30
(07/09/1989 Â 07/09/2019)
YEARS OF ESTABLISHMENT TIN NGHIA CORPORATION
30 YEARS - TIN NGHIA CORPORATION (07/09/1989 - 07/09/2019)
ACCOMPANY WITH
PROSPERITY Base on the foundation of “Tin” and “Nghia”, there is harmonious combination of 3 relationships with customers, internal relations and society. “Tin” is expressed through professional working style, respect, implementation of value, commitment, keeping prestige in all transactions and cooperation. “Nghia” represents for dedication, heart, towards human values and for the benefit of parties and the goal of development.
Contents 04 08
18
24
36
40
Message from Chairman of the Board of Directors INTRODUCTION OF TIN NGHIA CORPORATION 09 Corporation information 10 Value 10 Vision 10 Philosophy 10 Mission 11 History of establishment and development 12 Awards & accolades 13 Human resource 14 Subsidiaries, affiliates and joint ventures 16 Key highlight indicators (2016 – 2018) INTRODUCTION OF EXECUTIVE BOARD 18 Board of Directors 20 The Company Governance 22 Supervision Committee THE 2018 BUSINESS OPERATION RESULTS WITH PLAN FOR 2019 25 30 32
The 2018 business operation results Plan for 2019 Solutions for 2019
TYPICAL PROJECTS 36 36 37 37 38 38
An Phuoc industrial park Ong Keo industrial park Tin Nghia general port Phu Huu petroleum depot – Phase 1 Dai Phuoc tourism & urban area Hiep Phuoc service complex
40
Corporate social responsibility
43 Separate financial statements in 2018 103 Consolidated financial statements in 2018
MESSAGE FROM THE B.O.D CHAIRMAN & CEO
During 30 years of operation, Tin Nghia’s multi disciplinary business model with more than 20 subsidiaries, joint-venture companies and affiliated units, has a turnover of tens of thousands of billion dong as well as steady growth rate over the years. Tin Nghia has been in the list of TOP 200 largest enterprises in Vietnam for many years.
T
he global economy in 2018 showed a slight growth compared to the previous year thanks to the contribution of developing and emerging economies. Vietnam’s economy continued to grow smoothly at a 10-year high growth rate of 7.08% in the 2018 GDP, inflation came below 4% against
4
ACCOMPANY WITH PROSPERITY
the National Assembly’s target, the macroeconomic indicators continued to be stable, the country did attain important achievements in almost all the fields of economy, culture and society. Apart from those favorable factors, the domestic and foreign economic and social environment did face many difficulties and instabilities due to
the impact of the US-China trade war together with the tendency of trade protection of many countries, the fluctuations in weather and instability of agricultural production and agro-product markets, the shortcoming administrative and legal procedures in investment activities. In such a generality, Tin Nghia Corporation substantially completed its plan targets in 2018. Although the parent company’s revenue reached 95% of the plan, the consolidated revenue of the Corporation did boast more than 11,310 billion dongs; the consolidated profit before tax came at 364.8 billion dongs. In 2018, the coffee export business of Tin Nghia continued to prevail in the country’s Top-3 with export turnover boasting approx. 180 million USD. In the business of industrial estate development, the company, along with its ongoing investment activities in infrastructure construction thereof, signed a further lease agreement for 44 hectares of industrial land in the same year. Petroleum business still maintained a high efficiency operation with good revenue, thereby contributing to the corporation’s brandname development. The logistics domain in 2018 continued to show an expansion investment in a strategic direction so as to increase the market share, improve service quality and enhance operational efficiency. The Corporation’s member companies operated effectively and contributed significantly to the Corporation’s earnings. The investment activities of the Corporation in 2018 was highlighted first with the inauguration of Tin Nghia instant coffee factory. Also, the construction of infrastructure of Ong Keo, An Phuoc and Dat Do IPs completed basic work items as well and were ready to welcome domestic and foreign investors. Particularly with Phu Huu petroleum depot and specialized port, the project has yet to implement under plan due to delays in administrative and legal procedures. The compensation for land
The consolidated revenue
11,310
(billion dongs)
The consolidated profit before tax
364.8
(billion dongs)
faced dozens of difficulties and problems, which affected much on the Corporation’s implementation schedule for other projects. As far as the financial dimension is concerned, the Corporation in 2018 successfully issued additional shares to increase its charter capital up to 2,000 billion dongs to supplement capital to its investment projects, and at the same time, the company accomplished registration of its stock at Hanoi Stock Exchange (UPCOM). Given the 2018 results, Tin Nghia was awarded many prestigious titles such as “the National Brand”, “the Vietnam Golden Star”, “the Vietnam Sustainable Enterprise”, “the Enterprises for Employees” and continued to claim its rank in the Vietnam’s Top 200/500 largest enterprises voted by the VNR. For 2019, the world economy is forecasted to slow down with potential difficulties and challenges due to the US-China trade tension and unpredictable fluctuations in international financial and monetary markets. According to international experts and organizations, Vietnam’s economy in 2019 is forecast not only enjoying favorable factors but facing many difficulties and challenges as well. In order to maintain the growth rate, it is necessary to maintain macroeconomic stability, control inflation, ensure the major balances of the economy. ANNUAL REPORT 2018 www.tinnghiacorp.com.vn
5
MESSAGE FROM THE B.O.D CHAIRMAN & CEO
Under this general context, Tin Nghia determines its developments for 2019 with continued focus on the major business lines; continues to both promote advantages and favorable conditions and overcome limitations and shortcomings in the system; maintains the scale, growth rate and efficiency in production and business activities. Accordingly, the Corporation will promote activities to attract investors to industrial parks already completed with infrastructure; brings completed projects into operation so as to shorten the time for capital recovery and to ensure investment efficiency. The Corporation will focus on developing its petroleum sector aiming to become a direct importexport entity, speeding up the implementation of Phu Huu Petroleum Depot project and expanding the network of petroleum retail stations in Dong Nai and Southeast provinces. Logistics is an area with many potentials and advantages, therefore it will be an area of investment interest as well in order to create momentum for the following years.
6
ACCOMPANY WITH PROSPERITY
Tin Nghia determines its developments for 2019 with continued focus on the major business lines; continues to both promote advantages and favorable conditions and overcome limitations and shortcomings in the system; maintains the scale, growth rate and efficiency in production and business activities.
In order to accelerate the implementation of investment projects, the Board of Directors and the Management directs concentration of the resources for land compensation and acquisition. Capital for those investment and development activities is determined as a key factor, thereby the Corporation plans to issue corporate bonds in 2019. For Tin Nghia, 2019 is a year of special significance, the year to celebrate its 30 years of age, marking the 30-year milestone of the Corporation’s formation and development.
The coffee export business continued to prevail
Export turnover boasting approx.
Top 3
181,405,786
Tin Nghia Corporation does recognize and greatly appreciate the important supports of government agencies, together with the close and bilateral cooperation of valued customers, partners and shareholders. On behalf of the Board of Directors and the Management, I would like to express my deep thank to the leaders of the Provincial Party Committee, the Provincial People’s Committee and the provincial departments for the valuable attention and support. I would like to express my sincere gratitude to all customers, partners for sharing and cooperating with Tin Nghia.
My deep thanks to all shareholders for your support and trust in the Board of Directors and the Management. Please accept my special thanks to all of the corporate staff for your devoted efforts over the past years.
IN THE COUNTRY’S
USD
Yours faithfully,
Quach Van Duc B.O.D Chairman & CEO
ANNUAL REPORT 2018 www.tinnghiacorp.com.vn
7
INTRODUCTION OF TIN NGHIA CORPORATION
During 30 years of operation, Tin Nghia’s multi disciplinary business model with more than 20 subsidiaries, joint-venture companies and affiliated units, has a turnover of tens of thousands of billion dong as well as steady growth rate over the years. Tin Nghia has been in the list of TOP 200 largest enterprises in Vietnam for many years.
CORPORATION INFORMATION Name
TIN NGHIA CORPORATION
English name
TIN NGHIA CORPORATION
Address
96 Ha Huy Giap, Quyet Thang Ward, Bien Hoa City, Dong Nai Province
Tel
(84-251) 3822 486 - Fax: (84-251) 3823 747
info@tinnghiacorp.com.vn
Website
www.tinnghiacorp.com.vn
Business license No.
3600283394 (first incorporated on November 3, 2004; 19th modified on 01 Aug, 2018)
Legal Representative
Mr. Quach Van Duc B.O.D. Chairman & CEO
BUSINESS LINES Industrial estates infrastructure
Gasoline, oil, LPG
Agro-products processing & trading
Logistics services
ANNUAL REPORT 2018 www.tinnghiacorp.com.vn
9
INTRODUCTION OF TIN NGHIA CORPORATION PHILOSOPHY
VALUE Tin Nghia directed itself towards the values of Credibility, Loyalty, Honesty, and Responsibility. We devote our behaviors and determination to those values and infuse the values into our services and products as the foundation value of our brand.
VISION To become one of the most admired companies in Vietnam via the aggressive multiindustries development and competitive diversification on domestic and international markets; thus, to maximize Tin Nghia’s contribution to the community and society.
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ACCOMPANY WITH PROSPERITY
In order to support our Values, Vision and Mission, we thoroughly structure corporate principle and regulation to encourage achievement of strategic objectives while benefiting shareholders and investors. On the other hand, Tin Nghia always focuses on establishing an internal performancedriven culture and is ready to cooperate with customers, investors and partners in the spirit of mutual benefit for the sake of sustainable long-term development.
MISSION We dedicate ourselves to economic development of Vietnam through operation in diverse business domains that span agro-products, IP infrastructure & real estate, petroleum & energy, logistics and more. By creating value and opportunities for our employees, customers, investors and partners, we will keep making a different Tin Nghia.
HISTORY OF ESTABLISHMENT AND DEVELOPMENT
07 Sep. 1989
Established since 1989, Tin Nghia Corporation has made great progress and become one of the big and multi disciplinary companies, not only in Dong Nai Province but also in nationwide.
Dong Nai General Services Company (PROSECO) incepted on September 7, 1989.
22 July
11 Mar.
22 Dec.
2010
2009
1992
Decision No. 778/QD-TU dated 22 July, 2010 of the Dong Nai Party Committee regarding Tin Nghia Corp., Ltd incorporated to Tin Nghia Corporation operating under the model of parent company.
Decision No. 526/QD-TU dated March 11, 2009 by the Dong Nai Party Committee, where Tin Nghia Onemember Company Limited was switched to Tin Nghia Corporation., Ltd.
Dong Nai General Services Company was changed to Tin Nghia Company Limited according to Decision No. 09/QD.UBT of the Dong Nai People’s Committee.
18 May
07 Sep.
2016
2019
Tin Nghia Corporation officially converted into a joint stock company upon the Resolution of the Initial Shareholders’ Meeting held on 12 May 2016.
ANNUAL REPORT 2018 www.tinnghiacorp.com.vn
11
AWARDS & ACCOLADES
• Class-2, class-3 Labour Order • National Brand award – Vietnam Value • Award for Vietnam Quality • Vietnam Sustainable Enterprise Award • Vietnam Golden Star Award • Enterprises for Employees Award • Award for Corporate Social Responsibility - CSR Award • Excellent businessman • Export Prestiged Business for 14 consecutive years 2004 - 2017 by the Ministry of Industry and Trade • Certificate of merit for good implementation of tax policies and laws in Dong Nai Province.
TOP
124/500
53/500
in the Top 500 largest enterprises list in Vietnam 2018 (VNR500 2018)
in the Top 500 largest private enterprises list in Vietnam 2018 (VNR500 2018)
TOP
TOP
143/500 in the Top 500 best-profit enterprises list in Vietnam 2018 (VNR PROFIT500 2018)
12
ACCOMPANY WITH PROSPERITY
TOP
72/500 in the Top 500 best-profit private enterprises list in Vietnam 2018 (VNR PROFIT500 2018)
HUMAN RESOURCE
NATIONAL BRAND
Skilled workers (49%).
VIETNAM VALUE AWARD
494
EMPLOYEES
Post-graduate (5.1%);
52
FOR 3 CONSECUTIVE YEARS
EMPLOYEES
TOTAL EMPLOYEES WERE
1,011
TOP
5
(BY 31 DEC 2018),
leading coffee exporters of Vietnam in 2018
TOP
10 Vietnamese Enterprises with Excellent Services, Brands 2017 by the Ministry of Industry and Trade
Professional high school graduates (8.0%);
81 48 336 EMPLOYEES
College graduated (4.7%);
Graduate (33.2%);
EMPLOYEES
EMPLOYEES
ANNUAL REPORT 2018 www.tinnghiacorp.com.vn
13
SUBSIDIARIES, AFFILIATES AND JOINT VENTURES MOTHER COMPANY TIN NGHIA CORPORATION 96 Ha Huy Giap, Quyet Thang Ward, Bien Hoa City, Dong Nai Province - Tel: (84 - 251) 3822 486 Fax: (84 - 251) 3823747 - Email: info@tinnghiacorp.com.vn - Website: www.tinnghiacorp.com.vn JOINT VENTURES 1. Tin Nghia Representative Office in the U.S.A 20 Rahling Circle, Little Rock AR 72223, USA Tel: 1 (501) 8215 575
2. Tin Nghia Corporation, Bao Loc Branch 345 National Highway 20, Loc Nga commune, Bao Loc City, Lam Dong District Tel: (84 - 263) 3930 931 Fax: (84 - 263) 3930 933
Name of Comapny
3. Tin Nghia Construction Enterprise Quarter 8, Long Binh Ward, Bien Hoa City, Dong Nai Province Tel: (84 - 251) 2247 968 - 8619 002 Fax: (84 - 251) 3983 067
Address
SUBSIDIARIES 1 Tin Nghia Industrial Park Development Joint-Stock Company
Road 6, Tam Phuoc Industrial Park, Tam Phuoc Commune, Bien Hoa City, Dong Nai Province
2 Tin Nghia Petrol & Oil Joint-Stock Company
95A Cach Mang Thang Tam, Bien Hoa City, Dong Nai Province
3 Tin Nghia Logistics Joint-Stock Company (ICD Bien Hoa)
Km 01 + 900 National Highway 51, Long Binh Tan Ward, Bien Hoa City, Dong Nai Province
4 Tin Nghia - Phuong Dong Industrial Park Joint-Stock Company
National Highway 55, Phuoc Long Tho Commune, Dat Do District, Ba Ria Vung Tau Province
5 Tin Nghia Industrial Park Investment Limited Company
Nhon Trach IP III Office Building, Hiep Phuoc Commune, Nhon Trach District, Dong Nai Province
6 Nhon Trach Investment Joint-Stock Company
Road 7, East Saigon Town, Long Tan Commune, Nhon Trach District, Dong Nai Province
7 Tin Nghia - A Chau Joint-Stock Company
A2/377A Bui Huu Nghia, Tan Van Ward, Bien Hoa City, Dong Nai Province
8 Phu Huu Deport Corporation
Pham Van Dang, Phu Huu Commune, Nhon Trach District, Dong Nai Province
9 Japan’s SMEs Development Joint Stock Company
Nhon Trach 3 Industrial Park Phase 2, Hiep Phuoc Commune, Nhon Trach District, Dong Nai Province
10 Dongnai Import Export Processing Agricultural Products and Food Company (Donafoods)
647, National Highway 1, Long Binh Ward, Bien Hoa City, Dong Nai Province
11 Tin Nghia -Laos Joint-Stock Company
Ban Wat Luang, Pakse District, Champasak Province, Laos
12 Tin Nghia Petroleum Import Export Joint-Stock Company
96 Ha Huy Giap, Quyet Thang Ward, Bien Hoa City, Dong Nai Province
AFFILIATES
14
1 Thong Nhat Joint-Stock Company
Bau Xeo Industrial Park, Trang Bom District, Dong Nai Province
2 Phuoc Tan Trade & Construction Joint Stock Company
Group 25, Tan Mai 2 Hamlet, Phuoc Tan Ward, Bien Hoa City, Dong Nai Province
3 Tin Nghia Project Management Joint-Stock Company
01/C Phan Chu Trinh, Quang Vinh Ward, Bien Hoa City, Dong Nai Province
4 Scafe’ Joint Stock Company
173/390, Quarter 8, Long Binh Ward, Bien Hoa City, Dong Nai Province
5 Tin Nghia Professional Security Service Joint Stock Company
12 Phan Chu Trinh, Quang Vinh Ward, Bien Hoa City, Dong Nai Province
6 Tin Nghia Coffee Joint Stock Company
Road 1, Nhon Trach 3 IP, Phase 2, Hiep Phuoc Commune, Nhon Trach District, Dong Nai Province
ACCOMPANY WITH PROSPERITY
4. Tan Bien Market Management Board National Highway 1, Quarter 5, Tan Bien Ward, Bien Hoa City, Dong Nai Province Tel: (84 - 251) 3881 318 Fax: (84 - 251) 3882 280
6. Xuan Loc Reststop National Highway 1A, Xuan Hoa Commune, Xuan Loc District, Dong Nai Province Tel: (84 - 251) 3822 486 Fax: (84 - 251) 3823 747
5. Tan Phu Reststop 182A, National Highway 20, Phu Son Commune, Tan Phu District, Dong Nai Province Tel: (84 - 251) 3822 486 Fax: (84 - 251) 3823 747
7. Tin Nghia Representative Office in HCM City 9th Floor, Vietcombank Tower, 05 Cong Truong Me Linh Street, Ben Nghe Ward, District 01, HCM City Tel: (84 - 28) 7301 6266
Tel
Fax
Website
(84 - 251) 3512 063 (84 - 251) 3512 745 (84 - 251) 3512 295 (84 - 251) 3512 634
(84 - 251) 3512 479
tamphuocip@tinnghiacorp. com.vn
www.tinnghiaip.com.vn
(84 - 251) 3827 758 (84 - 251) 3843 646
(84 - 251) 3941 024
info@timexpetrol.com.vn
www.timexpetrol.com.vn
(84 - 251) 3831 576 (84 - 251) 3835 418 (84 - 251) 3835 506
(84 - 251) 3835 419
icdbienhoa@hcm.vnn.vn
www.icdbienhoa.com
(84 - 254) 3663 511
(84 - 254) 3663 499
tinnghiaphuongdong@tinnghiacorp.com.vn
(84 - 251) 3569 582
(84 - 251) 3569 584
-
-
(84 - 251) 3561 462 (84 - 251) 3561 463
(84 - 251) 3561 461
nic@dongsaigon.vn
www.dongsaigon.vn
(84 - 251) 8851 689
(84 - 251) 8851 690
info@tinnghiaachau.com.vn
www.centria.com.vn
(84 - 251) 3824 371
(84 - 251) 3829 467
-
-
(84 - 251) 3560 711
(84 - 251) 3560 712
info@jsc-vietnam.com
www.jsc-vietnam.com
(84 - 251) 3892 577
(84 - 251) 3892 578
info@donafoodsvietnam.com
www.donafoodsvietnam.com
031254138
-
info@tinnghiacorp.com.vn
-
(84 - 251) 3824 370
(84 - 251) 3829 467
-
-
(84 - 251) 3924 377 (84 - 251) 3924 690
(84 - 251) 3924 692
info@tinnghiacorp.com.vn
www.bauxeo.com.vn
(84 - 251) 8601 589 (84 - 251) 8601 899
(84 - 251) 3823 747
phuoctan18809@gmail.com
www.phutaco.com.vn
(84 - 251) 3842 399 (84 – 251) 3842 499
(84 - 251) 3842 289
-
www.tinnghiapm.com
(84 - 251) 3981 088
(84 – 251) 3981 128
scafetn@gmail.com
www.scafe.info
(84 - 251) 3842 478
(84 - 251) 3842 479
info@tinnghiasecurity.com.vn
www.tinnghiasecurity.com.vn
(84 - 251) 3842 370
(84 - 251) 3842 467
info@tinnghiacoffee.com.vn
www.tinnghiacoffee.com.vn ANNUAL REPORT 2018 www.tinnghiacorp.com.vn
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KEY HIGHLIGHT INDICATORS (2016 – 2018)
REVENUE (IN BIL. DONGS) 12,000
11,310
10,746 9,838
10,000
8,000
Revenue 2018
11,310
6,000
4,000
2,000
BIL. DONGS
2016
2017
2018
PROFIT (IN BIL. DONGS) 450
389
400
364.8
350 300
Profit 2018
364.8
250
248
200 150 100 50
BIL. DONGS
2016
16
ACCOMPANY WITH PROSPERITY
2017
2018
EXPORT TURNOVER (IN MIL. USD) 300 250
Export turnover 2018
181
220
181
200
130
150 100 50
MIL. USD
2016
2017
2018
TOTAL ASSET (IN BIL. DONGS) 9,962
10,000
10,408
8,897 8,000
Total asset 2018
10,408
6,000 4,000 2,000
BIL. DONGS
2016
2017
2018
1,041
1,011
2017
2018
STAFFING (PERSONS) 1,600
Staffing 2018
1,011
1,200
1,170
800
400
PERSONS
2016
ANNUAL REPORT 2018 www.tinnghiacorp.com.vn
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INTRODUCTION OF EXECUTIVE BOARD BOARD OF DIRECTORS
18
ACCOMPANY WITH PROSPERITY
Quach Van Duc B.O.D. Chairman
Le Huu Tinh B.O.D Vice Chairman
In October, 1990, Duc was appointed as Deputy Director of the Provincial Party’s Finance Administration Section and Director of Procesco Co., Ltd (former name of Tin Nghia Corporation at present). With experience and business capacity, Duc has built up a fast growing and stable Tin Nghia for 29 years, from an initial capital of merely 15 million VND with just 10 employees to a corporation ranked 124th of 500 largest enterprises in Vietnam in 2018. Prior to the Company Director, Duc had nearly 15 years working in the State Pricing Committee - Dong Nai Province. Duc also studied and attained an MBA from the United States.
Tinh had been involved since 1991 and assumed many positions, from Assistant to the General Director, Deputy Manager of General Operations Department, to Chief Accountant. From 2007, he has been appointed as Deputy General Director in charge of Finance - Accounting Auditing. Graduating from the University of Economics of Ho Chi Minh City in 1987, Tinh had worked at the Dong Nai Department of Statistics for 3 years and more than 5 years joining the governance of commercial bank. Tinh attained his Ph.D. in Accounting & Finance. Apart from the main works, he was invited to collaborate with a number of universities in Ho Chi Minh City to train postgraduate courses.
Huynh Bich Ngoc B.O.D Vice Chairman
Le Van Danh B.O.D. member
Thai Van Chuyen B.O.D member
At present, Ngoc is Senior Advisor of Board of Management of Thanh Thanh Cong Investment Joint-stock Company, Standing Vice Chairman of Sai Gon Real Estate Joint-stock Company, Chairman of Toan Hai Van Joint-stock Company, Senior Advisor of Board of Management of Thanh Thanh Cong – Bien Hoa Tay Ninh Joint-stock Company.
Danh graduated with a Master of Economics. He has joined Tin Nghia since October 2001. During this period Danh has held many positions such as Head of Sales Dept., Director of Tin Nghia’s Tourism & Trade Center; Director of Tin Nghia Petroleum Joint Stock Company; Director of Tin Nghia Agricultural Products Company, Ltd. Since early 2014, Danh worked at the Corporation head office serving as General Supervisor.
Chuyen is Executive Master of Business Administration (EMBA), Bachelor of Business Administration, Bachelor of Laws, he is currently General Director of Thanh Thanh Cong Investment Joint-stock Company.
24 Apr 2018, Ngoc appointed B.O.D Chairman.
was Vice
24 Apr 2018, Chuyen was appointed B.O.D member.
Since January, 2016, Danh was appointed the Deputy General Director of Tin Nghia Corporation. Danh has extensive experience in managing the petroleum business.
ANNUAL REPORT 2018 www.tinnghiacorp.com.vn
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INTRODUCTION OF EXECUTIVE BOARD THE COMPANY GOVERNANCE
Quach Van Duc General Director
Le Huu Tinh Deputy General Director
Le Van Danh Deputy General Director
(Please refer to “Board of Directors”)
(Please refer to “Board of Directors”)
(Please refer to “Board of Directors”)
Huynh Phu Kiet Deputy General Director Kiet graduated MBA and was member of the HCM City Architects. With 22 years of experience working in the field of architecture, 20 years in education, 14 years in the field of construction, 4 years engaged in commercial bank governance, Kiet has participated in various management positions from 1994 to date, such as Design Manager of HCM Association of Architects, Chairman of Le Quy Don School (Bien Hoa), Chairman of Trinh Hoai Duc School (Bien Hoa), Board member of Sacombank, Deputy Chairman – General Director of Sacomreals, Chairman of Toan Thinh Phat Education Corporation. At present, apart from being the Deputy General Director of Tin Nghia Corporation JSC, Kiet is also Chairman of Toan Thinh Phat Investment - Architecture - Construction Corporation.
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ACCOMPANY WITH PROSPERITY
Dang Thi Thanh Ha Deputy General Director
Nguyen Van Hong Deputy General Director
Nguyen Cao Nhon Deputy General Director
Ha took on the position of Deputy General Director since May 2015 in charge of Organization - Staff – Legal and Communications. She was engaged in Tin Nghia since 1995 with extensive experience in the field of foreign trade and logistics business. Given time at Tin Nghia Corporation, Ha has held many positions in Tin Nghia Logistics Joint-Stock Company such as Head of Marketing, Head of Import – Export Services, Deputy Director and Director.
Hong has joined Tin Nghia since 1993. He has been in charge of various positions, i.e. Trade Manager, Director of Tin Nghia Building Materials Company Limited; Deputy Director of Nhon Trach 3 IP Company., Ltd; Vice Director & Head of Tin Nghia Industrial Park Management, Director of Nhon Trach Investment Joint Stock Company.
Nhon assumed the Deputy General Director in January 2016. He joined Tin Nghia since 2002 and has extensive experience in the business of coffee and agricultural products.
In 2008, she graduated Master of Business Administration from the University of Wales in Singapore.
Since January, 2016 Hong was appointed Deputy General Director of Tin Nghia Corporation. Before working in Tin Nghia, Hong had worked for Donavik for many years. Hong graduated from Electronic Engineering.
At Tin Nghia Corporation, Nhon has held various positions ranging from Director of Tin Nghia Agro Products Company Limited, Assistant to the General Director, Director of Ong Keo IP Limited Company, Business Director. Nhon graduated with a Master of Business Administration.
ANNUAL REPORT 2018 www.tinnghiacorp.com.vn
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INTRODUCTION OF EXECUTIVE BOARD SUPERVISION COMMITTEE
22
Le Minh Chuong General Supervisor
Nguyen Van Trien Supervision Committee member
Tran Pham Viet Hoang Supervision Committee member
Chuong joined Tin Nghia since 2003 holding several management positions including Deputy Head of Tin Nghia PMU, Deputy Head of Accounting & Statistics Depatment, Deputy Director of Finance and Chief Accountant of Tin Nghia Corp. Currently, he serves as Director of Internal Audit of Tin Nghia Corporation. Chuong has a MBA and before serving Tin Nghia he has been a teacher and also sergeant at Arms & Ammunition School.
Trien is member of the Australian Certified Auditors. He experienced various management positions at different companies from 2000 to date including Chief Accountant of Phu Phu Manufacturing & Trading Company Limited, senior management accountant of Spartronics Vietnam Co., Ltd. (Sparton Group, USA), Chief Accountant of Saigon Thuong Tin Tan Thang Real Estate Investment JSC. He graduated with an Australian Master of accounting and is now Deputy Head of Finance Management Dept. at Thanh Thanh Cong Investment JSC.
Hoang graduated with a BA in Investment Finance & Economics in the Republic of Ukraine (2004 - 2009), Master of Finance in the United Kingdom (2011-2012). Joined Tin Nghia since 2009 at the Department of Finance and is currently Deputy Director of the Investment Department of Tin Nghia.
ACCOMPANY WITH PROSPERITY
He was appointed supervisor of the Corporation in May, 2016.
DURING 30 YEARS OF OPERATION, TIN NGHIA’S MULTI DISCIPLINARY BUSINESS MODEL WITH MORE THAN 20 SUBSIDIARIES, JOINT-VENTURE COMPANIES AND AFFILIATED UNITS, HAS A TURNOVER OF TENS OF THOUSANDS OF BILLION DONG AS WELL AS STEADY GROWTH RATE OVER THE YEARS. TIN NGHIA HAS BEEN IN THE LIST OF TOP 200 LARGEST ENTERPRISES IN VIETNAM FOR MANY YEARS.
ANNUAL REPORT 2018 www.tinnghiacorp.com.vn
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THE 2018 BUSINESS OPERATION RESULTS WITH PLAN FOR 2019
The financial situation was stable whereby ensuring equity preservation and growth with debt-to-equity ratio in safe levels. Good fulfillment of tax payment obligations. The material and spiritual life for employees was ensured. Well performance of corporate responsibilities to the community and society.
The 2018 BUSINESS OPERATION RESULTS
ADVANTAGES AND DISADVANTAGES AFFECTING THE BUSINESS OPERATION IN 2018
ADVANTAGES
DIFFICULTIES
1
Strong administrative reforms, investment environment, macro economy and stable domestic security and politics created the best conditions to attract foreign investment to industrial parks and real estate projects.
2
The implementation of site clearance and compensation for Long Thanh airport, together with the policy of implementing Cat Lai bridge project and the plan for investment in inter-port roads in Ong Keo and Nhon Trach ... did all create favorable conditions to attract investors for Nhon Trach and Long Thanh districts.
1
The trade tension between the US and China had impact on the global trade and investment, while financial markets and global currency did affect the commodity markets and world commodity prices. Steel prices, feed material prices have continuously decreased since the beginning of the year and fluctuated with a large margin.
2
The European region, a market for traditional coffee consumption, did encounter many economic and political changes and coffee consumption has therefor decreased. Domestic coffee prices still were higher than export prices.
3
The livestock industry and steel industry faced difficulties in consumption with strong competitiion, which caused slow consumption and greatly affected the import business of the Corporation.
4
A year of difficulty for those business enterprises who had been developing their projects, causing a delay in the implementation of investment projects. Most obviously, land compensation cost, rising real estate prices and legal and administrative procedures for businesses were still complicated.
ANNUAL REPORT 2018 www.tinnghiacorp.com.vn
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THE 2018 BUSINESS OPERATION RESULTS WITH PLAN FOR 2019
THE 2018 BUSINESS OPERATION RESULTS BUSINESS OPERATION Item
UNIT
2018 Shareholder’Meeting Resolution targets
2018 Implementation
vs resolution
Total revenue
In mil. dongs
6,500,000
6,216,453
95.63%
After tax profit
In mil. dongs
220,000
332,195
150.99%
Dividend
%
10
The corporation’s 2018 revenue boast
6,216.4
BILLION VND
or 95.63% of plan, or 106.04% y-o-y.
Total after-tax profit of 2018 was
332.19
BILLION VND
or 150.99% of plan, or 91.83% y-o-y.
The 2018 results mainly came from coffee export business, industrial estate infrastructure operation and financial investment activities.
26
ACCOMPANY WITH PROSPERITY
COFFEE EXPORT BUSINESS
IMPORT BUSINESS
The exported coffee recorded 108,399 tons or 99.8% of plan, up 68.01% y-o-y. Coffee export turnover came at 181,405,786 USD or 83.98% of plan, up 36.70% y-o-y.
Import turnover for the whole year recorded USD 13,478,543 or 45.05% over the same period, of which steel import was USD 11,879,903.28, import of feed ingredients was USD 1,155,450. The main reason thereof is difficulties in the livestock industry and steel business, where the demand thereof has declined. In 2018, consumption of feed ingredients was 26,586 tons, or 21.02% of plan or 23.8% over the same period. Steel sold in 2018 was 23,271 tons, or 46.5% of plan, or 69.5% over the same period.
INDUSTRIAL ESTATES INFRASTRUCTURE DEVELOPMENT Revenue from leasing infrastructure and industrial park services came VND 121 billion, profit of VND 81 billion.
INVESTMENT RETURNS IN SUBSIDIARIES AND AFFILIATES In 2018, the profit from financial investments in subsidiaries and affiliates was VND 220 billion.
ANNUAL REPORT 2018 www.tinnghiacorp.com.vn
27
THE 2018 BUSINESS OPERATION RESULTS WITH PLAN FOR 2019
DEVELOPMENT AND INVESTMENT ACTIVITIES
In 2018, the Corporation continued to speed up the construction of roads in Ong Keo IP, An Phuoc IP, carried out compensation for land, takeover of petrol stations and implementation of legal procedures for the corporation’s investment projects in 2018.
Total investment cost implemented in 2018
467.553
BILLION VND
of which: infrastructure investment: VND 187,171 billion or 7.07% of plan; Land compensation: VND 190,446 billion.
28
ACCOMPANY WITH PROSPERITY
The compensation and clearance of project lands of the corporation faced difficulty with very slow progress. In 2018, the amount of project land compensation came at VND 190,446 billion, mainly spent for Ong Keo Industrial Park (VND 116.95 billion), Petroleum Depot - Phase 2 (VND 15.404 billion), Dai Phuoc Urban Tourism Estate (VND 12.799 billion), 6D Industrial Park (VND 20.124 billion), An Phuoc IP (VND 4.079 billion) and other petrol stations. Total compensation land area so far in Ong Keo IP is 326.73 ha of 602 ha. For other projects, compensation land area was low in comparison with the total project area.
FINANCIAL ACTIVITIES
GENERAL ASSESSMENT
In 2018, funds for coffee export and import business was secured, while cash flows were well balanced to pay debts on time.
In 2018, despite difficulties and challenges in the business operation, i.e. the imports of animal feeds and steel with declined revenue over the same period, the corporation did basically achieve the those targets set under the Resolution of the 2018 Annual General Meeting of Shareholders.
As of December 31, 2018, total bank loans came at VND 1,092 billion, total loans in the year was VND 5,104 billion. Total assets of the corporation reached 7,310 billion, up 2.03% compared to the beginning of the year. Owner’s equity as of December 31, 2018 recorded VND 2,532 billion.
The financial situation was stable whereby ensuring equity preservation and growth with debt-to-equity ratio in safe levels. Good fulfillment of tax payment obligations. The material and spiritual life for employees was ensured. Well performance of corporate responsibilities to the community and society. The activities of the Corporation went in compliance with the Charter and internal regulations of the Corporation. Tin Nghia Corporation was awarded by the Ministry of Industry and Trade with the 2018 National Brand and selected by VCCI as Vietnam’s Sustainable Enterprise Brand of 2018.
ANNUAL REPORT 2018 www.tinnghiacorp.com.vn
29
THE 2018 BUSINESS OPERATION RESULTS WITH PLAN FOR 2019
Plan FOR 2019
OVERVIEW In 2019, the world and the region is forecast to still run volatile and unfavorable. The world economy may grow slowly with potential risks due to tight monetary policy, the decline in debt payment capacity, along with the trade tension between the US and China.
30
ACCOMPANY WITH PROSPERITY
In 2019 Vietnam will enjoy advantage of positive signs from the macro economy. However, with great openness along with the deepening process of international economic integration; yet-tocome-on-end tension of trade war between countries or the major economies combined with risk factors in geopolitics, the tendency of domestic trade protection, supply and demand situation, price, production chains in the region and the world ... they will all significantly affect Vietnam’s economy.
THE 2019 PLAN Based on the 2018 operation and the 2019 identification as above, the corporation set out the 2019 plan as follows:
1.
Key targets Targets
UNIT
2018 Operation
2019 Plan
2019/2018 (%)
Total revenue
Mil. dongs
6,216,453
6,000,000
96.51%
After tax profit
Mil. dongs
332,195
300,000
90.30%
10 - 12
100.0%
Dividend
%
6,000
300
BILLION VND Total revenue in 2019
2.
BILLION VND After tax profit in 2019
Development and Investment activities Continue the development of infrastructure of Ong Keo and An Phuoc IPs, consider expansion of the existing IPs and seek development of new IPs in other localities.
Develop a network of gas stations to achieve the set strategic targets by 2020.
Carry out investment procedures to prepare for construction of the Petroleum depot and petroleum terminals (Phase 1) in Phu Huu and Nhon Trach. Continue to implement the compensation agreement for those projects of phase 2 (14.15ha).
Carry out investment procedures for Dai Phuoc Tourist Urban Area Project.
Carry out procedures to approve investment policies, prepare and submit detailed planning appraisal of 1/500, EIA approval, basic design, construction drawing design of the Phu Huu General Port project.
ANNUAL REPORT 2018 www.tinnghiacorp.com.vn
31
THE 2018 BUSINESS OPERATION RESULTS WITH PLAN FOR 2019 SOLUTIONS FOR 2019 BUSINESS OPERATION
FOR COFFEE EXPORTS Promote coffee business in Lam Dong area. Carry out sales of high-quality coffee, whereby facilitating Bao Loc Branch for its producing operation and increasing the value of exported green coffee. Continue to develop sustainable coffee development in accordance with 4C and UTZ standards. Complete the process involving the certification of food safety and hygiene with traceability to ensure eligibility for coffee export to the US and European markets. Strictly control, reduce operating costs ranging from input quality, storage loss, interest expense to managing the process of goods import and export and the use of financial instruments.
FOR GENERAL TRADINGS Expand new items to increase sales. Strengthen personnels specialized in in the business of animal feeds and market analysis. Strictly control the debt management in trading. Complete the business process to ensure the pro-activeness of the general trading department. Carry out business support services (warehouse, yard, transportation, insurance ....) in a fast and convenient manner and strictly control sale costs.
32
ACCOMPANY WITH PROSPERITY
FOR INDUSTRIAL ESTATE DEVELOPMENT Continue to survey lands available for the development of new industrial parks (IPs). Maintain and ensure those support services for investors, e.g. legal procedures (support for investment certification, LURCs, Tax codes, seals ...), provide consulting and environmental services. Pay attention to implementing customer care policy: meeting customers more regularly so as to obtain their feedbacks to create favorable conditions for customers, thereby bringing other potential investors to the IP through existing customers.
FOR FINANCIAL INVESTMENT Carry out financial investment activities, M&A, real estate trades to, along with other business sectors, contribute to the aggregate business efficiency. Via the capital representative, develop proper directions to improve the efficiency of financial investment in subsidiaries and affiliates, directing member companies to expand business scale, save costs and ensure business efficiency compared to 2018.
ANNUAL REPORT 2018 www.tinnghiacorp.com.vn
33
THE 2018 BUSINESS OPERATION RESULTS WITH PLAN FOR 2019
DEVELOPMENT AND INVESTMENT
• Concentrate the human resources with expertise and experience to continue the investment and construction procedures according to regulations and on schedule. Implementation of investment and land procedures, construction of key projects such as petroleum depots and dedicated berths thereof, Quang Vinh Residential Estate, Xuan Loc Car’s Registry Center, General Port, Hiep Phuoc Service Center, Dai Phuoc Tourist Urban Estate, Petrol Stations ... • Regularly review and supervise relevant units to closely coordinate in supervising investors, project management consultants and other relevant construction consultancy procedures. Engage professional and reputable consultants to carry out construction procedures, shorten implementation time, ensure quality of work and comply with the provisions of law. • Contact partners, consultancy units, banks, relevant authorities to find information, expand investment opportunities for projects of debt handling and slow implementation nature.
FINANCE
• Carry out corporate bond issuance plan to implement projects. • Expand relationships and borrowing limits with credit institutions to meet working capital for trading activities. • Completely handle bad debts of late recovery. Continue to transfer and liquidate assets under the equitization plan and according to the Resolution of the Board of Directors.
ADMINISTRATION
• Regularly improve internal processes, continue to build roadmap to apply modern information technology to all the business fields with relevant departments. • Implement the restructuring of organizational structure and personnel of the Corporation toward the paradigm of Parent Company - Subsidiary Company.
34
ACCOMPANY WITH PROSPERITY
HUMAN RESOURCE • Continue to improve the organizational structure to match the development of the Corporation, thereby maximizing the resources of the functional departments. • Regularly pay attention to building ethical, cultural and able staff, strengthen the management apparatus, thereby meeting the actual operation requirements and developments of the Corporation. Add good human resources to the management apparatus of the Corporation. Recruit managerial positions for the domains of real estate, finance, Investment management, risk management, architects.
PUBLIC RELATION AND MARKETING
• Carry out short-term training courses to regularly update new knowledge, improve professional skills so as to be applied immediately to the daily work, and at the same time, organize training courses and professional training for corporate staff to improve management skills. • Continue to improve the KPIs system for assessing staff. Carry out rational staffing policy with flexible application of internal rotation policies. Implement salary and bonus policies based on the KPI assessment system in accordance with the labor results and business operational efficiency, develop adequate salary and remuneration regimes for good personnel. • Prepare for events under the program on celebrating the 30th anniversary of the Corporation (September 7, 1989 - September 7, 2019). • Develop promotion programs calling for investment in accordance with the objectives and developments of the Corporation. • Selectively participate in prestigious national awards to enhance the brand value of Tin Nghia Corporation. Pay special attention on building and developing the organizational culture, corporate culture.
ANNUAL REPORT 2018 www.tinnghiacorp.com.vn
35
TYPICAL PROJECTS
AN PHUOC INDUSTRIAL PARK
Scale (Hectares)
Estimated investment captital (billion VND)
200.85
631.63
ONG KEO INDUSTRIAL PARK
Location: In Long Thanh district of Dong Nai province, 7km from Long Thanh - Dau Giay expressway, 28km from HCM city, 8km from Long Thanh International Airport, near ports such as: Phu Huu (20km), Cai Mep (45km), Phu My (40km).
Scale (Hectares)
823.45 Estimated investment captital (billion VND)
1,770 Location: In Nhon Trach district of Dong Nai province, along Long Tau river and Dong Tranh river, 17km from HCM city, 20km from Tan Son Nhat International Airport, 55km from Vung Tau city, favourable in waterway transport (12km from Cat Lai port, 25km from Go Dau-Thi Vai port). 36
ACCOMPANY WITH PROSPERITY
TIN NGHIA GENERAL PORT Scale (Hectares)
40.58 Estimated investment captital (billion VND)
2,000 Location: In Phu Huu commune, Nhon Trach district of Dong Nai province. 22km from HCM city, 39km from Bien Hoa city.
PHU HUU PETROLEUM DEPOT – PHASE 1 Scale (Hectares)
20 Estimated investment captital (billion VND)
1,064 Location: In Phu Huu commune, Nhon Trach district of Dong Nai province. 22km from HCM city, 39km from Bien Hoa city. ANNUAL REPORT 2018 www.tinnghiacorp.com.vn
37
TYPICAL PROJECTS
DAI PHUOC TOURISM & URBAN AREA Scale (Hectares)
130.75 Estimated investment captital (billion VND)
2,000 Location: In Dai Phuoc commune, Nhon Trach district of Dong Nai province. 8km from Thu Thiem of HCM city, 3km from the East Saigon New City, 20km from Long Thanh International Airport.
HIEP PHUOC SERVICE COMPLEX Scale (Hectares)
51 Estimated investment captital (billion VND)
4,990 Location: In Hiep Phuoc commune, Nhon Trach district of Dong Nai province. 5km from Bien Hoa – Vung Tau expressway. 38
ACCOMPANY WITH PROSPERITY
TO BECOME ONE OF THE MOST ADMIRED COMPANIES IN VIETNAM VIA THE AGGRESSIVE MULTI-INDUSTRIES DEVELOPMENT AND COMPETITIVE DIVERSIFICATION ON DOMESTIC AND INTERNATIONAL MARKETS; THUS, TO MAXIMIZE TIN NGHIA’S CONTRIBUTION TO THE COMMUNITY AND SOCIETY.
ANNUAL REPORT 2018 www.tinnghiacorp.com.vn
39
CORPORATE SOCIAL RESPONSIBILITY
On the journey to success, regardless of any circumstances, Tin Nghia Corporation always takes special attention to the responsibility toward community and society.
120
billions
From 2010 up to now, the total amount is nearly dong Over the year of 2018, Tin Nghia has donated more than 6 billion dongs totally.
B
uilding charity houses, bridges, visiting poor, disable people, orphanage, blind association in the province, supporting flood, agent orange victims, fundraising for Poverty Alleviation Fund, Dong Nai scholarship, Learning good – Living good program, Sponsorship program for poor children, holding blood donation, humanitarian eye surgery, co-operating to hold “Give hands to the future generations” program, etc. have been some typical activities of our company for several years.
40
ACCOMPANY WITH PROSPERITY
Over the year of 2018, Tin Nghia has donated more than 6 billion dongs totally, and from 2010 up to now, the total amount is nearly 120 billions dong. In the future, Tin Nghia will continue to carry out these meaningful and practical humanitarian activities so that the Vietnamese tradition of “good leaves covering torn leaves” will be always preserved and promoted.
ANNUAL REPORT 2018 www.tinnghiacorp.com.vn
41
42
ACCOMPANY WITH PROSPERITY
TIN NGHIA CORPORATION
SEPARATE FINANCIAL STATEMENTS For the fiscal year ended 31st December 2018
Audited by PwC (Vietnam) Limited
ANNUAL REPORT 2018 www.tinnghiacorp.com.vn
43
CORPORATE INFORMATION
Enterprise registration certificate
No. 3600283394 dated 3 November 2004 was initially issued by the Department of Planning and Investment of Dong Nai Province and the 19th amendment dated 1 August 2018.
Board of Management
Mr Quach Van Duc
Chairman
Mrs Huynh Bich Ngoc
Vice Chairman (from 30 May 2018)
Mr Le Huu Tinh
Vice Chairman
Mr Huynh Phu Kiet
Vice Chairman (until 5 April 2018)
Mr Le Van Danh
Member
Mrs Nguyen Hai Tam
Member (until 5 April 2018)
Mr Thai Van Chuyen
Member (from 20 April 2018)
Mr Le Minh Chuong
Head
Mr Tran Pham Viet Hoang
Member
Mr Nguyen Van Trien
Member
Mr Quach Van Duc
General Director
Mr Le Huu Tinh
Deputy General Director
Mr Huynh Phu Kiet
Deputy General Director
Mr Nguyen Van Hong
Deputy General Director
Mr Nguyen Cao Nhon
Deputy General Director
Mr Le Van Danh
Deputy General Director
Ms Dang Thi Thanh Ha
Deputy General Director
Legal representative
Mr Quach Van Duc
General Director cum Chairman
Registered office
96 Ha Huy Giap Street, Quyet Thang Ward Bien Hoa City, Dong Nai Province, Vietnam
Auditor
PwC (Vietnam) Limited
Board of Supervision
Board of Directors
44
ACCOMPANY WITH PROSPERITY
STATEMENT OF RESPONSIBILITY OF THE BOARD OF DIRECTORS IN RESPECT OF THE SEPARATE FINANCIAL STATEMENTS The Board of Directors of Tin Nghia Corporation (“the Company”) is responsible for preparing the separate financial statements of the Company which give a true and fair view of the financial position of the Company as at 31 December 2018, and the results of its operations and its cash flows for the year then ended. In preparing these separate financial statements, the Board of Directors is required to:
• select suitable accounting policies and then apply them consistently; • make judgements and estimates that are reasonable and prudent; and • prepare the separate financial statements on a going concern basis unless it is inappropriate to presume that the Company will continue in business.
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 which enable separate financial statements to be prepared which comply with the basis of accounting set out in Note 2 to the separate financial statements. The Board of Directors 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. APPROVAL OF THE SEPARATE FINANCIAL STATEMENTS We hereby approve the accompanying separate financial statements as set out on pages 48 to 101 which give a true and fair view of the financial position of the Company as at 31 December 2018 and the results of its operations and its cash flows for the year then ended in accordance with Vietnamese Accounting Standards, the Vietnamese Corporate Accounting System and applicable regulations on preparation and presentation of separate financial statements. Users of these separate financial statements of the Company should read them together with the consolidated financial statements of the Company and its subsidiaries (together, “the Group”) for the year ended 31 December 2018 in order to obtain full information of the financial position and results of operations and cash flows of the Group. For and on behalf of the Board of Directors
Quach Van Duc General Director Dong Nai Province, SR Vietnam 9 April 2019
ANNUAL REPORT 2018 www.tinnghiacorp.com.vn
45
INDEPENDENT AUDITOR’S REPORT TO THE SHAREHOLDERS OF TIN NGHIA CORPORATION
INDEPENDENT AUDITOR’S REPORT TO THE SHAREHOLDERS OF TIN NGHIA CORPORATION We have audited the accompanying separate financial statements of Tin Nghia Corporation (“the Company”) which were prepared on 31 December 2018 and approved by the Board of Directors on 9 April 2019. The separate financial statements comprise the separate balance sheet as at 31 December 2018, the separate income statement and the separate cash flow statement for the year then ended, and explanatory notes to the separate financial statements including significant accounting policies, as set out on pages 53 to 101. The Board of Directors’ Responsibility The Board of Directors is responsible for the preparation and the true and fair presentation of these separate financial statements in accordance with Vietnamese Accounting Standards, the Vietnamese Corporate Accounting System and applicable regulations on preparation and presentation of separate financial statements and for such internal control which the Board of Directors determines necessary to enable the preparation and fair presentation of separate financial statements that are free from material misstatement, whether due to fraud or error. Auditor’s Responsibility Our responsibility is to express an opinion on the separate 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 standards and requirements and plan and perform the audit in order to obtain reasonable assurance as to whether the separate financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the separate financial statements. The procedures selected depend on the auditor’s judgment, including an assessment of the risks of material misstatement of the separate financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the Company’s preparation and true and fair presentation of the separate 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 Company’s internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by the Board of Directors, as well as evaluating the overall presentation of the separate financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.
46
ACCOMPANY WITH PROSPERITY
Auditor’s Opinion In our opinion, the separate financial statements present fairly, in all material respects, the separate financial position of the Company as at 31 December 2018, its separate financial performance and separate cash flows for the year then ended in accordance with Vietnamese Accounting Standards, the Vietnamese Corporate Accounting System and applicable regulations on the preparation and presentation of separate financial statements. Other Matters The separate financial statements of the Company for the year ended 31 December 2017 were audited by another auditor who expressed an unmodified opinion on those statements on 5 April 2018. The independent auditor’s report is prepared in Vietnamese and English. Should there be any conflict between the Vietnamese and English copies, the Vietnamese copy shall take precedence. For and on behalf of PwC (Vietnam) Limited
Mai Viet Hung Tran
Le Quang Dao
Audit Practising Licence No. Audit Practising Licence No. 0048-2018-006-1 2845-2019-006-1 Authorised signatory
Report reference number: HCM8305 Ho Chi Minh City, 9 April 2019
ANNUAL REPORT 2018 www.tinnghiacorp.com.vn
47
SEPARATE BALANCE SHEET
Form B 01 – DN
For the fiscal year ended 31st December 2018
As at 31st December Code ASSETS
Note
2018 VND
2017 VND (As reclassified Note 40)
100
CURRENT ASSETS
110
Cash and cash equivalents
111
Cash
112
Cash equivalents
120
Short-term investments
2,016,637,393,391
135,252,104,621
362,634,953,883
128,015,646,539
70,627,633,883
7,236,458,082
292,007,320,000
130,929,298,786
206,207,661,800
121
Trading securities
4(a)
6,616,661,800
6,616,661,800
123
Investments held to maturity
4(b)
124,312,636,986
199,591,000,000
602,395,972,218
814,848,859,129
268,944,104,328
398,772,785,453
130
Short-term receivables
131
Short-term trade accounts receivable
5(a)
132
Short-term prepayments to suppliers
6
65,038,951,743
103,650,271,680
135
Short-term lending
7(a)
89,498,081,401
255,998,081,401
136
Other short-term receivables
8(a)
269,182,240,078
72,989,062,562
137
Provision for doubtful debts – short term
9
(90,267,405,332)
(16,561,341,967)
10
502,512,680,783
622,352,371,671
140
Inventories
141
Inventories
514,393,020,769
641,450,750,848
149
Provision for decline in value of inventories
(11,880,339,986)
(19,098,379,177)
11,246,468,148
10,593,546,908
7,840,116,911
5,628,306,484
2,892,345,192
1,686,942,470
514,006,045
3,278,297,954
150
48
3
1,382,336,524,556
Other current assets
151
Short-term prepaid expenses
152
Value Added Tax to be reclaimed
153
Other taxes receivable
ACCOMPANY WITH PROSPERITY
16(b)
The notes on pages 53 to 101 are an integral part of these separate financial statements.
As at 31st December Code
ASSETS (continued)
2018 VND
Note
2017 VND (As reclassified Note 40)
200
LONG-TERM ASSETS
210
Long-term receivables
5,927,421,241,664
5,147,585,873,760
843,076,090,011
881,286,351,047
211
Long-term accounts receivable
5(b)
10,450,000,000
133,956,159,571
215
Long-term lending
7(b)
625,384,488,474
566,119,154,399
216
Other long-term receivables
8(b)
207,241,601,537
181,354,443,827
219
Provision for doubtful debts – long term
-
(143,406,750)
202,945,610,002
208,101,678,615
160,624,599,396
159,911,363,533
313,517,326,501
314,176,140,157
(152,892,727,105)
(154,264,776,624)
42,321,010,606
48,190,315,082
45,750,296,904
51,041,853,041
(3,429,286,298)
(2,851,537,959)
576,250,814,027
509,688,537,704
925,656,193,158
701,545,672,533
220 221
Fixed assets Tangible fixed assets
222
Historical cost
223
Accumulated depreciation
227
Intangible fixed assets
228
Historical cost
229
Accumulated amortisation
230
Investment properties
12(a)
12(b)
13
231
Historical cost
232
Accumulated depreciation
(349,405,379,131)
(191,857,134,829)
240
Long-term asset in progress
1,434,535,661,423
1,201,777,245,120
242
Construction in progress
14
1,434,535,661,423
1,201,777,245,120
4(c)
2,649,819,554,143
2,218,434,203,395
2,589,473,582,782
2,105,547,485,857
250
Long-term investments
251
Investments in subsidiaries
252
Investments in associates
117,368,661,156
157,993,778,347
253
Investments in other entities
39,750,823,269
39,080,823,269
254
Provision for long-term investments
(96,773,513,064)
(84,187,884,078)
220,793,512,058
128,297,857,879
220,793,512,058
128,297,857,879
7,309,757,766,220
7,164,223,267,151
260 261 270
Other long-term asset Long-term prepaid expenses TOTAL ASSETS
11
The notes on pages 53 to 101 are an integral part of these separate financial statements.
ANNUAL REPORT 2018 www.tinnghiacorp.com.vn
49
SEPARATE BALANCE SHEET
Form B 01 – DN
For the fiscal year ended 31st December 2018 (continued)
As at 31st December Code
RESOURCES
Note
2018 VND
2017 VND (As reclassified Note 40)
300
LIABILITIES
4,777,516,179,831
5,235,829,990,591
310
Short-term liabilities
1,290,871,187,722
2,218,216,882,451
167,525,115,482
134,181,814,259
1,793,639,541
27,644,366,094
23,872,519,488
3,852,061,261
15,805,401,081
18,335,498,057
311
Short-term trade accounts payable
312
Short-term advances from customers
313
Tax and other payables to the State Budget
314
Payable to employees
315
Short-term accrued expenses
17
24,636,512,901
29,732,289,009
318
Short-term unearned revenue
18
92,254,356,837
35,840,533,652
319
Other short-term payables
19(a)
68,442,544,924
87,202,135,733
320
Short-term borrowings
20(a)
880,477,977,536
1,875,074,694,482
322
Bonus and welfare fund
16,063,119,932
6,353,489,904
3,486,644,992,109
3,017,613,108,140
2,979,198,190,319
1,000,831,243,642
330
16(a)
Long-term liabilities
336
Long-term unearned revenue
337
Other long-term payables
19(b)
84,921,479,088
1,589,126,081,788
338
Long-term borrowings
20(b)
353,669,894,016
363,868,408,063
341
Deferred income tax liabilities
21
62,049,837,306
63,787,374,647
342
Provision for long-term liabilities
6,805,591,380
-
2,532,241,586,389
1,928,393,276,560
400
50
15
OWNERS’ EQUITY
ACCOMPANY WITH PROSPERITY
18
The notes on pages 53 to 101 are an integral part of these separate financial statements.
As at 31st December Code
RESOURCES (continued)
2018 VND
Note
2017 VND (As reclassified Note 40)
410 411 411a
Capital and reserves Owners’ capital
22, 23
- Ordinary shares with voting rights
2,532,241,586,389
1,928,393,276,560
2,000,000,000,000
1,558,000,000,000
2,000,000,000,000
1,558,000,000,000
412
Share premium
23
5,634,952,321
5,634,952,321
418
Investment and development fund
23
19,979,084,214
1,892,231,181
421
Undistributed earnings
23
506,627,549,854
362,866,093,058
421a
- Undistributed post-tax profits of previous years
174,432,889,997
-
421b
- Post-tax profit of current year
332,194,659,857
362,866,093,058
7,309,757,766,220
7,164,223,267,151
440
TOTAL RESOURCES
Duong Thi Minh Hong Nguyen Thi Thuy Van Quach Van Duc Preparer Chief Accountant General Director 9 April 2019
The notes on pages 53 to 101 are an integral part of these separate financial statements.
ANNUAL REPORT 2018 www.tinnghiacorp.com.vn
51
SEPARATE INCOME STATEMENT
Form B 02 – DN
For the fiscal year ended 31st December 2018
Code 01 02
Year ended 31st December
Note Revenue from sales of goods and rendering of services Less deductions
2018 VND
2017 VND
5,592,972,296,902
5,287,873,609,441
(55,441,897)
(107,285,041)
10
Net revenue from sales of goods and rendering of services
26
5,592,916,855,005
5,287,766,324,400
11
Cost of goods sold and services rendered
27
(5,444,183,351,438)
(5,173,257,817,957)
20
Gross profit from sales of goods and rendering of services
148,733,503,567
114,508,506,443
21
Financial income
28
353,134,760,911
560,537,216,537
22
Financial expenses
29
(144,282,112,312)
(168,663,401,427)
29
(76,114,317,198)
(104,890,514,787)
23
- Including: Interest expense
25
Selling expenses
30
(74,397,478,455)
(58,060,715,410)
26
General and administration expenses
31
(188,711,682,185)
(92,809,852,865)
94,476,991,526
355,511,753,278
30
Net operating profit
31
Other income
270,401,616,995
14,057,062,083
32
Other expenses
(8,885,862,889)
(4,817,540,119)
40
Net other income
261,515,754,106
9,239,521,964
50
Net accounting profit before tax
355,992,745,632
364,751,275,242
51
Business income tax - current
(25,535,623,116)
(4,760,594,881)
52
Business income tax - deferred
1,737,537,341
1,737,537,341
60
Net profit after tax
32
34 21, 34
332,194,659,857
361,728,217,702
Duong Thi Minh Hong Nguyen Thi Thuy Van Quach Van Duc Preparer Chief Accountant General Director 9 April 2019
52
ACCOMPANY WITH PROSPERITY
The notes on pages 53 to 101 are an integral part of these separate financial statements.
SEPARATE CASH FLOW STATEMENT Form B 03 – DN
For the fiscal year ended 31st December 2018 (Indirect method)
Year ended 31st December Code
Note
2018 VND
2017 VND
355,992,745,632
364,751,275,242
CASH FLOWS FROM OPERATING ACTIVITIES 01
Net accounting profit before tax Adjustments for:
02
Depreciation and amortisation
50,863,336,662
25,533,977,710
03
Provisions
85,735,837,790
71,510,206,190
04
Unrealised foreign exchange (gains)/ losses
(54,481,178)
651,833,177
05
Profits from investing activities
(320,316,318,062)
(533,550,519,818)
06
Interest expense
76,114,317,198
104,890,514,787
248,335,438,042
33,787,287,288
08
Operating profit before changes in working capital
09
Decrease/(increase) in receivables
154,099,136,688
(54,206,966,425)
10
Decrease/(increase) in inventories
127,057,730,079
(173,707,936,294)
11
Increase in payables
441,967,027,085
410,467,943,459
12
Increase in prepaid expenses
(42,167,917,088)
(25,478,159,008)
13
Decrease in trading securities
-
1,296,850,000
14
Interest paid
(92,080,412,576)
(109,884,342,774)
15
Business income tax paid
(1,919,730,163)
(5,745,467,571)
17
Other payments on operating activities
(1,936,720,000)
(4,436,275,400)
20
Net cash inflows from operating activities
833,354,552,067
72,092,933,275
(381,694,629,393)
(333,177,830,434)
3,740,909,090
4,603,255,344
(197,032,636,986)
(348,547,816,355)
379,545,665,925
2,272,184,287
(286,306,179,000)
(427,940,425,516)
-
455,473,950,292
51,062,013,203
67,194,169,155
(430,684,857,161)
(580,122,513,227)
CASH FLOWS FROM INVESTING ACTIVITIES 21
Purchases of fixed assets
22
Proceeds from disposals of fixed assets
23
Loans granted and term deposits
24
Collection of loans and term deposits
25
Investments in other entities
26
Proceeds from divestment in other entities
27
Dividends and interest received
30
Net cash outflows from investing activities
The notes on pages 53 to 101 are an integral part of these separate financial statements.
ANNUAL REPORT 2018 www.tinnghiacorp.com.vn
53
SEPARATE CASH FLOW STATEMENT For the fiscal year ended 31st December 2018 (Indirect method) (continued)
Form B 03 – DN
Year ended 31st December Code
Note
2018 VND
2017 VND
442,000,000,000
40,937,302,880
CASH FLOWS FROM FINANCING ACTIVITIES 31
Proceeds from shares issuance
33
Proceeds from borrowings
5,256,770,329,495
5,609,148,581,203
34
Repayments of borrowings
(6,164,019,833,384)
(5,198,503,483,946)
36
Dividends paid
(164,484,220,000)
(100,309,020,000)
40
Net cash (outflows)/inflows from financing activities
(629,733,723,889)
351,273,380,137
50
Net decrease in cash and cash equivalents
(227,064,028,983)
(156,756,199,815)
60
Cash and cash equivalents at beginning of year
362,634,953,883
519,408,426,692
(318,820,279)
(17,272,994)
135,252,104,621
362,634,953,883
61
Effect of foreign exchange differences
70
Cash and cash equivalents at end of year
3
3
Major non-cash transactions in the year were disclosed in Note 36.
Duong Thi Minh Hong Nguyen Thi Thuy Van Quach Van Duc Preparer Chief Accountant General Director 9 April 2019
54
ACCOMPANY WITH PROSPERITY
The notes on pages 53 to 101 are an integral part of these separate financial statements.
Form B 09 – DN
1
NOTES TO THE SEPARATE FINANCIAL STATEMENT For the fiscal year ended 31st December 2018
GENERAL INFORMATION Tin Nghia Corporation (“the Company”) is a joint stock company established through the equitisation of Tin Nghia One Member Limited Liability Company, a state-owned enterprise established in accordance with the Decision No.1828/QD.UBT dated 6 August 1994 and Decision on transformation of enterprises No. 431QĐ/TU dated 19 October 2004 isssued by the Party Committee of Dong Nai Province. The Company was granted the initial Enterprise registration certificate No. 3600283394 dated 3 November 2004 by the Department of Planning and Investment of Dong Nai Province and the 19th amendment dated 1 August 2018. The Company was approved to be listed on Hanoi Stock Exchange with trading code “TID” in accordance with Decision No. 694-QD/SGDHN issued by the Hanoi Stock Exchange on 31 October 2018. The principal activities of the Company are investing and doing business in infrastructures of industrial parks; producing, processing and exporting of coffee and other agricultural products, trading petroleum and gas, and providing logistic services. The normal business cycle of the Company is within 12 months. As at 31 December 2018, the Company had 209 employees (as at 31 December 2017: 185 employees). The Company had registered office at 96 Ha Huy Giap Street, Quyet Thang Ward, Bien Hoa City, Dong Nai Province, Vietnam. In addition, the Company had 6 branches and 2 representative offices (as at 31 December 2017: 6 branches and 1 representative office) as below: • Management Board of Tin Nghia Industrial Parks - Branch of Tin Nghia Corporation located at 25B Street, Nhon Trach 3 Industrial Park, Hiep Phuoc Ward, Nhon Trach District, Dong Nai Province, Vietnam; • Tin Nghia Corporation - Bao Loc Branch located at 345, National Road 20, Loc Nga Ward, Bao Loc City, Lam Dong Province, Vietnam; • Tan Phu Station Stop - Branch of Tin Nghia Corporation located at 182A, National Road 20, Phu Son Ward, Tan Phu District, Dong Nai Province, Vietnam; • Xuan Loc Station Stop - Branch of Tin Nghia Corporation located on National Highway 1A, Xuan Hoa Commune, Xuan Loc District, Dong Nai Province, Vietnam; • Tin Nghia Construction Enterprise - Branch of Tin Nghia Corporation located in Quarter 8, Long Binh Ward, Bien Hoa City, Dong Nai Province, Vietnam; • Management Board of Tan Bien Market - Branch of Tin Nghia Company located on Ha Noi Highway, Quarter 5, Tan Bien Ward, Bien Hoa City, Dong Nai Province, Vietnam; • Representative Office of Tin Nghia Corporation located in Ho Chi Minh City at Floor 9, Vietcombank Tower, No. 5 Me Linh Square, Ben Nghe Ward, District 1, Ho Chi Minh City, Vietnam; and • US Representative Office located in Bentonville City, Arkansas, the United States of America.
ANNUAL REPORT 2018 www.tinnghiacorp.com.vn
55
NOTES TO THE SEPARATE FINANCIAL STATEMENT For the fiscal year ended 31st December 2018
1
Form B 09 – DN
GENERAL INFORMATION (continued) As at 31 December 2018, the Company had 14 subsidiaries and 4 associates as disclosed in Note 4(c) – Long-term investments.
No
Subsidiaries
Place of incorporation and operation
1
Tin Nghia Laos Joint Stock Company
Lao People’s Democratic Republic
2
Tin Nghia Industrial Park Investment Co., Ltd (*)
Dong Nai Province
3
ICD Bien Hoa – Tin Nghia Logistics Joint Stock Company
Dong Nai Province
4
Phu Huu Deport Corporation
Dong Nai Province
5
Tin Nghia – Phuong Dong Industrial Park Joint Stock Company
6
Tin Nghia Petroleum Import Export Joint Stock Company
Dong Nai Province
7
Phuoc Tan Construction and Trade Joint Stock Company
Dong Nai Province
8
Japanese SMEs Development Joint Stock Company
Dong Nai Province
9
Tin Nghia Petrol and Oil Joint Stock Company
Dong Nai Province
10
Tin Nghia Industrial Park Development Joint Stock Company
Dong Nai Province
11
Dong Nai Import Export Processing Agricultural Products and Foods Joint Stock Company
Dong Nai Province
12
Nhon Trach Investment Joint Stock Company
Dong Nai Province
13
Tin Nghia – A Chau Investment Joint Stock Company
Dong Nai Province
14
Scafe’ Corporation
Dong Nai Province
No
Associates
Ba Ria – Vung Tau Province
Place of incorporation and operation
1
Tin Nghia Coffee Corporation
Dong Nai Province
2
Tin Nghia Professional Security Services Corporation
Dong Nai Province
3
Thong Nhat Joint Stock Company
Dong Nai Province
4
Tin Nghia Project Management Joint Stock Company
Dong Nai Province
5
Scafe’ Corporation
Dong Nai Province
6
Phuoc Tan Construction and Trade Joint Stock Company
Dong Nai Province
(*) Before 12 February 2018, it was known as Tin Nghia Industrial Park Investment Joint Stock Company. (**) In 2018, the Company made additional capital contribution to these associates to increase its ownership percentage, and accordingly they become the Company’s subsidiaries.
56
ACCOMPANY WITH PROSPERITY
As at 31st December 2018
2017
Principal activities
% of ownership
% of voting right
% of ownership
% of voting right
Cultivating, exploiting and trading coffee
100.00
100.00
100.00
100.00
Doing business in infrastructures of industrial parks
100.00
100.00
99.44
99.44
Logistic services
89.60
89.60
91.97
91.97
Import and export petroleum
81.98
81.98
-
-
Doing business in infrastructures of industrial parks
80.00
80.00
86.49
86.49
Import and export petroleum
76.50
76.50
-
-
Construction and real estate business
72.73
72.73
(**)
(**)
Doing business in infrastructures of industrial parks
59.07
59.07
59.07
59.07
Trading in petroleum
58.98
58.98
58.98
58.98
Doing business in infrastructures of industrial parks
56.74
56.74
56.74
56.74
Processing, import and export of agriculture products
54.00
54.00
54.00
54.00
Real estate investments
51.52
51.52
51.76
51.76
Real estate investments
51.00
51.00
51.00
51.00
Producing coffee
50.00
50.00
(**)
(**)
As at 31st December 2018
2017
Principal activities
% of ownership
% of voting right
% of ownership
% of voting right
Producing coffee
40.00
40.00
46.54
46.54
Security services
36.00
36.00
36.00
36.00
Doing business in infrastructure of industrial parks
29.51
29.51
28.98
28.98
Project management and supervision consulting
29.00
29.00
29.00
29.00
Producing coffee
(**)
(**)
39.68
39.68
Construction and real estate business
(**)
(**)
40.00
40.00
ANNUAL REPORT 2018 www.tinnghiacorp.com.vn
57
NOTES TO THE SEPARATE FINANCIAL STATEMENT For the fiscal year ended 31st December 2018
2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
2.1
Basis of preparation of separate financial statements
Form B 09 – DN
The separate financial statements have been prepared in accordance with Vietnamese Accounting Standards, the Vietnamese Corporate Accounting System and applicable regulations on preparation and presentation of separate financial statements. The separate financial statements have been prepared under the historical cost convention. The accompanying separate financial statements are not intended to present the financial position and results of operations and cash flows in accordance with accounting principles and practices generally accepted in countries and jurisdictions other than Vietnam. The accounting principles and practices utilised in Vietnam may differ from those generally accepted in countries and jurisdictions other than Vietnam. Separately, the Company has also prepared the consolidated financial statements of the Company and its subsidiaries (together, “the Group”) in accordance with Vietnamese Accounting Standards, the Vietnamese Corporate Accounting System and applicable regulations on preparation and presentation of consolidated financial statements. In the consolidated financial statements, subsidiary undertakings – which are those companies over which the Group has the power to govern the financial and operating policies – have been fully consolidated. Users of these separate financial statements of the Company should read them together with the consolidated financial statements of the Group for the year ended 31 December 2018 in order to obtain full information of the financial position and results of operations and cash flows of the Group. The separate financial statements in Vietnamese language are the official statutory separate financial statements of the Company. The separate financial statements in English language have been translated from the Vietnamese language separate financial statements. 2.2
Fiscal year The Company’s fiscal year is from 1 January to 31 December.
2.3 Currency The separate financial statements are measured and presented in Vietnamese Dong (“VND” or “dong”). Transactions arising in foreign currencies are translated at exchange rates ruling at the transaction dates. Foreign exchange differences arising from these transactions are recognised in the separate income statement. Monetary assets and liabilities denominated in foreign currencies at the separate balance sheet date are respectively translated at the buying and selling exchange rates at the separate balance sheet date of the commercial bank where the Company regularly trades. Foreign currencies deposited in bank at the separate balance sheet date are translated at the buying exchange rate of the commercial bank where the Company opens the foreign currency accounts. Foreign exchange differences arising from these translations are recognised in the separate income statement. 2.4
Cash and cash equivalents Cash and cash equivalents comprise cash on hand, cash at banks and other short-term investment with an original maturity of three months or less.
2.5
Trade receivables Trade receivables are carried at the original invoice amount less an estimate made for doubtful receivables based on a review by the Board of Directors of all outstanding amounts at the year end. Bad debts are written off when identified.
2.6 Inventories Inventories are stated at the lower of cost and net realisable value. Cost is determined by the weighted average method and includes all costs of purchase, costs of conversion and other costs incurred in bringing the inventories to their present location and condition. In the case of manufactured products, cost includes all direct expenditure and production overheads based on normal levels of operating activity. Net realisable value is the estimated selling price in the normal course of business, less the estimated costs of completion and selling expenses. The Company applies the perpetual method for inventories. 58
ACCOMPANY WITH PROSPERITY
Provision is made, where necessary, for obsolete, slow-moving and defective inventory items. The difference between the provision of this period and the provision of the previous period are recognised as an increase or decrease of operating expenses in the year. 2.7 Investments (a)
Trading securities Trading securities are securities, which are held by the Company for trading purpose to earn profit. Trading securities are initially recorded at cost of acquisition. They are subsequently measured at cost less provision. The provision for diminution in value of trading securities is made when the cost is higher than its fair value. Profit or loss from liquidation or disposal of trading securities is recorded in the separate income statement. The costs of trading securities disposed are determined by using the moving weighted average method.
(b)
Investments held-to-maturity Investments held-to-maturity are investments which the Board of Directors has positive intention and ability to hold until maturity. Investments held-to-maturity include term deposits. Those investments are accounted for at cost less provision. Provision for diminution in value of investments held-to-maturity is made when there is evidence that part or the whole of the investment is uncollectible.
(c)
Investments in subsidiaries Subsidiaries are all entities over which the Company has the power to govern the financial and operating policies generally accompanying a shareholding of more than one half of the voting rights. The existence and effect of potential voting rights that are currently exercisable or convertible are considered when assessing whether the Company controls another entity. Investments in subsidiaries are accounted for at cost less provision for diminution in value. Provision for diminution in value is made when there is an impairment of the investments
(d)
Investments in associates Associates are investments that the Company has significant influence but not control and would generally have from 20% to under 50% voting shares of the investee. Investments in associates are accounted for at cost less provision for diminution in value. Provision for diminution in value is made when there is a reduction in value of the investments.
(e)
Investments in equity of other entities Investments in equity of other entities are investments in equity instruments of other entities without controlling rights or co-controlling rights, or without significant influence over the investee. These investments are initially recorded at cost. Regarding long-term investments in listed shares or the long-term investments which its fair value can be determined reliably, the provision is made when the cost is higher than the market value. For other longterm investments, provision for diminution in value of these investments is made when the entities make losses, except when the loss was anticipated in their business plan before the date of investment.
2.8
Lending held-to-maturity Lending held-to-maturity is lending for interest earning granted under agreements among parties but not being traded as securities in the market. Allowance for doubtful lending is made for each lending based on overdue days in payment of lending principals according to initial payment commitment (exclusive of the payment rescheduling between parties), or based on expected loss that may arise.
ANNUAL REPORT 2018 www.tinnghiacorp.com.vn
59
NOTES TO THE SEPARATE FINANCIAL STATEMENT For the fiscal year ended 31st December 2018
2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
2.9
Fixed assets
Form B 09 – DN
Tangible and intangible fixed assets Fixed assets are stated at historical cost less accumulated depreciation/amortisation. Historical cost includes expenditure that is directly attributable to the acquisition of the fixed assets. Depreciation and amortisation Fixed assets are depreciated and amortised using the straight-line method so as to write off the cost of the assets over their estimated useful lives. The estimated useful lives of each asset class are as follows: Buildings and structures
6 – 25 years
Machinery and equipment
6 – 12 years
Motor vehicles
6 – 10 years
Office equipment
3 – 8 years
Software
3 – 8 years
Other tangible fixed assets
3 – 8 years
Other intangible fixed assets
20 years
Land use rights with indefinite useful life are recorded at historical cost and are not armortised. Disposal Gains or losses on disposals are determined by comparing net disposal proceeds with the carrying amount and are recognised as income or expense in the separate income statement. Construction in progress Properties in the course of construction for production, rental or administrative purposes, or for purposes not yet determined, are carried at cost. Cost includes professional fees and, for qualifying assets, borrowing costs dealt with in accordance with the Company’s accounting policy. Depreciation of these assets, on the same basis as other fixed assets, commences when the assets are ready for their intended use. 2.10
Operating lease Leases where a significant portion of the risks and rewards of ownership are retained by the lessor are classified as operating leases. Payments made under operating leases are charged to the separate income statement on a straight-line basis over the term of the lease.
2.11
Investment properties Cost of an investment property means the amount of cash or cash equivalents paid or the fair value of other consideration given to acquire the investment property at the time of its acquisition or completion of construction. Depreciation Investment properties are depreciated on the straight-line method to write off the cost of the assets over their estimated useful lives. The estimated useful lives of each asset class are as follows: Infrastructure of industrial parks
10 – 30 years
Buildings and land use rights
6 – 25 years
Disposals Gains or losses on disposals are determined by comparing net disposal proceeds with the net book value and are recognised as income or expense in the separate income statement.
60
ACCOMPANY WITH PROSPERITY
2.12
Prepaid expenses Prepaid expenses include short-term and long-term prepayments on the separate balance sheet. Prepaid expenses are recorded at historical cost and allocated using the straight line method over estimated useful lives.
2.13 Payables Classifications of payables are based on their nature as follows:
• Trade accounts payable are trade payables arising from purchase of goods and services. • Other payables including non-trade payables, and not relating to purchase of goods and services. Payables are classified into long-term and short-term payables on the separate balance sheet based on remaining period from the balance sheet date to the maturity date. 2.14
Borrowing Borrowings include borrowings from banks and other entities. Borrowings are classified into long-term and short-term based on remaining period from the balance sheet date to the maturity date. Borrowing costs that are directly attributable to the construction or production of any qualifying assets are capitalised during the period of time that is required to complete and prepare the asset for its intended use. Other borrowing costs are recognised in the income statement when incurred.
2.15
Accrued expenses Accrued expenses include liabilities for goods and services received in the year but not yet paid for due to pending invoice or insufficient records and documents. Accrued expenses are recorded as expenses in the reporting period.
2.16 Provisions Provisions are recognised when: the Company has a present legal or constructive obligation as a result of past events; it is probable that an outflow of resources will be required to settle the obligation; and the amount has been reliably estimated. Provision is not recognised for future operating losses. Provisions are measured at the expenditures expected to be required to settle the obligation. If the time value of money is material, provision will be measured at the present value using a pre-tax rate that reflects current market assessments of the time value of money and the risks specific to the obligation. The increase in the provision due to passage of time is recognised as an interest expense. 2.17
Provision for severance allowances In accordance with Vietnamese labour laws, employees of the Company who have worked regularly for full 12 months or longer, are entitled to a severance allowance. The working period used for the calculation of severance allowance is the period during which the employee actually works for the Company less the period during which the employee participates in the unemployment insurance scheme in accordance with the labour regulations and the working period for which the employee has received severance allowance from the Company. The severance allowance is accrued at the end of the reporting period on the basis that each employee is entitled to half of an average monthly salary for each working year. The average monthly salary used for calculating the severance allowance is the employee’s average salary for the six-month period prior to the balance sheet date. This allowance will be paid as a lump sum when the employees terminate their labour contracts in accordance with current regulations.
ANNUAL REPORT 2018 www.tinnghiacorp.com.vn
61
NOTES TO THE SEPARATE FINANCIAL STATEMENT For the fiscal year ended 31st December 2018
2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
2.18
Unearned revenue
Form B 09 – DN
Unearned revenue mainly comprises the amounts that customers paid in advance for one or many accounting periods for asset leases. The Company records unearned revenue for the future obligations that the Company has to conduct. 2.19
Share capital Contributed capital of the shareholders is recorded according to actual amount contributed. Contributions from owners are recorded according to par value of the share. Share premium is the difference between the par value and the issue price of shares and the difference between the repurchase price and re-issuing price of treasury shares. Undistributed earnings record the Company’s accumulated results after business income tax at the reporting date and after appropriation to other funds approved at the Annual General Meeting of Shareholders.
2.20
Appropriation of net profit Net profit after business income tax could be distributed to shareholders after approval at the General Meeting of Shareholders, and after appropriation to other funds in accordance with the Company’s charter and Vietnamese regulations. Dividend of the Company is recognised as a liability in the Company’s separate financial statements in the year in which the dividends are approved at the General Meeting of Shareholders. The Company’s funds are as below:
(a)
Development and investment fund Development and investment fund is appropriated from net profit of the Company and subject to shareholders’ approval at the General Meeting of Shareholders. This fund is set for use in the Company’s expansion of its operation or in-depth investments.
(b)
Bonus and welfare fund Bonus and welfare fund is appropriated from the Company’s net profit and subject to shareholders’ approval at the General Meeting of Shareholders. This fund is set for the purpose of pecuniary rewarding and encouraging, common benefits and improvement of the employees’ benefit.
2.21
Revenue recognition
(a)
Revenue from sales of goods Revenue from sale of goods is recognised in the income statement when all five (5) following conditions are satisfied:
• The Company has transferred to the buyer the significant risks and rewards of ownership of the goods; • The Company retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold;
• The amount of revenue can be measured reliably; • It is probable that the economic benefits associated with the transaction will flow to the Company; and • The costs incurred or to be incurred in respect of the transaction can be measured reliably. No revenue is recognised if there are significant uncertainties regarding recovery of the consideration due or the possible return of goods. Revenue is recognised based on principle of “substance over form” and allocated to each sales obligation. In case that the Company gives promotional goods to customers associated with customers’ purchase, the Company allocates total consideration received for goods sold and promotional goods. Cost of promotional goods is recognised as cost of sales in the income statement.
62
ACCOMPANY WITH PROSPERITY
(b)
Revenue from sale of real estate Revenue from sale of real estate is recognised in the income statement when the real estate has been completed and the Company has transferred significant risks and rewards of ownership to the buyer. Revenue from sale of real estate is recognised in the separate income statement when all five (5) following conditions are satisfied:
• The real estate has been completed, and the Company has transferred to the buyer the significant risks and rewards of ownership of the real estate;
• The Company no longer holds the right to manage the real estate as the real estate‘s owner nor the right to control the real estate;
• The amount of revenue can be measured reliably; • The Company has received or entitled to receive economic benefits from the sale of the real estate; and • The costs incurred or to be incurred in respect of the real estate can be measured reliably. (c)
Revenue from rendering of services Revenue from rendering of services is recognised in the income statement when the services are rendered, by reference to completion of the specific transaction assessed on the basis of the actual service provided as a proportion of the total services to be provided. Revenue from rendering of services is only recognised when all four (4) following conditions are satisfied:
• The amount of revenue can be measured reliably; • It is probable that the economic benefits associated with the transaction will flow to the Company; • The percentage of completion of the transaction at the separate balance sheet date can be measured reliably; and
• The costs incurred for the transaction and the costs to complete the transaction can be measured reliably.
(d)
Revenue from construction contracts A construction contract is a contract specifically negotiated for the construction of an asset or a combination of assets that are closely interrelated or interdependent in terms of their design, technology and functions or their ultimate purpose of use. When the outcome of a construction contract can be reliably estimated, revenue and cost are recognised by reference to the amount of work completed and certified by customers. Variance in contract value, claimable receivable and other receivable are included in revenue to the extent that they have been agreed with and confirmed by customers. When the outcome of a construction contract cannot be reliably estimated, contract revenue and contract cost are recognised over the period of the contract as revenue and expenses respectively. Contract cost are only recorgnised when incurred during the period.
(e)
Revenue from leasing of developed infrastructure land Revenue from leasing of developed infrastructure land under operating leases is recognised in the income statement on a straight-line basis over the lease term.
(f)
Interest income Interest income is recognised on an earned basis.
(g)
Dividend income Income from dividend is recognised when the Company has established the receiving rights from investees.
ANNUAL REPORT 2018 www.tinnghiacorp.com.vn
63
NOTES TO THE SEPARATE FINANCIAL STATEMENT For the fiscal year ended 31st December 2018
2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
2.22
Sales deductions
Form B 09 – DN
Sales deductions include reduction of the finalisation value of projects, trade discounts, sales returns and allowances. Sales deductions incurred in the same period of the settlement project, trade discounts, goods returned and discounts of goods and services sold are recorded as deduction of revenue of that period. Sales deductions on the finalisation value of projects, trade discounts, sold goods and discounts on the after separate balance sheet date but before the issuance of the separate financial statements are recorded as deduction of revenue of the period. 2.23
Cost of goods sold and services rendered Cost are cost of finished products, goods and the total costs incurred for the completed work and services provided which were certified by the customer, the total costs incurred during the execution of the residential land ground projects which have been constructed the infrastructure and delivered to customers during the year, and recorded on the basis of matching with revenue and on prudent concept.
2.24 Financial expenses Financial expenses are expenses incurred in the year for financial activities including expenses or losses relating to financial investment activity, expenses of borrowings, losses from sale of securities transactions, provision for diminution in value of investments in other entities, losses incurred when selling foreign currencies and losses from foreign exchange differences. 2.25
Selling expenses Selling expenses represent expenses that are incurred in the process of selling products, goods, and providing services, which mainly include publicity, display, promotions, advertising expenses, sale commissions, warranty charges of goods and products (excluding construction activity), maintenance charges, packaging and transportation.
2.26
General and administration expenses General and administration expenses represent expenses for administrative purposes which mainly include salary expenses of administrative staffs, social insurance, medical insurance, labour union fees, unemployment insurance of administrative staff, expenses of office materials, tools and supplies, depreciation of fixed assets used for administration, licence tax, outside services and other cash expenses.
2.27
Current and deferred income tax Income taxes include all income taxes which are based on taxable profits including profits generated from production and trading activities in other countries with which the Socialist Republic of Vietnam has not signed any double taxation agreement. Income tax expense comprises current tax expense and deferred tax expense. Current income tax is the amount of income taxes payable or recoverable in respect of the current year taxable profits at the current year tax rates. Current and deferred tax should be recognised as an income or an expense and included in the profit or loss of the period, except to the extent that the tax arises from a transaction or event which is recognised, in the same or a different period, directly in equity. Deferred income tax is provided in full, using the liability method, on temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the separate financial statements. Deferred income tax is not accounted for if it arises from initial recognition of an asset or liability in a transaction other than a business combination that at the time of occurrence affects neither the accounting nor the taxable profit or loss. Deferred income tax is determined at the tax rates that are expected to apply to the financial year when the asset is realised or the liability is settled, based on tax rates that have been enacted or substantively enacted by the separate balance sheet date. Deferred income tax assets are recognised to the extent that it is probable that future taxable profit will be available against which the temporary differences can be utilised.
64
ACCOMPANY WITH PROSPERITY
2.28
Related parties Enterprises and individuals that directly, or indirectly through one or more intermediaries, control, or are controlled by, or are under common control with, the Company, including holding companies, subsidiaries and fellow subsidiaries are related parties of the Company. Associates and individuals owning, directly or indirectly, an interest in the voting power of the Company that gives them significant influence over the enterprise, key management personnel, including the General Director of the Company and close members of the family of these individuals and companies associated with these individuals also constitute related parties. In considering the related party relationship, the Company considers the substance of the relationship not merely the legal form.
2.29
Use of estimates The preparation of the separate financial statements in conformity with Vietnamese Accounting Standards requires the Board of Directors to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosures of contingent assets and liabilities at the date of the separate financial statements and the amounts of revenues and expenses during the period. Although these estimates are based on the Board of Directors’ best knowledge of current events and actions, actual results may differ from those estimates.
2.30
Segment reporting A segment is a component which can be separated by the Company engaged in providing products or services (business segment), or providing products or services within a particular economic environment (geographical segment). Each segment is subject to risks and returns that are different from those of other segments. A reportable segment is the Company’s business segment. Segment reporting is prepared and presented in accordance with accounting policies applied to the preparation and presentation of the Company’s separate financial statements in order to help users of separate financial statements understand and evaluate the Company’s operations in a comprehensive way.
3
CASH AND CASH EQUIVALENTS 2018 VND
2017 VND
Cash on hand
180,448,363
8,750,528
Cash at bank
127,835,198,176
70,618,883,355
7,236,458,082
292,007,320,000
135,252,104,621
362,634,953,883
Cash equivalents (*)
(*) This includes term deposits with original maturities of three months or less and earn interest at the rates from 4.5% to 5.1% per annum (as at 31 December 2017: from 5.0% to 5.5% per annum).
ANNUAL REPORT 2018 www.tinnghiacorp.com.vn
65
NOTES TO THE SEPARATE FINANCIAL STATEMENT For the fiscal year ended 31st December 2018
Form B 09 – DN
4 INVESTMENTS (a)
Trading securities 2018
Nhon Trach Water Supply Joint Stock Company (NTW)
Cost VND
Fair value (*) VND
Provision VND
6,616,661,800
11,014,992,000
-
(*) Fair value of the trading securities is based on closing price as at 31 December 2018 and 31 December 2017 of the Ho Chi Minh Stock Exchange. (b)
Investments held-to-maturity 2018
Term deposits
Cost VND
Book value VND
124,312,636,986
124,312,636,986
As at 31 December 2018, investments held-to-maturity are term deposits with original maturities from 3 to 12 months at commercial banks and earn interest at the rates from 4.5% to 6.1% per annum (as at 31 December 2017: from 6.1% to 8.75% per annum). (c)
Long-term investments
Investments in subsidiaries Nhon Trach Investment Joint Stock Company Tin Nghia - A Chau Investment Joint Stock Company Tin Nghia Industrial Park Investment Co.,Ltd (**) Phu Huu Depot Corporation Tin Nghia Industrial Park Development Joint Stock Company (TIP) ICD Bien Hoa – Tin Nghia Logistics Joint Stock Company Phuoc Tan Construction and Trade Joint Stock Company Tin Nghia – Phuong Dong Industrial Park Joint Stock Company Tin Nghia Petroleum Import Export Joint Stock Company Tin Nghia Petrol and Oil Joint Stock Company Dong Nai Import Export Processing Agricultural Products and Foods Joint Stock Company Japanese SMEs Development Joint Stock Company Tin Nghia Laos Joint Stock Company Scafe’ Corporation
66
ACCOMPANY WITH PROSPERITY
2017 Cost VND
Fair value (*) VND
Provision VND
6,616,661,800
7,649,300,000
-
2017 Cost VND
Book value VND
199,591,000,000
199,591,000,000
2018
2017
Cost VND
Fair value VND
Provision VND
Cost VND
Fair value VND
Provision VND
656,534,585,265
(*)
-
656,534,585,265
(*)
-
275,400,000,000
(*)
-
275,400,000,000
(*)
-
216,488,735,742
(*)
-
268,423,935,008
(*)
-
206,600,000,000
(*)
-
-
(*)
-
201,106,328,037
234,582,426,778
-
201,106,328,037
(*)
-
166,647,815,830
(*)
-
166,647,815,830
(*)
-
159,968,703,674
(*)
(18,715,775)
-
(*)
-
159,041,110,549
(*)
(2,001,842,549)
159,041,110,549
(*)
(1,491,593,760)
153,000,000,000
(*)
-
-
(*)
-
137,038,699,914
(*)
-
137,038,699,914
(*)
-
122,715,000,000
(*)
(46,806,681,650)
122,715,000,000
(*) (49,078,229,942)
85,925,958,161
(*)
-
85,925,958,161
(*)
(196,992,205)
44,327,053,093
(*)
(44,327,053,093)
32,714,053,093
(*)
(32,714,053,093)
4,679,592,517
(*)
(3,619,219,997)
-
(*)
-
(96,773,513,064)
2,105,547,485,857
2,589,473,582,782
(83,480,869,000)
ANNUAL REPORT 2018 www.tinnghiacorp.com.vn
67
NOTES TO THE SEPARATE FINANCIAL STATEMENT
Form B 09 – DN
For the fiscal year ended 31st December 2018
4
INVESTMENTS (continued)
(c)
Long-term investments (continued) 2018 Cost VND
Fair value VND
Provision VND
80,000,000,000
(*)
-
Phuoc Tan Construction and Trade Joint Stock Company
-
(*)
-
Thong Nhat Joint Stock Company (BAX)
34,342,129,977
68,167,860,000
-
1,852,741,179
(*)
-
-
(*)
-
1,173,790,000
(*)
-
Investments in associates Tin Nghia Coffee Coporation
Tin Nghia Professional Security Service Corporation Scafe’ Corporation Tin Nghia Project Management Joint Stock Company
117,368,661,156
-
2018 Cost VND
% of ownership
Fair value VND
Provision VND
30,980,222,002
0,22
(*)
-
Tan Mai General Wood Joint Stock Company
4,914,700,000
8,93
(*)
-
Tan Cang Long Binh ICD Joint Stock Company
3,855,901,267
1,79
(*)
-
Investment in other entities Vietnam Maritime Commercial Joint Stock Bank
39,750,823,269
-
(*) As at 31 December 2018 and 31 December 2017, fair values of these investments were not available as these entities’ shares were not publicly traded in the stock market.
Fair value of these long-term investments is based on the closing price as at 31 December 2018 and 31 December 2017 of the Hanoi Stock Exchange and Ho Chi Minh Stock Exchange.
(**) According to the Meeting Resolution of the Board of Management on 2 January 2018, Tin Nghia Industrial Park Co., Ltd transferred back the assets that the Company used to invest in 2017 and the value of these assets decreased by VND 52 billion compared to the time of investments.
68
ACCOMPANY WITH PROSPERITY
2017 Cost VND
Fair value VND
Provision VND
80,000,000,000
(*)
-
39,968,703,674
(*)
(11,984,983)
33,318,950,977
51,096,900,000
-
1,852,741,179
(*)
-
1,679,592,517
(*)
(695,030,095)
1,173,790,000
(*)
-
157,993,778,347
(707,015,078)
2017 Cost VND
% of ownership
Fair value VND
Provision VND
30,980,222,002
0,33
(*)
-
4,914,700,000
8,93
(*)
-
3,185,901,267
1,6
(*)
-
39,080,823,269
ANNUAL REPORT 2018 www.tinnghiacorp.com.vn
69
NOTES TO THE SEPARATE FINANCIAL STATEMENT For the fiscal year ended 31st December 2018
5
Form B 09 – DN
TRADE ACCOUNTS RECEIVABLE
(a) Short-term 2017 VND
2018 VND Third parties (*) Related parties (Note 37(b))
250,266,957,053
331,706,826,360
18,677,147,275
67,065,959,093
268,944,104,328
398,772,785,453
(*) As at 31 December 2018, details for customers accounting from 10% or more of the total balance of short-term trade accounts receivable – third parties are as follows: Hiep Quang Argo Joint Stock Company
123,320,787,996
124,826,027,996
Wagon Vietnam Joint Stock Company
38,955,163,300
11,092,775,300
Louis DreyFus Commodities Suisse SA
32,299,967,125
10,318,657,653
The balances of trade accounts receivable which were past due are presented in Note 9. (b) Long-term 2018 VND Related parties (Note 37(b)) 6
10,450,000,000
2017 VND 133,956,159,571
SHORT-TERM PREPAYMENTS TO SUPPLIERS 2018 VND
2017 VND (As reclassified Note 40
Third parties (*)
44,026,720,751
63,294,709,509
Related parties (Note 37(b))
21,012,230,992
40,355,562,171
65,038,951,743
103,650,271,680
(*) As at 31 December 2018, details for suppliers accounting from 10% or more of the total balance of short-term prepayments to suppliers are as follows: 2018 VND
2017 VND (As reclassified Note 40)
Phu Hoa Phat Transportation Company Limited Ly Thanh Production Trading Service Company Limited Kim Phu Di Linh Agriculture Product Company Limited
70
ACCOMPANY WITH PROSPERITY
8,866,456,667
4,574,421,333
5,411,053,174
9,449,312,667
4,471,068,200
10,006,416,667
7 LENDINGS (a) Short-term
Related parties (Note 37(b))
2018 VND
2017 VND
89,498,081,401
255,998,081,401
2018 VND
2017 VND
-
1,534,665,925
625,384,488,474
564,584,488,474
625,384,488,474
566,119,154,399
(b) Long-term
Third party Related parties (Note 37(b))
8
OTHER RECEIVABLES
(a) Short-term
2018 VND Third parties (*) Related parties (Note 37(b))
2017 VND (As reclassified Noted 40)
40,176,178,293
38,877,902,819
229,006,061,785
34,111,159,743
269,182,240,078
72,989,062,562
(*) As at 31 December 2018, details for customers accounting from 10% or more of the total balance of other receivables – third parties are as follows: 2018 VND
2017 VND (As reclassified Noted 40)
Long Khang Trading Service Import Export Limited Liability Company
28,364,008,184
32,762,858,734
The balances of other receivables which were past due are presented in Note 9. (b) Long-term
Third parties Related parties (Note 37(b))
2018 VND
2017 VND
3,465,552,800
1,259,299,900
203,776,048,737
180,095,143,927
207,241,601,537
181,354,443,827
ANNUAL REPORT 2018 www.tinnghiacorp.com.vn
71
NOTES TO THE SEPARATE FINANCIAL STATEMENT
Form B 09 – DN
For the fiscal year ended 31st December 2018
9
PROVISIONS FOR SHORT-TERM DOUBTFUL DEBTS 2018 Cost VND
Recoverable amount VND
Provision VND
Hiep Quang Argo Joint Stock Company
123,320,787,996
61,660,393,998
61,660,393,998
Long Khang Trading Service Import Export Limited Liability Company
28,364,008,184
-
28,364,008,184
243,003,150
-
243,003,150
151,927,799,330
61,660,393,998
90,267,405,332
Receivables that were past due
Others
2017 Cost VND
Recoverable amount VND
Provision VND
32,762,858,734
16,381,429,367
16,381,429,367
179,912,600
-
179,912,600
32,942,771,334
16,381,429,367
16,561,341,967
Receivables that were past due Long Khang Trading Service Import Export Limited Liability Company Others
10
INVENTORIES 2018
2017
Cost VND
Provision VND
Cost VND
Provision VND
24,725,326,048
-
58,817,582,771
-
Work in progress
1,343,759,422
-
5,920,967,378
-
Tools and supplies
1,954,000,246
-
2,107,882,121
-
-
-
115,292,754,594
-
59,106,749,269
(1,256,094,957)
36,948,441,060
(2,289,421,857)
427,263,185,784
(10,624,245,029)
422,363,122,924
(16,808,957,320)
514,393,020,769
(11,880,339,986)
641,450,750,848
(19,098,379,177)
Raw materials
Goods in transit Finished goods Merchandise
502,512,680,783
622,352,371,671
Movements in provision for decline in value of inventories during the year are as follows:
72
2018 VND
2017 VND
Beginning of year
19,098,379,177
44,597,456
(Reversal)/provision
(7,218,039,191)
19,053,781,721
End of year
11,880,339,986
19,098,379,177
ACCOMPANY WITH PROSPERITY
11
LONG-TERM PREPAID EXPENSES 2018 VND
2017 VND (As reclassified Note 40)
Site clearance and compensation
160,099,712,676
89,352,389,557
21,066,463,290
-
13,418,105,870
15,237,510,050
Cost of leveling
9,223,218,777
9,458,451,357
Brokerage commission fee
7,887,339,123
4,420,998,176
Consulting services fee
3,865,642,016
4,423,129,084
Tools and supplies
3,909,813,176
3,577,306,786
Others
1,323,217,130
1,828,072,869
220,793,512,058
128,297,857,879
Land rental, infrastructure usage fee - Y.S.P Vietnam Company Limited Business advantage value
Movements in long-term prepaid expenses during the year are as follows: 2018 VND
2017 VND (As reclassified Note 40)
Beginning of year
128,297,857,879
174,810,119,120
Increase
65,083,836,427
41,304,865,467
Transfers from construction in progress (Note 14)
35,888,396,187
-
5,454,727,137
-
-
(73,123,479,140)
Allocation
(13,931,305,572)
(14,693,647,568)
End of year
220,793,512,058
128,297,857,879
Transfers from intangible fixed assets (Note 12(b)) Capital contribution to subsidiary
ANNUAL REPORT 2018 www.tinnghiacorp.com.vn
73
NOTES TO THE SEPARATE FINANCIAL STATEMENT For the fiscal year ended 31st December 2018
12
FIXED ASSETS
(a)
Tangible fixed assets
Form B 09 – DN
Plant, buildings and structures VND
Machinery and equipment VND
165,517,769,029
95,370,998,927
59,940,000
1,660,556,045
Transfers from construction in progress (Note 14)
-
1,758,769,000
Transfers from Tin Nghia Industrial Park Investment Co.,Ltd (*)
-
186,040,211
Disposals
-
-
165,577,709,029
98,976,364,183
45,326,945,433
74,528,654,101
3,922,150,990
2,445,705,108
184,640,163
31,006,702
-
-
49,433,736,586
77,005,365,911
As at 1 January 2018 (As reclassified - Note 40)
120,190,823,596
20,842,344,826
As at 31 December 2018
116,143,972,443
21,970,998,272
Historical cost As at 1 January 2018 (As reclassified - Note 40) New purchases
As at 31 December 2018 Accumulated depreciation As at 1 January 2018 (As reclassified - Note 40) Charge for the year Transfers from Tin Nghia Industrial Park Investment Co.,Ltd (*) Disposals As at 31 December 2018 Net book value
As at 31 December 2018, tangible fixed assets with a carrying value of VND 123,606,371,714 (as at 31 December 2017: VND 129,280,107,739) were pledged with banks as collaterals for borrowings granted to the Company (Note 22). Cost of fully depreciated tangible fixed assets but still in use as at 30 December 2018 was VND 69,319,598,671 (as at 31 December 2017: VND 70,353,024,218). (*) These are tangible fixed assets of Nhon Trach 3 Industrial Park that the Company received back from its subsidiary according to the hand-over minutes dated 2 January 2018 (Note 4(c)).
74
ACCOMPANY WITH PROSPERITY
Motor vehicles VND
Office equipment VND
Others VND
Total VND
42,405,958,573
3,934,127,765
6,947,285,863
314,176,140,157
6,337,572,727
-
-
8,058,068,772
967,360,909
-
-
2,726,129,909
3,069,350,278
-
-
3,255,390,489
(14,613,428,331)
(84,974,495)
-
(14,698,402,826)
38,166,814,156
3,849,153,270
6,947,285,863
313,517,326,501
28,988,863,162
2,888,480,693
2,531,833,235
154,264,776,624
3,011,120,133
146,723,412
352,318,871
9,878,018,514
741,759,648
-
-
957,406,513
(12,122,500,051)
(84,974,495)
-
(12,207,474,546)
20,619,242,892
2,950,229,610
2,884,152,106
152,892,727,105
13,417,095,411
1,045,647,072
4,415,452,628
159,911,363,533
17,547,571,264
898,923,660
4,063,133,757
160,624,599,396
ANNUAL REPORT 2018 www.tinnghiacorp.com.vn
75
NOTES TO THE SEPARATE FINANCIAL STATEMENT For the fiscal year ended 31st December 2018
12
FIXED ASSETS (continued)
(b)
Intangible fixed assets
Form B 09 – DN
Land use rights VND
Software VND
Total VND
47,810,378,839
3,231,474,202
51,041,853,041
-
163,171,000
163,171,000
Transfers to prepaid expenses (Note 11)
(5,454,727,137)
-
(5,454,727,137)
As at 31 December 2018
42,355,651,702
3,394,645,202
45,750,296,904
As at 1 January 2018 (As reclassified - Note 40)
992,906,466
1,858,631,493
2,851,537,959
Charge for the year
109,208,964
468,539,375
577,748,339
1,102,115,430
2,327,170,868
3,429,286,298
As at 1 January 2018 (As reclassified - Note 40)
46,817,472,373
1,372,842,709
48,190,315,082
As at 31 December 2018
41,253,536,272
1,067,474,334
42,321,010,606
Historical cost As at 1 January 2018 (As reclassified - Note 40) New purchases
Accumulated amortisation
As at 31 December 2018 Net book value
As at 31 December 2018, intangible fixed assets with a carrying value of VND 40,121,481,864 (as at 31 December 2017: VND 45,576,209,011) were pledged with banks as a collateral for borrowings granted to the Company (Note 22).
76
Cost of fully amortised intangible fixed assets but still in use as at 31 December 2018 was VND 1,845,448,202 (as at 31 December 2017: VND 1,845,448,202).
ACCOMPANY WITH PROSPERITY
13
INVESTMENT PROPERTIES Infrastructure of industrial zones VND
Land use rights and buildings VND
Total VND
As at 1 January 2018 (As reclassified - Note 40)
444,577,072,845
256,968,599,688
701,545,672,533
Transfers from Tin Nghia Industrial Park Investment Co.,Ltd (*)
226,411,018,537
-
226,411,018,537
333,350,000
-
333,350,000
(2,479,076,133)
-
(2,479,076,133)
(154,771,779)
-
(154,771,779)
668,687,593,470
256,968,599,688
925,656,193,158
As at 1 January 2018 (As reclassified - Note 40)
85,949,082,238
105,908,052,591
191,857,134,829
Charged for the year
34,058,128,958
6,349,440,851
40,407,569,809
Transferred from Tin Nghia Industrial Park Investment Co.,Ltd (*)
119,201,848,193
-
119,201,848,193
Disposals
(1,906,401,921)
-
(1,906,401,921)
(154,771,779)
-
(154,771,779)
237,147,885,689
112,257,493,442
349,405,379,131
358,627,990,607
151,060,547,097
509,688,537,704
431,539,707,781
144,711,106,246
576,250,814,027
Historical cost
Addition Disposals Other As at 31 December 2018 Accumulated depreciation
Other As at 31 December 2018 Net book value As at 1 January 2018 (As reclassified - Note 40) As at 31 December 2018
As at 31 December 2018, investment properties with a carrying value of VND 277,401,627,863 (as at 31 December 2017: VND 183,390,005,305) were pledged with banks as a collateral for borrowings granted to the Company (Note 22). Cost of fully depreciated investment properties but still in use as at 31 December 2018 was VND 4,715,330,530 (as at 31 December 2017: VND 1,301,920,189). (*) These are tangible fixed assets of Nhon Trach 3 Industrial Park that the Company received back from its subsidiary according to the hand-over minutes dated 2 January 2018 (Note 4(c)).
ANNUAL REPORT 2018 www.tinnghiacorp.com.vn
77
NOTES TO THE SEPARATE FINANCIAL STATEMENT For the fiscal year ended 31st December 2018
14
Form B 09 – DN
CONSTRUCTION IN PROGRESS 2018 VND
2017 VND (As reclassified Note 40)
Ong Keo Industrial Park
766,057,695,122
555,477,614,975
An Phuoc Industrial Park
170,843,433,506
176,770,004,588
Medical Diagnostic Center (Quang Vinh apartment)
93,849,019,080
88,437,873,301
Hiep Hoa Resettlement Area
37,611,892,506
74,653,898,439
Hiep Phuoc Trading Center
34,137,408,158
29,875,313,830
Nhon Trach 6D Industrial Zone
53,436,986,379
33,275,516,852
Phu Huu General Port
33,674,196,944
26,062,120,038
Wastewater Treatment Plant in Ong Keo Industrial Park
24,948,746,221
24,930,001,893
13,320,215,161
13,260,215,161
-
134,549,437,185
206,656,068,346
44,485,248,858
1,434,535,661,423
1,201,777,245,120
Isle area Phu Huu Petroleum Depot - Nhon Trach (*) Others
Movements in construction in progress during the year are as follows: 2018 VND
2017 VND (As reclassified Note 40)
Beginning of year New purchases Transfers to investment properties Tranfers to tangible fixed assets (Note 12(a)) Capital contribution to subsidiary by assets (*) Transfers to long-term prepaid expenses (Note 11) End of year
1,201,777,245,120
1,178,682,287,688
430,761,380,591
317,590,332,407
-
(28,679,173,454)
(2,726,129,909)
(213,069,228,839)
(159,388,438,192)
(22,250,190,131)
(35,888,396,187)
(30,496,782,551)
1,434,535,661,423
1,201,777,245,120
(*) The Company used this project as an asset capital contribution to a subsidiary – Phu Huu Depot Corporation in 2018 (Note 34).
78
ACCOMPANY WITH PROSPERITY
15
SHORT-TERM TRADE ACCOUNTS PAYABLE
Third parties (*) Related parties (Note 37(b))
2018 VND
2017 VND
161,284,720,973
112,892,815,062
6,240,394,509
21,288,999,197
167,525,115,482
134,181,814,259
(*) As at 31 December 2018, details for suppliers accounting from 10% or more of the total balance of short-term trade accounts payable – third parties are as follows: 2018 VND
2017 VND
Thuy Tien Coffee Co-operative society
53,487,750,000
9,616,938,100
Hangzhou Cogenneration (Hong Kong)
27,793,450,783
-
As at 31 December 2018 and 31 December 2017, there was no balance of short-term trade accounts payable that was past due. 16
TAXES AND OTHER RECEIVABLES FROM/PAYABLES TO THE STATE BUDGET Movements in tax and other receivables from/payables to the State Budget during the year are as follows: As at 1.1.2018 VND
(Receivable)/ payable during the year VND
Paid/net-off during the year VND
As at 31.12.2018 VND
Business income tax
8,842,965
25,535,623,116
(1,919,730,163)
23,624,735,918
Personal income tax
349,255,750
7,926,318,945
(8,027,791,125)
247,783,570
3,489,828,210
57,379,614,548
(60,869,442,758)
-
Import export duties
-
3,088,926,575
(3,088,926,575)
-
Housing and land tax
-
130,381,044,008
(130,381,044,008)
-
4,134,336
-
(4,134,336)
-
-
770,139,412
(770,139,412)
-
3,852,061,261
225,081,666,604
(205,061,208,377)
23,872,519,488
2,496,657,475
112,936,719
(2,496,657,475)
112,936,719
VAT
401,069,326
-
-
401,069,326
Business income tax overpaid
380,571,153
-
(380,571,153)
-
3,278,297,954
112,936,719
(2,877,228,628)
514,006,045
a) Paybles
VAT
Environment tax Others
b) Receivables Housing and land tax
ANNUAL REPORT 2018 www.tinnghiacorp.com.vn
79
NOTES TO THE SEPARATE FINANCIAL STATEMENT
Form B 09 – DN
For the fiscal year ended 31st December 2018
17
SHORT-TERM ACCRUED EXPENSES 2018 VND
2017 VND
17,491,253,512
23,606,885,885
Construction expenses
5,395,748,127
4,070,996,451
Interest expense
1,102,943,556
2,054,406,673
646,567,706
-
24,636,512,901
29,732,289,009
Estimated cost of industrial park infrastructure leasing
Others
18
SHORT-TERM AND LONG-TERM UNEARNED REVENUE Unearned revenue mainly comprises the amounts received in advance from leasing activities of investment properties.
19
OTHER PAYABLES
(a)
Short-term
Third parties (*) Deposit for Nhon Trach 3 Industrial park Dividends Others Related parties (Note 37(b))
2018 VND
2017 VND
51,699,991,618
37,484,629,324
46,625,483,455
23,808,371,685
66,760,000
8,750,980,000
5,007,748,163
4,925,277,639
16,742,553,306
49,717,506,409
68,442,544,924
87,202,135,733
(*) As at 31 December 2018, details for suppliers accounting from 10% or more of the total balance of shortterm other payables – third parties are as follows: 2018 VND
2017 VND
10,044,613,500
-
8,567,706,120
8,567,706,120
6,000,000,000
6,000,000,000
2018 VND
2017 VND
Third parties
84,921,479,088
74,456,963,776
Land rental
56,297,764,041
46,095,811,502
Payable to Long Thanh Compensation Committee for compensation of Tam Phuoc Industrial Park
26,674,087,676
26,674,087,676
1,949,627,371
1,687,064,598
-
1,514,669,118,012
84,921,479,088
1,589,126,081,788
Changsin Vietnam Company Limited Industrial Company Limited Rong Phuong Bac Trading Company Limited (b)
Long-term
Deposit received for workshop leasing Related parties (Note 37(b))
80
ACCOMPANY WITH PROSPERITY
20 BORROWINGS (a)
Payment term 2018 VND
2017 VND
673,660,009,516
1,171,711,116,250
74,968,117,196
49,078,118,318
5,106,595,617
65,106,595,617
126,743,255,207
589,178,864,297
880,477,977,536
1,875,074,694,482
418,368,011,212
401,096,526,381
(74,968,117,196)
(49,078,118,318)
10,270,000,000
11,850,000,000
353,669,894,016
363,868,408,063
Short-term Bank loans Current portion of long-term bank loans Borrowings from individuals Related parties (Note 37(b))
Long-term Bank loans Current portion of long-term bank loans Borrowings from Environmental Protection Fund
(b)
Movement of short-term
As at 1.1.2018 VND
Increase VND
Foreign exchange Decrease revaluation at VND year-end VND
Bank loans
1,171,711,116,250 5,030,136,792,707 (5,527,917,422,187)
Related parties (Note 37(b))
589,178,864,297
151,164,542,292
65,106,595,617
976,962,711
Borrowings from individuals
As at 31.12.2018 VND
(270,477,254)
673,660,009,516
(613,600,151,382)
-
126,743,255,207
(60,976,962,711)
-
5,106,595,617
1,825,996,576,164 5,182,278,297,710 (6,202,494,536,280)
(270,477,254) 805,509,860,340
ANNUAL REPORT 2018 www.tinnghiacorp.com.vn
81
NOTES TO THE SEPARATE FINANCIAL STATEMENT
Form B 09 – DN
For the fiscal year ended 31st December 2018
20
BORROWINGS (continued)
(b)
Movement of short-term (continued) Details of ending balance of short-term bank loans are as follows: Ending balance VND
Interest rate (% per annum)
Collateral
20,000,000,000
6.5
Land use right at Quang Vinh apartment building and Tan Phu station stop
219,553,705,713
5.0 - 9.5
Land use right, office and inventory
74,698,028,086
2.5 - 4.5
Joint Stock Commercial Bank for Investment and Development of Vietnam Dong Nai Branch
40,500,000,000
6.3
Unsecured
E.SUN Commercial Bank Ltd - Dong Nai Branch
136,766,822,513
5.2 - 6.0
Xuan Loc petrol station
143,662,495,354
3.2 - 3.4
35,905,757,850
6.0 - 7.7
2,573,200,000
5.2 - 6.95
Bank The Vietnam Bank for Agriculture and Rural Development - Dong Nai Branch Vietnam Joint Stock Commercial Bank for Industry and Trade – East Sai Gon Branch
E.SUN Commercial Bank Ltd - Dong Nai Branch
Unsecured
673,660,009,516 (c)
Movement of long-term
Bank loans
As at 1.1.2018 VND
Increase VND
Decrease VND
As at 31.12.2018 VND
401,096,526,381
74,492,031,785
(57,220,546,954)
418,368,011,212
11,850,000,000
-
(1,580,000,000)
10,270,000,000
412,946,526,381
74,492,031,785
(58,800,546,954)
428,638,011,212
Borrowings from Environmental Protection Fund
Details of ending balance of long-term bank loans are as follows: Bank
Credit limit
Vietnam Prosperity Joint Stock Commercial Bank – Dong Nai 300,000,000,000 Branch
Interest rate Ending balance VND (% per annum) 165,358,011,212
9.5
The right to exploit and use assets formed from Ong Keo Industrial Park
Petrolimex Group Commercial Joint Stock Bank – Dong Nai Branch
280,000,000,000 245,960,000,000
9.6 - 10.6
The right to exploit and use assets formed from An Phuoc Industrial Park
Vietnam Joint Stock Commercial Bank for Industry and Trade – East Sai Gon Branch
700,000,000,000
9.5
Land use right, office, shares and inventory
7,050,000,000
418,368,011,212
82
Collateral
ACCOMPANY WITH PROSPERITY
21
DEFERRED INCOME TAX LIABILITIES
Deferred tax liabilities to be recovered after more than 12 months Deferred tax liabilities to be recovered within 12 months
2018 VND
2017 VND
60,312,299,965
62,049,837,306
1,737,537,341
1,737,537,341
62,049,837,306
63,787,374,647
The gross movement in the deferred income tax, without taking into consideration the offsetting of balances within the same tax jurisdiction, is as follows: 2018 VND
2017 VND
Beginning of year
63,787,374,647
65,524,911,988
Charge to income statement (Note 34)
(1,737,537,341)
(1,737,537,341)
End of year
62,049,837,306
63,787,374,647
2018 VND
2017 VND
62,049,837,306
63,787,374,647
Details of deferred tax liabilities:
Taxable temporary differences (*)
(*) Temporary differences were mainly from recognised revenue, but have been equally allocated over the land lease term for the tax purpose. The tax rate used to determine the deferred tax liability for the year ended 31 December 2018 and for the year ended 31 December 2017 is 20%. The Company’s tax losses can be carried forward to offset against future taxable income for a maximum period of no more than five consecutive years from the year right after the year in which the loss was incurred. The actual amount of tax losses that can be carried forward is subject to review and approval of the tax authorities and may be different from the figures presented.
ANNUAL REPORT 2018 www.tinnghiacorp.com.vn
83
NOTES TO THE SEPARATE FINANCIAL STATEMENT
Form B 09 – DN
For the fiscal year ended 31st December 2018
21
DEFERRED INCOME TAX LIABILITIES (continued) The estimated amount of tax losses available for offset against the Company’s future taxable income is: Status of tax authorities’ review
Loss incurred VND
Loss utilised VND
Loss carried forward VND
2014
Finalised
101,076,524,960
-
101,076,524,960
2015
Finalised
16,675,737,085
-
16,675,737,085
2016
Finalised
8,776,069,462
-
8,776,069,462
2017
Finalised
17,072,529,696
-
17,072,529,696
2018
Outstanding
41,025,924,227
-
41,025,924,227
Year of tax loss
The Company has not recognised deferred income tax assets relating to the above tax losses carried forward, as the realisation of the related tax benefit through future taxable income currently cannot be assessed as probable. 22
OWNERS’ CAPITAL
(a)
Number of ordinary shares 2018
(b)
2017
Ordinary shares
Preference shares
Ordinary shares
Preference shares
Number of shares registered
200,000,000
-
155,800,000
-
Number of shares issued
200,000,000
-
155,800,000
-
Number of existing shares in circulation
200,000,000
-
155,800,000
-
Details of owners’ shareholding 2018 %
Ordinary shares
%
Dong Nai Provincial Party Office
96,125,000
48.06
77,900,000
50.00
59,497,500
29.75
54,530,000
35.00
Others
44,377,500
22.19
23,370,000
15.00
200,000,000
100.00
155,800,000
100.00
Movement of share capital
As at 1 January 2018 New shares issued As at 31 December 2017 New shares issued As at 31 December 2018 Par value per share: VND10,000.
84
Ordinary shares Thanh Thanh Cong Investment Joint Stock Company Number of shares (c)
2017
ACCOMPANY WITH PROSPERITY
Number of shares
Ordinary shares VND
Total VND
151,706,270
1,517,062,697,120
1,517,062,697,120
4,093,730
40,937,302,880
40,937,302,880
155,800,000
1,558,000,000,000
1,558,000,000,000
44,200,000
442,000,000,000
442,000,000,000
200,000,000
2,000,000,000,000
2,000,000,000,000
23
MOVEMENTS IN OWNERS’ EQUITY
Owners’ capital VND
Share premium VND
nvestment and development funds VND
Post-tax undistributed earnings VND
Total VND
1,517,062,697,120
5,634,952,321
-
111,532,231,181
1,634,229,880,622
40,937,302,880
-
-
-
40,937,302,880
Net profit for the year
-
-
-
361,728,217,702
361,728,217,702
Appropriation to development and investment fund
-
-
1,892,231,181
(1,892,231,181)
-
Dividends paid (Note 24)
-
-
- (109,060,000,000)
(109,060,000,000)
Appropriation to bonus fund for the Board of Management
-
-
-
(580,000,000)
(580,000,000)
Shared profit from Business cooperation contract
-
-
-
1,137,875,356
1,137,875,356
As at 31 December 2017
1,558,000,000,000
5,634,952,321
1,892,231,181
362,866,093,058
1,928,393,276,560
Capital increase during the year (*)
442,000,000,000
-
-
-
442,000,000,000
Net profit for the year
-
-
-
332,194,659,857
332,194,659,857
Appropriation to investment and development fund (**)
-
- 18,086,853,033
(18,086,853,033)
-
Appropriation to bonus and welfare fund (**)
-
-
-
(14,546,350,028)
(14,546,350,028)
Dividends paid (Note 24)(**)
-
-
- (155,800,000,000)
(155,800,000,000)
2,000,000,000,000
5,634,952,321
As at 1 January 2017 Capital increase during the year
As at 31 December 2018
19,979,084,214
506,627,549,854
2,532,241,586,389
(*) According to the Company’s Annual General Meeting of Shareholders Resolution No. 01/NQ-ĐHĐCĐ dated 21 April 2017, the Annual General Meeting of Shareholders approved the Company’s plan to increase the Company’s charter capital. This charter capital increase was completed on 27 June 2018. (**) According to the Company’s Annual General Meeting of Shareholders Resolution No. 01/NQ-ĐHĐCĐ dated 20 April 2018, the Annual General Meeting of Shareholders approved the profit distribution as follows:
• Dividend distribution of 10%/par value by cash to the Company’s shareholders amounting to VND155,800,000,000;
• Appropriation to investment and development fund of VND18,086,853,033; • Appropriation to bonus and welfare fund of VND11,646,350,028; and • Appropriation to bonus fund for the Board of Management of VND2,900,000,000.
ANNUAL REPORT 2018 www.tinnghiacorp.com.vn
85
NOTES TO THE SEPARATE FINANCIAL STATEMENT For the fiscal year ended 31st December 2018
Form B 09 – DN
24 DIVIDENDS Movements in dividends payable during the year are as follows:
Opening balance Dividends payable during the year (Note 23) Dividends paid in cash Closing balance 25
OFF BALANCE SHEET ITEMS
(a)
Foreign currencies
2018 VND
2017 VND
8,750,980,000
-
155,800,000,000
109,060,000,000
(164,484,220,000)
(100,309,020,000)
66,760,000
8,750,980,000
Included in cash and cash equivalents were balances held in foreign currencies of USD 4,485,820.05 (as at 31 December 2017: USD 2,094,657). (b)
Operating lease assets The future minimum lease payments under non-cancellable operating leases as at 31 December 2018 and 31 December 2017 were disclosed in Note 38.
26
NET REVENUE FROM SALES OF GOODS AND RENDERING SERVICES
2018 VND
2017 VND
5,345,720,870,052
5,016,786,557,372
Revenue Revenue from sales of finished goods
120,586,780,452
70,187,712,217
Revenue from construction contracts
Revenue from industrial infrastructure leasing
83,099,424,010
68,625,723,384
Revenue from rendering of services
33,200,901,406
39,226,163,964
Revenue from sales of real estate
10,364,320,982
93,047,452,504
5,592,972,296,902
5,287,873,609,441
(55,441,897)
(107,285,041)
5,345,665,428,155
5,016,679,272,331
120,586,780,452
70,187,712,217
Sales deductions Sales allowances
Net revenue from sales of goods and rendering of services Revenue from sales of finished goods Revenue from industrial infrastructure leasing Revenue from construction contracts
83,099,424,010
68,625,723,384
Revenue from rendering of services
33,200,901,406
39,226,163,964
Revenue from sales of real estate
10,364,320,982
93,047,452,504
5,592,916,855,005
5,287,766,324,400
2018 VND
2017 VND
Construction works completed
80,145,892,672
29,104,499,641
Construction works in progress
2,953,531,338
39,521,223,743
83,099,424,010
68,625,723,384
(*) Revenue from construction contracts includes:
86
ACCOMPANY WITH PROSPERITY
27
COST OF GOODS SOLD AND SERVICES RENDERED 2018 VND
2017 VND
5,315,423,029,231
4,975,928,879,401
Cost of industrial infrastructure leasing
39,529,726,966
24,016,091,707
Cost of construction services
77,507,643,055
62,383,543,670
Cost of services rendered
10,896,489,304
20,112,848,293
8,044,502,073
71,762,673,165
(7,218,039,191)
19,053,781,721
5,444,183,351,438
5,173,257,817,957
2018 VND
2017 VND
251,804,276,701
45,764,470,116
Interest income from deposits and lending
75,926,994,114
63,940,605,653
Realised foreign exchange gains
12,062,527,460
17,682,108,983
11,118,859,682
9,078,341,493
2,167,621,776
424,071,690,292
54,481,178
-
353,134,760,911
560,537,216,537
2018 VND
2017 VND
76,114,317,198
104,890,514,787
Realised foreign exchange losses
40,070,374,335
14,712,870,421
Loss from coffee future contracts
14,382,421,094
-
Provision for diminution in value of investments
12,585,628,986
48,227,010,656
-
634,560,183
1,129,370,699
198,445,380
144,282,112,312
168,663,401,427
Cost of goods sold
Cost of real estate (Reversal)/provision for decline in value of inventories (Note 10)
28
FINANCIAL INCOME
Dividend income
Interest income on late payments Income from disposal of investments and securities trading Net gain from foreign currency translation at year-end
29
FINANCIAL EXPENSES
Interest expense
Net loss from foreign currency translation at year-end Others
ANNUAL REPORT 2018 www.tinnghiacorp.com.vn
87
NOTES TO THE SEPARATE FINANCIAL STATEMENT
Form B 09 – DN
For the fiscal year ended 31st December 2018
30
SELLING EXPENSES 2018 VND
2017 VND
60,422,545,132
54,571,917,197
9,005,910,154
-
Raw materials
768,512,377
205,951,505
Depreciation
651,525,692
600,381,048
7,951,818
-
3,541,033,282
2,682,465,660
74,397,478,455
58,060,715,410
2018 VND
2017 VND
Provision
80,448,564,195
4,230,872,263
Staff costs
61,523,689,970
44,589,467,283
Outside service expenses
16,357,644,519
8,822,593,228
Depreciation and amortisation
6,555,035,775
7,695,229,216
Taxes, duties and fees
5,143,567,785
3,146,366,620
Materials and supplies
1,998,417,701
2,206,414,561
16,684,762,240
22,118,909,694
188,711,682,185
92,809,852,865
2018 VND
2017 VND
Gains on disposal of projects (*)
142,773,845,171
-
Income from capital contribution by assets (**)
120,551,561,808
-
1,410,493,851
-
2,244,672,085
5,432,615,674
Income from transfer of bonus shares of divested investment
-
1,916,688,000
Income from tuition fee collection
-
3,969,171,797
3,421,044,080
2,738,586,612
270,401,616,995
14,057,062,083
Outside services expenses Staff costs
Tools and supplies Others
31
GENERAL AND ADMINISTRATION EXPENSES
Others
32
OTHER INCOME AND OTHER EXPENSES
Other income
Gains on disposal of fixed assets Fines from late payment
Others
88
ACCOMPANY WITH PROSPERITY
2018 VND
2017 VND
Depreciation in operation cease period
3,557,767,295
1,456,535,259
Compensation of non-executive members of the Board of Supervision and Board of Management
1,752,000,000
1,752,000,000
Losses on disposal of fixed assets
-
1,298,964,237
Losses on inventory count at year-end
-
218,651,623
3,576,095,594
91,389,000
8,885,862,889
4,817,540,119
261,515,754,109
9,239,521,964
Other expenses
Others
Other income - net
(*) This is profit from transferring a part of Hiep Hoa resettlement area project. (**) In 2018, the Company, Nguyen Cuong Joint Stock Company and Ms. Dang Thi Thanh Ha agreed to contribute their capitals to establish a subsidiary – Phu Huu Deport Corporation with the respective percentages of ownership of 82%, 3% and 15%. The Company has contributed its capital by assets (Note 14), of which the variance between fair value of contributed assets and capital contribution shall be repaid by the subsidiary. The Company completed its contribution and transferred the land use right in this year, accordingly, fair value and book value of assets were recognised into other income and other expenses. 33
COST OF OPERATION BY FACTOR 2018 VND
2017 VND
959,944,697,296
1,119,958,679,591
88,842,045,855
119,707,820,684
Staff costs
75,680,877,310
56,852,375,282
Provisions
74,263,851,904
21,035,409,983
Depreciation and amortisation
41,289,302,859
22,748,692,486
Other expenses
30,043,695,879
45,810,305,128
1,270,064,471,103
1,386,113,283,154
Raw materials Outside service expenses
ANNUAL REPORT 2018 www.tinnghiacorp.com.vn
89
NOTES TO THE SEPARATE FINANCIAL STATEMENT
Form B 09 – DN
For the fiscal year ended 31st December 2018
34
BUSINESS INCOME TAX The Company is subject to Business Income Tax (“BIT”) at a rate of 20% on taxable income in accordance with current tax regulations. For Ong Keo and Tan Phu Industrial Parks, the Company is entitled to BIT exemption for four years from the first year of generating taxable income (Tan Phu: 2012 and Ong Keo: 2013) and a 50% BIT reduction for the following four years. The BIT on the Company’s profit before tax differs from the theoretical amount that would arise using the applicable tax rate as follows: 2018 VND
2017 VND
355,992,745,632
364,751,275,242
71,198,549,126
72,950,255,048
(50,360,855,340)
(8,818,744,660)
2,343,697,626
950,475,602
(6,997,350,371)
(65,494,962,031)
7,643,469,621
3,448,290,179
(29,424,887)
(21,099,563)
-
8,842,965
23,798,085,775
3,023,057,540
Business income tax – current
25,535,623,116
4,760,594,881
Business income tax – deferred (**)
(1,737,537,341)
(1,737,537,341)
23,798,085,775
3,023,057,540
Net accounting profit before tax Tax calculated at a rate of 20% (2017: 20%) Effect of: Income not subject to tax Expenses not deductible for tax purposes Utilisation of previously unrecognised tax losses Tax losses for which no deferred income tax asset has been recognised Tax reduction (**) Under-provision in previous years Business income tax charge (*) Charged to income statement:
(*) The BIT charge for the year is based on estimated taxable income and is subject to review and possible adjustments by the tax authorities.
90
ACCOMPANY WITH PROSPERITY
ANNUAL REPORT 2018 www.tinnghiacorp.com.vn
91
35
21,696,611,209
46,171,620,510
(24,016,091,707)
70,187,712,217
81,057,053,486
(39,529,726,966)
120,586,780,452
6,242,179,714
(62,383,543,670)
68,625,723,384
2017
5,591,780,955
(77,507,643,055)
83,099,424,010
Construction VND
19,113,315,671
(20,112,848,293)
39,226,163,964
22,304,412,102
(10,896,489,304)
33,200,901,406
Services VND
4,967,405,550,060
Total segment liabilities
The Company only operates in Vietnam.
6,796,936,203,633
4,566,311,950,824
Total segment liabilities
Total segment assets
6,986,608,310,492
Total segment assets
Construction VND
69,498,329,928
95,095,057,172
103,006,232,636
67,951,682,918
92,978,769,112
2017
70,984,220,405
157,602,942,751 108,608,204,944
Industrial Sales of goods infrastructure leasing VND VND
2018
38,840,885,376
53,146,258,611
28,360,486,623
43,392,482,526
Services VND
Information of segment assets and liabilities based on the principal activities of the Company is as follows:
The Company only operates in Vietnam.
Gross profit
(4,994,982,661,122)
5,016,679,272,331
Net revenue
Cost
37,460,438,115
(5,308,204,990,040)
5,345,665,428,155
Gross profit
Cost
Net revenue
Industrial Sales of goods infrastructure leasing VND VND
2018
92,133,542,309
126,066,978,622
8,853,289,342
13,545,825,506
Real estate VND
21,284,779,339
(71,762,673,165)
93,047,452,504
2,319,818,909
(8,044,502,073)
10,364,320,982
Real estate VND
Total VND
5,235,829,990,591
7,164,223,267,151
4,777,516,179,831
7,309,757,766,220
Total VND
114,508,506,443
(5,173,257,817,957)
5,287,766,324,400
148,733,503,567
(5,444,183,351,438)
5,592,916,855,005
Information of segment revenue and cost of goods sold and services rendered based on the principal activities of the Company is as follows:
SEGMENT REPORTING
NOTES TO THE SEPARATE FINANCIAL STATEMENT For the fiscal year ended 31st December 2018
36
ADDITIONAL INFORMATION FOR THE ITEMS OF THE STATEMENT OF CASH FLOWS
(a)
Non-cash transactions affect the statement of cash flows
Form B 09 – DN
During the year, the Company received assets and obligations related to Nhon Trach 3 Industrial Park from Tin Nghia Industrial Park Investment Co., Ltd as follows: 2018 VND Tangible fixed assets
2,297,983,976
Investment properties
107,209,170,344
Other long-term assets
52,539,547,518
Other long-term payables
1,494,080,778,164
Long-term unearned revenue
(1,598,192,280,736)
Investment to subsidiary (b)
Amount of loan principal actually paid and received during the year
Proceeds from borrowings following normal borrowing contracts Proceeds from borrowings to make payments to suppliers Repayments for borrowings following normal borrowing contracts Borrowing net-off with receivables due from subsidiaries
92
(57,935,199,266)
ACCOMPANY WITH PROSPERITY
2018 VND
2017 VND
934,913,763,425
1,312,071,190,289
3,853,975,885,775
2,256,089,623,267
(5,709,998,280,543)
(2,976,007,407,479)
(22,806,311,170)
(18,194,701,998)
37
RELATED PARTY DISCLOSURES
(a)
Related party transactions
During the year, the following transactions were carried out with related parties: Relationship
2018 VND
2017 VND
Sales of goods and rendering of services Dong Nai Import Export Processing Agricultural Products and Food Company
Subsidiary
92,004,170,094
106,256,034,725
Japanese SMEs Development Joint Stock Company
Subsidiary
73,894,780,522
15,092,228,273
Phu Huu Deport Corporation
Subsidiary
73,340,000,000
-
Scafe Corporation
Subsidiary
12,313,039,858
35,384,166,896
ICD Bien Hoa - International Logistics Company Limited
Subsidiary
6,912,526,000
10,590,121,487
Tin Nghia Industrial Park Development Joint Stock Company
Subsidiary
6,645,176,728
7,669,868,728
Tin Nghia Industrial Park Investment Co.,Ltd
Associate
5,145,818,182
15,216,164,364
Tin Nghia – Phuong Dong Industrial Park Joint Stock Company
Associate
3,841,759,671
25,565,261,527
Tin Nghia Petrol and Oil Joint Stock Company
Subsidiary
2,355,288,811
2,999,050,103
Nhon Trach Investment Joint Stock Company
Subsidiary
2,141,454,000
2,875,870,908
Other related party
306,000,000
-
Associate
253,854,540
265,745,449
Thong Nhat Real-estate Joint Stock Company
Other related party
198,000,000
-
Dong Nai Port Joint Stock Company
Other related party
77,272,727
-
Tin Nghia Project Management Joint Stock Company
Associate
16,800,000
15,054,545
Tin Nghia Coffee Joint Stock Company
Associate
975,000
6,011,626,400
Thong Nhat Joint Stock Company
Associate
-
28,145,455
Tin Nghia A Chau Joint Stock Company
Subsidiary
-
4,189,091
Phuoc Tan Construction and Trade Joint Stock Company
Subsidiary
-
2,618,182
Tin Nghia Laos Joint Stock Company
Subsidiary
-
8,200,000
279,446,916,133
227,984,346,133
Tin Nghia Petrol & Oil Transportation Joint Stock Company Tin Nghia Professional Security Service Corporation
Purchases of goods and services Dong Nai Import Export Processing Agricultural Products And Foods Joint Stock Company
Subsidiary
65,551,510,223
975,000
Tin Nghia Petrol and Oil Joint Stock Company
Subsidiary
22,993,038,826
1,667,996,288
Scafe Corporation
Subsidiary
12,040,877,675
23,976,437,397
Tin Nghia -Laos Joint Stock Company
Subsidiary
9,601,262,534
-
ICD Bien Hoa - International Logistics Company Limited
Subsidiary
9,463,876,723
4,323,136,777
Tin Nghia Professional Security Service Corporation
Associate
8,268,026,667
7,719,861,425
Other related party
4,892,579,916
3,547,489,853
Dong Nai Port Joint Stock Company
ANNUAL REPORT 2018 www.tinnghiacorp.com.vn
93
NOTES TO THE SEPARATE FINANCIAL STATEMENT
Form B 09 – DN
For the fiscal year ended 31st December 2018
37
RELATED PARTY DISCLOSURES (continued)
(a)
Related party transactions (continued)
Relationship
2018 VND
2017 VND
Purchases of goods and services (continued) Tin Nghia Project Management Joint Stock Company
1,680,201,764
1,951,654,241
Nhon Trach Green Trees Corporation
Other related party
Associate
529,016,054
-
Tin Nghia Petrol & Oil Transportation Joint Stock Company
Other related party
127,781,819
-
Japanese SMEs Development Joint Stock Company
Subsidiary
42,441,250
17,484,877
Tin Nghia Industrial Park Investment Co.,Ltd
Subsidiary
30,000,000
33,494,984,672
Tin Nghia Industrial Park Development Joint Stock Company
Subsidiary
7,848,435
123,699,682
Nhon Trach Investment Joint Stock Company
Subsidiary
-
157,549,150
135,228,461,886
76,981,269,362
Other related party
142,773,845,171
-
Tin Nghia Industrial park Investment Joint Stock Company Ltd
Subsidiary
70,994,169,701
-
Tin Nghia Petrol and Oil Joint Stock Company
Subsidiary
52,869,364,800
27,693,476,800
Tin Nghia Industrial Park Development Joint Stock Company
Subsidiary
51,639,000,000
7,377,000,000
Nhon Trach Investment Joint Stock Company
Subsidiary
34,000,000,000
-
ICD Bien Hoa - International Logistics Company Limited
Subsidiary
28,747,200,000
2,395,600,000
Thong Nhat Joint Stock Company
Associate
11,960,330,000
4,753,200,000
Other related party
402,000,000
-
Tin Nghia Professional Security Service Corporation
Associate
216,000,000
180,000,000
Tin Nghia Project Management Joint Stock Company
Associate
211,282,200
176,068,500
251,039,346,701
42,575,345,300
Other income Hiep Hoa Investment Development Co.,Ltd Profit transferred from
Tan Cang Long Binh ICD Joint Stock Company
Interest from lending
94
Tin Nghia Phuong Dong Industrial Park Joint Stock Company
Subsidiary
56,823,001,241
56,593,876,239
Phuoc Tan Construction and Trade Joint Stock Company
Subsidiary
6,241,516,753
7,786,669,354
Dongnai Import Export Processing Agricultural Products and Food Company
Subsidiary
1,220,503,459
956,240,071
Scafe’ Corporation
Subsidiary
444,435,655
-
Nhon Trach Investment Joint Stock Company
Subsidiary
396,666,667
349,125,000
Tin Nghia - A Chau Investment Joint Stock Company
Subsidiary
222,291,031
143,249,365
Japanese SMEs Development JS Company
Subsidiary
113,917,808
-
Tin Nghia Laos Joint Stock Company
Subsidiary
-
613,905,315
Tin Nghia Project Management Joint Stock Company
Subsidiary
-
13,250,000
65,462,332,614
66,456,315,344
ACCOMPANY WITH PROSPERITY
Relationship
2018 VND
2017 VND
Interest expense Tin Nghia Industrial Park Investment Co.,Ltd
Subsidiary
7,680,760,538
2,385,611,112
Tin Nghia Petrol and Oil Joint Stock Company
Subsidiary
1,123,185,308
4,975,577,563
Japanese SMEs Development Joint Stock Company
Subsidiary
534,690,698
650,718,115
Phuoc Tan Construction & Trade Joint Stock Company
Subsidiary
383,561,644
-
Nhon Trach Investment Joint Stock Company
Subsidiary
123,698,630
4,146,611,111
Tin Nghia Industrial Park Development Joint Stock Company
Subsidiary
-
1,327,514,254
9,845,896,818
13,486,032,155
Capital contribution Dong Nai Provincial Party Office
Shareholder
182,250,000,000
-
Thanh Thanh Cong Investment Joint Stock Company
Shareholder
127,575,000,000
-
309,825,000,000
-
Investment to subsidiaries Phu Huu Deport Corporation
Subsidiary
206,600,000,000
-
Tin Nghia Petroleum Import Export Joint Stock Company
Subsidiary
153,000,000,000
-
Phuoc Tan Construction & Trade Joint Stock Company
Subsidiary
120,000,000,000
-
Tin Nghia -Laos Joint Stock Company
Subsidiary
11,613,000,000
-
Scafe’ Corporation
Subsidiary
3,000,000,000
-
Thong Nhat Joint Stock Company
Associate
1,023,179,000
-
Tin Nghia Industrial Park Investment Co.,Ltd
Subsidiary
(51,935,199,266)
268,423,935,008
Tin Nghia Coffee Joint Stock Company
Associate
-
80,000,000,000
Japanese SMEs Development Joint Stock Company
Subsidiary
-
38,350,000,000
443,300,979,734
386,773,935,008
17,664,843,333
14,043,112,208
Compensation of key management Gross salaries and other benefits
ANNUAL REPORT 2018 www.tinnghiacorp.com.vn
95
NOTES TO THE SEPARATE FINANCIAL STATEMENT
Form B 09 – DN
For the fiscal year ended 31st December 2018
37
RELATED PARTY DISCLOSURES (continued)
(b)
Year end balances with related parties
Relationship
2018 VND
2017 VND
Short-term trade accounts receivable (Note 5(a)) Japanese SMEs Development Joint Stock Company
Subsidiary
13,867,979,152
23,900,000
Tin Nghia - Phuong Dong Industrial Park Joint Stock Company
Subsidiary
2,281,259,377
14,371,581,670
Dong Nai Import Export Processing Agricultural Products and Foods Joint Stock Company
Subsidiary
928,124,665
34,487,000,000
Tin Nghia Industrial Park Development Joint Stock Company
Subsidiary
727,451,600
63,894,600
Tin Nghia Petroleum Import Export Joint Stock Company
Subsidiary
708,794,473
-
Tin Nghia - A Chau Investment Joint Stock Company
Subsidiary
74,412,500
74,412,500
Scafe Joint Stock Company
Subsidiary
51,149,221
2,891,368,230
Tin Nghia Professional Security Service Corporation
Associate
22,500,000
22,500,000
Tin Nghia Petrol & Oil Joint Stock Company
Subsidiary
10,576,287
-
Tin Nghia Industrial Park Investment Co.,Ltd
Subsidiary
4,900,000
12,420,173,818
Nhon Trach Investment Joint Stock Company
Subsidiary
-
2,251,650,000
ICD Bien Hoa - International Logistics Company Limited
Subsidiary
-
459,478,275
18,677,147,275
67,065,959,093
Long-term trade accounts receivable (Note 5(b)) Tin Nghia - Phuong Dong Industrial Park Joint Stock Company
Subsidiary
10,450,000,000
10,450,000,000
Phuoc Tan Construction and Trade Joint Stock Company
Subsidiary
-
123,506,159,571
10,450,000,000
133,956,159,571
Short-term prepayment to suppliers (Note 6)
96
Tin Nghia Laos Joint Stock Company
Subsidiary
20,373,479,285
-
Tin Nghia Project Management Joint Stock Company
Associate
638,751,707
-
Tin Nghia Petrol and Oil Joint Stock Company
Subsidiary
-
425,184,000
Tin Nghia Industrial Park Investment Co.,Ltd
Subsidiary
-
25,680,784,973
Nhon Trach Investment Joint Stock Company
Subsidiary
-
4,002,400,000
Tin Nghia Industrial Park Development Joint Stock Company
Subsidiary
-
10,247,193,198
21,012,230,992
40,355,562,171
ACCOMPANY WITH PROSPERITY
Relationship
2018 VND
2017 VND
Short-term Lendings (Note 7(a)) Tin Nghia Laos Joint Stock Company (*)
Subsidiary
47,614,297,183
47,614,297,183
Dong Nai Import Export Processing Agricultural Products and Foods Joint Stock Company (*)
Subsidiary
15,539,714,218
15,539,714,218
Nhon Trach Investment Joint Stock Company (*)
Subsidiary
15,000,000,000
120,000,000,000
Phuoc Tan Construction and Trade Joint Stock Company
Associate
6,000,000,000
9,500,000,000
Tin Nghia - A Chau Investment Joint Stock Company
Subsidiary
2,344,070,000
2,344,070,000
Japanese SMEs Development Joint Stock Company
Subsidiary
2,000,000,000
-
Scafe Corporation
Associate
1,000,000,000
-
Tin Nghia - Phuong Dong Industrial Park Joint Stock Company
Subsidiary
-
61,000,000,000
89,498,081,401
255,998,081,401
Long-term lendings (Note 7(b)) Tin Nghia - Phuong Dong Industrial Park Joint Stock Company (**)
Subsidiary
625,384,488,474
564,384,488,474
Phuoc Tan Construction and Trade Joint Stock Company
Subsidiary
-
200,000,000
625,384,488,474
564,584,488,474
(*) These are lendings for working capital supplement purpose, with the terms from 3 months to 12 months and earn interest at the rates from 2.3% to 10.5% per annum. (**) As at 31 December 2018, the lendings represent the lending balance to Tin Nghia – Phuong Dong Industrial Park Joint Stock Company with total facility of VND 700 billion. This lending is for working capital supplement purpose and investment to Dat Do I Industrial Park project in Ba Ria – Vung Tau Province, with the term of 60 months and earn interest at the rate of 5.5% per annum.
ANNUAL REPORT 2018 www.tinnghiacorp.com.vn
97
NOTES TO THE SEPARATE FINANCIAL STATEMENT
Form B 09 – DN
For the fiscal year ended 31st December 2018
37
RELATED PARTY DISCLOSURES (continued)
(b)
Year end balances with related parties (continued)
Relationship
2018 VND
2017 VND
Other short-term receivables (Note 8(a)) Phu Huu Depot Corporation
Subsidiary
73,340,000,000
Nhon Trach Investment Joint Stock Company
Subsidiary
34,000,000,000
360,933,000
Tin Nghia Industrial Park Investment Co.,Ltd
Subsidiary
30,730,437,793
18,923,149,040
Tin Nghia Industrial Park Development Joint Stock Company
Subsidiary
29,513,600,000
40,000,000
Tin Nghia Petrol & Oil Joint Stock Company
Subsidiary
25,175,888,000
-
ICD Bien Hoa - International Logistics Company Limited
Subsidiary
16,619,593,441
3,212,338,010
Tin Nghia Laos Joint Stock Company
Subsidiary
7,384,647,510
6,051,794,126
Thong Nhat Joint Stock Company
Associate
7,132,600,000
7,200,000
Dong Nai Import Export Processing Agricultural Products and Foods Joint Stock Company
Subsidiary
2,867,910,463
2,331,558,693
Tin Nghia - Phuong Dong Industrial Park Joint Stock Company
Subsidiary
1,324,065,477
1,325,009,477
Tin Nghia Petroleum Import Export Joint Stock Company
Subsidiary
556,244,546
-
Tin Nghia - A Chau Investment Joint Stock Company
Subsidiary
117,659,040
264,007,413
Japanese SMEs Development JS Company
Subsidiary
108,941,962
2,880,000
Tin Nghia Coffee Joint Stock Company
Associate
73,073,553
-
Tin Nghia Professional Security Service Joint Stock Company
Associate
41,800,000
14,400,000
Tin Nghia Project Management Joint Stock Company
Associate
5,600,000
211,282,200
Phuoc Tan Construction and Trade Joint Stock Company
Subsidiary
2,800,000
108,996,668
Tin Khai Joint Stock Company
Other related party
2,800,000
-
Dong Nai Port Joint Stock Company
Other related party
2,800,000
-
Thong Nhat Real-estate Joint Stock Company
Other related party
2,800,000
-
Dong Nai Valuation Joint Stock Company
Other related party
2,800,000
-
-
1,257,611,116
229,006,061,785
34,111,159,743
Scafe’ Corporation
Subsidiary
Other long-term receivables (Note 8(b))
98
Tin Nghia - Phuong Dong Industrial Park Joint Stock Company
Subsidiary
167,539,266,509
110,716,265,268
Tin Nghia Industrial Park Development Joint Stock Company
Subsidiary
26,674,087,676
26,674,087,676
Phuoc Tan Construction and Trade Joint Stock Company
Subsidiary
9,562,694,552
42,704,790,983
203,776,048,737
180,095,143,927
ACCOMPANY WITH PROSPERITY
2018 VND
2017 VND
Subsidiary
3,241,883,230
1,818,016,775
Relationship Short-term trade accounts payable (Note 15) ICD Bien Hoa - International Logistics Company Limited Tin Nghia Professional Security Service Corporation
Associate
1,581,558,000
669,394,000
Dong Nai Port Joint Stock Company
Other related party
1,177,264,541
-
Tin Nghia Petrol & Oil Transportation Joint Stock Company
Other related party
29,420,000
-
Tin Nghia Petrol and Oil Joint Stock Company
Subsidiary
66,712,500
121,642,000
Tin Nghia Project Management Joint Stock Company
Associate
27,157,000
45,500,000
Scafe’ Corporation
Subsidiary
23,400,000
27,000,000
Other related party
88,471,638
-
Japanese SMEs Development Joint Stock Company
Subsidiary
4,527,600
-
Tin Nghia Industrial Park Investment Co.,Ltd
Subsidiary
-
603,750
Dong Nai Import Export Processing Agricultural Products and Foods Joint Stock Company
Subsidiary
-
18,606,842,672
6,240,394,509
21,288,999,197
Nhon Trach Green Trees Corporation
Short-term advances from customers Tin Nghia Laos Joint Stock Company
Subsidiaries
625,000,000
625,000,000
Scafe’ Corporation
Subsidiaries
-
11,029,806,400
Dong Nai Import Export Processing Agricultural Products and Foods Joint Stock Company
Subsidiaries
-
10,489,835,200
625,000,000
22,144,641,600
Other short-term payables (Note 19(a)) Tin Nghia Industrial Park Investment Co.,Ltd
Subsidiary
11,259,781,640
48,430,677,001
Nhon Trach Investment Joint Stock Company
Subsidiary
5,374,734,364
-
Tin Nghia Petrol and Oil Joint Stock Company
Subsidiary
108,037,302
770,159,404
Tin Nghia Coffee Joint Stock Company
Subsidiary
-
100,000,000
Japanese SMEs Development Joint Stock Company
Subsidiary
-
416,670,004
16,742,553,306
49,717,506,409
Subsidiary
-
1,514,669,118,012
Tin Nghia Industrial Park Investment Co.,Ltd (*)
Subsidiary
120,201,250,082
131,000,000,000
Tin Nghia Petrol and Oil Joint Stock Company
Subsidiary
6,542,005,125
34,253,087,297
Shareholder
-
400,000,000,000
Subsidiary
-
23,925,777,000
126,743,255,207
589,178,864,297
Other long-term payables (Note 19(b)) Tin Nghia Industrial Park Investment Co.,Ltd Short-term borrowings (Note 20(a))
Dong Nai Province Party Committee Japanese SMEs Development Joint Stock Company
(*) As at 31 December 2018, the loans represent the outstanding balance from Tin Nghia Industrial Park Investment Co., Ltd under total credit facility of VND131 billion. This loan is for working capital supplement purpose, unsecured and bear interest at the rate of 5.5% per annum.
ANNUAL REPORT 2018 www.tinnghiacorp.com.vn
99
NOTES TO THE SEPARATE FINANCIAL STATEMENT
Form B 09 – DN
For the fiscal year ended 31st December 2018
38
COMMITMENTS
(a)
Commitments under operating leases As at 31 December 2018, the future minimum lease payments for land and offices rental under non-cancellable operating leases are as follows:
Within one year Between one and five years Over five years Total minimum payments (b)
2018 VND
2017 VND
17,688,826,475
12,132,607,503
47,133,323,191
45,969,147,154
485,308,235,046
497,341,241,837
550,130,384,712
555,442,996,494
Capital expenditure commitments Capital expenditure contracted for at the balance sheet date but not recognised in the separate financial statements is as follows: 2018 VND
2017 VND
Within one year
1,329,090,487,731
1,772,457,534,348
Between one and five years
8,283,661,996,037
8,794,053,233,767
Over five years
12,155,112,981,885
11,452,631,231,885
21,767,865,465,653
22,019,142,000,000
Total minimum payments 39
CONTINGENT LIABILITIES According to the Circular No. 200/2014/TT-BTC of the Ministry of Finance dated 22 December 2014, since 1 January 2015, the Company is required to provide for dismantling and restoration costs of the Company’s leased premises and land. Accordingly, the Company is obliged to recover, restore and return the premises at the end of the lease term or at the termination date of the project. As at the date of these separate financial statements, the Company has not recognised this provision due to lack of necessary information.
100
ACCOMPANY WITH PROSPERITY
40
COMPARATIVE FIGURES Certain prior year’s corresponding figures have been reclassified to conform with the current year’s presentation of the separate financial statements. Details are presented as below: Separate balance sheet As at 31st December 2017 Code ASSETS
As previously reported VND
Reclassifications VND
As reclassified VND
132
Short-term prepayments to suppliers
136,413,130,414
(32,762,858,734)
103,650,271,680
136
Other short-term receivables
40,226,203,828
32,762,858,734
72,989,062,562
220 221
Fixed assets Tangible fixed assets
222
Historical cost
223
Accumulated depreciation
227
Intangible fixed assets
337,333,069,992
(129,231,391,377)
208,101,678,615
276,252,100,776
(116,340,737,243)
159,911,363,533
524,040,600,752
(209,864,460,595)
314,176,140,157
(247,788,499,976)
93,523,723,352
(154,264,776,624)
61,080,969,216
(12,890,654,134)
48,190,315,082
228
Historical cost
66,361,893,087
(15,320,040,046)
51,041,853,041
229
Accumulated depreciation
(5,280,923,871)
2,429,385,912
(2,851,537,959)
273,706,193,416
235,982,344,288
509,688,537,704
371,602,932,811
329,942,739,722
701,545,672,533
230 231
Investment properties Historical cost
232
Accumulated depreciation
(97,896,739,395)
(93,960,395,434)
(191,857,134,829)
240
Long-term assets in progress
1,314,163,377,465
(112,386,132,345)
1,201,777,245,120
1,314,163,377,465
(112,386,132,345)
1,201,777,245,120
122,662,678,445
5,635,179,434
128,297,857,879
122,662,678,445
5,635,179,434
128,297,857,879
242 260 261
Construction in progress Other long-term assets Long-term prepaid expenses
As at 31st December 2017 Code RESOURCES 310 318 330 336
Short-term liabilities Short-term unearned revenue Long-term liabilities Long-term unearned revenue
As previously reported VND
Reclassifications VND
As reclassified VND
2,183,756,348,799
34,460,533,652
2,218,216,882,451
1,380,000,000
34,460,533,652
35,840,533,652
3,052,073,641,792
(34,460,533,652)
3,017,613,108,140
1,035,291,777,294
(34,460,533,652)
1,000,831,243,642
The separate financial statements were approved by the Board of Directors on 9 April 2019.
Duong Thi Minh Hong Nguyen Thi Thuy Van Quach Van Duc Preparer Chief Accountant General Director 9 April 2019 ANNUAL REPORT 2018 www.tinnghiacorp.com.vn
101
102
ACCOMPANY WITH PROSPERITY
TIN NGHIA CORPORATION
CONSOLIDATED FINANCIAL STATEMENTS For the fiscal year ended 31st December 2018
Audited by PwC (Vietnam) Limited
ANNUAL REPORT 2018 www.tinnghiacorp.com.vn
103
CONSOLIDATED BALANCE SHEET
Form B 01 – DN/HN
For the fiscal year ended 31st December 2018
As at 31st December Code ASSETS
Note
2018 VND
2017 VND (As restated – Note 46)
100
CURRENT ASSETS
110
Cash and cash equivalents
2,648,578,249,080
577,412,093,818
686,805,450,514
111
Cash
271,593,927,366
182,676,204,295
112
Cash equivalents
305,818,166,452
504,129,246,219
227,534,214,331
243,190,982,832
120
Short-term investments
121
Trading securities
4(a)
6,616,661,800
6,616,661,800
123
Investments held-to-maturity
4(b)
220,917,552,531
236,574,321,032
701,223,481,202
641,466,652,651
130
Short-term receivables
131
Short-term trade accounts receivable
5
622,828,000,774
455,496,303,113
132
Short-term prepayments to suppliers
6
59,996,877,716
87,936,079,793
135
Short-term lending
7(a)
13,570,000,000
13,680,000,000
136
Other short-term receivables
8(a)
101,299,566,314
107,634,887,608
137
Provision for short-term doubtful debts
(96,808,631,763)
(23,596,934,243)
139
Shortage of assets awaiting resolution
337,668,161
316,316,380
871,012,947,216
1,038,113,970,446
899,711,748,399
1,070,632,294,822
(28,698,801,183)
(32,518,324,376)
69,453,160,321
39,001,192,637
12,362,168,902
9,551,838,592
48,703,741,109
21,896,267,669
8,387,250,310
7,553,086,376
140
Inventories
141
Inventories
149
Provision for decline in value of inventories
150
104
3
2,446,635,896,888
9
10
Other current assets
151
Short-term prepaid expenses
152
Value Added Tax to be reclaimed
153
Tax and other receivables from the State Budget
ACCOMPANY WITH PROSPERITY
11(a)
17(a)
As at 31st December Code ASSETS (continued)
Note
2018 VND
2017 VND (As restated – Note 46)
200
LONG-TERM ASSETS
210
Long-term receivables
7,961,709,287,025
6,958,524,156,374
186,051,883,592
3,782,174,825
215
Long-term lending
7(b)
58,571,812,800
1,534,665,925
216
Other long-term receivables
8(b)
127,480,070,792
2,390,915,650
219
Provision for doubtful debts – long term
-
(143,406,750)
530,170,263,028
554,780,255,769
458,850,595,149
477,291,523,026
998,848,940,507
978,605,376,566
(539,998,345,358)
(501,313,853,540)
71,319,667,879
77,488,732,743
80,727,757,412
86,031,423,082
(9,408,089,533)
(8,542,690,339)
1,169,858,895,854
855,470,283,200
1,753,177,286,543
1,363,358,099,838
220 221
Fixed assets Tangible fixed assets
222
Historical cost
223
Accumulated depreciation
227
Intangible fixed assets
228
Historical cost
229
Accumulated amortisation
230
Investment properties
12(a)
12(b)
13
231
Historical cost
232
Accumulated depreciation
(583,318,390,689)
(507,887,816,638)
240
Long-term assets in progress
5,077,319,588,526
4,885,252,885,824
241
Long-term work in progress
14(a)
2,481,636,807,219
2,334,191,691,507
242
Construction in progress
14(b)
2,595,682,781,307
2,551,061,194,317
407,616,269,358
304,587,205,754
250
Long-term investments
252
Investments in associates
4(c)
277,398,013,677
180,025,973,548
253
Investments in other entities
4(d)
131,614,894,072
125,944,894,072
254
Provision for long-term investments
4(d)
(1,396,638,391)
(1,383,661,866)
590,692,386,667
354,651,351,002
589,553,657,815
352,373,893,296
1,138,728,852
2,277,457,706
10,408,345,183,913
9,607,102,405,454
260
Other long-term assets
261
Long-term prepaid expenses
269
Goodwill
270
TOTAL ASSETS
11(b)
ANNUAL REPORT 2018 www.tinnghiacorp.com.vn
105
CONSOLIDATED BALANCE SHEET
Form B 01 – DN/HN
For the fiscal year ended 31st December 2018 (continued)
As at 31st December Code RESOURCES
Note
2018 VND
2017 VND (As restated – Note 46)
300
LIABILITIES
7,264,357,432,922
6,946,352,937,626
310
Short-term liabilities
2,588,079,384,909
3,293,763,075,402
15
348,127,159,651
277,618,846,594
311
Short-term trade accounts payable
312
Short-term advances from customers
16(a)
83,742,512,559
551,136,065,712
313
Taxes and other payables to the State Budget
17(b)
67,978,444,367
65,268,346,341
314
Payable to employees
37,013,489,525
40,698,829,383
315
Short-term accrued expenses
18
666,593,080,812
111,175,324,635
318
Short-term unearned revenue
19(a)
97,979,750,031
36,601,446,981
319
Other short-term payables
20(a)
154,728,341,508
62,208,717,257
320
Short-term borrowings
21
1,106,804,122,440
2,134,068,834,736
322
Bonus and welfare fund
23
25,112,484,016
14,986,663,763
4,676,278,048,013
3,652,589,862,224
330
106
Long-term liabilities
332
Long-term advances from customers
16(b)
174,731,356,466
141,962,746,192
336
Long-term unearned revenue
19(b)
2,825,093,905,970
2,347,660,253,700
337
Other long-term payables
20(b)
262,461,075,502
156,794,521,141
338
Long-term borrowings
21
1,360,692,413,781
925,705,640,820
341
Deferred tax liabilities
24
35,116,704,914
72,389,700,371
342
Provision for long-term liabilities
25
18,182,591,380
8,077,000,000
ACCOMPANY WITH PROSPERITY
As at 31st December Code RESOURCES (continued)
Note
2017 VND
2018 VND
(As restated – Note 46) 400
OWNERS’ EQUITY
3,143,987,750,991
2,660,749,467,828
410
Capital and reserves
3,143,908,441,854
2,660,670,158,691
2,000,000,000,000
1,558,000,000,000
2,000,000,000,000
1,558,000,000,000
411
Owners’ capital
26, 27
411a
- Ordinary shares with voting rights
412
Share premium
27
5,634,952,321
5,634,952,321
414
Owners’ other capital
27
63,992,455,484
63,992,455,484
416
Differences upon asset revaluation
27
(265,584,961,989)
(265,584,961,989)
417
Foreign exchange differences
27
7,520,757,459
9,775,213,265
418
Investment and development fund
27
49,552,895,779
26,347,252,626
420
Other funds
27
545,785,207
5,128,372,290
421
Undistributed earnings
27
25,839,861,017
78,132,734,076
421a
- (Accumulated losses)/undistributed post-tax profits of previous years
(119,353,487,075)
114,290,959,952
421b
- Post-tax profit/(loss) of current year
145,193,348,092
(36,158,225,876)
429
Non-controlling interests
1,256,406,696,576
1,179,244,140,618
79,309,137
79,309,137
79,309,137
79,309,137
10,408,345,183,913
9,607,102,405,454
430
Budget sources and other funds
431
Budget sources
440
TOTAL RESOURCES
28
Tang Tran Tan Khai Nguyen Thi Thuy Van Quach Van Duc Preparer Chief Accountant General Director 9 April 2019
ANNUAL REPORT 2018 www.tinnghiacorp.com.vn
107
CONSOLIDATED INCOME STATEMENT
Form B 02 – DN/HN
For the fiscal year ended 31st December 2018
Year ended 31st December Code
RESOURCES
Note
2017 VND
2018 VND
(As restated – Note 46 01 02
Revenue from sales of goods and rendering of services Less deductions
10,077,755,717,013
9,247,444,285,766
(4,665,415,814)
(792,403,016)
10
Net revenue from sales of goods and rendering of services
32
10,073,090,301,199
11
Cost of goods sold and services rendered
33
(9,533,701,994,054)
(8,754,818,671,611)
20
Gross profit from sales of goods and rendering of services
539,388,307,145
491,833,211,139
9,246,651,882,750
21
Financial income
34
132,783,926,972
53,785,183,737
22
Financial expenses
35
(158,086,481,340)
(138,607,602,492)
(107,748,703,056)
(121,480,882,611)
(12,613,915,754)
(12,038,812,083)
23
- Including: Interest expense
24
Share of losses of investments in associates
25
Selling expenses
36
(168,887,720,166)
(154,856,888,842)
26
General and administration expenses
37
(318,685,311,475)
(216,675,694,339)
13,898,805,382
23,439,397,120
1,104,711,276,635
77,132,409,008
(753,825,069,920)
(43,858,915,743)
350,886,206,715
33,273,493,265
364,785,012,097
56,712,890,385
(115,862,536,185)
(58,064,758,288)
37,272,995,457
5,615,165,490
286,195,471,369
4,263,297,587
145,193,348,092
(36,158,225,876)
141,002,123,277
40,421,523,463
30
Net operating profit
31
Other income
32
Other expenses
40
Net other income
50
Net accounting profit before tax
51
Business income tax – current
52
Business income tax – deferred
60
Net profit after tax
38
40 24, 40
Attributable to: 61
Owners of the parent company
62
Non-controlling interests
70
Earnings per share
30
807
(329)
71
Diluted earnings per share
30
807
(329)
Tang Tran Tan Khai Nguyen Thi Thuy Van Quach Van Duc Preparer Chief Accountant General Director 9 April 2019 108
ACCOMPANY WITH PROSPERITY
CONSOLIDATED CASH FLOW STATEMENT Form B 03 – DN/HN
For the fiscal year ended 31st December 2018 (Indirect method)
Year ended 31st December Code RESOURCES (continued)
Note
2018 VND
2017 VND (As restated – Note 46)
CASH FLOWS FROM OPERATING ACTIVITIES 01
Net accounting profit before tax Adjustments for:
364,785,012,097
56,712,890,385
02
Depreciation and amortisation
130,144,097,753
105,902,120,811
03
Provisions
79,367,335,482
29,741,231,462
04
Unrealised foreign exchange losses
927,226,779
872,453,775
05
Profits from investing activities
(79,624,815,165)
(15,955,254,055)
06
Interest expense
107,748,703,056
121,480,882,611
603,347,560,002
298,754,324,989
(330,645,744,572)
493,232,760,369
(89,774,569,289)
(178,343,560,092)
875,962,655,719
929,883,320,873
08
Operating profit before changes in working capital
09
(Increase)/decrease in receivables
10
Increase in inventories
11
Increase in payables
12
Increase in prepaid expenses
(190,159,212,690)
(296,471,294,800)
13
Decrease in trading securities
-
1,296,850,000
14
Interest paid
(104,349,601,129)
(124,635,746,818)
15
Business income tax paid
(74,069,245,501)
(64,509,293,640)
17
Other payments on operating activities
(13,757,074,972)
(26,898,410,986)
20
Net cash inflows from operating activities
676,554,767,568
1,032,308,949,895
(481,069,640,081)
(716,535,665,400)
1,980,106,426
-
(58,571,812,800)
(141,441,320,257)
17,301,434,426
1,963,281,145
(18,183,179,000)
(93,456,866,480)
15,777,223,117
155,953,583,250
109,005,782,182
27,161,877,732
(413,760,085,730)
(766,355,110,010)
CASH FLOWS FROM INVESTING ACTIVITIES 21
Purchases of fixed assets and other long-term assets
22
Proceeds from disposals of fixed assets
23
Loan granted and term deposits
24
Collection of loans and term deposits
25
Investments in other entities
26
Proceeds from divestment in other entities
27
Dividends and interest received
30
Net cash outflows from investing activities
ANNUAL REPORT 2018 www.tinnghiacorp.com.vn
109
CONSOLIDATED CASH FLOW STATEMENT For the fiscal year ended 31st December 2018 (Indirect method) (continued)
Form B 03 – DN/HN
Year ended 31st December Code ASSET
Note
2017 VND
2018 VND
(As restated Noted 46) CASH FLOWS FROM FINANCING ACTIVITIES 31
Proceeds from shares issuance
442,000,000,000
40,937,302,880
33
Proceeds from borrowings
8,422,245,702,535
8,383,338,306,900
34
Repayments of borrowings
(9,014,966,186,114)
(8,633,396,182,720)
36
Dividends paid
(221,115,293,714)
(129,858,838,661)
40
Net cash outflows from financing activities
(371,835,777,293)
(338,979,411,601)
50
Net decrease in cash and cash equivalents
(109,041,095,455)
(73,025,571,716)
60
Cash and cash equivalents at beginning of year
686,805,450,514
759,797,673,961
(352,261,241)
33,348,269
577,412,093,818
686,805,450,514
61
Effect of foreign exchange differences
70
Cash and cash equivalents at end of year
3
3
Major non-cash transactions in the year are disclosed in Note 42.
Tang Tran Tan Khai Nguyen Thi Thuy Van Quach Van Duc Preparer Chief Accountant General Director 9 April 2019
110
ACCOMPANY WITH PROSPERITY
TIN NGHIA DETERMINES ITS DEVELOPMENTS FOR 2019 WITH CONTINUED FOCUS ON THE MAJOR BUSINESS LINES; CONTINUES TO BOTH PROMOTE ADVANTAGES AND FAVORABLE CONDITIONS AND OVERCOME LIMITATIONS AND SHORTCOMINGS IN THE SYSTEM; MAINTAINS THE SCALE, GROWTH RATE AND EFFICIENCY IN PRODUCTION AND BUSINESS ACTIVITIES.
96 Ha Huy Giap Street, Quyet Thang Ward, Bien Hoa City, Dong Nai Province, Vietnam (84-251) 3822 486 (84-251) 3823 747 info@tinnghiacorp.com.vn tinnghiacorp.com.vn