annual report cmc 08

CMC CORPORATION Annual Report 2008 Contents CHAIRMAN' S MESSAGE REPORT ON ANNUAL OPERATION RESULTS The Chairman' s Report The CEO' s report Audited financial statements 2 BUSINESS LINES Group structure by area Affiliates CMC System Integration Company ( CMC SI) CMC Software Solutions Company ( CMC Soft) CMS Computers Company ( CMS) CMC Distribution Company ( CMC Distribution) CMC Telecommunications Service Company ( CMC Telecom) 6 Segmenta CMC Joint Venture ( CMCSE) CMC Information Security Company ( CMC InfoSec) 6 CMC Telecommunications Infrastructure Company ( CMC TI) Other investment activities Technical infrastructure Strategic partnership Education CORPORATE GOVERNANCE Activities of the Board of Directors Shareholder information 7 7 OTHER ACTIVITIES Activities of the Board of Supervision Organizational structure Organization and human resources 8 major events in 0 8 CMC' s social and charity activities in 0 8 History of development Affiliate directory th The anniversary of CMC Group CHAIRMAN'S MESSAGE It is indeed a pleasure for me to act on behalf of the Board of Directors to announce that we have attained the business targets for 0 with a sales figure of , billion VND, equal to % of the planned amount, up by % against the previous year, and profits before tax of 1 billion VND, equal to % of the planned figure, up by % against the previous year This success is even more significant considering the economic and financial volatility which has adversely impacted the ICT market as well as the corporate expenditure structure In 0 , CMC Corp achieved strong growth of corporate proportion and market share in Information Technology and Telecommunications The strategy set in 0 with a focus of resources on the core businesses has proved to be well justified We have just managed to avoid difficulties as a result of the financial, stock and real estate markets CMC' s IT segment has been developing rapidly and steadfastly with the growth rates of integration service and software service being % and % , respectively This fast and sustainable development is based on professional services and products with increasingly high content of intecllect With the advent of CMC Telecommunications Infrastructure which is granted a license to carry out business in telecommunications infrastructure by the prime Minister and the Ministry of Information and Communications, CMC Corp has made a secure preparation for its development strategy of telecmmmunications and internet services in the future In the electronics business, CMC is still in the process of identifying the best opportunities The governance and development of the Group are based on corporate governance, financial governance, HR governance, legislation, communication, and intecllectual property, all of which are constantly completed In 0 , despite the numerous difficulties and challenges, we still set a target for the growth of revenues and profits at % and % , respectively The basic investments as part of the preparation for the IT platform such as human resources, research and development, new services as well as investment in telecommunications infrastructure will be continued in order to sharpen longterm competitive edges This decision of ours is based on positive forecast of the local IT, telecommunications and Internet market The strategic plan for 0 presents a challenge to the Board of Directors and Board of Management It, however, will bring great opportunities for major development and create an impetus for the year as well as subsequent years when the global economy recovers and the country experiences stronger growth On behalf of the Board of Directors, I would like to extend my sincerest thanks to the distinguished shareholders, customers, partners and employees who have made their contributions to the present success of CMC CHAIRMAN OF THE BOARD OF DIRECTORS HA THE MINH CMC ANNUAL REPORT 2008 REPORT ON ANNUAL OPERATION RESULTS 2008 The Chairman's Report The CEO's report Audited financial statements CMC Corp enjoyed a stable and secure development in 0 , paving the way for the successful implementation of the strategy for Targets of revenues and profits were satisfactorily achieved while strategic and key products and services were launched according to plan Supported by a wellknown trademark, powerful financial capacity, sophisticated infrastructure, highly qualified staff and the enormous determination and concentration of the leaders, we are fully convinced of the fulfillment of the targets set for 0 as well as the strategy until REPORT ON ANNUAL OPERATION RESULTS ‘2008 REPORT BY THE CHAIRMAN OF THE BOARD OF DIRECTORS MACRO ENVIRONMENT AND BUSINESS OPPORTUNITIES Socioeconomic situation in 0 The local economy in 0 saw a great deal of complicated and unforeseeable developments, the major cause of which was the global financial crisis and economic downturn, coupled with local problems including high inflation, variable exchange rates, and declining stock market These led to a dramatic fall in finance for local businesses, followed by slumping exports, increasing unemployment, etc The local IT & Telecom industry in 0 All the factors stated above resulted in reductions in investments by businesses, slashing of public investments and limited consumption All these affected the IT & telecom market remarkably According to a report by the Minsitry of Industry and Trade, the export value of electronics, computers and accessories as of December 0 was bn USD, up by % against 0 , ranking seventh out of the commodity groups/ commodity category with an export value of over bn USD; import value was bn USD, up by % against 0 The local telecom market has been growing rapidly thanks to the rigorous development of the mobile and telecom sector The number of new subscribers in 0 was estimated at million, raising the total number of subscribers of the country to million by the end of December 0 ( million of which were fixed phone subscribers) , up by % against the end of 0 The Internet market continued its growth drive with the number of new subscribers in 0 being estimated at million, up by % against 0 The total number of Internet subscribers as of the end of December 0 was million, up by % against the same period of the previous year The number of Internet users estimated at the end of 0 was million, up by % against the same period of 0 , which means a density of % with the number of broadband subscribers being million As a result of the dramatic increase of telephone and Internet subscribers, the business performance of the post and telecom industry continued the robust hike The total net revenues from post and telecom in 0 were estimated at thousand billion VND, up by % against 0 The IT industry saw plenty of developments with the total revenues estimated at billion USD with a growth rate of the whole industry amounting to over % Contrary to the forecast released in the later half of 0 and early 0 of the consumption trend for highclass IT products, it was standard products that attracted consumers the most The government market was adversely affected by the delays in the implementation of the government' s key programs The corporate market still secured growth as a result of businesses' demand for improvement of competitiveness by IT tools CMC ANNUAL REPORT 2008 REPORT BY THE CHAIRMAN OF THE BOARD OF DIRECTORS MAJOR PERFOMANCE INDICATORS AND CMC currently has affiliates operating in software services A COMPARISON WITH PLANNED including CMC Soft, CMC InfoSec, CMC Segmenta, and CMC SI TARGETS FOR 0 The capacity of software development has been enhanced to meet international standards This is supported by the obtaining Revenues and profits in 0 of the internation certificates for software quality assurance CMMi and ISO 0 , which are an important passport for Depsite the economic turmoil that resulted in negative impacts on cooperation with major international partners The staff sizing in the ICT market as well as the corporate expenditure structure, the this field was 0 , up by % and revenues were billion welloriented and timely of the Board of Directors, the flexiable VND, almost twice as much as that of 0 Multiple software but drastic administration of the Board of Management and the processing contracts have been signed together with longterm untiring efforts of the employees, CMC has managed to go strategic partnership agreements through the year 0 with outstanding results The year 0 was a challenging one for the computer All the affiliates recorded dramatic growth of revenues and manufacturing business of local players As part of the effort to profits compared with 0 and fulfilled the targets set at the maintain sales and profits, CMC promoted the sale of laptops, beginning of the year to an encouraging extent: especially for individual users, in addition to the traditional desktops The total revenues of the Group were , billion VND, attaining % of the year' s planned figure, an increase of % The year 0 was one of success for CMC Distribution with total against 0 Out of which, the growth of traditional areas revenues of billion VND, thanks to which CMC Distribution nd including System Integration, Software and Computer established itself as the best performing affiliate of the Group Manufacturing and Assembly was % , % and % , in terms of revenues respectively Investment in the telecom service is being carried out as per the In parallel with the growth of revenues, CMC' s pretax profits in adopted schedule with Blue~ services being completed 0 were 1 billion VND, achieving % of the year' s Blue~Net, Blue~Data services and the country' s most modern target, up by % compared with the same period of the data center were commissioned in the year Investments in CMC previous year, and the average EPS was , VND TI' s future telecom infrastructure and cooperation with Vietnam' s leading infrastructure suppliers will ensure the supply of broadCMC paid billion VND in taxes and other contributions to the band, highquality package telecom services to clients Although State Budget the telecom service has not yielded substantial profits in the short term, its is expected to assure a longterm competitive edge in the An overall assessment of CMC' s business performance future in various fields A number of other ongoing investments which have not brought In traditional business fields such as system integration, software in profits for the Group include the corporate office building service, computer manufacturing and distribution of IT products, ( expected to be commissioned by July 0 and Bao Viet Bank CMC enjoyed extraordinary growth in terms of market share and scale and solidified its standing in the industry CMC' s system integration business continued to launch many professional products and services with high technological content in the financial, banking and telecom market beside the maintenance of a satisfactory development in the government, big corporation and education segments In particular, revenues and market share in the southern region and in the financial and banking market saw an impressive growth Relations with strategic partners for technology and products have been properly promoted CMC ANNUAL REPORT 2008 REPORT BY THE CHAIRMAN OF THE BOARD OF DIRECTORS MAJOR STRATEGIC ACTIVITIES BY THE OTHER GOVERNING ACTIVITIES OF THE BOARD OF DIRECTORS IN 0 BOARD OF DIRECTORS The Board of Directors, Board of Management and functional Held the Annual General Meeting, the extraordinary committees of the Group and those of the affiliates continued Shareholders' Meeting and permanent activities of the Board of their strategic planning and explored opportunities to develop Directors in 0 Organized governing activities of affiliates in new products and services in both existing and new fields of which CMC holds the controlling stake: CMC Telecom, CMC TI, operation in accordance with the development orientations CMC InfoSec, and CMC Segmenta Participated in governing reportedto the Shareholders' Meeting in early 0 : activities of other affiliates such as Bao Viet Bank, Bac Ha University January 0 : Formation of Segmenta CMC joint venture with the Dennish Segmenta The joint venture' s duties are to Carried out share issues to CMC Corp ' s existing shareholders supply coporate governance advisory personnel to the including: European market By entering into this joint venture, CMC Issue , 0 , 0 shares as distribution of dividends for 0 to shows its determination to embark on the highquality existing shareholders at a ratio of :1 outsourcing market in which systematic skill training is provided by European partners Issue , , 7 bonus shares to existing shareholders, backed by share premium, at a ratio of :6 May 0 : Formation of CMC InfoSec, specialized in network security and information security products and services After a th Carried out one issue of preferred shares for employees of CMC period of successful trial run, on October 0 , CMC Corp with a total number of , InfoSec officially introduced its new antivirus software in two versions: CMC Antivirus ( freeofcharge for individual users) Formulated and issued bylaws for the Group and affiliates, and CMC Internet Security ( chargeable, intended for corporate including: users) Bylaws on Finance, Investment, KPI policy, and employees' September 0 : Formation of CMC Telecom Infrastructure income; Joint Stock ( CMC TI) with the State Corporation for Invesment of Capital ( SCIC) as partner CMC Telecom contributed % of Program of Preferred Share Issue ( optional) for employees the charter capital Appointed senior executies for affiliates th December 1 0 , Bao Viet Joint Stock Commercial Bank was licensed and commenced operation with charter capital of Formulated the Prospectus and documents necessary for listing , 0 billion VND CMC was one of the three founding in 0 shareholders, contributing % of the charter capital PROSPECTS AND PLAN FOR 0 The Shareholders' Meeting in 0 approved the contribution of funds for formation of the CMC Financial Information Joint Market Stock Company ( Systex) and Hanel Hightech Electronics The year 0 is certainly one of challenges for the local Production Joint Stock Company Under the authorization of the economy in general and the IT market in particular The Shareholders' meeting, the Board of Directors carried out tasks economic downturn and financial crisis will exert a significant related to the project including feasibility study, discussions and impact on the Vietnamese economy In 0 , by adopting negotiations with the partner During this process, however, stimulus policies as well as other measures to curb the negative both parties failed to agree on the detailed business scheme as impacts of inflation; the Government will be able to minimize the well as the efficiency of investment The Board of Directors, in risks resulting from unexpected fluctuations of the local currency the interest of the Group and shareholders, decided to drop and unanticipated regulatory policies as it was the case in these investments 0 Early 0 , the Prime Minister issued an official letter The local IT market, however, remains an emerging one with authorizing CMC TI to establish network infrastructure and great demands from businesses, institutions and individuals supply fixed telecom and Internet services CMC ANNUAL REPORT 2008 OTHER ACTIVITIES Organization and Human resources The 15th anniversary of CMC Corp 16 major events in 2008 CMC's social and charity activities in 2008 History of development Affiliate Directory OTHER ACTIVITIES Organization and human resources ‘2008 Human resources is the key factor for CMC Corp ' s development Therefore, i2 0 , CMC continued to improve HR policies and remuneration packages so as to motivate and encourage employees as well as to attract talents from outside KPI MECHANISM AND THE INCOME POLICY: In order to successfully carry out the vision and development strategy until , the Group initiates the building of a strategic management system using Balanced Score Card ( BSC) as the implementation and evaluation tool and applied a uniform management and HR policy in the entire Group Together with the basic principles of assigning targets to sections and individuals, determination of fixed salary, bonus salary and bonus fund, the KPI mechanism and income policy ensure a closed circle which promotes the sustainable development of the Group Rank system and employees' core quaification Annual assessment Fixed salar of employee' s skills Corporate objective Section target Individual target Productivity salary and business bonus Job assignment, periodical evaluation, and annual job performance evaluation ESOP MECHANISM: Build a policy of issuing shares to develop and promote employees' attachment, attract talents and offer bonuses to individuals of high business efficiency This policy is deisgned to reward job performance and serve as an incentive for the sake of employees' longterm committment to the Group Proper attention has also been paid to internal activities and corporate culture so as to create a comfortable working environment while assuring a sense of responsibility, promoting creativity and unity within the Group 78 CMC ANNUAL REPORT 2008 Organization and human resources ‘2008 GROWTH RATE OF HUMAN RESOURCES GRAPH OF CMC' S HR GROWTH FROM 0 TO 0 (Person) 2000 1800 1600 1400 1200 1000 800 600 400 200 Year 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 (Prepare) STRUCTURE OF HR QUALIFICATIONS PIECHART OF HR QUALIFCATIONS IN 0 87% Master and Doctorate University and College Others 5% 8% 79 CMC ANNUAL REPORT 2008 OTHER ACTIVITIES CMC CORPORATION ACHIEVEMENTS 1993 – 2008 YEAR The year 0 was one of significance for CMC Corp It marked the Group' s1 th anniversary with a great deal of devotion, creativity and success Incorporated in 9 as a smallsized business with numerous difficulties in terms of resources; CMC had to identify its own path and specific targets and worked hard toward such targets Therefore, CMS' s present success not only presents materialized aspirations but also speaks volume for the power of unity and determination Beginning with the capacity basis of a IT product business, CMC has now acquired the status of a leading IT group in Vietnam with affiliates and joint ventures operating in IT and telecom fields with impressive growth: Revenues in 0 were , bn VND, o times as much as those in the year of incorporation; Profits in 0 were over 1 bn VND, up by almost 0 times compared with the year of incorporation; The human resources in 0 consist of over , 0 people, over times as many as in the year of incorporation; Owners' equity in 0 was bn VND, over , 0 times as much as in the year of incorporation; Over the past years, every piece of success has served as a foundation for CMC to strive for bigger achievements The development strategy until and the longterm strategy until 2 , backed by the desire to master the digital future, will continue to be the target for CMC to conquer on the foundation of today 80 CMC ANNUAL REPORT 2008 16 OTHER ACTIVITIES major events in 2008 Issuing of ISP license to CMC Telecom Service Company On February th 0 , the Minister of Information and communication Le Doan Hop paid a visit to CMC telecom and handed the ISP ( Internet Service Provider) license to the Company Hop highly valued the achievements of CMC in the past years and gave his directions according to which CMC Corp was to continue making investments and enhancing the ITTelecom development capacity; to adopt breakthrough policies in order for the Internet industry to develop rapidly, vigorously and more wellorientedly and to bring further practical benefits to the local communities The Ministry of Information and Communication would also coorodinate with other Government authorities to adopt appropriate policies so as to facilitate CMC to develop and operate efficiently The only local computer brand attached to National Trademark On April th 0 , the Government of the Socialist Republic of Vietnam announced the businesses and products selected to attach the National Trademark CMS was honorably included in this list Introduction of the SegmentaCMC Joint venture On April 2 nd 0 , CMC Corp officially launched the Segmenta CMC Joint venture ( SECMC) This is a partnership between CMC Corp and Segmenta A/ S, Denmark' s leading SAP' s ERP solution provider with the world' s largest market share CMC' s proportion of capital in the joint venture is % SECMC is intended to provide ERP solution advisory service both in Vietnam and abroad CMC aims to occupy % of the SAP market share in the local market in the years to come 81 CMC ANNUAL REPORT 2008 16 MAJOR EVENTS IN 2008 CMC Distribution becomes HP' s distributor of PC, Laptop, and LCD On April th 0 , CMC Distribution formally became the distributor of HP' s leading PCs including HP Notebook, HP Desktop, HP server, and HP LCD After months of operation, CMC Distribution was recognized as HP' s fastestevergrowing distributor Other major firms such as Acer, Sony Ericsson, Com, and Sony Projector also see CMC Distribution as a prospective good performer CMC Corp ' s1 th anniversary In May 0 , CMC Corp marked its th anniversary with a series of activities and events including emulation movements within the Group; organization of corporate culture activities; creation of a beneficial playing field to encourage initiatives and improvement of employees' spiritual life Typical among these activies was the symbolic ceremony of achievement reporting at Uncle Ho' s Temple in Ba Vi National Park Tan Linh Commune Ba Vi Ha Tay which was attended by over 0 party members and youths representing over , 0 employees of the Group At the site, CMC employees contributed funds to build the Youth Work ( A rest house and a Leisure house) so as to show the respect and gratitude to the great Uncle Ho CMC receives the Prime Minister' s Certificate of Merit On May th 0 , CMC Corp was honorably granted the Prime Minister' s Certificate of Merit for the Group as as whole and for CEO Nguyen Trung Chinh for the achievements made from 0 to 0 which contributed to the national construction and defence CMC Soft was elected as one of Vietnam' s top software businesses On July th 0 , CMC Soft was elected as one of Vietnam' s top software businesses in 0 It won gold medals for IT and Telecom for eDocman, IU, iLib software The award was given by HCM City Informatics Association 82 CMC ANNUAL REPORT 2008 16 MAJOR EVENTS IN 2008 CMC Telecom joins as one of the founders of the Asia Data Center Alliance In July 0 , CMC Telecom became Vietnam' s first telecom business to join the Asia Data Center Alliance as one of the founders This event marked the first step of CMC Telecom in its bid to expand to the international market and integrate into the global economy Launching of CMC Telecom' s Data Center On July th 0 , CMC Telecom launched the international standard data center using the trademark Blue~Data including such services as: lease of equipment/ server sites, lease of specialized servers, system administration, connection service and backup storage center Blue~Data is capable of meeting businesses' highest demands, especially those involved in finance, banking, insurance, and local ones which wish to expand business abroad, multinational corporations and Vietnambased foreign firms, etc 10 CMC Corp wins the Sao Vaâng Àêët Viïåt ( Gold Star of Vietnam) Award 0 On September nd 0 , winning the Sao Vaâng Àêët Viïåt Award, CMC was recognized as one of Vietnam' s successful brands and one which attains the internation competitiveness level This was the second consecutive time CMC had enjoyed such honour CMS was also included in the Top 0 businesses of Gld Star of Vietnam and won the Award for the th time 83 CMC ANNUAL REPORT 2008 16 MAJOR EVENTS IN 2008 11 CMC serves as the major sponsor for the first national ITTelecom award in Vietnam On September rd 0 , CMC Corp became the major sponsor of the Vietnam ITTelecom Award 0 ( ICT Awards 0 ) On this occasion, CMS and CMC Soft received important awards of the event including the Best Vietnamese Branded Computer and the Fastestgrowing Software Business 12 CMC Corp enters into the largestever contract for implementation of Oracle ERP On September st 0 , CMC entered into a contract with INDRA, Spain' s and Europe' s leading IT firm, to facilitate several items in the IFMMIS project Modernization of financial management and supplies mamanegement for Electricity of Vietnam ( EVN) in which INDRA serves as the general contractor for EVN This is the largestever ERP project in Vietnam a total value of mil VND and is to be implemented in 2 months CMC' s workload in the project makes up about % of the total work volume CMC' s two affiliates which are CMC SI and CMC Soft were directly involved in the signing of the contract and the implementation of committments with INDRA 13 CMS is awarded Labor Order rd Class from the Government of the Socialist Republic of Vietnam On October th 0 CMS was honorably awarded Labor Award rd Class for its achievements in national construciton and defence 84 CMC ANNUAL REPORT 2008 16 MAJOR EVENTS IN 2008 14 Introduction of CMC Antivirus On October th 0 , CMC InfoSec officially launched the antivirus and computer protection product range CMC Internet Security the version for corporate customers and CMC Antivirus the free version for individual users As of December th 0 , nearly million turns of users had downloaed CMC Antivirus for use This event was included by the Ministry of Information and Communication in the " Top ten events of Vietnam' s network security 0 " and ranked the th out of the Top events of Vietnam' s IT industry 0 nominated by ICT Press Club 15 CMC becomes a founding shareholder of Bao Viet Bank On December 1 th 0 , the State Bank of Vietnam isued the license N0 / GPNHNN for incorporation and operation of Bao Viet Joint Stock Commercial Bank with a charter capital of , 0 bn VND CMC is one of three founding shareholders with % of the charter capital, second to Bao Viet Group ( % ) 16 CMC Soft obtains Certificate CMMi level and Information Security Certificate ISO 0 In November 0 , CMC Soft obtained Certificate CMMi level and Information Security Certificate ISO 0 Under Certificate CMMi , CMC Soft' s products and services are provided to customers according to internationa standard processes On this basis, customers may totally trust in the Company' s product quality With the ISO 0 standard, CMC Soft is provided with a model for establishment, implementation, operation, monitoring, review, maintenance and improvement of the information security management system As such, information can be protected to secure the proper operations of the Company in all circumstances The two events mentioned above can be regarded as CMC Soft' s significant steps which create a foundation for promoting the Outsourcing service to foreign markets and enhancing corporate competiveness 85 CMC ANNUAL REPORT 2008 OTHER ACTIVITIES SOCIAL AND CHARITY ACTIVITIES IN 2008 The year 0 marked the Group' s unceasing Contributed to social charity activities with great compassion efforts to perform social and charity obligations Coordinated with Vietnam Red Cross to provide computers to toward the community, contributing to the students of Ethnic Boarding School in Chu Se District Gia Lai development of the whole country with effective Province and pratical activities: Participated in the blood donation program initiated by the Youth Sponsored social activities as well as IT education and training for Union young people; help them develop and affirm their talent the Youth Work ( A rest house and a Leisure house) Uncle Ho' s Provided all the server system and computer equipment for the Temple in Ba Vi National Park Tan Linh Commune Ba Vi Ha Tay th International Physics Olympiad ( IPhO 0 ) hosted by the so as to show the respect and gratitude to the great Uncle Ho Vietnamese Ministry of Education and Training with a total value of over 0 mil VND Assume life support of mothers of war martyrs in Hien Ninh Commune, Soc Son Dist , Hanoi Provided computers for the th National Students' Informatics Olympiad and the 3 rd Asian region ACM contest held by the Gave a Laptop a gift to the poor artist Mac Can in Ho Chi Minh Vietnam Association of Informatics, Vietnam Association of City Students and the Ministry of Education and Training at HCM City University of Technology, etc Gave away Mid Autumn presents to poor children in District , Ho Chi Minh City Granted scholarships to students of Tay Nguyen University and finance other activities of universities nationwide with an amount Participated in the charity program “ Medical examination, of hundreds of million VND such as: the introduction ceremony of medication supply and giftgiving for children and policyfavored Liveclub Department of Information Technology and people” which was jointly held by the Youth Union, International relations HCM City National Univeristy, financing Association of Young Businesses, Association of Young of the building of SQL serve program jointly carried out by the Physicians of Hanoi city Besides, CMC was also actively involved Technology College and Microsoft; sponsoring the “ Challenge” in charity programs in Chuong My and Quoc Oai districts ( Hanoi) Contest held by the Dept of IT HCM City University of Natural by contributions in cash and in kind Sciences Provide relief to flood victims in the central region with an amount Sponsored ICT Awards with a total amount of some 0 mil of mil VND in 0 VND Sponsored the Vietnam ( IT Week) , the th anniversary of the Vietnam Association of Informatics and the Computer World Expo 0 with a total amount of some 0 mil VND Sponsored such events as Talents of Vietnam 0 ; workshops and exhibitions on the Information Security Day; event " Hanoi prepares the , 0 th anniversary of Thang Long” held by CIO& CEO club with a total amount of some 0 mil VND Participated as cosponsor of the major events of the Vietnam Association of Young Businesses such as the Sao Và ng Đ ấ t Việ t 0 with an amount of over mil VND 86 CMC ANNUAL REPORT 2008 OTHER ACTIVITIES HISTORY OF DEVELOPMENT 9 , Formation of ADCOM Center under the Institute of MicroElectronics Technology, the National Institutte of Technology with Mr Ha The Minh and Mr Nguyen Trung Chinh as founders May th 9 , on the basis of ADCOM Center, HT & NT Co , Ltd the precursor of CMC was formed 9 , Formation of System Integration Department the present CMC SI 9 , Formation of Software Development Department the present CMC Soft 9 , Formation of Branch in HCM City named Computer and Communication Trading and Service Co , Ltd II 9 , Formation of System Integration Center ( CMC SI) and Software Solutions Center ( CMC Soft) 9 , Formation of The Trung Co , Ltd the present CMS Computer Company 0 , Restructuring of the Group; CMC became a system of affiliates which are closely linked in terms of finance, legislation, human resources and trademark At present, CMC consists of affiliates operating in such fields as IT, Telecom & Internet, and Electronics 0 , Conversion of the legal form from limited lability company to joint stock company 0 , Formation of CMC Distribution 0 , Formation of CMC Telecom 0 , Partnership with Segmenta a Dennish SAP service company for formation of Segmenta CMC Joint venture 0 , Formation of CMC InfoSec 0 , Formation of CMC TI 87 CMC ANNUAL REPORT 2008 CONTACTS CMC SYSTEM INTEGRATION CO , LTD – CMC SI Head office: Han Thuyen, Pham Dinh Ho Ward, Hai Ba Trung Dist , Hanoi Tel: 1 / Fax: 1 Branch: 4 A Le Hong Phong, Dist , Ho Chi Minh City Tel: 0 / Fax: 8 Www.cmcsi.com.vn CMC SOFTWARE SOLUTIONS – CMC SOFT Head office: Ham Long, Hoan Kiem Dist , Hanoi Tel: 9 6 / Fax: 9 Branch: LL A Ba Vi Road, Bac Hai Housing Compound, Ward , Dist , Ho Chi Minh City Tel: 7 / Fax: 7 Www.cmcsoft.com CMS COMPUTER CO , LTD – CMS Head office: 1 , CT5 , My Dinh New Urban Zone, Pham Hung Road, Hanoi Tel: 9 / Fax: Branch: CC Truong Son Road, Bac Hai Housing Compound, Ward , Dist , Ho Chi Minh City Tel: 7 / Fax: 7 www.cms.com.vn CMC DISTRIBUTION CO , LTD – CMC DISTRIBUTION Head office: N0 , B Trung Yen, Cau Giay, Hanoi Tel: 2 6 / Fax: 3 2 Branch: 6 A, Road / , Dist Ho Chi Minh City Tel: 9 / Fax: 9 7 www.cmcdistribution.com.vn CMC TELECOM SERVICE JOINT STOCK COMPANY – CMC TELECOM Head office: Doi Can, Ba Dinh, Hanoi Tel: 2 6 8 / Fax: 2 8 Branch: th floor, N0 6 A, Road / , Dist Ho Chi Minh City Tel: 9 / Fax: 9 www.cmctelecom.vn SEGMENTA CMC JOINT VENTURE – CMC SEGMENTA Head office: 1 th Floor, Building N0 D Minh Khai, Minh Khai Ward, Hai Ba Trung Dist , Hanoi Tel: 8 / Fax: Branch: th floor, N0 6 A, Road / , Dist Ho Chi Minh City Tel: 9 0 / Fax: 9 www.se-cmc.com.vn CMC INFORMATION SECURITY JOINT STOCK COMPANY – CMC INFOSEC Head office: # , A5 Dam Trau Zone, Hamlet Bach Dang Ward, Hai Ba Trung Dist , Hanoi Tel: 5 / Fax: 5 Branch: 6 A, Road / , Dist Ho Chi Minh City Tel: 9 / Fax: 9 www.cmcinfosec.com.vn CMC TELECOM INFRASTRUCTURE JOINT STOCK COMPANT – CMC TI Head office: rd Floor, Family Building Lieu Giai, Ba Dinh Dist , Hanoi Tel: 7 8 / Fax: 7 Branch: rd Floor, Ko Nia Building E Truong Dinh, Dist , Ho Chi Minh City Tel: 3 8 / Fax: 88 CMC ANNUAL REPORT 2008 CMC CORPORATION Head office: Han Thuyen, Pham Dinh Ho Ward, Hai Ba Trung Dist , Hanoi Tel: 1 / Fax: 1 Branch: 4 A Le Hong Phong, Dist , Ho Chi Minh City Tel: 0 / Fax: 8 www.cmc.vn CMC CORPORATION CMC SI CMC Soft CMS CMC Distribution CMC Telecom CMC–SE CMC InfoSec CMC TI ... success of CMC CHAIRMAN OF THE BOARD OF DIRECTORS HA THE MINH CMC ANNUAL REPORT 2 008 REPORT ON ANNUAL OPERATION RESULTS 2 008 The Chairman's Report The CEO's report Audited financial statements CMC Corp... targets set for 0 as well as the strategy until 10 CMC ANNUAL REPORT 2 008 REPORT BY THE CHAIRMAN OF THE BOARD REPORT ON ANNUAL OPERATION RESULTS ‘2 008 REPORT BY THE CHAIRMAN OF THE BOARD EVALUATION... and electronics 20 CMC ANNUAL REPORT 2 008 Audited Consolidated Financial Statements REPORT ON ANNUAL OPERATION RESULTS ‘2 008 Audited Consolidated Financial Statements ‘2 008 Report of the board