summary of sudico company annual report 2010 song da urban & industrial zone investment and development joint stock company

SUMMARY OF SUDICO COMPANY ANNUAL REPORT 2010 Name Song Da Urban & Industrial Zone Investment and Development Joint-Stock Company Abbreviation: SUDICO Address: Floor 1+2, CT1 Building- My Đinh Urban Area- Me Tri, Tu Liem, Ha Noi Tel: 04-37684505 Fax: 04-7684029 Email: info@sudicosd.com Website: http://www.sudicosd.com.vn Certificate of Business registration: 0103002731 issued by Hanoi Authority of Planning and Investment Charter capital: 1.000.000.000.000 VNĐ (One billion dong) Securities Code: SJS - Listed shares at the Stock Exchange Department of Ho Chi Minh City MESSAGES OF THE CHAIRMAN OF THE BOARD Sudico committed to effort and invest comprehensively of all resources in physics and spirit to provide products such as houses, urban area and industrial zones, tourist areas to ensure quality and meet requirements use , in accordance with requirem ents enhancing landscape of urban architect and living environment,working environment for the community and society Ladies and Gentlemen! On behalf of the chairman the Board I send shareholders and your families best wishes and healthy, happiness and success In 2010, the economic situation is not favorable evolutions Although many areas have recovered in 2009, they declined strongly in the end of 2010 Vietnam's economy is still facing many difficulties and challenges Collective of officials and employees of the Company have made great efforts and overcome difficulties to make business planning delivered by the shareholders In 2011, the goal of SUDICO: is focus to develop investment and business of projects which the company considered as an investor to ensure the highest efficiency Promoting the available strength of finance, management experience, exploitation trading of urban projects for cooperating, making partnership, associate with other enterprises to accelerate, increasing profitability through unique and different products of company Promote and encourage highly all resources to enhance competitiveness Studying, taking part in invest in areas that have high growth, to generate stable revenue and profit for the company On behalf of Chairman the Board of SUDICO Company, I sincerely express our gratitude profound to the shareholders, the concerned departments, the domestic partners and foreign partners, especially thank the efforts of Collective of officials and employees of the Company for significant contributions in the development of SUDICO Company in recent years SUDICO company hopes to get your trust, support, collaboration to contribute that the Company will fulfill the criterias and plans as set out to ensure sustainable growth, bringing the best performance for main shareholders, the Compa ny, all officers and employees and the State Budget "SUDICO is a belief and pride of shareholders' In sincerely thank you! ON BEHALF OF BOARD OF CHAIRMAN Chairman PHAN NGOC DIEP SUMMARY OF SUDICO ONE OF THE TOP hình thành phát triển Lịch sử REAL ESTATE BUSINESS OF VIETNAM In 2010: - The company has received numerous awards, honors, participated in many social activities, activities of charity In 2009: - Has completed to raise charter capital from 400 billion dong to 1,000 billion dong in December of 2009 - Got gold cup of “Vietnam typical Entrepreneur "and the Gold Cup for "excellent leadership " - Got the Vietnam Gold Star Award for Top 100 best brands in Vietnam in 2009 and the award for "Top 20 prestige securities brand in 2009" - Got the "top brand of external economy in Vietnam" and "The typical external economic activities personal" dedicated to Mr Phan Ngoc Diep -Chairman of the board of the Company In 2008: - Established An Khanh MTV Sudico Co, Ltd In 2007: - Completed two terms of increasing charter capital from 50 billion dong to 200 billion dong in January of 2007 and continued to increase to 400 billion dong in August of 2007 Established: Tien Xuan MTV Sudico Company Limited Sudico Services JSC Sudico Consulting JSC - Ministry of Science and Technology awarded ISO2007 Gold Cup In 2006: - Listed successfully shares at the Stock Exchange Department in Ho Chi Minh - Certificated to get standard quality management system ISO 9001:9002 - Ministry of Construction awarded the Excellent Emulation Flag - Central Committee of the Vietnam Young Entrepreneurs Association handed Vietnam Gold Star Award In 2005: - Ministry of Construction awarded the Excellent Emulation Flag In 2004: - Established: South Branch Hoa Binh Project Management Board - Ministry of Construction awarded the Excellent Emulation Flag - Hanoi People's Committee commended and fixed the celebration construction plates for 50 years on Capital Liberation Day for Project No 62 Truong Chinh Road - The Prime Minister presented certificates of merit to the Director General In 2003: - Tranferred into Joint Stock Company - Established: Projects Management Board of areas in Hanoi Quang Ninh Projects Management Board Ha Tay Projects Management Board of - Ministry of Construction awarded the Excellent Emulation Flag * In 9/2001: Established Song Da urban and industrial zones Investment and Development , a member of Song Da Corporation GENERAL FOR COMPANY Song Da urban and industrial zones Investment and Development hereinafter referred to as "Company" was established under Decision No 946/QD-BXD dated July 08, 2003 of the Minister of Construction for transfering Song Da urban and industrial zones Investment and Development is a State enterprise belongs to the Song Da Corporation and operated under the certificate of business registration of Joint Stock Company No.0103002731 dated August 08, 2003 In the operation progress has changed six times the certificate of business registration of increasing charter capital, changed activities headquarter and legal representatives Charter capital by the certificate of business registration change the 6th dated December 14, 2009 is 1,000,000,000,000 dong (one thousand billion dong) Par value of shares: 10,000 VND / share Direclty under units Directly under units Projects Management Board of urban areas in Hanoi Quang Ninh Projects Management Committee Hoa Binh Projects Management Board Branch of Company in South SUDICO Real estate trasaction floors Subsidiaries Companies Tien Xuan MTV SUDICO Co, Ltd An Khanh SUDICO JSC SUDICO Service JSC Vision Products are unique, distinguish, strong ethnic identity, close to environment and amenities within each urban the natural area Mission Maximize the society benefit of the customers to create common shared value for the company and The main line of business  Consulting, investing, developing and implementing of construction investment projects, trading houses, urban areas and industrial areas;  Trading of Exploitation the services of housing, urban and industrial areas;  Construction and installation of civil and industrial areas;  Consulting engineering design, detailed planning of urban and industrial areas;  Design consulting civil, industrial;  Production and sales of construction materials, equipment andfurniture;  Business real estate and other services;  Import-export business equipment and machinery;  Mining and mineral processing;  Investment and production of commercial electricity business;  Financial Investment;  Get the investment trust of organizations and individuals Short term goals Accelerated the investment projects, business develop ment in schedule to ensure mining projects with the highest efficiency,consistent with the common development direction of the Company Actively seek opportunities for new investment projects and foreign investment to expand the service of sustainable development goals Capture good market, good management of financial investments.Expand investment and cooperation and contribute capital toenterprises, the project has the potential and effectiveness in theareas of Finance, Industry, Real Estate Research, propose and develop plans to raise capital optimizationservice proj ects being implemented by the company Complete the renovation business to create stable conditions forproduction and business operations for the parent Company,subsidiaries and associated companies Long term goals the business requirements of the Company Raising financial resources, production capacity andcompetitiveness, expand the scale and scope as well asaccelerate the development of SUDICO businesses worth of realestate, investment urban development and industrial zones of Vietnam's leading Strategic Orientation Focused on building the company a comprehensive development based on business areas are mainly business investment property, ensuring the stable growth of profits and dividends every year,continuous development and confirm branch "SUDICO" Investment, expansion and development of the Continued research investment real domestic market,investment and gradual investment estate business, investment and development of cooperation and develop new product lines: financial urban and industrial areas, investment, production and sales of supplies and financial - bankingservices and other equipment, business parks travel and hotel high flexibility and efficiency, diversification Promote higher levels of all resources to ofproducts to ensure stable development in enhance competitiveness and constantly improve revenue and profits inthe absence of market stability the material life and spiritual workers.Building a Full event management, recruitment and training corporate culture of its own identity "SUDICO" of staff capacity and qualifications to meet Organizational structure General Board of Shareholders Board of chairman Board of controlling general director REPRESENTATIVE OF CAPITAL PART Branches Departments of function Project management Boards Subsidiaries Linked companies Introduction to leaders Members of board of directors: Mr Phan Ngoc Diep – Chairman of the board Mr Vi Viet Dung – Member of the board Mr Vu Hong Su - Member of the board Mr Nguyen Phu Cuong - Member of the board Mr Dang Hong Quang - Member of the board Member of General Directors Board Mr Vi Viet Dung – General director Mr Dang The Do – Deputy General director Mr Vu Van Dung - Deputy General director Mr Tran Dinh Tru - Deputy General director Mr Ngo Vinh Khuong - Deputy General director Mr Bui Khac Vien - Deputy General director Mr Luu Ngoc Dung - Deputy General director Members of the board of Control Mrs Nguyen Thi Su – Chief of board of Control Mr Vu Quoc Huy – Member of board of Control Mr Truong Van Tuan - Member of board of Control After-tax profit of minority 18.1 shareholders 61 816,748,945 62 70 456,983,119,745 4,587 - After-tax profit of parent 18.2 companyshareholders 19 Basic earnings per share Maker Nguyen Thi Minh Hue Chief accountant Vu Kim Long VI.27 705,149,555,115 8,667 General director Vi Viet Dung REPORT OF BUSINESS PRODUCTION In 2010, socio-economic situation continues to face many challenges from internal as well as economic impact directly from the recession, economic crisis and world regions Real estate market has not really prospered by the effects of inflation, the volatility ofexchange rates, interest rates on loans, plus additional regulation, new government decree making conditions for raising capital forenterprises more difficult, investors have little chance of surfing Full Rate difficulties and challenges in the first year, the companyhas decided to focus all resources possible to implement the objectives set out plans The organization and development of enterprise: - Develop the plan for organization and operation of the Company under the corporation model specialized property - Switch operating model into Shareholding Company: An Khanh SUDICO JSC, South SUDICO shares, Hoa Binh SUDICO shares, Ha Long SUDICO shares to radical decentralization of management and accelerate the investment in projects, key areas - To strengthen the organizational structure, management and operation of the Company as well as decentralize to units; appoint officials are fully capable of participating in the management apparatus, operating at the new joint stock companies; Assigning specific tasks to individual hold management to maximize flexibility, autonomy and self-responsibility in the work executive Investment work: - The investment projects are implemented in accordance with the provisions of the State and put into the business to ensure effective exploitation Implementation of new projects has high potential to ensure sustainable development of the Company - In 2010, despite the deployment of business in charge of the projects of limited company but the company still ensure to mobilize enough the necessary capital for the investment activities of the Company, the investment activities has completed 93% of the year plan (to reach about 3,000 billion) The company has focused the resources to accelerate the development of investment, construction, completion and handover implementation of works under key projects: Office building HH3; low-rise zone TT1; Infrastructure Office buildings in La-Van Khe; Tran Hung Dao Residential Street North - Hoa Binh Work of business, capital income, urban management services: - Research and application of new decisions and decrees of the Government in the business, raising capital in the business activities in the projects of the Company; in 2010 has raised enough capital to for investment in the projects La - Van Khe and Pho Noi - Hung Yen - Focus to built strategy and business promoting profile of Nam An Khanh new urban project serving preparation for sales, design and production of the home form; introduction profile of business; communication strategy, participation in specialized exhibitions of real estate - Complete the collection of funds in the projects: TT1, HH3; contracting service management contract to new urban areas of My Dinh - Me Tri for a managing point is SUDICO Service Joint Stock Company to enhance service quality in urban areas and improve the company brand Work of technique management, quality and labour safety: - Fully implement the provisions of the state of quality management, procurement and construction and installation Maintaining the quality management system ISO 9001: 2000 company to the units Economic work plan: Have developed scientific business plans based on balance of resources and market needs to serve the sustainable development objectives of the Company - Implementing the innovation in the planning and statistical reports, strictly the regulations and new guidance of Song Da Corporation and the State Perform investment management, performance of the contract signing, payment in accordance with the provisions of the State, ensuring the effectiveness of the contract The management of finance, credit and accounting: - Implement financial management in accordance with current laws and regulations on financial management of the Company - Strengthen the relationship between the credit institution, Bank ensures mobilize and disburse funds in time for projects; control the use of loans is reasonable and effective The management of labor and wages: - Ensure employment and income stability for staff and workers Strict management, improve the performance of each staff member - Develop and promulgate regulations for payment with company executive apparatus and the units corresponding to the results of their work, contribute to encouraging the employees to work effectively in a long time with the company - Make good insurance for employees, timely payment of insurance Organize periodical health examination for officers and employees Mass work and social security: Collective SUDICO staff have responded positively, participantsraised the poor and support programs su ch as Social SecurityFund "to support the poor, " people are supporting flood an amount of 6.13 billion - Active participation in the mass movement activities to encourage the morale of staff In 2010, the Company has achievedthe excellence award movements such as youth football tournament Group and construction industry of VietnamAssociation of Performing Arts Award mass Song Da Corporation Financial investment portfolio No Investment portfolio SUBSIDIARIES An Khanh Sudico Joint Stock Company MTV Sudico Tien Xuan Co, Ltd SUDICO Service Joint Stock Company Charter capital Own rate (%) 300 350 15 99,97 100,00 51,00 100 51,00 AFFILIATES Song Da Urban and Industrial Zones Investment and Development JSC Consulting Sudico JSC Viet Star securities JSC 15 135 51,29 22,22 Sudico construction material and investment joint stock 30 26,00 company Phuc Son Light Ceramic Joint Stock Company Song Da 19 Joint Stock Company Thang Long Real Estate and Trading Joint Stock 30 50 20,00 21,59 24,5 60,00 30 100 100 100 26,00 99,90 99,90 15,66 982 112,5 120 100 30,03 182,51 500 150 300 300 80 360 6,83 4,44 10,00 10,00 2,51 3,29 5,00 5,00 9,07 2,93 10,00 10,00 Company Sudico Construction Joint Stock Company Central Sudico Joint Stock Company 10 Southern Sudico Joint Stock Company 11 Van Phong Joint Stock Company CAPITAL CONTRIBUTION TO THE COMPANY Ha Long Cement Joint Stock Company Song Da – Viet Duc Investment Joint Stock Company Waseco Company Vinare Invest Joint Stock Company PT HT HHCT TP HN JSC Công ty CP ĐTPT PVI Invest Petroleum Electricity real estate Urban gas development and investment JSC Tay Bac Power development and investment JSC 10 Toan Cau Insurance JSC 11 Tan Bien Rubber JSC 12 Viet Nam HUB Caribe JSC OTHER LONG-TERM INVESTMENTS Government bonds Bonds VFA fund certificate Convertible bonds SDFC 0,3 0,01 20,3 10 SITUATION OF HUMAN RESOURCES MANAGEMENT In 31/12/2010, the total staff is 229 people at Sudico Sudico full implementation of the rights and obligations to the employees in accordance with policies prescribed by the State Besides, there Sudico modes take care of life physical and mental health staff, such as periodic health checks, annual holiday tour, organizing cultural activities celebrating the holidays most of the year, visiting family encourage Sudico regularly held for staff to participate in specialized courses that improve their business as well as additional knowledge other life Sudico policies to encourage and facilitate staff to study abroad to improve and update new knowledge REPORT OF CONTROLLING BOARD Perform the functions and powers according to law and rules of professional dooanh Company Charter, the Control Board has seriously implemented the inspection, review and make comments, evaluate the following: Activities of the Investment Corporation of Urban Development and the Song Da Industrial Park has fully complied with the provisions of law, the Charter and Regulations of the Company The company invested in over the years is preserved and developed The scope and scale of operations of the company expanding and stable operation, delivering high performance The investment projects are implemented laws and regulations in business, the effective exploitation Consistent with financial statement data in 2010 by the Investment Corporation of Urban Development and the Song Da Industrial Zone was established and Auditing and Vietnam pricing audit Company Limited Of which: Units: million dong Targets In 2010 Total assets 4.467.394 Short-term assets 693.529 Cash and cash equivalents 163.005 Investments in short-term financial 7.675 Short-term receivables 362.990 Inventories 126.670 Other current accounts 33.187 Long-term assets 3.773.864 Commerce advantage 94.597 Fixed assets 3.137.802 Investment real-estate 3.969 Investments in long-term financial 534.745 Other long-term assets 2.749 Total of capital resource 4.467.394 Payable debt 2.281.082 Short term debt 1.641.544 Long term debt 639.537 Capital resource of owner 2.177.918 Capital of owner 2.177.918 Other expenses and funds OPERATION PLANNING IN 2011 Entering 2011, global economic situation honh mountains and Vietnam riong mountain facing many difficulties and challenges The wave of the crisis stems from the financial markets that spread to the entire economy Financial pressures that the cost of business borrowing more expensive and difficult to access enterprise with the capital necessary to survive and grow Therefore, businesses will have to narrow the scale of production, review and / or cancellation of investment projects, festivals put on the market of new products, seek ways to cut costs However, the action plan in 2011 is active Sudico face towel thoch the way from economy to be affected at least in the near future, continued growth and position the top sreal estate business Implementing orientation of business production in 2011 Restructuring, innovation to improve enterprise performance management, business operators: - Develop plans for the structure, strengthening the organization re-staffing company specializing in industry model Property, and research-oriented models of development in the field of real estate for delivery to the Direct subsidiaries operating management, the commercial exploitation of the project to ensure the highest efficiency - Restructuring the capital of the parent company in the member units to fit the business practices of each business in all combinations - Continue to promote the revision and editing, approval and issuance of regulations and internal regulations of the Company as well as management regulations for the representatives of capital in joint stock companies to facilitate convenient for the business production 2.Concentrating resources to make investments in key projects, supervision and management of investment efficiency and in accordance with the provisions of law - Focus resources to make investments in key projects; definitely complete the planning work / 500 South project and the Nam An Khanh and Nam An Khanh expansion project La Van - Van Khe to accelerate the construction and installation work - Creating conditions and urge the company in new areas to strengthen investment promotion projects: urban project in Thanh Hoa, Ha Nam Joint Stock Company SUDICO An Khanh project investment in factory construction of concrete block bricks soon as they apply to providing products for construction projects in the entire combined SUDICO; projects in the Central Region and Ho Chi Minh City 3.Increase power management techniques, quality and occupational safety: - To renew and improve the quality of design; strictly implement the provisions of technical management, well-organized, closely monitor the management of project quality; good general organization and management of premises construction of school officials to improve the quality, progress and effectiveness of the project - Regular control of the process of labor protection, labor safety, sanitation, fire prevention on site Seize and make good use of market opportunities, building business strategy, strategic advertising and marketing products to achieve the highest profit business - Focus on financial resources for production and business, promoting sales and aggressive in the collection of funds, to ensure complete financial plan targets in 2011 - To complete the legal procedures; concentrate on improving infrastructure to accelerate the business park project New Urban Nam An Khanh balances to ensure sufficient working capital to make investments - step up propaganda to promote the image of the project, photos of the company SUDICO to gradually build strategic projects identified image, brand identity SUDICO property to enhance the commercial value The company's products and business value Promote measures to raise capital, enhance credit support solutions, provides full funding for the timely production and business activities - Working with financial institutions, credit balance sufficient to fund the development of investment projects on the estate of SUDICO - To complete the calculation of land use projects and work with the authorities of Hanoi City to make reasonable progress payment for the new urban projects Nam An Khanh and the expansion; New Urban Progress Spring - To enhance information and contact with shareholders, investors and abroad 6.Ensure protect jobs and incomes for workers and implement programs of social security: - Reviewing the work, the labor force to organize and arrange the right person, right job; fulfill care benefits, workers' regime, and actively seeking work to ensure income for employees in the entire CB combination - Organization launched the labor movement to celebrate the holidays with the aim of: "Productivity, quality and efficiency", striving to complete and exceed business targets in 2011 - Actively participate in social security programs, participation in support of humanitarian operations, helping the poor from the welfare fund: to improve the position of a business reputation, is responsible for the development of the country, building a brand SUDICO for community, for prosperity and social progress Some main economic targets in 2011  The main targets of the combination: - Total investment value: 4,057 billion dong, compared with 30% growth in 2010 - Total value of business: 4196 billion dong, 107% growth in compared with 2010 - Total revenue: 3,526 billion dong - Gross Profit: 982 billion dong - Profit / Sales: 28% - Income per month: 8.5 million / person / month - Expected Dividends: 20%  The main targets of SUDICO - Mother: - Total investment value: 3,298 billion dong, compared with 11% growth in 2010 - Total value of business: 3536 billion dong, compared with 95% growth in 2010 - Total revenue: 2,771 billion dong - Profit: 776 billion dong - Income per month: 12 million VND / person / month - Profit / Sales: 28% The central targets in 2011 - Focus all resources to promote high-level initiative, creativity, collective intelligence to successfully implement the tasks of all business combinations in 2011, with the main objective is sustainable growth and effective business high - To complete paradigm shift from company to corporation specialized property - Directing the project is making the investment put into operation, promoting the efficient exploitation, with specific goals for each project as follows: Accelerate the implementation of key projects Project of New Urban Nam An Khanh - Focus completed the implementation of site clearance compensation, surveying, project planning, landscape architectural design, construction and oil structures in line with business plans of the Company - Complete construction of technical infrastructure Phase I; progress of technical infrastructure Phase II and 33 area, continue to implement business projects Project of expansion Nam An Khanh New Urban - Approving the master plan / 500, the investment project - Complete site clearance compensation work and payment of land use and development landscape design, infrastructure design and implementation of infrastructure investment phase I - Complete construction of 60% of items of infrastructure projects Project of Tien Xuan - Hoa Binh New Urban Area - Completion of the detailed planning control / 500 in line with the planning of Hanoi city - To improve procedures for early implementation of site clearance compensation, focus on the deployment of advance payment of compensation agreement for collection of land in 2011 reached about 100 of agricultural land - Search for a strategic partner investment and cooperation - business project to mobilize investment capital, soon to generate revenue for the project Project of La Van - Van Khe Housing - Complete the preparation of investment procedures and approval of the general space planning, design basis; investment projects - Complete the construction of technical infrastructure, construction of buildings, houses and villas adjoining; the buildings CT3B, CT2B, CT4 Pho Noi - Hung Yen Urban area: adjustments approved detailed plans / 500; pay land use fees; completed the first phase of construction projects and continue to implement business projects Project of Cantus resort in Cam Ranh Resort & Spa - Khanh Hoa: Complete detailed plan / 500, basic design, set up investment projects approved procurement plan and implementation technical assistance project construction Promotion of projects investment: River Lake Dam - Quang Nam Urban (600 ha); Project of central Thanh Hoa Urban (139 ha), project of Chau Giang - Ha Nam new urban(242 ); Phu Thai - Hai Duong urban area (82.69 ha); service center Hon Gom- Van Phong Economic Zone in Khanh Hoa (950 ha) and many other projects, to project power effectively choose implementation of investment Enhance business efficiency at the company and the member units SHAREHOLDERS INFORMATION Instructure of shareholder on February 25, 2011 Domestic shareholders Items Foreign shareholders Rate Quantity shares Shareholder of the Quantity (%) shares Rate (%) Total Quantity shares 36.300.750 36,3% 4.160.750 282.000 6.000 4,16% 0,028% 0% 0,006% 9.602.320 9,6% 1.071.195 1,07% 10.673.515 12.911.430 12,9% 29.460.629 29,46% 42.372.059 Quantity of Rate (%) 36.300.750 36,3% 4.160.750 282.000 4,16% 0,028% Rate State: Insider shareholders: 2.1 Boardof chairman 2.2 Board of Directors 2.3 Controlling Board 6.000 0,006% 2.4 Chief Accountant Other shareholders Personal Organization SHAREHOLDERS OWN UP 5% Shareholders Address 10,67% 42,37% shares Song Da Corporation G10 - Thanh Xuan Nam – Ha Noi 36.300.750 36.3% ... 10,00 Company Sudico Construction Joint Stock Company Central Sudico Joint Stock Company 10 Southern Sudico Joint Stock Company 11 Van Phong Joint Stock Company CAPITAL CONTRIBUTION TO THE COMPANY. .. transfering Song Da urban and industrial zones Investment and Development is a State enterprise belongs to the Song Da Corporation and operated under the certificate of business registration of Joint Stock. .. AFFILIATES Song Da Urban and Industrial Zones Investment and Development JSC Consulting Sudico JSC Viet Star securities JSC 15 135 51,29 22,22 Sudico construction material and investment joint stock