FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED 31 DECEMBER 2011

ReaI Estate 1 Joint Stwk Company previously d e d &use hdiing joint Stock Company of District I 1 was dablished on the basis of the equitbtion of the !3ate+wned company House Tiadiq

REAL ESTATE 11 JOINT SrOCK COMPANY

for the heal year ended 31 December 201 I

6 Cash flows statement

for the fiscal year ended 31 December 2011

7 Notes to the fhandal atatemenb

for the fiscal year ended 31 Decenther 201 1

8 Appendix

REAL =ATE I 1 JOINT S O C K COMPANY

Joint Stock Company ( ' Y h oompanfq preseot this report together with

for tba fiwd year ended 3 Dccembw 201 1

ReaI Estate 1 Joint Stwk Company (previously d e d &use hdiing joint Stock Company of District

I 1) was dablished on the basis of the equitbtion of the !3ate+wned company (House Tiadiq Joint Stock Company of District 1 I) in with the Decision No 5730/QD-W3 dated 31 hcember

2003 of the Chairman of the People's mik of Ho Chi M M City The company has k e n operating under the b u s b s s registratioa oertificrde No, 41 03002793 dated 22 October 2004 granted by

the Depa&nent of Planning and lawstmunt of Ho Chi Minh City

During its o p d m course, the company has been additionally pntcd the following mwded businas

=ghation by the W n t of Planning and hmdment of Ho Chi Minb City:

- The k a m d d b m h s s registration cc&lab on 02 F h m y 2005, the second one on 25 June

2005 d lkrthipd-onean 20 Ju~em7 q p d z i g ~ a d d i t h ~ of tbe business fudons

- The fopvth arnadtd b u s i m on d a t e dated 3 1 January 2008 regarding the change in the addresa of the head o h

- The fifth amended busin- mghhtion d c a t e datd 15 May 2010 q a d h g the change m title

of the Director to General D i ,

- The sixth a m d businem registmtion certiiicatt dated 09 September 2010 regding the change

in p d b a d capital of the company

- The seventh mbndod business regktratich d f i c a t e dated 03 October 20 1 1 regarding the increase iumwclyrital

Main op&io11% of the company as in the busitmi mgistmb mtiiicate: Trading houses; Building up

industrial wocb, public works and a; Pafarming interior dwxlration s e w i a ; hhuuhctwhg a

inding mmttwtion materials (not at the head o h ) ; Designing civil consindon w o h i d M

works; designing total space of construction wwks, d d i i n g inb'riur and War cmmuction wlerks,

Consulting s u p d s i i civil and i n d u d d mnshwtion worlts; hqwrins d a n h v e s h a t plans; I n d g in of tesidedd mas and indwhkl parks; teveling g m d ; Providing

~ w i c e a of k i n g how#$ p b aad wmehauses; Providing ptsperty sedccq Acting as agent of

g d s dqmihg; X)esignins sbwtum of civil and h h l r i a l work; Lm&bg Manufacturing

c m d r d n g materials (not rd tbe head om-); Execllting p d a b h t d umcrete building componentq

REAL ESTATE 11 3OXNT STOCK COMPANY

REPORT OF THE D m R S (e)

Building up civil, inti- and W c wodq Providing services of civiI and i n d d sanitation;

Provid'mg pd&g d c a s ; Caring and proservifig trees; Trading howhold appliances, fd, bevcmges

and do& cigarettes (except for prrwidihg catering smites); Trtsding d eaEatss, Providing

property brokerage swim; Providing property appraisal service; M d ' i d a t e floor mi-,

M d i n g propetty c o d t b g semi-; Providing propeaty a d o n swim, Performing pmpty

education, sewn- d , high-school d u d o n , v d d training (not q x d n g at the h d

ofice), college (not operating at the head office), university and postgraduate training {not operatbag at

the head ofiice); ]Providing d u c a t i d spa and e Providing other odudcmd -ices

w o n t h e w 9 soDexwQP * W

During tbe yew, the company's m w have berm i n c d by VND 98,7 billions, equivalent to

99,58% as compared with t h e of previous ymr mainly dw to the c~cognitim of the remaining income

h m transferring An Phu project in District 2, Ho Chi Minh City and the increase in income from

constructioa activitias

Also in this p, the cmpny has issued sham from its dried earnings to h m s e its pkesctibed

capital h m VND 26.000.000.000 to VNQ 36.399.950.000

The b i a I position as of 3 1 w b e r 201 1, ti10 business 4% and the cssh flows frx the ikcd

year ended 3 1 December 201 1 of the company have been expressed in tRe fiaancial statemah a t t d w l

to this mport (from page 06 to pap 33),

During the year, the company has temporarily d~~ the profit of 201 1 according to ttae Meuthg

Minute3 of the M of Managemmt on 12 November 201 1 as follows:

- &traction for bwineas p m t i o n fund (05% of profit after tax) VMI 1.790.603.468

- Man fox financial merved fitnd (05% of profit dh tax) ' VND 1,790,603-468

- -on for h n w and w e b fund (15% of profit after trlx

Including the rsm-ons to the B o d of Management and

- T h e D h t m o f t h e c o m p a a y h a r s b y ~ t h a t t b e r s have beennocventshm31 DBcembor2011

to tbe date of this report, which need any adjustments on the figures or the dischures in the h n c i a l

s&tements

a

The& r d o f d n r d & e O f f b m

T h e ~ ~ a n d t h e ~ v u ~ ~ o f t b e ~ r t u r i n g ~ ~ a n d a s o f t b e ~ O f this report inc*

Mr T& Thanh Bach

Mr Trau N p Phtsong

Ms Tran Thi Kim Hue

Member Member

M e m h Membw

08 October 2009

08 October 2009

08 October 2009

08 October 2009

Ms Tim Thi Kim Loan Chid of the Boolrd 28 April 2010 -

Mr Vo Kim T h o Member

Ms Nguya T h h Hoang Tram Member

REAL ESTATE 11 fOINT SrOCK COMPANY

REPORT OF TSE DIRECTORS Icmt.'l

Mi T m Thanh Bach G e n d Director 16 htober 2009 -

Mr Ta Quang Tu Deputy General D h b r 08 M b e r 2009 -

Mr Dang Huu Thanh Deputy Ganeral D h t m 16 October 2009 -

Ms Tran Thi Kim Hue Deputy General Dimtor 16 O c t o k 2009 -

Auditors

Auditing and Consulting Company Limited (Adkc) has p e r f o d the audit on the company 'e financial

statants for the fiscal year ended 31 Decrmber 2011, and has c x p m d its willingness to be appointed the company's auditor

- of the Directow

The Directors of the ampany are responsible for the preparation of the f m c i a l statements to give a

true and fair view of the h c i a l position, the business results, and the cash flows of the company for each of the company's fiscal year In order to prepam &use financial statements, the Directors must: select appmprhte accounting policies and apply them consistently;

make judgments and dtnms

state clearly whether the ammdng s b n h d s to be applied by ths caarpany are followed and dI

ths material incomplirrnoe with these standads are disclosed and explained in the financial statements; d

prepare tfie h c i d siatments of fhe company on the basis of the going-concern assumption,

except for the cases that the going-concern assumption is considered inappropriate

The Dimtom hereby ensure that all the r q h n e n t s mentioned above hrwe been followed when the financial statements are preptued, that all the accounting books of the compnny have been filly

recorded and can fairly mflact ths *cia1 position of the company at any t h o , and h a t dl the financial statements have been preprvred in complianoe with the Victmnese accounting standards and

system, which were issued together with the Decision No 1532006/Q&3TC dated 20 Much 2006 of the Minister of Finance as well as the circulars of the of Fiance giving guidance on tfie irnplemmtathn of the accomtittg system and s t a d d s of the Ministry of Finance

The D k c h n am also responsible to the assets of the company, and cmsqumtly have tdcen appmprW rnemmm to prevent and to detect h d s and other hquhtm

~ r o w l on t-wb

We, tba Directors, approve the w p a u y h g financial statements, which can tntly and fairly present the financial position as of 31 December 201 1, the b u s h m d t s and the cash flows for h e hd year then ended of the Real Estate 11 Joint Stock Company in conformity with the Vietnamtse Accounting Standads a d V i m awounting which were i d together with the Dsciion No

1 5/2tMQ%BTC datdd 20 March 2006 of the Minister of Finanw and other Cirmlars giving guidance

on the appMon of the rmccounling , of the

=Accam.m

ON TEIE FINMCfAt STATEMFNTS FOR THE FISCAL YEAR ENDED 2011

OF REAL =ATIF: 11 JOINT STOCK COMPANY THE SHAREHOLDERS, BOARD OF MANAGEMENT AND THE DIRECTORS

OF REAL ESTATE 11 JOINT STOCK C O M P W

We have audited the accompanying financial statements for the f i d year ended 201 I of Real Estate 1 I

Joint Stock Company, imludii the balance sheet as of 3 1 Dmmber 201 I, the income statement, the cash flow statement and the mks to the financial statements for the kcal year then ended, which was prepared

on 09 Febmmy 2012 ( f h n page 06 to page 33)

The preparation and the presentation of these financial statements are the responsibility of the company's

Directom, Our responsibility is to express an opinion on these h c i a l statements based on our atedit

Amuhwwu

We have conducted our audit in accordance with the Vietnamese Auditing Stan- These standards

require that we plan and perform the audit procedures to obtain a reasonable assurance that the fmancial statements are free h m material mistakes The audit is developed on the basis of our performing the

sampling method as well wi applying the necessary examinations and tests of evidences supporting the

amounts and the disclosum in the W c i a l statements The audit also h1udes our assessing the company's

compliance with the prevailing accounting standards a d system, the accounting principles and methods

applied, the material estimates and judgments of the company's Directors as we11 as our evaluating the

overall presentation of the financial statements W e believe that our audit bas provided reasonable bases for

our opinion

b u m air- auditor's o~lnions

hiring the year, the company has recognid the remaining income from the transfer of An Phu Project in

DiMct 2, Ho Chi Minh city and has accnwd an amount of VND 46.649.563.277 for gmeral Mastructure

expenditure given to the project's owner to develop the main infrastructure for tbe area of 87ha In which,

the compensation for land c l w m c t is VND42.115.39 1.503, which is determined on the basis of the surface and temporary unit price of VND 16.21 4.286/m2 (see Note V 16) This unit price is subject to change after

finalization with the key project owner

This report is made in two languages (Vietnamese and English), both of equal validity The Vietnamese

versign Wl be the original for reference when needed

REAL =ATE 11 JOINT STOCK COMPANY

*: No 205 Lac Long Quan, Ward 3, W c t 11, Ho Chi Mi& City

IIL S4ort-k.m accounts rsceQvable

1 Reoeivsrbls from currtomers

REAL ESTATE 11 JOIWC SCrSCK COMPANY

A d b No 205 Lac Long Quan, Ward 3, Distrid 1 1, Ho Chi Minh City

FINANCIAL STATEMENTS

Forthe ~ ~ e n d e d 3 1 ~ 2 0 1 1

Balance & a t (cow)

Code Note Erdhrg hhnce Beginning balance

REAL ESTATE 11 #IINT SrOeK COMPANY

Adbess:No.205 IacLongQum, Ward 3, District 11, Ho ChiMinh City FINANCIAL STATE-

Adv- from cummm

Taxes and other o b l i o n s to the State Budget

P r o v k h s for shortctsrin accomts payable

Bonus and welfare Ainds

Trading Government bonds

Long-term U i b i l i t h

Long-term accoum payable to sltpplim

Long-term inter-mnpq p@Ic

other long- ~yabb

Long-term debts and loans

M i x d incame tax payable

Coastraction mvestment fund

B u s h armgment supporting fund

Other sources and fun&

Sources of expenditure

Fund to form k e d assGts

TOTAL LIABILFIlES AM) OWNER'S EQUITY

7W s&teawnt skwrld h? r e d i n coqkmiion w#h tlw to the j l m i a l stofemen#

REAL ESCATE 11 JOINT STOCK COMPANY

A-No.205LacLwgQuom, Ward3,DisUict 11,HoCJiMinhCity

FINANCIAL STATEMENTS

For~fiscrliyearendcd31 Dbcember2011

Balance sheet (ant)

OFF-BALANCE SHEET ITEMS

6 l&habs for non-business and project e x p e n d i

Nguyen Thi Phuong Tam

Preparer

Rnynb Tbi Yen Nbi

REAL ESTATE! 11 JOINT SrOCK COMPAW

Address: No 205 Luc Lwg Quan, W d 3, D M c t 1 I, Ho Chi Mioh C i

I d Total aoeou~ting profit -re tax

15 Cwremt arpoporrte h a m e tir

16 D c t d corporate &mt tax

T h statement s W d k d h c u q t n m h w&h the notea to the j l ~ i d m r o C s

REAL ESTAtE 11 JOINT STUCK COMPANY

Add-: No 205 Long Q u a Ward 3, Dktritt 11, Ho Chi Minh City

FINANCEAL STATEMENTS

F o r k 6walmended31 Decem~2011

(indirect method) For the fbd year ended 2010

and &ex long-tpm asse& 21

Gaim b n dispwls md liquidation of fixad axws

and other long-tarm assots 22

L a m s g t v e n a n d ~ ~ o f d e b t ~

~ v e t y o f l o a n s g i v a d ~ o f d c b t

~ e n tof s0 t h d t h 24

Withdmwals of i m other entiti= 26

Receipta of lomi h&mb, dividends and pr& sbs 27 V.4;V1.3

REAL ESTATE 11 JOINT S O C K COMPANY

Addrew No 205 Lac h n g Quan, Ward 3, District 11, Ho Chi Minh City

FINANCIAL STATEMENTS

Cash ilow statement (tout)

Code Note C w e n t year Prtviow year

Net cml~ Rows during tbe yemr

Beginnlag a h a d clsb equlvalemts

Effects of flumatiom in foreign ex- ma

Ending cash and cnsh q u M n C

, Ngmyen Tbi Pbuong Tam

Prep-

REAL M A T E 11 JOINT SrOCK COMPANY

Addrew 205 Lac Long Quan, Ward 3, DisttieC 1 1, Ho Chi Minh City

FLNANCLAL STATEMENTS

For the fiscal year ended 3 1 December 201 1

For the M year mded 31 December 2011

OPERATION FUTURES

1 1rve.stment form

3 Main operations

: a joint stock company

: constructing, servicing and d i n g real estate- : building houses; manuhdwhg cm&&ng materials (not at the haad OEM); desi@g civil construction w&, leasing

tradingrsaltxbk

As at 3 1 Documber 201 1, the company has had 46 employees (at the cud of the previous year: 49 employees)

5 Effects of the cornpamy's opemtions on the finandal statements

During the year, the company's revenues have been hmmcd by W D 98,7 billions, equivalent to

99,58% as cumpad wiah those of previous year mainly due to the recognition of the remaining income from t m s f b h g An Phu project in JMrkt 2, Ho Chi Minh City and the increase in inane from cmsmction activities

Also in this par, the company has issued sham from its retained earnings to inmeam its

pmcribed capital from VND 26.000.000.000 to VND 36.399.950.000,

1 F W y e a r

The k a l year of the company is from 01 January to 31 Ihember mually

1 A c c o a n t i a g ~

The company has k e n applying the Vietnamese account@ system which was issued together with

ths Decision No 15/20WQWBTC dated 20 March 2006 of the M h i s b of Finance and the

of Finance

The om ensure to follow dl the requiremeats of the prevailing Vietnrrmese a m m t i n g

system and standards which were issued togetha with the h i s i o n No 15/2006/QfbElTC dated

20 March 2006 of the M i n w of Finance and the Circulars guiding the implumentation of the

accounting system and stmdads of the Ministxy of Finance in the preparation of thwt financial

m m t n t g

Thsa IM#~- an h r e g d ~ 1 ~ 1 q4madskosrIdbe read in coqjusu'h wuk &+M x h t e m m s 13

REAL ESTATE 11 JOINT StOCK COMPANY

Address: 205 tsac tong; Quan, W d 3, M c t 11, Ho Chi Minh City

2, Cash and msh equivalents

Cash and cash equivdents include cash m band, ash in bank, cash in transit and short-term

imrwbnenta of which the due data can oat exceed 3 months from the dates of tbe investmeats and

the convertibility into cash is easy, and which do not have a lot of risks in the aowersion into cash

3, Inventories

Inventoh are mrded at beir original costs cost0 include p h a s i n g eqmses, processing

expmcs, d other d k c t l y related costs to bring the i n v m b r k to the c u m t positions and

collditim

Inventories are recorded in line with the pslpetual method Costs of inventories are cdculatd h

line with the two following methods:

- As for d a l s purchased them &ptdml fbr oonstrudon work: specific i d d c a t i o n

method;

- As for other inventorim: m - i n fmt-out method

Frovision for &valuation of in&= is made when lheir costs are higher than their net

realimbh values Net realizable v a l m are the &hated m l l i p r i a of iavemtmk less the

estimated e x p s e s on product completion and other necessary cxpma on product consumption,

4 Trade mcdvable and othw receivable

Trade m l e md other receivable are recognized at the values on supporting documents and

introia

M i o n is made for each bad debt k i n g an tha orrtsEaoding debt age or estimated lass k r a d s

are as follows:

As for outstmd'ing &k

- Pmvisiolls arc made at the nfe of 30% of the value of debts outsbndhg €rum over 6

- Provisions zre made at the rate of 1 of die d u e of debts outstanding for over 3 years

As far doubtful debts: provisions are made basing on h estimated loss

These notes f t rn h & g d w q f m d 6 W be read In c o @ ~ ~ & & wit4 IlocjIttaucial statementd 14

REAL M A E 11 JOINT WUCK COMPANY

Addtea 205 Lac Long- W a d 3, District 11, Ho Chi Minh City

FINANCIAL STATEMENTS

For~fiscaty4erended31 December2011

Notw to the h m n c h l statements (COW)

5, TangibIefbd w t a

F aass& are detsrmhd by their historical coats less accumulated depreciation Historid costs

of ftxed include all the expenses of the company to have these fixed assets as of the dates

they are d y ' to be put into use Other expenses incurred subeequent to the i n i i mwgnition are

included in histoical costs of faed assets only if they cer&inIy bring more eoonomic benefits in

the future thanks to the use of tbsm assets Those which do not meet the above conditions will be

recorded into expenses during the period

When a fmd asset is sold or disposed, its historical cost and accumulated deprecilttion are W#en

off, then any gaid (loss) arisen are posted into the income or the expcmcs during the pariod

Fixed ass& are depreciated h aciccordance with the straight-lina method over their &mated useful

lives The depreciation years applied are as follows:

Investment property is p r o m being land we right, a buildii or a part of building, inhimcture

held by the owner or by the Iasee under a financial lease tu earn rental or for capM appreciation

Historical cost of investment pmperty includes all the expenses paid by tbe company or the fair

value of other consideration given to a q u k the assets at the time of ih acquisition or construction

Subsequent expenses relating to an invesbmt pmperty that have drew@ bsm recognized should

be added to fhe net book vdue of the investment when it is probable that future economic

bnefits, in excess of the origintllly assessed s t m d d of p d o m m m of the existing investment

property, will fiow ta the company

When the hwdment property is sold or disposed, its b r i d cost and accumulated depreciation

m ~ o & t h e n a n y ~ ( I ~ ~ ~ ) ~ a r e p o s t e d i n t o t h e h o o m e o r t h e c a r p e n s a s d u r i n g t h a period

h - property is depreciated in awohdance with &a stmight-lim mcthd over their estimated

useful lives The d q m i i n yetus applied are disclod in the Note IV.5

Borrowing costs are included into expense drrring the period upon generation In case the

bmmwhg msb am directly re W to the cmstmdicm or the p a b t i o n of an &set in progress,

0 f ~ ~ ~ c o s t s w i t I b e ~ ~

In the event of general b m w h g i which are partly used for a c q d g , constmcting or producing

an asset in p r o m the costs eligible for capitdimtion will be determined according to the

capiblliaion ratwr applied to average accumulated expen- on,that asset Tfre capitalhian

are mputed at the avmage -st rates on the bornwings not yet paid during the period,

sxcept for ~~ bmdngs swving the purpose of obtaining a specific asset

T l w ~ nom fm an i~tpal* q f a r r d s W k mad tn coqjunctio~~ with the financial starements 15

REAL -ATE 11 JOINT SrOCK COMPANY

205 Iac Long Quan, Ward 3, Distrkt I 1, Ho Chi Minh City

10, A p p m p W w for mmm@yment bmd ad unemployment ha-

Unemployment fund is wed to pay for wwmwe and unemployment allowaaces to the employ- who have worked fbr the company fbr over 12 momths until 31 December 2008 The rate of extraction for thii fund i 'I= of the monthly basis salary which is usud as the basis fm social

insum90 payment awl is included into the company's expenses

h u n t to the Law on Social hmmcc, 6om 01 January 2009, theemployers haue to pay to

unemployment inmame fund managed by V i e h m Social Insurance Agency at the rate of I% of

the lower amount between the bash monthly salary of tbe employee and the amount eqwl to 20

times of the general minimum monthly salary as m g u W by the Government in each

period With the application of the memploylnent insutance system, the employers do not bave to make any provision for unemployment allowances for the employees' W m g periods from 01 January 2009 However, the unemployment iaswance paid to the employees who have enough conditions to receive and have worked for the company before 01 Jaauary 2009 is the avemge salary in 6 consecutive months before the resigning date

o k s f f ~ ~ ~ c v w o f c p w

other source3 of capital

mminbg values of the

are formed from extraction from business results, waiuation on assets and

assts which are given or sponsored to the Corpomtion after deduction of

all taxes payable (ifany) for these assets

12 Dividends

Dividends are rewrded as ammm payable during the period in which the dividends are dlcloscd