CONTINUED) Opinion In our opinion, the accompanying consolidated financial statements give a true and fair view of the consolidated financial position of Construction Corporation No 1 Joint Stock Company as at:31 December 2016, and of the consolidated results of its financial performance and its consolidated cash flows for the financial period from 01 November 2016 to 21 December 2016 in accordance with Vietnamese Accounting Standards and Vietnamese Corporate Accounting System and relevant legislation as to the preparation and presentation of consolidated financial statements, GENERAL DIRECTOR BE Dang Thi Hong Loan Pham ThiBich Hanh Auditor Vice General Director Audit Practice Registration Certificate: ‘Audit Practice Registration Certificate: (0425-2016-026-1 1505-2016.026-1 RSM Vietnam Auditing & Consulting Company Limited Ho Chi Minh City, 31 March 2017CONSTRUCTION CORPORATION NO 4 JONT STOCK. COMPANY AND ITS SUBSIDIARIES Address: No. 111 Pasteur Street, Ben Nghe Ward, District 4, Ho Chi Minh City, Viet Nam CONSOLIDATED FINANCIAL STATEMENTS For the financial period __from 01 November 2016 to 31 December 2016 Form B 01 - DN/HN. CONSOLIDATED STATEMENT OF FINANCIAL POSITION ‘AU31 December 2016 Expressed in VND lASSETS i |Code| Notes At 31/42/2016] ALo1ri1/2016 lA. CURRENT ASSETS 400 5,148,214,439,993 | 4,759,001,095,606 I. Cash and cash equivalents 110] 5.1 | 1,085,236,282,606 | 1,293,404,637,885 Cash a 342,512,611,941| 408,649,907,555 l2. Gash equivalents 112 742,723,610,665 | 884,754,730,330 Il. Current financial investments 120] 52 | 334,533,842,930| — 310,488,262,293, I}, Hold to maturity investments 123 334,633,842,930 | 916,468,262,293 II, Current account receivables 130 2,237,850,035,212 | 2,134,686,183,549 1. Trade receivables 191} 5.3 | 1,107.286,209,739 | 1,117,140,237,004 }2. Advances to suppliers 192} 5.4 | 995,433,363,307 | 870,843,840,529 3. Other current receivables 136} 5.6 | 142,496,564,522] — 150,302,013,569 |4. Provision for doubtful debts 137 (7,385,102,446)|—_(8,599,937,643) IV. inventories 140 | 5.7 | 1,185,916,001,606| — 764,654,445,088, 1. Inventories 144 1,185,100,256,259 | 764,838,699,651 2, Provision for dectine in value of inventories | 149 (184,253,573) (184,253,573) \V. Other current assets 150 301,678,277,559 | 247,767,595,791 1. Current prepayments 151 28,798, 140,321 44,782,343,069 2. Value added tax deductible 152 240,026,380,006 | 170,619,661.556 '3. Tax and other receivables from the state budget] 153 | 5.13 | 29,686,615,665| —29,349,096,079 4. Other current assets 156 3.167,141,587 3,022,495,087 IB. NON-CURRENT ASSETS 200 4,254,034,470,666 | 4,119,719,462,616 I. Non-current account receivables 210 173,729,849,385 | 172,311,866,073 1, Non-current loan receivables 215 | 65 59,830,602,257 | _8,646,570,030 2. Other non-current receivables zi6| 56 | 114,099,347,128| —113,065,295,043 I. Fixed assets 220 488,325,358,806 | 498,214,590,336 1, Tangible fixed assets 221) 58 | 380,696,989,470| —389,051,607,426 Cost 222 662,626,364,592 | 664,034,179,984 ‘Accumulated depreciation 223 (282,129,375,422)| | (274,362,572,558) 2, Finance lease assets 224 2,167,813,367 2,271,453,847 Cost 225 3,731,087,272 3,731,087,272 Accumulated depreciation 226 (1,863,243,905)/_(1,459,603,428) 8. Intangible fixed assets 227| 6.9 | 105,460,955,969] —106,291,529,063 Cost 228 128,011,550,116 | 128,011,560,116 Accumulated amortisation 229 (22,550,994,147)|_(24,720,021,053) I. Non-current assets in progess 240 2,744,101,239,010 | 2,613,960,363,019 1. Construction in progress 2a2 | 6.10 | 2,744,101,239.010) 2.64 IV. Non-current financial investments 250 1804,884,932,166 | 790,223,928,016 1. Investments in associates, joint-venturos 262| 62 | 730,604,362,2068} —717,416,047.146 2. Investment in other entities 253 | 52 73,890,569,870| 72,805,880,870 lV. Other non-current assets 260 43,203,091,199| —_45,008,716,072 1. Non-cutrent prepayments 261 42,683,214,300} 44,496,064,131 2. Doferted income tax assets 262 | 609,876,899 512,651,041 [TOTAL ASSETS (270 = 100 + 200) _| 270 20,658,122 Tho accompanying notes are an Integral part of th 0 6 399, 248,910,559CONSTRUCTION CORPORATION NO 4 JONT STOCK COMPANY AND ITS SUBSIDIARIES. CONSOLIDATED FINANCIAL STATEMENTS ‘Address: No, 1114 Pasteur Street, Ben Nghe Ward, For the financial period District 1, Ho Chi Minh City, Viet Nam, from 01 November 2016 to 31 December 2016 Form B 01 - DN/HN. CONSOLIDATED STATEMENT OF FINANCIAL POSITION (continued) ‘ALS1 December 2016 Expressed in VND RESOURCES Code] Notes| At 31/12/2016 Atout/2016 Ic. UaBILITIEs 300 7,630,074,649,971 | 7,144,106,295,235 1. Current iabitities 310 4,276,863,148,902 | 3,875,236,887,557 1. Trade payabies 3it| 5.11] 754,432,942,222 | $75,404,82, 184 2. Advances from customers 312| 5.12| 647,159,064,202 | 651,304,060,404 3. Taxes and amounts payable to the state budget 313| 5.13] — 20,974,272,.636] 16, 125,250,054 /4. Payables to employees 34 60,961,512,657 | _67,152,146,898 5. Accrued expenses 315 | 5.14 | 236,870,312,187 | 317,024,382, 198 6. Other current payables 319 | 5.15 | — 40,806,062,244 | —_81,496,911,425 7. Current loans and obligations underfinance leases | 320 | 5.17 | 2,489,802,788,951 | 2,106,869,004,511 18. Bonus and weltare fund 322 62,067,793,803 | 69,680,779,803 i, Non-current liabilitios 330 3,359,511,601,069 | 3,268,869,407,678 1. Non-current trade payables 331] 5.11] 159,067,305,074 | 137,382,679,843, 2. Advances from customers 332 | 5.12 | 203,327,013,884 | 144,554,585,315 3. Accrued expenses 333 | 514] —49,592,863,490 | 43,290,178,717 4. Non-current uneamed revenue 336 | 516] — 60,899,578,228| —_77.498,984,699 5. Other non-current payables 337 | 5.15 | 414,242,741,331 | 383,432, 164,157 [6. Non-current loans and obligations under finance leases| 938 | 5.17 | 2,359,615,056,995 | 2,403,180,716,373, 7. Non-current provisions 342 76,772,942,127 | 79,530,088,574 D. OWNER'S EQUITY 400 4,769,174,260,588 | 1,734,614,262,887 1. Equity 440 4.769,174,260,588 | 1,734,614,262,887 1. Owner's contiibuted capital 411 | 5.18 | 1,100,000,000,000 | 1,100,000,000,000 Ordinary shares carying voting rights atta 4,100,000,000,000 | 1,100,000,000,000, 2. Share premium 412] 5.18) 110.497.485.118 | 110,497,486,118 3. Asset revaluation reserve 416 | 5.18 | (80,782,671,139)} (80,702,671,130) |4. Investment and development fund 41g] 5.18) — 78,778,129,236| —78,778,129,236 5. Enterprise reorganisation support fund a19| 5.18] — 32,653,207.213 | 64,633,063,944 ls. Retained eamings 421 | 5.18 | 272,148,162,109| 226,897,648,867 Beginning accumulated retained earings a2ia 227,235,996,043 | 191 638,174,096 Ending accumulated retained earnings arb 44,912,165,166 | 36,259,474,771 LZ. Non-Controtling interest 429 | 5.19 | _255,879,848,051 | _244,590,507.462 TOTAL RESOURCES (440 = 300 + 400) 8,878,720,558,122 —% eel — ‘Tran Thi Ngoo Thuy Huynh Anh Dung ‘Le Huu Viet Duc Preparer Chief Accountant General Director Ho Chi Minh City, 31 March 2017 The accompanying noles ave an integral partCONSTRUCTION CORPORATION NO 4 JONT STOCK COMPANY AND ITS SUBSIDIARIES ‘Address: No. 111A Pasteur Street, Ben Nghe Ward, Distict 1, Ho Chi Minh City, Viet Nam. CONSOLIDATED FINANCIAL STATEMENTS For the financial period from 01 November 2016 to 31 December 2016 Form B 02 - DNIHN CONSOLIDATED INCOME STATEMENT For the financial period from 01 November 2016 to 31 December 2016 Expressed in VND From 04 Nov. 2016] From 01 Jan. 2016| Irena _ Codo| Notes| to 31 Dec. 2016| _to 31 Oct. 2016 Fi Revenue 01 7,033,636,012,910 | _§,550,688,528,802 12. Deductions 02 241,308,368 2 [3. Net revenue 10 | 61 | 1,033,304,704,542 | 6,550,608,528,602 4. Cost of sales 11 | 62 | 936,625,703,878| 4,919,429,677,414 [5. Gross profit 20 96,760,000,864| —631,258,851,388 6. Financial income a | 63 13,519,968,453 | 44,191,496,797 7. Financial expense 22 | 64 34,407,042,510| — 363,327,897,906 ‘in which, interest expense 23 33,583,773,090| 316,119,449,263 1s. Share of the profi loss) of associates 24 19,276,318,180 (2,683,778,162) lo. Seting expense 2 1,723,783,618 6,596,907.476 110. General and administration expense 26 | 65 36,631,695,015| — 118,384,334,049 111. Operating profiy(loss) 30 51,801,263,124 | — 184,657,430,602 112, Other income 31 40,299,993,528 | 12,757,549,388, 13. Other expense 32 2,881,839,078 | 25,218,317,369 114. Net other income/(loss) 40 7,418,184,451 | (12,460,767,981)| 115. Accounting profit{loss) before tax 50 59,219,417,575 | 172,096,662,621 16. Current corporate income tax expense | 51 2,981,978,343 | 17,202,213,835 17 Deferred corporate income tax expense | 62 (97,224,958) 90,909,090 18, Net profiv(loss) after tax 60 56,335,264,190| —154,803,530,696, 19. Owners of the parent company ot 44,012,165,166 | 35,260,474,771 20. Non-controling interests 62 11,423,099,024 | 119,544,064,925 21. Basic earnings per share 70 | 5.104 408 : 22. biluted earnings per share m1 |5184 408 - 1 rut iS, ws fj, “Huynh Anh Dung Chief Accountant ‘Tran Thi Ngoe Thuy Preparer Ho Chi Minh City, 34 March 2017 Le Huu Viet Due General Director The aCONSTRUCTION CORPORATION NO 4 JONT STOCK COMPANY AND ITS SUBSIDIARIES CONSOLIDATED FINANCIAL STATEMENTS Address: No. 114 Pasteur Street, Ben Nghe Ward, For the financial period District 4, Ho Chi Minh City, Viet Nam. from 01 November 2016 to 31 December 2016 Form B 03 - DN/HN CONSOLIDATED CASH FLOW STATEMENT (indirect method) For the financlal period from 01 November 2016 fo 31 December 2016 i Expressed in VND From 01 Nov. 2016] From 07 Jan. 2046 res. Gode| Notes] 0 34 Dec. 2016| _ to 34 Oct. 2016 1. CASH FLOWS FROM OPERATING ACTIVITIES 1. Net profit (loss) before taxes ot 59,219,417,875 | 172,096,662,621 2. Adjustment for: Depreciation and amortisation 2 | 66 | 40,214,209,758| 171,078,223,448 Provisions 03 1,008,018,356 | 34,991,922,470 Unrealised foreign exchange gains/losses from 7 revaluation of foreign currency monetary tems | O* (i613, 916:467)) | 383201,308.974 Gains/losses from investment 05 (10,135,716,671)) (34,140,359,326)| Interest expense os | 64 | — 33,583,773,000] 316,119,449,263, 3. Operating profit loss) before adjustments | 9g 422,375,786,661| 695,947,294,470 to working capital Increase or decrease in accounts receivable 09 (163,685,190,592)] 258,493,651,992 Increase or decrease in inventories 40 (415,507,325,156)] 426,925,067,083 Increase or decrease in accounts payable (excluding interest expense and CiT payable) a 202,876.900.200'| (1/822.447,300,034) Increase or decrease prepaid expenses 12 19,797,052,578 | (85,287.171.144) Interest paid 14 (44,460,588,119)| (142,976,149,346) Corporate income tax paid 45 | 543 | — (4,224,671,366)} (13,291,855,160)] Other cash inflows from operating activities 16 =| 369,577,141,928 Other cash outilows from operating activities 7 (40,285,908,042)] _ (437,263,739,408)] Net cash from operating activities 20 (820,114,484,765)] _(440,323,059,608) I. CASH FLOWS FROM INVESTING ACTIVITIES 1. Acquisition and construction of fixed assets and 5,0 71,81 ere ener aaee a (221,645,000,367)| _(471,810,106,927)} 2. Praceeds from disposals of fixed assets and other long-term assets tee eed eon.np0.e08 3, Loans to other entities and payments for 23 (65,795,580,637)| (240,263,769,311) purchase of debt instruments of other entities |4. Repayments from borrowers and proceeds dg Feo O a from sales of debis Instruments of ther entities | 4 asTe0. 000 0 | SSeineee 5. Investments in other entities 25 (1,084,689,000)| _(16,405,363,492)| 6. intorest and dividends received a 9,519,622,008 | 39,258,288,371 Not cash from Investing activities 30 (228,841,530,732)] _(665,424,377,459) (See the noxt page) ‘accompanying notes are an integral pail of the cCONSTRUCTION CORPORATION NO 4 JONT STOCK COMPANY AND ITS SUBSIDIARIES CONSOLIDATED FINANCIAL STATEMENTS Address: No. 111A Pasteur Street, Ben Nghe Ward, For the financial period District 1, Ho Chi Minh City, VietNam. from 01 November 2016 to 31 December 2016_ Form B 03 - NHN CONSOLIDATED CASH FLOW STATEMENT (indirect method) For the financial period from 01 November 2016 to 31 December 2016 Expressed in VND l2, Capital redemption, payments for shares a repurchases. 32 = (358,758,761,972)| ls. Repayment of borrowings 34 | 7.2 | (706,267,288,110)] (3,904,899,959,026)| 8. Finance lease principal paid 36 (230,616,750)] _(1,199,234,927)| Net increasef(decrease) in cash (50 = 20+30+40) 50 (208,277,853,013)| 265,647,759,493 Cash and cash equivalents at beginning of Impact of exchange rate fluctuation 61 109,497,734 (26,912,049) XAY DUNG SO, regal Vhssu Preparer Chief Accountant General Director Ho Chi Minh City, 31 Masch 2017 “Tho accompanying notos are an integral part of the consolidated financial statomonts NeinCONSTRUCTION CORPORATION NO 1 JOINT STOCK, COMPANY AND ITS SUBSIDIARIES CONSOLIDATED FINANCIAL STATEMENTS ‘Address; No, 111A Pasteur Street, Ben Nghe Ward, For the financial period District 1, Ho Chi Minh City, Vietnam. 1016 to 31 December 2016 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS Those notes are an integral part of and should be read in conjunction with the accompanying consolidated financial statements. 4. CORPORATE INFORMATION 44, Structure of ownership Construction Corporation No 1 Joint Stock Company (hereinafter referred to as “the Corporation formerly had been Construction Corporation No 1 Company Limited, formerly had been a state owned enterprise. From dated 01 November 2016, the Corporation was converted into joint stock company named Construction Corporation No 1 Joint Stock Company under According to Business Registration Certificate No, 0301429113 issued by Department of Planning and Investment of Ho Chi tinh City. ‘The charter capital as stipulated in the Business Registration Certificate is VND 1,100,000, 000,000, as follows: Share holders at As at 01 Nov. 2016 ~ Amount Amount (uno) () (nb) (%) State share holders 445,835,000,000 40.53% 446,836,000,000 40.53% Tuan Loc Ganstruction {Investment Corporation 209,000,000,000 19.00% | 208,000,000,000 19.00% Nam Thin MER Corporation 168,000,000,000 18.00% | 168,000,000,000 18.00% Top American Corporation Vietnam 121,000,000,000 11.00% | 121,000,000,000 11.00% Others, 169,165,000,000 14.47% 159,165,000,000 14.47% Total 4,100,000,000,000 100% _4,100,000,000,000 The Corporation's registered head office is at No. 111A Pasteur Street, Ben Nghe Ward, District 4, Ho Chi Minh City ‘The Corporation has subsidiaries as represented in Note 1.6 below (together with the Corporation hereinafter referred to as "the Group’) ‘The number of employees as at 31 December 2016 was 2,144 (31 October 2016: 2,761), 1.2. Business field Construction, real estate, 4.3, Oporating industry and principal activities Business Registration Cerificate, the Group's principal activities include: * Construction, constuction equipment and machinery installation, construction of residential, industrial, transportation, irrigation, hydropower, post office, foundation, construction of Urban infrastructure and Industrial Zone, transmission lines and substation, "Construction consulting, construction investment and trading powor. Seaport exploitation and business, housing busines: Services for office space, apartments; Trading material Designing and construction of civil, industrial, infrastructure; Real estate business. 10CONSTRUCTION CORPORATION NO 4 JOINT STOCK. COMPANY AND ITS SUBSIDIARIES ‘Address: No. 111A Pasteur Street, Ben Nghe Ward, Distict 1, Ho Chi Minh Ci CONSOLIDATED FINANCIAL STATEMENTS. mb from O1 Nc NOTES TO THE CONSOLIDATED FINANGIAL STATEMENTS (CONTINUED) 1.4, Normal operating cycle For the financial period 1016 to 31 December 2016 ‘The Group's normal operating cycle is carried out from the point in time of acquisition of rmaterials for produetion to be used in the construction process unti the projects are completed. 4.5. The Group's structure ‘Tho Group was organised into a direct ownership structure which comprised the parent company and 5 direct subsidiaries. 4.8. Consolidated subsidiaries Direct subsidiaries: ud ee — ‘No.1 Viet Nguyen Construction Joint Stock Company No.1 Viet Quang Construction Joint ‘Stock Company No.1 Viet Hung Construction Joint Stock Company ‘Dong Nai Bridge investment and Construction Joint Stock Company Vina-PSMC Precast Concrete Company Limited Address 4.2 Apartment 351/31 No Trang Long Street, Ward 13, Binh Thanh District, Ho Chi Minh City 34-36 No 2 Street, CilyLand Residential, Ward 5, Go Vap District, Ho Chi Minh City No. 491 A2 No Trang Long Street, Ward 13, Binh Thanh District, Ho Chi Minh City ‘No. 939A Xa Lo Ha Noi Street, Binh Duong Town, Long Binh Tan Ward, Bien Hoa City, Dong Nai Province. Lot 1699, Long Dinh industrial Cluster, Can Duoc District, Long An Province Por cent interest 50.92% 51.00% 51.20% T247% 70.00% 1.7. Associates prosentod in the consolidated financial statements undor the equity method Name Dakrtih Hydropower Joint Stock Company Bien Hoa Concrete Joint Stock ‘Company ‘Mien Trung Construction and Materials ‘Trading Joint Stock Company Construction & Materials Trading Joint ‘Stock Company (C&T) No.1 Viet Tong Construction Joint Stock Company Nhan Phuc Duc Investment Joint Stock Company No.1 Viet Son Construction Joint Stock ‘Company ‘Chuong Duong Corporation ‘Guu Long Construction and Trading House Joint Stock Company 'No.14 Construction Joint Stock Company Address No. 88 Le Duan Street, Nghia Tan Ward, Gia Nghia Town, Dak Nong Province. No. 1A Street, Bien Hoa industrial Zone 1, An Binh Ward, Bien Hoa City, Dong Nai Province, Floor 5, No. 35 Hai Ba Trung Street, Le Hong Phong Ward, Quang Ngai City, Quang Ngai Province, No. 9-19 Ho Tung Mau Street, Dist Chi Minh City No.168 / 38C D2 Street, Ward 25, Binh Thanh District, Ho Chi Minh Ci. No. 114A Pasteur Street, Bon Nghe Ward, District 1, Ho Chi Minh City Floor 1, Apartment No. 24A DS Street, Binh ‘Thanh District, Ho Chi Minh City. No. 328 Vo Van Kiet Street, Go Giang Ward, District 1, Ho Chi Minh City No. 351 No Trang Long Street, Ward 1, Binh Thanh District, Ho Chi Minh City. No. 08 Pham Ngoc Thach Stre« Ho Chi Minh City, Ho , District 1, Por cent Interest 40.07% 40.92% 22.38% 36.17% 20.40% 34.51% 29.91% 23.77% 22.00% 28.90% “CONSTRUCTION CORPORATION NO 1 JOINT STOCK, COMPANY AND ITS SUBSIDIARIES CONSOLIDATED FINANCIAL STATEMENTS Address: No. 111A Pastour Street, Ben Nghe Ward, For the financial period District 1, Ho Chi Minh City, Vietnam 01 November 2016 to 31 December 2016 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) ACCOUNTING CONVENTION, FINANCIAL YEAR AND REPORTING CURRENCY 24, Accounting convention ‘The accompanying consolidated financial statements, expressed in VND, are prepared in accordance with Vietnamese Accounting Standards, Vielnamese Corporate Accounting System and prevailing accounting regulations in Vietnam. 2.2. Financial year ‘The Group's financial year is from 01 January to 31 December; particularly, the first financial period from the date of the Corporation was issued the Business Registration Certificate to 31 December 2016. 2.3. Reporting and functional currency ‘The Group maintains its accounting records in Vietnamese Dong (VND). 3. ACCOUNTING STANDARDS, ACCOUNTING SYSTEM. 3.4. Accounting standards, accounting system ‘The Group has adopted Vietnamese Accounting Standards and Vietnamese Corporate Accounting System, 3.2, Statement of compliance with Vietnamese Accounting Standards and Vietnamese Corporate Accounting Systom ‘The Group's consolidated financial statements for the financial period from 01 November 2016 to 31 December 2076 are prepared in accordance with Vietnamese Accounting Standards and Vietnamese Corporate Accounting System. 4. _ SIGNIFICANT AGCOUNTING POLICIES 44. Applicable exchange rates ‘The exchange rates applicable in accounting are as follows: * The exchange rates announced by bank are applied in accounting, The exchange rate applicable to asset recognition and re-evaluation is the foreign currency-buying rate. ™ The exchange rate applicable to liability recognition and re-evaluation is the foreign currency- selling rate, * Exchange rates applicable to the other transactions are the foreign currency-selling rate. Transactions in foreign currencies are recorded, on initial recognition, in the reporting currency, by applying to the foreign currency amount the spot exchange rate between the reporting currency and the foreign currency al the date ofthe transaction. The exchange differences arising on the sattiement of monetary items are recognised in consolidated profit or loss in the year in which they arise. At the end of the reporting year, monetary items excluding advances to suppliers, prepaid expenses, and tuneamed revenues, which are denominated in foreign currency, are reported using the closing rale and resultant exchange differences resuiting from the reporting alter offset are recognised in ‘consolidated profit or ioss in the year in which they ariso 2CONSTRUCTION CORPORATION NO 1 JOINT STOCK COMPANY AND ITS SUBSIDIARIES CONSOLIDATED FINANCIAL STATEMENTS ‘Address: No. 111A Pasteur Street, Ben Nghe Ward, For the financial period 42. 43. 4A, Distict 1, Ho Chi Minh Gity, Vietnam, ber 2016 from 01 November 2016 to 31 Dace NOTES TO THE CONSOLIDATED FINANGIAL STATEMENTS (CONTINUED) Uso of estimates The preparation of the consolidated financial statements requires management to make estimates and assumptions that impact the carrying value of cerlain assets and liabilities, contingent assets and liabilities reported in the notes as well as revenues and expenses in the consolidated financial statements for the year ended 31 December 2016. Although these estimates are based on management's best knowledge of all relevant information available at the date when the consolidated financial statements are prepared, this does not prevent actual figures differing from estimates, Cash and cash equivatonts ash and cash equivalents comprise cash In hand, cash at bank, cash in transit and current investments for a period not exceeding 3 months or highly liquid investments which are readily convertible to known amounts of cash and which are subject to an insignificant risk of changos. in value, Cash equivalents are defined the same as those under Accounting Standard “Statement of cash flows". Financial investments Held to maturity invostmonts Held to maturity investments comprise term deposits, held to maturity loans to earn periodical profits. If there is any certain evidence that part or all of the investments are irrecoverable, impairment losses are recognised as a finance expense in the current year. Amounts loaned out are measured at their cost. Equity investments in other entities Investments in associates Investments ore classified as investments in associates when the Group directly oF indirectly holds from 20% to under 50% of the voting shares ofthe investeo without any other agreement. Investments in associates are accounted for under the equity method. Under the equity method, on initial recognition the investment in an associate is recognised at cost. In case of investments of non- monetary assets, the cost of investments is recognised at the fair values of the assets es incurred, The carrying amount is increased or decreased to recognise the Group's share of profit or loss of the associate after the date of acquisition. Distributions received from associates reduce the carrying amount of the investment. Other investments Investments classified as other investments are investments other than investments in subsidiaries, investments in associates or investments on joint ventures, Other investments are accounted for under the cost method which comprise purchase prices plus (+) acquisition related costs (if any). In case of investments of non-monetary assets, the cost of investments is recognised at the fair values of the assets as incurred. 13CONSTRUCTION CORPORATION NO 4 JOINT STOCK COMPANY AND ITS SUBSIDIARIES CONSOLIDATED FINANCIAL STATEMENTS Address: No. 111A Pasteur Street, Ben Nghe Ward, For the financial period _Distict 1, Ho Chi Minh Gity, Vietnam, from 01 November 2016 to 31 December 2016 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) Recognition principles of provision for other financial investment impairment loss For other investments Provision for diminution in value of other investments is recognised when the net realisable of the investments is lower than their cost in accordance with Circular No.228/2009/TT-BTC dated 07 December 2009 (Circular 228) and Circular No. 89/2013/TT-ATC dated 28 June 2013 (modifying Circular 228) issued by Ministry of Finance. ‘Account receivables Recognition method Account receivables that comprise trade receivables, inlra-company receivables and other receivables are recognised at the carrying amounts of trade receivables and other receivables less provisions for doubtful debts, Provision for doubtful debts Provisions for doubtful debts are recognised for past-due accounts and for accounts where circumstances indicate that they might not be recoverable. The provision for doubtful debts is Fecognised in accordance with Circular No, 226/2009ITT-BTC dated 07 December 2009 issued by Ministry of Finance. 1 \ ‘The difference between the required balance and the existing balance of provision for doubtful debts is recorded as a general and administrative expense in the consolidated income statement, 4.6, Inventories Inventory measurement Inventories are measured at the lower of cost and net realisable value. The costs of inventories shall comprise all costs of purchase, costs of conversion, and other costs incurred in bringing inventories to their present location and condition, Net realisable value is the estimated selling price in the ordinary course of business less the estimated costs of completion and the estimated costs necessary to make the sale, Inventory cost formulas Inventories are measured using the method, as follow: ‘Materials: Inventories are measured using the weighted average method. Work in progress: include raw materials expense, Costs payable to construction contractors, labor cost. Those are recorded in work items construction. Method of accounting for inventories Inventories are recorded under the perpetual inventory method, Provision for dectine in value of inventories ‘Whoreby the year-end, the net realisable value of inventories is lower than cost, provision for de in value of inventories is recognised. 4CONSTRUCTION CORPORATION NO 1 JOINT STOCK. COMPANY AND ITS SUBSIDIARIES CONSOLIDATED FINANCIAL STATEMENTS, ‘Address: No, 111A Pasteur Street, Ben Nghe Ward, For the financial period District 1, Ho Chi Minh City, Vietnam from 01 November 2016 to 31 December 2016 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) The provision is an excess of the cost of inventories over their not realisable value, The provision is recognised for absolete, slovemoving and defective inventory items in accordance with Circular No. 228(2009/TT-BTC dated: 07 December 2009 issued by Ministry of Finance. The difference between the required balance and the existing balance of the provision for deoline in value of inventories is included in cost of sales in the consolidated income statement, 47. Tangible fixed assets Tangible fixed assets are measured at cost loss accumulated dopreciation Tangiblo fixed asset recognition ‘Tangible fixed assets are initially recognised at their cost. The cost of purchased tangible fixed assets ‘comprises the purchase price and any directly attributable costs of bringing the assets to their present location and working condition for their intended use. Accessories added fo fixed assets when Purchased are recognised separately at their fair value and deducted from the historical cost of the respective tangible fixed assets. ‘The costs of tangible fixed assets constructed by contractors are the finalised costs of the Construction, other directly related expenses and the registration fee (if any). Depreciation and amortisation ‘The costs of fixed assets are depreciated on a straight-line method over their estimated useful lives. ‘The estimated useful lives are as follows, Year 2016 + Buildings, structures 20=25 years "= Machinery and equipment 03 ~ 08 years + Motor vehicles 05 ~ 08 years + Management equipment 02-05 years = Other 05 years 4.8, Intangible fixed assets Intangible fixed assets are measured at cost less accumulated amortisation Intangiblo fixed asset recognition Intangible fixed assets are initially recognised at thelr cost. The cost of an intangible fixed asset comprises the lotal amount of expense incurred by the Group to acquire an asset at the time the asset is put into operation for its intended use. Accounting principles for intangible fixed assets Land use rights Land use rights are stated at their costs less accumulated amortisation. ‘The Group's land use right perlains to land located at $1 Nguyen Thi Minh Khai Street, District 1, Ho Chi Minh City, Vietnam which the Group can use for 50 years. Land use right is amortised using the straight-line method over the duration of the right to use the land. 18CONSTRUCTION CORPORATION NO 4 JOINT STOCK, COMPANY AND ITS SUBSIDIARIES. CONSOLIDATED FINANCIAL STATEMENTS. ‘Address: No. 111A Pasteur Streat, Bon Nghe Ward, For the fineinctal period _Distiict 1, Ho Chi Minh City, Vietnam, from 01 November 2016 to 31 December 2016 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) Computer software Computer software is not an indispensable component of hardware and is recognised as an intangible asset and depreciated over its useful life. 49, Construction in progress Construction in progress is comprise accumulated direct costs relate to the Group's projects which are not completed yet at the closing date of fiscal period, 4.10. Leases Operating oases ‘Assets subject to operating leases are recognised in the consolidated statement of financial position according to the Group's asset classification pattern, Initial direct costs to generate income from operating leases are recognised as expenses in the year amortisad over (he lease term. Lease income from operating leases is recognised in the consolidated income statement on a straight-line basis over the lease term regardless of payment methods. Depreciation of assets subject to operating leases is consistont with the depreciation policy of the lessor for similar assets. 4.11. Liabilities Liabilities are classified into trade payables and other payables based on the following rules: Trade payables represent those arising from purchase and sale related transactions of goods, services or assets and the seller is independent of the buyer; the remaining payables are classified as other payables, Liabilities are also classified according to the maturity date, the remaining term from the date of the consolidated financial statements, original currency, and each creditor. Liabilities are recognised at no less than the payment obligation 4.12, Borrowing costs Capitalisation of borrowing costs Borrowing costs directly attributable to the acquisition, construction or production of qualifying assets, that necessarily take @ substantial period of time to get ready for their intended use or sale, are capitalised as part ofthe cost of those assets until the assets are put ino use or sale Investment income eared on temporary investment of borrowings is deducted from the cost of the respective assets. All other borrowing costs are recognised as an expense in the consolidated income statement when incurred, 4.13. Accrued expenses and provisions Accrued expenses Accrued expenses represent expenses that will be paid in the fulure for goods or services received but not yet paid due to lack of invoices or accounting documents, These expenses are recognised as operating expenses of the reporting year. “6CONSTRUCTION CORPORATION NO 4 JOINT STOCK, COMPANY AND ITS SUBSIDIARIES. CONSOLIDATED FINANCIAL STATEMENTS ‘Address: No. 111A Pasteur Street, Ben Nghe Ward, For the financial period District 1, Ho Chi Minh City, Vietnam. from 01 November 2016 to 31 December 2018, NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) Provisions ‘A provision is recognised when the Group has a present legal or constructive obligation as a result of @ past event, a reliable estimate can be made of the amount of the obligation; and itis probable that ‘an outflow of resources embodying economic benefits will be required to settle the obligation. Provisions shall not be recognised for fulure operating losses. 4.14, Uneamed revenues Uneamed revenues include advance payments for one or more accounting periods for asset leasing, Unearmed revenues are periodically determined and transferred into revenues according to the lease term, 4.6, Owner's equity The owners’ equity The owners! equity is recognised when contributed Reserves Reserves are created at certain percentages of profit after tax as prescribed in the Board of Director's decision of the Group, Retained earnings Net profit after income tax can be distributed to shareholders after the distribution is approved the General annual meeting of shareholders and reserves are created in accordance with the Board of Director's decision of the Group and logal regulations in Vietnam, Asset revaluation reserve For the purpose of determining the fair value of an enterprise, the Group revalued its investments in Subsidiaries and associates in accordance with the Decision No. 270/D-BXD dated 10 March 2018 of the Ministry of Construction and Decision No. 1842/QD-1Tg dated 29 October 2015 of the Prime Minister. The Group recognizes the increase in the original cost of these investments in the separate balance sheet, while the equity of the Group's investees Is not revalued. For the purpose of preparing the consolidated financial statements, the difference between the values of investments in subsidiaries and associates is revalued reflected in the separate balance sheet and the equity value. Ownership is recognized as a deduction in the "Asset revaluation reserve" in the Group's consolidated balance sheet as instructed in Circular 202/2014/TT-BTC dated 22 December 2014 by the Ministry of Finance, 4.16. Revenue, othor income Revenue from sotling goods Revenue from selling goods is measured al the fair value of the consideration received or receivable, In most cases, revenue is recognised when transferring the risks and rewards of ownership to the buyer v7CONSTRUCTION CORPORATION NO 1 JOINT STOCK, COMPANY AND ITS SUBSIDIARIES CONSOLIDATED FINANCIAL STATEMENTS, ‘Address: No, 111A Pasteur Street, Ben Nghe Ward, For the financial period District 4, Ho Chi Minh City, Vietnam, 4a. 4.18. 4.19. _from 01 November 2016 to 31 December 2016 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) Revenue from the sale of real estate in which the Group Is the investor Is recognised when all of the following conditions are satisfied: ‘The real estate has been completed and transferred to the buyer, the Group has transferred to the buyer the significant risks and rewards of ownership of the real estate; + The Group retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the units sold; + The amount of revenue can be measured reliably; * The economic benefits associated with the transaction flowed or will flow to the Group; and ‘The cost incurrad or to be incurred in respect of the transaction can be measured reliably, Revenue involving the rendering of services Revenue of a transaction involving the rendering of services is recognised when the outcome of this transaction can be estimated reliably. When a transaction involving the rendering of services is altbutable to several poriods, each period's revenue is recognised by reference to the stage of Completion at the end of the reporting period! Revenue from construction contracts Revenue from construction contracts is recognised in accordance with the accounting policy on construction contracts (see below) Interest income Interest income is recognised on an acerual basis by reference to the principal outstanding and at the interest rate applicable. Dividend income Dividend income from investments is recognised when the Group's right to receive payment has been established Contruction contracts Where the outcome of a construction contract can be estimated reliably, revenue and costs are ecognised by reference to the stage of completion of the contract activity at the date of the consolidated statement of financial position as measured by the proportion that contract costs incurred for work performed to date bear to the estimated total contract costs - except where this would not be representative of the stage of completion, Variations in contract work, claims and incentive payments are included to the extent that they have been agreed with the customer. Where the outcome of a construction contract cannot be estimated reliably, no profit Is recognised, even when itis probable that total contract costs will exceed total contract revenue, Cost of sales Cost of sales and services provided represents total costs of finished products, goods, services, investment properties or manufacturing costs of construction products (for construction entities) which are sold in the year in accordance with the matching principle, Abnormal amounts of praduction costs of inventories ate recognised immediately in cost of sales. Financial expense Financial expenses represent all expenses incurred in the reporting period which mainly include borrowing costs and losses from exchange differences, 18CONSTRUCTION CORPORATION NO 1 JOINT STOCK. COMPANY AND ITS SUBSIDIARIES CONSOLIDATED FINANCIAL STATEMENTS Address: No. 111A Pasteur Street, Ben Nghe Ward, For the financial period _District 1, Ho Chi Minh City, Vietnam, from 01 November 2016 to 31 Dock 16 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) 4.20. General and administration expense General and administration expenses represent common expenses, which include payroll costs for office employees (salaries, wages, allowances, etc); social insurance, health insurance, trade union ees and unemployment insurance; stationery expenses, material expenses, depreciation expenses of fixed assols used for administration activities, license tax; utllly services (electricity expenses, water expenses, phone, fax, warranty expenses, etc.); sundry expenses (entertainment, customer conference, ete.) 4.24, Taxation Corporate income tax Current corporate income tax expense Current corporate tax expense is determined on the basis of taxable income and the rate of corporate income tax. (CIT) of the current year at 20%, Value added tax ‘The goods sold and services rendered by the Group are subject to value added tax at 10% Other taxes Other taxes are applicable in accordance with the prevailing tax laws in Vietnam. The tax reports of the Company in the Group will be inspected by the Tax Department. Application of the laws and regulations on tax to different transactions can be interpreted by many ways; therefore, the tax amounts presented in the consolidated financial statements can be amenced in accordance with the Tax Department’ final assessment of the Company in the Group. 4.22, Earnings per share Basic earings per share are calculated by dividing the not profit attributable to ordinary shareholders (after adjusted for bonus and welfare funds), by the weighted average number of ordinary shares outstanding during the year, excluding ordinary shares bought back by the Group and held as treasury shares, 4.23, Diluted earnings per share Diluted eamings per share are calculated by dividing the net profit attributable to ordinary shareholders (after adjusted for bonus and welfare funds), by the weighted average number of ordinary shares outstanding during the year and total ordinary shares that would be issued on the ‘conversion, excluding ordinary shares bought back by the Group and held as treasury shares. 4.24, Consolidation principles ‘The consolidated financial statements are the financial statements of a group in which the assets, liabilities, equity, income, expenses and cash flows of the parent and subsidiaries are presented as those of a single economic entity regardless of the legal structure of the entities, The financial statements of the subsidiaries have been prepared for the same financial year using uniform accounting policies fo those used by the parent company. Adjustments were made for any different accounting policies to ensure consistency between the subsidiaries and the parent company, 19CONSTRUCTION CORPORATION NO 1 JOINT STOCK. COMPANY AND ITS SUBSIDIARIES CONSOLIDATED FINANCIAL STATEMENTS. Address: No. 111A Pasteur Street, Bon Nghe Ward, For the financial period Distict 1, Ho Chi Minh City, Vietnam from 01 November 2016 to 31 December 2016 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) Non-controlling interest recognition Non-controling interests in the net assets and net results of consolidated subsidiaries are shown separately in the consolidated statement of financial position and in the consolidated income statement, ‘The loss of a subsidiary is altrbuled fo the non-contioling interests in proportion to their relative Interests in the subsidiary evan if this results in the non-controliing interests having a deficit balance Profit or loss recognition in changes in ownership interests in subsidiarios Changes in the Group's ownership interest in a subsidiary that do not result in the Group losing control are accaunted for as equity transactions. The carrying amounts of the Group's and the non-controling interests are adjusted to reflect the changes in their retative interests In the subsidiary. Any difference between the amount by which the non-controling interests are adjusted and the fair value of the consideration paid or received is recognised directly in equity in the consolidated statement of financial position, Upon loss of control of a subsidiary, the Group's profit or loss is calculated as the difference between the fair value of the consideration received and the respective carrying amount of the net asset of the subsidiary plus the remaining balance of goodwill at the date when control is lost Intra-group transactions elimination Al intra-group transactions, balances, income and expenses including unrealised intra-group profits or losses are eliminated in full on consolidation. Unrealised losses resuling from intra-group transactions that are deducted in arriving at the carrying amount of assets are also eliminated unless the cost cannot be recovered, (See the next page) 20CONSTRUCTION CORPORATION NO 4 JOINT STOCK COMPANY AND ITS SUBSIDIARIES CONSOLIDATED FINANCIAL STATEMENTS ‘Address: No. 111A Pasteur Street, Ben Nghe Ward, For the financial period District 1, Ho Chi Minh City, Vieinam, from 01 November 2016 to 31 December 2 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) 5. ADDITIONAL INFORMATION FOR ITEMS SHOWN IN THE CONSOLIDATED STATEMENT OF FINANCIAL POSITION 6.4, Gash and cash equivalents Asat Asat 31 Dec. 2016 01 Nov. 2016 ce iets Cash in hand 33,431, 136,590 28,701,474,988 Cash at banks 309,081,475,351 379,948,432,567 "Cash equivalent 742, 723,670,685 884,754,730,330 Total 1,085,236,282,606_ _1,293,404,637,885 Cash equivalents are deposits with the term from 01 month to 03 months and interest rates from 4.6% to 4.78% por annum, 5.2. Financial investments Held to maturity investments represented are time deposits with the term from 01 month to 14 months ‘at 31 December 2016 and interest rates from 4.3% to 6.4% per annum, The time deposits is mortgaged as short-term loan security at Bank for Investment and Development of Vietnam totalled VND 1,000,000,000 and mortgaged as long-term loan security at Joint Stock Commercial Bank for Foreign Trade of Vietnam — Ben Thanh Branch totalled VND 100,000,000,000 - Refer to Note 5.17 (See the nex! page) 24 (aed yxau 2y2 26g) SVL eW LIL ‘O0n'ose Tez"ezs ‘Ber'zee ves OeL oo0'ose'Lzz'ezs eie've0'uzr'8) 000'900'61 9b Loe'erz'eer'6h o00'000's: F's erc'eae'zie'e con'o0o'eee'y sus'iss'eor's ‘000'000'ee'y zis‘eou'esszy ooo'szo"ize'ee lez'ess'ces'ey ooo'see'rz6'ge s60'08'/zy'z 000'000"era" esc'oar'zee'z ‘000°000'e7e"t 798'y96'068'99 o00'sz1'ese'se osy'evo'eee'v9 coo'szi'es8's9 zee'sto'ess'ees ——_000'009'980'00% o89's08"oes'ses 000'008'969'007 poueus poweu Anbasepun anien 3809, Aunbs sepun snien 3809. 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Current trado receivablos As at As at 31 Dec. 2016 01 Nov. 2016 z ND ND. Trade receivables. Combination contractors JGCS 237,473,700,565 285,448,813,845 Project Management of Ho Chi Minh Police Headquaters Project, 69,219,299,747 69,219,299,747 Others 789,282,364,760 750,192,297,079 Trade receivables from related parties — Refer to Note 9 11,309,844,667 12,279,826,423 eee -1:007,285,208,739_ _4,117,140,237,004_ 6.4, Current advance to suppliors: As at Atas 31 Doc, 2016 01 Nov. 2016 as VND_ ND. ‘Advance to suppliers: Luong Tai Investment Construction JSC 85,719,197,990 86,597,503,490 Sai Gon Medical Equipment and Technolofy JSC 143,773,670,000 156, 382,500,000 Others suppliers 640,358,205,715 _965,509,880,355 ‘Advance to related parties — Refer to Note 9 125,582,289,692 _162,353,956,684 Total 995,433,363,397 _870,843,840,529 5.5. Non-current loan receivables Representing the nen-current loans from related parties with term 15 years and interest rates LIBOR G months for USD, plus interest rate range 0.6% and minus deduction 0.1%, and insuarance fee 0.2% per annum totalled USD 2,630,834.83 equivalent to VND 69,630,502,257 ~ Refer to Note 9, (See the next page)CONSTRUCTION CORPORATION NO 1 JOINT STOCK, COMPANY AND ITS SUBSIDIARIES Address: No. 111A Pasteur Street, Ben Nghe Ward, _District 4, Ho Chi Minh Cit CONSOLIDATED FINANCIAL STATEMENTS For the financial period 31 December 2016 from 01 November 20° NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) 5.6. Othor receivables As at Asat 31 Dec. 2016 01 Nov. 2016 VND VND _ Current: ‘Advances 91,444,021,073 93,489,746,158 Dividends and profits share 7,192,002,954 7,763,455,854 Deposits 41,022,426,828 671,768,980 Others 42,898,113,667 48,377,042,597 Total 142,496,564,522_180,302,013,509 in which, receivables from related parties ~ Refer to Note 9 1,675,086,624 1,678,086,624 Non-curront: ‘An Thinh Company from Happiness Residential ‘Area Project 77,198 522,507 75,447,636 607 Payment on behalf of Dakin Hydropower Joint Stock Company 32,220 654,696 32,220,654,698, Receivables from equitization - 1,930,834,915 Deposits 4,080, 169,925 4,066, 169,925 Total 113,665, 295,043, In which, receivables from related parties — Refer to Note 9 32,220,654,096 32,220,654,696 5.7. Inventories As at 31 Dee. 2016 ‘As at 01 Nov. 2016 i VND. AD Cost Provision Cost Provision Raw matorials 34,426,276,007 = 90,627,111,496 ti Tools and supplies 450,193,093, : 206,211,840 Work in progress 1,030,609,009,474 ~ 603,598,979,270 3 Finished goods 12,641,425,111 + 20,689,607,191 . Merchandise 41,805,895,403 + 20,931,092,734 7 Goods on consignment 1,798,094,051 (184,263,573) —_1,729,159,928, Goods property 64,319,300,820 Total (184,253,573) - 87,055,637,202 - 4,180,100,255,269 (184,263,573) _764,838,699,661__(184,253,573 (Soo tho nxt page) 25CONSTRUCTION CORPORATION NO 1 JOINT STOCK, COMPANY AND ITS SUBSIDIARIES CONSOLIDATED FINANCIAL STATEMENTS Address: No. 111A Pasteur Street, Bon Nghe Ward, For the financial period _District + Minh City, Vi rom 04 November 2016 to 31 December 2016 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) In which, work in progress at 31 Decomber 2016 represented those related to constructions as follows As at Asat 31 Dee. 2016 31 Nov. 2016 VND VND Ho Chi Minh City Children's Hospital Project 380,633,826,364 —107,879,782,316 Vinhomne Villa Project ~ Binh Thanh District - 61,473,953,401 Nghi Son Refinary and Petrochemical Project 103,979,289,989 36,029,497,456 Duyen Hai 3 Thermoelectric Plant 43,786,216,521 z Da Nang ~ Quang Nyai Highway Project Package A1 —148,344,461,869—135,717,264,043 Lam Dong Province Administration Center - 2,276,923,325 ‘An Hao Bridge Project 111,376,276,901 54,751,087,735 Others 244\871,406,760 208,970,520,004 Total 1,030,689,069,874_ _603,598,979,270_ The interest expense capitalized on work in progress in this period totalled VND 5,754,230,442 (Previous period: VND 0) (See the next page)‘9S9'SE6'S18'8e GNA alley) esn ul ng payejoaidep Ayry sjasse paxy 81q)) $00 JEOMOISHY Bu ‘L1'S SION 01 1204 ~ Alsauoadsa: seo'6g1'L6L'782 GNA Due Ziv Ler'0l2'Zz GNA Palleio} unos sueo) ueuno-uoU PUB suEO| JuBLINO se peBpeld sJesse pexy e[q/5Ue} JO anjeA yood Jou PUs-Pouad Jo yuNOWe Bu ouveas ees oae «Sar BIS VTE 309960 S08T ees Cov ee TL TosSie sees ‘Spe SES TaD Sez stoz 20g reve sy ‘Sv 10S 1ST SRE TEOESTESOE B69 OES SBOE C86 C88 F6SVL Ov BLS Elz LE B29 1Sy60S ez 9102 ‘AON L078 SY ‘anjen 3009 38N zev Sle Geb ee BEL OLS HHO ML wereve use’ Or Py e9e 8s PV LO ess Z2b ‘BSl'SLeS06 BL 9b0z 900 be ie Sy (g89's90'69s"h) (eie'ssz'21) (ib eve) ft (esz'egs'ery's) = g90'0Lr' sz # g90'oLr' Lz. - - = ‘vel eee'vee's gvo'val'sie eer'zis'oez zer'ezers'e eee" Loz'use'z vaviosuiez eee Ze Zaehle = OLv'LOS'ZOS'EL 96} 'ZOF'LvO'E sco'ses'sis'ys ieizu'sti'ez, © ber'090'e8s'oL 9102 ‘AON 10 Se 1¥ uopeaudep payeinuinooy zesvarecszes “ESL'SOSIeSL «BaF Ze ZaLS CUS zoe eet «SPS Tee eSGY «EOL zISZe0'rE 9102 “980 bs Seay (ere'ese'ss) (ooo'osv'es) - (esz'egs'azy's) - siesodsia : ooo'sas'ez : yang los‘ose'eee'zs: eur 'zLg'ueo'vte 9402 “Aon veeLi've0've9 © os'vez‘zse‘s © —«gaB'Zee'vEL'9 wey 3809 NK GNA ‘GNA ‘GNA aNx ‘GNA eon 2210 5109, SojoIYSAJO}OW —=—guauidinbe seanjonys suey puoweBeuew pue fue = ‘sBurping Suewdinba syesse pexy siqiBueL “g's {Q3NNLLNOS) SINSWSLVLS IWIONVNId G3LVOFOSNOD SHL Ol S3LON 510g eqWeeG LE OF 902 -SAWISAON TO Woy pOVET [eDUEUY ou OS SINSW3LV1S TWIONVNId G3LYGMOSNOO. ‘ple auN oR LL ON sseeuppy SENS SLI ONY ANYCMOD HOLS INIOF § ON NOLLYHOSUOD NOWOTELSNOOCONSTRUCTION CORPORATION NO 4 JOINT STOCK COMPANY AND ITS SUBSIDIARIES CONSOLIDATED FINANCIAL STATEMENTS Address: No. 1114 Pasteur Street, Ben Nghe Ward, For the financial period District 1, Ho Chi Minh City, Vietnam. {om 01 November 2016 to 31 December 2016 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) 5.9. Intangible fixed assets Computer toms Land uso rights soft ware Total Eo ND ND. Cost: ‘As at 01 Nov. 2016 120,213,351,943 —7,798,198,173—_128,011,550,116 Purchase - - * As at 34 Dec, 2016 _120,213,351,943 7,798,198,173 —” 128,014,550,116 ‘Accumulated amortisation. ‘Asat 01 Nov. 2016 19,582,730,898 —_2,197,290,155 24,720,021,053 ‘Amottisation 408,968,820 '422,004'274 830,973,094 Atas 31 Dec. 2016 191,699,718 22,550,994,147 Net book value: As at 01 Nov, 2016 100,630,621,045 5,660,908,018 106,291 ,529,063 As at 31 Dec. 2046 100,224,652,225 5,238,903, 105 460,555,069 ‘The amount of period-end net book value of intangible fixed assets pledged as current loans and non ~ current loans security totalled VND 2,401,697, 185 and VND 90,721,729,053 respectively ~ Refer to Note 5.17. 5.10, Contruction in progress Details of construction in progress at 31 December 2016 are as follow: As at Atas 31 Dec. 2016 01 Nov. 2016 D ND. Purchase fixed assets 8,979,247,500 +1,648,800,000 Happiness Residential Area Project 787,725,196, 584 718,999,543,713 QL1-Q151-QL1K - An Hao Connection Project 195,636,927,249 198,490,671,268 Dong Nai Bridge BOT Project 1,651,889,269,727 1,659,095,486,627 Salling Tower Project - 51 Nguyen Thi Minh Khai "14,946,647 405 14,949,547 405 Felix Homes apartment Project 12,629,741,529 9,238,949,191 Investment in factory upgrades 19,593,08,880 4,551, 105,762 Project management costs 23,492,351,207 25,243,959, 830 ‘CAMLY hydropower 3,413,122,174 2,923,257,801 Office building 412,919,829,340 12,780, 995,940 Others 19,781,997,415 9,141,086,482 Total __2,744,101,239,010__2,643,960,363,019 ‘The interest expense was capitalized on construction in progress in this period totalled VND 4,697 385,846 (Previous period: VND 23,701 872,343), 28CONSTRUCTION CORPORATION NO 1 JOINT STOCK COMPANY AND ITS SUBSIDIARIES. ‘Address: No. 111A Pasteur Street, Ben Nghe Ward, _Disicl 1, Ho Chi Minh City, Vietnam, CONSOLIDATED FINANGIAL STATEMENTS For the fineancial period __trom 01 November 2016 fo 31 December 2016 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) Land use rights and assets attached to land form in the future from Happiness Residential Area Project are pledged as non~ current bank loans security ~ Refer to Note 5.17. 5.11. Trade payablos Current: Trade payables ‘Thop Viet Trading & Manufacturing Co., Ltd Viet Tuan Construction and Trading Service JSC Others: Trade receivables from related parties — Refer toNote 9 Total Non-current: ‘Trado payables Tran Dac Mechanical Construction ~ Trading Service One member co., Ltd Viet Tuan Construction and Trading Service JSC Others: Trade payables to related parties ~ Refer to Note 9 Total As at 31 Doc, 2016 ND. Payable value 49,810,474,374 49,810,474,374 44,222,608,666 644,214,321,490 44,222,600,666 644,214,321,490 16,184,937,692 16,184,937,692 1754,432,342,222 20,922,880,730 20,922,880,730 14,139,016,920 110,804, 195,839 14,139,016,920 110,804,195,639 13,201,211,585 13,201,211,585 159,067,308,074 (See the next page) 784 432,342,222 As at 01 Nov. 2016 VND Value Payable value 28,475,596,783 23,475,596,783 37,729,926,990 37,729,926,090 504,526,286,555 604,526,266,655 \\" 9,762,541,856 9,762,541,856 575,494,352,184 575,494,352,184 gy 18,099,966,770 18,099,988,770 10,894,729,057 96,132,330,514 10,894,729,057 96,132,330.514 12,255,053,502 12,255,653,502 137,382,679,84: 29