CECO Separate Financial Statement 2015 EN

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Corporate Information

Business Registration

Certificate No 0100103520 13 June 2015

The Company’s Business Registration Certificate has been amended 13 times, the most recent of

which is by Business Registration Certificate No 0100103520 dated 13 June 2015 The Business Registration Certificate was issued by Hanoi Department of Planning and Investment

Chemical Industry Engineering Joint Stock Company is formerly a state-owned enterprise member

of Vietnam National Chemical Corporation (currently known as Vietnam National Chemical Group) The Company has been converted from a state-owned enterprise to a joint stock company in accordance with Decision No 3493/QD-BCN dated 24 October 2005 of the Minister of Industry (currently known as Ministry of Industry and Trade) and operates under the initial Business

Registration Certificate No 0103010996 issued by Hanoi Department of Planning and Investment on

24 February 2006

Board of Management Mr Do Hien Ngang Chairman Mr Nguyen Manh Hung Member

Mr Dinh Duc Bo Member

Mr Nguyen Cong Thang Member

Ms Nguyen Hong Hanh Member

Board of Directors Mr Nguyen Manh Hung General Director

Mr Van Due Thang Deputy General Director

Mr Tran Dang Thai Deputy General Director

Mr Nguyen Cong Thang Deputy General Director

Supervisory Board Mr Nguyen Van Bang Head of the Board Ms Nguyen Thi Bich Member

Ms Nguyen Thi Kim Lien Member

Registered Office No, 21A, Cat Linh Street

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Statement of the Board of Directors

The Board of Directors of Chemical Industry Engineering Joint Stock Company (“the Company”) presents this statement and the accompanying separate financial statements of the Company for the year ended 31 December 2015

The Board of Directors is responsible for the preparation and fair presentation of the separate financial statements in accordance with Vietnamese Accounting Standards, the Vietnamese Accounting System for Enterprises and the relevant statutory requirements applicable to financial reporting In

the opinion of the Board of Directors:

(a) the separate financial statements set out on pages 5 to 34 give a true and fair view of the

unconsolidated financial position of the Company as at 31 December 2015, and of the

unconsolidated results of operations and the unconsolidated cash flows of the Company for the year then ended in accordance with Vietnamese Accounting Standards, the Vietnamese Accounting System for Enterprises and the relevant statutory requirements applicable to financial reporting; and

(b) at the date of this statement, there are no reasons to believe that the Company will not be able to pay its debts as and when they fall due

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46" Floor, Keangnam Hanoi Landmark Tower Telephone +84 (4) 3946 1600 72 Building, Plot E6, Pham Hung Street Fax +84 (4) 3946 1601 Me Tri, Tu Liem, Hanoi city Internet www.kpmg.com.vn The Socialist Republic of Vietnam

INDEPENDENT AUDITOR’S REPORT To the Shareholders

Chemical Industry Engineering Joint Stock Company

We have audited the accompanying separate financial statements of Chemical Industry

Engineering Joint Stock Company (“the Company”), which comprise the separate balance sheet

as at 31 December 2015, the separate statements of income and cash flows for the year then ended and the explanatory notes thereto which were authorised for issue by the Company’s Board of Directors on 25 March 2016, as set out on pages 5 to 34

Management’s Responsibility

The Company’s Board of Directors is responsible for the preparation and fair presentation of these separate financial statements in accordance with Vietnamese Accounting Standards, the Vietnamese Accounting System for Enterprises and the relevant statutory requirements applicable to financial reporting, and for such internal control as the Board of Directors determines is

necessary to enable the preparation of separate financial statements that are free from material

misstatement, whether due to fraud or error

Auditor’s Responsibility

Our responsibility is to express an opinion on these separate 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 separate financial statements are free of material

misstatement

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements The procedures selected depend on the auditor’s judgement, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error In making those risk assessments, the auditor considers internal control relevant to the Company’s preparation and fair presentation of the 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 Company’s internal control An audit also includes evaluating the appropriateness of accounting policies used and the

reasonableness of accounting estimates made by the Company’s Board of Directors, as well as

evaluating the overall presentation of the financial statements

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In our opinion, the separate financial statements give a true and fair view, in all material respects, of the unconsolidated financial position of Chemical Industry Engineering Joint Stock Company

as at 31 December 2015 and of its unconsolidated results of operations and its unconsolidated cash flows for the year then ended in accordance with Vietnamese Accounting Standards, the Vietnamese Accounting System for Enterprises and the relevant statutory requirements applicable

to financial reporting Other Matter

The separate financial statements of the Company for the year ended 31 December 2014 were

audited by another firm of auditors whose report dated 10 March 2015 expressed an unqualified

opinion on those statements KPMG Limited Vietnam yw Le Viet Hung

ei Auditor Registration Practicing Auditor Registration

‘ertificate No 0861-2013-007-1 Certificate No 0296-2013-007-1 Deputy General Director

Hanoi, 25 March 2016

MO

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Separate balance sheet as at 31 December 2015 ASSETS Current assets (100 = 110 + 130 + 140 + 150) Cash and cash equivalents Cash Cash equivalents

Accounts receivable — short-term

Accounts receivable from customers Prepayments to suppliers Other receivables Allowance for doubtful debts Inventories Inventories

Other current assets

Deductible value added tax Taxes and other receivables from

State Treasury Long-term assets

(200 = 210 + 220 + 250 + 260)

Accounts receivable — long-term Other long-term receivables Fixed assets Tangible fixed assets Cost Accumulated depreciation Intangible fixed assets Cost Accumulated amortisation Long-term financial investments Investments in subsidiaries

Equity investments in other entities Other long-term assets

Long-term prepaid expenses TOTAL ASSETS (270 = 100 + 200) Code 100 110 11 112 130 131 132 136 137 140 141 150 152 153 200 210 216 220 Form B 01- DN (Issued under Circular No 200/2014T1 “BTC

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Separate balance sheet as at 31 December 2015 (continued)

Form B 01— DN

(Issued under Circular No 200/2014/TT-BTC dated 22 December 2014 of the Ministry of Finance) 31/12/2015 1/1/2015 Code Note VND VND Reclassified RESOURCES LIABILITIES (300 = 310 + 330) 300 233,937,541,445 172,941,436,685 Current liabilities 310 232,234,276,968 171,575,662,592

Accounts payable to suppliers 311 13 39.843.309.942 54.118.321.592

Advances from customers 312 6(c) 144.698.456.527 3.009.125.360

Taxes payable to State Treasury 313 14 1.762.953.520 5,081,148,181 Payables to employees 314 1,582,508,705 4.385.669.413 Accrued expenses 315 15 39,615,221,160 14.094.447.479 Other payables — short-term 319 9,643,220 5,092,396 Short-term borrowings 320 16 4,450,380,800 90,847,986,711 Bonus and welfare funds 322 271,803,094 33,871,460 Long-term liabilities 330 1,703,264,477 1,365,774,093 Other payables — long-term 337 43,310,419 - Provisions — long-term 342 995,929,965 - Science and technology development fund 343 664,024,093 1,365,774,093 EQUITY (400 = 410) 400 54,214,987,295 55,142,407,327 Owners’ equity 410 17 54,214,987,295 55,142,407,327 Share capital 411 18 29,885,180,000 29,885,180,000

- Ordinary shares with voting rights 4lla 29,885, 180,000 29,885, 180,000

Investment and development fund 418 13,705,379,882 9,702,544,981

Retained profits 421 10,624,427,413 15,554,682,346

- Retained profits brought forward 42la 3,940,533, 145 2,211,899, 342

- Retained profit for the current year 421b 6,683,894,268 13,342, 783,004 TOTAL RESOURCES (440 = 300 + 400) 440 288,152,528,740 228.083.844,012 25 March 2016 Prepared by:

Tran Ngoc Son Dinh Duc Bo

General Accountant Chief Accountant

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Separate statement of income for the year ended 31 December 2015

Form B 02 - DN

(Issued under Circular No 200/2014/TT-BTC dated 22 December 2014 of the Ministry of Finance) 2015 2014 Code Note VND VND Revenue from sales of goods and provision of services 01 21 276,818,181/038 436,120,733,817 Revenue deductions 02 21 251,600,991 633,315,557 Net revenue (10 = 01 - 02) 10 21 276,566,580,047 435,487,418,260 Cost of sales 1I 22 234,567,706,445 388,396,085,540 Gross profit (20 = 10 - 11) 20 41,998,873,602 47,091,332,720 Financial income 21 23 1,717,337,865 1,053,227,841 Financial expenses 22 24 6,386,578,583 7,685,742.217

In which: Interest expense 23 6,237,247, 583 7,326,350,615 General and administration expenses 26 25 33,075,686, 146 25,090,321,083 Net operating profit

(30 = 20 +21 - 22 - 26) 30 4,253,946,738 15,368,497,261

Other income 31 26 5.522.214.816 1685.487.332

Other expenses 32 315,925,304 78.273.616

Results of other activities (40 = 31 - 32) 40 5,206,289,512 1,607,213,716

Accounting profit before tax

(50 = 30 + 40) 50 9,460,236,250 16,975,710,977

Income tax expense — current 51 28 1,980,930,982 3,632,927,973

Net profit after tax (60 = 50 - 51) 60 7,479,305,268 13,342,783,004 25 March 2016 Prepared by:

Tran Ngoc Son Dinh Duc Bo ý

General Accountant Chief Accountant eneral Director

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Separate statement of cash flows for the year ended 31 December 2015 (Indirect method)

Form B 03 - DN (Issued under Circular No 200/2014/TT-BTC dated 22 December 2014 of the Ministry of Finance)

2015 2014

Code Note VND VND

CASH FLOWS FROM OPERATING ACTIVITIES

Profit before tax 01 9,460,236,250 16,975,710,977

Adjustments for

Depreciation and amortisation 02 2,269, 186,732 2,971,885,990

Allowances and provisions 03 1.195.497.602 279.400.000

Exchange gains arising from revaluation of monetary items

denominated in foreign currencies 04 (110.028.544) (7.362.013)

Profits from investing activities 05 (1.725.290.838) (1,053,227,841) Interest expense 06 6.237.247.583 7.526.350.615 Operating profit before changes in 08 17,326,848,785 26,692,757,728 working capital Change in receivables 09 (19,194,522,982) 41.244.824.863 Change in inventories 10 (6,024,060,698) 1,163,942,634 Change in payables and other liabilities ll 147,898,552,736 (48,372,512,327) Change in prepaid expenses 12 (672,952,983) (178,649,615) 139,333,864,858 20,550,363,283 Interest paid 14 (6,123,884,907) (7.526.350.615)

Income tax paid 15 (3.089.744.758) (3.857.799.918)

Other receipts from operating activities 16 - 30.087.852.073 Other payments for operating activities 17 (2.893.507.666) (18.038.947.945)

Net cash flows from operating activities 20 127,226,727,527 21,215,116,878

CASH FLOWS FROM INVESTING ACTIVITIES

Payments for additions to fixed assets

and other long-term assets 21 (103,000,000) (580,727,272)

Proceeds from disposals of fixed assets 22 22,409,091 -

Payments for investments in other entities 25 (2,863,500,000) (1,245,000,000)

Receipts of interests and dividends 27 1,702,881,747 1,053,227,841

Net cash flows from investing activities 30 (1,241,209,162) (772,499,431)

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Separate statement of cash flows for the year ended 31 December 2015 (Indirect method - continued)

Form B 03—- DN (Issued under Circular No 200/2014/TT-BTC dated 22 December 2014 of the Ministry of Finance)

2015 2014

Code Note VND VND

CASH FLOWS FROM FINANCING ACTIVITIES

Proceeds from borrowings 33 145,236,149,693 260.797,253,782 Payments to settle loan principals 34 (231,633,755,604) (207.650.718.154)

Payments of dividends 36 (6.018.538.564) (5.964.015.300)

Net cash flows from financing activities 40 (92,416,144,475) 47,182,520,328

Net cash flows during the year 50 33,569,373,890 67,625,137,775

(50 = 20 + 30 + 40)

Cash and cash equivalents at the beginning of the year

Effect of exchange rate fluctuations on 61 110,028,544 7,362,013 cash and cash equivalents 60 5 79,091,489,368 11,458,989,580 Cash and cash equivalents at the end of the year (70 = 50 + 60+ 61) 70 5 112,770,891,802 79,091,489,368 25 March 2016 Prepared by:

General Accountant Chief Accountant General Director

The accompanying notes are an integral part of these separate financial statements

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(b)

Notes to the separate financial statements for the year ended 31 December 2015

Form B 09- DN

(Issued under Circular No 200/2014TT-BTC dated 22 December 2014 of the Ministry of Finance) These notes form an integral part of and should be read in conjunction with the accompanying

separate financial statements

Reporting entity Ownership structure

Chemical Industry Engineering Joint Stock Company (“the Company”) is incorporated as a joint

stock company in Vietnam Principal activities

The principal activities of the Company are: ® Construction of assorted houses;

® Construction of railway works and road works; ¢ Construction of public utility works;

¢ Construction of other civil works: construction of small and medium sized works for chemical industry, petrochemical industry and relevant industries (including overhaul, repair, reinforcement, corrosion resistant painting for structures and equipment; and supplying of materials, equipment; performing installation, calibration and technology transfer in electrical,

automatic and measurement and control areas for industrial and civil works; construction of

power works, power transmission lines and transformer stations);

e Trading real estate, land use rights of land owners, land users or land lessees; ¢ Manufacturing metal structures;

e Manufacturing barrels, storage tanks and other storage tools made of metal; e Mechanical fabrication, metal surface preparation and coating:

e Other manufacturing activities not elsewhere classified, details: production of chemical products

(except for chemicals prohibited by the Government); â Construction demolition services;

ô Site preparation;

® Installation of electrical systems;

¢ Installation of water supply and drainage systems, heating systems, and air conditioning systems;

đâ Management consultancy;

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(c)

(continued)

Form B 09- DN (Issued under Circular No 200/2014/TT-BTC dated 22 December 2014 of the Ministry of Finance) e Architecture and architecture related consultancy services Details: designing power transmission

lines and transformer stations up to 110K V; supervision for installation of electrical equipment,

power transmission lines and transformer stations up to 500KV; construction designing and planning; designing and installation of construction equipment, petrochemical equipment for industrial works; designing ventilation, heating and air conditioning systems for industrial works;

designing firefighting systems; designing and manufacturing equipment for chemical industry:

surveying and designing works for chemical industry, and industrial and civil works; consulting,

supervision and execution of construction works (only applicable when all capacity conditions

prescribed by law are met); consulting, supervision and execution of power transmission lines and transformer stations up to 35K V; consulting on preparation of investment projects, designing of power transmission lines and transformer stations up to 35KV; appraisal of investment projects, technical documents, total cost-estimation (in accordance with professional practice certificate), environmental impact assessment reports in chemical industry and relevant industries: consulting on construction investment and consulting, supervision and execution of power transmission lines and transformer stations (within the extent permitted under the professional practice certificate); consulting on warranty and maintenance for equipment in

chemical industry, petrochemical industry and other industries; inspecting, verifying and certifying quality of construction works in chemical industry, petrochemical industry and relevant

industries; management of construction investment projects:

e Research and experimental development on natural sciences and engineering Details:

conducting research and development on inventions, useful solutions, services and technology

transfer in chemical industry and environmental protection; research on application of advanced technology and equipment in designing works for chemical industry and environmental protection;

e Other professional, science and technology activities not elsewhere classified Details: environmental impact assessment reports in chemical industry and relevant industries; treatment of industrial wastes, environmental impact assessment; geographical survey, water resources survey; developing prevention and response plan for events of chemical hazards; preparation of environmental protection plans; preparation of environmental protection commitment forms: environment monitoring services; environment consultancy;

« Leasing out machines, equipment and other tangible tools;

¢ Other business supporting activities not elsewhere classified Details: investment and trade promotion; supplying of materials and equipment for industrial works; import-export the commodities that the Company is trading:

¢ Finance supporting activities not elsewhere classified Details: investment consultancy; ® Education supporting services; and

* Technical inspection and analysis Details: inspection and measurement of environmental indexes (air pollution, water pollution, etc.)

Normal operating cycle

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(d) (b) (c) (d) Notes to the separate financial statements for the year ended 31 December 2015 (continued) Form B 09- DN (Issued under Circular No, 200/2014/TT-BTC

dated 22 December 2014 of the Ministry of Finance) Company structure

As at 31 December 2015, the Company had | subsidiary (1/1/2015: | subsidiary) as listed in Note

12, | representative office in the Lao People's Democratic Republic and the following branches:

Branch Address

* Chemical Industry Engineering Joint Stock Company Phu Tho, Vietnam

Phu Tho Branch

¢ Chemical Industry Engineering Joint Stock Company Quang Ngai, Vietnam

Quang Ngai Branch

As at 31 December 2015, the Company had 251 employees (1/1/2015: 243 employees)

Basis of preparation Statement of compliance

These separate financial statements have been prepared in accordance with Vietnamese Accounting

Standards, the Vietnamese Accounting System for Enterprises and the relevant statutory requirements applicable to financial reporting The Company prepares and issues its consolidated financial

statements separately For a comprehensive understanding of the Company’s consolidated financial

position, its consolidated results of operations and its consolidated cash flows, these separate financial statements should be read in conjunction with the consolidated financial statements

Basis of measurement

The separate financial statements, except for the separate statement of cash flows, are prepared on the accrual basis using the historical cost concept The separate statement of cash flows is prepared

using the indirect method Annual accounting period

The annual accounting period of the Company is from | January to 31 December

Accounting and presentation currency

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(a)

Notes to the separate financial statements for the year ended 31 December 2015 (continued)

Form B 09 - DN (Issued under Circular No 200/2014/TT-BTC

dated 22 December 2014 of the Ministry of Finance)

Adoption of new guidance on accounting system for enterprises

On 22 December 2014, the Ministry of Finance issued Circular No 200/2014/TT-BTC providing guidance on Vietnamese Accounting System for Enterprises (“Circular 200”) Circular 200 replaces previous guidance on Vietnamese Accounting System for Enterprises under Decision No 15/2006- QD/BTC dated 20 March 2006 and Circular No 244/2009/TT-BTC dated 31 December 2009 Circular 200 is effective after 45 days from the signing date and applicable for annual accounting periods beginning on or after | January 2015

The Company has adopted the applicable requirements of Circular 200 effective from | January 2015

on a prospective basis The significant changes to the Company’s accounting policies are disclosed in Note 4(a) — Foreign currency transactions

Summary of significant accounting policies

The following significant accounting policies have been adopted by the Company in the preparation of these separate financial statements

Foreign currency transactions

Transactions in currencies other than VND during the year have been translated into VND at actual rates of exchange ruling at the transaction dates The actual rates of exchange applied to account for foreign currency transaction are determined as follows:

= Exchange rate applied to buying or selling foreign currency is the exchange rate stipulated in the currency exchange contract between the Company and the bank

= Exchange rate applied to recognize trade and other receivables is the foreign currency buying rate at the transaction date quoted by the bank through which the Company receives money from the customer or counterparty

= Exchange rate applied to recognize trade and other payables is the foreign currency selling rate

at the transaction date quoted by the bank through which the Company intends to make payment for the liability

= For asset acquisitions or expenses that are settled with immediate payment, the exchange rate

applied is the foreign currency buying rate at the transaction date quoted by the bank through which the Company makes payment

Monetary assets and liabilities denominated in currencies other than VND are translated into VND at actual rates of exchange ruling at the balance sheet date The actual rates of exchange applied to retranslate monetary items denominated in foreign currency at reporting date are determined as follows:

= For monetary assets (cash on hand and receivables): the foreign currency buying rate at the

reporting date quoted by the commercial bank where the Company most frequently conducts transactions Cash at bank and bank deposits are retranslated using the foreign currency buying rate of the bank where the Company deposits the money or maintains those bank accounts = For monetary liabilities (payables and borrowings): the foreign currency selling rate at reporting

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(b) () (ii) (d) (e) Notes to the separate financial statements for the year ended 31 December 2015 (continued) Form B 09-DN (Issued under Circular No 200/2014,TT-BTC

dated 22 December 2014 of the Ministry of Finance) Cash and cash equivalents

Cash comprises cash balances and call deposits Cash equivalents are short-term highly liquid

investments that are readily convertible to known amounts of cash, are subject to an insignificant risk

of changes in value, and are held for the purpose of meeting short-term cash commitments rather than for investment or other purposes

Investments

Investments in subsidiaries

For the purpose of these separate financial statements, investments in subsidiaries are initially recognized at cost which includes purchase price plus any directly attributable transaction costs Subsequent to initial recognition, these investments are stated at cost less allowance for diminution

in value An allowance is made for diminution in investment value if the investee has suffered a loss,

except where such a loss was anticipated by the Company’s management before making the investment The allowance is reversed if the investee subsequently made a profit that offsets the previous loss for which the allowance had been made An allowance is reversed only to the extent

that the investment’s carrying amount does not exceed the carrying amount that would have been

determined if no allowance had been recognised

Investments in equity instruments of other entities

Investments in equity instruments of other entities are initially recognized at cost which include

purchase price plus any directly attributable transaction costs, Subsequent to initial recognition, these investment are stated at cost less allowance for diminution in value An allowance is made for diminution in investment values if the investee has suffered a loss, except where such a loss was

anticipated by the Company’s management before making the investment The allowance is reversed

if the investee subsequently made a profit that offsets the previous loss for which the allowance had been made An allowance is reversed only to the extent that the investment’s carrying amount does not exceed the carrying amount that would have been determined if no allowance had been recognised

Accounts receivable

Trade and other receivables are stated at cost less allowance for doubtful debts

Inventories

Inventories are stated at the lower of cost and net realisable value Cost is determined on a weighted

average basis and includes all costs incurred in bringing the inventories to their present location and condition Cost in the case of finished goods and work in progress includes raw materials, direct labour and attributable manufacturing overheads Net realisable value is the estimated selling price

of inventory items, less the estimated costs of completion and selling expenses The Company applies the perpetual method of accounting for inventories

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(f) (0) (ii) (g) @ @ (h) Notes to the separate financial statements for the year ended 31 December 2015 (continued) Form B 09- DN (Issued under Circular No 200/2014/TT-BTC

dated 22 December 2014 of the Ministry of Finance) Tangible fixed assets

Cost

Tangible fixed assets are stated at cost less accumulated depreciation The initial cost of a tangible fixed asset comprises its purchase price, including import duties, non-refundable purchase taxes and any directly attributable costs of bringing the asset to its working condition for its intended use Expenditure incurred after tangible fixed assets have been put into operation, such as repair, maintenance and overhaul cost, is charged to the statement of income in the year in which the cost is incurred In situations where it can be clearly demonstrated that the expenditure has resulted in an

increase in the future economic benefits expected to be obtained from the use of tangible fixed assets

beyond their originally assessed standard of performance, the expenditure is capitalised as an additional cost of tangible fixed assets

Depreciation

Depreciation is computed on a straight-line basis over the estimated useful lives of tangible fixed assets The estimated useful lives are as follows:

= buildings and structures 5 —40 years = machinery and equipment 3 — 5 years

"office equipment 3-8 years

= motor vehicles 6— 10 years

Intangible fixed assets Land use rights

Land use rights are those granted by the State The initial cost of a land use rights comprises the value of the right and any directly attributable costs incurred in conjunction with securing the land use rights Indefinite land use rights are not amortised

Software

Cost of acquiring new software, which is not an integral part of the related hardware, is capitalised

and treated as an intangible asset Software cost is amortised on a straight-line basis over 3 to 5 years Long-term prepaid expenses

Tools and instruments

Tools and instruments include assets held for use by the Company in the normal course of business whose costs of individual items are less than VND30 million and therefore not qualified for recognition as fixed assets Cost of tools and instruments are amortised on a straight-line basis over

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(i) @) () a Notes to the separate financial statements for the year ended 31 December 2015 (continued) Form B 09- DN (Issued under Circular No 200/2014/TT-BTC dated 22 December 2014 of the Ministry of Finance)

Trade and other payables

Trade and other payables are stated at their cost

Provisions

A provision is recognised if, as a result of a past event, the Company has a present legal or constructive obligation that can be estimated reliably, and it is probable that an outflow of economic

benefits will be required to settle the obligation Provisions are determined by discounting the expected future cash flows at a pre-tax rate that reflects current market assessments of the time value

of money and the risks specific to the liability Warranties

The provision for warranties relates mainly to goods sold and services rendered during the accounting

period The provision is based on estimates derived from historical warranty data associated with similar products and services

Share capital Ordinary shares

Incremental costs directly attributable to the issue of shares, net of tax effects, are recognized as a

deduction from share premium Taxation

Income tax on the separate profit or loss for the year comprises current and deferred tax Income tax

is recognised in the separate statement of income except to the extent that it relates to items recognised

directly to equity, in which case it is recognised in equity

Current tax is the expected tax payable on the taxable income for the year, using tax rates enacted at the balance sheet date, and any adjustment to tax payable in respect of previous years

Deferred tax is provided using the balance sheet method, providing for temporary differences

between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for taxation purposes The amount of deferred tax provided is based on the expected

manner of realisation or settlement of the carrying amounts of assets and liabilities using the tax rates enacted or substantively enacted at the balance sheet date

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(m) (ii) (iii) () (n) (0) (p) Notes to the separate financial statements for the year ended 31 December 2015 (continued) Form B 09 — DN (Issued under Circular No 200/2014/TT-BTC dated 22 December 2014 of the Ministry of Finance)

Revenue and other incomes Construction contracts

Revenue from construction contracts is recognised in the statement of income in proportion to the

stage of completion of the contract when the outcome of a construction contract can be estimated reliably The stage of completion is assessed by reference to the value of work certified by the

customer following each check and acceptance No revenue is recognized if there are significant

uncertainties regarding recovery of the consideration due

Services rendered

Revenue from services rendered is recognised in the separate statement of income in proportion to

the stage of completion of the transaction at the balance sheet date The stage of completion is

assessed by reference to surveys of work performed, No revenue is recognised if there are significant uncertainties regarding recovery of the consideration due

Interest income

Interest income is recognized on a time proportion basis with reference to the principal outstanding and the applicable interest rate

Dividend income

Dividend income is recognized when the right to receive dividend is established

Operating lease payments

Payments made under operating leases are recognised in the statement of income on a straight-line basis over the term of the lease Lease incentives received are recognized in the statement of income as an integral part of the total lease expense

Borrowing costs

Borrowing costs are recognised as an expense in the year in which they are incurred, except where the borrowing costs relate to borrowings in respect of the construction of qualifying assets, in which

case the borrowing costs incurred during the period of construction are capitalized as part of the cost

of the assets concerned

Related parties

Parties are considered to be related to the Company if one party has the ability, directly or indirectly, to control the other party or exercise significant influence over the other party in making financial

and operating decisions, or where the Company and the other party are subject to common control or significant influence Related parties may be individuals or corporate entities and include close

family members of any individual considered to be a related party

Fo

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(continued)

Form B 09- DN (Issued under Circular No 200/2014/TT-BTC

dated 22 December 2014 of the Ministry of Finance) :

5 Cash and cash equivalents € 31/12/2015 1/1/2015 Ầ VND VND Cash on hand 778.844.903 853,978,343 Cash in banks 31,992,046,899 78,237,511,025 Cash equivalents 80,000,000,000 - 112,770,891,802 79.091.489.368

6 Accounts receivable from customers — short-term

(a) Accounts receivable from customers detailed by significant customer

31/12/2015 1/1/2015

VND VND

DAP No 2 Joint Stock Company 51,212,122,649 5,478,190,309

Lam Thao Fertilizers & Chemicals Joint Stock Company 6,198,690,007 5,184,566,151

Ha Bac Nitrogen Fertilizers & Chemical One Member 5,054,694,538 1.274.512.638

Limited Company

Hai Phong Thermal Power Joint Stock Company 3,935,178,765 2,892,869,630

Power Generation Corporation | 3,474,520,171 2,952,006,144

Pha Lai Thermal Power Joint Stock Company 1,674,434,907 8,549,606,933

Hanoi Housing Development and Investment

Joint Stock Company 22 655,920,878 1,619,920,878

Vietnam National Chemical Group 60,171,600 1,705,981,200

Agricultural Products and Materials JSC - 12,901,946,925

Vinacomin - Minerals Holding Corporation - 3.150.000.000 Other customers 16.249.184.745 15.247.537.232 88.514.918.260 60,957,138,040 (b) Accounts receivable from customers who are related parties 31/12/2015 1/1/2015 VND VND

DAP No 2 Joint Stock Company 51,212,122,649 5,478,190,309

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(c) (d) (a) (b) Notes to the separate financial statements for the year ended 31 December 2015 (continued) Form B 09— DN (Issued under Circular No 200/2014/TT-BTC dated 22 December 2014 of the Ministry of Finance)

Advances from customers 31/12/2015 VND Viet Lao Chemical and Rock Salt Co., Ltd 132,467,703,877 Other customers 12,230,752,650 144,698.456,527 Advances from customers who are related parties 31/12/2015 VND Viet Lao Chemical and Rock Salt Co., Ltd 132,467,703,877 Other receivables Other short-term receivables comprised: 31/12/2015 VND Advances to employees 4,104,582,709

Personal income tax receivable from employees 996,141,741

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10 Notes to the separate financial statements for the year ended 31 December 2015 (continued) Inventories Work in progress Tangible fixed assets Form B 09- DN (Issued under Circular No 200/2014/TT-BTC dated 22 December 2014 of the Ministry of Finance) 31/12/2015 VND 43.125.747.271 Cost 1/1/2015 VND 37.101.686.573

Buildings and Machinery and Office

structures equipment equipment Motor vehicles Total VND VND VND VND VND Cost Opening balance 7.481,623,299 3.281.317.133 744,217,272 7.696.917.785 19.204.075.489 Additions “ 43.000.000 60.000.000 - 103,000,000 Disposals - (158,978,182) - (217,864,640) (376.842.822) Closing balance 7,481,623,299 — 3,165,338,951 804,217,272 7.479.053.145 18,930,232,667 Accumulated depreciation Opening balance 5,867,623,835 2,898,531,780 339,131,153 4,277,842,168 13,383,128,936 Charge for the year 420,849,598 Disposals - 271,990,506 154,176,696 (158,978,182) - (217,864,640) 833,839,956 1,680,856,756 (376,842,822) Closing balance 6.288.473.433 3.011.544.104 493,307,849 4,893,817.484 14,687,142,870 Net book value 1.613.999.464 1.193.149.866 Opening balance Closing balance 382,785,353 153,794,847 405,086,119 310,909,423 3.419.075,617 2.585.235.661 4.243.089.797 5.820.946.553 Included in tangible fixed assets were assets costing VND8,774 million which were fully depreciated as of

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11

Form B 09- DN

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18 19 20 Notes to the separate financial statements for the year ended 31 December 2015 (continued) Form B 09 —- DN

(Issued under Circular No 200/2014/1T-BTC dated 22 December 2014 of the Ministry of Finance) Share capital The Company’s authorised and issued share capital are: 31/12/2015 1/1/2015 Number of Number of shares VND shares VND Authorised and issued share capital Ordinary shares 2,988,518 29.885.180.000 2.988.518 — 29,885,180,000 Shares in circulation Ordinary shares 2,988,518 29.885.180.000 2.988.518 — 29,885,180,000

All ordinary shares have a par value of VND10,000 Each share is entitled to one vote at meetings

of the Company Shareholders are entitled to receive dividend as declared from time to time All

ordinary shares are ranked equally with regard to the Company’s residual assets In respect of shares

bought back by the Company, all rights are suspended until those shares are reissued Dividends

The General Meeting of Shareholders of the Company on 20 April 2015 resolved to distribute dividends amounting to VND5,977 million from the net profit after tax of 2014 (2014: VND5,977

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21 22 23 Notes to the separate financial statements for the year ended 31 December 2015 (continued) Form B 09— DN (Issued under Circular No 200/2014/TT-BTC dated 22 December 2014 of the Ministry of Finance)

Revenue from sales of goods and provision of services

Total revenue represents the gross value of goods sold and services rendered exclusive of value added

tax Net revenue comprised: Total revenue = Engineering, Procurement, Construction = Designing consultancy = Others Less revenue deductions = Sales allowances Net revenue Cost of sales = Engineering, Procurement, Construction = Designing consultancy = Others Financial income Interest income from deposits Dividends

Foreign exchange gains

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(continued)

Form B 09— DN

(Issued under Circular No 200/2014/TT-BTC dated 22 December 2014 of the Ministry of Finance) 24 Financial expenses 2015 2014 VND VND Interest expense 6,237,247,583 7,526,350,615

Foreign exchange losses 149,331,000 158,599,432

Other financial expenses - 792,170 6,386,578,583 7.685.742.217 25 General administrative expenses 2015 2014 VND VND Salary expenses 12,85 1,724,755 9,891,709.901 Office equipment 89,168,029 109,974,955

Depreciation and amortisation 1,243,981,810 1,263,683,250

Taxes, charges and fees 534,227,305 343.399.409

Allowance for doubtful debts 199,567,637 279,400,000 Insurance expenses 1,273,631,210 991,598,857 Outside services 16,883,385,400 12,210,554,711 33,075,686,146 25,090,321,083 26 Other income 2015 2014 VND VND

Gain from disposals of fixed assets 22,409,091 1,685,487,332

Accounts payable to suppliers forgiven 5,499,805,725 -

5,522,214,816 1,685,487,332

30

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(continued)

Form B 09 - DN (Issued under Circular No 200/2014/TT-BTC

dated 22 December 2014 of the Ministry of Finance) 27 Production and business costs by element

2015 2014

VND VND

Raw material costs included in production costs 185,024,029,413 302.265.207.600

Labour costs and staff costs 48.147.003.361 61.544.983.347

Depreciation and amortisation 2.269.186.732 2.971.885.990 Outside services 38,601,073.314 45,985,910,234 28 Income tax (a) Recognised in the separate statement of income 2015 2014 VND VND Current tax expense Current year 1,964,646,302 3,632,927,973 Under provision in prior years 16,284,680 - 1,980,930,982 3,632,927,973 (b) _—_ Reconciliation of effective tax rate 2015 2014 VND VND

Accounting profit before tax 9,460,236,250 16,975,710,977

Tax at the Company’s tax rate 2,081,251,975 3.734.656.415

Non-deductible expenses 75,124,327 44,351,558

Tax exempt income (191,730,000) (146,080,000)

Under provision in prior years 16,284,680 -

1,980,930,982 3,632,927,973

(c) Applicable tax rates

The Company has an obligation to pay the government income tax at the rate of 22% of taxable

profits for 2014 and 2015 and this rate will be reduced to 20% from 2016

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(continued)

Form B 09- DN (Issued under Circular No, 200/2014/TT-BTC

dated 22 December 2014 of the Ministry of Finance) Significant transactions with related parties

In addition to related party balances disclosed in other notes to the separate financial statements, the Company had the following significant transactions with related parties during the year: Transaction value 2015 2014 VND VND Vietnam National Chemical Group Dividend 3,153,636,000 3,153,636,000 Sale of services 2,552,195,173 3,036.47 1,367 Vietnam Machinery and Equipment for Chemical industry JSC Purchase of goods 15,020,591,020 35.625.421.796 Danang Rubber Joint Stock Company Sale of services 1,622,240,000 - DAP No 2 Joint Stock Company Sale of services 114,970,318,928 307,678,748,303 Viet Lao Chemical and Rock Salt Co,, Ltd, Su Sale of services 73,777,671,150 8,447,263,631 ae cON Lam Thao Fertilizers & Chemicals Joint Stock Company AME NA Sale of services 8.202.873.312 7,299,263.369 KP

Ha Bac Nitrogen Fertilizers & Chemical One oe

Member Limited Company `"

Sale of services 7,850,869,836 24,239,212,128

Viet Tri Chemical Joint Stock Company

Sale of services 2.639.664.144 804.674.546

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30 Notes to the separate financial statements for the year ended 31 December 2015 (continued) Ninh Binh Nitrogenous Fertilizer Limited Company Sale of services Vietnam Apatite Limited Company Sale of services Orient Manufacture & Trading Joint Stock Company Sale of services Ninh Binh Nitrogenous Fertilizer Project Management Unit Sale of services South Basic Chemicals Joint Stock Company Sale of services

Industrial Gas and Welding Electrode Joint Stock Company Sale of services Members of Board of Directors Compensation Members of Board of Management Compensation Post separate balance sheet event Form B 09 - DN

(lssued wnder Circular No 200/2014/TT-BTC dated 22 December 2014 of the Ministry of Finance) Transaction value 2015 VND 453,700,000 2,401,644,440 336,000,000 2014 VND 286,299,359 1,254,140,046 410,916,394 51,828,182 120,000,000 139,897,900 2,286,307,620 300,000,000

On 16 December 2015, the Company’s Board of Management issued Decisions No 386/QD-CECO, No 387/QD-CECO and No 388/QD-CECO on dissolution of Hai Phong branch and incorporation

of Chemical Industry Technical Services Joint Stock Company; dissolution of Phu Tho branch and

incorporation of CECO Hanoi Joint Stock Company; and dissolution of Hanoi branch and merging this branch into the Company’s office

Charter capital of Chemical Industry Technical Services Joint Stock Company and CECO Hanoi Joint Stock Company is VND6 billion each, 51% of which is owned by Chemical Industry Engineering

Joint Stock Company These Decisions take effects from | January 2016

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-31

Form B 09 - DN

(Issued under Circular No 200/2014/TT-BTC dated 22 December 2014 of the Ministry of Finance) Corresponding figures

As described in Note 3, the Company adopted Circular 200 effective from | January 2015 As a result, the presentation of certain financial statement captions has been changed Certain corresponding figures for the year ended 31 December 2014 and as at | January 2015 have been reclassified to conform to the requirements of Circular 200 in respect of financial statement presentation A comparison of the amounts previously reported and as reclassified is as follows:

Separate balance sheet 1/1/2015 1/1/2015 (as reclassified) (as previously reported) VND VND Other receivables 11,235,987,774 2.136.401.827

Other current assets - 9,099,585,947

Other long-term receivables 6,401,525,607 -

Other long-term assets : 6,401,525,607

Accounts payable to suppliers 54,118,321,592 49.675.234.244

Other payables — short-term 5,092,396 4,448,179,744 Financial reserve - 1,839,445,970 Investment and development fund 9,702,544,981 7.863.099.011 25 March 2016 Prepared by: i

General Accountant Chief Accountant

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