DPM Annual Report 2020

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.

Management is responsible for the preparation and fair presentation of these consolidated financial statements in accordance with Vietnamese Accounting Standards, accounting regime for enterprises and legal regulations relating to consolidated financial reporting and for such internal control as management determines is necessary to enable the preparation of the consolidated financial statements that are free from material misstatement, whether due to fraud or error.

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.

In our opinion, the consolidated financial statements present fairly, in all material respects, 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.

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

LOGO DPM-01