ANNUAL REPORT 2021
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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 2021.

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:

Board of Directors
Mr. Hoang Trong Dung Chairman (appointed on 27 April 2021)
Mr. Nguyen Tien Vinh Chairman (resigned on 28 April 2021)
Mr. Le Cu Tan Member
Mr. Louis T.Nguyen Member
Mr. Duong Tri Hoi Member
Mr. Trinh Van Khiem Member
Mr. Ta Quang Huy Member (resigned on 27 April 2021)
Executive Board
Mr. Le Cu Tan Chief Executive Officer
Ms. Tran Thi Phuong Thao Executive Officer
Mr. Cao Trung Kien Executive Officer
Mr. Le Van Quoc Viet Executive Officer
Ms. Le Thi Thu Huong Executive Officer
Mr. Dao Van Ngoc Executive Officer
Mr. Ta Quang Huy Executive Officer (appointed on 28 April 2021)
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 2021, 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 and presenting 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 17 March 2022.

For and on behalf of the Executive Board,

Le Cu Tan
Chief Executive Officer/Member of the Board of Directors

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 17 March 2022, as set out from page 112 to page 150, which comprise the consolidated balance sheet as at 31 December 2021, 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’s Responsibility for the Consolidated Financial Statements

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.

Auditors’ Responsibility

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.

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 2021, 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.

Tran Xuan Anh
Deputy General Director
Audit Practising Registration Certificate
No. 0723-2018-001-1

DELOITTE VIETNAM COMPANY LIMITED

17 March 2022
Hanoi, S.R. Vietnam

Luong Tuan Dat
Auditor
Audit Practising Registration Certificate
No. 4370-2018-001-1

CONSOLIDATED BALANCE SHEET

As at 31 December 2021

FORM B 01-DN/HN

Issued under Circular No. 202/2014/TT-BTC
dated 22 December 2014 of the Ministry of Finance

ASSETS Codes Notes Closing balance Opening balance
A. CURRENT ASSETS 100 9,519,579,701,251 6,314,163,032,937
I. Cash and cash equivalents 110 4 2,524,115,312,966 2,029,198,585,342
1. Cash 111 567,149,383,517 265,139,502,295
2. Cash equivalents 112 1,956,965,929,449 1,764,059,083,047
II. Short-term financial investments 120 3,455,000,000,000 2,185,000,000,000
1. Held-to-maturity investments 123 5 3,455,000,000,000 2,185,000,000,000
III. Short-term receivables 130 488,926,629,172 340,731,443,856
1. Short-term trade receivables 131 6 262,942,321,240 223,032,121,230
2. Short-term advances to suppliers 132 7 137,517,046,753 58,161,771,022
3. Other short-term receivables 136 8 321,676,658,968 292,846,621,763
4. Provision for short-term doubtful debts 137 9 (233,476,873,759) (233,576,422,659)
5. Deficits in assets awaiting solution 139 267,475,970 267,352,500
IV. Inventories 140 10 2,775,533,988,246 1,468,360,373,620
1. Inventories 141 2,778,813,854,584 1,494,665,449,780
2. Provision for devaluation of inventories 149 (3,279,866,338) (26,305,076,160)
V. Other short-term assets 150 276,003,770,867 290,872,630,119
1. Short-term prepayments 151 11 15,329,149,739 27,025,250,532
2. Value added tax deductibles 152 257,422,886,104 256,938,273,841
3. Taxes and other receivables from the State budget 153 15 3,251,735,024 6,909,105,746
B. NON-CURRENT ASSETS 200 4,398,350,543,150 4,985,778,272,458
I. Long-term receivables 210 849,874,000 698,374,000
1. Other long-term receivables 216 8 849,874,000 698,374,000
II. Fixed assets 220 3,716,965,004,749 4,282,892,453,351
1. Tangible fixed assets 221 12 2,883,489,798,863 3,438,870,887,385
- Cost 222 11,546,905,383,342 11,646,460,047,004
- Accumulated depreciation 223 (8,663,415,584,479) (8,207,589,159,619)
2. Intangible assets 227 13 833,475,205,886 844,021,565,966
- Cost 228 1,155,791,328,193 1,153,056,314,593
- Accumulated amortisation 229 (322,316,122,307) (309,034,748,627)
III. Investment property 230 14 209,845,313,863 219,743,745,413
- Cost 231 317,953,542,202 317,953,542,202
- Accumulated depreciation 232 (108,108,228,339) (98,209,796,789)
IV. Long-term assets in progress 240 174,082,187,941 153,441,224,477
1. Construction in progress 242 16 174,082,187,941 153,441,224,477
V. Long-term financial investments 250 44,656,956,639 44,245,603,945
1. Investments in joint-ventures, associates 252 17 28,619,663,470 27,991,375,327
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 (4,464,706,831) (4,247,771,382)
VI. Other long-term assets 260 251,951,205,958 284,756,871,272
1. Long-term prepayments 261 11 25,697,331,132 30,448,054,378
2. Deferred tax assets 262 18 79,187,651,840 101,730,355,972
3. Long-term reserved spare parts 263 10 124,128,741,854 139,786,369,885
4. Other long-term assets 268 22,937,481,132 12,792,091,037
TOTAL ASSETS (270=100+200) 270 13,917,930,244,401 11,299,941,305,395
RESOURCES Codes Notes Closing balance Opening balance
C. LIABILITIES 300 3,204,770,523,758 3,052,441,964,507
I. Current liabilities 310 2,151,651,816,461 2,026,034,102,655
1. Short-term trade payables 311 19 771,382,083,149 452,877,108,896
2. Short-term advances from customers 312 20 124,292,938,370 122,950,516,714
3. Taxes and amounts payable to the State budget 313 15 389,655,826,646 58,813,917,687
4. Payables to employees 314 173,860,882,277 133,671,272,818
5. Short-term accrued expenses 315 21 337,883,833,828 456,822,960,695
6. Short-term unearned revenue 318 18,181,819 16,363,638
7. Other current payables 319 22 74,252,202,749 64,799,698,649
8. Short-term loans and obligations under finance leases 320 23 200,133,810,219 190,871,758,751
9. Short-term provisions 321 24 20,327,222,568 467,511,021,812
10. Bonus and welfare funds 322 59,844,834,836 77,699,482,995
II. Long-term liabilities 330 1,053,118,707,297 1,026,407,861,852
1. Other long-term payables 337 22 8,526,946,700 1,866,870,000
2. Long-term loans and obligations under finance leases 338 25 700,468,329,150 858,922,907,882
3. Deferred tax liabilities 341 132,540,000,000 132,540,000,000
4. Long-term provisions 342 24 165,486,270,110 -
5. Scientific and technological development fund 343 46,097,161,337 33,078,083,970
D. EQUITY 400 10,713,159,720,643 8,247,499,340,888
I. Owners’ equity 410 26 10,713,159,720,643 8,247,499,340,888
1. Owners’ 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 3,085,566,955,137 654,776,859,274
- Retained earnings accumulated to the prior year end 421a 53,257,339,727 54,215,294,040
- Retained earnings of the current year 421b 3,032,309,615,410 600,561,565,234
6. Non-controlling interests 429 197,669,690,909 162,799,407,017
TOTAL RESOURCES (440=300+400) 440 13,917,930,244,401 11,299,941,305,395

Tran Xuan Thao
Preparer

Vo Ngoc Phuong
Chief Accountant

Le Cu Tan
Chief Executive Officer

CONSOLIDATED INCOME STATEMENT

For the year ended 31 December 2021

FORM B 02-DN/HN

Issued under Circular No. 202/2014/TT-BTC
dated 22 December 2014 of the Ministry of Finance

ITEMS Codes Codes Current year Prior year
1. Gross revenue from goods sold and services rendered 01 12,881,680,840,632 7,867,574,305,211
2. Deductions 02 95,539,647,280 105,755,700,648
3. Net revenue from goods sold and services rendered (10=01-02) 10 29 12,786,141,193,352 7,761,818,604,563
4. Cost of sales 11 29 8,000,602,438,317 6,032,014,990,990
5. Gross profit from goods sold and services rendered (20=10-11) 20 29 4,785,538,755,035 1,729,803,613,573
6. Financial income 21 31 175,513,945,627 179,636,016,847
7. Financial expenses 22 32 74,648,067,031 94,847,103,094
- In which: Interest expense 23 69,266,472,919 88,463,426,175
8. Share of net profit from joint-ventures, associates 24 2,503,197,142 2,437,351,362
9. Selling expenses 25 33 817,762,955,253 654,617,057,501
10. General and administration expenses 26 33 424,973,596,372 409,071,818,150
11. Operating profit (30=20+(21-22)+24-(25+26)) 30 3,646,171,279,148 753,341,003,037
12. Other income 31 34 155,255,174,993 96,475,936,092
13. Other expenses 32 35 1,955,231,521 1,926,168,341
14. Profit from other activities (40=31-32) 40 153,299,943,472 94,549,767,751
15. Accounting profit before tax (50=30+40) 50 3,799,471,222,620 847,890,770,788
16. Current corporate income tax expense 51 36 605,412,217,929 166,619,580,888
17. Deferred corporate tax expense/(income) 52 36 22,542,704,132 (20,348,488,902)
18. Net profit after corporate income tax (60=50-51-52) 60 3,171,516,300,559 701,619,678,802
18.1 Profit after tax attributable to Parent Company 61 3,117,133,794,101 691,307,691,848
18.2 Profit after tax attributable to non-controlling shareholders 62 54,382,506,458 10,311,986,954
19. Basic earnings per share 70 37 7,749 1,413

Tran Xuan Thao
Preparer

Vo Ngoc Phuong
Chief Accountant

Le Cu Tan
Chief Executive Officer

CONSOLIDATED CASH FLOW STATEMENT

For the year ended 31 December 2021

FORM B 03-DN/HN

Issued under Circular No. 202/2014/TT-BTC
dated 22 December 2014 of the Ministry of Finance

ITEMS Codes Current year Prior year
I. CASH FLOWS FROM OPERATING ACTIVITIES
1. Profit before tax 01 3,799,471,222,620 847,890,770,788
2. Adjustments for:
Depreciation and amortisation of fixed assets and investment properties 02 536,986,110,692 549,648,417,025
Provisions 03 36,040,728,360 194,437,765,308
Foreign exchange gain arising from translating foreign currency items 04 (4,822,786,402) (1,687,283,663)
Gain from investing activities 05 (168,460,157,280) (177,401,927,532)
Interest expense 06 69,266,472,919 88,463,426,175
Other adjustments 07 20,000,000,000 20,000,000,000
3. Operating profit before movements in working capital 08 4,288,481,590,909 1,521,351,168,101
Changes in receivables 09 (149,969,462,576) (12,019,853,115)
Changes in inventories 10 (1,278,636,166,868) (114,561,989,431)
Changes in payables (excluding accrued loan interest and corporate income tax payable) 11 189,583,186,815 (215,723,205,282)
Changes in prepaid expenses 12 16,446,824,039 3,189,814,566
Interest paid 14 (73,836,553,165) (101,010,428,297)
Corporate income tax paid 15 (302,161,819,901) (178,220,066,598)
Other cash outflows 17 (173,836,027,596) (115,732,025,947)
Net cash generated by operating activities 20 2,516,071,571,657 787,273,413,997
II. CASH FLOWS FROM INVESTING ACTIVITIES
1. Acquisition and construction of fixed assets and other long-term assets 21 (221,937,019,045) (81,740,330,467)
2. Proceeds from sale, disposal of fixed assets and other long-term assets 22 298,617,437 -
3. Cash outflow for lending, buying debt instruments of other entities 23 (5,640,000,000,000) (2,940,000,000,000)
4. Cash recovered from lending, selling debt instruments of other entities 24 4,370,000,000,000 1,790,000,000,000
5. Interest earned, dividends and profits received 27 172,717,516,126 165,742,209,214
Net cash used in investing activities 30 (1,318,920,885,482) (1,065,998,121,253)
III. CASH FLOWS FROM FINANCING ACTIVITIES
1. Proceeds from borrowings 33 724,557,695,286 381,719,552,000
2. Repayment of borrowings 34 (869,427,255,390) (571,448,728,652)
3. Dividends and profits paid 36 (557,564,743,740) (479,315,340,540)
Net cash used in financing activities 40 (702,434,303,844) (669,044,517,192)
Net increase/(decrease) in cash (50=20+30+40) 50 494,716,382,331 (947,769,224,448)
Cash and cash equivalents at the beginning of the year 60 2,029,198,585,342 2,976,952,450,033
Effects of changes in foreign exchange rates 61 200,345,293 15,359,757
Cash and cash equivalents at the end of the year (70=50+60+61) 70 2,524,115,312,966 2,029,198,585,342

Tran Xuan Thao
Preparer

Vo Ngoc Phuong
Chief Accountant

Le Cu Tan
Chief Executive Officer

STATEMENT OF THE EXECUTIVE BOARD
INDEPENDENT AUDITORS’ REPORT
CONSOLIDATED BALANCE SHEET
CONSOLIDATED INCOME STATEMENT
CONSOLIDATED CASH FLOW STATEMENT

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