STATEMENT OF THE EXECUTIVE BOARD
The Executive Board of PetroVietnam Fertilizer and Chemicals Corporation - JSC (the “Corporation”) presents this report together with the Corporation’s consolidated financial statements for the year ended 31 December 2020.
THE BOARD OF DIRECTORS AND EXECUTIVE BOARD
The members of the Board of Directors and the Executive Board of the Corporation who held office during the year and to the date of this report are as follows:
Mr. Nguyen Tien Vinh
Chairman
Mr. Le Cu Tan
Member
Mr. Louis T.Nguyen
Member
Mr. Duong Tri Hoi
Member
Mr. Ta Quang Huy
Member (appointed on 30 September, 2020)
Mr. Trinh Van Khiem
Member (appointed on 16 June, 2020)
Mr. Nguyen Hong Vinh
Member (resigned on 01 May, 2020)
Mr. Le Minh Hong
Member (resigned on 22 July, 2020)
Mr. Le Cu Tan
Chief Executive Officer
Ms. Tran Thi Phuong Thao
Executive Officer
Mr. Le Van Quoc Viet
Executive Officer
Ms. Le Thi Thu Huong
Executive Officer
Mr. Cao Trung Kien
Executive Officer
Mr. Dao Van Ngoc
Executive Officer (appointed on 21 April, 2020)
Mr. Tu Cuong
Executive Officer (appointed on 21 April, 2020)
THE EXECUTIVE BOARD’S STATEMENT OF RESPONSIBILITY
The Executive Board of the Corporation is responsible for preparing the consolidated financial statements, which give a true and fair view of the consolidated financial position of the Corporation as at 31 December 2020, and its consolidated financial performance and its consolidated cash flows for the year then ended in accordance with Vietnamese Accounting Standards, accounting regime for enterprises and legal regulations relating to consolidated financial reporting. In preparing these consolidated financial statements, the Executive Board is required to:
- Select suitable accounting policies and then apply them consistently;
- Make judgments and estimates that are reasonable and prudent;
- State whether applicable accounting principles have been followed, subject to any material departures disclosed and explained in the consolidated financial statements;
- Prepare the consolidated financial statements on the going concern basis unless it is inappropriate to presume that the Corporation will continue in business; and
- Design and implement an effective internal control system for the purpose of properly preparing the consolidated financial statements so as to minimize errors and frauds.
The Executive Board of the Corporation is responsible for ensuring that proper accounting records are kept, which disclose, with reasonable accuracy at any time, the consolidated financial position of the Corporation and that the consolidated financial statements comply with Vietnamese Accounting Standards, accounting regime for enterprises and legal regulations relating to consolidated financial reporting. The Executive Board is also responsible for safeguarding the assets of the Corporation and hence for taking reasonable steps for the prevention and detection of frauds and other irregularities.
The Executive Board confirms that the Corporation has complied with the above requirements in preparing these consolidated financial statements.
APPROVAL FOR CONSOLIDATED FINANCIAL STATEMENTS
The accompanying consolidated financial statements have been approved by the Board of Directors on 18 March 2021.
For and on behalf of the Executive Board,
Le Cu Tan
Chief Executive Officer/Member of Board of Directors
25 March 2021
Ho Chi Minh City, S.R. Vietnam
INDEPENDENT AUDITORS’ REPORT
To:
The Shareholders
The Board of Directors and the Executive Board
PetroVietnam Fertilizer and Chemicals Corporation - JSC
We have audited the accompanying consolidated financial statements of PetroVietnam Fertilizer and Chemicals Corporation - JSC (the “Corporation”) prepared on 25 March 2021, as set out from page 127 to page 167, which comprise the consolidated balance sheet as at 31 December 2020, the consolidated statement of income, the consolidated statement of cash flows for the year then ended, and a summary of significant accounting policies and other explanatory information.
Our responsibility is to express an opinion on these consolidated 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 consolidated financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the consolidated financial statements. The procedures selected depend on the auditors’ judgment, including the assessment of the risks of material misstatement of the consolidated financial statements, whether due to fraud or error. In making those risk assessments, the auditors consider internal control relevant to the Corporation’s preparation and fair presentation of the consolidated financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Corporation’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 consolidated financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.
As stated in Note 38 to Notes of the consolidated financial statements, as at 31 December 2020, the Corporation had a contingent liability related to land use fees and other costs of the street with an area of 0.6 ha invested and built by the Corporation in Ca Mau province.
Our audit opinion is not modified in respect of this matter.
Tran Xuan Anh
Audit Partner
Audit Practising Registration Certificate No. 0723-2018-001-1
DELOITTE VIETNAM COMPANY LIMITED
25 March 2021
Hanoi, S.R. Vietnam
Luong Tuan Dat
Auditor
Audit Practising Registration Certificate No. 4370-2018-001-1
CONSOLIDATED BALANCE SHEET
Unit: VND
| No. | ASSETS | Codes | Notes | Closing balance | Opening balance |
|---|---|---|---|---|---|
| A. | CURRENT ASSETS | 100 | 6,314,163,032,937 | 5,943,854,074,804 | |
| I. | Cash and cash equivalents | 110 | 4 | 2,029,198,585,342 | 2,976,952,450,033 |
| 1. | Cash | 111 | 265,139,502,295 | 349,278,804,046 | |
| 2. | Cash equivalents | 112 | 1,764,059,083,047 | 2,627,673,645,987 | |
| II. | Short-term financial investments | 120 | 2,185,000,000,000 | 1,035,000,000,000 | |
| 1. | Held-to-maturity investments | 123 | 5 | 2,185,000,000,000 | 1,035,000,000,000 |
| III. | Short-term receivables | 130 | 340,731,443,856 | 289,371,734,319 | |
| 1. | Short-term trade receivables | 131 | 6 | 223,032,121,230 | 239,163,840,466 |
| 2. | Short-term advances to suppliers | 132 | 7 | 58,161,771,022 | 37,348,595,546 |
| 3. | Other short-term receivables | 136 | 8 | 292,846,621,763 | 250,709,558,469 |
| 4. | Provision for short-term doubtful debts | 137 | 9 | (233,576,422,659) | (238,285,341,239) |
| 5. | Deficits in assets awaiting solution | 139 | 267,352,500 | 435,081,077 | |
| IV. | Inventories | 140 | 10 | 1,468,360,373,620 | 1,350,638,678,171 |
| 1. | Inventories | 141 | 1,494,665,449,780 | 1,370,295,612,901 | |
| 2. | Provision for devaluation of inventories | 149 | (26,305,076,160) | (19,656,934,730) | |
| V, | Other short-term assets | 150 | 290,872,630,119 | 291,891,212,281 | |
| 1. | Short-term prepayments | 151 | 11 | 27,025,250,532 | 29,727,375,587 |
| 2. | Value added tax deductibles | 152 | 256,938,273,841 | 257,326,042,539 | |
| 3. | Taxes and other receivables from the State budget | 153 | 15 | 6,909,105,746 | 4,837,794,155 |
| B. | NON-CURRENT ASSETS | 200 | 4,985,778,272,458 | 5,496,454,188,790 | |
| I. | Long-term receivables | 210 | 698,374,000 | 658,396,000 | |
| 1. | Other long-term receivables | 216 | 8 | 698,374,000 | 658,396,000 |
| II. | Fixed assets | 220 | 4,282,892,453,351 | 4,790,657,948,234 | |
| 1. | Tangible fixed assets | 221 | 12 | 3,438,870,887,385 | 3,932,312,724,389 |
| - Cost | 222 | 11,646,460,047,004 | 11,629,420,833,126 | ||
| - Accumulated depreciation | 223 | (8,207,589,159,619) | (7,697,108,108,737) | ||
| 2. | Intangible assets | 227 | 13 | 844,021,565,966 | 858,345,223,845 |
| - Cost | 228 | 1,153,056,314,593 | 1,152,277,537,593 | ||
| - Accumulated depreciation | 229 | (309,034,748,627) | (293,932,313,748) | ||
| III. | Investment property | 230 | 14 | 219,743,745,413 | 239,820,697,731 |
| - Cost | 231 | 317,953,542,202 | 334,556,867,544 | ||
| - Accumulated depreciation | 232 | (98,209,796,789) | (94,736,169,813) | ||
| IV | Long-term assets in progress | 240 | 153,441,224,477 | 145,846,801,849 | |
| 1 | Long-term construction in progress | 242 | 16 | 153,441,224,477 | 145,846,801,849 |
| V | Long-term financial investments | 250 | 44,245,603,945 | 45,369,527,464 | |
| 1 | Investments in joint-ventures, associates | 252 | 17 | 27,991,375,327 | 26,973,857,965 |
| 2 | Equity investments in other entities | 253 | 5 | 20,502,000,000 | 20,502,000,000 |
| 3 | Provision for impairment of long-term financial investments | 254 | 5 | (4,247,771,382) | (2,106,330,501) |
| VI | Other long-term assets | 260 | 284,756,871,272 | 274,100,817,512 | |
| 1 | Long-term prepayments | 261 | 11 | 30,448,054,378 | 30,935,743,889 |
| 2 | Deferred tax assets | 262 | 18 | 101,730,355,972 | 81,381,867,070 |
| 3 | Long-term reserved spare parts | 263 | 10 | 139,786,369,885 | 148,991,115,516 |
| 4 | Other long-term assets | 268 | 12,792,091,037 | 12,792,091,037 | |
| TOTAL ASSETS (270=100+200) | 270 | 11,299,941,305,395 | 11,440,308,263,594 |
Unit: VND
| No. | RESOURCES | Codes | Notes | Closing balance | Opening balance |
|---|---|---|---|---|---|
| C. | LIABILITIES | 300 | 3,052,441,964,507 | 3,278,872,819,011 | |
| I. | Current liabilities | 310 | 2,026,034,102,655 | 2,060,713,280,767 | |
| 1. | Short-term trade payables | 311 | 19 | 452,877,108,896 | 478,565,168,169 |
| 2. | Short-term advances from customers | 312 | 20 | 122,950,516,714 | 80,837,106,240 |
| 3. | Taxes and amounts payable to the State budget | 313 | 15 | 58,813,917,687 | 66,288,625,026 |
| 4. | Payables to employees | 314 | 133,671,272,818 | 137,134,034,081 | |
| 5. | Short-term accrued expenses | 315 | 21 | 456,822,960,695 | 678,292,053,057 |
| 6. | Short-term unearned revenue | 318 | 16,363,638 | 18,181,819 | |
| 7. | Other current payables | 319 | 22 | 64,799,698,649 | 80,115,659,533 |
| 8. | Short-term loans and obligations under finance leases | 320 | 23 | 190,871,758,751 | 177,270,899,255 |
| 9. | Short-term provisions | 321 | 24 | 467,511,021,812 | 312,648,007,246 |
| 10. | Bonus and welfare funds | 322 | 77,699,482,995 | 49,543,546,341 | |
| II. | Long-term liabilities | 330 | 1,026,407,861,852 | 1,218,159,538,244 | |
| 1. | Other long-term payables | 337 | 22 | 1,866,870,000 | 960,870,000 |
| 2. | Long-term loans and obligations under finance leases | 338 | 25 | 858,922,907,882 | 1,063,625,393,987 |
| 3. | Deferred tax liabilities | 341 | 132,540,000,000 | 132,540,000,000 | |
| 4. | Scientific and technological development fund | 343 | 33,078,083,970 | 21,033,274,257 | |
| D. | EQUITY | 400 | 8,247,499,340,888 | 8,161,435,444,583 | |
| I. | Owner’s equity | 410 | 26 | 8,247,499,340,888 | 8,161,435,444,583 |
| 1. | Owner’s contributed capital | 411 | 3,914,000,000,000 | 3,914,000,000,000 | |
| - Ordinary shares carrying voting rights | 411a | 3,914,000,000,000 | 3,914,000,000,000 | ||
| 2. | Share premium | 412 | 21,179,913,858 | 21,179,913,858 | |
| 3. | Treasury shares | 415 | (2,296,824,120) | (2,296,824,120) | |
| 4. | Investment and development fund | 418 | 3,497,039,984,859 | 3,497,039,984,859 | |
| 5. | Retained earnings | 421 | 654,776,859,274 | 566,144,654,027 | |
| - Retained earnings accumulated to the prior year end | 421a | 54,215,294,040 | 228,248,570,458 | ||
| - Retained earnings of the current year | 421b | 600,561,565,234 | 337,896,083,569 | ||
| 6 | Non-controlling interests | 429 | 162,799,407,017 | 165,367,715,959 | |
| TOTAL RESOURCES (440=300+400) | 440 | 11,299,941,305,395 | 11,440,308,263,594 |
Tran Xuan Thao
Preparer
Vo Ngoc Phuong
Chief Accountant
Le Cu Tan
Chief Executive Officer
25 March 2021
CONSOLIDATED INCOME STATEMENT
Unit: VND
| No. | ITEMS | Codes | Notes | Current year | Prior year |
|---|---|---|---|---|---|
| 1. | Gross revenue from goods sold and services rendered | 01 | 7,867,574,305,211 | 7,757,075,543,739 | |
| 2. | Deductions | 02 | 105,755,700,648 | 73,534,335,681 | |
| 3, | Net revenue from goods sold and services rendered (10=01-02) | 10 | 29 | 7,761,818,604,563 | 7,683,541,208,058 |
| 4. | Cost of sales and services rendered | 11 | 29 | 6,032,014,990,990 | 6,281,448,254,606 |
| 5. | Gross profit from goods sold and services rendered (20=10-11) | 20 | 29 | 1,729,803,613,573 | 1,402,092,953,452 |
| 6. | Financial income | 21 | 31 | 179,636,016,847 | 140,013,425,496 |
| 7. | Financial expenses | 22 | 32 | 94,847,103,094 | 107,636,556,757 |
| - In which: Interest expense | 23 | 88,463,426,175 | 106,897,449,564 | ||
| 8. | Share of net profit from joint-ventures, associates | 24 | 2,437,351,362 | 1,680,107,483 | |
| 9. | Selling expenses | 25 | 33 | 654,617,057,501 | 554,758,002,570 |
| 10. | General and administration expenses | 26 | 33 | 409,071,818,150 | 415,339,815,960 |
| 11. | Operating profit (30=20+(21-22)+24-(25+26)) | 30 | 753,341,003,037 | 466,052,111,144 | |
| 12. | Other income | 31 | 34 | 96,475,936,092 | 7,480,346,769 |
| 13. | Other expenses | 32 | 35 | 1,926,168,341 | 6,456,808,962 |
| 14. | Profit from other activities (40=31-32) | 40 | 94,549,767,751 | 1,023,537,807 | |
| 15. | Accounting profit before tax (50=30+40) | 50 | 847,890,770,788 | 467,075,648,951 | |
| 16. | Current corporate income tax expense | 51 | 36 | 166,619,580,888 | 90,454,832,980 |
| 17. | Deferred corporate tax income | 52 | 36 | (20,348,488,902) | (12,239,055,688) |
| 18. | Net profit after corporate income tax (60=50-51-52) | 60 | 701,619,678,802 | 388,859,871,659 | |
| 18.1 | Profit after tax attributable to Parent Company | 61 | 691,307,691,848 | 377,703,325,589 | |
| 18.2 | Profit after tax attributable to non-controlling shareholders | 62 | 10,311,986,954 | 11,156,546,070 | |
| 19. | Basic earnings per share | 70 | 37 | 1,535 | 754 |
Tran Xuan Thao
Preparer
Vo Ngoc Phuong
Chief Accountant
Le Cu Tan
Chief Executive Officer
25 March 2021
CONSOLIDATED CASH FLOW STATEMENT
Unit: VND
| No. | ITEMS | Codes | Current year | Prior year |
|---|---|---|---|---|
| I. | CASH FLOWS FROM OPERATING ACTIVITIES | |||
| 1. | Profit before tax | 01 | 847,890,770,788 | 467,075,648,951 |
| 2. | Adjustments for: | |||
| Depreciation and amortisation of fixed assets and investment properties | 02 | 549,648,417,025 | 561,879,123,157 | |
| Provisions | 03 | 194,437,765,308 | 167,226,193,328 | |
| Foreign exchange gain arising from translating foreign currency items | 04 | (1,687,283,663) | (764,976,791) | |
| Gain from investing activities | 05 | (177,401,927,532) | (137,907,172,131) | |
| Interest expense | 06 | 88,463,426,175 | 106,897,449,564 | |
| Other adjustments | 07 | 20,000,000,000 | - | |
| 3. | Operating profit before movements in working capital | 08 | 1,521,351,168,101 | 1,164,406,266,078 |
| Changes in receivables | 09 | (12,019,853,115) | 227,366,396,790 | |
| Changes in inventories | 10 | (114,561,989,431) | 255,149,812,712 | |
| Changes in payables (excluding accrued loan interest and corporate income tax payable) | 11 | (215,723,205,282) | 283,021,492,395 | |
| Decreases in prepaid expenses | 12 | 3,189,814,566 | 16,080,067,431 | |
| Interest paid | 14 | (101,010,428,297) | (54,866,114,339) | |
| Corporate income tax paid | 15 | (178,220,066,598) | (45,844,375,272) | |
| Other cash outflows | 17 | (115,732,025,947) | (86,306,205,352) | |
| Net cash generated by operating activities | 20 | 787,273,413,997 | 1,759,007,340,443 | |
| II. | CASH FLOWS FROM INVESTING ACTIVITIES | |||
| 1. | Acquisition and construction of fixed assets and other long-term assets | 21 | (81,740,330,467) | (117,832,821,638) |
| 2. | Proceeds from sale, disposal of fixed assets and other long-term assets | 22 | - | 2,828,702,473 |
| 3, | Cash outflow for lending, buying debt instruments of other entities | 23 | (2,940,000,000,000) | (1,720,000,000,000) |
| 4. | Cash recovered from lending, selling debt instruments of other entities | 24 | 1,790,000,000,000 | 1,640,000,000,000 |
| 5. | Interest earned, dividends and profits received | 27 | 165,742,209,214 | 140,662,774,725 |
| Net cash used in investing activities | 30 | (1,065,998,121,253) | (54,341,344,440) | |
| III. | CASH FLOWS FROM FINANCING ACTIVITIES | |||
| 1. | Proceeds from borrowings | 33 | 381,719,552,000 | 124,208,464,716 |
| 2. | Repayment of borrowings | 34 | (571,448,728,652) | (166,966,798,373) |
| 3, | Dividends and profits paid | 36 | (479,315,340,540) | (401,886,060,700) |
| Net cash used in financing activities | 40 | (669,044,517,192) | (444,644,394,357) | |
| Net (decrease)/increase in cash (50=20+30+40) | 50 | (947,769,224,448) | 1,260,021,601,646 | |
| Cash and cash equivalents at the beginning of the year | 60 | 2,976,952,450,033 | 1,716,919,348,616 | |
| Effects of changes in foreign exchange rates | 61 | 15,359,757 | 11,499,771 | |
| Cash and cash equivalents at the end of the year (70=50+60+61) | 70 | 2,029,198,585,342 | 2,976,952,450,033 |
Tran Xuan Thao
Preparer
Vo Ngoc Phuong
Chief Accountant
Le Cu Tan
Chief Executive Officer
25 March 2021
