FINANCIAL STATEMENTS 2010(FOR THE FIRST 6 MONTHS)

FINANCIAL STATEMENTS FOR THE FIRST 6 MONTHS OF THE FISCAL YEAR ENDING 31 DECEMBER 2010 JOINT STOCK COMPANY... REAL ESTATE 11 JOINT STOCK COMPANY The Dimtors of Real Estate 11 Joint Sto

FINANCIAL STATEMENTS

FOR THE FIRST 6 MONTHS OF

THE FISCAL YEAR ENDING 31 DECEMBER 2010

JOINT STOCK COMPANY

REAL ESTATE 11 JOINT S

for the first 6 months of the fmcal year ending 31 December 2010

6 Cash flow statement

for the first 6 months of the fiscal year ending 31 December 2010 11 - 12

7 Nates to the financial statements

for the fmt 6 months of the fiscal year ending 31 December 2010 13 - 26

: 8 Appendi

REAL ESTATE 11 JOINT STOCK COMPANY

The Dimtors of Real Estate 11 Joint Stock Company ("the company") present this report together with

the reviewed financial statements for the first half of the fiscal year ending 31 December 2010

Business hkhlights

Real Estate 11 Joint Stock Company (previously called House Trading Joint Stock Company of District

11) was established on the basis of the equitization of the State-owned company (House Tradiing Joint

Stock Company of District 11) in accordance with the Decision No 57301QD-UB dated 31 December

2003 of the Chainnan of the People's Committee of Ho Chi Minh City The

operating under the business registration certificate No 4103002793 dated 22 October 2004

the Department of Planning and Investment of Ho Chi Minh City

During its operation course, the company has been additionally granted the following amended business

registration certificate by the Department of Planning and Investment of Ho Chi Minh City:

.- The Fist amended business registEation certificate on.02Eebmery 2005, the second one on 25 J-me

-

2005 and the third one on 20 June 2007 regarding the modification of the business functions

,

- The fourth amended business registration certiftcae on 31 January 2008 on the change in the

address of the head offioe

Prescribed capital as in the business registration certificate:

Main operations of the company: Trading houses; Building up industrial works, public worm and

houses; Performing interior decoration services; Manufacturing and trading construction materials (not

at the head office); Designing civil construction works, industrial works, designing total space of

construction works; designing interior and exterior construction works, Consulting, supervising civil

and industrial construction works; Preparing construction investment plans; Investing in infhstructures

of residential areas and industrial parks; Leveling ground; Providing services of leasing houses, plants

and warehouses; Providing property services; Acting as agent of goods depositing; Designing structures

of civil and industrial works; Leasiing offices; Manufacturing constructing materials (not at the head '

office); Executing prefabricated concrete building components; Building up civil, industrial and traffic

works, Providing services of civil and industrial sanitation; Providing parking services; Caring and

preserving trees; Tradiing household appliances, food, beverages and domestic cigarettes (except for

providing catering services); Trading real estates; Providing property brokrrage service; Providing

property appraisal service; Providing real estate floor services; Providing property consulting service;

Providing property auction service; Performing property advertising service; Managing real estate;

Providing services of pre-school education, primary education, secondary education, high-school

education, vocational training (not operating at the head office), college (not operating at the head

ofice), university and postgraduate (not operating at the head office); Providing educational snorts and

entertainment Providing other educational services

REPoRT OF THE DlRECTORS (cont.)

Sales and profit of the period have dramatically increased thanks to the recording of the income h m

the transfer of the project in District 2 - An Phu - Ho Chi Minh City at the rate of 13.86% of the

contract value

Fmancial w i t i o n and business resdtg

The financial position as of 30 Jme 2010, the business results, and the cash flows for the f half of

the fiscal year then ending of the company have been expressed in the interim financial siatements

attached to this report (from page 06 to page 26)

h

: - During the period, the company has distributed the profit to its shareholders as follows: ~ ~

~

4.652.940.000 VND

Snbseanent even&

The D i i t o r s of the company hereby confirm that there have been no events from 30 June 2010to the I

date of this report, which need any adjustments on the figures or the disclosures in the interim fmancial

statements

The Board of Mana~ement and the Executive Omcen

The Board members and the Executive Officers of the company during the period and as of the date of

this report include:

The Board of Management

Mr Tran Ngoc Phuong Member

Ms Tran Thi Kim Hue Member

23 September 2004 -

23 September 2004 -

08 October 2009 -

ING

Ms Tran Thi Kim Loan Chief of the Board 28 April 2010 - nntiv

Ms Huynh Thi Yen Nhi Member 30 September 2004 28 April 2010

The Directors

Full names Position Appointing date Resigning date '

Mr Tran Thanh Bach General Director 10 November 2004 -

Mr Ta Quang Tu Deputy General D i t o r 10 November 2004 -

Mr Dang Huu Thanh Deputy General D i o r 10 November 2004 -

Ms Tran Thi Kim Hue Deputy General Director 16 October 2009 -

Mr Nguyen Khac Giang Deputy General Director 16 October 2009 -

REAL ESTATE 11 JOINT STOCK COMPANY

REPORT OF THE DIRECTORS (cont)

Anditon

Auditing and Consulting Company Limited (A&C) has performed the review on the company's

3 financial statements for the first half of the fiscal year ending 3 1 December 2010

rs Confirmation af the Directors

The D i t o r s of the company are responsible for the preparation of the interim financial statements to give a true and fair view of the financial position, the business results, and the cash flows of the company for each of the company's fiscal year In order to prepare these f m c i a l statements, the

Directors must:

select the appropriate accounting policies and apply them consistently;

make judgment and estimates prudently;

I announce the accounting standards to be followed for the material issues to be disclosed and

explained in the financial statements, and;

prepare the financial statements of the company on the basis of the going-concern assumption, except for the cases that the going-concern assumption is considered inappropriate

The Directors hereby ensure that all the requirements mentioned above have been followed when the interim financial statements are prepared, that all the accounting books of the company have been fully recorded and can fairly reflect the fmancial position of the company at any time, and that all the

f m c i a l statements have been prepared in compliance with the prevailing Vietnamese accounting system and standards

The Directors are also responsible to protect the assets of the company, and consequently have taken

appropriate measures to prevent and to detect frauds and other irregularities

We, the Directors of the company, hereby confirm that the accompanying interim f m c i a l statements and the notes to the fmancial statements have been properly prepared and have given a true and fair

view of the financial position as of 30 June 2010, the business results and the cash flows for the first half of the fiscal year then endimg of the company in compliance with the Vietnamese accounting system and standards aswell as other related regulations

General Director

Date: 13 August 2010

Headquarters : 229 Dong Khoi St., Dist.1, Ho Chi Minh City

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

A&C Branch in Ha Noi : 40 Giang Vo St, Dong Da Dist., Ha Noi City

C ~ N G T Y ~ ~ M T O * N V A R I V X N 4: BmnchinNha Trang: 18 Tran Khanh D u St., Nha Trang City

Branch in Can Tho : 162U4 Tran Ngoc Que St., Can Tho City AUDITING AND CONSULTING CO., LTD ~ a - c e ~ r n v o

No 0816/2010/BCTC-KTTV

REPORT

FOR THE FIRST HALF OF THE FISCAL YEAR ENDING 31 DECEMBEFt 2010

OF REAL ESTATE 11 JOINT STOCK COMPANY

We have reviewed the accompanying interim fmancial statements for the f b half of the fiscal year

ending 3 1 December 2010 of Real Estate 1 1 Joint Stock Company, including the interim balance sheet

as of 30 June 2010, the interim income statement, the interim cash flows statement and the notes to the interim financial statements for the first half of the fiscal year ending 31 December 2010, which were prepared on 17 July 20 10 (from page 06 to page 26)

The preparation and the presentation of these interim fmancial statements are the responsibility of the Directors of the company Our responsibility is to express an opinion on these fmancial statements

- ~ based on our review ., ,, - :-:; - - ?

We have conductedthe review on the accompanying &&im financial statements in accordance with

the Vietnamese Auditing Standards on financial statement reviews These standards require that we plan and perform the &view procedures to obtain a reasonable assurance that the interim financial

statements are free from material mistakes The review is developed on the bases of ow discussions with responsible staff of the company and of applying our analytical procedures 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

Based on our review, nothing has come to o w attention that causes us to believe that the accompanying

interim fmancial statements have not been truly and fairly presented, in all material respects, in

conformity with the prevailing Vietnamese acco&tjn~ gst&r-and standards as well as other related regulations m=- ?pS.# :??+?; < ' ~ -

' -> ,?::+.' - This report is made in two languages (Vietnamese and English), both of equal validity The Vietnamese version will be the original for reference when needed

_ _- eputy General Director Tran Hoang Anh -Auditor

~ u d i r Cerhj?cate No D.O099/KTV Audit CertiJicate No 1161/KTY

Ho Chi M i City, 13 August 2010

+ B y;m;

I REAL ESTATE 11 JOINT STOCK COMPANY

Address: 205 Lac Long Qwn, Ward 3, D i c t 11, Ho Chi M i City

MTERlM FINANCIAL STATEMENTS

For the first 6 months of the fiscal year endimg 3 December 2010

INTERIM BALANCE SHEET

2 Provisions for devaluation of inventories 149

I Short-term prepaid expenses 151

3 Taxes and other accounts receivable fiom the State 154

This statement should be read in co$unction with the notes to the interim$~ncial srarenlem

REAL ESTATE 11 JOINT STOCK COMPANY

Address: 205 Lac Long Quan, Ward 3, District 11, Ho Chi M i Cit,

INTERIM FINANCIAL STATEMENTS

For the h t 6 months of the fiscal year e n d i i 31 December 2010

Interim balance sheet (cont.)

B - LONG-TERM ASSETS

I Long-term accounts receivable

1 Long-term accounts receivable from customers

2 Wo&ing capital at affiliates

3 Long-term inter-company receivable

4 Other long-tenn receivable

5 Provisions for bad debts

2 Investments in business concerns and joint ventures

3 Other long-term investments

4 Provisions for devaluation of long-term investments

V Other long-term assets

1 Long-term prepaid expenses

2 ' Deferred income tax assets

3 Other long-term assets

TOTAL ASSETS

This statement should be read in conjuncffon with the notes to the imerimj?nancialsta,

REAL ESTATE 11 JOINT STOCK COMPANY

Address: 205 Lac Long Quan, Ward 3, District 11, Ho Chi Minh City

NTERIM FINANCIAL STATEMENTS

For the first 6 months of the f ~ c d year ending 3 December 2010

Interim balance sheet (cont.)

LIABILITIES AND OWNER'S EQUITY Code Note Ending balance

10 Provisions for short-term accounts payable

1 1 Bonus and weltkc fund

12 Trading Government bonds

IL Long-term liabilities

9 Otherfunds

11 Construction invesbnent fund

12 Business arrangement supporting fund

IL Other sources and funds

Beginning balance

TOTAL LIABILITIES AND OWNER'S EQUITY 440 120.552.915.316

This statement should be readin conjunction with the notes to the interimpnmcial statemenis

REAL ESTATE 11 JOINT STOCK COMPANY

Address: 205 Lac Long Quan, Ward 3, District 11, Ho Chi Minh City

MTERIM FINANCIAL STATEMENTS

For the first 6 months of the fiscal year ending 3 1 December 2010

Interim balance sheet (conk.)

1 Leasehold assets

2 Materials and goods kept or processed for others

3 Goods deposited by others

4 Bad debts already treated

5 Foreign cumncy

6 Estimates for non-business and project expenditure

Ngnyen Thi Phuong Tam Hnynb Thi Yen Nhi Tran Thanh Each

This statement should be readin conjunction with the notes to the interim furoncia1 stafemenfs 9

REAL ESTATE 11 JOINT STOCK COMPANY

Address: 205 Lac Long Quan, Ward 3, D tc 11, Ho Chi Minh City

INTERIM FMANCIAL STATEMENTS

For the first 6 months ofthe fiscal year ending 3 1 December 2010

INTERIM INCOME STATEMENT

(Pall form)

F o r the first half of the fiscal year ending 31 December 2010

lTEMS

1 Sales

Accumulated from the beginning of tbe year

Code Note Current year Previous year

16 Deferred corporate income tax

17 .Profit after tax

18 Earning per share

This statement should k read in conjunction with the notes to the inrerimfinamial statements 10

205 Lac Long Quan, Ward 3, District 11, Ho Chi Minh City

- Gain/ (loss) from foreign exchange diirmces

- Gain/ (loss) from investing activities

- Loan interest expenses

3 OperatGtg profff befon

c h ~ g e ~ of w0ddIlg Cnpital

- Increase/ (decrease) of accounts receivable

- Inc& (decrease) of inventories

- Increase! (decrease) of accounts payable

- Increase/ (decrease) of prepaid expenses

- Loan interests already paid

- Corporate income tax already paid

- Other gains

- Other disbursements

Net cash flows from operating adivilies

Accumulated from the beginning of the year Code Note Current year Previous year

11 Cash flows from investing activities

1 Purchases and constnrction of fixed assets

2 Gains from d i a l s and liquidation of fixed assets

3 Loans given and purchases of debt instruments

4 Recovery of loans given and disposals of debt

6 Withdrawals of investments in other entities 26 -

7 Receipts of loan interests, dividends and profit shared 27 V.4,VI.3 448.272.706

Net cash flows from investing ac1vItles

7his smement should be read in coyunction with the m&s to the interimfinancial statemna 11

REAL ESTATE 11 JOINT STOCK COMPANY

Address: 205 Lac Long Quan, Ward 3, District 11, Ho Chi Minh City

INTERIM FINANCIAL STATEMENTS

For the fmt half of the fiscal year ending 3 1 December 2010

Interim eash flow statement (cont)

Code %& Current year Previous year

111 Cash flows from financing activities

1 Gains h m stock issuance and capital contributions

2 Repayment for capital wntriiutions and re-purchases

3 Short-term and long-term loans received 33 V.12 21.824.235.549 15.623.121.195

4 Loan principal amounts repaid 34 V.20 (17.677.798.000)

6 Dividends and pmfit already paid to the owners 36 V.22 (4.821.05 1.500)

Net cash flows during the year

Beginning cash and cash equivalents 60 V.1 13.570.261.615 178.900.790

Ending eash and cash equivalents

/

Nguyen Thi Phuong Tam Hnynh Tbi Yen Nhi Tran Thanh Bach

This statement should be read in conjunction with the note to the interim fwncial staternenfs

REAL ESTATE 11 JOINT SrOCK COMPANY

Address: 205 Lac Long Quan, Ward 3, District 1 1, Ho Chi M i C i

INTERIM FINANCIAL STATEMENTS

For the first half of the fiscal year ending 3 1 December 2010

For the first half of the fiscal year ending 31 December 2010

1 Investment form : a joint stock company

2 Operating field : constructing, servicing and trading real estate

3 Main operations : building houses; manufacturing constructing materials (not

at the head office); designing civil construction works; leasing houses, workshops, warehouses; providing parking service; trading seal estate

4 Effects of the company's operations on the financial statements

from the transfer of the project in District 2 -An Phu - Ho Chi M i City at the rate o 36%

of the contract value

1 Fiscal year

The fiscal year of the company is from 01 January to 31 December annually

2 Standard currency unit

The standard currency unit used is Vietnam Dong (VND)

LU ACCOUNTBIG S T ~AND SYSTEM ~ S

1 Aeeounting system

The company has been applying the Vietnamese accounting system

2 Statement on the compliance with the Vietnamese accounting standards and system

The D i t o r s ensure to follow all the requirements of the prevailing Vietnamese accounting system and standards in the preparation of these f m c i a l statements

3 Accounting form

Voucher recording

IV ACCOUNTING POLICIES

1 Accounting convention

All the financial statements are prepared in accordance with the historical cost convention

These notes form an infegralprt of andshould be read in conjunction with the interim f i n c i a l slalements 13