FINANCIAL STATEMENTS 2012(FOR THE FIRST 6 MONTHS)

FINANCIAL STATEMENTS FOR THE FIRST 6 MONTHS OF THE FISCAL YEAR ENDING 31 DECEMBER 2012 REAL LINTATE 11... Notes to the interim financial statements for the f h t 6 month of the fiscal

FINANCIAL STATEMENTS FOR THE FIRST 6 MONTHS OF THE FISCAL YEAR

ENDING 31 DECEMBER 2012

REAL LINTATE 11

REAL m A T E 11 JOINT SrOCK COMPANY

CONTENTS

1 Contents

2 Report of the Directom

3 Auditor's report

4 Interim Balance sheet as of 30 June 2012

5 hterim Income statement

for the f h t 6 months of the Gal year ending 31 December 2013

6 Interim Cash flow statement

for the first 6 m o ~ t h ~ of the h c d year ending 31 December 2012

7 Notes to the interim financial statements

for the f h t 6 month of the fiscal year ending 31 December 2012

8, Appendix

REAL W A T E 11 JOINT SrOCK COMPANY

The Dimtam of Real Estate 1 1 Joint St& Company (''the cmpy") present this rsport together with the d d h c i a l for t M 6 months of the &id year ending 3 1 December 20 12

B a s i n f s s B

Real Estate 11 Joint Stock Company (previously called House Trading Joint Stock Company of W c t 11) was estab1W on the h i s of the q u i t i d o n of the S-ed company (Housa Treding Joint Stock i h p m y of District 11) in with the Decision No 57301QD-UB dated 31 bcembar

2003 of tbe Chairmati of the People's =ee of Ho Chi Minh City The compamy Has been

opsrating uaderihe bush= registmion d c a t e N o 4103W27W dated 22 Octobsr2004 granted by tfK Dqadment of PlsnnIng and Invesbmunt of Ho Chi Minh City

-bed capital as in the bllsiness reghadon -:

trsrding coIlstruction makrids (not at the the o h % Designing civil oonstruction works, i n d d

works; Besigning W space of constra~ctim works; designing interior d -or construdon works,

'on w e Pteparing mstruction investment

Consulting, supmising civil and i n m -

plans; hvesting m idmstructures of a m s and industrial parks; LeveIiag gram& M s t i a g

sewices of leasing houses, plants and warehouses; Providing p p r t y ssrvicss; Acting as agmt of

goads w i r i n g ; Designing stmdmes of civil aad industrial worSrr; Leasing officw; Manufacturing oonstructing materials (not-at the hem3 office); E x c a h g pmfhhicated wncmte building componcntq Building up civil, ind& and traffic w e , Ptoviding servicss of civil d industrial sanitation;

h i d i n g parking semices; Clving and preserving trees; Trading household appliances, fwd, beverages and domatic c m (excapt for @ding eateriag s e w i ~ h Tding real estates, Pruvkhg

property b d m a j p h c c ; Providing property appmid h c e ; Providmg red e&ate floor bees;

Providing pfoperty muulting setvice; Providing property d o n service; P e r f d g properly

advertising m i c e ; Managiog d estate; Providing sewices of pschml akdion, primary

ddm, secondary cdwath, high-school education, vocational t t d q (not optrolting at the head ofice), college (not opecatiag at the head o h ) , uaiversity and postpdmte (not m t i n g at the h a d office); Providing e d d d sports and sntertainmeot; Providing othet educational -ices

mtedal efPects on the co-v 9 I -ti@ nt

of the same period of the previous year mainly b m s e of the decrease in number of installation and construction works, which have hm completed and handed over

REAL W A T E 11 JOINT COMPANY

m R T OF THE DIRECTORS (m)

Finandal mdtbn and bushew

The fmancid position as of 30 Jmzz h e business results, and the cash flowsrfor the fkst 6 months

of the fid ysar snding 31 W b e r 2012 of tbe campmy have been expssed in the interim financial statements attached to this report (from page 06 to page 321,

The B dm m b m and the Executive OfEcsrs of the cumpany during the period rvnd as of tha date of

this report include:

Mr.Hu,ynhCaoNha C h a h m ~ O & O d ~ b r 2009

The C o n M Board

Ms Tran ?'hi Kim Loan Chief of Board 28 April 2010 -

Mr Vo Kim T h o Member 28 A.&l2010

Ms Nguyen Thauh Hoang Tram Member + 28 April2010 -

Mr Ta Quang Tu Deputy General Brator 08 -bet 2009 26 March 20 12

Mr h gHw Thanh Deputy O e n d Director - 16 October 2009 -

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

Mr Nguyen Kha Giang Dsputy General D k t o r 16 October 2009 -

select t yqmpriate accounting policies and apply Lcm oonsistmw

make judgments and estimates prudently;

state clearly whether the accounting standards applied to tbs company are f o H d or not, and dI the mrlterial differences from these stan&& are d i s c l d and e x p W in the b c i d statcm~ts; and

prepare the financial staternen& of the mmpmy on the basis of the gohg-concern assumption,

except for the cases that the going- asnmptim is considerad inappropriate,

REM PSTATE li JOINT SrOCK COMPANY

REPORT OF THE DIRECTORS (&)

Tbe D i i k & y c n s t t r e W d t h e r q ~ d d a b o v e h a v e b s e n f i l l d ~ t b a

m c d d and can fairly reflw tbe financial psition of the compatly at any tinte, and that a11 the int%rim

fmucid sWmmts have baen prepared m complience with tha pvai?ing Viehamess aocolmtiog

syatm and standards

on the w s t a m

T h e D i r e c t o r r s b a v e ~ ~ ~ ~ b e d h ~ f ~ i a f ~ T h e i n t e r i m ~ c i a l

r e f d to above give a trw a d fair view of the &uwiial p i t i o n as of 30 June 2012, h e

~ r e s u l t s a n d t h e c a s h h f w t h e f i m l yearending31 DeGember2012ofRealbbte 11 Joint

Stock Company in o a m p l i with tfie prwaihg Vi-tdw accounting standards and syskm, which

have been issued to@m with the Decision No 15/2OOdlQ%3TC dated 20 March 2006 of the

Minister of Finance as well as the c k c u h of the Ministry of Finance giving & h c e on l

the accounting system

e D i

Date: 13 August2012

cbffi TY TNHH g$hd TOAH VA ~ t f v h

e : 229 h g Khoi St, Msr.1, Ho-Chi M i City

Tel: (84.8) 38 272 295 - Rx: (84.8) 38 272 300

B d i n b M o i :40GiangVoSt,DongDaDist.,HaNoi~ Bmnch in Nha 'kaPg : IS Tran Khanh Du SL, Nha Trang City BmnchinCan'Iho : 1 6 2 C I ~ T r a n N g o c Q u t S t C a n T h o ~ t y -.a4mm.m

No 0695RO12/BCTGKTTV

FOR THE FIRST 6 MONTHS OF THE FISCAL YEAR ENDING 31 DECEMBER 2012

OF REAL ESTATE 11 JOINT STOCK COMPANY

OF REAL ESTATE 11 J O W STOCK COMPANY

We have reviewed the accompanying -cia1 stakments for the first 6 months of the fiscal year ending 3 1

December 2012 of Red Estate 11 Joint Stock Company, including the interim h h c e sheet as of 30 June

2012, the interim income statement, the interim cash flows statement and the notes to the interim f m i d

statements for the first 6 months of the fkd year ending 31 W B e r 2012, which were p r e p a d on 16

July 2012 (from page 06 to page 32)

The preparation and the presentation of these interim W c i a l statements are the responsibility of the

Directors of the company Our responsibility is to express an opinion on these financial statements based on

ow rtview

We have conducted the review on the ~ccompanying interim financial statements in accordance with the

Vietnamese Auditing Standards on financial statement reviews These standards require that we plan and

perform the review procedures to obtain a reasonable assmnce that the interim finandai statements are h

from material mistakes The review is developed on the bases of our discussions with responsible staff of the

company and of applying our analytical procedm on the financial information obtained Consequently,

this review provides less assurance than a final audit We have not performed an audit, so we do not express

any audit opinion

In the previous year, the company recorded the remaining m o u n t of the revenue from transferring An Phu

Project in District 2, Ho Chi M i City and accrued the fee for general infrastructures contributed to the

project investor to carry out the i&astruchlre for the main roads for the land area of 87 ha, of which the total

value is VND 46.619.563.277 In which, the compensation for land clearance is totally VND

42.1 15,39 1.503, which is determined on the basis of the land area aod the temporarily calculated unit price

of VND 16.214.2861 m2 (see Note V 14) ,This unit price will be adjusted afkr the findimtion with the

major investor As of the date of this report, the finalization with the major investbr has not been carried out - *:

Based on our review, except for the effects of the said issue, nothing has come to our attention that causes us

to believe that the accompanying interim financial statements have not been truly and fairly presented, in d l

material respects, in conformity with the prevailing Vietnamese accounting system and stand'ds as well as

other related regulations

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

version will be the original for reference when needed

lting Co., Ltd (A&C)

Ngnye~ Thi Phum Tien - Auditor

A d i t Certiicate No 11 9 9 m

Ho Chi Minh City, 13 August 2012

- A " K ? ~ E

REAL ESTATE 11 JOINT SrOCK COMPANY

INTERIM FiNANCLAL STATEMENTS

133

REAL ESTATE 11 #)INT SrOCK COMPANY

Ad- 205 Lac Lmg Qwn, Ward 3, Wct 1 I, Ho Chi Minh City

INTERIM FXNANCfAL STATEMENTS

ForthefIrst6momtbsofth~yesrratding31 Dscember2012

Interim balance d m t (Con.) * -

ASSETS Cade Note End& balance m i n g babne

B - LONGTERM ASSETS

Long-term accornb rccdvabk

Long-term aunw mdvabk from -

REAL M A T E 11 JOINT STOCK OOMPAMY

A m 205lLacLmgQuen, Wd3, Disffiet 11, HoCbiMinbCity

INTERIM FINANCIAL STATEMENTS

F o r t l ~ f i r s t 6 ~ o f t h e ~ y a r ~ 3 1 Decembw2012

Code Note Ending balance

12, B u h s s ammgmmt supporting fund

TOTAL LlABlLITIFS AND OWNER'S EQUITY 140 167d48181.661

Tkts stafemmt should be red in c o ~ d o n with ikb notes to !h In&&

REAL E-ATE 11 JOINT STOCK COMPANY

Address: 205 Lac Long Qum, Ward 3, Dhct 1 1, Ho Chi Mixlh City

JNTERIM FINANCIAL STATEMENTS

For the h6 months of the ikcal year ending 3 December 20 12

Interim balance sheet (ConL)

OFF- BALANCE SHEET ITEMS

ITEMS

1 Leasebold assets

2 Materials and goods kept or processed for athers

3 Goods deposited by od~ers

4 Bad debts already treated

5 Foreign currencies

4 Estimates for non-business and project expenditure

Nguyen Thi Pbuong Tam

Prepnrer

Note Ending balance Beginning balance

Chief Accountant General Director

?%is statement should be read in conjunction with the notes to the interimfinancial statements

REAL =ATE 11 JOINT SrOCK m P A N Y

Add-: 205 lac Long Quan, Ward 3, M a 1 I, Ho Chi Minh City

NrERlM FINANCIAL STATEMENTS

Forthe first6mmh ofthe l i s c a l y e s l r ~ 3 1 hccm&2012

Pd form) For the f h t 6 morrh of the fiecal year en- 31 December 2012

Aecumhted &om the - tbe y a r

Total acwnnthg profit before tax

Cttrrent corporate hcome lax

Deferred corporate income tnx

REAL W A T E 11 JOfNT SrOCK COMPANY

Address:205 LwcLongQuau, Wd3, M 11, HoChi MinhCity

MTERIM FINANCIAL STATEMENTS

Pwthofirst6~ofthefiscalyearendiag31 h c c m k 2 0 1 2

rn form)

w=t h o d ) For the h t 6 m o n h of the W year endm 31 December 2412

6 Withdrawals of investments in ather d e s

7 Receipts of lorn in-, divideds and profit shared

m u h W fmm the bgbmbg of tee p r

REAL m A l € I 1 JOINT SrOCK COMPANY

A d Q w # l : 2 0 5 h m Q ~ u , W a r d 3 , ~ 1 1 , H o C h i M i n b C i t y

INTERIM FINANCIAL STATEMENTS

F o f t b e 6 m t 6 m o a m S o f t b u ~ p r s a d i n g 3 1 W b e r 2 0 1 2

Net cash h s d w h g the periwl

Beghnlng cash a ~ d carh equfvalenl

Effects of ftuetuatiow in foreign exchange rates

Ending cash and cash eqnivalmb

2.170.000.000 (I ooo ~ o o O )

Nguyer TBi Pbaong Tam Ruynh Thi Yen Nhi Tran Thanh Ilrcb

REAL EStATE 11 #IXNT STOCK -PAW

Addwss: 205 LacLwgQuan, Ward3, DMrict 11,IIoChiMiuhCi

F o r f h e ~ t 6 l r m o n t h s o f t h e ~ y m r g a d f n g 3 1 December2012

NOTES TO INTERIM FINANCIAL STATEMENTS

For the first 6 monthr of the fbd year eadbg 31 m b e r 2M2

I OPERATION FEATURES

1 hvestmentform : A joint stodr company

: Cons&u&g, =icing and t d h g real estate

: Building houses; manufacturing mmtmcting dais (wt

at the head o m ) ; designing chi1 mmhuction works., leasing h- woddmpq w m h a e q providing pasking service; trading ml dale,

EWw-

As at 30 June 2012, the company has had 37 employees (at lh a d of the previous year: 46 employ=)

En& of the cornpamy's opmtbnm durhg the period om the financial statemats

The company's revenue in tbe ammt prid has been decreased significantly in cornparhi with

that of the sam period of the previous year mainly because of the decrerlse in number of

h t a l k i o n and mmirdon work$ which have been completed and handd owr

2 Standard currency unit

The standard cumnq unit ussd is ~ h m m Dong (VND)

1 Accomtingsystem

The m m p y has been appIying the V i d m w s e accounting tyskm, which has heen issued to* with the Decision No, 1 5 / 2 W ~ C dated 20 March 2006 of the Minister of

F Was well as the circulars of the Ministry of Finaace giving guidance on the impIementation

of the amounting system and standads

2 Statement on the complhce with the racaunthg stamdards and syatem

The Directors d to follow all tfie r q h m a t s of the prevailing Vistnamese accounting system and standards which w m i dtogether with the Decision No, 15/2UOWQWBTC dated

20 March 2006 of the M&cr of Finance ttnd the Circulars guiding the implementation of t accounting system aod standards of he Ministry of Finance in the pqmfion of these interim

flnaWial stakmats

3 Aceomnthgfbm

voucher rocording

REAL ESTATE 11 JOINT SrOCK COMPANY

A* No 205 Lac Long Qnan, Ward 3, DWkt 1 1, Ho Chi Minh City

and the comdi'brlity into cash k easy, and which do nut have a lot of r h h in he convmian into

cash

3 h t o *

Znwntorieg rn recorded at their o&id costs Costs mchde purchasing mpma, #

q m s c s , and other direcdg r e ~ ~ ~iamtaries t h b dm e curretlt positions and

conditions

hventories are recat.ded in line with the perpatual method Costp of itwen- are calculated in

line with ths two fbllowing rn-

- As for materW pwchawd then dispatched for comtmdon work: specific idantifmiion

method;

- h for othea i n v u e ~ : first-in first-out metbod

M i o n for devaluation of inventoh is made wben their costs are higher tfLan their net

realizable values Net r a b b l e v a l w are the estimat@ selling price? of m e s less the

h t s d expenses on product completion and other necessary mpnm on pduct consumption

4 Trade d w b l e and other -It

Trade receivable d 0 t h receivable are recognbd at the vdum on mpporthg documents and

invoices

Provision is mado fbr each bad debt bssing an the ouLsElndiog debt age or estimated loss D e d s

are as f o l l ~ :

As for outstanding debts:

- Revisions are made at the rate of of the value of debts outdam@ h m over 6

months to under 1 year

- Provisions b e made at the rate of 50% of the value of debts d s t a d h g from 1 year to

A s f& doubtfhl debts: provisions are made basing on the estimated lw

l k e e j 2 m m -part qfand g h l d be d frp -ow with k WrSm$mncIal state- 14

REAL ESrATE 11 J O I M SrOCK -PAW

A d d m ! ~ No.205 Lac Long Quan, Ward3,DMct 11,HoChiMinhCity

INTERIM FINANCIAL STATEMEMS

F o r t h e & s t 6 m o n t h s o f t h e f i s d y e a r ~ 3 1 lhmbtr2012

Now to the hterlm llnarclal stakmds (e)

5 Tangible f b d awds

P a a!z&s are m a d by their histmid costs less a m m m b d depreciation Wsbrical

costs of k e d assets include all the m p s e s of ttte company to have these fixad ass& as of the

dam h y are ready to be put into use 0 t h e x p a w incurred subsapat to the initial

w o n are included in bistmicd costs of fixsd as- onIy if tttey cmddy bring more

economic benefits in the futum ha& to tbe use of these ass& Those which do not meet the

aboM conditions will be m c d c d into expmx~

W s n a ~ a s s e t k ~ l d o r ~ , i t s ~ c a l ~ a t s d ~ ~ ~ i a t i o n ~

~ & , t t r e p a o y ~ ( l ~ ) a r i s w m p o s t e d i n t o t h s i n ~ w t h e ~ s d u r i n g t h s

year*

Fixed arc depreciated in accoPdance with tbe line method over their d m a k d

useful livm The depreciation years appM are as follows:

Ope -

l%econpqvm*kwor

Tbe incorns from operating lease is m d e d in line with the straight line m d a d dwhg the

k i n g paid The initial d k t to earn inaxno from opmthg lease are rccordad into

expen~s at once or are gradually a t h a t d into e x p s c s during the leasing period m amhmity

with the racording of h a m e from operasing lase

Borrowing oosts are m c W into expenses as actually genemtd ln case the borrowing costs am

dire* dated to the comtrwioa or the production of an as& in progress, wbi~h has t a k a a

substantial period of t h (over 12 month)-to get rsady for bknded use m sales of the a s t , '

these costs will b capitalized,

In the event of general b o w which are pattly used for acq- ooastMcting or pducihg

an asset in progrew the cost^ eligiile for capitalization wili be determined according to the

capitalization applied to acuunuIatsd expwditure on that The apiEali&ion

rates axe computed at the w e q e inter& rstes on tfie borrowin@ not yet paid during the period,

except for p t i d a r bommhga sewing the purpose of o M h g a spaciiic stsset

AMled cxpmw sn, recorded based on reamable stimatcs an tho amounts payable for goods

and &CCS a h d y used

REAL ESTATE 11 JOINT SrOCK COMPANY

Address: No 205 Lac Long Quan, Ward 3, District 1 1, Ho Chi Minh City

INTERtM FINANCIAL STATEMENTS

For the fmt 6 months of the fiscal year d h g 3 I December 20 12

Notes to the interim financial statements (cont.)

Appropriation for unemployment fund

Unemployment fund is used to pay for severance aud unemployment allowances to the employees who have worked for the company for 12 months or more until 31 December 2008

The rate of extraction for this fund is of the monthly salary, which is used as the basis for social insurance payment, and is included into the company's expenses

Pursuant to the Law on Social Insurance, from 01 January 2009, the employers have to pay to

unemployment insurance fund managed by ~ i & Social hwance Agency at the rate of 1% of the lower amount between the basic monthly saIary of the employee and the mount equal to 20

times of the general minimum monthly salary as regdated by the Government in each particular period With the application of the unemployment insurance system, the employers do not have to

make any provision for unempIoyment allow~uces for the employees' working periods from 01 January 2009 However, the unemployment insurance amount paid to the employees who have

enough conditions to receive wd have worked for the company before 01 January 2009 is the average salary in 6 comutive months befwe the resigning date

10 Capital and funds

The company's source of capital is only the capital being recorded according to the amount of legal capital already invested

11 Dividends

Dividends are recorded as an amount payabIe when they are disclosed

12 Appropriation for fands

Funds are ahacted and u d in line with the company's Charters as foIlows:

Rate of

approphtion from

Busmess promotion fund To expand operations and to make

intensive investments of the company 05%

~jnandal reserved fund To compensate damages and losses

generated during tfre operation course or

force majeures and Unpredictable situations such as cdamities, h s , etc

Bonus and welfare fund To reward and to encourage material

benefits, to improve and to develop the material and spiritual lives for employees

13 Corporate income tax

Corporate income tax includes current income tax and deferred income tax,

Current income tar

Current income tax is the tax amount computed based on the taxable income Taxable income is different from accounting profit due to the adjustments of temporary differences between tax and'

accounting figures, non-deductible expenses as we11 as those of non-taxable income and losses

brought forward

These notes form an fntegral part of and should be read in confuncfton with the hierim financial statements 16