uy Vinhomes Joint Stock Company [previously known as Hanoi Southern City Development Joint Stock Company] Separate financial statements 34 December 2017pubis tub ls wy uo ui utiwu J Vinhomes Joint Stock Company [previously known as Hanoi Southern City Development Joint Stock Company] CONTENTS General information Report of management Independent auditors’ report ‘Separate balance sheet ‘Separate income statement ‘Separate cash flow statement Notes to the separate financial statements 11-12 13-58ul pty ud 1 dlp uit Vinhomes Joint Stock Company [previously known as Hanoi Southern City Development Joint Stock Company] GENERAL INFORMATION THE COMPANY Vinhomes Joint Stock Company (‘the Company’), previously known as Hanoi Southern City Development Joint Stock Company, is a shareholding company incorporated under the Law on Enterprises of Vietnam pursuant to the Business Registration Certificate No. 0103022741 issued by the Hanoi Department of Planning and Investment on 6 March 2008 and the Business Registration Certificate No. 0102671977 dated 5 August 2010 on registration of a shareholding company. According to the 19th amended Enterprise Registration Certificate dated 2 February 2018, the Company changed its name into Vinhomes Joint Stock Company. The Company subsequently received amended Enterprise Registration Certificates, with the latest being the 21" amended Enterprise Registration Certificate dated 23 February 2018, The current principal activities of the Company are leasing offices, constructing and trading apartments in Vinhomes Times City project at No. 458, Minh Khai Street, Vinh Tuy Ward, Hai Ba Trung District, Hanoi, Vietnam and No. 25, Alley 43, Linh Nam Street, Mai Dong Ward, Hoang Mai District, Hanoi, Vietnam. The Company's head office is located at No. 458, Minh Khai Street, Vinh Tuy Ward, Hal Ba Trung District, Hanoi, Vietnam. The Company's business address is at No. 7, Bang Lang 1 Street, Vinhomes Riverside Eco-urban Area, Viet Hung Ward, Long Bien District, Hanoi, Vietnam. BOARD OF DIRECTORS Members of the Board of Directors during the year and at the date of this report are: Mr Pham Nhat Vuong Chairman Appointed on 21 February 2018 Ms Mai Huong Noi Chairwoman Resigned on 21 February 2018 Ms Nguyen Dieu Linh Member Appointed on 21 February 2018 Mr Nguyen Viet Quang Member ‘Appointed on 21 February 2018 Ms Cao Thi Ha An Member Appointed on 24 February 2018 Mr Varun Kapur Independent member Appointed on 24 February 2018 Mr Mueen Uddeen Independent member Appointed on 24 February 2018 Mr Pham Thieu Hoa Member Resigned on 21 February 2018 Ms Nguyen Mai Hoa Member Resigned on 21 February 2018 BOARD OF SUPERVISION Members of the Board of Supervision during the year and at the date of this report are: Mr Pham Khoi Nguyen Head of Board of Supervision Appointed on 21 February 2018 Ms Le Thi Kim Thanh Head of Board of Supervision Resigned on 21 February 2018 Ms Doan Thi Thu Mai Member Appointed on 21 February 2078 Ms Le Thi Duyen Member Appointed on 24 February 2018 Ms Doan Thi Bich Ngoc Member Resigned on 21 February 2018 Ms Doan Thi Ha Member Resigned on 21 February 2018 ssn oNLiu tt _l Vinhomes Joint Stock Company [previously known as Hanoi Southern City Development Joint Stock Company] GENERAL INFORMATION (continued) MANAGEMENT Members of the management during the year and at the date of this report are: Ms Nguyen Dieu Linh General Director Appointed on 23 February 2018 Mr Nguyen Viet Quang General Director Resigned on 23 February 2018 Ms Nguyen Thi Thu Hoai_ Deputy General Director Appointed on 21 February 2018 Mr Dougias John Farrell Deputy General Director Appointed on 21 February 2018 Ms Nguyen Ngoc Thuy Linh Deputy General Director Appointed on 24 February 2018 ‘Mr Nguyen Duc Quang Deputy General Director Appointed on 21 Februsry 2018 ‘Ms Nguyen Mai Hoa Deputy General Director Resigned on 21 February 2018 Appointed on 20 September 20:17 Mr Pham Thiew Hoa Deputy General Director Ms Phi Thi Thuc Nga Deputy General Director Resigned on 21 February 2018 Ms Mai Thu Thuy Deputy General Director Resigned on 21 February 2018 LEGAL REPRESENTATIVE The legal representative of the Company from 1 January 2017 to 22 February 2018 is Mr Nguyen Viet Quang and from 23 February 2018 to the date of this report is Ms Nguyen Dieu Linh, General Director. AUDITORS. ‘The auditor of the Company is Emst & Young Vietnam Limited.Vinhomes Joint Stock Company [previously known as Hanoi Southern City Development Joint Stock Company] REPORT OF MANAGEMENT Management of Vinhomes Joint Stock Company ("the Company’) is pleased to present this report and the seperate financiel statements of the Company for the year ended 31 December 2017. MANAGEMENT'S RESPONSIBILITY IN RESPECT OF THE SEPARATE FINANCIAL STATEMENTS Management is responsible for the separate financial statements of each financial year which give @ true and fair view of the seperate financial posttion of the Company and of the separate results of its ‘operations and its separate cash flows for the yeer. In preparing those separate financial statements, management is required to: » select suitable accounting policies and then apply them consistently; > make judgement and estimates that are reasonable and prudent; > state whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the separate financial statements ; and » prepare the separate financial statements on the going concern basis unless it is inappropriate to presume that the Company will continue its business. ‘Management is responsible for ensuring that proper accounting records are kept which disclose, with reasonable accuracy at any time, the separate financial position of the Company and to ensure that the accounting records comply’ with the applied accounting system. It is also responsible for safeguarding the assets of the Company and hence for taking reasonable steps for the prevention and detection of fraud and other irregulartties. Management confirmed that it has complied with the above requirements in preparing the accompanying separate financial statements. STATEMENT BY MANAGEMENT Management does hereby state that, in its opinion, the accompanying separate financial statements give a true and fair view of the separate financial position of the Company as at 31 December 2017 and of the separate results ofits operations and its separate cash flows for the year then ended In accordance with Vietnamese Accounting Standards, Vietnamese Enterprise Accounting System and the statutory requirements relevant to the preparation and presentation of the separate financial statements. ‘The Company has subsidiaries as disclosed in the separate financial statements. The Company has prepared the consolidated financial statements of the Company and its subsidiaries for the year ended 31 December 2017 ("the consolidated financial statements’) dated 25 February 2018, Users of the separate financial statements should read them together with the said consolidated financial statements in order to obtain full information on the consolidated financial position, consolidated results of operations and consolidated cash flows of the Company and its subsidiaries, nt: Hanoi, Vietnam 25 February 2018rst & Young Vietnam Limited Tel: +8424 3831 9100 ‘th Floor, ComerStone Building Fax: + 84 24 3831 5090 416 Phan Cha Trinh Street eycom Building a better Hoan Kiem bist working world Hane, 5.8 of Vietnam Reference: 60871645/19450158, INDEPENDENT AUDITORS’ REPORT To: ‘The Shareholders of Vinhomes Joint Stock Company [previously known as Hanoi Southern City Development Joint Stock Company] We have audited the accompanying separate financial statements of Vinhomes Joint Stock Company (the Company’) as prepared on 25 February 2018 and set out on pages 6 to 58, which comprise the Separate balance sheet as at 31 December 2017, and the separate income statement and the separate cash flow statement for the year then ended and the notes thereto. Management's responsibility Management is responsible for the preparation and fair presentation of these separate financial statements in accordance with Vietnamese Accounting Standards, Vietnamese Enterprise Accounting ‘System and the statutory requirements relevant to the preparation and presentation of the separate financial statements, and for such internal control as management determines is necessary to enable the preparation and presentation of the separate financial statements that are free from material misstatement, whether due to fraud or error. Auditors’ responsibility ur responsibilty is to express an opinion on these separate financial statements based on our audit We conducted our audit in accordance with Vietnamese Standards on Auditing. Those standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the separate financial statements are free from material misstatement. ‘An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the separate financial statements. The procedures selected depend on the auditors' judgment, including the assessment of the risks of material misstatement of the separate 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 presentation of the separate financial statements in order to design aucit procedures thal 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 management, as well as evaluating the overall presentation of the separate financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion, ot oeEY Building a better working world Opinion In our opinion, the separate financial statements give a true and fair view, in all material respects, of the ‘separate financial position of the Company as at 31 December 2017, and of the results of its separate operations and ils separate cash flows for the year then ended in accordance with Vietnamese ‘Accounting Standards, Vieinameso Enterprise Accounting System and the statutory requirements relevant to the preparation and presentation of the separate financial statements. Emphasis of matter ‘We draw attention to Note 2.1 of the separate financial statements. The Company prepared the consolidated financial statements of the Company and its subsidiaries for the year ended 31 December 2017 in accordance with Vietnamese Accounting Standards, Vietnamese Enterprise Accounting System and the statutory requirements relevant to the preparation and presentation of the consolidated financial statements. We have audited those consolidated financial statements and our auditors’ report dated 25 February 2018 expressed an unmodified opinion. Our opinion is not modified in respect of this matter. Tran Thanh Thuy Auditor ‘Audit Practising Registration Certificate No. 3483-2015-004-1 Certificate No. 3076-2014-004-1 Hanoi, Vietnam 25 February 2018q ee Vinhomes Joint Stock Company BO1-DN = [previously known as Hanoi Southern City Development Joint Stock Company] : ‘SEPARATE BALANCE SHEET c as at 31 December 2017 ASSETS Ending balance | Beginning balance ‘A. CURRENT ASSETS 11,947,686,826,096 | 6,607,359,667,426 1. Cash and cash equivalents 473,221,202,726 | 389,942,871,329 1. Cash 229,984,832,159 | 389,942,871,329 2. Cash equivalents 243,286,370,567 - Ll ul Current accounts receivable 11,110,791,395,609 | 983,941,924,368 4. Short-term trade receivables | 5.1 | 10,684,882,751,065| 400,024,215,175 2. Short-term advances to suppliers 182,684,817,722 | _189,769,629,263, 3. Short-term loan receivables 191,999,942,002 | 368,627,391,265 4. Other short-term receivables 67,267,554,125, 40,254,377,410 5. Provision for doubtful short- = term receivables (16,043,669,305) | _(8,733,688,735) x & it % x ih dd lJ - MM. Inventories 127,220,706,982 | 4,826,864,306,760 = 4. Inventories 127,220,706,982 | 4,828,864,306,780 Ee WV, Other current assets 236,453,520,779 | 404,610,564,949 4. Short-term prepaid expenses 4,862,951,921 | 307.752.195.848 2. Value-added tax deductible 35,012,101,873 41,731,071 3. Other current assets 198,578,466,985 | 96,816,638,030q m9 ch tIoly UJ Vinhomes Joint Stock Company [previously known as Hanoi Southern City Development Joint Stock Company] SEPARATE BALANCE SHEET (continued) as at 31 December 2017 B01-DN Currency: VND Beginning balance Code | ASSETS Notes| Ending balance (Rociassiied) 200 |B, NON-CURRENT ASSETS 13,043,630,332,920 | 18,718,860,777,919 210 | 1. Long-term receivables 5,128,683,218 5,751,204,560 215 4. Long-term loan receivables | 6 3,257,497,661 3,989,916,115 216 | 2. Other long-term receivables | 7 1,871,185,557 1,761,280,445 220 | I. Fixed assets 1,204,261,364,278 | 1,109,804,197,131 221 4. Tangible fixed assets 11 | 1'198,373\384,050 | 1,109,752,989,541 222 Cost 1,288,973,307,066 | 1,196,803,735,988, 223 ‘Accumulated depreciation (00,599,923,016) | _(47.050,766,447) 227 | 2. Intangible fixed assets 8,887,980,228 51,227,590 228 Cost 6,646,445,607 613,785,952 228 ‘Accumulated amortisation (758,465,579) (682,558,362) 230 | ill, Investment properties 12 163,038,247,202 | 171,420,271,135 231 4. Cost 198,220,103,798 | 196,220, 103,796 232 | 2. Accumulated depreciation (33,187,856,594) | (24,799,832,661) 240 | IV. Long-term assets in progress 15,282,099,246| 165,329,465,868 242 1. Construction in progress 18,282,099,346 | 165,329,465,868 280 | V. Long-term iovestments 13 | 11,651,058,514,300 | 17,262,648,436,478 254 Invesiments in subsidiaries | 13.1 | 9,905,433,104,300 | 11,165,423,84,078 252 | 2. vestmen'snjnty controlled entities and associates 132 =| 2,072,167,400,000 253 | 3. Investmentin other entities | 13.3 | 1,695,628,410,000 | 3,975,057,652,400 255 | 4. Held-to-meturity investments: 13 50,000,000,000 50,000,000,000 260 | VI. Other fong-term assets 4,861,424,576 3,907,202,747 262 1. Deferred tax assets 26.3 4,881,424,576 3,90/,202,/4/ 270 | TOTAL ASSETS 24,991,317,189,016 | 25,326,220,445,345 SSM WATTSane du Li ub tit) Vinhomes Joint Stock Company B01-DN [previously known as Hanoi Southern City Development Joint Stock Company] ‘SEPARATE BALANCE SHEET (continued) as at 31 December 2017 Currency: VND Code | RESOURCES Notes} Ending balance | Beginning balance 300 | C, LIABILITIES 7,749,068,936,237 | 19,896,385,054,561 310 | Current abilities 2,274,004,394,586 | 19,854,692,120,245 att 4. Short-term trade payables | 14.1 | "548,974,545.412| 1,242,913,217,478 312 2. Short-term advances from customers 142 | — 179,720,881.585 | 8,054,686,483,869 313 3. Statutory obligations 15 43,260,650,737 | '389,638,937,746 314 4, Payable to employees 324,659,886 184,994,526 315 5. Short-term accrued expenses 16 | 1,304,386,713,685 | 948,735,617,414 318 6. Short-term unearned revenues 6,815,841,241 2,339,362,728 319 7. Other short-term payables | 17 567,721,101,840 | 2,826,713,944,762 320 8. Short-term loans 18 | 9,623,000,000,000 } 6,790,579,561,702, 330 | 11. Non-current liabilities 5,475,064,541,651 41,692,934,316 337 4. Other long-term liabilties 4,451,059,653 5,370,112,546 338 2. Long-term loans 48 | 5,414,121,406,418 - 342 3. Long-term provisions 19 56,492,015,380 36,922,821,770till ui Vinhomes Joint Stock Company BO1-DN [previously known as Hanoi Southern City Development Joint Stock Company] SEPARATE BALANCE SHEET (continued) as at 31 December 2017 RESOURCES Ending balance | Beginning balance D, OWNERS’ EQUITY 7,242,248,222,779 | §429,835,390,786 | 1 Capital 7,242,248,222,779 | 5,429,835,390,784 1. Share capital 2,000,000,000,000 | 2,000,000,000,000 = Shares with voting rights 2,000,000,000,000 | 2,000,000,000,000 2. Undistributed eamines 5,242,248,222,779 - Undistributed earings by the end of prior year 3,429,835,390,784 | 7,356,399,968,578 - Undistributed earnings of| ourrent year 1,812,412,831,995 | 2,073,435,422,206 TOTAL LIABILITIES AND OWNERS’ EQUITY 24,991,317,159,046 | 25,326,220,445,345 Nguyen Thi Hong Trang Bui ThiHa Preparer Chief Accountant General Director Hanoi, Vietnam 25 February 2018 a oeou lu Vinhomes Joint Stock Company. [previously known as Hanoi Southern City Development Joint Stock Company] SEPARATE INCOME STATEMENT for the year ended 31 December 2017 BO2-DN Currency: VND code Note rrems o | _cumentyear | __Provousyoor ot | 4. Revenue romsale of goods and | | rendering of services 24.1 | 11,007,644,538,247 9,518,319,150,184 2 |2. Deductions nA - . i 10 | 3. Netrevenue from sale of yoods | and rendering of services 21.4 11,007,644,538,247 9,518,319,150,184 411 | 4. Cost of goods sold and services | rendered 22 | (6,962,836,565,920) | (5,384,114,926,827) 20 | 5. Gross proft rom sae of goods fin rendering of sorvcos oaseors72az7 | 4,134204,223,387 at |e. Finance income ana] sste1.eaat0 | 904,149,008469 22 | 7. Finance expenses 23 (831,218,743,685) (629,012,671,128) 23 |” Inwnct intra exons (eaden7, 102923) | (200224908 262) 25 | 8. soting expenses na | (274.204602,266) | (919,746402,275) 26. | 8. General and administrative expenses 24 | (196,700,865,297) | 024,223,725,690 20. | 10, operating prot 2.a38,75260,549 | 2651,271,200723 at | 11, oterincome sse.tes.s4s | 20,112,204.260 a2_| 12, ote expenses crasasreer | (48,504,501030 4a | 13, otner promt seinooce2e| 9.607,640,219 50 | 14, Accounting profit before tax 2204306270177 | 2,6603878,906,942 1 | 15, current corporate income tax expenses 26.1 (432,936,660,011) (585,822,247,034) 52 | 16. Deferred tax income/(expenses) | 26.3 964,221,829 (1,621,267,702) 0 | 17, Netproftatter tax | seragagannag| orssssczzzs Zod Nguyen Thi Hong Trang Bui Thi Ha ia 7 Preparer ‘Chief Accountant General Directc Hanoi, Vietnam 25 Februs sary 2018, 10i ll Vinhomes Joint Stock Company BO3-DN [previously known as Hanoi Southern City Development Joint Stock Company] SEPARATE CASH FLOW STATEMENT for the year ended 31 December 2017 Currency: VND Code | ITEMS Notes ‘Current year Previous year| |. CASH FLOWS FROM OPERATING ACTIVITIES 01 | Profit before tax 2,244,996,270,177 | 2,660,878,936,042 Adjustments for: 02 Depreciation of tangible fixed assets and investment properties and amortisation of intangible fixed assets 25 52,127,087,719 34,127,084,026 03 Provisions 27,479,174.180 13,574,110.264 04 Foreign exchange lossesi(gains) atising from revaluation of monetary accounts denominated in foreign currency 533,860 (815,030,748) 05 Profits from investing activiies | 21.2 (85,191,392,410) | (49,134,838,711) 06 Interest expenses 23 830,847,192,325 | 294,224,985,264 08 | Operating profit before changes in working capital 3,069,687,808,849 | _2,950,355,247,091 09 (Increasey/decrease in receivables: (2,270,211,622,484) | 602,634,352,711 10 Decrease in inventories 4/801,881,770,842 | 1,153,139,582,477 4 (Decreaseyincrease in payables (other than interest, corporate income tax) (10,884,624,632,584) 40,789,851,422 12 Decrease in prepaid expenses 302,889,243,827 428,714,665,551 4 Interest paid (464,014,474,976) | __(67,084,510,804) 15 Corporate income tax paid 15 {€38,996,390,860) | _(836,709,060,907) 20. | Net cash flows (used in)/from operating activities (6,983,418,200,266) | _4,471,850,128,481 Il, CASH FLOWS FROM INVESTING ACTIVITIES Purchase and construction of fixed assets and other long- term assets Loans to other entities and payments for purchase of debt instruments of other entities Collections from borrowers and proceeds from sale of debt instruments of other entities, Payments for investments in other entities (net of cash held by entity being acquired) Proceeds from sale of investments in other entities, {net of cash heid by entity being disposed) Interest and dividends received Net cash flows used in investing activities "1 (52,268,289,473) (170,000,000,000) 347,369,866,717 (3,190,722,718,500) 791,485,329,200 402)138,212,271 (2,172,037,599,785) (620,017,765,894) (636,300,738,202) 5,392,475,251,026 (11,819,432,704,672) 665,161,228,994 402,677,754,469 (6,476,436,974,859)im Vinhomes Joint Stock Company B03-DN [previously known as Hanoi Souther City Development Joint Stock Company] SEPARATE CASH FLOW STATEMENT (continued) for the year ended 31 December 2017 Currency: VND Code | ITEMS Current year Previous year a Il, CASH FLOW FROM a FINANCING ACTIVITIES 33 | Drawdown of borrowings and a issuance of corporate bonds 28,954,764,877,000| 7,684,888,771,606 ~ 34 | Repayment of borrowings and } bonds (20,716,030,111,702) | (5,776,200,621,058) > 40 h flows from financing 8,238,734,765,298 | 1,908,488,160,548 4 50 Net increase/(decrease) in cash for the yes 83,278,865,257 | (95,098,695,830) at 60 | Cash and cash equivalents at - beginning of year 389,942,871,329| 485,029,197,909 a 61 | Impact of exchange rate fluctuation (633,880) 12,369,250 70 | Cash and cash equivalents at end of year 4 389,942,871,329 473,224, 202,726 ¢ \ Nguyen Thi Hong Trang ‘Bui Thi Ha Preparer Chief Accountant wg Ld Hanoi, Vietnam - 25 February 2018 12Vinhomes Joint Stock Company BO9-DN [previously known as Hanoi Southern City Development Joint Stock Company] NOTES TO THE SEPARATE FINANCIAL STATEMENTS as at 31 December 2017 and for the year then ended 4. CORPORATE INFORMATION Vinhomes Joint Stock Company ("the Company"), previously known as Hanoi Southern City Development Joint Stock Company, is @ shareholding company incorporated under the Law on Enterprises of Vietnam pursuant to the Business Registration Certificate No, 0103022741 issued by the Hanoi Department of Planning and Investment on 6 March 2008 and the Business Registration Cerificate No. 0102671977 dated § August 2010 on registration of a shareholding company. According to the 19th amended Enterprise Registration Certificate dated 2 February 2018, the Company changed its name into Vinhomee Joint Stock Company. Tho Company subsequently rocoivad amended Enterprise Registration Certificates, with the latest being the 21® amended Enterprise Registration Certificate dated 23 February 2018. The current principal activities of the Company are leasing offices, constructing and trading apartments in Vinhomes Times City project at No. 458, Minh Khai Street, Vinh Tuy Ward, Hal Ba Trung District, Hanoi, Vieinam and No. 25, Alley 13, Linh Nam Street, Mai Dong Ward, Hoang Mai District, Hanol, Vietnam. The Company's head office is located at No. 458, Minh Khai Street, Vinh Tuy Ward, Hai Ba ‘Trung District, Hanoi, Vietnam. The Company's business address is at No. 7, Bang Lang 1 Street, Vinhomes Riverside Eco-urban Area, Viet Hung Ward, Long Bien District, Hanol, Vietnam. ‘The number of the Company's employees as at 31 December 2017: 11 (31 December 2016: 10). The Company's normal course of business cycle of real estate development activity begins when the Company receives investment certificate, carries out land clearance and construction works until the project is completed. Accordingly, the normal course of business cycle of real estate development activity ranges from 12 months to 36 months. ‘The Company's normal course of business cycle of other activities is 12 months, 13Vinhomes Joint Stock Company B09-DN [previously known as Hanoi Southern City Development Joint Stock Company] NOTES TO THE SEPARATE FINANCIAL STATEMENTS (continued) as at 31 December 2017 and for the year then ended 4. CORPORATE INFORMATION (continued) Corporate structure As at 31 December 2017, the Company has 7 subsidiaries. The information on these subsidiaries, along with the Company's voting rights and equity interest in each subsidiary are as below: Voting Equity right Interest Registered offteu's No. Company (%)____(0%6) address Principal activities 1 VinDS Trading and 99.00 98.00 No. 7, BangLang1 Retail and Services Limited Street, Vinhomes wholesale Liability Company Riverside Eco- department stores, Vind LLC") urban Area, Viet_ specialty stores, Hung Ward, Long management Bien District, Hanoi consulting and business support activities 2 Ecology 98.18 98.48 No. 191, BaTrieu investi Development and Street, Le Dai Hanh developing and Investment Joint Ward, Hai Ba trading real estate Stock Company ‘Trung District, Properties (Ecology JSC’) Hanoi 3. GiaLam Urban 85.00 83.46 No.7, BangLang1 Investing, Development and Street, Vinhomes developing and Investment Limited Riverside Eco- trading real estate Liability Company urban Area, Viet_ properties (Gia Lam Urban Hung Ward, Long Luc’) Bien District, Hanoi 4 Phu Gia Property 98.00 96.22 No.63,HangGa _ Investing, Trading Limited Street, Hang Bo developing and Liability Company Ward, Hoan Kiem trading real estate (Phu Gia LLC") District, Hanoi properties 5 Vietnam Investment 50.00 48.09 No. 191, Ba Trieu Investing, and Consulting Street, Le Dai Hanh developing and Investment Joint Ward, Hai Ba trading real estate ‘Stock Company Trung District, properties (Lieu Giai JSC’) Hanoi 6 Metri Sport and 98.00 98.00 No.7, Thang Long Investing, Entertainment Aventie, Me Tri developing and Development Joint Ward, Nam Tu trading real estate ‘Stock Company Liem District, Hanoi properties (Metri JSC") 7 Prime Land Real 91.48 89.65 Yen Nhan Village, Investing, Estate Investment Tien Phong developing and doint Stock Commune, Me Linh trading real estate Company ("Prime District, Hanoi properties Land Jsc’) 1"od Vinhomes Joint Stock Company BOS-DN [previously known as Hanoi Southem City Development Joint Stock Company] NOTES TO THE SEPARATE FINANCIAL STATEMENTS (continued) as at 31 December 2017 and for the year then ended 2, BASIS OF PREPARATION 2.1 Purpose of preparing the separate financial statoments The Company hes subsidiaries as disclosed in Note 1 and Note 13.1. The Company has prepared the consolidated financial statements of the Company and its subsidiaries for the year ended 31 December 2017 ("the consolidated financial statements’) deted 25 February ame. Users of the separule Mranclal statements should read then togelier with the seid consolidated financial statements in order to obtain full information on the consolidated financial position, consolidated results of oper Company and its subsidiaries. 22 Accounting standards and system The separate finar 's and consolidated cash flows of the statements of the Company, which are expressed in Vietnam dong ('VND"), are prepared in accordance with Vietnamese Enterprise Accounting System and Vietnamese Accounting Standards issued by the Ministry of Finance as per: >» Decision No. 149/2001/QD-BTC dated 31 December 2001 on the Issuance Promulgation of Four Vietnamese Accounting Standards (Series 1); > Decision No. 165/2002/QD-BTC dated 31 December 2002 on the Issuance Promulgation of Six Vieinamese Accounting Standards (Series 2); » Decision No. 234/2003/QD-BTC dated 30 December 2003 on the Issuance Promulgation of Six Vietnamese Accounting Standards (Series 3); > Decision No, 12/2005/QD-BTC dated 15 February 2005 on the Issuance Promulgation of Six Vieinamese Accounting Standards (Series 4); and » Decision No. 100/2008/QD-BTC dated 28 December 2005 on the Issuance Promulgation of Four Vietnamese Accounting Standards (Series 8). and and and and and Accordingly, the accompanying separate financial statements, including their utilisation are not designed for those who are not informed about Vietnam's accounting principles, procedures and practices and furthermore are not intended to present the financial position and results of operations and cash flows in accordance with accounting principles and practices generally accepted in countries other than Vietnam. 2.3 Applied accounting documentation system ‘The Company's applied accounting documentation system is the General Journal. 24 — Fiscal year ‘The Company's fiscal year applicable for the preparation of its separate financial statements starts on f January and ends on 31 December. 2.6 — Accounting currency ‘The separate financial statements ate prepared in VND which is also the Company's accounting currency. 15 Nite L4 Weaa Vinhomes Joint Stock Company BO-DN [previously known as Hanoi Southern City Development Joint Stock Company} NOTES TO THE SEPARATE FINANCIAL STATEMENTS (continued) as at 31 December 2017 and for the year then ended 3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES 3.1 Cash and cash equivalents Cash and cash equivalents comprise cash on hand, cash at banks and short-lerm, highly liquid investments with an original maturity of less than three months thet are readily ‘convertible info known amounts of cash and that are subject to an insignificant risk of change in value, 3.2 Inventories Inventories are stated at the lower of cost incurred in bringing each product to its present location and condition, and net realisable value. Net realisable value represents the estimated selling price in the ordinary course of business less the estimated costs to complete and the estimated costs necessary to make the sale. Inventory properties Property acquired or being constructed for sale of to be held for long-term lease that meets ee the requirements of outright revenue recognition in the ordinary course of business, rather than to be held for rental or capital appreciation, is held as inventory property and is measured at the lower of cost and net realisable value. Cost of inventory property includes: 7 » Freehold, leasehold and development rights for lend; Z » Amounts payable/paid to contractors for construction; and » Borrowing costs, planning and design costs, costs of site preparation, professional fees for legal services, property transfer taxes, construction overheads and other related costs. Netrealisable value is the estimated selling price in the ordinary course of the business, based i ‘on market prices at the reporting date and discounted for the time value of money if material, ‘and less costs to completion and the estimated selling expenses. - ‘The cost of inventory property recognised in the separate income statement on disposal is - determined with reference to the specific costs incurred on the property sold and an allocation a ‘of common costs based on the relative size of the inventory property sovd - Provision for obsolete inventories ‘An inventories provision is created for the estimated loss arising due to the impairment of value (through diminution, damage, obsolescence. etc.) of raw materials, finished goods, and other inventories owned by the Company, based on appropriate evidence of impairment available at the balance sheet date. Increases or decreases to the provision balance are recorded into the cost of goods sold account in the separate income statement. 16 Wa ceea Vinhomes Joint Stock Company B09-DN [previously known as Hanoi Southern City Development Joint Stock Company] NOTES TO THE SEPARATE FINANCIAL STATEMENTS (continued) 1 as at 31 December 2017 and for the year then ended a 3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) 33 Receivables Receivables are presented in the seperate financial statements at the carrying amounts due from customers and other debtors, after provision for doubtful debts. ‘The provision for doubtiul debts represents amounts of outstanding receivables at the balance sheet date which are doubtful of being recovered. Increases or decreases to the provision balarice are recorded as general and administrative expense In the sepaialy income a statement q 3.4 Tangible fixed assets 5 Tangible fixed assets are stated at cost less accumulated depreciation. 5 The cost of a tangible fixed asset comprises its purchase price and any directly attributable 5 costs of bringing the tangible fixed asset to working condition for its intended use. Expenditures for additions, improvements and renewals are added to the carrying amount of, = the assets and expenditures for maintenance and repairs are charged to the separate income: - statement as incurred. ‘When tangible fixed assets are sold or retired, any gain or loss resulting from their disposal i (the difference between the net disposal proceeds and the carrying amount) is included in the - separate income statement. 35 Leased assets The determination of whether an arrangement is, or contains @ lease is based on the substance of the arrangement at inception date and requires an assessment of whether the fulfilment of the arrangement is dependent on the use of a specific asset and the arrangement conveys a right to use the asset. A lease is classified as a finance lease whenever the terms of the lease transfer substantially all the risks and rewards of ownership of the asset to the lessee. All other leases are classified as operating leases. ae Where the Company is the lessor : Assets subject to operating leases are included as the Company's investment properties in the separate balance sheet. initial direct costs incurred in negotiating an operating lease are 7 recognised in the separate income statement as incurred, ee Income under operating leases are charged to the separate income statement on a straight- = line basis over the lease term. Where the Company is the lessee Rentals under operating leases are charged to the separate income statement on a straight- ee line basis over the lease term. 7 oreVinhomes Joint Stock Company B09-DN [previously known as Hanoi Southern City Development Joint Stock Company] NOTES TO THE SEPARATE FINANCIAL STATEMENTS (continued) ‘as at 31 December 2017 and for the year then ended 3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) 3.6 Intangible fixed assets Intangible fixed assets are stated at cost less accumulated amortisation. ‘The cost of an intangible fixed asset comprises of its purchase price and eny directly attributable costs of preparing the intangible fixed asset for its intended use. Expenditures for additions, improvements are added to the carrying amount of the assets and other expenditures are charged to the separate income statement as incurred ‘When intangible fixed assets are sold or retired, any gain or loss resulting from their disposal (the difference between the net disposal proceeds and the carrying amount) is included in the separate income statement. 3.7 Depreciation and amortisation Depreciation of tangible fixed assets and amortisation of intangible fixed assets are calculated ona straight-line basis over the estimated useful lfe of each asset as follows: Buildings and structures 47 years Machinery and equipment 9-10 years Office equipment 3 years Computer software 3 years Others 4 years 3.8 Investment properties Investment properties are stated at cost including transaction costs less accumulated depreciation, ‘Subsequent expenditure relating to an investment property thet has already boon recognized is added to the net book value of the investment property when it is probable that future economic benefits, In excess of the originally assessed standard of performance of the existing investment property, will flow to the Company. Depreciation and amortisation of investment properties are calculated on a straightine basis, over the estimated useful life of each asset as follows: Buildings 47 years, Others years The Company does not amortise indefinite land use right that presented as investment properties. Investment properties are derecognised when either they have been disposed of or when the investment properties are permanently withdrawn from use and no future economic benefit is expected from its disposal. The difference between the net disposal proceeds and the carrying amount of the assets is recognised in the separate income statement in the year of retirement or disposal Transfers are made to investment properties when, and only when, there is a change in use, ‘evidenced by ending of owner-occupation, commencement of an operating lease to another parly or ending of construction or development. Transfers are made from investment properties when, and only when, there is change in use, evidenced by commencement of ‘owner-occupation or commencement of development with a view to sale. The transfer from investment property to owner-occupied property or inventories does not change the cost or the carrying value of the property for subsequent accounting at the date of change in use. 18= Vinhomes Joint Stock Company B09-DN - [previously known as Hanoi Southern City Development Joint Stock Company] 4 3. 7 39 4 3.10 3 gus uo NOTES TO THE SEPARATE FINANCIAL STATEMENTS (continued) as at 31 December 2017 and for the year then ended SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) Borrowing costs Borrowing costs consist of interest and other costs that an entity incurs in connection with the borrowing of funds. Borrowing costs are recorded as expense during the year in which they are incurred, except to the extent that borrowing costs are directly attributable to the acquisition, construction or production of an asset that necessarily take a substantlal period of time to get ready for ils intended use or sale are capitalised as part of the cost of the respective asset. Prepaid expenses Prepaid expenses are reported as short-term or long-term prepaid expenses on the separate balance sheet and amortised over the period for which the amount are paid or the period in which economic benefit are generated in relation to these expenses. Short-term prepaid expenses inciude commision fees for selling apartments, provisional corporate income tax for downpayments from customers for the purchases of apartments at Vinhomes Times City project and other short-term prepaid expenses which are expected to bring future economic benefits within one ordinary course of business cycle, Investments Investments in subsidiaries Investments in subsidiaries over which the Company has control are carried at cost. Distributions from accumulated net profits of the subsidiaries arising subsequent to the date ‘of acquisition are recognised in the separate income statement. Distributions from sources ‘other than from such profits are considered a recovery of investment and are deducted to the cost of the investment. Investments in associates investments in associates over which the Company has significant influence are carried at cost, Distributions from acournulated net profits of the associates arising subsequent to the date of acquisition are recognised in the separate income statement. Distributions from sources other than from such profits are considered a recovery of investment and are deducted to the cost of the investment. Held-for-trading securities and investments in other entities Held-for-tiading securities and investments in other entities are stated at their acquisition costs. Provision for dimunition in value of investments Provision is made for any diminution in value of the investments at the balance sheet date based on difference between original price of shares and market price on that date in accordance with the guidance under Circular No.226/2009/TT-BTC dated 7 December 2009, and Circular No, 89/2013/TT-BTC dated 28 June 2013 issued by the Ministry of Finance, Increases or decreases to the provision balance are recorded as finance expense in the separate income statement. 19ud Vinhomes Joint Stock Company B09-DN [previously known as Hanoi Southern City Development Joint Stock Company] NOTES TO THE SEPARATE FINANCIAL STATEMENTS (continued) as at 31 December 2017 and for the year then ended 3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) 3.14 Provisions (continued) Warranty provision for apartments ‘The Company estimates provision for warranty expenses based on revenues and available Information about the repair of apartments sold in the past. 3.15 Appropriation of net profits Net profit after tax (excluding negative goodwill arising from a bargain purchase) is available for appropriation to investors/sharenolders after approval in the Annual General Meeting, and after making appropriation to reserve funds in accordance with the Company's Charter and Vietnam's regulatory requirements. 3.16 Advance from customers ‘Advance from customers for purchasing apartment in the future, which has not qualified to be recognised as revenue for the year, Is recorded to account “Advance from customers” in liability of the separate balance sheet. 3.17 Revenue recognition Revenue is recognised to the extent that itis probable that the economic benefits will flow to the Company and the revenue can be reliably measured, Revenue is measured at the feir value of the consideration received or receivable, excluding trade discount, rebate and sales return, The following specific recognition criteria must also be met before revenue is recognised Revenue from sales of inventory property Revenue from sales of inventory property is recognised when significant risks and rewards incidont to ownership of the properties has passed to the buyers. Revenue from leasing of properties Rental income arising from operating lease of properties is recognised in the separate income statement on a straight-line basis over the lease term. Income from investment cooperation Income from investment cooperation is recognised as shared revenue and determined reliably in according to the business investment cooperation contracts. Rendering of services income from rendering service is recognised when service is rendered to customers. Interest Income is recognised as the interest accrues (taking into account the effective yield on the asset) unless collectability is in doubt. 2sVinhomes Joint Stock Company BO9-DN [previously known as Hanoi Southern City Development Joint Stock Company] NOTES TO THE SEPARATE FINANCIAL STATEMENTS (continued) as at 31 December 2017 and for the year then ended 3. 317 3.18 ‘SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) Revenue recognition (continued) Dividends Income is recognised when the Company's entitlement as an investor to receive the dividend is established Income from securities trading and cepital transfer Income from securities trading and capital transfer is identified as difference between selling price and securities cost, This income is recorded on date when transaction arises, that is ‘when the transfer contracts exercised. Taxation Current income tax Current income tax assets and liabilities for the current and previous years are measured at the amount expected to be recovered from or paid to the taxation authorities, The tax rates and tax laws used to compute the amount are those that are enacted as at the balance sheet date. Current income tax is charged or credited to the separate income statement, except when it relates to items recognised directly to equity, in which case the current income tax is also dealt with in equity. Current income tax assets and liabilities are offset when there Is a legally enforceable right for the Company to set off current tax assets against current tax liabilties and when the ‘Company intends to settle its current tax assets and liabilities on a net basis. Deferred tax Deferred tax is provided using the liability method on temporary differences at the balance sheet date between the tax base of assets and liablties and their carrying amount for financial reporting purposes. Deferred tax liabilities are recognised for alll taxable temporary differences, except: > where the deferred tax liability arises from the initial recognition of an asset or liability in a transaction which at the time of the related transaction affects neither the accounting profit nor taxable profit or loss; > in respect of taxable temporarily differences associated with investments in subsidiaries and associates, and interests in joint ventures where timing of the reversal of the temporary difference can be controlled and it is probable that the temporary difference will not reverse in the foreseeable future. 22aah Vinhomes Joint Stock Company BO9-DN [previously known as Hanoi Southern City Development Joint Stock Company] id NOTES TO THE SEPARATE FINANCIAL STATEMENTS (continued) as at 31 December 2017 and for the year then ended ty ou 3, SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) 3.18 Taxation (continued) baal Deterred tax (continued) ud Deferred tax assets are recognised for all deductible temporary differences, carried forward unused tax credit and unused tax losses, to the extent that it is probable that taxable profit will be available against which deductible temporary differences, carried forward unused tax credit and unused tax losses can be utilised, except ut >» where the deferred tax asset in respect of deductible temporary difference which arises from the initial recognition of an asset or liability which at the time of the related transaction, affects neither the accounting proft nor taxable profit or loss; > in respect of deductible temporarily differences associated with investments in 4 subsidiaries, branches, associates, and interests in joint ventures, deferred tax assets are ji recognised only to the extent that itis probable that the temporary differences will reverse = in the foreseeable future and taxable profit will be available against which the temporary 7 differences can be utilised, net The carrying amount of deferred tax assets is reviewed at each balance sheet date and - reduced to the extent that itis no longer probable that sufficient taxable profit will be available 7 to allow all or part of the deferred tax asset to be utilised. Previously unrecognised deferred - tax assels are re-assessed at each balance sheet date and are recognised to the extent that ~ it has become probable that future taxable profit will allow the deferred tax assets to be recovered. Deferred tax assets and liabilities are measured at the tax rates that are expected to apply in the period when the asset is realised or the liability is settled based on tax rates and tax laws that nave been enacted at the balance sheet date. Deferred tax Is charged or credited to the separate income siatement, except when it relates a to items recognised directly to equity, in which case the deferred tax is also dealt with in the equity account. Deferred tax assets and liabilities are offset when there is a legally enforceable right for the 2 ‘Company to off-set current tax assets against current tax liabilities and when they relate to income taxes levied by the same taxation authority on: - > either the same taxable entity; or » when the Company intends either settle current tax liabilities and assets on a net basis or to realise the assets and settle the liabiities simultaneously, in each future period in which significant amounts of deferred tax labities or assets are expected to be settled or recovered, 23a Vinhomes Joint Stock Company B09-DN [previously known as Hanoi Southern City Development Joint Stock Company] Et NOTES TO THE SEPARATE FINANCIAL STATEMENTS (continued) a as at 31 December 2017 and for the year then ended 3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) 3.19 Segment information ‘A segment is a component determined separately by the Company which is engaged in providing products or related services (business segment) or providing products or services in a particular economic environment (geographical segment), that is subject to risks and returns that are different from those of other segments. Real estate end related services are the major activities to generate revenue and profits of the Company. As other revenue = ‘accounts for a small proportion of the total revenue of the Company, management assesses that the Company operates in only one business segment. In addition, management defines the Company's geographical segment based on the location of the property which is in Vietnam. ul u u 3.20 Related parties Parties are considered to be related parties of the Company if one party has the ability to ‘control the other party or exercise significant influence over the other party in making financial ‘and operating decisions, or when the Company and other party are under common control or i Under common significant influence. Related parties can be enterprise or individual, including a ‘close members of the family of any such individual. 4, CASH AND CASH EQUIVALENTS of Currency: VND Ending balance Beginning balence Cash on hand 92,748,986 5,732,951 Cash at banks 229,892,083,173 389, 937,136,378 Cash equivalents 243,236,370,567 : TOTAL 473,221,202,726 __389,942,871,329 it Cash equivalents include bank deposits with term of 1 month and at interest rate of 4.7% per a annum. 1 Details of each type of foreign currenoy: 2 Ending balance Beginning balance 3 Foreign currency: a ~ United States dollar (USD) 6614 6629 24a Vinhomes Joint Stock Company BO9-DN [previously known as Hanoi Southern City Development Joint Stock Company] NOTES TO THE SEPARATE FINANCIAL STATEMENTS (continued) as at 31 December 2017 and for the year then ended i] 5. TRADE RECEIVABLES AND ADVANCES TO SUPPLIERS is 5.1 Short-term trade receivables Currency: VND Ending balance Beginning balance u ~ Trade receivables 815,309,197,729 395,989,298,838 5 Joint Stock Commercial Bank for Foreign as Trade of Vietnam 36,712,658,040 _36,712,658,040 3 - Other customers 776,686,4/9,689 359,276,640,798 as Trade receivables from related parties = (Note 27) 9,869,483,613,336 034,916,337 TOTAL 10,684,882,751,065 __ 400,024,215,175 5.2 Short-term advances to suppliers ‘This represents advances to suppliers, constructors, consultants involved in Vinhomes Times City project and advances to @ charity organization for the purpose of supporting charity activities of the Group. - 6. LOAN RECEIVABLES a Currency: VND Ending balance Beginning balance i Short-term Current portion of long-term lendings 21,999,942,002 _24,697,885,462 ft Loans to corporate counterparties = 339,728,767,601 i Loans to related parties 7 (Note 27) 170,000,000,000 4,200,738,202 _ TOTAL 191,999,942,002 _ 368,627,391,265 cs Provision for doubtful loans receivables (13,643,669,305) —_(8,733,688,735) a Long-term e Loans to corporate counterparties 3,257,497,661 3,989,915,115 TOTAL 3,257,497,661 3,989,915,115 25| Vinhomes Joint Stock Company B09-DN [previously known as Hanoi Souther City Development Joint Stock Company} NOTES TO THE SEPARATE FINANCIAL STATEMENTS (continued) as at 31 December 2017 and for the year then ended 7. OTHER RECEIVABLES Currency: VND Ending batancs___Beyluning betas _ Balance Provision Balance Provision ‘Short-term Receivable from master account (i) 53,070,861,526 - 9,493,033,629 - Interest receivables 2,723,406,142 - 19,665,901, 165 : Others 11,105,442,616 : TOTAL 67,267,554,125 40,254,377,410 : In-viich: areas Other short-term receivables 13,721,738,671 ~ — 30,702,533,447 - Other short-term receivables from related parties (Note 27) 53,545,815,454 7 9,551,843,963 - Long-term Others __1,871,185,557 = __1,761,289,445 : TOTAL 4,871,185,557 = 1,761,289,445. : In which: ‘Other long-term receivables 1,871,185,557 = 1,761,289,445 : () Pursuant to the Centralised Cash Flow Management Agreement No, 40/2014/DTTTINGROUP-NHN dated 15 September 2014, Vingroup JSC. the parent ‘company, would perform centralised cash flow management for all companies within the Group via bank accounts at Joint Stock Commercial Bank for Investment and Development of Vietnam ("BIDV"). Accordingly, this represents the receivables from Vingroup JSC following the centralised cash flow management system at BIDV. BAD DEBTS ‘The Company's bad debts include overdue loan principals and interests receivable from corporate counterparties: Currency: VND Ending balance Beginning balance Recoverable Recoverable Debtor Cost ‘amount Cost amount Corporate counterparties 23,999,942,000 _7,956,272,695 _15,999,042,000 __7,266,253,265 TOTAL 23,999,942,000 _ 7,956,272,695 _15,999,942,000 _ 7,268,253,265 267 Vinhomes Joint Stock Company BO9-DN [previously known as Hanoi Southern City Development Joint Stock Company] NOTES TO THE SEPARATE FINANCIAL STATEMENTS (continued) as at 31 December 2017 and for the year then ended 4 9, INVENTORIES 7 Currency: VND aoe Ending balance Beginning balance ane Cost Provision Cost Provision a Completed inventory properties: 127,220,706,982 - 33,995,182,247, - 3 Inventory properties f under construction : = _4,794,869,124,533 : 4 TOTAL 127,220,706,982 306,780 aes 10. OTHER CURRENT ASSETS ‘Currency: VND a Ending balance Beginning balance = Electrical equipment system (i) 196,578,466,985 __96,816,638,030 ae TOTAL 196,578,466,985 96,816,638,030 () This is electrical equipment system which will be transferred to Hanoi City Power Corporation. 27eae ee Oso'pec'ese'eh'b = 6zs'82e'th 7 ZorLozlPO'OSL — G9e'ESe'Sez'ZhO'L soueieg BuIpua Tes'eae'esz'60l') = 7 worseve POr'Pse'GES'SOL — SLTOGETOL'CH6. (paysseieu) soueieg SuvuiBeg, qunowe Bure yen siveze'ess'0s —9Eee9e'0S sis izoe sovosvert 6V'01662'Sy ‘souzjeq Supug eovesiers'ey > sie" z98 zoveevz, ‘aye'sso'ver'ze Lvv'992'0S0'Le — 9eS'E9e"0S tt e6z'sat'ep'b oss'ple'sso've, (payssejooy) eouejeg Buuuiéen, uonejoasdep payeinwnooy He0vL6'r6r'L © 929'896'09 - soroiger's =~ - pojeroasdep Ayn ‘Se0'20FEL6'8ez | 9E9'ESEI9 ‘ySrSHy Ss Sov OLS ver L ‘PSB'EOTLSC'RGL —_Z9S'eze'690'680'L ‘souereq Bulpua srs eae 058 : : 7 are zee 08 suotppe 49410 zes'eet Zog'ezL ySy'Spp'LS ca Zes‘goo'sis'ol —-Szz"EL'SEL'ZEL ‘sseuBoud uj uoponujsuoo woy pauiejsuedy ‘896'SeL'E08'9S1': 920'Ege'99 - sovole'rer'L ——ZLO'LSS'zvs'zeL —_sze'v0z'991'296 yiSSe;00u) souereg Suluuibog 3809 1904 S160 jueudinbs eyo uoyevodsuen ——yueuudinbo sermons yo sueoy ue Louyooy —_pue sbulpyng GNA :fouauing SLASSV GaXI43TSIONVL “LE pepue vain 4204 0UN 404 pue ZLOz Jequieoed Le 1e se {panuguos) S1NAWALVLS WIONVNId SLVaWdaS FHL OL SALON [Auedwiog yoorg qulor juaudojaneg Allg WeuNog toueH se UMOLY AIsnoinaid] Na-60a Auedwog 490}¢ Julor sewoyul),a Vinhomes Joint Stock Company BOS-DN [previously known as Hanoi Southern City Development Joint Stock Company] NOTES TO THE SEPARATE FINANCIAL STATEMENTS (continued) as at 31 December 2017 and for the year then ended 42, INVESTMENT PROPERTIES = Currency: VND 7 Buildings, and Machinery and structures ‘oquipmant Total Cost: e Beginning balance } (Reciassiied) —140402.871 864 Ending balance 149,492,971, 864 48,727,731,932 iu Accumulated depreciation: = Baia batance ozasez2001 15875810000 ——_24,790,000.601 2 oe gt900sa718 __—sisieroz1s ___@,382,029.003 a Ending belance 12,413,975,719 __20,767,880,875 __33,181,856,504 st Net carrying amount: - Begining balance 140260440063 atStsen2re _1710271.195 - imeeneaseee 437,070.906,148 __25,950.851.057 _169,028247 202 - (Investment properties as at 31 December 2017 represent office for lease component of a Vinhomes Times City project. According to the draft valuation report by an independent - valuer, the fair value of these investment properties as at 31 December 2017 is VND497.8 billion = 43. LONG-TERM INVESTMENTS Z Currency: VND Notes Ending balance Beginning balance Cost Provision Cost Provision Investment in subsidiaries «13.1._—*9,905,433,104,300 ~ 14,165,423,384,078 - iz Investment in associates: 13.2 - - 2,072,167,400,000 - Other long- a term investments 13.3. -—_—1,695,625,410,000 - 3,975,057,662,400 - : Held-to- in maturity investments 0 50,000,000,000 __ 50,000,000,000 TOTAL 11,651,058,514,300 = _17,262,648,436,478 : () This represents the investment in bonds of Joint Stock Commercial Bank for Foreign - Trade of Vietnam — Ba Dinh branch, with term of 120 months, earning interest at rate of 7.87% per annum for the first year. Interest rate from the following years would be 12- month saving interest (+) 1% per annum. The carrying amount of these bonds as at 31 December 2017 is VND50 billion. 29ul L Vinhomes Joint Stock Company B09-ON [previously known as Hanoi Southern City Development Joint Stock Company] NOTES TO THE SEPARATE FINANCIAL STATEMENTS (continued) as at 31 December 2017 and for the year then ended 13. 13.4 LONG-TERM INVESTMENTS (continued) Investment in subsidiaries Details of the Company's subsidiaries, the voting rights and the equity interest of the Company in those subsidiaries as at 31 December 2017 are as follows: No Subsidlaries Voting Equity Head office Principal activities right (36) interest (4) 1 VindS LLC 98,00 $9,00 No.7,Banglang1 Retail and wholesale Stree!, Vinhomes in department stores, Riverside Eco-urban specialty stores, Area, Viet Hung management Ward, Long Bien consulting and District, Hanoi business support activities 2 Ecology JSC 98.18 $8.18 No. 191,BaTriev Investing, developing Street, Le Dai Hanh and trading real Ward, Hai Ba Trung estate properties District, Hanci 3 Metri Isc 98,00 $8.00 No.7, Thang Long Investing, developing Boulavard, Me Tri and trading real Ward, Nam Tu Liem estate properties District, Hanoi Details of each investment in subsidiaries of the Company is as follows (*): Subsidiaries Ending balance Boginning batance No. of shares ‘Amount (YND}- No, of shares ‘Amount (VND) Ecology JSC () 204,552,000 6,856,318,241,300 242,810,503 6,013,032,522,800 Metri JSC (i) 81,732,000 2,656.114,863,000 - - VinDS LLC +) “"e83,000,000,000 (*)_ 893,000,000,000 Vinpearlland JSC (ii) 2 = 139,434,787 _ 4,459,390,861,278 TOTAL 9,90 300 11,165 423,384,078 (*) The fair value of these investments have not been determined as at 31 December 2017 due to lack of market information. () This is a limited liability company. 30L id u Vinhomes Joint Stock Company B09-DN [previously known as Hanoi Southern City Development Joint Stock Company] NOTES TO THE SEPARATE FINANCIAL STATEMENTS (continued) as at 31 December 2017 and for the year then ended 13. 13.4 LONG-TERM INVESTMENTS (continued) Investment in subsidiaries (continued) (i) (i) «ip In April 2017, the Company acquired additional 17.25% shares of Ecology JSC from an affilate with total consideration of VNDS43 billion. As a result, the Company's equity interest in Ecology JSC increased to 98.18%. As at 31 December 2017, through Ecology JSC, the Company indirectly exercises control over the following subsidiaries: > Lieu Giai JSC; >» Gia Lam Urban LLC; and >» Phu Gia LLC, In April 2017, the Company acquired additional 96.80% shares of Metri JSC from Vingroup JSC, the parent company, with total consideration of VND2,624 billion. As a result, Metri JSC became a subsidiary of the Company. As at 31 December 2017, through Metri JSC, the Company indirectly exercises control over Prime Land JSC. (On 25 August 2017, pursuant to Resolution No. 01/2017/NQ-DHDCH-VPL JSC, the Annual General Meeting of Vinpeariland JSC ("Vinpeariland JSC") approved the merger of Vinpearliand JSC into Vinpearl JSC (‘Vinpeari JSC"), another subsidiary of Vingroup JSC. Accordingly, after legal procedures relating to merger transaction, Vinpeariland JSC was dissolved, and Vinpeari JSC inherited all the assets, legal rights and rewards, and obligations of oustanding liabilities of Vinpearliand JSC in its entirety. According to the merger contract dated 7 September 2017 signed between Vinpearlland {JSC and Vinpear! JSC, all the shares held by shareholders of Vinpearlland JSC will be exchanged with shares of Vinpear! JSC at the ratio of 1:1 (01 share of Vinpearlland JSC is exchanged for 01 share of Vinpear! JSC). Thereby, at the merger date, the Company held 46.31% shares in Vinpearl JSC and Vinpear! JSC beacame an associate of the Comeany. On 28 December 2017, the Company completed the transfer of its entire shares in \Vinpearl JSC to Vingroup JSC, the parent company, with the consideration of VND6,014 billion, There was no gain/loss arising from this transaction. 3tVinhomes Joint Stock Company B09-DN [previously known as Hanoi Southern City Development Joint Stock Company] NOTES TO THE SEPARATE FINANCIAL STATEMENTS (continued) as at 31 December 2017 and for the year then ended 13, LONG-TERM INVESTMENTS (continued) 13.2 Investment in associates Detalls of associates and the voting rights of the Company in those companies as at $1 December 2017 are as follows: Associates Ending balance Begining balence Number of Naber of shares Amount (VND) shares Amount (ND) Vinmee International General Hospital JSC CVinmec JSC’) () : = 147,167,740 1,471,877,400,000 VinE.co Agricultural Investment Development and Production LLC (Vino LLC’) (i) - : () ___800,480,000,000 TOTAL () This is a imited liabilty company (i) On 28 April 2017, the Company acquired additional 53.95% shares in Vinmec JSC from Vingroup JSC. As a result, the equity interest of the Company in Vinmec JSC increase to 99%, On 28 December 2017, the Company transferred its entire shares in Vinmec JSC to Vingroup JSC, the parent company, and Southern Star Urban Development and Trading Investment JSC (‘Southern Star JSC"), an afiliate. Accordingly, as at 31 December 2017, Vinmec JSC is no longer @ subsidiary of the Company. (i) On 28 December 2017, the Company completed the disposal of its entire shares in VinEco LLG to Vingroup JSC, the parent company. Thereby, VinEco LLC is no longer an associate of the Company. 32 a 7Wet Bae vee ee et © 51 SIL. Gy) ‘OSS HeIGY WODUIA UI uatu,senut Jo} }d89x@ ‘uoHeUL/oJU Je%seU Jo Y92} 0} ENP L492 JeqUUG0REG 1¢ je Se PEUIUE}Ep Uasq JOU aneY sJUBUSARUY BSOxp JO BN}eA se} BY, (,) cov ess Zs0EZ6% poe ‘wooooodse —«O0e 09 : - : O71 Super, ereysa ieaw z sowOULIA coz'eze's0r'e ove coe 7 7 7 (i) 96" ABsous coo'e0d'c0c're 009 cos : : : c cov'ess'ose'ze acs aN : ooooss'6es'is2, 00s CL 3 ceo = oe 7 - 7 960 360 ss 260 00088 7 : too 100 00'000'2 - o0'000'G00'st 009 8 ) 7 : c0'000'c00've © 009 009 w ooo'ors'ers'te@ —00't oor cxs'ou'z somes weussonul Cooreod'see'est'z zs zest ooL'ese'sez o00'o0s ves'aas'r sve sve ose'eae'est 9 (ana) (9) saxon (%) saieys (GNA) (e);se101M (9) se10ysj0 ON sony munowy Anb3 bu BuyonJ0°ON__junowy ‘Aino Nou Buon "wouerea Buuuibee 5728 Bue :(,) SMoj1O} SB eve sJUELUASEAUI WE}-BuO} JaUIO JO SI1E}oq siueussenuy wuer-Bu0] 10410 EEL (Penuyuoc) SINAWUSSIANI WYEL-ONOT “EL pepue uy 1294 Oup 40§ pue /LOz Jequiadeq Le 3e Se (panuquos) S1NAWLVLS TVIONVNId SLVYVdaS JHL OL SALON [Auedwos yoo1g qulop juoWdojonoq AUD WoUNNog JoURH se UMOUY AjsnoInald] Na-6og Auedwod yo0}g JUlor SSWOYUIA,Vinhomes Joint Stock Company BOS-DN [previously known as Hanoi Southern City Development Joint Stock Company] NOTES TO THE SEPARATE FINANCIAL STATEMENTS (continued) as at 31 December 2017 and for the year then ended 13. 13.3 LONG-TERM INVESTMENTS (continued) Other long-term investments (continued) aw w «iy tiv) () (wi) In September 2017, the Company completed the disposal of 78.5 milion shares in incom Retail JSC to individuals. In the same period, preference shareholders of Vincom Retail JSC exercised the conversion option to convert preference shares into ordinary shares. Thereby, the ownership of the Company in Vincom Retail JSC decreased to 8.25%. The feir value of this investment as at 31 December 2017 is VND7,397 billion. In December 2017, the Company acquired 1% shares in Vicentra JSC from Can Gio Tourist City Corporation (‘Can Gio Tourist JSC’), an affiliate On 5 April 2017, Vincom 3 Construction Management LLC changed its name into Vinservice LLC. During the year, the Company contributed capital into this entity According to the merger contract dated 8 November 2017 signed between Vinpearl JSC ‘and Vinpear! Trading Invesiment JSC, all the shares held by shareholders of Vinpearl Trading investment JSC would be exchanged for shares of Vinpearl JSC at the ratio of 4:1 (O1 share of Vinpeari JSC is exchanged with 01 share of Vinpear! Trading Investment JSC). Thereby, the investment of the Company in Vinpear! Trading Investment JSC became the investment in Vinpear! JSC. (On 28 December 2017, the Company completed the disposal of its entire shares in Vinpear! JSC to Vingroup JSC, the parent company (Note 13.1) In February 2017, the Company transferred its entire investment in Hai Linh Energy JSC to Vingroup JSC, the parent company. 34 X Wa