CONSOLIDATED FINANCIAL STATEMENT THREE-MONTH PERIOD ENDED 31 DECEMBER 2020 JANUARY 2021a aA HOA PH aon FoR sont Deora Form B01~ DN/HN (soe under Circular No. 202201477 BTC ted 22 December 2014 of Mansy of Finance) CONSOLIDATED BALANCE SHEET ‘As at 31 December 2020 31 Dec 2020 1 Jan 2020 cone ee VND VND ASSETS Current assets eosin eatin as ioe 100 56,800,328,871,828 30,436,936,909,894 Cash and cash equivalents 10 Val 13,001,001,772,826 4,544,900282.204 Cash mn 2,04,316,772,526 1,678,314,252,204 Cash equivalents 112 10,906,685,000,0002,866,586,000,000 F Short-term financial investments 120 8,822,092,673380 1374,340,352,910 Held-to-maturity investments 123 V2 ——8822,092,675,380 1,374,340,352.910 Accounts receivable ~ short-term 130 6,124,790,460.291 _3,561,397,190,688 Accounts receivable from customers 131 v3 3,949,486,943,250 _2,699,937,350,329 Prepayments to supplies 132 1/303,037,835,629757,832,561,191 Other short-term receivables 136 v4 '910,365,502,671 139.273.246.353 Allowance for doubtful debts 137 (69,336,197,606) _(37,145,790,132) Shortage of assets awaiting resolution 139 1,236,376,147 1,499,823,947 Inventories 140 VS 26,286,822,229,20219,411,922,748,095, Inventories Mt 26,373,360826,788 _19,480,666,530,260 Allowance for inventories M49 (86,538,597,586) _(68,743,782,165) Other current assets 150 2,565,621,734,429 _1,544,376,365,997 Short-term prepaid expenses 151 194,466,215434 —_'118,551,289,085 Deductible value added tax 132 2,387338.716995 _1,400,159,900,793 ‘Taxes and other receivables from the State eo 153 13,816,802,000—_25,665,176,119 Lee eee ! HOA PHAT GROUP JOINT STOCK COMPANY ‘Address: Pho Noi A industrial Zone, Giai Pham Ward, Yen My, Hung Yen Province, Vietnam VPGD: 66 Nouyen Du, Nguyen Du Ward, Hai Ba Trung District, Hanel, Vietnam DT: (484 24) 3628 2011 | F: (+84 24) 3974 7753 www. hoaphat.com.vnA 4a HOA PHAT ctr ona cere Form BO1-DNIN (sue ner Cicer No, 20222014TF BTC dlted 22 December 2014 ofthe Ministry of Fane) CONSOLIDATED BALANCE SHEET - CONTINUED ‘As at 31 December 2020 31 Dec 2020 1 Jan 2020 Code Note wND say Non-current assets Poo wee, © 74,711,108,023,19271,339,093,190,006 ‘Accounts receivable — long-term 210 305,165,547,431 27, 717,594,984 Long-term loan receivable 215 96,007,238,800 4,910,346,000 (Other long-term receivables 216 v4 209,158,308,631 —-22,807,.248,984 Fixed assets 220 65,561,657,180,137 31,249,493,917,960 “Tangible fixed assets 221 V7 65,307,819,877,543 30,980,122,434,704 Cost 22 82,616,810, 188,587 43,804,940, 121,895 Accumulated depreciation 223 (17,308,990,311,344) (12,824,817,687,191) Intangible fixed assets 27 V8 253,837,302,594 269,371,483,256 Cost 228 342,995,279,178 _339,570,963,463 Accumulated amortisation 229 (89,157,976584) _(70,199,480,207) Investment properties 230 V9 364,296,973,801 _576,616,510,917 Cost 231 681,931,844, 756 663,239,742,390 Accumulated depreciation 232 (117,634,870,955)_(86,623,231,473) Long-term work in progress 240 6,247,213,506,994 _37,435,320,467,014 [Long-term work in progress 241 918,470,731,946 _750,146,398,723 Construction in progress 242 V6 ——_5,328,742,775,048 36,685,174,068,291 Long-term financial investments 250 171,085,206311 _48,794,216,642 Investments in joint ventures and associates 252 385,206,311 (1,431,313,615) Equity investments in other entities 253 700,000,000 700,000,000 Heldeto-maturty investments 255 V2 170,000,000,000_46,525,530,257 Other long-term assets 260 1,861,689,608,518 _2,004,150,482,489 Long-term prepaid expenses 261 VO 1,593,026,349,829 _1,680,738,623,090 Deferred tax assets 262 225,353,308,024 292,226,687,882 Goodwill 269 Vil 43,109,950,665_61,185,171,517 due iererhd 270 131,511,436,895,020 101,776,030,099,900 HOA PHAT GROUP JOINT STOCK COMPANY Address: Pho Noi A Industrial Zone, Giai Pham Ward, Yen My, Hung Yen Province, Vietnam YPGD: 66 Nguyen Du, Nguyen Du Ward, Hai Ba Trung District, Hanoi, Vietnam BT: (+84 24) 3628 2011 | F: (+84 24) 3974 7753 warw-hoaphat.com.vn Beye WSacter reno penton Form B 01 — DNIAIN (lieved seer Ciealr No. 2022200071-8T0 wed 22 December 2014 of te Minis of Finance) CONSOLIDATED BALANCE SHEET - CONTINUED ‘As at 31 December 2020 31 Dee 2020 1 Jan 2020 amitsiaa VND VND RESOURCES LIABILITIES (300 = 310 +330) 300 72,291,648,089,10353,989,393,956,205 Current liabilities 310 51,975,217,453,875 _26,984,198,187,977 Accounts payable to suppliers 311 10,915,752,723,952 _7,507,198,913,115 “Advanies from customers 312 1,257,272,765,123 408,691,837,688 i other payables to the State 313 VAI2 548,579,267,830 -478,426,384,718 Payables to employees 314 313,099,678,402._247,936,926,136 Short-term accrual expenses 315 V3. «6 40,129,684,182 429,777,297,411 Short-term uneamed revenue 318 34,564,307.818 _27,406,111,996 Other short-term payables 319 Vd ——__328,061,400,351—_-237,391,747,239 Shor-term borrowings 320 36,798,465,672,104 16,837,653,470.387 Shor-term provisions 321 vais 5,846,534,626 3,111,122,885 Bonus and welfare fund 322 1,133,445,419,487 _806,604/376,402 Long-term 8 330 20,316,430,635,228 27,005,195,768.228 ‘Accounts payable to suppliers 331 24637,987,658,239 6,652,492,138,554 Long-term accrual expenses 333. V3 -223,664,493,846——-427,328,992,030 Long-term unearned revenues 336 16 127,650,192 31369,818,100 Other long-term payables 337 Vid 68,736,086,170_$8,387,110,781 Long-term borrowings 338 17343,247551512 19,842,099,219,720 Deferred tax payable 3a 666,262,529 1,104.751,459 Long-term provisions 32 VAS 26,000.932,740 20,413,737,584 SeenON : HOA PHAT GROUP JOINT STOCK COMPANY Address: Pho Noi A industrial Zone, Giai Pham Ward, Yen My, Hung Yen Province, Vietnam VPGD: 66 Nguyen Du, Nguyen Du Ward, Hai Ba Trung District, Hanoi, Vietnam BT: (+84 24) 3628 2011 | F: (+84 24) 3974 7753 www hoaphat.com.vn Weaa an HOA PHAT anuctr Fomor veo Form 801 -DN/IN (lsc ander Circular No 2022010T7-2TC dated 22 December 2014 af the Mistry of Finance) CONSOLIDATED BALANCE SHEET - CONTINUED As at 31 December 2020 31 Dec 2020 1 Jan 2020, Cote Nate 312 an20 EQUITY (400 = 410) 400 59,219,788,805,917 _ 47,786,636,143,695 Owner’s equity 410 V6 59,219,788,805,917 — 47,786,636,143,695 ‘Share capital ALL 33,132,826,590,000 — 27,610,741,150,000 Ordinary shares with voting right 4ila 33,132,826,590,000 — 27,610,741,150,000 opin pn a s2lissoai62™ aaltsebalezD Foreign exchange differences 47 5,568,369,072 565,534,994 Investment and development fund 418 928,641,612,156 923,641,612,156 Retained profits 421 21,783,390,780,083 — 15,876,913,750,948 - Retained profit brought forward 42la 17,145,536,194,786 8,349,470,883,074 = Retained profit for the current period 4216 4,637,854,585,297 7,527,442,867,874 ‘Non-controlling interest 429 157,801,038,336 163,213,679,327 TOTAL RESOURCES (440=300 + 400) 440 131,511,436,895,020 101,776,030,099,900 Preparer Mi i ‘Tran Xuan Mai Pham Thi Kim Oanh MR i HOA PHAT GROUP JOINT STOCK COMPANY Address: Pho Nol A industrial Zone, Gial Pham Ward, Yen My, Hung Yen Pravinee, Vietnam \VPGD: 66 Nguyen Du, Nguyen Ou Ward, Hai 8a Trung District, Hanci, Vietnam BT: (+84 24) 3628 2011 | F: (+84 24) 3974 7753 ° wwwcheaphat.com.vna 4a HOA PHAT s eW Ueny ULL eed rar samp, 0¢ Nig Sse‘s9e‘sos‘os ‘SSL A106 €L0'99€9 ‘TST'S68'998'7C 3 JOxOD-UOU C3 aIqEINGUIY PLELOBTPPLTSL — 6S6'869°SLO'8E' a S66°9ES'SOO'LIG'| —L6T'SBS*PS8‘LEO"E 19 ‘suapjoy Aanba s,Auedwo juared 03 oquinquAy GIUETSPTSLS'L FILOSSO9T'90S'CT — TOG‘OIG'ILE EET orS*OSHIZL‘099'r 9 (5-15-0509) 18 s2y8 WoMd PN (ezs‘oco'ves'va) — 6ze'06e'rec'99 —(i8I"0r9"e0s'e) —_tor‘esc‘esi'ZzI zw aout 0) ouroour pausa}2c] Oss'sze'Lor'eos'l ogc'sgo'zes‘zae'| e6'LLE'STY'ILE —_HEL‘LCO'PHE'LS Is asuodxo xe) ou yuBIIN 98C'CTI'Z99'960'6 CO6'SES'EESESE'SI FIO'SSO'NES STZ HEL‘LEToFCOEE'S os (or+0¢-08) 9 230529 JHoUd SuNUNODOY GLU'vsr'ze9's9 —Pre"Toe'sos's9 §——ZLS‘L0e'887'9T or (ze-1e=09) 1yosd 120, 86T'LYT'866 16S LIV90ETLZ‘68S ‘pSS‘0S6'799'SLI ee sosuadxa 19410 LLY‘IE6'089'LS9 T9B‘L69"LLL'YS9 9TI'RST'ISO'I6L 1L0°S69‘F6r'ZL1 le SUIS IYO) U IE PEPYD —_OOTI>G TEPEPPID HON 9POD gegss © papua 489% Pepue a9, pollod yyuow-aosy), poued yuom-aaaqy, Eg233 i 0207 12qui200¢T 1¢ popuo poliod ypuow-ca.tp a4 40 459-2 2esas LNGINALV.LS SWOONI GS.LVOITOSNOD (aun fo asayy fo re 9ma00g zc PP DuaLLrtace0e 2219 2pm pon) NiuNa~z0e togA — HOA PHAT nach Fon cr bewomvet Form B03 DNIHN (leone der Ciealr No. 20220147 PTC dated 22 December 2014 ofthe Minssry of France) CONSOLIDATED STATEMENT OF CASH FLOWS (Indirect method) For the year ended 31 December 2020 Year ended Year ended Code Note 31 Dee 2020 31 Dee 2019 vND ND CASH FLOWS FROM OPERATING ACTIVITIES Profit before tax o 15,354,933,535,903_9,096,662,123,386 ‘Adjustments for Depreciations and amortisations 2 4,798,664,198,100 _2,593,232,573,009 Allowances and provisions 03 28,314,185,442 (5,772,614,376) Exchange (gains/loss arising from revaluation of monetary items denominated 04 52,869,910,972 24,183,514,856 in foreign currencies (Gainsy/loss from investments os (527,610,046,005) __(286,185,193,464) Interest expense 06 2,207,297,067,268 __936,710,218,359 pies profit before change inworking — ga 21,914,468,851,680 _12,358,830,621,790 Change in receivables 09 (6.498,165,854,666) _(288,519,564,021) Change in inventories 10 (7,061,024,985,401) _(5,132,237,172,021) Change in payables and oter liabilities " 1,737,154,618,998 3,556,689,268,254/ Change in prepaid expenses 2 (15,248,416439) 476,974,345) Interest paid 4 (2,030,972,429,884) _(867,276,241,172) Income tax paid 15 (1,714,077,936,702) _(1,551,743,688,539) ther payments for operating activities 0 628,363,376,705)___(52,057,555,830) Net cash flows from operating activities 20 9,003,770,470,881 _7,715,168,694,116 CASH FLOWS FROM INVESTING ACTIVITIES Payments for additions to fixed assets and other long-term assets a (0,370,234,306,842) (20,825,371,574,660) Proceeds from disposals of fixed assets and 5 Seaiged sap 26,937,572033 other long-term assets 819,307; al Payments for purchase of debt instruments 5 (12,648,955,968,571) (4,467,553,072,509) of other entities Receipts from collecting loans, sales of debt Receipt tor eoflacting oe 4 4,986,124,143,558_ 6,832,224,480,334 Receipts of interests on term deposits and leans, dividends and distributed profit 2 392,500,423,931 _369,546,551,545 received [Net cash lows from investing activites 30 (16,604,746,400,423) (18,064,216,043,257) , *ceasanssEnENSEEsEEEsssus reeves eostssreevTInnOSTIODODE . HOA PHAT GROUP JOINT STOCK COMPANY ‘Address: Pho Noi A industrial Zone, Giai Pham Ward, Yen My, Hung Yen Province, Vietnam VPGD: 66 Nguyen Du, Nguyen Du Ward, Hal Ba Trung District, Hanoi, Vietnam BT: (+84 24) 3628 2011 | F: (+84 24) 3974 7753 www.heaphat.com.vnHOA PHAT ‘aneonFon on osvomet Form B03—DNIHN (sed under Creal No. 20220147 7-TC dated 22 December 2014 ofthe Minis ef France) CONSOLIDATED STATEMENT OF CASH FLOWS - CONTINUED (Indirect method) For the year ended 31 December 2020 Year ended Year ended 31 Dee 2020 31 Dee 2019 ND ND CASH FLOWS FROM FINANCING ACTIVITIES Proceeds from equity issued, capital contributed by non-controlling shareholders 3! 3,700,000,000 85,000,000 Proceeds from borrowings 3 81,625,368,485,716 _67,944,184,644,118 Payments to settle loan prineipals 34 (64,197,591,086,774) _($5,553,681,828,677) Payments of dividends 36 (1,419,473,748,758) (12,646, 859,136) [Net cash flows from financing activities 40. 16,051,003,650,184 _12,377,940,956,305 Net eash flows during the period (50=20 oe) 50 8,450,027,720,642 _ 2,028,893,607,164 Cash and cash equivalents at the beginning cohen oo 4544,900,252,204 2,515,617,135,457 Effect of foreign exchange rate fluctuations 61 6,073,799,680 389,509,583 \Carhisad exalt eautvalents ut ibe 70 V1 13,001,001,772,526 _4,544,900,252,204 end of the year (70 = 50+ 60+ 61) Preparer Chief Accountant Pfam Thi Kim Oanh, Fra Tuan Duong SS ESseSSSSS SSS sSve rv essseE NOPE ESEEIESEESEEOEEEEEE if HOA PHAT GROUP JOINT STOCK COMPANY Address: Pho Noi A industrial Zone, Gia Pham Watd, Yen My, Hung Yen Province, Vietnam VPGD: 66 Nguyen Du, Nguyen Du Ward, Hai Ba Trung District, Hanoi, Vietnam BT: (+64 24) 3626 2011 | Fi (+84 24) 39747753 wnwhoaphet.com va dal & ABA VonA ax HOA PHAT sansa ronson bevenet Form B04 —DNEN (deed under Ciealar No. 2022014/T7-BTC ated 72 December 2014 ofthe Ninisry of Foxance) NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 1. Reporting entity’s features 1. Form of ownership Hoa Phat Group Joint Stock Company (“the Company”) is incorporated as a joint stock company in Vietnam. The consolidated financial statements of the Company comprise the Company and its subsidiaries (together referred to as “the Group”) and the Group's interest in associates, 2. Principal activities - Office leasing; + Financial investments; = Integrated investment and construction of infrastructures, industrial zones and urban zones; - Manufacturing of furniture for offices, households and schools; = Timber production and processing; = Manufacturing of mechanical products (mainly construction machinery, office desks, chairs and cabinets); ~ Leasing machines, equipment and motor vehicles; = Dealing in automobiles, motorbikes, equipment, parts for transport and mining sectors, transport vehicles; - Production and trading of construction and mining machineries; = Dealing in electrical, electronic appliances, optical and medical equipment; = Production, trading, assembly, installation, repair and maintenance of electrical, electronic, electrical refrigeration and civil electrical appliances and air-conditioners; : + Production and trading of raw materials and plastic products; ; - Advertisement; = Civil and industrial construction: : = Exploitation of sand, stones and gravel; = Production, trading and assembly of furniture products and construction equipment; : = Real estate trading (excluding land price consultancy); Domestic and foreign investment advisory (excluding lw advisory); = Production and trading of non-ferrous metal and non-ferrous metal scraps; + Trading and export and import of steel and supplies for steel making and rolling; = Production of rolled stee! products and roofing sheets; ~ Exploitation of metal ores; = Trading metals, metal ores, iron and stee! scraps; ~ Making cast iron and steel, and casting cast iron, iron and steel; Production of plated and non-plated steel pipes and ino pipes; = Production and trading of galvanized stee! sheet, color coated steel sheet and galvalum steel she = _ Rendering sports and gymnastics services (training, competition organisation, athlete transfer); = Building and renting sports practice ground and competition ground; = Entrusted export-import activities; = Raising pigs, cows, poultry, other animals and provision of raising services; ~ Processing and preserving meat and meat products; = Producing feeds for cattle, poultry and aquaculture sector; eee este 8 HOA PHAT GROUP JOINT STOCK COMPANY Address: Pho Noi A industrial Zona, Giai Pham Ward, Yen My, Hung Yen Province, Vietnam VPGD: &6 Nguyen Du, Nguyen Du Ward, Hai Ba Trung District, Hanoi, Vietnam BT: (+84 24) 3628 2011 | F: (+84 24) 3974 7753 www-hoaphat.com.vna an HOA PHAT asohrFon cnr cevoment Form 8.054 DNAIN (lve under Crealr No. 202201077 BTC dred 22 December 2016 ofthe Minis of Fiance) NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED = Producing fertilizer and nitrogen compounds + Trading agricultural equipment, machineries and accessories; and = Coastal, in land water way and ocean transportation. 3. Normal operating eyele ‘The normal operating eycle of the Group is generally within 12. months. Group structure ‘Number of subsidiaries consolidated 4 ‘Number of subsidiaries which is not consolidated 0 Rate of Rate of — Group’s h a 's—votn fs * Subsidiaries Tier 1 = z 1 Hoa Phat Iron and Steel JSC 99.99% 99.99% ‘Address: 66 Nguyen Du street, Nguyen Du ward, Hai Ba Trung district, Hanoi cit \ Vietnam, 2 Hoa Phat Steet Pipe and Steel Sheet JSC 99.95% 99.99% Address: 66 Nguyen Du street, Nguyen Du ward, Hai Ba Trung district, Hanoi ci Vietnam. 3 Hoa Phat Real Estate Development JSC 99.90% 99.90% ‘Address: 66 Nguyen Du street, Nguyen Du ward, Hai Ba Trung district, Hanoi city, > Vietnam, x 4 Hoa Phat Hung Yen Steel Co,Ltd 100.00% — 100,00% ‘Address: Pho Noi A industrial zone, Giai Pham commune, Yen My district, Hung Ar Yen province, Vietnam. N 5 Hoa Phat Hai Duong Stee! JSC 999% 99.9% AT ‘Address: Hiep Son commune, Kinh Mon district, Hai Duong provinee, Vietnam. at 6 Hoa Phat Dung Quat Steel JSC 99.99% 99.90% 3S ‘Address: Dung Quat economical zone, Binh Dong commune, Binh Son district, Quang Ngai province, Vietnam. 7 Hoa Phat Metal Producing Co., Ltd 99.88% 99.88% ‘Address: No 39 Nguyen Dinh Chieu, Le Dai Hanh ward, Hai Ba Trung district, Hanoi city, Vietnam. 8 An Thong Mineral Investment JSC 99.96% 99.96% ‘Address: No 415, Tran Phu street, Tran Phu ward, Ha Giang town, Ha province, Vietnam. 9 Hoa Phat Steel Pipe Co., Ltd 997% 99.97% ‘Address: No 39 Nguyen Dinh Chieu, Le Dai Hanh ward, Hai Ba Trung district, Hanoi city, Vietnam. 10 Hoa Phat Steel Sheet Co., Ltd 100.00% 10.00% Address: El street, zone E, Pho Noi A industrial zone, Lac Dao commune, Van Lam district, Hung Yen province, Vietnam. _ 5 HOA PHAT GROUP JOINT STOCK COMPANY Address: Pho Noi & industrial Zone, Giai Pham Ward, Yen My, Hung Yen Province, Vietnam \VPGD: 66 Nguyen Du, Nguyen Ou Ward, Hai Ba Trung District, Hanoi, Vietnam DT: (484 24) 3628 2011 | F: (+84 24) 3974 753 www hoaphat.com.vaa an HOA PHAT uv FoR one eon Form 8.09 DNIHIN (lee under Creat No. 20220147787 oted 22 December 2014 ofthe Nin of Fnanee) NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED Rate of Rate of Group's, cee Ee eee Group’s voting Subsidiaries Tier 1 teh 11 Hoa Phat Agriculture Development JSC 99.99% 99.99% ‘Address: Pho Noi A Indust Yen province, Vietnam. 12 Hoa Phat Furniture JSC 99.60% 99.60% Address: B4 street, zone B, Pho Noi A industrial zone, Lac Hong commune, Van Lam district, Hung Yen province, Vietnam. 13 Hoa Phat Refrigeration Engineering Co., Ltd 9.67% — 99.67% ‘Address: Giai Pham commune, Yen My district, Hung Yen province, Vietnam, 14 Hoa Phat Urban Development and Construction JSC 99.85% — 99.85% ‘Address: No 39 Nguyen Dinh Chieu, Le Dai Hanh ward, Hai Ba Trung district, Hanoi city, Vietnam. zone, Giai Pham commune, Yen My district, Hung Il Accounting period and currency. 1, Annual accounting period of the Group is from 1 January to 31 December. ae 2, Accounting currency of the Group is Vietnam Dong (“VND”). IIL, —_Underlying reporting standards and policies. 1. Accounting policies ‘The Group applies Circular 200/2014/TT-BTC dated 22 December 2014 by MOF on guidelines for accounting system for enterprises and Circular 202/2014/TT-BTC date 22 December 2014 by MOF on guidelines for preparation and presentation of consolidated financial statements. i 2. Declaration of compliance with Accounting Standards and System. es ‘The consolidated financial statements are prepared in accordance with Vietnamese Accounting Standards, Vietnamese Accouting System for Enterprises and relevant statutory requirements applicable to preparation and. presentation of interim financial statement. IV. Applicable accounting policies. 1. Applicable foreign exchange rate Monetary assets and liabilities denominated in currencies other than VND are respectively translated into VND at average bid and offer rate at reporting dated quoted by the commercial bank where the Group most frequently ‘conduct its transactions. Transactions in currencies other than VND during the year have been translated into VND at actual rates of exchange ruling atthe transaction dates. _ EEDEnnSHEEEBINEDESENTED/ENED/;ENTED# ENEEDESNIEDEIETE 10 HOA PHAT GROUP JOINT STOCK COMPANY Address: Pho Noi A industrial Zone, Giai Pham Werd, Yen My, Hung Yen Province, Vietnam VPGD: 66 Nguyen Du, Nguyen Ou Ward, Hai Be Tung District, ano, Vietnam a DT: (+8 2a) 3626 2011 | F: (+84 24) 39787753, wn hoaphat.com.vna aa HOA PHAT eer oR A LONE Form B 022—DNIN (sued wer Creator No. 202201477-BTC dared 22 Dcenber 2014 ofthe Mistry of Parc) NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED 2. Prineiptes of recognition of eash and cash equivalents Cash comprises cash balances and call deposits. Cash equivalents are short-term highly liquid investments that are readily convertible to known amounts of cash, are subject to an insignificant risk of changes in value, and are held for the purpose of meeting short-term cash commitments rather than for investment or other purposes. 3. Principles of recognition of receivables ‘Trade and other receivables are stated at cost less allowance for doubtful debts. Allowance for doubtful debts is established for amount of outstanding receivables at the balance sheet date which are overdue more than 6 months or are doubtful of recovery. Increases and decreases to the allowance for doubtful debts balance are recorded as general and administration expense account in the consolidated statement of income, 4. Principles of recognition of inventories Recognition principle: Inventories are recognised at the lower price between cost and net realisable value. ‘Measurement method: Weighted average method Recording method: Regular filing Method of allowance: Allowance for inventories is established for the estimated losses arising due to the impairment of value (through diminution, damage or obsolescence) of inventories owned by the Group, based (on appropriate evidences of impairment available at the balance sheet date. Increases and decreases to the allowances for inventories balance are recorded as cost of goods sold account in the consolidated statement of income. 5. Principles of recognition of fixed assets Recognition: Fixed assets are stated at cost less accumulated depreciation. ‘The consolidated balance sheet state 3 items: Cost, accumulated depreciation, carrying value Depreciation method: Straight-line basis method. 6. Principles of recognition of investment properties Recognition: Investment property held to earn rental is stated at cost less accumulated depreciation. The initial ‘cost of an investment property held to earn rental comprises its purchase price, cost of land use rights and any directly attributable expenditures of bringing the property to the condition necessary for it to be capable of operating in the manner intended by management. Depreciation method: Straight-line basis method. 7. Principles of recognition of finan estments ‘Subsidiaries: the entities are under the control of the Group. Subsidiaries’ financial statements are included in consolidated financial statements from the date that control commences to the date that control ceases. eee n HOA PHAT GROUP JOINT STOCK COMPANY Address: Pho Noi A industrial Zone, Gial Pham Werd, Yen My, Hung Yen Province, Vietnam \VPGD: 66 Nguyen Du, Nguyen Du Ward, Hai Ba Trung District, Hanoi, Vietnam BT: (+84 24) 3628 2011 | F: (+84 26) 3974-7753 vw heaphat.com.vaa aa HOA PHAT asc For a on iomen Form 8 098 ~ NAN (lsued under Cieuar No. 2022010 T7-BTC dated 22 December 2014 ofthe Ministry of France) NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED. Associates: are consolidated using equity method, that initial investment is recognised at cost and subsequently adjusted for changes in the Company’s share of the net assets of the associates after the acquisition. 8. Principles of recognition and capitalization of borrowing costs Borrowing cost are recognised as an expense for reporting period in which they are incurred, except for the borrowing cost relate to borrowings in respect of construction of qualifying assets, in which case the borrowing cost incurred during the period of construction are capitalized as part of cost of the assets concerned. 9. Principles of recognition of prepaid expenses, goodwill Prepaid expense: Prepaid expenses comprise short-term and long-term prepaid expenses stated in balance sheet, Prepaid expenses are allocated by time of prepayment corresponding to economical benefit generated from these expenses. Goodwill: Goodwill arises on the acquisition of subsidiaries. Goodwill is measured at cost less accumulated amortisation. Cost of goodwill represents the excess of the cost of the acquisition over the Group’s interest in the net fair value of the identifiable assets liabilities and contingent liabilities of the acquiree. When the excess is negative (gain from bargain purchase), it is recognised immediately in the consolidated statement of income. Goodwill arising on acquisition of a subsidiary is amortised on a straight-line basis over no more than 10 years. 10. Principles of recognition of provisions {A provision is recognised if, asa result of a past event, the Group has a present legal or constructive obligation that can be estimated reliably and it is probable that an outflow of economic benefits will be required to settle the obligation. Provisions are determined by discounting the expected future cash flows at a pre-tax rate that reflects ‘current market assessments ofthe time value of money and the risks specific tothe liability. 11, Principles of recognition of equity Recognition of owners’ equity, capital surplus, other capital: Recognised at actual contributed value. Recognition of retained profit: is the accumulated profit after income tax. 12, Principles of recognition of revenue and other incomes Revenue from sales of goods: Revenue from the sale of goods is recognised in the consolidated statement of income when the significant risks and rewards of ownership have been transferred to the buyer. No revenve is recognised if there are significant uncertainties regarding recovery of the consideration due or the possible return of goods. Revenue on sales of goods is recognised at the net amount after deducting sales discounts stated ‘on the invoice. Revenue from provision of services: Revenue from services rendered is recognised in the consolidated statement of income in proportion to the stage of completion of the transaction at the balance sheet date. The stage of completion is assessed by reference to surveys of work performed. No revenue is recognised if there are significant uncertainties regarding recovery of the consideration due. Revenue from sublease of leasehold land and rental income: Rental income from leased property is recognised in the consolidated statement of income on a straight-line basis over the term of the lease. Lease incentives ‘granted are recognised as an integral part of the total rental income. Iacocca 2 HOA PHAT GROUP JOINT STOCK COMPANY ‘Address: Pho Noi A industrial Zone, Giat Pham Ward, Yen My, Hung Yen Province, Vietnam VPGD: 66 Nguyen Du, Nguyen Du Werd, Hai Ba Tung District, Hancl, Vietnam OT: (484 24) 3628-2011 | F: (+84 28) 3974 7753, www hoaphaticam.vna az HOA PHAT nc FoR ob DevOMe Form 094 DNIIN (lowed ner Cirealar No. 2022201877: 8TC dad 22 December 2014 ofthe Minis of Pounce) NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED Revenue from sales of apartments: Revenue from the sale of apartments is recognised in the consolidated statement of income when the significant risks and rewards of ownership have been transferred to the buyer. No revenue is recognised if there are significant uncertainties regarding recovery of the consideration due. The transfer of significant risks and rewards is determined to be at the time of completion and hand over of the apartments. Interest income: Interest income is recognised on a time basis with reference to the principal outstanding and the applicable interest rate. en aeennHnnD EP IETEPENEEnEoon OD USED 13 HOA PHAT GROUP JOINT STOCK COMPANY Address: Pho Nol A industrial Zone, Gai Pham Ward, Yen My, Hung Yen Province, Vietnam VPGD: 66 Nguyen Ou, Nguyen Du Ward, Hal ba rung Distret, Hanoi, Vietnam Dr: (94 24) 3628 2011 |: (486 24) 3974-7753, two hoaphat.com.vna an HOA PHAT Form 8 094 — DNAIN (loved under Circular No. 20222014 TC dave 22 December 2014 ofthe Misr of France) NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED Y. NOTES TO CONSOLIDATED BALANCE SHEET 1. Cash and cash equivalents 31 Dec 2020 1 Jan 2020 VND ND. Cash on hand 13,883,912,772 16,566, 142,092 Cash in banks 2,080,395,090,754 _1,661,725,195,112 Cash in transit 37,769,000 22,915,000 Cash equivalents 10,906,685,000,000 _2,866,586,000,000 Total 13,001,001,772,526 _4,544,900,252,208 2, Held-to-maturity investments 31 Dee 2020 1 Jan 2020 Cost Fair value Cost Fair value ND ‘VND ND VND Held-to-maturity investments ~ short-term * Term deposits _8,822,092,675,380_ _8,822,092,675,380_1,374,340,352,910 _1,374,340,352,910 8,822,092,675,380__ 8,822,092,675,380 1,374 340,352,910 _1,374,340,352,910 Held-to-maturty investments — long-term * Term deposits 150,000,000,000 _150,000,000,000 26,525,530,287 _26,525,530,257 * Bonds 20,000,000,000 20,000,000,000 20,000,000,000 _20,000,000,000 ¥70,000,000,000____170,000,000,000 46,525,530,257 __46,525,530,257 3. Accounts receivable from customers 31 Dec 2020 1Jan 2020 Value Allowance Value Allowance VND ‘VND VND VND Accounts receivable from customers ~short-term pelea 3,949,486,943,250 (37,136,197,606) _2,699,937,350,329 (34,945,790,132) customers Total 49,486,943,250 _37,136197,606) _2,699,937,350329 _ 4,945,790,132) X 4 HOA PHAT GROUP JOINT STOCK COMPANY Address: Pho Noi A industrial Zone, Giai Pham Ward, Yen My, Hung Yen Provinee, Vietnam \VPGD: 66 Nguyen Du, Nguyen Du Ward, Hai Ba Trung Distriet, Hanoi BT: (+84 24) 3628 2011 | F: (+84 24) 3974 7753 wow hoaphat.com.vn i, Vietnam {a an ner ere (lued under Crear No. 202201477T-BTC dened 22 December 2014 ofthe Mins of Finance) NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED 4. Other receivables 31 Dee 2020 1 Jan 2020 Value Allowance Value Allowance ND ‘ND ND ND Other receivables — short-term Interest receivables 198,641,475,218 = 33,200,395,079 - Others 711,724,027,453_(2,200,000,000) _106,072,851,274 —_(2,200,000,000) Total 910,365,502,671 __(2,200,000,000)__139,273,246,353 __(2,200,000,000) Other receivables —long-term Collaterals 208,726,314,243 = 22,700,090,991 - Others 431,994,388 : 107,157,993 : 3 Total 209,158,308,631 22,807,248,984 5. Inventories, i 31 Dec 2020 1 Jan 2020 Cost Allowance Cost Allowance VND VND VND VND ‘ Goods in transit 4,172,345,938,501 = 2,871,139,551,905 - _ Raw materials 11,887,569,381,304 _(2,937,448,687) _7,383,025,663,389 _(3,877,969,713) Tools and supplies 1,768,683,803,586 _(1,330,489,342) 2,101,425,673,044 (5,840, 805,888) Work in progress 2,347,196,486,102 _(66,002,922,445) _1,573,282,308,451 _(28,311,250,423) Finished goods 5,528,311,739,211 (12,246,928,708) 4,489,362,757,309 _(13,381,769,149) easrened 477,033,963,707 _(4,020,808,404)_741,358,297,568 _(17,331,986,992) ‘Goods on 192,219,514,377 = 321,072,278,594 : ‘consignment Total 26,373,360,826,788 _ (86,538,597,586) _19,480,666,530,260 _(68,743,782,165) X 15 HOA PHAT GROUP JOINT STOCK COMPANY Address: Pho Nol A industrial Zone, Gial Pham Ward, Yen My, Hung Yen Province, Vietnam \VPGD: 66 Nguyen Du, Nguyen Du Ward, Hai Ba Trung District, Hanoi, Vietnam BT: (+84 24) 3628 2011 | F: (+84 24) 3974 7753 www-heaphat.com.vna anrw HOA PHAT vaso Fone Devo Form 8 094 — DIN (fsued wer Cirealar No. 2022010 T7-8TC dated 22 December 2014 ofthe Mins of France) NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED 6. Construction in progress From 1 Jan 2020 to 31 Dec 2020 ND Opening balance 36,685,174,068,291 ‘Additions during the year 1,559,536,463,924 ‘Transfer to tangible fixed assets (38,618,776,011,517) ‘Transfer to intangible fixed assets (2,305,493,215) ‘Transfer to long-term prepaid expenses (247,972,063,577) ‘Transfer to short-term prepaid expenses (36,710,144,014) Other movements (10,204,044,844) Closing balance '5,328,742,775,048 ‘Major constructions in progress were as follows 31 Dee 2020 1 Jan 2020 VND VND Construction in progress ion Complex Project, 3,487,288,552,867 _33,097,995,330,249 Complex Project 1,327,612,767,875 244,430,685,541 Color Coating Steel Sheet Factory Project 9,838,075,445 2,471,423,149,154 Agriculture projects 249,453,653,883 434,027,505,133, Other projects 254,549,724,978 437,297,398, 214 Total 5,328,742,775,048____ 36,685,174,068,291 a 16 HOA PHAT GROUP JOINT STOCK COMPANY Address: Pho Noi A industrial Zone, Giai Pham Ward, Yen My, Hung Yen Province, Vietnam VPGD: 66 Nguyen Ou, Nguyen Du Ward, Hai Ba Trung District, Hanoi, Vietnam BT: (+84 24) 3628 2011 | F: (+84 24} 3974 7753 wwwcheaphat.com.va Wa Noy \Ware AY rt TITLNCITLOESS RLOLSTSUV'S TITORLSLERL — ONGSOESEESD SISTECSECHO'T s6E'BSMORSTEC IE oor'TeseUNzE'LZ roc'rer'cr'0ss'0t TRF es6'C ETLL'SINTIT — SSC'RtERU'T OO'FET'rIGsBY LFF LeU'sEESUE'6I 9SCVSNLECING‘OT PETICOGSHELI GAELOTSU'C SETSHOE TOL —LIVSTHTER SS SHose PENN) SHE TILL LEST s9eeuCTr'TOF'E = wor Torunreeet (Or tarL9 see 108) (sven) = seres - (ssv'srsne) (seter Goesecisr'o pvoesseueo) istereris) (aes00'199 —GaveeeEOFOD —_Uas'ho'sseOrN) —oL'sorens'sD) 0906 SSEOS'SICOR LIF DLGO'IE AFLESHCEDL — HT HUSTEUEICE —_ssesec‘90'EIZT or ies eis yeezt HL6MYLYTOGE — ELBYONESE'9S SocUMVeLETES —For'BROCSEstS —_cUS'L6L‘sa'90CT Laver OIETIITS LUCFOS's evzesoccoe OLESEN UETEYSICENT Gr oMV'seesoure0IE 7 : corransee Gor eioTs GeO 2 (on'sev'en Gsrteeci670 Conrssroac' S6C'665)—_(O18'6666I'ZD Goressss0 Suistrerze —LIBerssoLe oWoLeLeTL tsssse90n' : Lew Lov ous'9t —s6c'LOp's¥eULE b sos'revore'rower Ses'escomuese aeT'NES Lees seeHLS9RL‘IaUT axa ana axa ana ana ana aoudnbo re, sem POST wo SPHPA MON stupuna a Ea nar (ounun fo Casany ao og sauna Ze pomp SuesLirloceoe Nsom) ap pons) Suis” 60 meg oz0z sequassa Te 38 5y coz a way anyea youd 19N oz0z soquasag re sy wonton ss sveurssom 2190 _g0 vanum pur sesodsic ‘wonoaudoq, oor Stenue Le sy. ‘uopetoaudap parejnuinsoy 707 s2quas3q IE 38 5y voMRoESST sauoW 219 yo uayum pur syesodsc) ssadoud uy woyonusuoo woy sue], 5000: zor Assnuep 1388 809) syasse poxy 91q18ue, ANNLLNOD - SLNGINGLV.LS TVIDNVNIA GALVGITOSNOD FHL OL SALON Address: Pho Noi A Industrial Zone, Giai Pham Ward, Yon My, Hung Yen Province, Vietnam VPGD: 66 Nguyen Du, Nguyen Du Word, Hai Ba Trung District, Hanci, Vietnam 5 E 2 5 2 HOA PHAT GROUP JOINT STOCK COMPANYa aA HOA PHAT ‘won Foro pevoeuent Form 8094 — DNAIN (deued under Creal No. 20220147TP BTC dated 22 December 2014 ofthe Minisoy of France) NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED 8. Intangible fixed assets Land use rights Software Others Total VND VND VND YND Cost Asat I January 2020 267,408,028,099 70,662,025,700 _1,500,909,664 339,570,963,463, ~ Additions = 2,137,510,500 125,000,000 2,262,510,500 ~ Transfer from construction in progress (2,607,892,109) 2,305,493,215 2,607,892,1092,305,493,215, = Other movements - 49,500,000 - 49,500,000 = Disposals and written off : (1,193,188,000) _(1,193,188,000) As at 31 December 2020 264,800,135,990__75,154,529,415 _3,040,613,773 _342,995,279,178 Accumulated amortisation Asat I January 2020 41,683,157,547 27,015,412,996 _1,500,909,664 70,199,480,207 - Amortisation 4,490,134,946 15,480,021,191 181,528,240 20,151,684,377 - Disposals and written off Z = (1,193,188,000) _(1,193,188,000) As at 31 December 2020 292,493 42495434187 489,249,904 _ 89,157,976,584 Net book value ‘Asat | January 2020 225,724,870,552 43,646,612,704 = 269,371,483,256 As at 31 December 2020 218,626,843,497__ 32,659,095,228 1,363,869 _253,837,302,594 9. Investment properties Land use rights Buildings Total ‘ VND VND ND Cost Asat | January 2020 55,702,700,965 _607,537,041,425 663,239,742,390 ‘Transfer from construction in progress = 9,847,253,038 —_9,847,253,038 Other movements 8,844,849,328 _—8,844,849,328 As at 31 December 2020 Accumulated depreciation i As at 1 January 2020 = 86,623,231,473 86,623,231,473 : Depreciation = 28,990,419,078 —_28,990,419,078 Other movements = 2,021,220,404 2,021,220,404 As at 31 December 2020 117,634,870,955___117,634,870,955 Net book value Asat | January 2020 55,702,700,965 520,913,809,952_$76,616,510,917, As at 31 December 2020 35,702,700,965 _508,594,272,836 __564,296,973,801 X 18 HOA PHAT GROUP JOINT STOCK COMPANY Address: Pho Noi A Industrial Zone, Giai Pham Ward, Yen My, Hung Yen Province, Vietnam VPGD: 66 Nguyen Du, Nguyen Ou Ward, Hai Ba Trung District, Hanoi, Vietnam DT: (+84 24) 3628 2011 | Fs (+84 24) 3974 7753 wwwwchoaphat.com.vnse 61 5 cf a3 GIS'6PEOTO'ESS' GFITEGOGI'LL FOS‘OTIONS'ZOE 1O9‘SZZ'6ES‘ERT 9IF‘OZS*PF ELT GS9‘OSO'TEZ'9BL 0707 4aquissaq oe Towser 55 = (cro's10'E0) ~—_(L¢8°€9195¥) vlereoor suommousssoioon | SE GsHoseO8eI8h) COLL'ISS'r¥EIEI) (o6'zLI"OLS'PD (ss9'098'v91'96) (CPI‘vSS'RS6'SC) pound so} uormsony | sf (oosuoc'es) =~ - - (oos'tou'ss) goumus pessoa | 52, Civet6c'rr9'20) (Go0'sseess‘0e) - (cev'cees0't) - - suumrowrno |, 228 LLS'EOOTLELEZ — TLB'SPI‘E9H'bh PeTTIS'9OS18 —PEI'ZSR'SRE'ED EITOOE'EESOC —PSO'THE'ZBO'LE ssafod = GOs jvoponaos way qyumy, | SE 38 19S‘IZ9°000%69Z —SEP'EEE"POO'LD —_OOS*E6O'POr'r _—LGO'ESS‘OEO'VIT SES*ISTIOGTS~ suomppy |S 28% OG0°EZ9'BEL*DSI'T S8O'ORG'PTS'SET —GSS'TSO'DIS'IEZ IBL*PET'EHS'GLZ —GOG'ZEF'LEG'STL SPL‘Z96'O9S'PLL fee eae x oes snverrieseounea 522% ana NA aa NA aa awa Boge sernode 2Ea- oueusyuyeun 9225. sis00 sofetn eas sisoo pay |SEaks wey sum90 comsepens paceman” pee ROL rodea 3seRe sosuadxo predaad wi13-B107] & gars geek a Peer GUNNILNOD - SLNAWALV.LS TVIONVNIA GA.LVGITOSNOD FHL OL SALON g 355 z (aun fo Laan omfo pO quam Ze PRP PLUPHOROE ON DU pun pam) Nua 60 m04amici ronson Form B 0a —_DNIBN, (lsc under Circular No. 202/201477-BTC dated 22 Decombsr 2014 ofthe Minisry of Finance) NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED 11, Goodwill Gulialdlarkes As at 31 December 2020 ‘As at I January 2020 Cost Net book value Cost Net book value VND ND VND ND Hoa Phat Energy JSC 206,244,396,684 = 206,244,396,684 —8,593,516,518 Lac Thuy Breeding Co,, Ltd, 4,367,130,430 = 4,367,130430 3,493,704,334 hon Trach Trading : 195,950,665 195,950,665 195,950,665 195,950,665 Services Company Limited Long Viet construction JSC 59,880,000,000 42,914,000,000 _59,880,000,000 _48,902,000,000 raat SrA ATH TRS LOOSETREE TIO GRTT TO RL ASSTTISTES X 20 HOA PHAT GROUP JOINT STOCK COMPANY Address: Pho Noi A industrial Zone, Giai Pham Ward, Yen My, Hung Yen Provines, Vietnam VPGD: 66 Nguyen Du, Nguyen Du Ward, Hei Ba Trung District, Hanoi, Vietnam DT: (+84 24) 3628 2011 | F: (+84 24) 3974 7753 www-hoaphat.com.vnveEw 487-7 NIN Aansvary ayeyg 0) soqeced 19490 puE Saxe, “ZT E i Oesz9zeLs'srs — (OIF'OTI‘LyL'I6Z‘L) _8zS"600'DO6'I9EL SILPSCOTHSLE Teh ae eay'sso'os1T (oor‘Lsc‘ous' eL8'7cs've8'P 91LC6E'906 50x81 0 $2 : (10'ro¥ si vu0''rt : rea por 83 gov'ese'ecs'z (L19°166's99's00) 81S‘1z4'L89°901 9s"€z6°108"I soxty gomnosoy [tunseN, So Ze ozL'6s8'L97 (oz9'z96'6s6°9") ors'98r'1e6'9r sos'see'96e xm} uondumsuis pelsadg sf ‘66'sse‘0L6'1 (olo'ssz‘Ls6'98) zs9°066'10L"E8 eseeso'ser's xe) autoour jeuosiog Feo 9T'Brs‘Loc6sy —(€79'6IZ'LOS'BIL" oL'e96°6ES‘ZBL'L O6‘sos's9c'szy xe} owoouy aresodioy ets - (sev v96'cs6'Lce) BOELOS‘EEL‘LE SIL'LS¥'661 xe) uodxo-oduy zeae TETEOS'S¥6'9 (wsI'sse"1L6'%6) SEP LITETILE BLOELIESTTI 2) BUIPIONTEA, 2 pe o00'0z'69 STOITLISVEEY) ——_—Eso*E6b"9RO'SEE'Y 879°C48'660'1 xe poppe enqea wodus OoRS gov'sss'ozo'sy ——(9zs*¥9L'ZST'LPS) ses‘zee‘ees'z9s Log'o0svE6'0s xm poppe ane A Seat NA NA NA NA best 6322 0707 s2qu929q, 0207 Arenuep 8238 1eve sy pred xe, Tiesy See 2253 S23e Bees 2933 S38; 2285 wnw.hoaphat.com.vn (AANILNOD - SLNIWALVLS TVIONVNIE GLVGIIOSNOD AHL OL SALON (oun fo uy 9 Jo roe quod Zz PP DUELLPTOCIE ON eA spt pn HINA "Goa m0‘amon Foro oem Form B 092 DN/EIN (lewed under Cirealer No 20220077 BTC ated 22 December 2014 ofthe Minty of Finance) NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED 13, Accrual expenses 31 Dee 2020 1 Jan 2020 ND VND Short-term accrual expenses Interest expense 239, 100,118,793 247,399,009,822 ‘Transportation expense 9,606,306,522 13,083,272,180 Promotion expense 75,454,967,877 44,055,822,912 ‘Others 315,968,290,990 125,239,192,497 Total (640,129, 684,182, 409,77297 411 Long-term accrual expenses Accruals for cost of Industrial zone land 193,664,493,846 403,328,992,030 Accruals for infrastructure maintenance 30,000,000,000 24,000,000,000 Total 223,664,493,846 427,328,992,030 14, Other payables 31 Dee 2020 1 Jan 2020 VND ND Other short-term payables Interest expense and dividend payable 14,159,238,956 9,563,958,353 Sales discounts 33,335,904,280 32,161,933,755 Trade union fee, social and health insurance 49,440,485,593 31,005,877,757 Others 230,525,771,522 158,659,977,374 Total 328,061,400,351 237,391,747,239 Other long-term payables reece Apartment maintenance fund 41,989,925,396 38,791,080,145 Others 26,746,160,774 19,596,030,636 Total {68,736,086,170 58,387,110,781 4 X 2 HOA PHAT GROUP JOINT STOCK COMPANY Address: Pho Noi A industrial Zone, Giai Pham Ward, Yon My, Hung Yen Province, Vietnam 2 VPGD: 66 Nguyen Du, Nguyen Du Ward, Hai Ba Trung District, Hanoi, Vietnam BT: (+84 24) 3628 2011 | F: (+84 24) 3974 753 www-heaphat.com.vnA 4a HOA PHAT sank For ohoewonvent Form B 09a DNIIN (feed weer Cieaar No. 202201477 BTC dated 22 December 2014 ofthe Ministry of Finance) NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED 15, Provisions 31 Dee 2020 1 Jan 2020 YND VND Short-term provisions Warranties 5,846,534,626 3,111,122,885 Total 5,846,534,626 3,111,122,885 Long-term provisions Warranties 14,786,816,827 9,708,921, 593 Environmental restoration 11,214,115,913 10,704,815,991 Total 26,000,932,740 20,413,737,584 \ 2 HOA PHAT GROUP JOINT STOCK COMPANY Address: Pho Noi A Industrial Zone, Giai Pham Ward, Yen My, Hung Yen Province, Vietnam VPGD: 66 Nguyen Du, Nguyen Du Ward, Hai Ba Trung District, Hanoi, Vietnam BT: (+84 24) 3628 2011 | F: (+84 24) 3974 7753 www.hoaphat.com.vnSOVEPT SORELY LEC GLIEITEOT TST POOPESSIS OST TIDIFTELS GLTOIFOISTIZE OOVOSTIPLOINZE S10z soquioveq IE Ie Sy GsesrneD 7 worsen ovano wos panes Leu'sts's8z : - eee'siiese - : socom ont omnes uBlainj opayta ung wotdojenoa e - (o00‘000'000's) = oo'o00'000's : pv quounsoAa «7 wometsdoxddy ~ ‘ 7 peer 7 : d ‘ ny azeiom pus (vor'seosso'ss2) (ret's66'ss0's82) ‘snuog of woredasddy = swuowoteueyi Jo pivoK 29} puny worezounuas (ooo'voo'e00%m) — - 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= (oo0'orr's80'zzs‘s) 000'rr's80'zzs's PIL'9SS'99T'90S'ET SSLLSS*OGE'LO GSERO9SLOREM EL ~ 000°000°00L'7 000°000°00L'7, * * SOKEPIOEORL'LE LTESLIEITEDT —BPSTUSL'EIG'9LE'SI PoG'rES'SOS —9ST'TI9'IPIEZS OLT'9TP‘O9S'TIT'E TPL'OLS'LT aNA GNA NA NA NA NA NA ses 133 aes = won sae oy, wod power —ygaIl, —_oudojoap suns ede aes HNP oe uns Aa sx HOA PHAT GAANIINOD - SLNAWALVLS TVIONVNIA GALVGITOSNOD AHL OL SALON (owe fo asmpy af pc sagen zz pap uLLPIOcIeNE ON mMOAL pin pons) NHING” eo og zor s2qua20q 1698 SY swuaui9 now J9190 ~ uopeysuen ouauino wos, poatiop seouarayp a1es aBueyoxo uSjouoy Jo aT ~ puny quourdojanogt ( uondosddy - snuoq oy wonuidoxddy - squawateuny Jo prog, 404 puny uonesounuras pur ssorsonig, Jo pavog 10} puny ‘snuog 0} wonetdarddy ~ so spuopiaic = says {Jo uuog ayn ut spuspiatcl ~ 09 oy) 409 101d PN ~ Ampysqns s, hued wor ‘249 onut suBpjoyaseys Suqjonuos-uou Aq pede ‘paangusiuos Jo 0707 Azenuep 1 38 sy HOA PHAT GROUP JOINT STOCK COMPANY e 2 = § 6 < 2 2 e s a 2 6 & 5 € 2 2 2ha aa HOA PHAT aon Fon sa Decne Form B09a—DNAIN (sued under Clear No. 20222014 TFT daed 22 December 2014 ofthe Mins of Finance) NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED Share capital transactions From 1 Jan 2020 From 1 Jan 2019 to 31 Dec 2020 to 31 Dec 2019 VND VND Owner's equity Opening balance 27,610,741,150,000 21,239,071,660,000 Share capital issued during the period - y Payment of dividends in the form of shares 5,522,085,440,000 6,371,669,490,000 Closing balance 33,132,826,590,000 27,610,741,150,000 Shares 31 Dee 2020 1 Jan 2020 Shares Shares Authorised share capital 3,313,282,659 2,761,074,115 Issued share capital Ordinary shares 3,313,282,659 2,761,074,115 ‘Treasury shares : - Shares in circulation 3,313,282,659 2,761,074,115 Ordinary shares 3,313,282,659 2,761,074,115 * Par value 10,000 10,000 Funds 31 Dee 2020 1 Jan 2020 ND VND. Invesment and development fund 928,641,612,156 923,641,612,156 Bonus and welfare fund 1,133,445,419,487 806,604,376,402 \ 26 HOA PHAT GROUP JOINT STOCK COMPANY Address: Pho Noi A Industrial Zone, Giai Pham Ward, Yen My, Hung Yen Province, Vietnam VPGD: 66 Nguyen Du, Nguyen Du Ward, Hai Ba Trung District, Hanoi, Vietnam DT: (+84 24) 3628 2011 | F: (+84 24) 3974 7753 www.hoaphat.com.unA ss HOA PHAT 1. Revenue Revenue from sales of goods Revenue from provision of services Revenue from sublease of leasehold land and rental of investment properties Sales of real estate Others Total 2. Revenue deductible Sales discounts Sales allowances Sales returns. Total 3. Cost of sales Finished goods and merchandise goods sold Services provided 288, 105,733,187 Cost of leasehold land subleased and investment 66:506, 184,006 property held to earn rental Cost of real estate sold 3,427,451,291 Other costs 2,802,473,675 Total 19,510,833,657,232 HOA PHAT GROUP JOINT STOCK COMPANY ‘Address: Pho Noi A Industrial Zone, Giai Pham Ward, Yen My, Hung Yen Province, Vietnam Form B 094 - DNAIN, (lewed under Circular No. 20220407 BTC ated 22 December 2014 ofthe Mins of Finance) NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED VI NOTES TO CONSOLIDATED STATEMENT OF INCOME, ‘Three-month period ended 31 December 2020 VND 25,719,370,194,230 306,082,180,409 128,502,813,475 6,613,957,460 4,603,471,313 26,165,172,616,887 ‘Three-month period ended 31 December 2020 ND 375,088,441,071 979,135,664 11,033,931,685, 387,101,508,420 ‘Three-month period ended 31 December 2020 ‘ND 19,149,991,814,673 VPGD: 66 Nouyen Du, Nguyen Du Ward, Hai Ba Trung District, Hanci, Vietnam BT: (+84 24) 3628 2011 | F: (+84 24) 3974 7753 www. hoaphat.com.vn ‘Three-month period ended 31 December 2019 ND 17,642,510,327,608 394,114,433,575 120,727,850,393 120,365,042,790 4,370,786,098 18,282,088,440,464 ‘Three-month period ended 31 December 2019 ND 288,284,960,156 233,142,276 18,267,662,179 306,785, an ‘Three-month period ended 31 December 2019 ND 14,694,034,255,684 305,331,638,677 64,257,569,853 74,805,610,170 1,192,959,254 15,139,622, 638 asuo Fomine tone Form B09a— DNIIN (sued under Circular No. 2022014TF BTC clted 22 December 2014 ofthe Ministry of Finance) NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED 4. Financial income ‘Three-month period ‘Three-month period ended ‘ended 31 December 31 December 2020 2019 ‘VND ‘ND Interest from deposits and loans 738,780,086,221 61,060,816,268 Realised foreign exchange gains 105,486,335,034 43,723,943,867 Unrealised foreign exchange gains 10,759,079,699 13,125,765,437 Other financial income 474,433,457 533,025,626 Total 355,499,934411 122,443,551,198 i 5. cial expenses ¢ ‘Three-month period ‘Three-month period ended ‘ended 31 December 31 December \ 2020 2019 3 ND ND & Interest expense (662,031,175,138 270,226,645,026 Payment discounts 3,517,860,000 3,799,959,000 Realised foreign exchange losses 78,345,655,940 11,039,432,957 Unrealised foreign exchange losses 36,307,981,123 23,976,874,971 Other financial expenses 6,696,581,581 3,131,420,225 Total "786,899,253,782 312,174332,179 XX 3 HOA PHAT GROUP JOINT STOCK COMPANY a ‘Address: Pho Noi A Industrial Zone, Giai Pham Ward, Yon My, Hung Yen Province, Vietnam VPGD: 66 Nguyen Du, Nguyen Ou Ward, Hai Ba Trung District, Hanoi, Vietnam BT: (+84 24) 3628 2011 | F: (+84 24) 3974 7753 www-hoaphat.com.vna nw HOA PHAT aon 08081 Bese. Form B09a~DNAIN (lesued ser Ctreuer No 202201477 BTC ded 22 December 2014 efthe Minis of Finance) NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED 6. Selling expenses ‘Three-month period ‘Three-month period ended ended 31 December 31 December 2020 2019 VND ND Advertising expenses '58,203,707,155 33,403, 785,902 Staff costs 21,536,463,559 30,579,215,705 Depreciation 5,615,421,828 6,346,857,522 Transportation expenses 118,594,721,303, 81,105,057,654 Outside services and other selling expenses 79,196,577,207 33,323,121,927 Total 283,146,891,052 184,758,038,710 } 7. General and administration expenses i ‘Three-month period Three-month period ended =). ended 31 December 31 December 2020 2019 zl ‘ND ND Goodwill amortisation 6,177,954,925 6,762,288, 180 Staff costs 72,818,954,020 70,946,706,621 Depreciation expenses 18,651,934,833 17,474,673,813 Outside services and other general and admi 115,990,'593245 95,868,489,853 expenses, Total 214,239,04 191,052,158,467 eee eee eee eee 29 HOA PHAT GROUP JOINT STOCK COMPANY 4 ‘Address: Pho Noi A Industrial Zone, Giai Pham Ward, Yen My, Hung Yen Province, Vietnam oe VPGD: 66 Nguyen Du, Nguyen Du Ward, Hai Be Trung District, Henoi, Vietnam og DT: (484 24) 3628 2011 | F: (+84 24) 3974 7753 a wwrw.hoaphat.com.vna an HOA PHAT uct Fomson vcr Form B 0% —DNIIN (lose ser Cienler No 20220147P BTC dated 22 December 2014 ofthe Minis of France) NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED VIL OTHER INFORMATIONS 1. Segment reporting ‘The Group chooses its business segments as its primary reporting segment because the Group's exposure to risk and rate of return is primarily affected by differences in products and services provided by the Group, Geographical parts are secondary reporting, Business activities of the Group are organized and managed in accordance with the nature of the products and services provided by the Group with each division being a strategic business unit providing various products, Inter-segment transactions are eliminated from consolidated financial statements, Informations of revenue, profit, assets and liabilities of segments are as follow: Ree 30 HOA PHAT GROUP JOINT STOCK COMPANY Address: Pho Noi A Industrial Zone, Giai Pham Ward, Yen My, Hung Yen Province, Vietnam VPGD: 66 Nguyen Du, Nguyen Du Ward, Hai Ba Trung District, Hanci, Vietnam Br: (n84 24) 3628 2011 | F: (+84 26) 39747753 www. hoaphat.com.vnoss vowupecs orice a (pre Te'066' 80°) 8S°760'966) ) (oru'eze‘ocz'ses'r) ‘Sraame poxy S1q(8ue a eeneeres BLT GLTS66THE 096°S90°981°T BES*ROC'RLLOS TUS PIT LE 60'EZ9' SHS THT ‘siasse poxy aqiSuENU] cagearors'si97s — (ZIz9IS‘Ize‘6¥e) OSL'RSL'OLE'ESE COO'PITOG LETT —OPOTE'LBS'6RD'C —_THB'LOT OFFS LL ‘siasse paxy a]qdue | aT ROT APT — aE arora wn eOr'6RO'SHSTSTTL —(ELO'OS'ESE"V6r'LI) EER L6S"8Or'OFFT 686'69E'SIS‘P16 9ST'99¥' POG TEES: muauidag OLO'SEROEFTISTEL (ELE LEF'96H'990'99)§ LOT'ROGTZL'ESL'E GROODE'SIS TIFT § — ILE9ET'SOP'ZAI'L —LZL'L6"06T'LLI'SBT reo, (ece‘Lev'960'990'99) LOz‘s06'IZL'ESL'E GRG'GDE'SISPOFT —SLF9ET'SOPTBI'L —-LZL'LLOO6TLLI'SBI _srassp juautiag: cnet GPS'ORF'1ZL'099°F (or'z96 87s PSS'TT) — T60'O98'E9s'L9 661'079'9.8'99 STTOTr'99T'O8E ‘S6S'IPS‘Er6'OOL'SE ep gaye yyosd BN, Tor'ese'est'7Z1 68S°RLL'GI LOR: ‘PREL6E OBESE (cos‘sor‘seo's) (uyceee‘ezs've) Wganag x) Semon pauses PRL'LTO'DPE LYS: f SEN OLS SBEL @STOIE6LI'SOS ‘soowadin 3am Seman ENE freewcnrs caserinrt) newton ccrureres| sanutaante ree GIE'TH9'SIGELT es 9LS‘LEL‘LOBLT UCISSLZ ENT ‘sosuadso 2790 (ovs'0e'ors) 19c°S6ET10'T ost'see‘9se'8oL au0OUL HQ (LECELEESEFLE'TD) — OO8'ZSL'TOL'EL ‘oes Tro‘ SEL TOS'THOGTE'LTY ‘69 1B6'6FT TET OT “gyoad Sunpesodo au juowitag_ = LoWBOL'ILO'SLL'ST — (LPS'6IS‘06F"I ) cev'esr'irs'o0c ‘TE9‘L60'668'8L9 LOM'LSELOTGILT 99.42 FUDUTIS 19H [OL = (eps‘e1s‘o6r" 1) BYO*PEL*POE'ET SOW'OTT'98SL9 oo0'orT' vse rs “Snu3AaN YUDUBIS-199U NN Lov'sOrTLO'RLL'ST* PBL PTL OES LLL ge SS TIE TY LOFLIVLIBBILT — OL'PRC*POF'OLT ZZ SUDA FRUIDIXD YON, ‘ =a : oz 1 Pop po uows.M 304 ' : NA NA NA aA, NA NA mer sam mg mmty = i CANNILNOD - SINAWALVIS TVIDNVNIA GALVAITOSNOD AHL OL SALON (our fo Cosme ao proc saquaoag £z PR 202 su rp pons) HOA PHAT GROUP JOINT STOCK COMPANY ‘Address: Pho Noi A industrial Zone, Giai Pham Ward, Yen My, Hung Yen Province, Vietnam VPGD: 66 Nguyen Du, Nguyen Du Ward, Hai Ba Trung District, Hanci, Vietnam BT: (+84 24) 3628 2011 | F: (+84 24) 3974 7753 won. hoaphat.com.vnA aA HOA PHAT roe ZENON we (eacosresroy ——(ors'2e9'81 (539'190'008') Gocs'nuc'tss) §——(ELe'sseons‘oe) —(rus‘osc'eus'st) 52s poxy arom] CorissuisseseD Corse LS — EsLELToIs'60d) wae" Tzr'o69'e0e) (owu'sex'vee'iee°00) see pony fat opesiowe pax wonepaidap parEMUINaSy soressuus'ess sus Lov'ses'e Tev9cs'c60'Lt sessoreucos §—sozsto'sir'eez ‘oss poxy jaro] SressI'oar'sou'er —LuN'9or'eesne ——HEE'ROS'STEOSTE Lovesrcr'vecl — SLVOs0sL"TON'8E soe oxy 901308 1809 TUSLGTCLSTOOS —COUVLSTAT USES) SLA ORTOLA SOT GERTSE LISS SHTLEEPICOGE ——ToLOTFeoe'caPSS wen US'LOCUSTOOTS CHO VLSTAL ONE'S) _SLNONOTOLS'6sOT _—GEETSSLIO'GGS _BHTLECHILOR6__cou‘otFeae'carss samen mouios GOS REESFOSLIOL COTGLLSELITOTS) SPI'SIFOHP'IIGS _POTRORTSTSETE LERRSCOOILT _LOGSIOLISSOOVET 19, Gos'OGC'essU6L'TOT CoscGLL'SAR'Z6'ES) BHI'STH6PY'z96's vores Gus's9R'SCOOILL Los BIO'LI6'SOG'HHT sass nous 6107 >a TesESy ‘TOGOLGILEETOT (Ls0'U69'RET IPED) SBR'ROL'LTL'SDE ST9ROTILO' DS Tee EES OTTER ‘xey saye yosd PN, (isroes‘eos') Gio'eoe'rss'01) OOF OSS TI (e9czL0'L99"e) (Os699' 11D ‘yypusg xy Su0U POLI} COTLLE'STF ILE [ LENSLVTSRL ERO'OSIPEL'OT GHSOLO'LOG'ET PES TES PLOROT ‘sostrodxo xe Su0oUE FUR 966 P8T'T TIP PENTIONSSE Gre TES‘ ZOO'S OLE HUTSON G1S66S'C6S'87S'S “xe agjaq syoad Bupesade you jusUI39 ‘PSS'OS6'Z9N'SLE 890898 1VT ‘T19‘yaL'zOs"s ‘SHE LTN'SZE ‘850°8E9'r87'691 ‘souadx3 OO our IS6161 poo ORT'T (g68't2z'sre's) BPILIT LECT DOOR AN ‘Trp OSE ROL'89T'T STON EO OSE ‘SSL'LEDEOL'ITT IST'966°F87' TT 676696075" 10F'S- ‘sqyoad Suyesade you yuaurt9g, os SDA CORATTHED TOMETETLNE — aeFDETE —_aPaFeaoD —_LIPSSFToNDGERE evo nib + GLI‘ 1R6TL9'PR6'R) —OOS'ELI'FIT vor‘oc9'szr'6L ‘HOTOPHESBIZ EBT TPLILTEHO'S “aMIDAAN WHDIULBOS-!IIU JON ewswuesiel - cwverusssoe —saeaeerie sr B10DLFH —_occHICoNF SF eet : es i cron coors rant gemma 8g 5 aw axa axa an axa axa os, it 7 soponpesd ‘unm 9210 Super ae oo nun soe ems amyaty anes on 3 NNLLNOD - SLNAWALV.LS TVIQNVNIA GALVOITOSNOD AHL OL SALON (eo fo Lasyy a fo 0 genoa PP Stectuprocieoe oN maa api ponst) NHN” oe og HOA PHAT GROUP JOINT STOCK COMPANY E = 2 5 < = 2 é 6 33 Za ak 55 z : 5reson ron ont obaicnt Form 098~ DNIN (lsued under Creator No. 2022004 TT-BTC sdoted 22 December 2014 ofthe Ministry of Fiance) NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED 2. Statement for profit movement over 10% Profit after tax of the three-month period ended 31 December 2020 is VND4,660 billion, increases by VND2,737 billion, equivalent to 142% compared to previous corresponding period (VNDI,923 billion). This outcome is almost derived from growth in sales volume, lower cost of steel segment and high profitability of agriculture segment. Preparer Chief Accountant J. : ‘Tran Xuan Mai Pham Thi Kim Oanh RO HOA PHAT GROUP JOINT STOCK COMPANY Address: Pho Noi A industrial Zone, Giai Pham Ward, Yen My, Hung Yen Province, Vietnam VPGD: 66 Nguyen Du, Nguyen Du Ward, Hai Ba Trung District, Hanoi, Vietnam BT: (+84 24) 3628 2011 | F: (+84 24) 3974 7753 www hoaphat.com.vn sy } ro