FINANCIAL STATEMENTS 2010(FOR THE FIRST 6 MONTHS)

FINANCIAL STATEMENTS FOR THE FIRST MONTHS OF THE FISCAL YEAR ENDING 31 DECEMBER 2010 REAL ESTATE 11 JOINT STOCK COMPANY REAL ESTATE 11 JOINT S CONTENTS Page Contents Report of the V i c t o r s Auditor's report Balance sheet as of 30 June 2010 Income statement for the first months of the fmcal year ending 31 December 2010 Cash flow statement for the first months of the fiscal year ending 31 December 2010 11 - 12 Nates to the financial statements for the fmt months of the fiscal year ending 31 December 2010 13 26 : Appendi - REAL ESTATE 11JOINT STOCK COMPANY REPORT OF THE DIRECTORS The Dimtors of Real Estate 11 Joint Stock Company ("the company") present this report together with the reviewed financial statements for the first half of the fiscal year ending 31 December 2010 Business hkhlights Real Estate 11 Joint Stock Company (previously called House Trading Joint Stock Company of District 11) was established on the basis of the equitization of the State-owned company (House Tradiing Joint Stock Company of District 11) in accordance with the Decision No 57301QD-UB dated 31 December 2003 of the Chainnan of the People's Committee of Ho Chi Minh City The operating under the business registration certificate No 4103002793 dated 22 October 2004 the Department of Planning and Investment of Ho Chi Minh City During its operation course, the company has been additionally granted the following amended business registration certificate by the Department of Planning and Investment of Ho Chi Minh City: -.- The Fist amended business registEation certificate on.02Eebmery 2005, the second one on 25 J-me 2005 and the third one on 20 June 2007 regarding the modification of the business functions - The fourth amended business registration certiftcae on 31 January 2008 on the change in the address of the head offioe Prescribed capital as in the business registration certificate: Share capital (VND) shareholdersRESCO 12.000.000.000 Others 8.000.000.000 Total 20.000.000.000 Head office Address Tel Fax E-mail Tax code Rate (%) 60 40 I 100 I : 205 Lac Long Quan, Ward 3, District 11, Ho Chi Minh City : (84 8) 38 587 107 : (84 8) 39 636 186 : resll@vnn.vn : 0300540937 Main operations of the company: Trading houses; Building up industrial works, public worm and houses; Performing interior decoration services; Manufacturing and trading construction materials (not at the head office); Designing civil construction works, industrial works, designing total space of construction works; designing interior and exterior construction works, Consulting, supervising civil and industrial construction works; Preparing construction investment plans; Investing in infhstructures of residential areas and industrial parks; Leveling ground; Providing services of leasing houses, plants and warehouses; Providing property services; Acting as agent of goods depositing; Designing structures of civil and industrial works; Leasiing offices; Manufacturing constructing materials (not at the head office); Executing prefabricated concrete building components; Building up civil, industrial and traffic works, Providing services of civil and industrial sanitation; Providing parking services; Caring and preserving trees; Tradiing household appliances, food, beverages and domestic cigarettes (except for providing catering services); Trading real estates; Providing property brokrrage service; Providing property appraisal service; Providing real estate floor services; Providing property consulting service; Providing property auction service; Performing property advertising service; Managing real estate; Providing services of pre-school education, primary education, secondary education, high-school education, vocational training (not operating at the head office), college (not operating at the head ofice), university and postgraduate (not operating at the head office); Providing educational snorts and entertainment Providing other educational services , ' - - ~ ~ C-, - ~ ,: y: - , ~ ; ; ; -, i@Z JOINT STOCK COMPANY REPoRT OF THE DlRECTORS (cont.) Material effec*, on the com~anv'so~erations Sales and profit of the period have dramatically increased thanks to the recording of the income h m the transfer of the project in District - An Phu - Ho Chi Minh City at the rate of 13.86% of the contract value Fmancial w i t i o n and business resdtg The financial position as of 30 Jme 2010, the business results, and the cash flows for the f& half of the fiscal year then ending of the company have been expressed in the interim financial siatements attached to this report (from page 06 to page 26) h During the period, the company has distributed the profit to its shareholders as follows: - Additional extraction for dividends of the previous year 4.652.940.000 VND - Dividends of this vear temmrarilv paid (rate of 10%) 2.000.000.000 VND Total 6.652.940.000 VND - :- ~ ~ ~ ,, , : ~ Snbseanent even& The D i i t o r s of the company hereby confirm that there have been no events from 30 June 2010to the date of this report, which need any adjustments on the figures or the disclosures in the interim fmancial statements I The Board of Mana~ementand the Executive Omcen The Board members and the Executive Officers of the company during the period and as of the date of this report include: The Board of Management Full names Mr Huynh Cao Nha Mr Tran Thanh Bach Mr Dang Huu Thanh Mr Tran Ngoc Phuong Ms Tran Thi Kim Hue Position Chairman Member Member Member Member Appointing date 08 October 2009 23 September 2004 23 September 2004 17 May 2008 08 October 2009 Resigning date - - - :% The Board of Supewkom Full names Ms Tran Thi Kim Loan Mr Vo Kim Thao Ms Nguyen Thanh Hoang Tram Ms Huynh Thi Yen Nhi Mr Nguyen Khac Giang Mr Vo Huu Tam Position Chief of the Board Member Member Member Member Member Appointing date 28 April 2010 28 April 2010 28 April 2010 30 September 2004 30 September 2004 08 October 2009 Resigning date The Directors Full names Mr Tran Thanh Bach Mr Ta Quang Tu Mr Dang Huu Thanh Ms Tran Thi Kim Hue Mr Nguyen Khac Giang Position General Director Deputy General D i t o r Deputy General D i o r Deputy General Director Deputy General Director Appointing date 10 November 2004 10 November 2004 10 November 2004 16 October 2009 16 October 2009 Resigning date ING - nntiv - d TO1 28 April 2010 28 April 2010 28 April 2010 - - - nc ' I REAL ESTATE 11 JOINT STOCK COMPANY REPORT OF THE DIRECTORS (cont) 3rs Anditon Auditing and Consulting Company Limited (A&C) has performed the review on the company's financial statementsfor the first half of the fiscal year ending December 2010 Confirmation af the Directors The D i t o r s of the company are responsible for the preparation of the interim financial statements to give a true and fair view of the financial position, the business results, and the cash flows of the company for each of the company's fiscal year In order to prepare these f m c i a l statements, the Directors must: select the appropriate accounting policies and apply them consistently; make judgment and estimates prudently; announce the accounting standards to be followed for the material issues to be disclosed and explained in the financial statements, and; prepare the financial statements of the company on the basis of the going-concern assumption, except for the cases that the going-concern assumption is considered inappropriate The Directors hereby ensure that all the requirements mentioned above have been followed when the interim financial statements are prepared, that all the accounting books of the company have been fully recorded and can fairly reflect the fmancial position of the company at any time, and that all the f m c i a l statements have been prepared in compliance with the prevailing Vietnamese accounting system and standards The Directors are also responsible to protect the assets of the company, and consequently have taken appropriate measures to prevent and to detect frauds and other irregularities We, the Directors of the company, hereby confirm that the accompanying interim f m c i a l statements and the notes to the fmancial statements have been properly prepared and have given a true and fair view of the financial position as of 30 June 2010, the business results and the cash flows for the first half of the fiscal year then endimg of the company in compliance with the Vietnamese accounting system and standards aswell as other related regulations TranThanh Bach General Director Date: 13 August 2010 Headquarters A&C :229 Dong Khoi St., Dist.1, Ho Chi Minh City Tel: (84.8) 38 272 295 -Fax: (84.8) 38 272 300 Branch in Ha Noi :40 Giang Vo St, Dong Da Dist., Ha Noi City BmnchinNha Trang: 18 Tran Khanh D u St., Nha Trang City Branch in Can Tho : 162U4 Tran Ngoc Que St., Can Tho City 4: C~NGTY~~MTO*NVARIV.XN AUDITING AND CONSULTING CO., LTD ~.a-c.e~rn.vo No 0816/2010/BCTC-KTTV REPORT ON THE REVIEW OF TRE FINANCIAL STATEMENTS FOR THE FIRST HALF OF THE FISCAL YEAR ENDING 31 DECEMBEFt 2010 OF REAL ESTATE 11 JOINT STOCK COMPANY We have reviewed the accompanying interim fmancial statements for the f b half of the fiscal year ending December 2010 of Real Estate 1 Joint Stock Company, including the interim balance sheet as of 30 June 2010,the interim income statement, the interim cash flows statement and the notes to the interim financial statements for the first half of the fiscal year ending 31 December 2010, which were prepared on 17 July 2010 (from page 06 to page 26) The preparation and the presentation of these interim fmancial statements are the responsibility of the Directors of the company Our responsibility is to express an opinion on these fmancial statements i based on our review , ,,- :-:; 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