BÁO CÁO THƯỜNG NIÊN 2020 CÔNG TY CỔ PHẦN CƠ ĐIỆN LẠNH

2020 BÁO CÁO THƯỜNG NIÊN Signature Not Verified Ký bởi: CÔNG TY CỔ PHẦN CƠ ĐIỆN LẠNH Ký ngày: 16-3-2021 08:26:04 THÔNG ĐIỆP CỦA CHỦ TỊCH HỘI ĐỒNG QUẢN TRỊ Năm 2020, Thế giới Việt Nam trải qua năm đầy biến động thách thức đại dịch kỷ “Covid-19” hoành hành khắp nơi làm đứt gãy chuỗi sản xuất toàn cầu, gây ảnh hưởng tiêu cực đến sức khoẻ kinh tế toàn giới Tuy nhiên, Việt Nam với liệt Chính phủ, đồng lịng tồn thể Nhân dân, vượt qua năm 2020 với thành tích kép vừa khống chế thành công bệnh dịch Covid-19, vừa đạt mức tăng trưởng kinh tế 2,91% trở thành nước hoi giới đạt tăng trưởng kinh tế năm 2020 Và REE Corporation, vui mừng Cơng ty hồn thành mục tiêu kế hoạch lợi nhuận 2020 Đại Hội Đồng Cổ Đông đặt thực thành công “Chuyển giao hệ điều hành” với việc bổ nhiệm Tổng Giám Đốc Tập đồn hai Phó Tổng Giám Đốc, tách bạch hai vị trí Chủ tịch Tổng Giám Đốc từ ngày 01/8/2020 thời điểm thích hợp chín mùi Song song với việc chuyển giao hệ Điều hành, việc Tái cấu trúc toàn diện tổ chức hoạt động Tập đoàn thực cách linh hoạt hiệu Hai Công ty TNHH lĩnh vực Điện, Nước thành lập chuyển đổi Công ty TNHH Bất động sản trở thành 03 “sub-holding” trực thuộc 100% vốn REE Corporation với mảng Cơ điện lạnh truyền thống Đi với Tái cấu trúc Tập đoàn, máy tổ chức nhân hoàn thiện, bổ sung để tiếp nhận tiếp tục vận hành suôn sẻ Từ ngày 01/01/2020, máy với nhiều vị trí chủ chốt tuyển dụng, bổ nhiệm… với tảng kiến thức, kỹ kinh nghiệm gió đầy lượng Trong năm 2020, đại dịch Covid-19 làm gián đoạn hoạt động kinh tế giới có Việt Nam - nước đánh giá kiểm soát tốt dịch bệnh - bị ảnh hưởng nặng nề Tập đồn REE khơng ngoại lệ BÁO CÁO THƯỜNG NIÊN 2020 Mảng điện lạnh M&E, bất chấp thị trường Bất động sản Xây dựng trầm lắng việc, thị trường cạnh tranh… REE M&E REEPRO tiếp tục có năm thành cơng, hồn thành đạt vượt Kế hoạch 2020 trợ thủ đắc lực cho Ban Tổng Giám Đốc phát triển xây dựng lợi cạnh tranh Tập đoàn Năm 2021 tiếp tục năm có nhiều điều khó đốn, có dịch bệnh, giao thương bị chia cắt, đình trệ - Song, với việc “Chuyển giao hệ”, tái cấu trúc, máy tổ chức nhân mạnh, tâm cao, Tập đoàn REE bước vào Kế hoạch năm, Kế hoạch kinh doanh năm 2021 với tự tin cao, tâm tìm kiếm thị trường, mở rộng đầu tư, tăng công suất, quản trị hiệu qui trình sản xuất kinh doanh… hứa hẹn năm tiếp tục gặt hái thành công Mảng Điện, thời tiết khô hạn tiêu dùng điện giảm sút Covid-19, nhờ cuối năm mưa nhiều, nhà máy thủy điện dịp chạy hết cơng suất, đạt sản lượng hồn thành kế hoạch doanh thu lợi nhuận Mảng Nước, hợp đồng mua bán sỉ nước tiếp tục thực theo lộ trình sản lượng giá - doanh thu lợi nhuận tăng trưởng tương ứng Bất động sản văn phòng cho thuê, tỉ lệ lấp đầy sụt giảm 3,5% so với kỳ Tuy nhiên, hợp đồng tái ký năm có mức giá thuê thấp điều chỉnh tăng chút dẫn đến kết mảng khả quan Các công ty thành viên, liên doanh liên kết mảng Bất động sản gặp khó khăn thủ tục đầu tư, đền bù giải phóng mặt bằng… dẫn đến khơng có dự án cấp phép triển khai xây dựng sản phẩm nên doanh thu lợi nhuận không đạt kế hoạch đặt Điểm bật năm 2020 lĩnh vực lượng tái tạo khởi động mạnh mẽ, nguồn lực tài đội ngũ huy động cho mục tiêu phát triển xây dựng dự án mới: Dự án Thủy điện Thượng Kon Tum phát điện vào tháng 3/2021, hoàn thành đầu tư xây dựng vận hành COD 86 MWp điện mặt trời mái nhà Các dự án điện gió xây dựng hoàn thành vận hành COD vào tháng 10/2021: dự án điện gió gần bờ Trà Vinh V1-3 có cơng suất 48MW; dự án điện gió đất liền Phú Lạc với công suất 29MW Lợi Hải với công suất 26MW Ninh Thuận/ Bình Thuận Bước vào thập niên mới, Kế hoạch năm đệ trình đến cổ đơng đầy tham vọng niềm tin với đội ngũ trẻ động, uy tín cơng ty, tài lành mạnh tâm lớn - Tập đoàn REE tiến mạnh, tiến vững vào tất lĩnh vực Cơ điện lạnh, Bất động sản, Năng lượng tái tạo Nước Yếu tố người xác định rõ động lực yếu cho phát triển Tập đoàn, đặc biệt giai đoạn chuyển giao hệ, việc xây dựng phát triển nguồn nhân lực yếu tố then chốt cho phát triển bền vững REE Cùng với chế hoạt động theo mơ hình holding, REE hồn thiện chức kiện toàn nhân Bộ phận Nhân cho Tập đoàn - Chuyên nghiệp, động tích cực Trong năm 2020, Bộ phận Nhân bước tìm hiểu, đánh giá đưa chiến lược phát triển nguồn nhân lực phù hợp với cấu tổ chức REE xu hướng quản trị nguồn nhân lực giới nói chung thị trường lao động trẻ Việt Nam nói riêng Thay mặt Hội Đồng Quản Trị, tơi gửi lời cảm ơn đến Cổ đông ủng hộ cho hoạt động Hội Đồng Quản Trị tin tưởng giao trọng trách quản trị Công ty Cảm ơn đội ngũ Ban điều hành tồn thể Cơng nhân viên Tập đồn vượt qua khó khăn, thử thách hoàn thành kế hoạch sản xuất kinh doanh năm 2020 chuẩn bị tốt cho kế hoạch sản xuất kinh doanh năm 2021 Kính chúc q Cổ đơng tồn thể Cơng nhân viên Tập đồn năm mạnh khỏe, thành công Nguyễn Thị Mai Thanh Chủ tịch Hội đồng Quản trị Năm 2020 đánh dấu nhiều thay đổi tổ chức hoạt động phát triển người Tập đoàn Sự khác biệt hiệu tạo cách tiếp cận khoa học, chuyên nghiệp, đúc kết từ thực tiễn, bên bên REE, hiểu biết ngành nghề kinh doanh, cập nhật kiến thức Quản trị Nhân Sự Bộ phận Nhân REE đã, tiếp tục BÁO CÁO THƯỜNG NIÊN 2020 NỘI DUNG BÁO CÁO THƯỜNG NIÊN 2020 01 CHUYÊN MỤC MỞ ĐẦU 02 03 GIỚI THIỆU TẬP ĐOÀN REE 03 13 04 HOẠT ĐỘNG TẬP ĐOÀN REE NĂM 2020 35 Tổng quát hoạt động Tập đoàn REE 2020 37 Thành tựu 05 Báo cáo Tổng giám đốc Tổng quan Tập đoàn REE 07 Lĩnh vực Cơ điện lạnh 39 Kết kinh doanh bật 2020 09 Những cột mốc quan trọng lịch sử hình thành phát triển 17 Lĩnh vực Bất động sản 43 Các số tài quan trọng Cơ điện lạnh Cơ sở hạ tầng Điện 45 10 Cơ sở hạ tầng Nước 53 Bản đồ đầu tư phát triển kinh doanh (trong nước quốc tế) 11 15 19 71 BÁO CÁO TÀI CHÍNH HỢP NHẤT 103 Thơng tin chung 105 Tầm nhìn tun ngơn phát triển bền vững Tập đồn REE 73 Tổng quan Báo cáo Phát triển bền vững Báo cáo Ban Giám Đốc 107 75 Hoạt động bật năm 2020 Báo cáo kiểm toán độc lập 108 81 Hoạt động kinh doanh 83 Bảng cân đối kế toán hợp 109 Phát triển Bất động sản Cho thuê văn phòng 21 Cơ sở hạ tầng Nước 22 Tổng hợp kết kinh doanh Nhóm cơng ty 55 Trách nhiệm xã hội 88 Cơ sở hạ tầng Điện 23 Kế hoạch Kinh doanh 2021 57 Bảo vệ môi trường 89 Quản trị nguồn nhân lực phát triển người Báo cáo lưu chuyển tiền tệ hợp 112 91 Bảng tham chiếu công bố thông tin theo tiêu chuẩn GRI-G4 Thuyết minh báo cáo tài hợp 113 99 Thơng tin cổ đông cổ phần 25 Báo cáo tái cấu trúc công ty 59 Giới thiệu cấu trúc quản trị Tập đoàn REE 27 Tổng quan quản trị Tập đoàn REE 61 Hội đồng quản trị 29 Hội quản trị 63 Ban điều hành 31 Danh mục công ty thành viên liên kết, đầu tư Báo cáo Ủy ban kiểm toán năm 2020 69 33 REE Corporation Công ty Cổ phần Cơ Điện Lạnh REE M&E Công ty Cổ phần Dịch vụ Kỹ Thuật Cơ Điện Lạnh REE Reetech Công ty Cổ phần Điện máy REE sản phẩm mang thương hiệu Reetech REEPRO Công ty TNHH Sản Xuất & Dịch Vụ REEPRO REE Real Estate Công ty TNHH Quản lý & Khai thác Bất động sản RRE REE Land Công ty TNHH Bất động sản REE Saigonres (SGR) Công ty Cổ phần Địa ốc Sài Gịn VIID Cơng ty Cổ phần Hạ tầng Bất động sản Việt Nam REE Energy Công ty TNHH Năng lượng REE REE SE Công ty Cổ phần Năng lượng Mặt trời REE REE Water Công ty TNHH Nước REE Báo cáo kết hoạt động kinh doanh hợp 111 BIỂU TƯỢNG CHỮ VIẾT TẮT BÁO CÁO THƯỜNG NIÊN 2020 BÁO CÁO PHÁT TRIỂN BỀN VỮNG 05 CP CTCP TP HCM HDQT KSNB KTĐL QLRR M&E UBKT TNHH Cổ phiếu Công ty Cổ phần Thành phố Hồ Chí Minh Hội đồng quản trị Kiểm sốt nội Kiểm toán độc lập Quản lý rủi ro Lĩnh vực điện cơng trình Ủy ban Kiểm tốn Trách nhiệm hữu hạn Lĩnh vực điện lạnh Lĩnh vực điện Lĩnh vực nước Lĩnh vực bất động sản Thủy điện Xử lý nước Cho thuê văn phòng Nhiệt điện Cung cấp nước Phát triển bất động sản Phong điện Điện mặt trời Phân phối điện BÁO CÁO THƯỜNG NIÊN 2020 05 Báo cáo Tổng giám đốc 07 Kết kinh doanh bật 2020 09 Các số tài quan trọng 10 Bản đồ đầu tư phát triển kinh doanh (trong nước quốc tế) 11 CHUYÊN MỤC MỞ ĐẦU CHUYÊN MỤC MỞ ĐẦU 01 Thành tựu CHUYÊN MỤC MỞ ĐẦU 03 | BÁO CÁO THƯỜNG NIÊN 2020 BÁO CÁO THƯỜNG NIÊN 2020 | 04 CHUYÊN MỤC MỞ ĐẦU CHUYÊN MỤC MỞ ĐẦU THÀNH TỰU “ 05 | GIẢI THƯỞNG TIÊU BIỂU Trong năm 2020, Công ty đạt mục tiêu “Kép”, hồn thành mục tiêu kế hoạch lợi nhuận 2020 Đại Hội Đồng Cổ Đông đặt thực “Chuyển giao hệ điều hành” việc tái cấu trúc Công ty thành công Vận hành thương mại điện mặt trời áp mái 86 MWp BÁO CÁO THƯỜNG NIÊN 2020 ” FORBES TOP 50 LISTED COMPANY VIETNAM REPORT TOP 500 THƯƠNG HIỆU VÀNG TP HCM REE Corporation đạt giải “Top 50 Cơng ty niêm yết tốt thị trường chứng khốn Việt Nam” tạp chí Forbes Vietnam bình chọn REE Corporation REE M&E thuộc “Top 500 Doanh nghiệp lớn Việt Nam” công bố Vietnam Report REE Corporation đạt chứng nhận thương hiệu Vàng UBND Thành phố Hồ Chí Minh VIETNAM REPORT VIETNAM TOP DOANH NGHIỆP TIÊU BIỂU ASIA HÀNG VIỆT NAM CHẤT LƯỢNG CAO REE M&E đạt giải Chứng nhận Top Nhà thầu điện uy tín năm 2020 REE M&E đạt Top 100 doanh nghiệp tiêu biểu Asia Reetech đạt danh hiệu ”Hàng Việt Nam chất lượng cao năm 2020” người tiêu dùng bình chọn CHUYỂN HỐ ĐỂ PHÁT TRIỂN VỮNG BỀN | 06 CHUYÊN MỤC MỞ ĐẦU CHUYÊN MỤC MỞ ĐẦU BÁO CÁO CỦA TỔNG GIÁM ĐỐC Chúng tin dựa tập trung tâm, REE Corporation tiếp tục đạt thành công vượt trội vào năm 2021, giúp nâng cao vị Việt Nam thị trường quốc tế Kính gửi Q Cổ đơng Thay mặt Ban Tổng Giám Đốc Tập đồn REE, tơi muốn gửi lời chào lời chúc tốt đẹp cho sức khỏe, hạnh phúc thành công! Năm 2020 vừa qua, tập đoàn thực bước chuyển đổi mạnh mẽ nỗ lực tái cấu trúc chuyển đổi hoạt động thành lĩnh vực chính: Cơ điện lạnh - Bất động sản - Cơ sở hạ tầng Điện - Cơ sở hạ tầng Nước Bên cạnh đó, Tập đồn thúc đẩy chiến lược đầu tư vào lĩnh vực công nghiệp lượng tái tạo nước Về kết kinh doanh, REE Corporation trì nhóm +VN30 nhóm 50 doanh nghiệp niêm yết tốt Việt Nam, top 30 thương hiệu vàng thành phố Hồ Chí Minh, doanh thu năm 2020 nhóm cơng ty tăng 15,3% so với kỳ từ 4.890 tỷ đồng lên 5.640 tỷ đồng Lợi nhuận tập đoàn đạt 100,4% so với kế hoạch đạt 1.627,7 tỷ đồng Tình hình tài nhóm công ty tiếp tục tăng trưởng mạnh với vốn chủ sở hữu tăng 10,1%, từ 10.397 tỷ đồng lên 11.453 tỷ đồng Ông HUỲNH THANH HẢI Tổng giám đốc tập đoàn REE 07 | BÁO CÁO THƯỜNG NIÊN 2020 Trong hoạt động kinh doanh, tập đồn ln đảm bảo việc nâng cao chất lượng dịch vụ, quản trị đầy đủ hệ sinh thái dịch vụ gia tăng trải nghiệm khách hàng, kiểm soát rủi ro nâng cao tính bảo mật hệ thống Trong quản lý nguồn nhân lực, Tập đoàn REE tuyển dụng nhiều nhân tài hàng đầu lĩnh vực, nâng cao mức bình quân trình độ học vấn quản trị tập đoàn đồng thời đưa mức đãi ngộ hấp dẫn gói lợi ích, kết hợp với hội thách thức cho nhân viên để phát huy hết tiềm Tập đồn REE nơi làm việc mà số doanh nghiệp có lượng nhân viên cam kết gắn bó lâu dài Việt Nam, họ tận hưởng quyền tự sử dụng tài sáng tạo họ để đóng góp cho phát triển Tập đoàn, tăng trưởng chung Việt Nam Kính thưa q vị Năm 2021, Tập đồn REE tiếp tục thúc đẩy lĩnh vực kinh doanh để trì vị trí hàng đầu, nâng cao giá trị tài sản trải nghiệm khách hàng Về mặt quản trị công ty, tiếp tục triển khai theo giá trị cốt lõi là: Bền vững - Trách nhiệm Trao quyền - Sáng tạo xây dựng phát triển hệ sinh thái sản phẩm dịch vụ mà lấy khách hàng trọng tâm, hiệu kinh tế hàng đầu trách nhiệm xã hội tiên nơi mà nhân viên tích cực tham gia hoạt động xây dựng môi trường sống làm việc lành Tập đoàn REE tâm bắt tay vào sứ mệnh tồn diện nó, "Tái tạo phát triển nguồn lượng sống bền vững cho hệ tương lai” Với “Sứ mệnh lãnh đạo” mình, Tập đồn REE thể tự tin kiên định triển khai chiến lược hành động, hành vi kinh doanh, giá trị sắc định hình suốt 44 năm qua REE Corporation tự hào trở thành hình mẫu truyền cảm hứng cho người khác công ty khác Việt Nam để trở thành doanh nghiệp thịnh vượng, uy tín ngang tầm nước khu vực Chúng tin dựa tập trung tâm, REE Corporation tiếp tục đạt thành công vượt trội vào năm 2021, giúp nâng cao vị Việt Nam trường quốc tế Trân trọng CEO Huỳnh Thanh Hải Bên cạnh đó, Tập đồn REE khởi xướng nhiều chương trình thúc đẩy giá trị cốt lõi với phương châm “Mỗi nhân viên REE Corporation đại sứ mơi trường”, CHUYỂN HỐ ĐỂ PHÁT TRIỂN VỮNG BỀN | 08 CÁC CHỈ SỐ TÀI CHÍNH QUAN TRỌNG Tăng 15,3% Đạt 1.628 tỷ đồng 15.176 tỷ VND 48.950 VND Doanh thu năm 2020 nhóm công ty so với kỳ năm 2019, từ 4.890 tỷ đồng lên 5.640 tỷ đồng Lợi nhuận tồn nhóm vượt 100,4% so với kế hoạch Giá trị vốn hoá REE Corporation thời điểm 31/12/2020 Giá trị 01 cổ phiếu REE thời điểm 31/12/2020 NỘI DUNG KẾT QUẢ KINH DOANH 2020 1.628 2020 2019 1.639 2019 2020 (Tỷ VND) 2019 (Tỷ VND) Thay đổi (%) Doanh thu 5.640 4.890 15,3 2018 Lợi nhuận sau thuế 1.628 1.639 -0,7 2017 20.530 19.623 4,6 2016 11.453 10.397 10,2 VND VND 5.251 5.286 -0,7 36.939 33.533 10,2 Tổng tài sản Vốn chủ sở hữu (1) Lãi cổ phiếu Giá trị 01 cổ phiếu (1) Kết khơng bao gồm Lợi ích cổ đơng khơng kiểm soát 1.784 1.377 2016 10 11 11 2017 2018 2019 | 15 2017 2018 2019 2020 2017 4.995 3.659 2020 20.530 19.623 15.500 14.295 11.396 Tổng tài sản (Tỷ VND) 11.453 2019 10.397 2018 9.319 2017 2016 8.034 7.156 Vốn chủ sở hữu (Tỷ VND) 2020 Tỷ số lợi nhuận ròng / Tổng tài sản ROA (%) 09 16 5.100 2020 2016 16 2018 Doanh thu (Tỷ VND) 2017 14 4.890 Lợi nhuận sau thuế (Tỷ VND) 2018 14 5.640 2016 1.093 2019 19 CHUYÊN MỤC MỞ ĐẦU CHUYÊN MỤC MỞ ĐẦU KẾT QUẢ KINH DOANH NỔI BẬT 2020 BÁO CÁO THƯỜNG NIÊN 2020 2016 Tỷ số lợi nhuận ròng / Vốn chủ sở hữu ROE (%) BÁO CÁO THƯỜNG NIÊN 2020 | 10 CHUYÊN MỤC MỞ ĐẦU PHẠM VI CUNG CẤP DỊCH VỤ REE Corporation cung cấp dịch vụ miền đất nước Những dự án hồn thiện tập trung thị lớn nước REE Corporation vươn thị trường quốc tế Nhà Ga T2 Sân bay Nội Những dự án làm nước đánh giá cao Nhà ga hành khách Cảng HKQT Đà Nẵng 31 1.300+ Quốc gia n đảo Hoà n g S a Q uầ Nhà Quốc hội Lào Tỉnh thành Thủy điện Thượng Kon Tum Nhà máy điện Gió Phú Lạc Cơng trình thực Nhà Ga T1 Tân Sơn Nhất Nhà ga hành khách Cảng HK Liên Khương Q uầ 11 | BÁO CÁO THƯỜNG NIÊN 2020 Nhà máy điện Gió Trà Vinh n đ ả o Tr n g S a CHUYÊN MỤC MỞ ĐẦU BẢN ĐỒ ĐẦU TƯ PHÁT TRIỂN KINH DOANH (TRONG NƯỚC VÀ QUỐC TẾ) BÁO CÁO THƯỜNG NIÊN 2020 | 12 GIỚI THIỆU VỀ TẬP ĐOÀN REE 13 | BÁO CÁO THƯỜNG NIÊN 2020 15 Những cột mốc quan trọng lịch sử hình thành phát triển 17 Cơ điện lạnh 19 Phát triển bất động sản cho thuê văn phòng 21 Cơ sở hạ tầng Nước 22 Cơ sở hạ tầng Điện 23 Thông tin cổ đông cổ phần 25 Giới thiệu cấu trúc quản trị Tập đoàn REE 27 Hội đồng quản trị 29 Ban điều hành 31 Danh mục công ty thành viên liên kết, đầu tư 33 BÁO CÁO THƯỜNG NIÊN 2020 GIỚI THIỆU VỀ TẬP ĐOÀN REE GIỚI THIỆU VỀ TẬP ĐỒN REE 02 Tổng quan Tập đồn REE | 14 GIỚI THIỆU VỀ TẬP ĐOÀN REE GIỚI THIỆU VỀ TẬP ĐOÀN REE TỔNG QUAN VỀ TẬP ĐOÀN REE THƠNG TIN KHÁI QT • Tên Cơng ty CƠNG TY CỔ PHẦN CƠ ĐIỆN LẠNH • Tên tiếng Anh REFRIGERATION ELECTRICAL ENGINEERING CORPORATION • Tên viết tắt REE CORPORATION • Trụ sở 364 CỘNG HỊA, PHƯỜNG 13, QUẬN TÂN BÌNH, TP HỒ CHÍ MINH • Số CNĐKDN 0300741143 • Mã chứng khốn REE TRÁCH NHIỆM, CHÚ TRỌNG • Vốn điều lệ 3.100.588.410.000 VND VÀO SỰ PHÁT TRIỂN BỀN VỮNG, • Điện thoại 84-28-3810 0017 • Fax 84-28-3810 0337 TẠO RA CÁC NỀN TẢNG GIÁ TRỊ ree@reecorp.com.vn • Website www.reecorp.com HỮU ÍCH CHO XÃ HỘI THEO “ • Thư điện tử TRONG MỖI LĨNH VỰC KINH DOANH HOẠT ĐỘNG, REE CORPORATION LN LÀ NGƯỜI KIẾN TẠO, UY TÍN VÀ TIÊU CHUẨN CỦA QUỐC TẾ Công ty Cổ phần Cơ Điện Lạnh (“REE Corporation” hay “Tập đoàn REE”) thành lập từ năm 1977, công ty niêm yết cổ phiếu thị trường chứng khoán Việt Nam, năm 2020, Tập đoàn REE tiếp tục đứng vững vị trí Top 50 doanh nghiệm niêm yết tốt Việt Nam ” THEO BÁO CÁO TỔNG GIÁM ĐỐC Với trọng tâm ban đầu tập trung phát triển ngành điện cơng trình thương hiệu điện lạnh gia dụng Reetech, REE Corporation không ngừng phát triển mở rộng mảng kinh doanh khác Ngày nay, REE Corporation cạnh tranh bốn mảng kinh doanh: • Cơ điện lạnh • Phát triển, quản lý, kinh doanh khai thác Bất động sản; • Cơ sở hạ tầng Điện • Cơ sở hạ tầng ước 15 | BÁO CÁO THƯỜNG NIÊN 2020 BÁO CÁO THƯỜNG NIÊN 2020 | 16 3.19 Earnings per share Basic earnings per share amount is computed by dividing net profit for the year attributable to ordinary equity holders of the Company (after adjusting for the bonus and welfare fund) by the weighted average number of ordinary shares outstanding during the the year Diluted earnings per share amounts are calculated by dividing the net profit after tax attributable to ordinary equity holders of the Company (after adjusting for interest on the convertible preference shares) by the weighted average number of ordinary shares outstanding during the year plus the weighted average number of ordinary shares that would be issued on conversion of all the dilutive potential ordinary shares into ordinary shares 3.20 Taxation Current income tax Current income tax assets and liabilities for the current and prior year are measured at the amount expected to be recovered from or paid to the taxation authorities The tax rates and tax laws used to compute the amount are those that are enacted as at the balance sheet date Current income tax is charged or credited to the consolidated income statement, except when it relates to items recognised directly to equity, in which case the current income tax is also dealt with in equity Current income tax assets and liabilities are offset when there is a legally enforceable right for the Group to offset current tax assets against current tax liabilities and when the Group intends to settle its current tax assets and liabilities on a net basis Deferred tax Deferred tax is provided using the liability method on temporary differences at the balance sheet date between the tax base of assets and liabilities and their carrying amount for financial reporting purpose Deferred tax liabilities are recognised for all taxable temporary differences, except: • Where the deferred tax liability arises from the initial recognition of an asset or liability in a transaction which at the time of the transaction affects neither the accounting profit nor taxable 273 | ANNUAL REPORT 2020 profit or loss; and • In respect of taxable temporary differences associated with investments in subsidiaries and associates, and interests in joint ventures where timing of the reversal of the temporary difference can be controlled and it is probable that the temporary difference will not reverse in the foreseeable future Deferred tax assets are recognised for all deductible temporary differences, carried forward unused tax credit and unused tax losses, to the extent that it is probable that taxable profits will be available against which deductible temporary differences, carried forward unused tax credit and unused tax losses can be utilised, except: • Where the deferred tax asset in respect of deductible temporary difference which arises from the initial recognition of an asset or liability which at the time of the related transaction, affects neither the accounting profit nor taxable profit or loss; and • In respect of deductible temporarily differences associated with investments in subsidiaries and associates, and interests in joint ventures, deferred tax assets are recognised only to the extent that it is probable that the temporary difference will reverse in the foreseeable future and taxable profits will be available against which the temporary differences can be utilised The carrying amount of deferred income tax assets is reviewed at each balance sheet date and reduced to the extent that it is no longer probable that sufficient taxable profit will be available to allow all or part of the deferred income tax asset to be utilised Previously unrecognised deferred income tax assets are re-assessed at each balance sheet date and are recognised to the extent that it has become probable that future taxable profit will allow the deferred tax assets to be recovered Deferred tax assets and liabilities are measured at the tax rates that are expected to apply in the year when the asset is realised or the liability is settled based on tax rates and tax laws that have been enacted at the balance sheet date Deferred tax is charged or credited to the consolidated income statement, except when it relates to items recognised directly to equity, in which case the deferred tax is also dealt with in equity account Deferred tax assets and liabilities are offset when there is a legally enforceable right for the Group to offset current tax assets against current tax liabilities and when they relate to income taxes levied by the same taxation authority on: • Either the same taxable entity; or • When the Group intends either settle current tax liabilities and assets on a net basis or to realise the assets and settle the liabilities simultaneously, in each future year in which significant amounts of deferred tax liabilities or assets are expected to be settled or recovered 3.21 Segment information A segment is a component determined separately by the Group which is engaged in providing products or related services (business segment), that is subject to risks and returns that are different from those of other segments 3.22 Related parties Parties are considered to be related parties of the Group if one party has the ability to control the other party or exercise significant influence over the other party in making financial and operating decisions, or when the Group and other party are under common control or under common significant influence Related parties can be enterprises or individuals, including close members of their families ANNUAL REPORT 2020 | 274 CONSOLIDATED FINANCIAL STATEMENTS CONSOLIDATED FINANCIAL STATEMENTS Rendering of services Revenue is recognised when the services have been rendered Revenue from supply and installation contracts Where the outcome of a construction contract can be estimated reliably and certified by customers, revenue and costs are recognised by reference to the amount of work completed at the balance sheet date Variations in contract work and claims are included to the extent that they have been agreed with the customer Where the outcome of a construction contract cannot be estimated reliably, contract revenue is recognised to the extent of contract costs incurred that are probable will be recoverable Contract costs are recognised as expenses in the year in which they are incurred Difference between the cumulative revenue of a construction contract recognised to date and the cumulative amount of progress billings of that contract was presented as construction contract receivable based on agreed progress billings in the consolidated balance sheet Office rental income Rental income arising from operating leases is accounted for on a straight line basis over the term of the lease Investment gains Gains from investments are recognised as income when the significant risks and rewards of ownership have passed to the buyer Interest income Revenue is recognised as the interest accrues (taking into account the effective yield on the asset) unless collectibility is in doubt Dividends Income is recognised when the Group’s entitlement as an investor to receive the dividend is established Bonus shares or issuance new shares for dividend payment Income is not recognised when the Group is entitled as an investor to receive bonus shares or issuance new shares for dividend payment The number of shares received as bonus or dividends is disclosed on the relevant note to the consolidated financial statements 4.1 Acquisition of interests in Tan Hai Real Estate Joint Stock Company On June 2020, REE Land Company Limited (“REE Land”), the Group’s subsidiary, completely acquired shares of Tan Hai Real Estate Joint Stock Company (“Tan Hai”) from the existing shareholder at the consideration of VND 35,051,100,000 and contributed additional capital to Tan Hai amounting to VND 15,000,000,000 Accordingly, the ownership interest of REE Land in Tan Hai is 99.99% Accordingly, Tan Hai became the subsidiary of the Group from the date of completion of the acquisition and additional contribution with the ownership interest of the Group in Tan Hai of 99.96% (as at 31 December 2020 is 99.99%) The principal acitivity of Tan Hai is to trade in real estate The provisional fair values of the identifiable assets and liabilities of Tan Hai as at the acquisition date of consolidation are as follows: VND Provisional fair value recognized on acquisition Assets Cash 10,672,690,006 Receivables 2,570,618,599 Fixed assets and construction in progress 36,490,676,000 Other assets 220,289,800 49,954,274,405 Liabilities Liabilities VND Ending balance Identifiable net assets at provisional fair value In which: Net assets acquired Non-controlling interests Goodwill arising on acquisition In which: Goodwill of the Group Bargain purchase of non-controlling interests Purchase consideration In which: Purchase consideration of the Group Purchase consideration of non-controlling interests Cash flow on acquisition Net cash acquired with the subsidiary Cash paid Net cash flow on acquisition | ANNUAL REPORT 2020 49,916,423,305 49,897,072,320 19,350,985 3,848,977,978 1,424,824,835 Cash in transit - 50,000,000 Cash at banks 230,499,687,207 256,697,227,069 Cash equivalents (*) 417,320,000,000 1,281,405,000,000 TOTAL 651,668,665,185 1,539,577,051,904 (*) Cash equivalents mainly represent the short-term bank deposits with original maturity of less than three months and earn average interest rates ranging from 2.9% to 4.0% per annum SHORT-TERM TRADE RECEIVABLES AND CONSTRUCTION CONTRACT RECEIVABLES BASED ON AGREED PROGRESS BILLINGS VND Short-term trade receivables Construction contract receivables based on agreed progress billings TOTAL Provision for doubtful short-term receivables 134,676,695 NET 138,627,342 (3,950,647) In which: Amount due from third parties Amount due from a related party (Note 33) 50,051,100,000 50,035,699,662 15,400,338 VND Amount 10,672,690,006 (50,035,699,662) (39,363,009,656) Beginning balance Cash on hand 37,851,100 37,851,100 275 CASH AND CASH EQUIVALENTS Ending balance Beginning balance 1,348,736,174,580 906,379,776,681 532,717,915,551 605,008,227,997 1,881,454,090,131 1,511,388,004,678 (93,134,006,764) (57,790,190,301) 1,788,320,083,367 1,453,597,814,377 1,881,359,463,486 94,626,645 1,511,388,004,678 Details of movements of provision for doubtful short-term receivables during the year are as follows: VND Current year Beginning balance Add: Provision created during the year Less: Reversal of provision during the year Ending balance Previous year 57,790,190,301 59,741,842,918 35,360,798,232 429,940,966 (16,981,769) (2,381,593,583) 93,134,006,764 57,790,190,301 ANNUAL REPORT 2020 | 276 CONSOLIDATED FINANCIAL STATEMENTS CONSOLIDATED FINANCIAL STATEMENTS BUSINESS COMBINATION VND VND Ending balance Beginning balance Vestas Asia Pacific A/S 209,464,258,125 - Vestas Wind Technology Vietnam LLClc 163,706,100,000 - - 25,005,726,895 Others 202,027,565,100 205,838,946,797 TOTAL 575,197,923,225 230,844,673,692 (1,770,000,000) (2,379,427,650) 573,427,923,225 228,465,246,042 Elektro Energie Technik GmbH Provision for doubtful short-term advances to suppliers NET Cost Power and water TOTAL 4,251,707,260 VND Long-term Advances for land compensation Deposits TOTAL In which: Receivables from third parties Receivables from related parties (Note 33) Ending balance Beginning balance 253,933,519,330 56,350,036,068 54,869,698,400 47,693,814,120 27,783,883,528 19,468,994,029 47,767,093,185 357,310,831,522 59,583,266,166 169,913,852,000 58,958,842,373 10,600,000,000 21,446,062,907 36,808,808,076 50,793,122,087 28,532,319,900 22,260,802,187 38,712,034,275 28,532,319,900 10,179,714,375 304,726,641,417 396,022,865,797 213,727,834,438 220,474,767,222 90,998,806,979 175,548,098,575 (*) These amount represent the advance for investments of the Group At the date of preparation of those consolidated financial statements, the Group is in the process of completing administrative procedures relating to these investments (**) This amount represents the deposit for the state authorities to assurance the implementation of the Group’s wind power projects 277 | ANNUAL REPORT 2020 (2,798,793,778) 1,452,913,482 Beginning balance Provision Net amount 4,615,333,340 (2,063,014,637) 149,660,536,384 (94,904,006,764) 54,756,529,620 90,941,767,597 2,552,318,703 (60,169,617,951) 30,772,149,646 10 INVENTORIES VND Ending balance Beginning balance Cost Provision Cost Provision 761,773,998,411 (6,050,887,195) 946,809,337,971 (12,462,748,812) 428,823,178,808 - 460,343,418,548 165,711,151,828 - Raw materials - Finished and merchandise goods 155,988,831,144 10,966,041,340 - Goods in transit 284,795,291 - Tools and supplies OTHER RECEIVABLES Cost Mechanical 143,638,829,124 (90,335,212,986) 53,303,616,138 84,556,434,257 (56,336,603,314) 28,219,830,943 and refrigeration electrical engineering 1,770,000,000 (1,770,000,000) - 1,770,000,000 (1,770,000,000) Real estate Inventories - Work in process Short-term Interest income Dividend receivable Advances for investments (*) Deposit for project implementation (**) Advances for employees Others Ending balance Provision Net amount (2,590,144,955) 277,489,514,516 (3,460,742,240) 144,145,345,056 - 64,556,252,544 274,807,307 - (10,161,220,828) (2,301,527,984) - 52,857,291,730 44,199,169,115 8,658,122,615 - Inventory properties - Nam Le Loi Project - Other projects 51,783,933,261 38,867,291,472 12,916,641,789 TOTAL 813,557,931,672 (6,050,887,195) 999,666,629,701 (12,462,748,812) - Details of movements of provision for obsolete inventories during the year are as follows: Beginning balance Add: Provision provided during the year Less: Reversal of provision during the year Ending balance Current year (12,462,748,812) (1,671,341,207) 8,083,202,824 VND Previous year (15,685,828,575) (2,330,196,250) 5,553,276,013 (6,050,887,195) (12,462,748,812) Ending balance 213,096,048,798 VND Beginning balance 217,090,896,218 30,794,573,661 31,608,527,145 2,431,848,927 27,132,755,842 273,455,227,228 13,433,173,793 17,224,714,909 279,357,312,065 11 LONG-TERM PREPAID EXPENSES Prepaid land rental Supporting cost for removing to has the rights to use the Quang Trung Tower Tools and supplies Others TOTAL ANNUAL REPORT 2020 | 278 CONSOLIDATED FINANCIAL STATEMENTS CONSOLIDATED FINANCIAL STATEMENTS BAD DEBTS SHORT-TERM ADVANCES TO SUPPLIERS | ANNUALREPORT 2020 690,299,959,277 17,863,767,471 1,431,825,354,929 (15,535,842,267) 21,550,322,939 1,309,642,717 1,424,501,231,540 Ending balance Beginning balance NET CARRYING AMOUNT: Ending balance Disposals Depreciation for the year Beginning balance 873,159,627,500 899,023,882,942 558,665,727,429 (12,885,819,519) 46,074,198,350 525,477,348,598 ACCUMULATED DEPRECIATION: Collateral (Note 24.2) In which: Fully depreciated Ending balance Disposals Transfer from construction in progress New purchase Beginning balance COST Buildings and structures 12 TANGIBLE FIXED ASSETS 156,142,482,668 66,509,418,721 3,538,630,422 96,982,679,492 9,040,649,423 (1,749,338,661) 104,273,990,254 47,752,869,792 51,868,492,414 2,810,790,530,138 431,334,644,079 1,819,679,538,675 1,123,491,418,609 111,242,129,959 (743,104,802) 1,233,990,443,766 875,555,225,946 1,576,800,086,372 - 808,900,752,568 (2,070,939,957) 13,477,873,341 3,586,237,817 (743,104,802) 144,735,549,284 Means of transportation 1,999,046,644,555 Machinery and equipment 3,145,168,624 4,305,319,342 15,128,153,228 (340,118,785) 1,112,732,840 14,355,539,173 127,778,650 9,873,776,470 18,273,321,852 (340,118,785) 120,000,000 (167,417,878) 18,660,858,515 Office equipment Total (18,690,005,811) 844,212,744,021 18,400,335,997 1,913,877,867,586 (15,718,381,767) 167,700,753,722 1,761,895,495,631 2,513,792,336,111 525,791,606,741 13,958,098,192 2,518,931,473,102 353,472,828 1,826,990,770,850 1,819,552,909 - 231,043,150 1,588,509,759 146,429,087 210,000,000 15,777,651,101 4,432,809,340,688 - 13,641,668,514 194,000,000 1,941,982,587 3,588,886,266,481 Others VND CONSOLIDATED FINANCIAL STATEMENTS 279 VND Land use rights COST Beginning balance 39,589,302,451 Acquisition of a subsidiary 34,289,176,000 New purchase Write-off - Ending balance In which: Fully amortised Collateral (Note 24.2) Ending balance 8,733,720,103 NET CARRYING AMOUNT: Beginning balance 31,650,115,676 Ending balance 65,144,758,348 Softwares Other Total 12,303,390,782 659,650,000 (3,248,863,318) 30,340,000 51,923,033,233 34,289,176,000 659,650,000 (3,248,863,318) 73,878,478,451 9,714,177,464 30,340,000 83,622,995,915 363,000,000 6,613,382,264 30,340,000 7,006,722,264 2,713,395,836 2,713,395,836 ACCUMULATED AMORTISATION: Beginning balance 7,939,186,775 Amortisation for the year 794,533,328 Write-off 11,914,820,705 339,565,793 (3,248,863,318) 30,340,000 19,884,347,480 1,134,099,121 (3,248,863,318) 9,005,523,180 30,340,000 17,769,583,283 388,570,077 708,654,284 32,038,685,753 65,853,412,632 14 CONSTRUCTION IN PROGRESS VND Ending balance Beginning balance Cost of wind power projects 184,639,686,663 8,593,721,088 Office Leasing Project costs 53,314,467,759 17,459,053,674 Cost of solar power systems installation on the roof (i) 15,668,501,697 27,413,621,037 Others 22,331,856,499 14,277,631,366 TOTAL 275,954,512,618 67,744,027,165 (i) The Group has pledged cost of solar power systems projects in REE SE and its subsidiaries to secure its bank loan facilities (Note 24) ANNUAL REPORT 2020 | 280 CONSOLIDATED FINANCIAL STATEMENTS 13 INTANGIBLE ASSETS The fair value of the investment properties was not formally assessed and determined as at 31 December 2020 However, given the current high occupancy rate of these properties, it is management’s assessment that these properties’ market values are higher than their carrying value as at the balance sheet date 16 INVESTMENTS 1,439,272,927,714 1,474,492,817,347 520,663,848,689 (2,548,471,364) 72,787,151,060 92,314,644,337 1,176,603,990,919 450,425,168,993 VND Ending balance Short-term Held-for-trading securities (Note 16.1) Provision for diminution in value of held-for-trading securities (Note 16.1) Held-to-maturity investments (Note 16.2) 432,981,930,767 59,751,826,582 (953,161,365) (6,378,080,421) 896,530,452,258 1,167,921,882,429 1,328,559,221,660 1,221,295,628,590 8,449,674,018,847 530,000,000,000 307,894,164,509 7,896,638,703,005 530,000,000,000 791,898,218,587 (413,545,759) (4,496,258,716) Net value of long-term investments 9,287,154,637,597 9,214,040,662,876 TOTAL 10,615,713,859,257 10,435,336,291,466 | ANNUAL REPORT 2020 Ending balance Beginning balance NET CARRYING AMOUNT: Ending balance Disposals Depreciation for the year Long-term Investments in associates (Note 16.3) Held-to-maturity investments (Note 16.2) Investments in other entities (Note 16.4) Provision for long-term investments (Note 16.4) Beginning balance ACCUMULATED DEPRECIATION: In which: Fully depreciated Collateral (Note 24.2) Ending balance Disposals Transfer from construction in progress Beginning balance COST 15 INVESTMENT PROPERTIES Net value of short-term investments 281 Beginning balance ANNUAL REPORT 2020 | 282 CONSOLIDATED FINANCIAL STATEMENTS 1,773,066,914,071 333,793,986,357 1,856,448,851,637 381,956,034,290 843,618,759,823 546,453,001 322,408,458,133 (2,638,721,818) (90,250,454) - 125,097,617,499 52,310,466,439 721,159,864,142 546,453,001 90,250,454 270,097,991,694 225,403,700,359 1,504,966,875,163 546,453,001 90,250,454 132,452,352,567 328,362,884,244 2,616,685,673,894 546,453,001 1,959,936,776,403 656,202,444,490 (2,638,721,818) (90,250,454) (2,548,471,364) - 41,715,679,933 37,567,261,427 4,148,418,506 2,577,608,715,779 90,250,454 546,453,001 Buildings and structures (*) 1,924,917,986,340 652,054,025,984 Total Others Machinery and equipment Office equipment VND CONSOLIDATED FINANCIAL STATEMENTS (*) Including in buildings and structures is the construction cost of office building located at Quang Trung street, Hoan Kiem district, Hanoi (“Quang Trung Tower") according to the Bussiness Corporation Contract (“BCC”) between VIID, the Company’s susidiary, and the Partner with the net carrying amount of VND 113,451,860,189 (31 December 2019: VND 119,100,915,461) VIID leased Quang Trung Tower out to third party in accordance with the long-term irrevocable leasing agreement (“the Agreement”) up to November 2058 On 26 December 2018, VIID received such official letter from the Partner in relation to the liquidation of BCC contract and take back Quang Trung Tower In case of the BCC and the Agreement will be liquidated ahead of time, VIID will negotiate with the Partner and the Leasee about termination of the mentioned contracts based on the terms and conditions which have been agreed in the BCC and the Agreement As at the date of these consolidated financial statements, VIID is still in progress to negotiate with the Partner and the Leasee in relation to such event and VIID is not able to determine the impacts (if any) in respect of the termination of BCC and the Agreement before due date | 10.5 500,000,000,000 Vietcombank Securities Company Limited (“VCBS”) Name of associates Vinh Son - Song Hinh Hydropower Joint Stock Company (“VSH”) (i) Ending balance % of Amount interest VND 49.52 Thac Mo Hydropower Joint Stock Company 42.63 Song Ba Ha Hydropower 25.76 Joint Stock Company (ii) Central Hydropower 22.68 Joint Stock Company (iii) IDICO Srok Phu Mieng Hydropower Joint Stock Company Binh Dien Hydropower Joint Stock Company Pha Lai Thermal Power Joint Stock Company (“PPC”) (iv) Ninh Binh Thermal Power Joint Stock Company Song Da Water Investment Joint Stock Company 34.30 25.47 Beginning balance % of Amount interest VND 2,132,134,381,108 49.45 Business activities 2,035,709,242,212 Hydropower 686,339,328,952 42.63 653,333,058,206 Hydropower 670,488,001,191 25.76 587,156,053,190 Hydropower 625,586,217,838 22.68 596,163,296,162 Hydropower 188,823,284,939 34.30 200,267,463,127 Hydropower 77,182,114,608 25.47 24.14 1,580,304,676,530 24.14 29.45 80,089,416,268 29.45 35.95 830,425,253,519 35.95 74,488,544,993 Hydropower Thermal power Thermal 75,020,746,276 power Water 762,834,560,207 supply 1,449,710,474,607 Thu Duc Water B.O.O Corporation 42.07 294,863,092,924 42.07 287,395,036,439 Water supply Saigon Water Investment and Trading Joint Stock Company 40.00 261,170,447,450 40.00 177,427,021,292 Water supply 43.88 257,888,053,087 43.96 254,450,574,513 Water supply 32.00 119,246,018,747 32.00 113,464,014,288 Water supply Thu Duc Water Supply Joint Stock Company 44.17 75,214,801,898 44.17 66,273,570,319 Water supply Nha Be Water Supply Joint Stock Company 20.02 41,342,747,776 20.02 40,718,289,160 Water supply Gia Dinh Water Supply Joint Stock Company 20.05 33,668,217,799 20.05 31,069,234,135 Water supply Trinh Xa Da Hoi Company Limited (v) 18.73 18.73 251,697,478,293 Real estate 28.87 209,586,464,820 28.87 194,105,861,428 Real estate 31.82 33,625,140,598 35.00 45,354,184,158 Mechanical and Engineering Khanh Hoa Water Supply Joint Stock Company (“KHW”) Tan Hiep Water Investment Joint Stock Company Saigon Real Estate Joint Stock Company Doan Nhat Mechanical Electrical Joint Stock Company TOTAL 251,696,358,795 8,449,674,018,847 7,896,638,703,005 (i) During the year, the Group’s management decided to acquire additional 162,480 shares of VSH Accordingly, the ownership rate of Group in VSH increased from 49.45% to 49.52% (ii) 32,000,000 shares of Song Ba Ha Hydropower Joint Stock Company, which are owned by the Group, were pledged as collateral for the Company’s domestic straight bonds – REE-BOND 2029 (Note 25.3) (iii) In accordance with the Resolution of the General Shareholders No 01/2020/NQ-CHP-HDCD dated 16 June 2020, shareholders of Central Hydropower Joint Stock Company (“CHP”) unanimously approved the proposal for dividend payment at 16% include payment of 10% in cash and 6% by issuing shares CHP closed the shareholders list to pay the dividends above on July 2020 and 13 August 2020 Accordingly, the number of shares received by the Group from the issuance was 1,886,309 shares (iv) 35,525,776 shares of Pha Lai Thermal Power Joint Stock Company, which are owned by the Group, were pledged as collateral for the Company’s domestic straight bonds – REEBOND 2017 (Note 25.3) (v) As at 31 December 2020, the voting rate of the Group at Trinh Xa Da Hoi Company Limited was 37%.In addition, on 24 December 2020, the Group signed the contract to transfer fully the shares of Trinh Xa Da Hoi Company Limited to a counterparty with the value of VND 311,600,000,000 As at the date of the consolidated financial statements, VIID and the counterparty are on-going to complete the legal transfer procedures ANNUAL REPORT 2020 | 284 CONSOLIDATED FINANCIAL STATEMENTS All construction project, equipment and machineries, means of transportations and other assets of Vinh Son Hydropower Plant To finance project Thuong Kon Tum Hydropower project From October 2026 to 21 December 2026 Description of collateral Purpose Interest %/p.a Maturity date Ending balance VND Issuing Organization Vinh Son-Song Hinh Hydropower Joint Stock Company (“VSH”) Arrangement organization for issuing Beginning balance 1,167,921,882,429 1,167,921,882,429 530,000,000,000 500,000,000,000 30,000,000,000 1,697,921,882,429 Ending balance 896,530,452,258 896,530,452,258 530,000,000,000 500,000,000,000 30,000,000,000 1,426,530,452,258 Short-term Finance institution deposits (*) Long-term VSH_BOND_2019 (**) Others TOTAL 16.2 Held-to-maturity investments ANNUAL REPORT 2020 (*) These represent the term deposits with original maturities of more than three (3) months and less than (12) months and earn average interest rates ranging from 5.5% to 7.7% per annum (**) Details of VSH_BOND_2019 bonds as at 31 December 2020 are the followings: VND 61,365,547,198 61,365,547,198 (6,133,400,000) (244,680,421) (6,378,080,421) 6,133,400,000 53,618,426,582 59,751,826,582 (953,161,365) 27,385,398,648 (953,161,365) 454,348,964,048 Mang Canh Joint Stock Company Others 28,338,518,847 TOTAL 432,981,930,767 426,963,565,400 Quang Ninh Thermal Power Joint Stock Company 404,643,411,920 Provision Securities 16.1 Held-for-trading securities Cost Ending balance Fair value/ net value Cost - Provision - Beginning balance Fair value/ net value - VND CONSOLIDATED FINANCIAL STATEMENTS 283 16.3 Investments in associates | (31,438,526,230) (27,781,007,400) (2,368,776,000) (3,789,400,000) (46,948,120,000) (6,000,000,000) (10,839,120,000) (4,505,664,000) (1,963,890,000) (1,904,688,000) (19,706,382,300) 27,002,291,952 14,577,828,993 8,662,597,001 71,670,670,597 (122,506,383,561) 115,867,021,292 (175,625,497) (2,101,856,098) 541,394,080 6,259,268,926 368,000,000,000 615,869,678,462 173,265,171,175 59,910,716,000 825,727,978,499 66,358,149,275 691,163,889,610 409,901,420,000 61,560,000,000 254,626,200,010 76,800,000,000 68,375,426,417 40,176,895,080 24,809,965,209 - 368,000,000,000 ANNUAL REPORT 2020 24,809,965,209 40,176,895,080 68,375,426,417 76,800,000,000 254,626,200,010 61,560,000,000 409,901,420,000 691,163,889,610 66,358,149,275 825,727,978,499 59,910,716,000 173,265,171,175 Quang Ninh Thermal Power Joint Stock Company Others TOTAL Deo Nai Coal Joint Stock Company 30,304,184,158 15,050,000,000 - Cost 32,619,000,000 275,275,164,509 307,894,164,509 Investments in other entities Name of companies - 27,478,293 - (14,506,800,000) (13,470,405,277) 139,648,659,428 54,457,202,000 251,670,000,000 - 36,664,014,288 (34,560,000,000) Ending balance Provision (413,545,759) (413,545,759) Fair value 57,000,000,000 310,554,663,770 367,554,663,770 9,716,539,376 15,558,113,764 17,271,398,608 754,576,698,031 13,731,266,993 139,261,363,909 (115,038,327,076) 199,610,447,450 3,261,853,077 42,446,018,747 6,839,375,481 1,165,852,696 8,858,252,590 155,129,262,820 26,358,795 99,331,948,001 60,861,447,906 16,336,829,212 5,062,345,615 235,079,152,923 8,858,069,992 67,590,693,312 54,416,176,485 89,743,426,158 14,276,598,574 40,342,004,459 13,446,895,579 2,588,348,616 4,503,671,664 28,951,008,669 (1,119,498) 45,354,184,158 251,697,478,293 194,105,861,428 31,069,234,135 40,718,289,160 66,273,570,319 113,464,014,288 254,450,574,513 177,427,021,292 287,395,036,439 762,834,560,207 75,020,746,276 1,449,710,474,607 74,488,544,993 200,267,463,127 596,163,296,162 587,156,053,190 653,333,058,206 2,035,709,242,212 Beginning balance VND 33,625,140,598 251,696,358,795 209,586,464,820 33,668,217,799 41,342,747,776 75,214,801,898 119,246,018,747 257,888,053,087 261,170,447,450 294,863,092,924 830,425,253,519 80,089,416,268 1,580,304,676,530 77,182,114,608 188,823,284,939 625,586,217,838 670,488,001,191 686,339,328,952 2,132,134,381,108 Ending balance Carrying amount VND Beginning balance Provision Fair value 37,500,000,000 479,773,024,200 (1,867,625,079) 11,490,124,800 (2,628,633,637) 307,880,189,268 (4,496,258,716) 836,643,338,268 914,775,593,286 2,035,980,413,358 7,896,638,703,005 8,449,674,018,847 18,575,140,598 302,488,001,191 77,771,880,746 2,777,756,440 158,342,323,132 304,160,473,176 92,838,458,433 Cost 32,619,000,000 470,646,304,200 13,357,749,879 275,275,164,508 791,898,218,587 6,410,106,925,026 3,586,680,463 6,413,693,605,489 1,486,531,777,979 (365,326,957,907) 15,050,000,000 251,670,000,000 Hai Phong Thermal Power Joint Stock Company 16.4 TOTAL Doan Nhat Mechanical Electrical Joint Stock Company Trinh Xa Da Hoi Company Limited Saigon Real Estate Joint Stock Company 54,457,202,000 Gia Dinh Water Supply Joint Stock Company Saigon Water Investment and Trading Joint Stock Company Khanh Hoa Water Supply Joint Stock Company Tan Hiep Water Investment Joint Stock Company Thu Duc Water Supply Joint Stock Company Nha Be Water Supply Joint Stock Company Thu Duc Water B.O.O Corporation Ninh Binh Thermal Power Joint Stock Company Song Da Water Investment Joint Stock Company Pha Lai Thermal Power Joint Stock Company Binh Dien Hydropower Joint Stock Company IDICO Srok Phu Mieng Hydropower Joint Stock Company Central Hydropower Joint Stock Company 615,869,678,462 Song Ba Ha Hydropower Joint Stock Company 623,982,496,108 (104,484,951,000) (16,000,000,000) 219,156,053,190 382,178,855,776 (44,765,610,000) 65,503,864,699 271,154,202,430 1,973,792,057,976 Ending balance - Additions Accumulated share of post-acquisition profit (loss) of the associates Dividend declared Share of profit of associates Beginning Ending during balance balance for the period the period 1,970,205,377,513 3,586,680,463 Thac Mo Hydropower Joint Stock Company 382,178,855,776 Vinh Son - Song Hinh Hydropower Joint Stock Company Beginning balance Cost of investment Details of these investments in associates which were consolidated by applying equity method are presented as follows: CONSOLIDATED FINANCIAL STATEMENTS 285 Muong Hum Cost Beginning balance 256,604,003,370 Acquisition of a subsidiary Ending balance 256,604,003,370 Accumulated amortisation: Beginning balance 4,276,733,390 Amortisation for the year 25,660,400,335 Ending balance 29,937,133,725 Net carrying amount: Beginning balance 252,327,269,980 Ending balance 226,666,869,645 Supply and installation services Office leasing and related services Others TOTAL In which: Due from third parties Due from a related party (Note 33) Beginning balance Corporate income tax Value-added tax Personal income tax Others TOTAL RECEIVABLES Corporate income tax 55,627,582,581 5,620,872,475 3,483,157,694 2,950,515,422 67,682,128,172 Thuan Binh LONGi Solar Technology Co., Ltd Thong Hiep Co., Ltd Others TOTAL Others Increase during the year Total 790,665,979,447 - Decrease during the year ANNUAL REPORT 2020 VND 17,853,543,987 17,853,543,987 99,614,331,727 138,627,342 99,752,959,069 374,071,879,084 138,627,342 374,210,506,426 1,785,354,399 1,785,354,399 99,614,331,727 138,627,342 99,752,959,069 103,891,065,117 27,584,382,076 131,475,447,193 17,853,543,987 16,068,189,588 270,180,813,967 242,735,059,233 18 SHORT-TERM TRADE PAYABLES 19 SHORT-TERM ADVANCES FROM CUSTOMERS Ending balance 174,146,147,124 13,500,000,000 445,358,880,230 633,005,027,354 VND Beginning balance 32,500,000,000 496,288,640,117 528,788,640,117 Ending balance 784,464,828,351 2,763,746,569 3,437,404,527 790,665,979,447 VND Beginning balance 956,486,321,474 2,281,012,560 7,464,566,801 966,231,900,835 966,049,595,548 182,305,287 20 STATUTORY OBLIGATIONS VND Ending balance PAYABLES 201,979,248,849 291,155,640,014 29,574,529,180 63,654,393,674 586,363,811,717 (203,121,379,886) (284,914,502,482) (29,494,002,466) (61,950,694,208) (579,480,579,042) 54,485,451,544 11,862,010,007 3,563,684,408 4,654,214,888 74,565,360,847 8,332,379,204 260,107,322 (3,968,991,747) 4,623,494,779 Others 2,059,045,702 4,938,835,522 (5,562,226,137) 1,435,655,087 TOTAL 10,391,424,906 5,198,942,844 (9,531,217,884) 6,059,149,866 | 286 CONSOLIDATED FINANCIAL STATEMENTS 17 GOODWILL Short-term Deposits Others Long-term Deposits received from office tenants TOTAL 287 | ANNUAL REPORT 2020 - 272,348,838,173 247,106,530,597 (*) These are the unamortised amounts in accordance with the long-term leasing agreement of the Quang Trung Tower dated December 2017 between VIID, the Company’s subsidiary, and the lessee within 41 years from 2017 to 2058 amounting to VND 275,000,000,000 (Note 15) 23 OTHER PAYABLES VND Ending balance Beginning balance 85,219,286,381 139,664,115,458 Purchase of investments 10,670,827,732 71,020,654,335 Dividend payables 47,229,522,005 42,258,770,386 5,632,658,744 5,211,921,074 21,686,277,900 21,172,769,663 231,568,542,182 232,432,916,731 231,568,542,182 232,432,916,731 316,787,828,563 372,097,032,189 - - (50,187,209,855) (50,187,209,855) (840,000,000) (250,000,000,000) (401,117,316,419) - (250,000,000,000) (428,453,912,462) (678,453,912,462) - 250,000,000,000 428,453,912,462 51,583,254,584 - 49,920,308,050 49,920,308,050 - - 1,662,946,534 - - 250,000,000,000 419,500,079,132 595,137,439,931 1,264,637,519,063 2,534,590,297,548 1,800,120,641,029 5,413,712,808 5,599,348,457,640 5,413,712,808 - 5,413,712,808 4,334,710,938,577 - - - - - VND ANNUAL REPORT 2020 72,839,286,475 29,835,859,455 595,137,439,931 Military Commercial Joint Stock Bank Vietnam Joint Stock Commercial Bank for Industry and Trade TOTAL 111,753,305,427 169,762,687,808 Malayan Banking Berhad – Ho Chi Minh Branch HSBC Bank (Vietnam) Ltd 210,946,300,766 Ending balance (VND) Joint Stock Bank for Foreign Trade of Vietnam Bankers Unsecured February 2021 to May 2021 CONSOLIDATED FINANCIAL STATEMENTS Unsecured From 22 February 2021 to 13 April 2021 Unsecured Unsecured Unsecured From April 2021 to September 2021 From 24 March 2021 to June 20211 From February 2021 to 29 June 2021 Description of collateral Maturity date 24.1 Short-term bank loans The Group obtained short-term loans from banks to finance its working capital requirements The short-term bank loans bear interest at the average rate ranging from 3.5% to 7.8% per annum as the balance sheet date Details are as follows: 1,920,933,807,883 (2,005,392,975,633) - 268,819,364,995 268,819,364,995 Loan from others 5,626,810,657,998 34,697,567,171 TOTAL 236,500,000,000 2,779,176,584,740 229,900,000,000 Domestic straight bonds (Note 24.3 236,500,000,000 1,960,022,090,301 264,597,567,171 Loans from financial institutions (Note 24.2) TOTAL 4,006,530,597 840,000,000 Others 1,151,271,002 4,739,198,675,041 Rentals received in advance from leasing the Quang Trung Tower (*) 6,600,000,000 Long-term Long-term 6,600,000,000 - Others 10,606,530,597 Current portion of domestic 250,000,000,000 straight bonds (Note 24.3) Rentals received in advance from leasing the Quang Trung Tower (*) 7,751,271,002 24,000,000,000 Short-term Beginning balance 366,500,536,555 VND Current portion from banks of long-term loans (Note 24.2) 22 UNEARNED REVENUE - 629,171,187,108 (1,303,248,449,359) 526,830,482,550 1,628,114,442,888 TOTAL 270,271,446,402 70,394,555,829 Loans from banks (Note 24.1) 62,154,950,760 1,662,946,534 Others 678,453,912,462 2,775,175,310 1,652,114,442,888 (1,955,205,765,778) 932,617,111 887,611,982,957 Ending balance Beginning balance Short-term VND Ending balance 105,312,223,213 Allocation of bond issuance expenses 93,543,258,728 Revaluation Interest expense Reclassification 450,689,232,756 Repayment 370,199,655,951 Withdraw Promotions Costs of supply and installation services Beginning balance Ending balance 24 LOANS CONSOLIDATED FINANCIAL STATEMENTS 21 SHORT-TERM ACCRUED EXPENSES | 288 | REE-BOND 2029 (i) 2,318,000,000,000 REEBOND 2017 (ii) 500,000,000,000 Bond issuance costs (46,217,128,070) Allocation of bond issuance costs 12,807,425,618 TOTAL In which: Current portion Non-current portion 2,784,590,297,548 250,000,000,000 2,534,590,297,548 (i) On 28 January 2019, the Company issued 2,318 non-convertible and unwarranted bonds with total value of VND 2,318 billion (the par value per bond is VND billion) These bonds will be repaid after ten (10) years from the date of issue and they will be repurchased on the maturity date at once The proceeds from the bonds are used for the purpose (1) developing in the Company’s office leasing on the existing land fund (E.town office area) in Ho Chi Minh City; (2) payment for land use fees, land acquisition; developing the land fund but not to develop land fund in Thu Thiem New Urban Area, Thu Duc City, Ho Chi Minh City These bonds are secured by 38,365,168 shares of Thac Ba Hydropower Joint Stock Company, 24,932,630 shares of Muong Hum Hydropower Joint Stock Company and 32,000,000 shares of Song Ba Ha HydroPower Joint Stock Company which are owned by the Company (Notes and 16.3) 25 PROVISIONS Provisions represent the provisions for warranties of installation projects, goods and provision of maintenance, setting and repairing Details of movement in provisions are as follows: 419,500,079,132 1,800,120,641,029 2,219,620,720,161 19,825,380 (ii) On 28 September 2017 and 18 October 2017, the Company issued 1,000 non-convertible and unwarranted bonds with total value of VND 1,000 billion (the par value per bond is VND billion) These bonds will be repaid after five (5) years from the date of issuance The Company has the obligation to repurchase these bonds before maturity date from date of issuance as follows: - 250 issued bonds on the date-end of twenty four (24)-month period from the issuance date; - 250 issued bonds on the date-end of thirty six (36)-month period from the issuance date; - 250 issued bonds on the date-end of forty eight (48)-month period from the issuance date; and - 250 issued bonds on the date-end of sixty (60)-month period from the issuance date The proceeds from the bonds are used for the purpose (1) investing in the Company’s projects; (2) financing working capital of the Company These bonds are secured by 35,525,776 shares of Pha Lai Thermal Power Joint Stock Company which are owned by the Company (Note 16.3) VND Goods warranty Beginning balance 344,025,179 Add: Provision provided during the year 1,729,911,823 Less: Reversal of provision during the year Installation project warranty 53,683,321,360 Total 54,027,346,539 38,626,452,472 (65,283,977) 36,896,540,649 (34,318,276,664) Ending balance 2,008,653,025 56,261,585,345 58,270,238,370 In which: Short-term Long-term 2,008,653,025 - 12,768,885,824 43,492,699,521 14,777,538,849 43,492,699,521 (34,383,560,641) ANNUAL REPORT 2020 | 290 CONSOLIDATED FINANCIAL STATEMENTS Amount (VND) TOTAL In which: Current portion Non-current portion 27 November All machineries and equipment are solar panels and other equipment related to rooftop solar power system from REE Solar and/or Subsidiaries 2027 112,600,000,000 VNM160065/1CM HSBC Bank (Vietnam) Ltd 30 September Rights of receivables arising from rental contracts and dividend from Thu Duc Water B.O.O 2021 Corporation during years 88,885,000,000 0100.HDTD,625.16.VIB Vietnam International Commercial Joint Stock Bank – Saigon Branch May 2026 183,909,364,995 SHBVN/BC/HDTD/ REE/201805 Shinhan Bank Vietnam - Land attached assets formed loan of the Company located at No 364 Cong Hoa Street, Ward 13, Tan Binh District, Ho Chi Minh City Land use rights, building and amount receivable from office lease of REE Tower at Doan Van Bo Street, District 4, Ho Chi Minh City (“REE Tower”) 24 Juluy 2024 282,857,142,854 VNM170276CM HSBC Bank (Vietnam) Ltd June 2026 324,000,000,000 - Land use rights and attached assets, including machineries and other asset rights formed loan and equity of the project Muong Hum Hydropower of Muong Hum, the Group’s subsidiary, located at Lao Cai Province ANNUAL REPORT 2020 01/2019-HĐCVDADT/ NHCT106-MHP 19,825,380 575,907,477,564 EVN Financte Joint Stock Company 01/2014/HDCVL/ TCDL/TBW/Phu Lac Joint Stock Commercial Bank For Foreign Trade of Vietnam – Hanoi Branch 30 December All assets related to Phu Lac Wind Power Factory of Thuan Binh, the Company’s subsidiary, 2027 located at Tuy Phong District, Binh Thuan Province Land use rights and assets, including building and structure and other asset rights of the project Etown Central of Song Mai, the Group’s subsidiary, located at 11 Doan Van Bo Street, District 4, Ho Chi Minh City 02 February 2028 651,461,734,748 021C16 Joint Stock Commercial Bank For Foreign Trade of Vietnam – Binh Tay Branch Description of collateral Maturity date Ending balance Original amount VND EUR Bankers 24.2 Long-term financial institution loans The Group obtained long-term financial institution loans and domestic straight bonds to finance its implementation investments project The long-term bank loans and domestic straight bonds bear interest at the average rate in EUR at 1.25% per annum and in VND ranging from 3.59% to 8.85% per annum Details of long-term financial institution loans are as follows: CONSOLIDATED FINANCIAL STATEMENTS 289 24.3 Domestic straight bonds Details of this bond as at 31 December 2020 are as follows: ANNUAL REPORT 2020 VND Current year Contributed share capital Beginning and ending balances Dividends Dividends declared Dividends paid during the year Previous year 3,100,588,410,000 3,100,588,410,000 496,081,481,600 491,095,261,950 558,091,666,800 551,720,731,730 26.3 Shares Number of shares Ending balance Beginning balance Issued shares Issued and paid-up shares Ordinary shares Treasury shares Ordinary shares Shares in circulation Ordinary shares 310,058,841 310,058,841 310,058,841 310,058,841 (1,007,915) (7,915) 309,050,926 310,050,926 The Company’s shares are issued with par value of VND 10,000 per share The holders of the ordinary shares are entitled to receive dividends as and when declared by the Company Each ordinary share carries one vote per share without restriction 26.4 Non-controlling interests VND Beginning balance Net profit for the year Capital contribution during the year Increase due to change in ownership interests in subsidiaries Acquisition of a subsidiary Dividend declared Appropriation to bonus and welfare funds Others Ending balance Current year 704,641,629,219 85,425,570,318 62,500,000,000 23,045,211,804 3,950,647 (113,397,617,591) (1,901,054,217) (664,598,068) 759,653,092,112 Previous year 609,526,301,348 81,030,848,086 46,286,598,920 (30,531,096,915) (1,553,956,629) (117,065,591) 704,641,629,219 26.5 Earnings per share Earnings per share are calculated as follows: Current year Net profit after tax attributable to ordinary equity holders (VND) Net profit after tax attributable to ordinary equity holders for basic earnings (VND) Weighted average number of ordinary shares Earnings per share (VND/shares) - Basic - Diluted Previous year 1,628,076,208,584 1,638,893,522,530 1,628,076,208,584 1,638,893,522,530 310,050,926 310,050,926 5,251 5,251 5,286 5,286 There were no potential dilutive ordinary shares as at the balance sheet date ANNUAL REPORT 2020 | 292 CONSOLIDATED FINANCIAL STATEMENTS (i) In accordance with the Resolution of the Annual General Meeting No 02/2020-DHDCD-NQ dated 15 May 2020, the Company’s shareholders unanimously approved the Proposal of Board of Directors (“BOD”) and Decision of BOD No 02/2020/QD-HDQT-REE to pay dividend by cash for existing shareholders at 16% par value per share The Company finalised the Company's shareholders list on March 2020 to pay dividend at 16%, equivalent to VND 496,081,481,600 and paid on 10 April 2020 11,452,995,827,517 7,114,818,742,145 234,721,594,748 (47,622,230,162) 1,050,489,310,786 3,100,588,410,000 Ending balance - (25,828,660,429) (21,528,250,130) 1,249,669,244 (1,249,669,244) (4,300,410,299) - - Fund reversal Others (2,657,945,783) (47,539,203,502) (2,657,945,783) - (47,539,203,502) - - Appropriation to bonus and welfare funds Purchase of treasury shares (496,081,481,600) (496,081,481,600) - Dividend declared (i) - 1,628,076,208,584 - (83,026,660) 1,050,489,310,786 3,100,588,410,000 Net profit for the year Beginning balance - 10,397,026,910,247 6,005,760,541,830 240,271,674,291 - 1,628,076,208,584 10,397,026,910,247 6,005,760,541,830 240,271,674,291 (83,026,660) 1,050,489,310,786 3,100,588,410,000 Ending balance Current year (170,934,410) (193,722,130) (170,934,410) - 193,722,130 - - - Others Fund contribution (2,446,043,371) (558,091,666,800) (558,091,666,800) (2,446,043,371) - - Appropriation to bonus and welfare funds Dividend declared (i) 1,638,893,522,530 9,318,842,032,298 4,927,769,386,011 1,638,893,522,530 - 240,077,952,161 (83,026,660) - 1,050,489,310,786 3,100,588,410,000 Previous year Beginning balance Share capital - Total Undistributed earnings Investment and Treasury shares development fund Share prenium 26 OWNERS’ EQUITY 26.1 Increase and decrease in owners’ equity | Net profit for the year VND CONSOLIDATED FINANCIAL STATEMENTS 291 26.2 Capital transactions with shareholders and distribution of dividends 27.1 Revenues from sale of goods and rendering of services VND Gross revenues Of which: Current year 5,644,088,890,450 Previous year 4,896,700,913,533 3,478,558,819,570 1,178,170,095,327 987,359,975,553 (4,336,164,483) (4,336,164,483) 5,639,752,725,967 3,180,123,931,086 789,812,440,130 926,764,542,317 (6,869,088,157) (6,869,088,157) 4,889,831,825,376 3,474,222,655,087 1,178,170,095,327 987,359,975,553 3,173,254,842,929 789,812,440,130 926,764,542,317 Revenue from mechanical and refrigeration electrical engineering Revenue from power and water Revenue from real estate and office leasing Less Salses returns NET REVENUES Of which: Revenue from mechanical and refrigeration electrical engineering Revenue from power and water Revenue from real estate and office leasing Selling expenses Labour costs Expenses for external services Others General and administrative expenses Labour costs Expenses for external services Goodwill amortization Provision (reversal of provision) for doubtful receivables Others TOTAL Current year 82,735,361,072 51,075,800,309 13,368,630,579 18,290,930,184 283,713,770,081 155,171,831,730 33,197,674,986 27,584,382,076 22,011,689,096 45,748,192,193 366,449,131,153 VND Previous year 78,371,474,365 59,177,053,722 4,592,541,238 14,601,879,405 221,581,896,835 128,121,869,370 32,677,579,886 5,077,446,716 (1,951,652,617) 57,656,653,480 299,953,371,200 31 PRODUCTION AND OPERATING COSTS 27.2 Finance income Current year 162,111,197,783 37,431,419,511 17,947,490,046 4,252,928,927 62,823,994 221,805,860,261 Interest income Dividends income Gains from disposal of investments Foreign exchange gains Others TOTAL VND Previous year 242,385,814,947 37,485,859,023 161,224,446,631 705,825,868 170,044,898 441,971,991,367 Current year 2,269,863,886,095 794,864,292,523 551,985,969,936 Raw materials and merchandise Expenses for external services Labour costs Depreciation and amortisation (Notes 12, 13, 15 and 17) Others expenses TOTAL VND Previous year 1,714,456,914,767 850,412,802,520 504,683,721,827 321,516,852,418 182,619,094,137 288,235,699,180 4,226,466,700,152 162,564,615,946 3,414,737,149,197 28 COSTS OF GOODS SOLD AND SERVICES RENDERED VND Cost of mechanical and refrigeration electrical tengineering Cost of power and water Cost of real estate and office leasing TOTAL Current year 2,999,731,156,007 738,613,625,898 295,542,275,272 4,033,887,057,177 Previous year 2,786,748,445,131 543,830,787,115 313,039,622,162 3,643,618,854,408 29 FINANCE EXPENSES Interest expense and allocation of bond issuance expenses Foreign exchange losses Loss from disposal of investments Reversal of provision for investments Others TOTAL 293 | ANNUAL REPORT 2020 32 CORPORATE INCOME TAX The Group has the obligation to pay corporate income tax ("CIT") at the rate from 5% to 20% of taxable profits earned The tax returns of the Group are subject to examination by the tax authorities Because the application of tax laws and regulations to many types of transactions is susceptible to varying interpretations, the amounts reported in the consolidated financial statements could be changed at a later date upon final determination by the tax authorities 32.1 CIT expense Current year 421,839,558,764 53,322,528,553 313,895,454 (3,784,212,013) 2,797,748,852 474,525,519,610 VND Previous year 414,430,399,740 385,343,811 6,158,738,671 (35,690,011,644) 371,846,890 385,656,317,468 VND Current year CIT expense Adjustment for under accrual of tax from prior years Current CIT expense Deferred tax expense (income) TOTAL Previous year 199, 252,483,820 213,185,202,317 6,695,756,776 210,931,705 205,948,240,596 213,396,134,022 4,135,453,010 (13,110,506,884) 210,083,693,606 200,285,627,138 ANNUAL REPORT 2020 | 294 CONSOLIDATED FINANCIAL STATEMENTS CONSOLIDATED FINANCIAL STATEMENTS 30 SELLING EXPENSE AND GENERAL AND ADMINISTRATIVE EXPENSES 27 REVENUES 295 | ANNUAL REPORT 2020 ANNUAL REPORT 2020 | 296 CONSOLIDATED FINANCIAL STATEMENTS 1,745,680,000 1,963,890,000 Associate Dividend income 1,904,688,000 1,904,688,000 Dividend income 2,652,580,000 3,789,400,000 Dividend income 3,566,984,000 4,505,664,000 Dividend income 3,947,960,000 2,368,776,000 Dividend income 7,680,000,000 34,560,000,000 Dividend income 9,127,680,000 10,839,120,000 Dividend income 13,890,503,700 27,781,007,400 Dividend income 16,350,180,000 4,479,872,900 14,506,800,000 418,873,500 Dividend income Sales of goods 18,000,000,000 6,000,000,000 Dividend income 19,717,722,000 13,470,424,687 Dividend income 42,253,308,000 46,948,120,000 Dividend income 47,157,739,500 31,438,493,000 Dividend income 80,000,000,000 16,000,000,000 Dividend income 89,531,220,000 44,765,610,000 Dividend income 208,969,902,000 14,021,811,662 24,154,881,179 104,484,951,000 Dividend income 500,000,000,000 98,600,000,000 VND 378,000,000,000 Bonds Loan receivable Interest income Nha Be Water Supply Joint Stock Company (4,135,453,010) 13,110,506,884 Associate 13,573,629 Gia Dinh Water Supply Joint Stock Company (28,743,038) Associate Net deferred tax (expense) income (245,469,052) (2,347,797,874) Ninh Binh Thermal Power Joint Stock Company 157,017,289 185,760,327 33,850,243,817 37,985,696,827 Associate (753,726,578) Others Deferred tax assets Thu Duc Water Supply Joint Stock Company (999,195,630) Provision for investments Associate (644,537,904) Binh Dien Hydropower Joint Stock Company 12,694,991,571 (1,264,641,757) Associate (6,068,142,701) 2,444,111,068 Tan Hiep Water Investment Joint Stock Company 9,295,468,110 1,179,469,311 Associate 3,227,325,409 Khanh Hoa Water Supply Joint Stock Company Unbilled contract profit (loss) Provision for obsolete inventories Associate (348,103,559) Idico Srok Phu Mieng Hydropower Joint Stock Company 6,332,235,142 Associate 315,377,213 Doan Nhat Mechanical Electrical Joint Stock Company 6,647,612,355 Associate Unrealised profit Saigon Water Investment and Trading Joint Stock Company 3,912,536,880 Associate (170,155,859) (9,269,221,520) Saigon Real Estate Joint Stock Company 6,408,529,916 18,973,185,942 Associate 7,525,520,745 9,703,964,422 Thu Duc Water B.O.O Corporation 13,934,050,661 Accrued operating expenses Associate Provision for doubtful receivables Central Hydropower Joint Stock Company Previous year Associate Current year Song Ba Ha Hydropower Joint Stock Company Ending balance Beginning balance Associate Consolidated income statement Thac Mo Hydropower Joint Stock Company Consolidated balance sheet Associate VND Pha Lai Thermal Power Joint Stock Company 32.3 Deferred tax The following are the deferred tax assets and liabilities recognised by the Group, and the movements thereon, during the current and previous year Associate 32.2 Current tax The current tax payable is based on taxable profit for the year The taxable profit of the Group for the year differs from the profit as reported in the consolidated income statement because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are not taxable or deductible The Group’s liability for current tax is calculated using tax rates that have been enacted by the balance sheet date Vinh Son – Song Hinh Hydropower Joint Stock Company (181,421,379,733) (7,496,951,805) 9,177,322,082 4,548,953,108 1,015,489,343 (9,790,737,113) 210,931,705 200,285,627,138 Previous year (182,955,118,657) (7,486,283,902) 8,494,160,381 9,654,943,815 5,516,876,415 (3,204,470,033) 6,695,756,776 (11,448,325,045) 99,059,354 210,083,693,606 Current year Adjustments to increase (decrease) Share of profit of associates Dividends income not subject to CIT Non-deductible expenses Tax losses of subsidiaries Goodwill amortization Tax loss of subsidiaries carried forward Adjustment for under accrual of CIT in prior years Differences in tax rate of subsidiaries Others CIT expense Transactions 384,041,999,551 Relationship 384,717,094,502 Related parties At CIT rate of 20% applicable to the Group Significant transactions with related parties during the year were as follows: Accounting profit before tax VND Previous year 1,920,209,997,754 Related company transactions include all transactions undertaken with other companies to which the Group is related, either through the investor, investee relationship or because they share a common investor and thus are considered to be a part of the same corporate group Current year 1,923,585,472,508 33 TRANSACTIONS AND BALANCES WITH RELATED PARTIES CONSOLIDATED FINANCIAL STATEMENTS Reconciliation between CIT expense and the accounting profit multiplied by CIT rate is presented below: Associate Associate Associate Associate Associate Associate Other short-term receivables Vinh Son – Song Hinh Hydropower Joint Stock Company Idico Srok Phu Mieng Hydropower Joint Stock Company Pha Lai Therma Power Joint Stock Company Thu Duc Water B.O.O Corporation Saigon Real Estate Joint Stock Company Khanh Hoa Water Supply Joint Stock Company Associate Associate Held-to-maturity investment Vinh Son – Song Hinh Hydropower Joint Stock Company Short-term advance from customer Doan Nhat Mechanical Electrical Joint Stock Company Associate Short-term loan receivable Vinh Son – Song Hinh Hydropower Joint Stock Company ANNUAL REPORT 2020 TOTAL Associate Short-term trade receivable Thu Duc Water B.O.O Corporation | VND Remuneration and bonus of the Board of Directors Salaries and bonus of the Management TOTAL Current year 4,410,000,000 13,336,284,172 17,746,284,172 Previous year 3,480,000,000 14,379,643,000 17,859,643,000 34 COMMITMENTS 34.1 Operating lease commitments – when the Group is a lessee The Group leases plant for its plant in Tan Binh Industrial Zone, warehouse and offices under operating lease agreements The minimum lease commitment as at balance sheet date under the operating lease agreements is as follows: Less than one year From one to five years Over five years TOTAL Ending balance 14,699,569,417 3,974,537,779 3,478,380,389 22,152,487,585 VND Beginning balance 10,034,793,000 11,932,551,000 21,967,344,000 34.2 Operating lease commitments – when the Group is a lessor The Group leases out its assets under operating lease arrangements The future minimum rental receivables as at the balance sheet date under the operating lease agreements is as follows: Less than one year From one to five years Over five years TOTAL Ending balance 911,558,846,012 1,358,352,229,626 480,386,416,281 2,750,297,491,919 VND Beginning balance 731,326,804,346 1,182,322,904,182 419,896,368,945 2,333,546,077,473 34.3 The agreement of bond payment guarantee commitment On 28 January 2019, the Company signed the agreement with Credit Guarantee and Investment Facility (“CGIF”) – A trust fund of the Asian Development Bank Accordingly, CGIF issued Guarantee Payment for Bondholders of 2,318 bonds (Note 24.3) that were issued by the Company and the Company commited to pay guarantee fee of 1.40% per annum on the total value of bonds in circulation within 10 years from the issue date 35 SEGMENT INFORMATION For management purposes, the Group is organised into business units based on their products and services, and has three reportable operating segments as follows: • Mechanical and refrigeration electrical engineering; • Real estate and office leasing; and • Power and water Management monitors the operating results of its business units separately for the purposes of making decisions about resources allocation and performance assessment Segment performance is evaluated based on operating profit or loss which in certain aspects, as explained in the table below, is measured differently from operating profit or loss in the consolidated financial statements Group financing, including finance costs and finance revenue, and income taxes are managed on a Group basis and are not allocated to operating segments ANNUAL REPORT 2020 | 298 CONSOLIDATED FINANCIAL STATEMENTS Terms and conditions of transactions with related parties: The sales to and purchases from related parties are made on terms equivalent to those that prevail in arm’s length transactions Outstanding balances at 31 December 202- are unsecured (except bond at note 16.2), interest free and will be settled in cash For the year ended 31 December 2020 and 31 December 2019, the Company has not made any provision for doubtful receviables relating to amounts owed by related parties This assessment is undertaken each financial year through the examination of the financial position of the related party and the market in which the related party operates (182,305,287) Sales of goods 175,548,098,575 90,998,806,979 - - 7,134,246,575 116,094,390,000 23,474,060,000 19,717,722,000 9,127,680,000 36,129,108,579 27,781,007,400 27,088,691,000 Interest income Dividend income Dividend income Dividend income Dividend income Dividend income 500,000,000,000 500,000,000,000 Bonds 98,600,000,000 466,600,000,000 94,626,645 Others Lending - Beginning balance Transactions Relationship Related parties Amounts due to and due from related parties at the balance sheet dates were as follows: Ending Balance VND CONSOLIDATED FINANCIAL STATEMENTS 297 Transactions with other related parties Remuneration of members of the Board of Directors and management: The segment results for the year ended 31 December 2019 are as follows: VND VND Mechanical and refrigeration electrical engineering Real estate and office leasing Electricity, water Consolidated Sales - Total segment sales - Inter-segment sales 4,516,002,947,316 1,106,484,479,049 1,180,677,618,844 6,803,165,045,209 (1,041,780,292,229) (119,124,503,496) (2,507,523,517) (1,163,412,319,242) TOTAL 3,474,222,655,087 987,359,975,553 1,178,170,095,327 5,639,752,725,967 Results - Segment profit after tax (*) - Unallocated profit after tax 246,434,665,286 512,870,752,263 996,024,193,605 1,755,329,611,154 (41,827,832,252) Total profit after tax Of which: Parent company - Segment profit after tax - Unallocated profit after tax Non-controlling interest 1,713,501,778,902 225,745,725,807 514,738,329,867 929,419,985,162 1,669,904,040,836 (41,827,832,252) Sales - Total segment sales - Inter-segment sales TOTAL Results - Segment profit after tax (*) - Unallocated profit after tax Real estate and office leasing Electricity, water Consolidated 789,812,440,130 5,498,767,151,367 3,681,812,128,903 1,027,142,582,334 (508,557,285,974) (100,378,040,017) (608,935,325,991) 3,173,254,842,929 926,764,542,317 789,812,440,130 4,889,831,825,376 245,320,020,960 483,955,759,693 1,034,268,274,308 1,763,544,054,961 (43,619,684,345) Total profit after tax 1,719,924,370,616 Of which: Shareholders of the parent - Segment prot after tax 245,314,147,648 - Unallocated profit after tax 461,064,311,951 976,134,747,276 1,682,513,206,875 (43,619,684,345) 1,638,893,522,530 20,688,939,479 (1,867,577,604) 66,604,208,443 85,425,570,318 The segment assets and liabilities for as at 31 December 2020 are as follows: - Segment assets Mechanical and refrigeration electrical engineering 2,750,140,532,306 3,462,148,899,388 11,173,696,877,320 - Unallocated assets 17,385,986,309,014 20,530,453,734,936 - Segment liabilities 2,416,375,784,371 - Unallocated liabilities 1,179,492,455,715 2,251,591,724,572 TOTAL LIABILITIES (*) Including in segment profit after tax is share of profit of associates 5,873,312 22,891,447,742 58,133,527,032 81,030,848,086 The segment assets and liabilities for as at 31 December 2019 are as follows: 3,144,467,425,922 TOTAL ASSETS Non-controlling interest 5,847,459,964,658 2,470,344,850,649 8,317,804,815,307 - Segment assets 2,801,165,978,704 3,293,606,194,508 10,856,725,462,257 - Unallocated assets 16,951,497,635,469 2,671,267,160,247 TOTAL ASSETS 19,622,764,795,716 - Segment liabilities 2,242,453,330,401 - Unallocated liabilities 1,226,960,916,233 2,670,476,179,466 TOTAL LIABILITIES 6,139,890,426,100 2,381,205,830,150 8,521,096,256,250 (*) Including in segment profit after tax is share of profit of associates 36 EVENT AFTER THE BALANCE SHEET DATE There have been no significant events that has arisen since the balance sheet date that requires adjustment or disclosure in the consolidated financial statements of the Group PHAM THI UYEN PHUONG Prepaper HO TRAN DIEU LYNH Chief Accountant HUYNH THANH HAI Gẻnal Director March 2021 299 | ANNUAL REPORT 2020 ANNUAL REPORT 2020 | 300 CONSOLIDATED FINANCIAL STATEMENTS CONSOLIDATED FINANCIAL STATEMENTS The segment results for the year ended 31 December 2020 are as follows: CÔNG TY CỔ PHẦN CƠ ĐIỆN LẠNH 364 Cộng Hịa, Phường 13, Quận Tân Bình, TP HCM, Việt Nam Điện thoại: +84 28 3810–0017 FAX: +84 28 3810–0337 EMAIL: ree@reecorp.vn REFRIGERATION ELECTRICAL ENGINEERING CORPORATION 364 Cong Hoa, Ward 13, Tan Binh District, Ho Chi Minh City, Vietnam TEL: +84 28 3810–0017 FAX: +84 28 3810–0337 EMAIL: ree@reecorp.vn www.reecorp.com