MAKING AN

IMPACT THAT
MATTERS
/
i

CHOLIMEX FOOD JOINT STOCK COMPANY

(Incorporated in the Socialist Republic of Vietnam)

AUDITED FINANCIAL STATEMENTS

For the year ended 31 December 2021

CHOLIMEX FOOD JOINT STOCK COMPANY
Lot C40-43/I, C51-55/II, Road
Vinh Loc Industrial Park, Binh Chanh District
Ho Chi Minh City, Vietnam

TABLE OF CONTENTS

CONTENTS PAGEfSl

STATEMENT OF THE BOARD OF EXECUTIVE OFFICERS 1

INDEPENDENT AUDITORS' REPORT 2

BALANCE SHEET 3-4

INCOME STATEMENT 5

CASH FLOW STATEMENT 6

NOTES TO THE FINANCIAL STATEMENTS 7-23

GO
s
 CHOLIMEX FOOD JOINT STOCK COMPANY
Lot C40-43/I, C51-55/II, 7^^ Road
Vinh Loc Industrial Park, Binh Chanh District
Ho Chi Minh City, Vietnam

STATEMENT OF THE BOARD OF EXECUTIVE OFFICERS

The Board of Executive Officers of Cholimex Food Joint Stock Company {the "Company") presents this report
together with the Company's financial statements for the year ended 31 December 2021.

THE BOARDS OF DIRECTORS, SUPERVISORS AND EXECUTIVE OFFICERS

The members of the Boards of Directors, Supervisors and Executive Officers of the Company who held office
during the year and to the date of this report are as follows:
Board of Directors
Mr. Duong Van Hung Chairman
Mr. Diep Nam Hai Member
Mr. Luu Thanh Danh Member
Mr. Tran Phuong Bac Member
Ms. Nguyen Thi Huyen Trang Member

Board of Supervisors
Mr. Pham Van Tranh Head of the Board
Mr. Truong Minh Thong Member
Ms. Do Thi Hoang Yen Member

Board of Executive Officers

Mr. Diep Nam Hai Chief Executive Officer
Ms. Ho Ngoc Huong Deputy Chief Executive Officer
Ms. Nguyen Thi Huyen Trang Deputy Chief Executive Officer

THE BOARD OF EXECUTIVE OFFICERS' STATEMENT OF RESPONSIBILITY y.

/
The Board of Executive Officers of the Company is responsible for preparing the financial statements, which give
a true and fair view of the financial position of the Company as at 31 December 2021, and its financial \
performance and its cash flows for the year then ended in accordance with Vietnamese Accounting Standards, 4
accounting regime for enterprises and legal regulations relating to financial reporting. In preparing these
financial statements, the Board of Executive Officers is required to:
● Select suitable accounting policies and then apply them consistently;
● Make judgments and estimates that are reasonable and prudent;
● State whether applicable accounting principles have been followed, subject to any material departures
disclosed and explained in the financial statements;
● Prepare the financial statements on the going concern basis unless it is inappropriate to presume that the
Company will continue in business; and
● Design and implement an effective internal control system for the purpose of properly preparing and
presenting the financial statements so as to minimize errors and frauds.
■ .t
The Board of Executive Officers 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 that the financial I
statements comply with Vietnamese Accounting Standards, accounting regime for enterprises and legal
regulations relating to financial reporting. The Board of Executive Officers is also responsible for safeguarding
the assets of the Company and hence for taking reasonabie steps for the prevention and detection of frauds and
other irregularities.

The Board of Executi' officers confirms that the Company has complied with the above requirements in
tiese fin^cial statements.

q; cfsftanfVp, of the Board of Executive Officers,

'^/ c6 PHi /\Ov
THUC PH

VACHOLD^
il
ecutive Officer
26 March 2022

1
 Deloitte Vietnam Co., Ltd.

- Deloitte No.: Olf’/j-S ANIA-HC-BC

MAKING AN
IMPACT THAT
MATTERS
18'^ Floor, Times Square Building,
57-69F Dong Khoi Street, Ben Nghe Ward,
District 1, Ho Chi Minh City, Vietnam
Tel:+84 28 71014555
Fax:+84 28 39100750
www-deloittexom/vn
INDEPENDENT AUDITORS' REPORT

To: The shareholders

The Board of Directors, Board of Supervisors and Board of Executive Officers of
Chollmex Food Joint Stock Company

We have audited the accompanying financial statements of Cholimex Food Joint Stock Company (the
"Company"), prepared on 26 March 2022 as set out from page 3 to page 23, which comprise the balance sheet
as at 31 December 2021, the statement of income, statement of cash flows for the year then ended, and a
summary of significant accounting policies and other explanatory information.

Board of Executive Officers Responsibility for the Financial Statements

The Board of Executive Officers is responsible for the preparation and fair presentation of these financial
statements In accordance with Vietnamese Accounting Standards, accounting regime for enterprises and legal
regulations relating to financial reporting and for such internal control as the Board of Executive Officers
determines is necessary to enable the preparation of financial statements that are free from material
misstatement, whether due to fraud or error.

Auditors' Responsibility

Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our
audit in accordance with Vietnamese Standards on Auditing. Those standards require that we comply with
ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the
financial statements are free from material misstatement.
/
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures In the
financial statements. The procedures selected depend on the auditors' judgment, including the assessment of
the risks of material misstatement of the financial statements, whether due to fraud or error. In making those \
risk assessments, the auditors consider internal control relevant to the Company's preparation and fair si
55
presentation of the financial statements in order to design audit procedures that are appropriate in the
circumstances, but not for the purpose of expressing an opinion on the effectiveness of the 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 Executive Officers, as well as evaluating the
overall presentation of the financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our
audit opinion.

Auditors' Opinion

In our opinion, the financial statements present fairly, in all material respects, the financial position of the
Company as at 31 December 2021, and its financial performance and its cash flows for the year then ended in
W' with Vietnamese Accounting Standards, accounting regime for enterprises and legal regulations
cial reporting.

5/c6NG TY TNI
*1 deloitt
VIET NAM/^
A

ngTrung Nguyen Tuan Ngoc

Audit Partner Auditor
Audit Practising Registration Certificate Audit Practising Registration Certificate
No. 0733-2018-001-1 No. 2110-2018-001-1
BRANCH OF DELOITTE VIETNAM COMPANY LIMITED
26 March 2022
Ho Chi Minh City, Vietnam
Deloitte refers to one or more of Deloitte Touche Tohmatsu Limited ("DTTL"), its global network of member firms, and their related entities. DTTL (also referred
to as "Deloitte Global”) and each of its member firms and their affiliated entities are legally separate and independent entities. DTTL does not provide services
to clients. Please see www.deloitte.com/about to learn more. 2
CHOLIMEX FOOD JOINT STOCK COMPANY
Lot C40-43/I, C51-55/II, Road FORM B 01-DN
Vinh Loc Industrial Park, Binh Chanh District Issued under Circular No. 200/2014/TT-BTC
Ho Chi Minh City, Vietnam dated 22 December 2014 of the Ministry of Finance

BALANCE SHEET
As at 31 December 2021

Unit: VND

ASSETS Codes Notes Closing balance Opening balance

A. CURRENT ASSETS 100 863,962,937,046 750,527,051,413

I. Cash and cash equivalents 110 4 167,675,646,977 104,037,276,936

1. Cash Ill 163,050,646,977 99,412,276,936
2. Cash equivalents 112 4,625,000,000 4,625,000,000

Short-term financial investments 120 5 376,803,560,429 317,603,955,600

1. Trading securities 121 6,728,500,972 7,007,751,097
2. Provision for impairment of trading
securities 122 (3,477,047,372) (5,403,795,497)
3. Held-to-maturity investments 123 373,552,106,829 316,000,000,000

Short-term receivables 130 167,353,215,911 149,137,831,131

1. Short-term trade receivables 131 6 155,502,179,504 132,109,934,649
2. Short-term advances to suppliers 132 2,054,125,327 1,000,858,627
3. Other short-term receivables 136 7 9,697,667,790 16,027,037,855
4. Deficits in assets awaiting solution 139 99,243,290 T

IV. Inventories 140 152,130,513,729 179,653,924,940 \

c
1. Inventories 141 8 152,130,513,729 179,653,924,940

V. Other short-term assets 150 94,062,806

1. Taxes and other receivables from the
State budget 153 13 94,062,806

200 260,817,625,009
B. NON-CURRENT ASSETS 297,840,815,633
I
I. Fixed assets 220 242,903,758,230 258,257,925,009 m
1. Tangible fixed assets 221 9 209,491,670,589 224,505,877,425 rE
- Cost 222 398,460,848,626 3Ze,717,S39MS
- Accumulated depreciation 223 (188,969,178,037) (162,212,061,721) 4
2. Intangible assets 227 10 33,412,087,641 33,752,047,584
- Cost 228 48,862,336,787 47,885,836,787
- Accumulated amortisation 229 (15,450,249,146) (14,133,789,203)

Long-term assets in progress 240 54,937,057,403 2,559,700,000

1. Construction in progress 242 11 54,937,057,403 2,559,700,000

TOTAL ASSET(270=100+200) 270 1,161,803,752,679 1,011,344,676,422

The accompanying notes are an integral part of these financial statements

3
CHOLIMEX FOOD JOINT STOCK COMPANY
Lot C40-43/I, C51-55/II, Road FORMBOl-DN
Vinh Loc Industrial Park, Binh Chanh District Issued under Circular No. 200/2014/TT-BTC
Ho Chi Minh City, Vietnam dated 22 December 2014 of the Ministry of Finance

BALANCE SHEET (Continued)

As at 31 December 2021

Unit: VND

RESOURCES Codes Notes Closing balance Opening balance

C. LIABILITIES 300 492,459,438,242 467,477,154,543

Current liabilities 310 486,314,312,492 461,332,028,793

1. Short-term trade payables 311 12 171,623,933,320 139,370,501,843
2. Short-term advances from customers 312 13,499,775,052 8,026,856,228
3. Taxes and amounts payable to the
State budget 313 13 19,773,871,659 4,127,769,687
4. Payables to employees 314 57,055,225,003 78,568,696,532
5. Short-term accrued expenses 315 14 51,237,250,612 52,791,391,934
6. Other current payables 319 2,341,062,034 974,621,737
7. Short-term loans 320 15 104,050,000,000 104,126,051,111
8. Bonus and welfare funds 322 66,733,194,812 73,346,139,721

Long-term liabilities 330 6,145,125,750 6,145,125,750 .0

1. Long-term provisions 342 16 6,145,125,750 6,145,125,750 C'
c
D. EQUITY 400 669,344,314,437 543,867,521,879 H
1
Owners' equity 410 17 669,344,314,437 543,867,521,879 N,

411 >
1. Owners' contributed capital 81,000,000,000 81,000,000,000 4

- Ordinary shares carrying voting rights Alla 81,000,000,000 81,000,000,000

2. Share premium 412 38,500,000,000 38,500,000,000
3. Investment and development fund 418 129,358,942,443 129,358,942,443
4. Retained earnings 421 420,485,371,994 295,008,579,436
- Retained earnings accumulated to
the prior year end 421a 235,451,997,166 117,411,250,357
- Retained earnings of the current year 421b 185,033,374,828 177,597,329,079

TOTAL RESOURCES(440=300+400) 440 1,161,803,752,679 1,011,3^,676,422 is

■X-*-

c6ngty >
C6 PHiN
THaC PH

Huynh Mlnh Due Nguyen Thi Bich Ngoc Diep Nam Hai
Preparer Chief Accountant Chief Executive Officer
26 March 2022

The accompanying notes are an integral part of these financial statements

4
CHOUMEX FOOD JOINT STOCK COMPANY
Lot C40-43/I, C51-55/II, Road FORM B 02-DN
Vinh Loc Industrial Park, Binh Chanh District Issued under Circular No. 200/2014/TT-BTC
Ho Chi Minh City, Vietnam dated 22 December 2014 of the Ministry of Finance

INCOME STATEMENT
For the year ended 31 December 2021

Unit: VND

ITEMS Codes Notes Current year Prior year

1. Gross revenue 01 2,513,046,159,418 2,263,874,948,973

2. Deductions 02 4,445,104,204 545,482,482
3. Net revenue (10=01-02) 10 19 2,508,601,055,214 2,263,329,466,491
4. Cost of saies 11 1,834,808,392,179 1,615,194,805,043
5. Gross profit(20=10-11) 20 673,792,663,035 648,134,661,448
6. Financial income 21 22 22,735,883,891 17,828,637,629
7. Financial expenses 22 23 2,114,983,535 6,175,385,226
- tn which: Interest expense 23 2,267,053,065 5,550,612,330
8. Selling expenses 25 24 347,961,147,961 306,168,148,468
9. General and administration expenses 26 24 117,814,766,582 133,802,508,620
10. Operating profit
(30=20+(21-22)-(25+26)) 30 228,637,648,848 219,817,256,763
11. Other income 31 4,210,233,237 5,034,813,947
12. Other expenses 32 363,663,550 1,530,163,780 I
13. Profit from other activities ft

(40=31-32) 40 3,846,569,687 3,504,650,167

i
14. Accounting profit before tax
(50=30+40) 50 232,484,218,535 223,321,906,930
15. Current corporate income tax expense 51 25 46,496,843,707 44,695,577,851
I
16. Net profit after tax (60=50-51) 60 185,987,374,828 178,626,329,079 !4
a
17. Basic earnings per share 26 21,813 20,950

CHI
ONG
DEI
Huynh Minh Due Nguyen Thi Bich Ngoc Diep Nam Hai Vlf
Preparer Chief Accountant Chief Executive Officer
26 March 2022

The accompanying notes are an integral part of thesefinancial statements

5
CHOLIMEX FOOD JOINT STOCK COMPANY
Lot C40-43/I, C51-55/II, 7'^’ Road FORM B03-DN
Vinh Loc Industrial Park, Binh Chanh District Issued under Circular No. 200/2014/TT-BTC
Ho Chi Minh City, Vietnam dated 22 December 2014 of the Ministry of Finance

CASH FLOW STATEMENT

For the year ended 31 December 2021
Unit: VND

ITEMS Codes Current year Prior year

CASH FLOWS FROM OPERATING ACTIVITIES

1. Profit before tax 01 232,484,218,535 223,321,906,930
2. Adjustmentsfor:
Depreciation and amortisation 02 28,856,298,936 28,843,816,626
Provisions 03 (1,926,748,125)
Foreign exchange gain 04 (202,398,091)
Gain from investing activities 05 (20,855,202,006) (14,595,154,748)
Interest expense 06 2,267,053,065 5,550,612,330
3. Operating profit before movements in
working capital 08 240,623,222,314 243,121,181,138
Changes in receivables 09 (24,426,580,246) 25,430,410,162
Changes in inventories 10 27,523,411,211 (4,715,136,477)
Changes in payables 11 17,569,929,613 15,078,576,408
Changes in trading securities 13 279,250,125
Interest paid 14 (2,267,053,065) (5,550,612,330)
Corporate income tax paid 15 (32,695,577,851) (49,792,665,899)
Other cash outflows 17 (26,623,527,179) (9,599,150,000)
Net cash generated by operating activities 20 199,983,074,922 213,972,603,002 i

II. CASH FLOWS FROM INVESTING ACTIVITIES

1. Acquisition and construction of fixed assets 21 (66,132,742,560) (17,314,451,658) )
2. Proceeds from sale, disposal of fixed assets 22 56,909,091 K
3. Cash outflow for lending and term deposits 23 (57,552,106,829) (200,000,000,000) V.
4. Interest earned 27 27,084,747,430 5,822,010,235
Net cash used in investing activities 30 (96,543,192,868) (211,492,441,423)

CASH FLOWS FROM FINANCING ACTIVITIES

1. Proceeds from borrowings 33 323,215,000,000 400,442,074,000
2. Repayment of borrowings 34 (322,766,051,111) (392,799,176,228)
3. Dividends paid 36 (40,453,162,750) (40,267,628,160)
Net cash used in financing activities 40 (40,004,213,861) (32,624,730,388)

●0
Net increase/(decrease) In cash (50=20+30+40) 50 63,435,668,193 (30,144,568,809)

Cash and cash equivalents at the beginning TY

of the year 60 104,037,276,936 134,181,845,745 .01
c
Effect of changes in foreign exchange rates 61 202,701,848
)_1
Cash and cash equivalents at the end of the year 70 104,037,276,936
(70=50+60+61)

^
★ THUC PH
> CHOL
Huynh Minh Due Ngu^n Thi Bich Ngoc im Hai
Preparer Chief Accountant Chief Executive Officer
26 March 2022

The accompanying notes are an integral part of these financial statements

6
CHOLIMEX FOOD JOINT STOCK COMPANY
Lot C40-43/I, C51-55/II, 7'^ Road FORM B 09-DN
Vinh Loc Industrial Park, Binh Chanh District Issued under Circular No. 200/2014/TT-BTC
Ho Chi Minh City, Vietnam dated 22 December 2014 of the Ministry of Finance
NOTES TO THE FINANCIAL STATEMENTS
These notes are on integral part ofand should be read in conjunction with the accompanying financiai statements

1. GENERAL INFORMATION

Structure of ownership

Cholimex Food Joint Stock Company (the "Company") was incorporated in Vietnam under Business
Registration Certificate No. 0304475742 dated 19 July 2006 issued by the Ho Chi Minh City Planning and
Investment Department, as amended.

The Company's shares have been traded on Stock Exchange Market for non-listed public interest entity
("UPCoM") with "CMF" code In accordance with Announcement No. 1225/TB-SGDHN dated 23
November 2016 issued by Hanoi Stock Exchange.

The number of employees as at 31 December 2021 was 2,077(as at 31 December 2020:1,877).

Principal activities

The Company's principal activities include:

Producing, processing and trading foodstuff, industrial meals, frozen seafood;

Trading breed, tools and supplies for aquaculture activities;
Trading food for domestic animals, personal and home-used tools, electronic devices;
Custom declaration service, transportation agency, imported goods delivery;
7
Agency for cargo trading and consigning, warehouse for rent, goods delivery service;
!C
Normal production and business cycle

The Company's normal production and business cycle is carried out for a time period of
12 months or less.
i
H'
Characteristics of the business activities in the fiscal year which have impact on the financial
statements

The Covid-19 pandemic is resulting in an economic slowdown and impacting most businesses across
industries. The Board of Executive Officers has assessed the impact of Covid-19 on the financial
situation and business activities, and also kept track of the Government's supportive policies to take
appropriate measures to minimize the negative impact of the pandemic on the Company's operations 1
during the year. The Board of Executive Officers has continuously monitored ongoing developments is.
and assessed that the Covid-19 pandemic does not affect the Company's ability to continue to operate >NH
as a going concern. TNH
rxi
The Company's structure :P^.

Details of the Company's head office and branch as at 31 December 2021 are as follows:

Cholimex Food Joint Stock Company Head office ("the Head Office") is located at Lot C40-43/1, C51-
55/11, 7'^ Road, Vinh Loc Industrial Park, Binh Chanh District, Ho Chi Minh City, Vietnam.
Cholimex Food Joint Stock Company Branch ("the Branch") is located at 23 - 25 An Diem Street,
Ward 10, District 5, Ho Chi Minh City.

Disclosure of information comparability in the financial statements

Comparative figures are the figures of the audited financial statements for the year ended
31 December 2020.

7
CHOLIMEX FOOD JOINT STOCK COMPANY
NOTES TO THE FINANCIAL STATEMENTS (Continued) FORM B09-DN

2. ACCOUNTING CONVENTION AND FINANCIAL YEAR

Accounting convention

The accompanying financial statements, expressed in Vietnam Dong ("VND"), are prepared under the
historical cost convention and In accordance with Vietnamese Accounting Standards, accounting regime
for enterprises and legal regulations relating to financial reporting.

The accompanying financial statements are not intended to present the financial position, results of
operations and cash flows In accordance with accounting principles and practices generally accepted in
countries and jurisdictions other than Vietnam.

Financial year

The Company's financial year begins on 1 January and ends on 31 December.

3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

The significant accounting policies, which have been adopted by the Company in the preparation of
these financial statements, are as follows:

Estimates

The preparation of financial statements in conformity with Vietnamese Accounting Standards,

accounting regime for enterprises and legal regulations relating to financial reporting requires the
Board of Executive Officers to make estimates and assumptions that affect the reported amounts of
assets, liabilities and disclosures of contingent assets and liabilities at the date of the financial
s
statements and the reported amounts of revenues and expenses during the financial year. Although
these accounting estimates are based on the Board of Executive Officers' best knowledge, actual results
may differ from those estimates. Hi
PI
Cash and cash equivalents
B
Cash and cash equivalents comprise cash on hand, demand deposits and short-term, highly liquid
V
investments that are readily convertible to known amounts of cash and which are subject to an
insignificant risk of changes in value.

Financial investments

Trading securities

Trading securities are those the Company holds for trading purpose. Trading securities are recognised
from the date the Company obtains the ownership of those securities and initially measured at the fair
value of payments made at the transaction date plus directly attributable transaction costs. : ★ \\i

Investments in trading securities are measured at cost less provision for impairment of such
investments. Provision for impairment of investments in trading securities is made in accordance with
¥
prevailing accounting regulations.

Held-to-maturity investments

Held-to-maturity investments comprise term deposits with term greater than three (3) months that the
Company has the positive intent or ability to hold to maturity to earn periodic interest.

Held-to-maturity investments are recognised on a trade date basis and are initially measured at
acquisition price plus directly attributable transaction costs. Post-acquisition interest income from held-
to-maturity investments is recognised in the income statement on accrual basis. Pre-acquisition Interest
is deducted from the cost of such investments at the acquisition date.

8
CHOLIMEX FOOD JOINT STOCK COMPANY
NOTES TO THE FINANCIAL STATEMENTS (Continued) FORM B09-DN

Heid-to-maturity investments are measured at cost less provision for doubtful debts. Provision for
doubtful debts relating to held-to-maturity investments is made in accordance with prevailing
accounting regulations.

Receivables

Receivables represent the amounts recoverable from customers or other debtors and are stated at
book value less provision for doubtful debts.

Provision for doubtful debts is made for receivables that are overdue for six months or more, or when
the debtor is in dissolution, in bankruptcy, or Is experiencing similar difficulties and so may be unable to
repay the debt.

Inventories

Inventories are stated at the lower of cost and net realisable value. Cost comprises direct materials,
direct labour costs and those overheads that have been incurred in bringing the inventories to their
present location and condition. Cost is calculated using the weighted average method. Net realisable
value represents the estimated selling price less all estimated costs to completion and other costs.

The evaluation of necessary provision for inventory obsolescence follows current prevailing accounting
regulations which allow provisions to be made for obsolete, damaged, or sub-standard inventories and
for those which have costs higher than net realisable values as at the balance sheet date.

Tangible fixed assets and depreciation

Tangible fixed assets are stated at cost less accumulated depreciation. The costs of purchased tangible
fixed assets comprise their purchase prices and any directly attributable costs of bringing the assets to 7.
their working condition and location for their Intended use.
n
Tangible fixed assets are depreciated using the straight-line method over their following estimated if
useful lives: Hi
A
Years
●-V
:a
Buildings, structures 5-40
Machinery, equipment 5-40
Motor vehicles 5-15
Office equipment 5-15
Others 4-25
4
Loss or gain resulting from sales and disposals of tangible fixed assets is the difference between profit
from sales or disposals of assets and their residual values and is recognised in the income statement. CC
E
Leasing AV

Leases where substantially all the rewards and risks of ownership of assets remain with the leasing
company are accounted for as operating leases. Rentals payable under operating leases are charged to
the income statement on a straight-line basis over the term of the relevant lease.

Intangible assets and amortisation

Land use rights

Intangible assets, which represent the value of land use rights, are stated at cost less accumulated
amortisation. Land use rights are amortised on a straight-line basis of 45 years.

9
CHOLIMEX FOOD JOINT STOCK COMPANY
NOTES TO THE FINANCIAL STATEMENTS(Continued) FORM B 09-DN

Trademark

Trademark is the registration cost of Cholimex brand and its logo which is measured initially at the
purchase cost and is amortised on the straight-line basis over their estimated useful lives of 20 years.

Computer software

Computer software is measured initially at the purchase cost and is amortised on the straight-line basis
over their estimated useful lives in accordance with regulations.

Construction In progress

Properties in the course of construction for production, rental or administrative purposes, or for other
purposes, are carried at cost. Cost includes costs that are necessary to form the assets in accordance
with the Company's accounting policy. Depreciation of these assets, on the same basis as other assets,
commences when the assets are ready for their intended use.

Payable provisions

Payable provisions are recognised when the Company has a present obligation as a result of a past
event, and it is probable that the Company will be required to settle that obligation. Provisions are
measured at the Board of Executive Officers best estimate of the expenditure required to settle the
obligation as at the balance sheet date.

Revenue recognition

Revenue from the sale of goods is recognised when all five (5)following conditions are satisfied:

(a) The Company has transferred to the buyer the significant risks and rewards of ownership of the
s
goods;
(b) The Company retains neither continuing managerial involvement to the degree usually associated 4
with; ownership nor effective control over the goods sold;
(c) The amount of revenue can be measured reliably;
(d) It is probable that the economic benefits associated with the transaction will flow to the Company;
e
and
%
(e) The costs incurred or to be incurred in respect of the transaction can be measured reliably.

Revenue of a transaction involving the rendering of services is recognised when the outcome of such
transactions can be measured reliably. Where a transaction involving the rendering of services is
attributable to several periods, revenue is recognised in each period by reference to the percentage of
completion of the transaction at the balance sheet date of that period. The outcome of a transaction
can be measured reliably when all four (4)following conditions are satisfied: HI I
HG
(a) The amount of revenue can be measured reliably; i-L'
(b) It is probable that the economic benefits associated with the transaction will flow to the Company;
(c) The percentage of completion of the transaction at the balance sheet date can be measured
reliably; and
(d) The costs incurred for the transaction and the costs to complete the transaction can be measured
reliably.

Interest income is accrued on a time basis, by reference to the principal outstanding and at the
applicable interest rate.

10
CHOLIMEX FOOD JOINT STOCK COMPANY
NOTES TO THE FINANCIAL STATEMENTS(Continued) FORM B09-DN

Severance allowance payable

The severance allowance for employees is accrued at the end of each reporting period for all employees
having worked at the Company for full 12 months and above. Working time serving as the basis for
calculating severance allowance shall be the total actual working time subtracting the time when the
employees have made unemployment insurance contributions as prescribed by law, and the working
time when severance allowance has been paid to the employees. The allowance made for each year of
service equals to a half of an average monthly salary under the Vietnamese Labour Code, Social
Insurance Code and relevant guiding documents. The average monthly salary used for calculation of
severance allowance shall be adjusted to be the average of the 6 consecutive months nearest to the
date of the financial statements at the end of each reporting period. The increase or decrease in the
accrued amount shall be recorded in the income statement.

Foreign currencies

Transactions arising in foreign currencies are translated at exchange rates ruling at the transaction date.
The balances of monetary items denominated in foreign currencies as at the balance sheet date are
retranslated at the exchange rates on the same date. Exchange differences arising from the translation
of these accounts are recognised In the income statement.

Borrowing costs

Borrowing costs are recognized in the statement of income as incurred unless they are capitalised in
accordance with Vietnamese Accounting Standard No. 16 "Borrowing costs".

Taxation

Income tax expense represents the sum of the tax currently payable and deferred tax.
?

The tax currently payable is based on taxable income for the year. Taxable income differs from profit
before tax as reported in the income statement because it excludes items of income or expense that
are taxable or deductible in other years (including loss carried forward, if any) and it further excludes
items that are never taxable or deductible.
I
/●
Deferred tax is recognised on significant differences between carrying amounts of assets and liabilities 4
in the financial statements and the corresponding tax bases used in the computation of taxable profit
and is accounted for using balance sheet liability method. Deferred tax liabilities are generally
recognised for all temporary differences and deferred tax assets are recognised to the extent that it is
probable that taxable profit will be available against which deductible temporary differences can be
utilised.

Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is HAN
settled or the asset realised. Deferred tax is charged or credited to profit or loss, except when it relates Y T^
to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. m
NA
Deferred tax assets and liabilities are offset when there is a legally enforceable right to set off current
tax assets against current tax liabilities and when they relate to income taxes levied by the same tax ■'6J
authority and the Company intends to settle its current tax assets and liabilities on a net basis.

The determination of the tax currently payable is based on the current interpretation of tax regulations.
However, these regulations are subject to periodic variation and their ultimate determination depends
on the results of the tax authorities' examinations.

Other taxes are paid in accordance with the prevailing tax laws in Vietnam.

11
CHOLIMEX FOOD JOINT STOCK COMPANY
NOTES TO THE FINANCIAL STATEMENTS (Continued) FORM B09-DN

4. CASH AND CASH EQUIVALENTS

Closing balance Opening balance

VND VND

Cash on hand 5,470,744 383,713,714

Bank demand deposits 163,045,176,233 99,028,563,222
Cash equivalents (*) 4,625,000,000 4,625,000,000
167,675,646,977 104,037,276,936

(*) Cash equivalents include term deposits at banks with a term of three months or less and an interest
rate of0% for USD (as at 31 December 2020:0% for USD).

As of 31 December 2021 and 2020, cash equivalents including the one (1) month term deposit with
value of USD 200,000 (equivalent to VND 4,625,000,000) are mortgaged to secure a short-term loans
(Note 15).

5. SHORT-TERM FINANCIAL INVESTMENTS

Closing balance Opening balance

Cost Fair value Provision Cost Fair value Provision
VND VND VND VND VND VND

Trading securities 6,728,500,972 3,251,453,600 (3,477,047,372) 6,728,500,972 1,603,955,600 6,728,500,972

Held-to-maturity
investments 373,552,106,829 373,552,106,829 ^ 373,552,106,829 316,000,000,000 373,552,106,829
380,280,607,801 376,803,560,429 (3,477,047,372) 380,280,607,801 317,603,955,600 380,280,607,801

As at 31 December 2021, trading securities comprise the security investments in Investment and
Trading of Real Estate Joint Stock Company (ITC), Hoa An Joint Stock Company (DHA) and Refrigeration >
Electrical Engineering Corporation (REE), in which the number of shares is 1,108; 9,742 and 38,784,
respectively (as at 31 December 2020: 11,088; 9,742 and 38,784, respectively). As at 31 December
2021, the fair value of trading securities was determined based on the reference price in the stock
market exchange.

Held-to-maturity investments consist of term deposits in VND with tenor from 6 months to 12 months
at commercial banks and finance company and interest rates ranging from 4.6% to 7.25% per annum
(as at 31 December 2020: from 4.7% to 10% per annum).

6. SHORT-TERM TRADE RECEIVABLES

Closing balance Opening balance

VND VND

Tonkin Products Limited 64,024,746,955 50,116,666,060

Others 91,477,432,549 81,993,268,589
155,502,179,504 132,109,934,649

As presented in Note 15, the Company used its short-term trade receivables to secure the short-ten
loans.

1* DELOr
\ N

12
CHOLIMEX FOOD JOINT STOCK COMPANY
NOTES TO THE FINANCIAL STATEMENTS(Continued) FORM B 09-DN

7. OTHER SHORT-TERM RECEIVABLES

Closing balance Opening balance

VND VND

Related parties (Note 28} 135,902,000 94,026,000

Deposit and mortgage 172,000,000 172,000,000
Advances to employees 1,887,422,620 2,588,922,012
Accrued interest income 5,960,126,039 12,246,580,554
Others 1,542,217,131 925,509,289
9,697,667,790 16,027,037,855

8. INVENTORIES

Closing balance Opening balance

VND VND

Raw materials 80,483,867,171 59,588,593,295

Finished goods 58,616,582,552 97,352,444,953
Merchandise 13,030,064,006 22,712,886,692
152,130,513,729 179,653,924,940

As at 31 December 2021 and 2020, there was no provision for devaluation of inventories.

As presented in Note 15, the Company used its inventories to secure the short-term loans.

9. TANGIBLE FIXED ASSETS

Buildings, Machinery, Office

structures equipment Motor vehicles equipment Others Total
VND VND VND VND VND VND
COST
Opening balance 144,702,264,475 229,881,671,518 9,217,950,443 1,318,688,668 1,597,364,042 386,717,939,146
Additions 5,843,431,500 36,200,000 5,879,631,500
Transfer from
construction
in progress 4,712,637,657 1,933,363,000 6,646,000,657
Disposals (782,722,677) (782,722,677)
Closing balance 149,414,902,132 236,875,743,341 9,217,950,443 1,354,888,668 1,597,364,042 398,460,848,626

ACCUMULATED DEPRECIATION
Opening balance 52,312,213,558 103,589,010,757 4,269,508,391 941,805,296 1,099,523,719 162,212,061,721 7^
Charge for the
85,850,172 30,327,060 27,539,838,993
*
year 7,555,327,936 19,106,880,501 761,453,324
Disposals (782,722,677) (782,722,677) ■●\v>

Closing balance 59,867,541,494 121,913,168,581 5,030,961,715 1,027,655,468 1,129,850,779 188,969,178,037

NET BOOK VALUE

Opening balance 92,390,050,917 126,292,660,761 4,948,442,052 376,883,372 497,840,323 224,505,877,425

Closing balance 89,547,360,638 114,962,574,760 4,186,988,728 327,233,200 467,513,263 209,491,670,589 ,

As at 31 December 2021, the cost of tangible fixed assets which are fully depreciated but are still in use
is VND 49,723,176,323 (as at 31 December 2020: VND 28,904,513,612).

13
CHOLIMEX FOOD JOINT STOCK COMPANY
NOTES TO THE FINANCIAL STATEMENTS (Continued) FORM B09-DN

10. INTANGIBLE ASSETS

Computer
Land use rights Trademark software Total
VND VND VND VND
COST
Opening balance 43,624,928,787 3,256,700,000 1,004,208,000 47,885,836,787
Additions 976,500,000 976,500,000
Closing balance 43,624,928,787 3,256,700,000 1,980,708,000 48,862,336,787

ACCUMULATED AMORTISATION
Opening balance 11,768,266,964 1,845,818,892 519,703,347 14,133,789,203
Charge for the year 1,008,897,672 162,834,996 144,727,275 1,316,459,943
Closing balance 12,777,164,636 2,008,653,888 664,430,622 15,450,249,146

NET BOOK VALUE

Opening balance 31,856,661,823 1,410,881,108 484,504,653 33,752,047,584

Closing balance 30,847,764,151 1,248,046,112 1,316,277,378 33,412,087,641

11. CONSTRUCTION IN PROGRESS

Construction in progress represented prepaid land lease at Vinh Loc 2 Industrial Park, Ben Luc District,
Long An Province to build a new factory to produce and process all kinds of frozen foods.

12. SHORT-TERM TRADE PAYABLES

A

Closing balance Opening balance

VND VND
('
Related parties (Note 28) 762,456,099 14,931,267
KCP Vietnam Industries Limited 21,735,925,000 10,880,820,000 5
Nguyen Thai Binh Plastics Producing - Trading
Company Limited 17,951,404,689 13,157,444,284
Others 131,174,147,532 115,317,306,292
171,623,933,320 139,370,501,843

As at 31 December 2021 and 2020, the short-term trade payables are able to be settled.

13. TAXES AND OTHER RECEIVABLES FROM/AMOUNTS PAYABLE TO THE STATE BUDGET
CH
,0N(
Increases Decreases
DE!
Opening balance during the year during the year Closing balance
VND VND VND VND VI!

Value added tax 1,432,191,836 56,144,554,303 56,697,445,514 879,300,625

Value added tax for
imported goods 2,205,632,192 2,205,632,192
Corporate income tax 2,695,577,851 46,496,843,707 32,695,577,851 16,496,843,707
Personal income tax (94,062,806) 9,763,178,773 7,271,388,640 2,397,727,327
4,033,706,881 114,610,208,975 98,870,044,197 19,773,871,659
In which:
- Taxes and other receivables
from the State budget 94,062,806
- Taxes and amounts payable
to the State budget 4,127,769,687 19,773,871,659

14
CHOLIMEX FOOD JOINT STOCK COMPANY
NOTES TO THE FINANCIAL STATEMENTS (Continued) FORM B09-DN

14. SHORT-TERM ACCRUED EXPENSES

Closing balance Opening balance

VND VND

Promotion and marketing 33,774,956,929 32,926,619,843

Salaries 7,800,000,000
Others 9,662,293,683 19,864,772,091
51,237,250,612 52,791,391,934

15. SHORT-TERM LOANS

Opening balance In the year Closing balance

Foreign exchange
differences due to
Amount Increases Decreases revaluation Amount
VND VND VND VND VND

Short-term loans 93,040,000,000 (525,000,000) 104,050,000,000

323,215,000,000 311,680,000,000
Current portion of
long-term loan 11,086,051,111 11,086,051,111
104,126,051,111 323,215,000,000 322,766,051,111 (525,000,000) 104,050,000,000

As at the balance sheet date, details of short-term loans are as follows:

Closing balance Opening balance

VND VND \

HSBC Bank (Vietnam) Ltd (a) 20,000,000,000 20,000,000,000

The Siam Commercial Bank Public Company Limited -
Ho Chi Minh City Branch (b) 10,000,000,000 10,000,000,000
Hong Leong Bank Vietnam Limited - Ho Chi Minh City
Branch (c) 22,700,000,000 23,040,000,000
Malayan Banking Berhad (d) 40,000,000,000 20,000,000,000
Bangkok Bank Public Company Limited - Ho Chi Minh
City Branch 20,000,000,000
Shinhan Vietnam Bank Limited (e) 11,350,000,000
Current portion of long-term loan 11,086,051,111 00;
104,050,000,000 104,126,051,111
NHA
TY ●
a. The loan from HSBC Bank (Vietnam) Ltd is to supplement working capital. The loan has a credit
iimit of USD 3,500,000 and is secured by the inventories and receivables with total value of USD
on
3,500,000. The loan has the tenor of 90 days from the withdrawal date and the interest rate of
fN.
2.8% per annum (as at 31 December 2020: 3.0% to 3.65% per annum). ■‘o

b. The loan from The Siam Commercial Bank Public Company Limited - Ho Chi Minh City Branch is to
supplement working capital. The loan has a credit limit of USD 3,000,000 and its tenor of one (1)
year from the effective date of the loan. The loan is secured by the receivables with a minimum
value of USD 2,100,000. The loan has lending period of three (3) months for each drawdown and
bears an interest rate from 3.1% per annum (as at 31 December 2020: from 2.6% per annum).

c. The loan from Hong Leong Bank Vietnam Limited - Ho Chi Minh City Branch is to supplement
working capital. The loan has a credit limit of VND 66,400,000,000 and is secured by the receivables
reflected in the financial statements of the Company from time to time, with the total value at
least VND 66,400,000,000 and the deposits with an amount of USD 200,000. The loan has the tenor
of three (3) months for each drawdown with the interest rates of 1.9% per annum for the loan in
USD (as at 31 December 2020: 2.2% per annum).
15
CHOLIMEX FOOD JOINT STOCK COMPANY
NOTES TO THE FINANCIAL STATEMENTS (Continued) FORM B 09-DN

d. The loan from Malayan Bank Berhad is to supplement for import and local purchase of raw
materials related to Company's business. The loan has a credit limit of USD 3,300,000. The loan has
the tenor of three (3) months for each drawdown with the interest rate from 2.8% to 2.9% per
annum (as at 31 December 2020: 3.0% per annum). The loan is secured by 20% or 22% marginal
deposit for each drawdown in the event that the marginal deposit is denominated in the currency
which differs from the functional currency of the utilise facility.

e. The loan from Shlnhan Bank is to supplement working capital. The loan has a credit limit of VND
60,000,000,000 and is secured by the value of inventory with a minimum value of VND
60,000,000,000. The loan has the tenor of 90 days from the withdrawal date and the interest rate
of 1.7% per annum.

16. LONG-TERM PROVISIONS

Long-term provisions represent provision for severance allowances.

17. OWNERS' EQUITY

Owners' contributed capital

According to the amended Business Registration Certificate, the Company's charter capital as at 31
December 2021 and 2020 was VND 81,000,000,000. The shares authorised to be issued of the Company
are as follows:

Closing balance Opening balance

VND VND

9
Authorised and fully contributed
Number (shares) 8,100,000 8,100,000
Price (VND/share) 10,000 10,000
Amount(VND) 81,000,000,000 81,000,000,000
T
Shares c
- Number of shares issued to the public
'i
Ordinary shares 8,100,000 8,100,000
- Number of outstanding shares in circulation
Ordinary shares 8,100,000 8,100,000

The ordinary share has par value of VND 10,000. The Company only issues ordinary shares which carry
no right to fixed dividend. Ordinary shareholders are entitled to receive dividends as declared and are
entitled to one vote per share at the shareholders' meetings. Each share has an equal right to the
Company's net asset value.
I'E
The list of shareholders as at the balance sheet date is as follows:
■»Ak\
Closing balance Opening balance
VND % VND %
Shareholder
Cho Lon Investment and Import
Export Corporation 32,980,000,000 40.72 32,980,000,000 40.72
Masan Food One Member
Company Limited 26,592,170,000 32.83 26,592,170,000 32.83
Nichirei Foods Inc. 15,390,000,000 19.00 15,390,000,000 19.00
Others 6,037,830,000 7.45 6,037,830,000 7.45
81,000,000,000 100 81,000,000,000 100

16
CHOLIMEX FOOD JOINT STOCK COMPANY
NOTES TO THE FINANCIAL STATEMENTS(Continued) FORM B09-DN

Movement in owners' equity

Owners' Share Investment and

contributed capital premium development fund Retained earnings Total
VND VND VND VND VND
Prior year's opening
balance 81,000,000,000 38,500,000,000 129,358,942,443 201,349,843,847 450,208,786,290
Profit for the year 178,626,329,079 178,626,329,079
Dividends declared (40,500,000,000) (40,500,000,000)
Appropriation to funds (33,319,296,745) (33,319,296,745)
Appropriation to
remuneration for the
Boards of Directors,
Supervisors and bonus for
Board of Executive (11,148,296,745) (11,148,296,745)
Current year's opening
81,000,000,000 38,500,000,000 129,358,942,443 295,008,579,436 543,867,521,879
balance
Profit for the year 185,987,374,828 185,987,374,828
Dividends declared (40,500,000,000) (40,500,000,000)
Appropriation to funds (8,931,316,454) (8,931,316,454)
Appropriation to
remuneration for the
Boards of Directors,
Supervisors and bonus for
Board of Executive (11,079,265,816) (11,079,265,816)
Current year's closing
81,000,000,000 38,500,000,000 129,358,942,443 420,485,371,994 669,344,314,437
balance

According to Resolution of the Company's Annual Shareholders' Meeting No. 01/NQ-DHCD dated 28
ss
April 2021, the Company paid dividends from profit after tax of 2020 at 50% of the charter capital with
an amount of VND 40,500,000,000.
c<
Pursuant to the Resolution, the funds appropriated from net profit of 2020 are as follows: C
H
Bonus and welfare funds appropriated from net profit of 2020 with an amount of VND
8,931,316,454.
=5*
Bonus, welfare to the Boards of Directors, Supervisors additionally appropriated from net profit of
2020 with an amount of VND 10,125,265,816. The Company also temporarily paid an amount of
VND 954,000,000 to the Boards of Directors, Supervisors from retained earnings of 2021.

18. OFF BALANCE SHEET ITEM

CHI
Foreign currency ONQ
Closing balance Opening balance
OEL
United States Dollar ("USD") 6,297,893 3,282,888
vif';

17
CHOLIMEX FOOD JOINT STOCK COMPANY
NOTES TO THE FINANCIAL STATEMENTS(Continued) FORM B 09-DN

19. SEGMENTAL REPORTING

Structure segment

The below is the Company's report by structure segment:

Current year Prior year

Segmental reporting VND VND
Net revenue
Head office
- Revenue from customers 2,378,426,231,404 2,140,114,290,149
- Revenue from Branch 84,895,276,239 80,612,348,534
2,463,321,507,643 2,220,726,638,683

Branch
- Revenue from customers 130,174,823,810 123,215,176,342
- Revenue from Head office 1,985,334,880
130,174,823,810 125,200,511,222

2,593,496,331,453 2,345,927,149,905

Cost of sales
Head office
- Cost of sales from customers 1,713,729,543,771 1,497,125,265,248
- Cost of sales from Branch 84,895,276,239 80,612,348,534
1,798,624,820,010 1,577,737,613,782

Branch
- Cost of sales from customers 121,078,848,408 118,069,539,795
- Cost of sales from Head office 1,985,334,880
^1
121,078,848,408 120,054,874,675
6
1,919,703,668,418 1,697,792,488,457
a
X
Elimination
Internal revenue 84,895,276,239 82,597,683,414
Internal cost of sales 84,895,276,239 82,597,683,414

Net revenue and cost of sales

Of
Net revenue 2,508,601,055,214 2,263,329,466,491
Cost of sales 1,834,808,392,179 1,615,194,805,043 ;hA
TY ^
>n
Ni

18
CHOLIMEX FOOD JOINT STOCK COMPANY
NOTES TO THE FINANCIAL STATEMENTS (Continued) FORM B09-DN

Geographicalsegment

The below is the Company's report by geographical segment:

Current year Prior year

Segmental reporting VND VND
Net revenue
Domestic 1,819,045,001,591 1,605,162,597,156
Export 689,556,053,623 658,166,869,335
2,508,601,055,214 2,263,329,466,491
Cost of sales
Domestic 1,330,566,381,892 1,147,398,983,180
Export 504,242,010,287 467,795,821,863
1,834,808,392,179 1,615,194,805,043
Gross profit
Domestic 488,478,619,699 457,763,613,976
Export 185,314,043,336 190,371,047,472
673,792,663,035 648,134,661,448

The segmental reporting by assets and liabilities is not presented as assets and liabilities are managed
at one place. Thus, the Board of Executive Officers does not present on segment report.

20. NET REVENUE

Current year Prior year

VND VND

Gross revenue
- Sales of finished goods and merchandise 2,511,545,160,533 2,263,632,509,063
- Others 1,500,998,885 242,439,910
2,513,046,159,418 2,263,874,948,973 i
Deductions
-Sales return 4,445,104,204 545,482,482
)1
Net revenue 2,508,601,055,214 2,263,329,466,491
H
In which:
- Revenuefrom related parties(Note 28) 3,279,483,844 4,923,147,617

21. PRODUCTION COST BY NATURE

'X
Current year Prior year NH^
VND VND TE
M
Raw materials and consumables 1,859,286,714,099 1,724,756,928,156
Labour costs 337,889,927,538 339,135,997,634
Depreciation and amortisation 28,856,298,936 28,843,816,626
Out-sourced services 90,389,193,621 78,078,470,711
Others 325,952,296,724 290,667,261,465
2,642,374,430,918 2,461,482,474,592

19
CHOLIMEX FOOD JOINT STOCK COMPANY
NOTES TO THE FINANCIAL STATEMENTS(Continued) FORM B 09-DN

22. FINANCIAL INCOME

Current year Prior year

VND VND

Bank interest income 20,798,292,915 15,276,916,817

Foreign exchange gain 1,937,590,976 2,551,720,812
22,735,883,891 17,828,637,629

23. FINANCIAL EXPENSES

Current year Prior year

VND VND

Interest expense 2,267,053,065 5,550,612,330

Foreign exchange loss 1,774,678,595 624,772,896
Reversal of provision for impairment of
trading securities (1,926,748,125)
2,114,983,535 6,175,385,226

24. SELLING, GENERAL AND ADMINISTRATION EXPENSES

Current year Prior year

VND VND
a. Selling expenses
Salaries 47,448,624,676 36,468,447,238
Depreciation 220,774,416 195,832,402
Transportation 83,440,877,870 53,266,366,893
Advertising, marketing and commission 63,679,908,992 61,910,729,481
Others 153,170,962,007 154,326,772,454 T[
347,961,147,961 306,168,148,468

'H
b. General and administration expenses
Salaries f
81,517,279,181 103,033,050,707
Depreciation 3,184,995,226 3,294,861,424 1
Outsourced service 5,233,846,156 6,032,410,436
Others 27,878,646,019 21,442,186,053 ●T
117,814,766,582 133,802,508,620

25. CURRENT CORPORATE INCOME TAX EXPENSE

Current year Prior year ^

VND VND
*
Profit before tax 232,484,218,535 223,321,906,930
Adjustments for taxable income
Add back: Non-deductible expenses 155,982,325
Assessable income 232,484,218,535 223,477,889,255
Normal tax rate 20% 20%
Corporate income tax expense 46,496,843,707 44,695,577,851

The Company is obliged to pay corporate income tax at the rate of 20% on taxable income.

20
CHOLIMEX FOOD JOINT STOCK COMPANY
NOTES TO THE FINANCIAL STATEMENTS (Continued) FORM B09-DN

26. BASIC EARNINGS PER SHARE

Basic earnings per share is calculated by dividing the net profit attributable to shareholder after
deducting the bonus and welfare funds by the weighted average number of ordinary shares
outstanding during the year.

Current year Prior year

VND VND

Accounting profit after corporate income tax 185,987,374,828 178,626,329,079

Bonus and welfare fund (*) (9,299,368,741) (8,931,316,454)
Profit for the purpose of calculating
basic earnings per share 176,688,006,087 169,695,012,625
Weighted average number of ordinary
shares to calculate basic earnings per share 8,100,000 8,100,000
Basic earnings per share 21,813 20,950

(*} According to Resolution of the Company's Annual Shareholders' Meeting No. Ol/NQ-OHCO dated 28
April 2021, bonus and welfare funds of 2021 are established upon approval of shareholders at 5% of
profit after tax. The Company applied this rate to estimate the bonus and welfare funds in the year to
calculate the basic earnings per share. The final figures will be determined and approved by
shareholders at the Company's Annual Shareholder Meeting.

27. COMMITMENTS

Operating lease commitments

Current year Prior year

VND VND
Minimum lease payments under operating leases
recognised in the income statement for the year 7,291,856,381 4,009,180,152 *4

T
At the balance sheet date, the Company had outstanding operating lease commitments under non- k
cancellable operating leases, which fall due as follows: H

Closing balance Opening balance .\1

VND VND

Within one year 6,653,848,152 2,880,000,000

In the second to fifth year inclusive 18,253,848,152 8,640,000,000
After five years 2,640,000,000
24,907,696,304 14,160,000,000 /CHl NH,
CONG TY
The operating lease commitments represent the rentals payable by the Company for renting the DELOr
warehouses in Vinh Loc Industrial Park, Binh Chanh District, Ho Chi Minh City, Vietnam. VfETN
●'■9
Capital commitment

According to the Resolution of the Board of Directors No. 03/NQ-HDQT dated 12 April 2021, the Board
of Directors approved the investment policy of phase 1 for the new factory at Vinh Loc 2 Industrial Park,
Ben Luc District, Long An Province, including land rental and construction costs. Currently, the project is
in the implementation stage of phase 1. The Company has been granted the Investment Registration
Certificate No. 4807848131 dated 17 November 2021 by Long An Economic Zone Authority, with the
total investment of two phases is VND 850 billion. The Company has signed a land lease contract, the
lease period is until 25 May 2061, with land lease value of VND 139,904,604,772. As of 31 December
2021, the value of the land lease contract signed by the Company but not yet implemented is VND
84,108,990,315.

21
CHOLIMEX FOOD JOINT STOCK COMPANY
NOTES TO THE FINANCIAL STATEMENTS(Continued) FORM B09-DN

28. REUTED PARTY TRANSACTIONS AND BALANCES

List of related parties with significant transactions and balancesfor the year:

Related party Relationship

Cho Lon Investment and Import Export Corporation Major shareholder

Masan Food One Member Company Limited Major shareholder
Nichirei Foods Inc. Major shareholder
Vinh Loc Industrial Park Company Limited Subsidiary of major shareholder
Vinh Loc- Ben Luc Industrial Zone Construction and Investment
Corporation Affiliate of major shareholder

During the year, the Company entered into the following significant transactions with its related
parties;

Current year Prior year

VND VND
Purchases and services
Cho Lon Investment and Import Export Corporation 713,022,618 4.646.322,744
Vinh Loc Industrial Park Company Limited 12,741,572,846 9,170,221,930
68,391,652,867 13,816,544,674
Land lease
Vinh Loc - Ben Luc Industrial Zone Construction
and Investment Corporation 54,937,057,403

Sales
Cho Lon Investment and Import Export Corporation 3,250,722,632 4,868,286,837
Vinh Loc Industrial Park Company Limited 28,761,212 54,860,780
3,279,483,844 4,923,147,617

Dividends paid
Cho Lon Investment and Import Export Corporation 16,490,000,000 16,490,000,000
Masan Food One Member Company Limited 13,296,085,000 13,296,085,000
Nichirei Foods Inc. 7,695,000,000 7,695,000,000
37,481,085,000 37,481,085,000

Significant related party balances as at the balance sheet date were as follows:

Closing balance Opening balance

VND VND
Short-term trade payables
Vinh Loc Industrial Park Company Limited 762,456,099 14,931,267

Other short-term receivables

Vinh Loc Industrial Park Company Limited 135,902,000 94,026,000

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CHOLIMEX FOOD JOINT STOCK COMPANY
NOTES TO THE FINANCIAL STATEMENTS (Continued) FORM B09-DN

Total remuneration paid to the Company's Board of Directors, Supervisors and Executive Officers during
the year was as follows:

Current year Prior year

VND VND

Board of Directors
Chairman 600,000,000 600,000.000
Members 360,000,000 360,000,000

Board of Supervisors
Head of the Board 422,400,000 387,600,000
Members 48,000,000 48,000,000

Board of Executive Officers

Chief Executive Officer 1,225,000,000 764,414,615
Deputy Chief Executive Officer 1,607,268,700 1,336,137,692
4,649,068,700 3,496,152,307

SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION

Supplemental non-cash disclosures

Interest earned from bank deposits during the year excluded VND 5,960,126,039 (2020: VND
12,246,580,554), representing interest earned during the year that has not yet been received.
Consequently, changes in receivables had been adjusted by the same amount.

Dividend paid excluded an amount of VND 368,053,435 (2020: VND 321,216,185), representing the
dividends that have not yet been paid. Consequently, changes in payables have been adjusted by the
same amount.

Cash outflows for purchases of fixed assets and construction in progress during the year included an
amount of VND 253,253,000 (2020; nil), representing an addition in fixed assets in prior year that has
been paid in the current year. Consequently, changes in payables have been adjusted by the same ’
amount.

SUBSEQUENT EVENTS 1X h
According to Resolution of the Board of Directors No.
02/NQ-HDQT dated 1 March 2022, on 24 March ^
2022, the Company has closed the list of shareholders for dividend payment in advance of the year
2021 dividend at the rate of 50%, corresponding to shareholders owning one (01) share will receive

THUG

Huynh Minh Due Nguyen Thi Bich Ngoc Dlep Nam Hai
Preparer Chief Accountant Chief Executive Officer
26 March 2022

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