ANNUAL REPORT | 1 CONTENTS Message from CEO Message from Board of Directors Introduction of Management Board 03 05 06 ABOUT US Financial highlights Advantages of agricultural sector Potential of consumer good sector Milestones Our guiding objective Our fund raising and M&A timeline Shareholder structure 09 10 11 12 13 14 15 OUR PROJECTS Ladofoods Vinatea 17 23 OUR WAY FORWARD Next projects Divestment schedule Estimated revenue contribution structure New administrative structure 30 31 31 32 BUSINESS INFORMATION 34 FINANCIAL STATEMENTS Report of the Board of Director Independent Auditor’s Report Consolidated Balance Sheet Consolidated Income Statement Consolidated Cash Flow Statement Footnotes to Financial Statement 35 37 39 43 44 47
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ANNUAL REPORT | 1
CONTENTS
Message from CEO
Message from Board of Directors
Introduction of Management Board
03
05
06
ABOUT US Financial highlights
Advantages of agricultural sector
Potential of consumer good sector
Milestones
Our guiding objective
Our fund raising and M&A timeline
Shareholder structure
09
10
11
12
13
14
15
OUR PROJECTS Ladofoods
Vinatea
17
23
OUR WAY FORWARD Next projects
Divestment schedule
Estimated revenue contribution structure
New administrative structure
30
31
31
32
BUSINESS INFORMATION 34
FINANCIAL STATEMENTS Report of the Board of Director
Independent Auditor’s Report
Consolidated Balance Sheet
Consolidated Income Statement
Consolidated Cash Flow Statement
Footnotes to Financial Statement
35
37
39
43
44
47
ANNUAL REPORT | 3
DEAR VALUED INVESTOR,
GTN marked 2015 as a transformative year, offering
and achieving new investment opportunities, joining
with strategic international investors and expanding
our core businesses.
In the past year, with the success of becoming the
largest investor in Vinatea, the leading and long
established tea brand in Vietnam, GTN made a
significant transition toward becoming a leading
corporation in the agriculture and branded food
sectors. Concomitantly, we reduced and will continue
to reduce our non-core investments, focusing instead
on acquiring, working with and improving SOEs that
offer large scale operations in agriculture and
branded foods.
GTN has built an excellent management team,
leveraging the financial power of strategic
shareholders.
To reach even greater success in 2016, GTN will work
tirelessly to achieve our bold strategy and unleash the
potential of our subsidiaries. We seek to build an
increasingly profitable, larger, more professional and
transparent GTN, achieving best in class professional
standards of operation.
In 2016, our projects continue to proceed with
optimism.
Given our current opportunities, combined with our
management and staff expertise, together with your
support, GTN will continue to grow and strengthen its
name in the agriculture and branded beverage and
food sectors.
Best regards,
Ta Van Quyen
Chief Executive Officer
ANNUAL REPORT | 5
DEAR VALUED INVESTORS,
Offered the opportunity to join the Board of Directors
of GTN in the early part of 2016, I was honored to
accept, and to become Vice Chairman. Having worked
these past years in agriculture and food in Vietnam,
steering investments from international funds
understanding the opportunities now in Vietnam, and
birthing exciting new lines of business, I was and
excellent managers, of rationalizing operations and
driving value through creative brand growth. Few
things are more crucial to the improvement of
Vietnam’s agriculture sector than brand development,
both for domestic consumption and export.
Vietnam is a world leading producer and exporter of
so many agriculture products, but too often remains a
low cost producer and seller of unbranded,
commoditized products such as rice, coffee, tea,
catfish, cashew, pepper, on and on. With 65% of our
population being rural, and 48% of our workforce
being farmers, yet with only 17% of GDP derived from
agriculture, the opportunity and the need are clear.
Rural development, the improvement of living
standards, as well as the opportunity for improved
food safety and food security, all these can most
readily be realized through committed, excellently
managed companies driving world class brand
development; where consumers here and abroad
trust quality and safety.
GTN has achieved exactly this outcome with Chateau
Dalat and Vang Dalat, we are pursuing the same with
VinaTea, and I am excited by the future. With the
vision and ability of GTN, these next five years are set
to be rewarding for all involved.
Sincerely,
Dr. Michael Louis Rosen
Vice Chairman
MR. NGUYEN TRI THIEN CHAIRMAN OF THE BOARD
Mr. Nguyen Tri Thien brings an enthusiastic strength of
experience in business development and financial management
to his work with GTN. He lived and worked in the US for over 20
years, holding senior positions in Toyota Southern California
Region, Vincent Construction Company and CSULB CNC
Workshops.
Mr. Thien, along with other members of the Board of Directors,
determined to lead the Company to become a sustainable
business.
MR. MICHAEL LOUIS ROSEN VICE CHAIRMAN
Dr. Michael Louis Rosen is experienced in fundraising, new
business initiatives and executive management. As PAN Group’s
CEO and Vice Chairman, he led successive fundraisings achieving
approximately 80 USD million in equity, and spearheaded new
business development. He was previously the principal owner of
a member firm of the New York Stock Exchange (NYSE). Dr. Rosen
was also a professor in NYU’s Management Department, and the
former Chief Strategic Officer of Saigon Securities Inc. (SSI).
Joining GTN in early 2016, bringing his years of experience in
Vietnam, Dr. Rosen’s desire is to build GTN to a leading regional
agriculture and branded beverage and food company.
Dr. Michael Lous Rosen earned a Ph.D., MBA and MA from The
Wharton School of the University of Pennsylvania.
MR. TA VAN QUYEN CHIEF EXECUTIVE OFFICER
In 2012, Mr. Ta Van Quyen joined the BOD of GTN and became its
CEO in 2014. He has extensive experience in the food production
industry, exercising key managerial roles in Hai Ha Confectionery
Company, Tien Bao Food Processing Co, Ltd and Chairman sum
CEO of Q&Q Foodstuffs Vietnam JSC.
Mr. Quyen dedicates his career to lead GTN to be a leading
company operating in agriculture and branded beverage and food
in Vietnam and the region.
Mr. Ta Van Quyen graduated from the Hanoi University of
Technology, majoring in Food Technology Engineering.
THONG NHAT CORP | 6
MR. LA MANH TIEN
DEPUTY CEO
Mr. La Manh Tien has assumed the role of CEO at VinaTea, leading the corporate restructuring to achieve efficient operations and quickly pave the opportunity for branded produced development. Mr. Tien graduated from Montesquieu University, France with a master degree in finance. He previously occupied senior positions in Vinaconex JSC, Vincom Construction Co. and Vinabamboo JSC.
MR. NGUYEN TRAN QUANG DEPUTY DIRECTOR
Mr. Nguyen Tran Quang is an expert in consumer branding and marketing. He has held key marketing roles introducing and expanding such international brands as Hennessy and Johnny Walker in Vietnam. He was previously Sales Director of Triumph and Training Directors of Kodak. He also participated in developing brands and products for Da Lat Wine, Thai Tuan Textiles, Trung Nguyen Coffee, Saigon Beer Special, Number 1 energy drink and other leading domestic brands. Mr. Nguyen Tran Quang graduated with double majors in Marketing and Commerce from the University of Texas Austin.
MR. HOANG MANH CUONG
CHIEF ACCOUNTANT
Before joining GTN as Chief Accountant, Mr. Hoang Manh Cuong held senior positions including as Accountant of Ha Tay Food Complex Corporation, Chief Accountant of Bach Hop Food Import and Export Corporation, and Manager of Trung Kien Manufacturing and Investment Corporation. He graduated with a master’s degree in economics from University of Commerce, and has a deep understanding regarding finance and accounting.
ANNUAL REPORT | 7
THONG NHAT CORP | 8
ABOUT US
Unit: VND bn 2015 2014
Total assets 2,104 1,081
Net Revenue 2,105 635
Gross profit 59 53
Earnings after tax 54 89
FINANCIAL HIGHLIGHTS
ANNUAL REPORT | 9
Total assets
Net revenue
Gross profit margin
Total assets and net revenue in 2015 showed
growth of 95% and 231% respectively. The
increase in total assets resulted primarily from
our acquisition of 95% of Vinatea, raising the
number of our subsidiary companies to eight.
Total assets grew to VND2,104 bn, a 95%
increase from to 2014.
Net revenue grew by 231%, primarily contributed
by our strong expansion in business operations.
GTN’s gross profit margin grew by 11%, coming
with a rapid increase in financial expenses
(Approximate 4 times higher than 2014) due to
the company’s need to fund capital expenditure
and M&A activities. A decline in revenue from
financial activities was also recorded
(Approximate 2 times lower than 2014) leading
to a decline in net profit from operating
activities, and a decrease in earnings before tax
compared to 2014.
ADVANTAGES OF AGRICULTURAL SECTOR
In 2015:
• Agriculture accounts for 16% of
Vietnam’s GDP and 14% of the
country’s total export volume, an
export value of over USD22 bn.
Development factors:
• Vietnam government prioritizes
agriculture development, mandating an
overall sector restructuring to achieve
higher efficiency, including larger scale
farming as well as a focus on higher
quality and value-added products,
supported by subsidiary programs in
the period of 2016 – 2020.
• The agriculture sector offers significant
world scale comparative advantages
given weather, soil quality, water and
labor force dynamics.
• Benefits from participating in TPP are
expected to drive significant growth in
agriculture exports.
THONG NHAT CORP | 10 ANNUAL REPORT | 11
POTENTIAL OF CONSUMER GOODS SECTORS
FOOD CONSUMPTION
Growth drivers: National consumption trends are shifting towards higher
quality products, relating also to food safety, as well as an increased
awareness of quality, branding and design.
Market sectors Market value
(USD m) CAGR
2014-2020
Confectioneries 1,344 9,3%
Processed food 8,600 7%
Milk 3,555 6.0%
Tea (including bottled tea) 934 10,9%
CAGR 2014-2018
5%
Total Food Consumption
$43.6B
Growth (2015)
7%
MILESTONES
THONG NHAT CORP | 12
2011 › Established GTN
2013 › 03/2013: USD31 m charter capital. › 12/2013: Raised ownership in VDL to
to USD68 m through private placement to strategic investors.
ANNUAL REPORT | 13
OUR GUIDING OBJECTIVE
Vision: Vietnam’s leading food and agriculture company built through studied, intrepid and fitting
acquisition focused on strong brands within privatizing companies. Skillful consolidation from excellent
governance and managerial control.
Mission: Realizing value by majority acquisition of large scale privatizing agriculture and food companies.
Improving strong brands, strengthening corporate governance and management, divesting non-core
businesses.
Our guiding objective is to build an operating corporation with subsidiaries in the beverage, food and
agriculture sectors.
Our companies will offer the range of agriculture products, packaged foods and beverages present in the
typical shopping basket of Vietnamese consumers.
GTN
Beverage Food Agriculture
OUR FUNDRAISING AND M&A TIMELINE
THONG NHAT CORP | 14
10/2014 › Listed on HOSE.
Charter capital: USD31m.
03/2015 › Raised ownership in
VDL to 35%.
06/2015 › Stock dividend 10:1 › Charter capital: USD34m
08/2015 › Acquired 95% Vinatea › USD21.3m in value
01/2016 › Raised USD36.6m in equity › Charter capital: USD68m
09/2015
› Non-core assets
divestment:
Granite Co.
03/2015
› Non-core assets
divestment:
TItan Co.
ANNUAL REPORT | 15
SHAREHOLDER STRUCTURE
20.00%
26.67%
15.73%
7.52%
30.08% TAEL
Các cổ đông chiến lược trong nước
Các cổ đông chiến lược nước ngoài
Các định chế tài chính
Cổ đông khác
Foreign strategic investors
Financial Institutions
Other shareholders
Domestic strategic investors
THONG NHAT CORP | 16
OUR PROJECTS
ANNUAL REPORT | 17
KEY PERFORMANCE INDICATORS
THONG NHAT CORP | 18
In 2015, Ladofoods continued the positive
growth in its core business operations.
Total revenue increased by 20% to VND428.5
bn in 2015.
Net income for 2015 increased by 23% to
VND24.9 bn. Most of the growth come from
its wine business.
An effective restructuring has significantly
improved operating results. In 2015, revenue
per employee reached VND1 bn, a 250%
growth compared to 2012.
325
389
458
2013 2014 2015
Total Revenue
(VND bn)
23 20
25
2013 2014 2015
Earning after tax
(VND bn)
338 287 389
456 0.4
0.44
0.79
1
0
1
1
2
0
500
1,000
1,500
2,000
2012 2013 2014 2015
Revenue
Revenue per employee
(VND bn)
ANNUAL REPORT | 19
KEY PERFORMANCE INDICATORS
The firm launched new product lines with higher
price points and improved profit margins.
Given the commodity nature of the cashew
business, accounting for a large proportion of
revenue, the company’s aggregate profit margin
did not significantly reflect the improvement in its
wine business.
Vang Da Lat continued to maintain its leading
position in the domestic wine market. The
transformation in package design with the launch
of new product lines and promotional programs
has increased product awareness, brand
recognition and loyalty, as well as the recognition
of increased product quality.
The firm’s market capitalization continued to grow,
recorded at approximate VND500 bn in 2015, a
growth of over 5 times compared to 2012,
reflected in the positive perspective of investors
regarding the transformation of the firm and its
potential.
Gross profit margin of Chateau Dalat
Position in domestic wine market
Market cap. Growth during 2012 - 2015
REFRESH THE BRAND
2015’s Vang Da Lat brand and image repositioning was the most significant step undertaken by Ladofoods.
The designs of its traditional products were refreshed to be consistent, more modern and internationally oriented, encouraging consumers to feel more confident when choosing Vang Da Lat.
Vang Da Lat also launched significant media campaigns and promotions in order to create strong awareness of the new brand and design, with the goal of gradually replacing the earlier brand impressions.
THONG NHAT CORP | 20
Repostioning The Brand
01 Redesigning New Image
02 Product
Improvement
03 Create strong
Awareness
04 Product
Trial
05
ANNUAL REPORT | 21
THE LAUNCH OF CHATEAU DALAT
The company launched a new product range, Chateau Dalat. Created to achieve a higher product value, the consumer is exposed to a fresh perception regarding Vietnamese wine.
The packaging of Chateau Dalat achieves a high standard, suited to the needs of gift giving especially during the Tet Holidays.
Design new global standard packaging Design new label and packaging with premium look for affordable price.
Increase Brand awareness Communicate focus on key media channel & through activation programs.
Create product trial Bring the new wine
directly to the drinker at their premises.
Blind Taste Challenge Challenge the current wine perception to compare on
par with the new world wine.
Chateu Dalat wine
The pleasant surprise from Ladora winery
FOCUS ON EXPANDING DISTRIBUTION NETWORK
Distribution Network
General Trade Supermarkets Key Accounts Hotels
Restaurants
Ladofoods continued to expand its distribution network in 2015.
The number of points of sale is now estimated to be more than 90,000 throughout the country, under the management of over 140 distributors and agents, along with the entire large and small chains of supermarkets.
Thanks to the transformation of brand identity and package designs and the launch of higher-end Chateau Dalat, the firm’s points of sales in hotels and restaurants expanded significantly, including the participation of five-stars hotels such as the Rex and Reverie.
Sales staff continued to be more professional through training and examinations.
THONG NHAT CORP | 22 ANNUAL REPORT | 23
VINATEA – RE-ESTABLISH THE POSITION
A leading tea company
Advantages:
• Former Tea Farm and Tea Factory Union, the
largest tea producer in Vietnam.
• Strong support from Government.
• Own approx. 4,700 ha of tea fields:
2,000 ha in Moc Chau (best quality), Thai
Nguyen, Yen Bai.
2,000 ha in Phu Da (Phu Tho);
718 ha in Lien Son, Nghia Lo.
• 140,000 m2 of office buildings and workshops,
including 34,000 m2 of factory land in Soc Son,
near Noi Bai International Airport.
• Inherit infrastructure and logistic facilities.
• Long-standing recognized brand.
• Solid customer base.
THONG NHAT CORP | 24 ANNUAL REPORT | 25
RESTRUCTURING VINATEA WITH TOP-FIELD EXPERTS
Plantation
Fact Sheet
Phu Da Thai Nguyen Moc Chau Yen Bai Nghia Lo,
Lien Son
Area (ha) 2,000 377 1,138 452 718
Tea type Black tea
Green tea
Black tea Green tea
Oolong
Green tea
Black tea Green tea
Black tea Green tea
Tree type LDP 1
PH1
Trung Du Shan
Kim Xuyen
Trung Du Trung Du
Average age (years) 30 45 57 44 40
Yields (tons/ha) 15 9 25 9 10
Volume per year
(tons)
5,250 1,000 3,750 1,000 1,800
HUMAN RESOURCE
PRODUCTS
QUALITY
• Appoint new CEO. • Appoint new sales director. • Refresh sales team. • Appoint new restructuring team. • Improve the performance of staff.
• Develop new product lines.
• Reposition the brand.
• Launch new product lines in July 2016.
• Introduce new brand identity in May 2016.
• Darjeeling tea consultant projects.
• Initiating Japanese strategic alliance.
MAXIMIZE VALUE THROUGH IMPROVING QUALITY
THONG NHAT CORP | 26
Raw material area Primary products Kim Anh Factory Distribution
Network Customers
Raw material area Primary products Merchants Tea companies Customers
LOW PROFIT MARGIN
REALIZE PROFIT MARGIN
OLD PRODUCT DISTRIBUITION CHAIN OF VINATEA
NEW PRODUCT DISTRIBUTION CHAIN OF VINATEA
0
10
20
30
40
50
Green tea Black teaOrthodox
Oolong tea Premium greentea
Super premiumgreen tea
Margin Distribution Package Brand
Quality Production Raw material
ANNUAL REPORT | 27
STRATEGIES FOR VINATEA IN THE NEXT 5 YEARS
SHORT-TERM
(1 YEAR)
Redesign the Master Brand.
Design new packaging for the core product group to enter the major domestic market.
Distribution to cover all
Modern Trade and expand to General Trade, Business to Business and Tourism.
MEDIUM-TERM
(3 YEARS)
Launch new innovative products.
Launch new product for
international tourist. Launch Ecommerce
website for domestic market.
LONG-TERM
(5 YEARS)
Launch and distribute international tea brand to key global market.
Launch ecommerce
Website for international market.
Introduce the tea house
to serve tea beverage.
IDENTIFY KEY MARKETING TASKS
There are several key tasks that need to be solved in order to build a strong brand.
Create strong awareness od both brand and products
Expand the international customer base
Focus on developing distribution network
Redesign packages
Export refined products
Enhance product quality
TARGETS OF VINATEA IN THE NEXT 5 YEARS
THONG NHAT CORP | 28
Middle East
Re-establish
the market
01 Russia
Export processed
black tea
02 Europe
Export
Processed tea
03 US
Export
Raw material
04 US
Entering Retail
Markets with brands
05
OUR WAY FORWARD
ANNUAL REPORT | 29
NEXT PROJECTS
THONG NHAT CORP | 30
In 2016, GTN will continue to pursue its strategy of acquiring majority ownership positions in and extended operating expertise to agriculture, branded beverage and food companies.
STRATEGIC GOAL OF BUILDING A COMPLETE AND SUSTAINABLE BUSINESS
STRUCTURE
35%
Beverage Agriculture Food
Core
DAIRY
Dairy Farm Packaged Food
Increase ownership Agricultural projects Packaged food company
ANNUAL REPORT | 31
DIVESTMENT SCHEDULE
ESTIMATED REVENUE CONTRIBUTION STRUCTURE
Non-Core Companies
DIVESTED 03/2015
DIVESTED 09/2015
DIVEST Mid 2016
DIVEST Mid 2016
DIVEST Q2/2016
Titan Co.
Granite Co.
Thong Nhat Energy
Thong Nhat Materials
Agri Supply Trading Co.
Thong Nhat Trading
Core: 90% Non-core: 10%
Core: 93% Non-core: 7%
Core: >95% Non-core: <5%
DIVEST Q2/2016
NEW ADMINISTRATIVE STRUCTURE
Centralization: • GTN will continue to centralize management
operations at the parent level. • Pursuing a matrix structure, corresponding
departments in subsidiaries will be under same-department management within the parent company.
• GTN plans a centralized office for parent and subsidiary operations.
Targets: • Ensure the implementation of company strategy. • Monitor administration and decision-making regarding
effectiveness and timeliness. • Facilitate strategic decision-making.
THONG NHAT CORP | 32 ANNUAL REPORT | 33
CONSOLIDATED FINANCIAL STATEMENTS 2015
THONG NHAT CORP | 34
ANNUAL REPORT | 36
REPORT OF THE BOARD OF DIRECTORS
The Board of Directors of Thong Nhat Production and Investment Joint Stock Company ("the Company") presents this report together with the Company’s audited financial statements for the year 31/12/2015. THE BOARDS OF MANAGEMENT AND DIRECTORS The members of the Boards of Management and Directors of the Company who held office at the date of this report are as follows:
Board of Management
Mr. Nguyen Tri Thien Chairman
Mr. Michael Louis Rosen Vice Chairman
Mr. Ta Van Quyen Member
Mr. Hoang Manh Cuong Member
Mr. La Manh Tien Member
Board of Directors
Mr. Ta Van Quyen Chief Executive Officer
Mr. Nguyen Tran Quang Deputy General Director
Mr. La Manh Tien Deputy General Director
BOARD OF DIRECTORS’ STATEMENT OF RESPONSIBILITY
The Board of Directors of the Company is responsible for preparing the financial
statements of each year, which give a true and fair view of the financial position of the
Company and of its results and cash flows for the year. In preparing these financial
statements, the Board of Directors 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
material departures disclosed and explained in the financial statements;
• Prepare the financial statements on the going concern basis unless it is
inappropriate to presume that the Company will continue in business; and
• Design and implement an effective internal control system for the purpose of
properly preparing the financial statements so as to minimize errors and frauds.
The Board of Directors is responsible for ensuring that proper accounting records are
kept, which disclose, with reasonable accuracy at any time, the financial position of the
Company and to ensure that the financial statements comply with Vietnamese
Accounting Standards, Vietnamese Enterprise Accounting System and prevailing
accounting regulations in Vietnam. It is also responsible for safeguarding the assets of
the Company and hence for taking reasonable steps for the prevention and detection of
fraud and other irregularities.
For and on behalf of the Board of Directors,
Ta Van Quyen
Chief Executive Officer
March, 28th 2016
THONG NHAT CORP | 35
ANNUAL REPORT | 38
INDEPENDENT AUDITORS’ REPORT
To: The shareholders and the Board of Management of
Thong Nhat Production and Investment Joint Stock Company
We have audited the accompanying financial statements of Thong Nhat Production and
Investment Joint Stock Company ("the Company") as set out on pages 03 to 32, which
prepared on 28/3/2015. These financial statements comprise the Balance sheet as at
31/12/2015, and Income statement, Cash flow statement, Notes to the financial
statements for the year then ended.
Board of Directors' Responsibility
The Board of Directors is responsible for the preparation and fair presentation of these
financial statements in accordance with Vietnamese Accounting Standards,
Vietnamese Enterprise Accounting System and the statutory requirements relevant to
preparation and presentation of financial statements, and for such internal control as
directors determine is necessary to enable the preparation of financial statements that
are free from material misstatement, whether due to fraud or error.
Auditors’ Responsibility
Our responsibility is to express an opinion on these 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 financial
statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts
and disclosures in the financial statements. The procedures selected depend on the
auditor’s judgment, including the assessment of the risks of material misstatement of
the financial statements, whether due to fraud or error.
In making those risk assessments, the auditor considers internal control relevant to the
entity’s preparation and fair presentation of the financial statements in order to design
audit procedures that are appropriate in the circumstances, but not for the purpose of
expressing an opinion on the effectiveness of the entity’s internal control. An audit also
includes evaluating the appropriateness of accounting policies used and the
reasonableness of accounting estimates made by directors, as well as evaluating the
overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to
provide a basis for our audit opinion.
Auditors’ Opinion
In our opinion, the accompanying financial statements give a true and fair view of, in all
material respects, the financial position of the Company as at 31/12/2015 and the results
of its operations and its cash flows for the year then ended in accordance with
Vietnamese Accounting Standards, Vietnamese Accounting System and the statutory
requirements relevant to preparation and presentation of financial statements.. Hanoi, 2016
Vietland auditing and consulting
Company Limited Ha Noi Branch
HOANG DINH HAI - Vice Director
CPA Certificate No.: 2282-2015-037-1
NGUYEN NGOC TU - Auditor
CPA Certificate No.: 2305-2014-037-1
THONG NHAT CORP | 37
ANNUAL REPORT | 40
CONSOLIDATED BALANCE SHEET
As at 31 December 2015
FORM B 01-DN/HN
Unit: VND
CODE ASSETS NOTES 31/12/2015 01/01/2015
100 A. CURRENT ASSETS 1.339.388.682.418 644.519.908.096
110 I. Cash and cash equivalents V.1 416.449.029.291 11.452.072.713
111 1. Cash 416.449.029.291 11.452.072.713
120 II. Short-term financial investments 67.110.227.391 8.882.031.000
as at year beginning 47.051.431.269 28.700.786.891
421b - Accumulated retained earnings
this year 54.900.054.342 86.456.120.446
429 13. Attributable to minority interests 146.563.196.533 70.766.551.123
430 II. Other resources and funds - -
440 TOTAL LIABILITIES 2.100.977.923.367 1.081.645.546.070
THONG NHAT CORP | 41
Ta Van Quyen
Chief Executive Officer
March, 2016
Hoang Manh Cuong
Chief Accountant
Nguyen Thi Thu Huyen
Preparer
ANNUAL REPORT | 44
CONSOLIDATED INCOME STATEMENT
For the year ended 31 December 2015
FORM B 02-DN/HN
Unit: VND
CODE ITEMS CODES 31/12/2015 31/12/2014
01 1. Gross sales of merchandise and services VI.1 2.109.286.422.692 635.571.120.845
02 2. Revenue deductions VI.1 362.794.250 99.110.100 10 3. Net sales of merchandise and
services VI.1 2.108.923.628.442 635.472.010.745 11 4. Cost of goods sold VI.2 2.045.921.740.476 581.918.763.967 20 5. Gross profit from sales of
merchandise and services 63.001.887.966 53.553.246.778 21 6. Finance income VI.3 34.982.458.850 78.303.412.732 22 7. Finance expenses VI.4 15.903.090.611 4.241.934.116 23 Of which: Interest expenses
14.922.773.127 732.772.163 24 8. Profit/Loss from Affiliates 5.551.142.033 468.555.906 25 9. Selling expenses VI.5 8.754.269.942 4.589.601.225 26 10. General and administrative
expenses VI.6 15.013.509.462 9.895.220.840 30 11. Operating profit/loss 63.864.618.834 113.598.459.235 31 12. Other income 14.576.547.253 1.201.898.892 32 13. Other expenses 10.349.108.386 1.014.755.695 40 14. Other profit/loss VI.7 4.227.438.867 187.143.197
50 15. Earning before taxes 68.092.057.701 113.785.602.432 51 16. Current tax expense VI.8 10.734.040.569 23.789.632.386 52 17. Deferred tax expense/income
- - 60 18. Earning after taxes 57.358.017.132 89.995.970.046 61 - Attributable to the Group 54.900.054.342 86.456.120.446 62 - Attributable to minority
12. Loans and obligations under finance leases (continued)
(i): Loan frrom Agribank - Thu Do Branch under the contract follow: - The Credit Contract No.1483-LAV-201500422 dated 12/08/2015, loan limits is 1,400,000,000 VND. The purpose of borrowing is payment for the purchase of goods. 6 months loan term with interest rate at the time of borrowing is 10%/year. - The Credit Contract No.1483-LAV-201500484 dated 21/09/2015, loan limits is 46,000,000,000 VND. The purpose of borrowing is payment for the purchase of goods. 5 months loan term, interest rate at the time of borrowing is 5,5%/year in the first 3 months and apply normal interest rates of agribank from 4th month.. - The Credit Contract No.1483-LAV-201500445 dated 28/08/2015, loan limits is 72,000,000,000 VND. The purpose of borrowing is payment for the purchase of goods. 5 months loan term, interest rate at the time of borrowing is 5,5%/year in the first 3 months and apply normal interest rates of agribank from 4th month.. - Form of security: Security with land use rights of third parties. (ii): Loan from West Ocean Invest., JSC under the credit contract No.0110/HĐVV/TN-IT dated 01/10/2015, with amount 67,000,000,000VND. The purpose of borrowing is additional capital for production and business activities. 5 months
loan term, interest rate 8%/year . Unsecured loans. (iii) Loan frrom Techconbank – Da Nang Branch under the contract follow: -The Credit Contract DNG2014.0237/HĐHMTD dated 10/10/2014, loan limits is 27 billion VND including credit limit of 10 billion, the guarantee limit 10 billion, the limit L/C 7 billion. 12 months loan term, interest rate specified in each loan contracts. -The Credit Contract DNG2015.1292/HĐHMTD dated 24/06/2015, loan limits is 32 billion VND. The purpose of borrowing: Supply of PVC pipe underground constructions deployed in 2014 of Viettel Network coporation- Viettel Group Branch. 12 months loan term, interest rate specified in each loan contracts. (iv): Loans from individuals, interest rate 6-7%/year, 6 months loan term (v): Bonds issued: The company issued bonds under the Board of Management Resolution No. 33/2015/NQ/HĐQT with the number of bonds is 200 bonds with par value: 1,000,000,000 VND. 3 years term from the date of 10/12/2015, the interest rate of 8.3% / year. . (vi): Loans from Bank in Vinatea and subsidiaries .