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ANNUAL REPORT 2015

REINFORCING PRINCIPLES

Corporate Values

Content

About ACBS

ACBS 2015 Review

Message from the Chairman and CEO

Vietnam Economic 2015 and2016 Outlook

Vision – Mission 04

Core Values 05

History of development 14

Organizational chart 16

Divisions 24

01

03

05

02

04 In 2015, ACB Securities Company (ACBS) was honored by the HNX as an exemplary member and a Top 10 securities firm in terms of brokerage market share at the HOSE and HNX. ACBS delivers financial services for both institutional and individual customers. We provide professional investment advisory and trusted research.

With the financial strength and huge customer databse of its parent company, Asia Commercial Bank, ACBS leverages its human resources and best practices, applying modern technology to best serve our customers.

Since its establishment in 2000, continuous growth in both capital and business scale have made ACBS one of the leading securities firms in Vietnam. Throughout its 15 year history of development and growth, ACBS has always placed in the Top 10 list of brokerages in terms of market share nationwide.

VISION - MISSION - CORE VALUES

Vision – Mission

ACBS aims to become one of Vietnam’s most trusted and modern investment banks, and to always be our clients’ first choice

To return to be among the top three brokers in Vietnam in terms of market share

Contribute to enhance intergrity, transparency and professionalism in the Vietnamese securities industry.

Core Values

At ACBS, we build, develop and adhere to our corporate values:

• Transparency and Prudence

• Courtesy

• Flexibility and Resiliency

54 ACB Securities Vision – Mission - Core Values

MESSAGE FROM THE CHAIRMAN AND CEO

2015: A year of changes Global Growth Deceleration

The global economic picture remained mixed in 2015 with global growth estimated at 3.1%, 0.3 percentage points lower than 2014, according to the International Monetary Fund (IMF). Growth in emerging markets and developing economies (+4%), which contributed about 70% of the global growth, continued to slow for the 5th consecutive year. The slump in global oil prices, slowing economic ac-tivity in China, tightening US monetary policy, as well as instability of the EU market were significant factors that shaped the global economy in 2015.

The economic slowdown in China was accompanied by volatility in the Chinese stock market and the Yuan devaluation, which triggered currency weakening in many Asian countries. Oil prices suffered one of the worst years in the past decade, sliding to an 11-year low of USD37 per barrel by the year-end from a peak of USD107 in 2014. In contrast with monetary easing in most of the rest of the world, the Fed decided on Dec 16thto raise US interest rates by 0.25% for the first time in nearly a decade. This decision, a sign of a healthier US economy, was widely expected by the market.

The global stock market fell in 2015, with the MSCI All Country World Index sliding 4.3%.The biggest losses were seen in the emerging markets, together with more modest declines in other key indices: S&P 500 (-0.73%), FTSE 100 (-4.9%).

Vietnam economy: the bright point

Despite the global economic slowdown, Vietnam’s economy performed well in 2015. GDP increased by 6.7%, outperforming the government plan of 6.2%, while inflation was at a 10-year low of 0.6%. The industri-al and construction sectors were the main contributors to GDP growth with a 9.6% increase. However, public debt became a major concern, with domestic public debt reaching USD 110 billion, equivalent to more than 60% of GDP. The Government addressed the issue with a strong commitment to tightly control government expenditures.

Andrew Colin Vallis Chairman

In 2015, Vietnam also progressed with a number of important free-trade agreements which will boost the country’s growth in future years. The most important of these agreements were the Trans Pacific Partnership (TPP), with 11 other member countries including the US, and the European Free Trade Agreement which is set to come into force in 2018.

2015 was also a year of positive progress in the SBV’s effort to restructure Vietnam’s banking sector. Policy fo-cused on credit growth, up 18% in 2015, and on contin-ued efforts to reduce NPLs and restructure the weaker banks. The SBV also introduced a new central exchange rate system, to reduce volatility in the exchange rate and to prevent dollarization.

76 ACB Securities Message from the Chairman and CEO

ACBS in 2015

ACBS continued to restructure and build its business in 2015. From a financial perspective, ACBS maintained a low level of leverage in the balance sheet and focused on low-risk business. 70% of ACBS’s investable funds were employed in margin activities to support the brokerage business while investments were placed largely in fixed income securities.

ACBS continued to prioritize brokerage activities. In 2015, ACBS changed the organizational structure to be more responsive to customers’ demands and market changes, while maintaining a high standard of risk management. ACBS also developed a new compensation plan for its bro-kers as well as expanding its research capacity. Meanwhile, ACBS changed the margin policy to reduce risk and attract new customers. The IT system was upgraded to assure sta-ble operations and service quality.

On corporate culture and on branding, ACBS expanded the role of the Marketing and Communication Depart-ment, initiated a new corporate culture of integrity, devo-tion, and versatility, and launched a new corporate identity presenting youth, energy, creativity, and reliability. With these improvements, ACBS is poised to be more compet-itive in 2016.

With a conservative strategy and many changes to its op-erations, ACBS lost its brokerage market share in 2015 to more aggressive competitors. On a normalized basis, profit before tax fell 29% yoy, due mainly to lower market vol-umes and ACBS’s risk-averse stance.

2016 Outlook

2016 will continue to be a challenging year for the global economy with projected growth of 3.4%. The first few months of the year have seen continued volatility in oil prices and in other commodities. There is uncertainty about the strength of the US economic recovery and therefore, the speed at which the Fed will raise rates further. China’s economy is expected to continue to slow, which may lead to Yuan weakening and volatility in other currencies.

Meanwhile, Vietnam’s economy in 2016 is expected to show continued growth. With stable fundamentals and attractive demographics, Vietnam is considered as one of the higher growth economies in 2016.

Vietnam’s capital markets are expected to have significant changes in 2016. Firstly, foreign ownership limitations

are expected to be removed/extended to attract foreign capital. Secondly, a number of large IPOs, including that of Mobifone, are planned in 2016. Thirdly, new products, including intraday trades and derivatives markets, are expected to be launched later this year. With all these developments, the capital markets will play a bigger role in the financial system and create growth opportunities for securities companies.

With such opportunities from the listed market, privatization and the private equity market, ACBS aims to have a more balanced business strategy in 2016 with contributions from investment banking and proprietary trading, whilst the brokerage business remains the major business line. Regarding proprietary investment, the investment limits and sizes will be strictly monitored. For the brokerage business, IT system upgrades, product development, stable margin policies and customer base diversification are major strategies for ACBS to win back market share in 2016. We expect ACBS to have a stronger performance in 2016, with improved diversification of income and a stronger core brokerage business

.

Trinh Thanh Can Chief Executive Officer

MESSAGE FROM THE CHAIRMAN AND CEO

98 ACB Securities Message from the Chairman and CEO

ABOUT ACBS

ACB securities Co., Ltd (ACBS) was established as a 100% owned subsidiary of Asia Commercial Bank under business license No. 06.UBCK GPHĐKD issued by the State Securities Commission of Vietnam.

Head office 41 Mac Dinh Chi, Đa Kao Ward, District 1, HCMC

The Company

Chartered capital

VND 1,500 Bil

Equity capital

more than VND 1,800

Bil

Total assets

more than VND 2,200

Bil

1110 ACB Securities About ACBS

Products and Services Networks

Related parties

Technology

Securities brokerage

Securities services

Financing services

Corporate finance services

Underwriting

Research

Fund management (operated by ACB Capital)

Since January 2, 2007, ACBS’s information system has been centralized on a real-time basis. This assured safe transactions and convenience for clients throughout our

branch network.

The system is fully integrated with ACB’s information system on a real time basis. This accelerates clients’ order placing process while reserving security for cash accounts.

Currently, ACBS is a member of Society for Worldwide Interbank Financial Telecommu-nication (SWIFT). This assures our capability to serve our international clients 24 hours

per day.

Head office 41 Mạc Đĩnh Chi, Đa Kao ward, district 1, HCMC

T: (08) 38 234 160

Truong Dinh branch 107N Trương Định, ward 6, district 3, HCMC

T: (08) 54 043 054

Cho Lon sub-branch 747 Hồng Bàng, district 6, HCMC

T: (08) 39 695 548

Minh Khai sub-branch 442 Nguyễn Thị Minh Khai, ward 5, district 3, HCMC

T : (08) 38 328 248

Vung Tau branch 2 floor, A3-A8 111 Hoang Hoa Tham, Ward 2, Vung Tau City

T: (064) 3597 104

Parent company ASIA Commercial Bank (ACB)

Subsidiary company ACB Capital Management Company Limited

Can Tho branch 17 Nam Kỳ Khởi Nghĩa, P. Tân An, Cần Thơ

T: (0710) 3783 638

Hanoi branch 10 Phan Chu Trinh, Hoan Kiem district, Hanoi City

T: (04) 39 429 395

Hai Phong branch 15 Hoang Dieu, Hong Bang District, Hai Phong City

T: (031) 3569 998

Đa Nang branch 218 Bach Dang, Phuoc Ninh Ward, Hai Châu District, Da Nang City

T: (0511) 3843 444

Khanh Hoa branch 80 Quang Trung, Loc Tho Ward, Nha Trang, Khanh Hoa Province

T: (058) 3522 762


2011 - 2015

History of development

2000 - 2005 2006 - 201006/2000

End of June 2000, ACB Sercurities Co., Ltd (“ACBS”) established as a 100% owned subsidiary of ACB under business license No. 06.UBCK GPHĐKD is-sued by State Securities Commission of Vietnam.

Initial investment amounted to VND 43 billion (Forty three billion Vietnam Dong).

Main office located at 442 Nguyen Thi Minh Khais-treet, Ward 5, District 3.

ACBS went into operation simultaneously with Vietnam securities market and Ho Chi Minh Stock Exchange.

Since its establishment, ACBS has been authorized by the State Securities Commission of Vietnam to provide the followings securities services in accor-dance with the prevailing laws:

• Securities brokerage;

• Securities dealing;

• Securities trading;

• Securities underwriting;

• Securities investment advisory; and

• Securities investment portfolio management.

2006

May 2006, total investment increased for the second time (2) up to VND 250 billion (Two hundred billion Vietnam Dong).

Moved its head office to 9 Le Ngo Cat street, Ward 7, District 3.

2007

September 2007, total investment changed for the third time (3), increased to VND 500 billion (Five hundred billion Vietnam Dong).

Officially introduced the online trading system which allows trading on the Internet with “Digital certificates” used for security.

2008

September 2008, ACBS increased its total investment for the fourth time (4). Total investment increased to VND 1,000 billion. (One thousand billion Vietnam Dong).

Head office moved to 107N Truong Dinh Street, Ward 6, District 3.

September 2008, Securities investment portfolio management service was discontinued following a decision from the State Securities Commission of Vietnam.

2009

November 2009, ACBS increased total investment for the fifth time (5), up to VND 1,500 billion (One thousand and five hundred billion Vietnam Dong).

Brand positioning with core values:

- Safety - Security

- Precision - Innovative

2010

10-year Establishment Anniversary for ACBS.

Introduced Call center 1900 555533.

Changed security option from “Verisign SSL” to USB Token for Internet trading.

2011

ACBS had the honor of receiving Asiamoney Magazine’s awards for:

• Best customer service provider;

• Best trading implementation;

• Best conference and event organizer;

• Best investment opportunities and business meeting organizer;

• Best Broker.

2012

ACBS officially introduced electronic communication solution SWIFT with foreign depository banks.

Ranked 3rd in brokerage market share on both HOSE and HNX.

2013

Introduced ACBS Trading application for mobile devices using iOS.

2014

June 2014, ACBS moved its head office to 41 Mac Dinh Chi Street, Ward Da Kao, District 1.

Changed its core values to: Straightforward, Efficient, Harmonious, Careful, Innovative

2015

Officially introduced a new modern trading system which is more secure.

Introduced ACBS Trading application for Desktop, Laptop, and mobile decives using Android operating system.

Had the honor of being in the top 10 representative securities company in the Vietnamese securities market.

09/2005

September 2005, ACBS changed its total investment for the first time (1), increased to VND 100 billion (One hundred billion Vietnam Dong).


Organizational chart

OWNER

BOARD OF DIRECTORS

SUPERVISORY BOARD

Broad of Human Resourcesand Benifits

Broad FinancialAudit

Treasury and InvestmentDepartment

Brokerage Management department

ResearchDepartment

Human resources & Administration Department

Securities ServicesDepartment

Corporate finance Department

DistributionDepartment

Marketing & Communication Department

Accounting Department

Transaction ManagementDepartment

Institutional Client Department

Risk management Department

Internal AuditDepartment

Information TechnologyDepartment

ComplianceDepartment

Broad of ALCO

ACB Capital ManagementCompany Limited (ACBC)

Broad of RiskManagement

BOARD OF MANAGEMENT

INVESTMENT BANKING DIVISION

BROKERAGE AND INVESTMENTDIVISION

BUSINESS SUPPORTING DIVISION

SUPPORTINGDIVISION

OPERATIONDIVISION


Human Resources

Human resources are the most valuable asset, playing an important role in ACBS’s operations. For that reason, throughout the progress of the Company’s establishment and development, ACBS has continuously been building its remuneration and hiring policies and managing human resources transparently, fairly, and objectively to stay competitive in attracting and keeping talents in order to satisfy strict requirements in the securities industry and the financial market in general.

Remuneration and Training policy

The remuneration policy for ACBS’s staff is based on the results associated with business operations and the quality of customer service.

In addition to basic salary policy, there are also performance bonuses, 13th month salary and bonuses in accordance with the performance of individuals and units. ACBS focuses on building a competitive incentive policy to attract and retain talents for direct business units as well as the entire staff.

All permanent employees of ACBS are entitled to insurance policies such as social security, unemployment insurance and health insurance in accordance with the law.

Besides welfare policies for workers in accordance with the law, ACBS seeks to enrich the lives of its staff through other benefits, such as accident insurance policies for employees, voluntary health insurance, periodic health

ACBS aims to build an efficient and friendly working environment for all staff to bring out the best in their abilities, knowledge and skills. In addition, ACBS encourages and promotes the spirit of learning, skill development and knowledge sharing between the company’s staff.

ACBS’s workforce is comprised of highly qualified experts who were trained locally and abroad, with specialized skills and rich experience in the financial sector. Over 99% of employees have obtained at least a University degree, of which, 20% hold Master’s degrees from prestigious local and foreign institutions.

examinations, bonuses on the occasion of major National holidays (International women’s 8/3, 1/6 International children, Moon festival ...), support for free lunches, work uniforms and annual vacation.

ACBS takes great pride in its training policies and sees attracting and developing talent as an essential factor in the success of the Company. Last year, ACBS increased the number of training programs for its staff including soft skill training sessions at the Training Center of ACB Group, professional securities certificates courses and professional certificates related to ACBS’s operation.

As of 31 December 2015, the total number of ACBS’s staff having obtained a professional certificate is 180, accounting for 75% of the total staff.

ACBS’s workforce has many years of experience working in the financial and securities sector and display proactive and innovative attitudes.

Level

Age

As of 31 December 2015, ACBS’s total staff count is 241, in which, 55% are female.

Post-graduate

<30

Undergraduates

30-40

Others

>40

1%

20%

79%

10%

24%

67%


Mr Andrew Colin Vallis Chairman

Mr. Andrew is the Deputy Chairman of the Board of Asia Commercial Bank (ACB) since April 2013, acting as a senior representative of Standard Chartered Bank (UK). He currently also holds other important positions in the bank such as Chairman of the Risk Management Board, Chairman of the Board, and Vice President of Strategic Investment Board.

Since joining Standard Chartered Bank in 2002, Mr. Andrew Vallis held senior leadership positions such as: Co-Chair of Investment Banking Global Investment, in Singapore, Co-Chair Wholesale Banking European markets in London and President of Global business Development Division and Capital, in Hong Kong.

Prior to joining Standard Chartered, he was an expert on Capital Markets, Corporate Finance and Debt Derivatives at BZW and nearly 15 years in the markets at Barclays Capital in Hong Kong, Singapore and Malaysia.

Andrew graduated with Honours in Law at the University of Nottingham, UK and is certified as a member of the Association of Accountants with PwC, London.

Mr Kollagunta Sreenivasan Gopalaswamy Member

Mr. Gopalaswamy is currently the Head of Financial markets at ACB (since 2013) and a senior representatives of Standard Chartered Bank (UK). Before that, he held other important positions with ACB such as Advisor of the Financial Markets Division (2011-2012).

Since joining Standard Chartered Bank in 2000, Mr. Gopalaswamy has held senior leadership positions such as: Managing Director in charge of market risk of ASEAN Regional (2006-2007), Director of ALM Foreign exchange and block funding (2004-2005) at Standard Chartered bank in Hong Kong and China, Foreign exchange Division Director ALM and Capital at Standard Chartered Bank of India (1995-2000).

Prior to joining Standard Chartered, he had been working in the banking and financial markets for nearly 10 years in international banks such as ANZ Grinlays, Indian, American Express Bank Mumbai India.

He graduated with a Masters of Management from the Academy of Management, India.

Mr Tran Trong Kien Member

Mr. Tran Trong Kien holds BA in English from the Hanoi National University and Master of Business Administration from the University of Hawaii. He held various leadership positions while working at Dong Da Tourism Co., Ltd, Lu Hanh Cholon and Victoria Hotels. He was nominated by the Managing Board and elected as a Board member by ACB’s shareholders on 26 December 2012. Currently, he is Chairman and CEO of Thien Minh Travel JSC.

Mr. Tran Trong Kien was appointed Member of Management Board of ACBS since January 2013

Mr Tu Tien Phat Thành viên

Mr. Tu Tien Phat officially joined the ACB group in 1996. He is currently Executive Vice President of ACB and a member of the Council Members of ACBS.

Mr. Tu Tien Phat has an MBA from the HCMC University of Economics and 19 years of experience in Finance and Banking

Ms Nguyen Ngoc Nhu Uyen Member

Ms. Nguyen holds a BA in Information Technology at Monash University - Australia and holds a Master Degree in Business Administration - University of Melbourne - Australia in 2008. She has 15 years experience working in financial institutions and banks.

She began working at Arthur Andersen in 2001 as a business consultant. In 2003, Ms. Uyen joined KPMG Vietnam to work as a senior consultant. Since 2004, she held leadership positions at major financial institutions such as investment director at Mekong Capital Fund (2004-2006) and director of operations at Dragon Capital Investment Fund (2008-2014).

Ms. Nguyen Ngoc Nhu Uyen officially joined the ACB group since 04/2015 as Chief Investment Officer and a member of the Council members ACBS since July 2015.

Board of Directors

In 2015, The Board convened 06 meetings to discuss and approve ACBS’ policies and regulations and to provide guidance to ACBS’s business. Key decisions include:

The committees under the Board work robustly to fulfill its duties to assist the Board. The Risk Committe has convened every two months to review the risk assessments and limits to ensure that they are up to date on market conditions. Proposals to improve the effectiveness of the risk management system are routinely submitted to the Board. These practices are aimed to provide ACBS the best safeguard against stock market volatility.

The business plan for 2015

The Code of Conduct

The Supervisor’s working process

The working regulations for Management

The establishment of the sub-branch office

The bank loan and bond issuance

The investments


Board of Management Supervisory Board

Mr Trinh Thanh Can CEO

Mr. Trinh Thanh Can obtained a BA of Business Administration in Finance from the University of Northridge, California, USA, then worked at Tower Asset Management and Downey Savings Bank from 2000 to 2003. He has 15 years of experiences working in the financial sector of Vietnam’s Securities Industry.

Mr. Can started his career in Vietnam in 2003 with VinaCapital Fund as a senior investment officer. In 2005 he joined HSBC for as Director of Customer Relations Division Multinational Corporation and Financial Institutions. Since 2007, he started holding management positions at leading securities firms as Director of Analysis of Ban Viet Securities (2007-2011), Managing Director of Investment Banking Corporate Finance at HSC Securities firm from 2011 to March 2015.

Mr Trinh Thanh Can was appointed as the Chief Executive Officer since June 2015 ACBS.

Ms Le Thi Phuong Dung Vice President

Ms. Le Thi Phuong Dung holds a BA from the University of Economics, Ho Chi Minh City, and a BA in English from the University of Science Ho Chi Minh City. She has over 22 years of experience in the fields of Finance and Banking and has held key leadership positions at ACB.

With extensive experience and in-depth knowledge about the operations of ACB’s systems, Ms. Le Thi Phuong Dung holds the position of Vice President of ACBS - in charge of Operations and Supporting departments.

Mr Huynh Hieu Nghia Supervior

Mr. Huynh Hieu Nghia graduated from Accounting and Banking School of Ho Chi Minh City and has over 21 years of experience working in the financial and banking sector. Mr. Nghia is currently the Head of Internal Audit at Asia Commercial Bank.

Currently, the Supervisory Board has one (01) member


Divisions

Brokerage and Investment Advisory Division

Brokerage and Investment Advisory Division includes the Distribution Channels and Brokerage Management Department.

The Distribution Channel Department is in charge of searching, developing, and managing client accounts as well as providing brokerage products and services for individual clients, which includes investment advisory services and up-to-date insight of market and regulatory information.

ACBS’s Distribution Channels operate 10 units, which include: 01 Stock Exchange Center (at ACBS Headquarters), 8 branches and 1 Transaction Office. ACBS’s Distribution Channels are available in most major provinces and cities.

The Brokerage Management Department is the supporting unit for ACBS’s Distribution Channels; at the same time, the department assists the Board of Directors to develop and deploy new business policies and new products and services. In addition, the Brokerage Management Department also directly develops and manages new clients via online transaction channels.

Investment Banking Division

The Investment Banking Division is under the head office, consisting of: Treasury and Investment Department, Corporate Finance Department and Institutional Sales Department.

The Treasury and Investment Department is a front-office department at the head office, directly performing capital management and principal investment in bonds, derivatives, and stocks for ACBS.

The Corporate Finance Department is a front-office department at the head office, performing:

• M&A advisory service

• Corporate finance advisory service

• Underwriting of stocks and corporate bonds

• Other financing & advisory services that have been licensed

The Institutional Sales Department is a front-office department at the head office responsible for customer development, client service, providing information and updates regarding market specific and legal matters as well as sharing its general knowledge base with clients.

Business Support Division (BSD)

Established in 2015, the BSD has four departments: Research, Risk Management, Compliance and Marketing & Communications. The Business Support Division provides support for all branches at ACBS, with its main focus on brokerage activities.

The Research Department experienced a personnel increase in 2015, bringing the total headcount to 12 analysts and associates. At the end of 2015, the Research Department covered over 70% of the total market capitalization in Vietnam and provided in-depth as well as holistic views on listed stocks and industries. Coverage has since expanded into large trading volume stocks to meet customers’ demand for information.

The Risk Management Department focuses on managing market risk, liquidity risk, operational risks and updating stocks approved for margin lending. Together with the Compliance Department, the Risk Management Department ensures all processes, products and business activities, especially the brokerage activities, are in compliance with outside regulations and internal limits.

The Marketing and Communication Department was established in the third quarter of 2015 with the merger between The Online Customer Support Team and the Marketing Unit from the Research and Development Department. The Marketing and Communication Department aims to promote a proactive and professional culture within ACBS and an image of integrity, devotion, and versatility to internaltional media outlets to support ACBS’s business lines.

In 2016, together with company’s business strategies, the BSD will continue to increase its efficiency to support business activities within the risk management framework, diversify business products in order to improve performance and promote a professional image at all ACBS branches

Operations Division

The Operations Division is comprised of the Securities Services Department, Securities Transaction Department and the Information Technology Department. Each department is organized into 2 different functions:

• Systems Management Function

• Operating Function

These departments, working at the head office, are responsible for organizing, managing and supporting all the operations relating to securities trading and settlement actitivies. In addition, they also consult and develop Information Technology strategies and strategic plans at the company level.

This division is the main body that ensures ACBS’s operations are accurate, stable and comply with regulations, industry standards and internal policies.

In 2015, there were many positive changes on the market: new indices on the HSX and HNX exchanges; ETFs were introducted with a complete framework for trading, subscription and redemption; Stock Borrowing and Lending via VSD Straight-Through Processing (STP) gateway; the registration process for foreign institutional clients was shortened with the new online platform; and the settlement period changed from T+3 to T+2. For the new settlement T+2 cycle, all systems and processes have been adapted swiftly and successfully in accordance with the exchanges and VSD plans. With new investments in the IT platform, online and on-site order placing features have been dramatically improved ensuring that trading operations are more robust, accurate and efficient. Securities balances are reconciled on a monthly to ensure there are no mismatchs.

Support Division

The Support Division includes the Accounting and Finance Department, Human Resources and Administration Department and the Internal Control Department

The Accounting and Finance Department is a functional Department at the head office responsible for advising on the operational organization, management and implementation of financial and accounting policies as prescribed by the Company, ACB and other existing statutory stipulations.

The Human Resources and Administration Department is a functional Department at the head office responsible for advising the Chief Executive Officer (CEO) on the formulation and implementation of strategic human resource policies; ensuring efficinent application of administrative duties, procurement and management of office materials and other related work to meet the development goals of the Company.

The Internal Control Department is a functional Department at the head office responsible for advising and implementing compliance with the provisions of the law, the internal processes and the implementation of tasks at the request of the Board of Management and contributing to the operations of the Company to ensure they remain safe, effective and legally compliant.


VIETNAM ECONOMIC 2015 AND2016 OUTLOOK

Vietnam’s GDP growth was the most attractive economic story in 2015. Despite to the current global economic slowdowns, GDP growth was as high as 6.7%, increasing 0.5 percentage point y.o.y, and among the fastest rates in the world. This was largely contributed to by the accelerated growth in the manufacturing sector (thanks to large FDI projects), construction (thanks to improved real-estate market liquidity) and service

Decreased commodity prices did not create risks of deflation in Vietnam, but helped stabilize the macroeconomic environment and created the perfect conditions to lower interest rates. As the oil price decreased by over 50% to US$ 40 per barrel as of the end of 2015, the inflation rate was just 0.63%, the lowest in years. With extremely low inflation, the interest rate also decreased to a 5 year low despite strong credit growth of 18%. With lowered commodity prices, production, shipment and consumption increased steeply in 2015 but profit margins, especially those of mining businesses and commodity producers, narrowed as inventory prices decreased rapidly. For producers, this trend is temporary but it will be very tough for mining businesses.

Even though earnings growth was not impressive in 2015, both businesses and households were quite optimistic about the economic condition. 34.2% of inspected business said they had plans to expand their labor force, 42.2% of them would increase production in 2016 while only 10% of inspected businesses said they would cut production or staffs. For households, the saving rate compared to GDP decreased to a 6 year low of 26.9% and indicated strong consumer confidence. Moreover, among the roughly US$ 50 bln that households saved in 2015, about 50% was invested in riskier assets rather than baking deposits. This is not good news for the banking sector but these levels of businesses and households’ confidence is quite rare given the current global economic slowdowns.

Economic 2015 Review

sector (thanks to improved domestic consumption). However, the outstanding growth was in part driven by expanded mining activities, especially oil exploitation, which added 0.2-0.3 percentage points to the overall growth. Excluding this, GDP growth would have been 6.4-6.5%, still outperforming the government target of 6.2%, but nearer the government’s earlier expectations.

However, the overall bright economic picture also faced some challenges. Increasing economic openness makes Vietnam more vulnerable to global shocks. In August 2015, when China devaluated its currency to support exports, the VND faced strong devaluation pressures after years of stability. Finally, the VND was devalued against USD by 5.2% in 2015, the biggest devaluation since 2012 and reminded investors of the period of instability from 2009-2011. This exchange rate shock increase dollarization in the economy and lowered the SBV’s foreign currency reserve by billion USD.

GDP growth anh the contribition of economic sectors

Net tax

Mining Agriculture

Services Electricity, water and environment Construction

Food

2011 2012 2013 2014 2015 2016F

Agriculture 0.8% 0.5% 0.5% 0.6% 0.4% 0.4%

Mining 0.3% 0.5% 0.0% 0.2% 0.5% -0.2%

Food 1.8% 1.3% 1.0% 1.1% 1.6% 1.8%

Electricity, water and environment 0.4% 0.5% 0.3% 0.4% 0.5% 0.5%

Construction 0.0% 0.2% 0.3% 0.4% 0.6% 0.7%

Services 2.8% 2.5% 2.5% 2.4% 2.4% 2.7%

Net tax 0.3% -0.2% 0.7% 0.9% 0.6% 0.7%

2726 ACB Securities

20110%

1%

2%

3%

4%

5%

6%

7%

8%

-1%2012 2013 2014 2015 2016F

Vietnam Economic 2015 and 2016 Outlook

Beside the exchange rate, public debt was also a big con-cern in 2015. Despite strong GDP growth, the weak infla-tion rate and the VND devaluation caused nominal GDP to increase at the slowest pace in years. With this, despite

controlling efforts, the public debt to GDP increased to a new high of 62.2% in 2015 and made it more challenging for the new government to control in the upcoming 5 year term from 2016-2020.

Public dept

Nominal GDP

Public debt/GDP Government debt/GDP

Unit: Trillion/%

Public dept Government debt

2011 2012 2013 2014 2015 2016F

Nominal GDP 2,780 3,245 3,584 3,938 4,193 4,709

Public dept 1,526 1,649 1,943 2,347 2,608 2,894

Government debt 1,201 1,279 1,516 1,868 2,109 2,343

Public debt/GDP 55% 51% 54% 60% 62% 61%

Government debt/GDP 43% 39% 42% 47% 50% 50%

2016 Economic Outlook

Growth is still the most promising story for Vietnam in 2016. GDP growth is expected hit 6.7% even though the mining sector might have negative growth and the ag-ricultural sector is facing great difficulties with the cur-rent severe drought. While GDP growth is not expected to speed up from 2015, the structure of the economy is expected to improve with stronger performancees of the Manufacturing, Construction, Utilities and Service sectors. Meanwhile, with the inflation rate expected to increase to 3-5% and the VND expected to devalue by only 2-3%, the nominal size of the economy, measured in USD, will increase in much faster pace, about 10%, and improve growth sentiment.

On the other hand, the hastened growth will wors-en the trade balance, which might turn to a deficit for the first time in years. However, as FDI disbursements are expected to increase by 10% to US$ 16 bln and re-mittances are still stable, a light trade deficit of US$ 1-2 bln might not put strong pressures on the SBV’s foreign currency reserves. Along with the current proper an-ti-dollarization policies, we expect the SBV’s reserves to increase to US$ 35 bln as of the end of 2016 and give strong base for VND stability.

In 2016, oil prices, China’s issues and the FED’s interest rate hike remain the major external issues that Vietnam is facing at this moment, but the actual effects on the economy might not be as great as investors’ concerns. It should be clear that China’s slowdown and other major issues, including increasing labor costs, banking sector’s emerging NPLs and zombie plants, are not threats but opportunity to Vietnam, as China is Vietnam’s direct competitor in both international and domestic markets. However, it should be noted that China can “export” its troubles by devaluating its currency, Yuan (or RMB) and increase tension in the East Sea. However, after strong reaction in response to the August 2015 devaluation, a weaker Yuan is not a good scenario for China at this mo-ment. Moreover, devaluation might not support exports as much as expected.

In 2016, Vietnam will taste the whole bitterness and darkness of the oil price rout. Despite to the recent rally, the 2015 average exporting oil price was still about 50% higher than the current oil price. Some oil & gas com-panies which used to have large earnings might have their earnings continue to drop or even turn negative in Q1/2016 and shock investors. However, for the state budget, the negative effects of lowered oil prices were better anticipated and planned. For the whole econo-my, lowered and stabilized oil prices might be benefical, although not all sectors would reap the same benefits.

Regarding the FED’s expected interest rate hike, with the newly applied forex market management scheme, which is expected to remove speculation by allowing the USD/VND exchange rate to be more flexible, the interest rate hikes, if any, might not affect the market as much as they did in 2015. The SBV is still prioritizing the VND valuation against lowering the interest rate and Vietnam is among very few countries that is expecting interest rates to increase in 2016. With expected cred-it growth of 15-17% and improved credit quality, with more concentration on manufacturing sectors, we ex-pect the interest rate to increase moderately by 0.5-1% in 2016 to 7% (12M deposit interest rate) – 9% (banks’ best lending rate).

With all these factors, we expect 2016 to be a year of stable and quality growth. Consumer goods & services and Construction and Manufacturing are expected to benefit the most from the growth. Moreover, house-hold and business incomes are expected to increase at a much faster pace and give strong support to the stock market in 2016.

2928 ACB Securities

5,000

2011 2012 2013 2014 2015 2016F

4,500

4,000

70%

3,500

60%

3,000

50%

2,50040%

2,000 30%

1,500 20%1,000

10%500

0%

Vietnam Economic 2015 and 2016 Outlook

ACBS 2015 REVIEW

Continuing to focus on restructuring activities in both finance and operations, 2015 was not a year for ACBS to impress in its business results and market share. Rev-enue from principal business activities of ACBS fell by 24% to VND 282 billion in 2015. In particular, brokerage revenue contributed 52% of the revenue decrease in value as the total market trading value declined and the market share of ACBS brokerage reduced on both stock exchanges. In addition, other revenues, mainly interest margin from trading loans, decreased by 13% and ac-counted for 28% of the overall decrease, mainly due to declining interest rates. Investment revenues also fell slightly by VND 18 billion, while corporate finance advisory and securities custody have increased slightly, but not enough to make any significantly impacts to the general business results.

Profit before tax of ACBS also fell sharply from VND 319 billion in 2014 to VND 124 billion mainly due to no ex-traordinary profit/Income from investment activities in 2014. In particular, investment activity brought in VND 27 billion and provision reversals of 226 billion in 2014 while the investment profit in 2015 brought in only 9 billion and provision reversals of VND 15 billion in 2015. If excluding the impact of the investment operations, profit before tax of ACBS felt by 25% due to the reduc-tion in brokerage revenue and in interest rates.

With the accumulation of resources in 2015, coming to 2016, ACBS aims to promote brokerage activities and to increase revenues from financial counsulting and short-term investments. With regards to brokerage activities, ACBS will focus more on employee training; improve its brokerage commission policy, improve policy manage-ment and deposit portfolio and increase access to new customers, all in an aim to recover brokerage market share in 2016. In terms of corporate finance consulting, ACBS continues to strengthen its operational capacity to take advantage of enterprises’ equitization and mar-ket development in 2016. Investment activity is expect-ed to focus on potential investments with high liquidity in the listed market or OTC, with small investment sizes compared to the ACBS’s balance sheet assets to ensure prudent risk management. With such strategies, ACBS expects 70-100% profit growth compared to 2015.

Brokerage Operations

In 2015, brokerage activities at ACBS faced many dif-ficulties due to changes in personnel, installment of a new Core Software and most importantly, competition from other securities firms regarding securities products and services for Clients.

In 2015, ACBS developed 1,519 new Clients, brining the aggregate total as of the end of 2015 to more than 79,000 trading accounts, making up 5% of total ac-counts in the market.

ACBS’s brokerage market share in 2015 reached 4.3% (foreign institutional clients contributed 9.23% of ACBS’s total brokerage market share and made up 4.3% of the total trading value of foreign clients across the market). ACBS’s outstanding margin lending as of 12/31/2015 reached VND 1,384 billion, increasing 25.9% compared to the same period of 2014.

To enhance competitive strength, ACBS constantly in-novates, improves on and perfects the following:

• Trading System. ACBS contracted a new software developer to research and deploy its new trading software from April 2015, in order to give clients more convenient, multi-channel online transac-tions with faster processing speeds than the previ-ous trading system.

• The margin lending list of approved securities has been a point of focus with respect to risk manage-ment and ACBS aims to provide competitive, flexi-ble margin lending to its clients.

• Preferential policies regarding the margin interest rate and fees are developed and applied to all cli-ents.

• Market Evaluation Reports and Company reports are updated daily for clients. In addition, ACBS also organizes regular mini talk shows with expert ana-lysts for clients to give recommendations directly, to assist clients to make effective investment de-cisions.

With the above efforts, in 2015, ACBS earned 101.56 bil-lion in revenue from brokerage activities and 140 billion in margin lending. All distribution channels are operat-ing effectively and profitbly

Corporate Finance Advisory Service (FAS)

In 2015, ACBS executed nearly forty (40) consultancy contracts on various financial advisory services includ-ing financial debt arrangements (equity, bonds, and loans), stock auctions, mergers and acquisitions, busi-ness valuation advisory, corporate conversions and oth-er financial services. ACBS continues to strive to become one of the leading investment banks in Vietnam.

In accordance with the growth in revenue and the num-ber of contracts executed in 2015, ACBS has attempted to improve the quality and competence of our advisory services. These improvements have been reflected by the promulgations and updates of company process-es, work instructions that are results oriented and effi-cient such as Bond Issuance Process (01/2015), Stock Auction Guideline Process (06/2015), Private Corporate Bond Issuance Process (07/2015), Stock Listing Process (09/2015), Stock Valuation Process ( 09/2015), General Meeting Organization Process (10/2015), Financial Cap-ital Arrangement Process (11/2015) and UpCom Listing Process (11 / 2015).

ACBS – An intermediate financial advisor to meet business’ capital needs.

Financial arrangement for business’ capital needs is one of ACBS’s professional advisory services: with a large da-tabase of institutional clients and full support from ACB, ACBS offer a wide range of capital arrangement options for our clients to expand their business operations or undergo financial restructuring. In 2015, ACBS has suc-cessfully raised VND 200 billion in corporate bonds to clients and ACBS ourselves.

ACBS – A professional and effective consultant to clients

On the basis of highly educated advisors from diverse background in financial markets, ACBS always strives to offer best-in-class advice as a professional and effective partner to our clients.

Auctions of shares: In 2015, ACBS provided valuation services and auctions-of-shares consultations for many State Owed Enterprises such as the SCIC, Sabeco and HUD, which want to sell their representatives shares at

corporations such as Dong A Joint Stock Bank, Phuong-dong Petroleum Tourism Joint StockCompany (PDC), joint Stock Company - Com Trancodana, Sai Gon Ninh Chu Resort Hotel Joint Stock Company, Dalat Tourism Service Joint Stock Company, Saigon - Rachgia Cor-poration, Nong Nghiep Printing Joint Stock Company, Hydraulic Engineering Consultants Corporation.II (Joint-Stock), Southernn Information And Valuation Corpora-tion (SIVC), Dong Thap Muoi Import-Export Joint Stock Company, Hanoi Housing Development And Invest-ment Corporation, Vietnam Ceramic Glass Joint Stock Company, Lam Dong Print And Book Public Joint-Stock Company. These positive results have contributed to enhance ACBS’s capacity to organize and attract inves-tors to raise funds for efficiently operated businesses.

Mergers and Acquisitions: In 2015, ACBS consulted for Canpac Vietnam Ltd (owed by Canpac Sdn Bhd, Malay-sia) in their buying process of a company in the same industry.

Consultations for registered depository, additional listing and purchase of treasury shares: In 2015, ACBS has successfully advised well – known companies such as Viettien Garment Corporation, Thien Nam Trading Im-port Export Corporation.

3130 ACB Securities Vietnam Economic 2015 and 2016 Outlook

Year of 2016ACBS will continue to affirm its role as an intermediary financial institution to meet capital needs for enterpris-es; while improving its operating capabilities in restruc-turing advisory, M&A and corporate finance services such as listings, additional issuances, equitizations and auctions.

2016 will be a booming year for Upcom transaction registrations. ACBS will focus on companies which eq-uitized in 2014 - 2015 and are looking for Upcom reg-istration for potential customers. This not only helps to earn more fees for FAS, but also creates a large customer base for ACBS’s distribution channels.

HOANG ANH GIA LAI JOINT STOCK COMPANY

Corporate Bond Issuance

SAIGONTOURIST CABLE TELEVISION LTD COMPANY

Valuation services and Restructuring corporation.

STATE CAPITAL INVESTMENT CORPORATION

Valuation and Share auctions for following com-panies:

• Sai Gon Ninh Chu Resort Hotel Joint Stock Company

• Saigon - Rachgia Corporation

• Nong Nghiep Printing Joint Stock Company

• Joint Stock Company - Com Trancodana

• Dalat Tourism Service Joint Stock Company

• Hydraulic Engineering Consultants Corpora-tion.II (Joint-Stock)

• Southernn Information And Valuation Corpo-ration (SIVC)

• Dong Thap Muoi Import-Export Joint Stock Company

• Hanoi Housing Development And Invest-ment Corporation

• Vietnam Ceramic Glass Joint Stock Company

• Lam Dong Print And Book Public Joint-Stock Company

SAIGON BEER - ALCOHOL - BEVERAGE JOINT STOCK CORPORATION (SABECO)

Share auctions for follow-ing companies:

• Dong A Joint Stock Bank.

• Phuongdong Petro-leum Tourism Joint Stock Company (PDC)

• PetroVietnam Insur-ance Company (PVI)

VIETTIEN GARMENT CORPORATION

Registered for transaction in UPCOM

THIEN NAM TRADING IMPORT EXPORT CORPORATION

Public offer consultation for TNA shares.

CUCHI COMMERCIAL AND INDUSTRIAL DEVELOPING JOINT STOCK COMPANY

Registered depository, additional listing

Notable projects in 2015

2016 is also expected to see an increase in the rate of divestment of state-owned enterprises. Therefore, FAS will focus on these potential customers to provide di-vestment advisory services.

Stemming from Circular No. 162/2015 /TT-BTC dated on 10/26/2015 from the Ministry of Finance, 2016 is a year to promote underwriting activities. This is a good opportunity for securities companies in general, and in particular ACBS.

With years of experience in the financial markets and a large network of investors, ACBS firmly believes in creat-ing additional value for its customers; while maintaining a professional and effective attitude.

3332 ACB Securities Vietnam Economic 2015 and 2016 Outlook

Investment Activities

In 2015, Principal Investment activities focused on strengthening our investment team and bolstering investment procedures through building standard regulations for all investment activities at ACBS, along with investment strategies and plans to capture opportunities brought by the capital market in the next 3-5 years. In addition, ACBS conducted the reallocation and reclassification of investments in our current portfolio, while also making some new and interesting investments, mostly on SOE equitizations.

With the completion of the planning stage and our positive view for the new year, ACBS eyes the 2016 fiscal year to be the cornerstone to kick off implementation of its new investment strategy. In particular, the focus will be on looking for investment opportunities in both listed and pre-listed stocks that are undervalued and, in the meantime, seeking profit realization opportunities for some of our current investments, in order to meet the target profit for fiscal year 2016. In addition, we will keep sourcing investment opportunities in SOE equitizations and private companies that are performing well and have high growth potential to continually enrich our long term investment portfolio.

Investment activities at ACBS, whether they are short or long term, will be conducted on the basis of in-dept research, due diligence, and under prudent supervision, reporting, and risk management. In the meantime, effectiveness is always our primary goal, with target investment profit equal to or exceeding our cost of capital.

Risk Management

Established in 2010, the Risk Management Department has the role of supervising, evaluating and measuring risks inherent in products, services and systems at ACBS according to internal requirements and outside regulations from the Ministry of Finance, State Securities Commision, the Ho Chi Minh and Hanoi Stock Exchanges. Risk management activities at ACBS are implemented throughout the entire ACBS system and closely follow approved risk policies for major risks such as market risks, payment risks, liquidity risks and operational risks. The Risk Management Department regularly reviews and updates the company’s risk management policies, risk management procedures and internal risk limits to improve ACBS’s resilience and businesss operational effectiveness.

In 2015, the Risk Management Department issued the ACBS Business Continuity Plans to ensure core business viability in case of disruptive events, to safeguard the safety of employees and customers, at them same time limit losses for ACBS in the shortest amount of time. The Risk Management Department frequently reports risk assesments to the CEO to improve risk management

activities and proposes risk management plans to the CEO, the Board Risk Committee and The Board of Directors to prevent future risk factors.

For 2016, the Risk Management Department will develop methodologies and risk limits to manage risk coming from new products such as day trading and derivative products. Also, the Risk Management Department will update risk reports and follow updated regulations from Circular 210 issued in January 2016 to improve ACBS’ risk appetite and compliance with outside regulations.

Information Technology Development

An effective and efficient Core Trading platform is one of the main pillars in any financial institution, especially in the securities market.

2015 saw a major milestone for ACBS’s IT development, in which the new modern platform has been deployed to replace the legacy one that had been running for 10 years. This will provide a foundation for ACBS to develop new products and services for clients. The new platform supports all the front-end products for clients ranging from web to desktop and mobile (both iOS and Android).

Also in 2015, the IT department completed several projects that support the business as well as analysed and planned for the necessary changes in the next year in order to ensure confidentiality, integrity and availability of the entire system.

In the last quarter of 2015, the IT department had worked together with Internal Compliance to computerize all the internal processes that will help reduce all human errors and non-conforming issues. This project is to be tentatively rolled out in 1Q2016.

34 ACB Securities

FINANCIAL STATEMENTS

ACB Securities Company Corporate Information Registered Offices

Business Registration Certificate No.

4104000006 4104000006 4104000006 4104000006

30 June 2000 13 September 2005 30 May 2006 13 December 2006

The Business Registration Certificate and its updates were issued by the Ho Chi Minh City Department of Planning and Investment.

Establishment and Operation Licence No.

06/GPHĐKD 56/2001/UBCK-QLKD 71/UBCK-GPĐCCTCK 77/UBCK-GPĐCCTCK 105/UBCK-GPĐCCTCK 464/QĐ-UBCK 271/UBCK-GP 115/GPĐC-UBCK 18/GPĐC-UBCK

29 June 2000 21 September 2001 6 September 2007 1 October 2007 14 January 2008 7 July 2008 4 November 2009 3 October 2012 11 August 2014

The Establishment and Operation Licence and its updates were issued by the State Securities Commission of Vietnam.

Members’ Council Mr. Adrew Colin Vallis Mr. Tu Tien Phat Ms. Nguyen Ngoc Nhu Uyen Mr. Tran Trong Kien Mr. Gopalaswamy Mr. Le Ba Dung

Chairman Member (from 27 July 2015) Member (from 27 July 2015) Thành viên Thành viên Member (from 27 July 2015)

Head Office 41 Mac Dinh Chi Street, Da Kao Ward, District 1, Ho Chi Minh City , Vietnam

Cho Lon Branch 747 Hong Bang Street, Ward 6, District 6, Ho Chi Minh City, Vietnam

Truong Dinh Branch 107N Truong Dinh Street, Ward 6, District 3, Ho Chi Minh City, Vietnam

Hanoi Branch 10 Phan Chu Trinh, Phan Chu Trinh Ward, Hoan Kiem District, Hanoi, Vietnam

Hai Phong Branch 15 Hoang Dieu, Hong Bang District, Hai Phong City, Vietnam

Da Nang Branch 4th Floor, 218 Bach Dang Building, Phuoc Ninh Ward, Hai Chau District, Da Nang City, Vietnam

Khanh Hoa Branch 80 Quang Trung Street, Loc Tho Ward, Nha Trang City, Khanh Hoa Province, Vietnam

Vung Tau Branch 111 Hoang Hoa Tham Street, Ward 2, Vung Tau City, Ba Ria – Vung Tau Province, Vietnam

Can Tho Branch 17 - 19 Nam Ky Khoi Nghia Street, Tan An Ward, Ninh Kieu District, Can Tho City, Vietnam

Auditor KPMG Limited Vietnam

Board of Directors Mr. Trinh Thanh Can Mr. Pham Phu Khoi Bà Lê Thị Phương Dung

General Director (from 4 June 2015) General Director (until 3 June 2015) Deputy General Director

3736 ACB Securities Financial statements

STATEMENT OF THE BOARD OF DIRECTORS INDEPENDENT AUDITOR’S REPORT

The Board of Directors of ACB Securities Company (“the Company”) presents this statement and the accompanying consolidated financial statements of the Company and its subsidiary (collectively “the Group”) for the year ended 31 December 2015.

The Company’s Board of Directors is responsible for the preparation and fair presentation of the consolidated financial statements in accordance with Vietnamese Accounting Standards, the Vietnamese Accounting System for enterprises, Circular No. 95/2008/TT-BTC dated 24 October 2008 and Circular No. 162/2010/TT-BTC dated 20 October 2010 issued by the Ministry of Finance on the promulgation of accounting guidance for securities companies and the relevant statutory requirements applicable to financial reporting. In the opinion of the Company’s Board of Directors:

(a) the consolidated financial statements set out on pages 7 to 58 give a true and fair view of the consolidated fi-nancial position of the Group as at 31 December 2015, and of their consolidated results of operations and their consolidated cash flows for the year then ended in accordance with Vietnamese Accounting Standards, the Viet-namese Accounting System for enterprises, Circular No. 95/2008/TT-BTC dated 24 October 2008 and Circular No. 162/2010/TT-BTC dated 20 October 2010 issued by the Ministry of Finance on the promulgation of accounting guidance for securities companies and the relevant statutory requirements applicable to financial reporting; and

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

The Board of Directors has, on the date of this statement, authorised these accompanying consolidated financial statements for issue.

On behalf of the Board of Directors

Mr. Trinh Thanh Can General Director

Ho Chi Minh City, 29 February 2016

To the Owner ACB Securities Company

We have audited the accompanying consolidated financial statements of ACB Securities Company (“the Company”) and its subsidiary, which comprise the consolidated balance sheet as at 31 December 2015, the consolidated state-ment of income, consolidated statement of changes in equity and consolidated statement of cash flows for the year then ended and the explanatory notes thereto (“the consolidated financial statements “) which were authorised for issue by the Company’s Board of Directors on 29 February 2016,as set out on pages 7 to 58.

Management’s Responsibility

The Company’s Board of Directors is responsible for the preparation and fair presentation of these financial statements in accordance with Vietnamese Accounting Standards, the Vietnamese Accounting System for enterprises, Circular No. 95/2008/TT-BTC dated 24 October 2008 and Circular No. 16212010/TT-BTC dated 20 October 2010 issued by the Ministry of Finance on the promulgation of accounting guidance for securities companies and the relevant statutory requirements applicable to financial reporting, and for such internal control as the Board of Directors determines is necessary to enable the preparation of consolidated financial statements that are free from material misstatement, whether due to fraud or error.

Auditor’s Responsibility

Our responsibility is to express an opinion on these consolidated financial statements based on our audit. We con-ducted our audit in accordance with Vietnamese Standards on Auditing. Those standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the consolidated financial statements are free of material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor’s judgement, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the Company’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company’s internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by the Company’s Board of Directors, as well as evaluating the overall presentation of the financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

Auditor’s Opinion

In our opinion, the consolidated financial statements give a true and fair view, in all material respects, of the consolidated financial position of ACB Securities Company and its subsidiary as at 3l December 2015, and of their consolidated results of operations and their consolidated cash flows for the year then ended in accordance with Vietnamese Accounting Standards, the Vietnamese Accounting System for enterprises, Circular No. 95/2008/TT-BTC dated24 October 2008 and CircularNo. l6212010ITT-BTC dated 20 October 2010 issued by the Ministry of Finance on the promulgation of accounting guidance for securities companies and the relevant statutory requirements applicable to financial reporting.


CONSOLIDATED BALANCE SHEET as at 31 december 2015

CONSOLIDATED BALANCE SHEET as at 31 december 2015 (continued)

Code Note 31/12/2015 VND

31/12/2014 VND

ASSETS

CURRENT ASSETS

(100 = 110 + 120 + 130 + 150) 100 100 1,787,822,443,407 2,059,901,222,754

Cash and cash equivalents 110 5 257,114,584,741 515,709,414,817

Cash 111 120,114,584,741 515,709,414,817

Cash equivalents 112 137,000,000,000 -

Short-term financial investments 120 7 143,468,807,529 421,842,622,998

Short-term investments 121 146,045,514,506 424,816,718,250

Allowance for diminution in the value of short-term investments

129 (2,576,706,977) (2,974,095,252)

Accounts receivable - short-term 130 1,381,843,870,036 1,121,024,508,034

Accounts receivable from customers 131 9,979,536 -

Prepayments to suppliers 132 550,754,440 7,212,929,400

Intra-company receivables 133 - 1,048,730,000

Accounts receivable from securities trading activities 135 8 1,793,101,204 1,769,118,988

Other receivables 138 9 1,380,724,139,712 1,112,217,159,086

Allowance for doubtful debts 139 10 (1,234,104,856) (1,223,429,440)

Other current assets 150 5,395,181,101 1,324,676,905

Short-term prepayments 151 975,182,323 974,532,823

Deductible value added tax 152 1,684,129,741 338,395,082

Taxes and other receivables from State Treasury 154 2,493,854,037 -

Other current assets 158 242,015,000 11,749,000


31/12/2014 VND

LONG-TERM ASSETS

(200 = 220 + 250 + 260) 200 288,452,010,186 209,151,716,050

Fixed assets 220 62,667,267,956 53,376,747,653

Tangible fixed assets 221 11 50,185,839,194 52,939,929,223

Cost 222 88,874,267,021 86,447,618,430

Accumulated depreciation 223 (38,688,427,827) (33,507,689,207)

Intangible fixed assets 227 12 501,405,957 436,818,430

Cost 228 3,440,545,796 3,123,445,796

Accumulated amortisation 229 (2,939,139,839) (2,686,627,366)

Construction in progress 230 13 11,980,022,805 -

Long-term financial investments 250 7 189,526,622,500 135,909,083,124

Long-term investment securities 253 235,366,012,860 -

Available-for-sale securities 254 183,366,012,860 -

Held-to-maturity securities 255 52,000,000,000 -

Other long-term investments 258 - 150,094,515,860

Allowance for diminution in the value of long-term financial investments

259 (45,839,390,360) (14,185,432,736)

Other long-term assets 260 36,258,119,730 19,865,885,273

Long-term prepayments 261 14 15,754,450,630 1,172,428,070

Deposits at Payment Support Fund 263 15 20,000,000,000 18,144,000,003

Other long-term assets 268 16 503,669,100 549,457,200

TOTAL ASSETS 270 2,076,274,453,593 2,269,052,938,804





31/12/2014 VND

RESOURCES

LIABILITIES (300 = 310) 300 288,043,961,254 577,166,550,341

Current liabilities 310 288,043,961,254 577,166,550,341

Short-term borrowings and liabilities 311 15 175,000,000,000 228,000,000,000

Accounts payable to suppliers 312 90,998,950 291,543,700

Advances from customers 313 - 135,454,545

Taxes payable to State Treasury 314 16 2,995,351,864 17,006,563,264

Payables to employees 315 11,545,329,792 14,076,933,659

Accrued expenses 316 17 4,110,478,420 4,055,045,966

Other short-term payables 319 18 16,421,579,441 234,071,140,225

Accounts payable for securities trading activities 320 19 74,507,686,268 75,430,686,539

Dividends, bond principal and interest payables 321 2,581,239,238 3,247,966,557

Unearned revenue 328 791,297,281 851,215,886

EQUITY (400 = 410) 400 1,788,230,492,339 1,691,886,388,463

Owner’s equity 410 1,788,230,492,339 1,691,886,388,463

Contributed capital 411 1,500,000,000,000 1,500,000,000,000

Reserve to supplement contributed capital 417 20 90,253,607,780 85,318,244,624

Financial reserve 418 20 111,503,506,995 106,568,143,839

Retained profits 420 86,473,377,564 -

Total resources (440 = 300 + 400) 440 2,076,274,453,593 2,269,052,938,804

Off-balance sheet items Code 31/12/2015 VND

31/12/2014 VND

2. Materials and valuable certificates held on behalf 2 363,492,865,521 567,500,940,000

6. Custody securities 6 18,773,020,740,000 16,207,441,660,000

In which: - -

6.1 Trading securities 7 14,172,773,360,000 12,518,442,820,000

6.1.1 Trading securities of custody members 8 20,121,230,000 40,109,880,000

6.1.2 Trading securities of domestic customers 9 13,790,844,310,000 12,207,385,290,000

6.1.3 Trading securities of foreign customers 10 361,807,820,000 270,947,650,000

- -

6.2 Temporary non-trading securities 12 912,305,020,000 59,750,850,000

6.2.2 Temporary non-trading securities of domestic customers 14 723,760,390,000 56,625,850,000

6.2.3 Temporary non-trading securities of foreign customers 15 188,544,630,000 3,125,000,000

- -

6.3 Mortgaged securities 17 3,448,944,850,000 3,342,680,020,000

6.3.1 Mortgaged securities of custody members 18 64,377,020,000 64,377,020,000

6.3.2 Mortgaged securities of domestic customers 19 3,384,567,830,000 3,278,303,000,000

- -

6.5 Securities awaiting for settlement 27 151,559,710,000 282,750,210,000

6.5.2 Securities awaiting for settlement of domestic customers 29 151,247,010,000 282,718,410,000

6.5.3 Securities awaiting for settlement of foreign customers 30 312,700,000 31,800,000

- -

6.6 Blocked securities awaiting for release 32 76,769,260,000 -

6.6.2 Blocked securities awaiting for release of domestic customers 76,769,260,000 -



CONSOLIDATED STATEMENT OF INCOME FOR THE YEAR ENDED 31 December 2015

Code Note 2015 VND

2014 VND

Revenue 1 282,149,305,986 370,544,461,556

In which:

Revenue from securities brokerage 1.1 101,549,000,005 147,251,644,743

Revenue from securities trading activities 1.2 21 9,449,351,389 27,197,127,625

Revenue from securities issuance services 1.4 - 360,000,000

Revenue from securities investment advisory 1.5 3,019,500,002 2,611,484,364

Revenue from securities custody 1.6 7,502,312,128 7,136,874,158

Other revenue 1.9 22 160,629,142,462 185,987,330,666

Revenue deductions 2 160,245,238 120,128,158

Net revenue from operating activities (10 = 01 - 02) 10 281,989,060,748 370,424,333,398

Operating expenses 11 23 116,979,275,725 16,323,649,194

Gross profit (20 = 10 - 11) 20 165,009,785,023 354,100,684,204

General and administration expenses 25 24 42,450,703,024 34,952,023,347

Net operating profit (30 = 20 - 25) 30 122,559,081,999 319,148,660,857

31 25 1,089,445,362 298,945,368

Other income 32 26 114,109,935 93,703,951

Other expenses (40 = 31 - 32) 40 975,335,427 205,241,417

Profit before tax (50 = 30 + 40) 50 123,534,417,426 319,353,902,274

Income tax expense - current 51 27 27,190,313,550 70,219,229,706

Income tax expense - deferred 52 27 - -

Net profit after tax (60 = 50 - 51 - 52) 60 96,344,103,876 249,134,672,568

Off-balance sheet items (continued) Code 31/12/2015 VND

31/12/2014 VND

6.7 Securities awaiting for trading 37 10,668,540,000 3,817,760,000

6.7.1 Securities awaiting for trading of custody members 38 - 20,000

6.7.2 Securities awaiting for trading of domestic customers 39 10,253,700,000 3,705,770,000

6.7.3 Securities awaiting for trading of foreign customers 40 414,840,000 111,970,000

- -

7 Custody securities of unlisted public companies 50 187,612,330,000 159,009,110,000

In which: - -

7.1 Trading securities 51 187,610,330,000 159,007,110,000

7.1.1 Trading securities of custody members 52 4,400,000 6,080,270,000

7.1.2 Trading securities of domestic customers 53 186,626,750,000 152,005,800,000

7.1.3 Trading securities of foreign customers 54 979,180,000 921,040,000

- -

7.2 Temporary non-trading securities 56 2,000,000 2,000,000

7.2.2 Temporary non-trading securities of domestic customers 58 2,000,000 2,000,000

- -

8 Non-custody securities of customers 82 3,185,437,490,000 3,375,178,430,000

- -

9 Non-custody securities of securities companies 83 156,403,820,000 43,597,030,000

29 February 2016

Prepared by

Mr. Nguyen Phuong Quang Accountant

Reviewed by

Mr. Vo Van Van Chief Accountant

Approved by


29 February 2016

Prepared by


Reviewed by


Approved by



CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 december 2015 (Indirect method)

CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 december 2015 (Indirect method)

Code 2015 VND

2014 VND

CASH FLOWS FROM OPERATING ACTIVITIES

Profit before tax 1 123,534,417,426 319,353,902,274

Adjustments for

Depreciation and amortisation of fixed assets 2 5,884,142,262 4,875,559,842

Allowances and provisions 3 31,267,244,765 (232,641,131,898)

Profits from investing activities 5 (168,463,519,268) (209,549,167,490)

Interest expenses 6 4,661,874,997 27,936,472,223

Operating loss before changes in working capital (3,115,839,818) (90,024,365,049)

Change in trading securities, short-term investments, receivables and other current assets

9 11,369,933,067 522,485,863,876

Change in payables and other liabilities 11 14,383,919,235 (27,251,483,790)

Change in prepaid expenses 12 (14,582,672,060) 472,374,604

8,055,340,424 405,682,389,641

Interest paid 13 (5,151,819,443) (29,615,000,000)

Income tax paid 14 (43,268,880,786) (21,804,158,108)

Other receipts from operating activities 15 45,788,100 527,670,000

Other payments for operating activities 16 (819,680,921) (766,265,678)

Net cash flows from operating activities 20 (41,139,252,626) 354,024,635,855

CASH FLOWS FROM INVESTING ACTIVITIES

Payments for additions to fixed assets 21 (10,503,152,006) (7,811,862,086)

Proceeds from disposals of fixed assets 22 250,000,000 78,000,000

Payments for purchase of debt instruments 23 (52,000,000,000) -

Payments for investments in other entities 25 (59,455,609,500) -

Proceeds from disposals of investments in other entities 26 31,589,250,000 200,191,250,000

Receipts of interests and dividends 27 159,601,930,696 256,113,756,885

Net cash flows from investing activities 30 69,482,419,190 448,571,144,799

Mã số

2015 VND

2014 VND

CASH FLOWS FROM FINANCING ACTIVITIES

Proceeds from bonds issued 33 75,000,000,000 178,000,000,000

Proceeds from short-term borrowings 33 100,000,000,000 150,000,000,000

Payments to settle bond principals and short-term borrowings 34 (228,000,000,000) (600,000,000,000)

Profits distributed to the Parent Bank 36 (233,937,996,640) (186,585,569,711)

Net cash flows from financing activities 40 (286,937,996,640) (458,585,569,711)

Net cash flows during the year (50 = 20 + 30 + 40) 50 (258,594,830,076) 344,010,210,943

Cash and cash equivalents at the beginning of the year 60 515,709,414,817 171,699,203,874

Cash and cash equivalents at the end of the year (70 = 50 + 60) (Note 5) 70 257,114,584,741 515,709,414,817

2015 VND

2014 VND

SIGNIFICANT NON-CASH TRANSACTIONS

Purchase of investments by netting off receivables - 66.323.329.885

Disposals of investments purchased through investment cooperation contracts - 23.780

Financial statements

29 February 2016

Prepared by


Reviewed by


Approved by


4746 ACB Securities

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED 31 December 2015

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 December 2015

Contributed capital

Reserve to supple-ment contributed

capitalFinancial reserve Retained profits Total

VND VND VND VND VND

Balance at 1 January 2014 1,500,000,000,000 72,725,448,008 93,975,347,223 12,829,960,118 1,679,530,755,349

Net profit for the year - - - 249,134,672,568 249,134,672,568

Appropriations to reserves and funds

- 12,592,796,616 12,592,796,616 (25,185,593,232) -

Profits distributed to the Parent Bank

- - - (236,779,039,454) (236,779,039,454)

Balance at 31 Decem-ber 2014 1,500,000,000,000 85,318,244,624 106,568,143,839 - 1,691,886,388,463

Net profit for the year - - - 96,344,103,876 96,344,103,876

Appropriations to reserves and funds

- 4,935,363,156 4,935,363,156 (9,870,726,312) -

Balance at 31 Decem-ber 2015 1,500,000,000,000 90,253,607,780 111,503,506,995 86,473,377,564 1,788,230,492,339

1. Reporting entity(a) Ownership structure

ACB Securities Company (“the Company”) is incorporated as a limited liability company in Vietnam. The Company is 100% owned subsidiary of Asia Commercial Joint Stock Bank (“the Parent Bank”), a commercial joint stock bank established in Vietnam. The consolidated financial statements of the Company for the year ended 31 December 2015 comprise the Company and its subsidiary (collectively referred to as “the Group”).

(b) Principal activities

The principal activities of the Group are to carry out securities trading activities, securities brokerage activities, securities investment advisory, securities custodian, corporate finance advisory and securities underwriting services.

(c) Normal operating cycle

The normal operating cycle of the Group is generally within 12 months.

(d) Group structure

As at 31 December 2015, the Group had one 100% owned subsidiary - ACB Capital Management Company Limited (“ACBC”), which was established pursuant to Operating Licence No. 41/UBCK-GP dated 28 October 2008, operates in fund management activities.

As at 31 December 2015, the Company had 250 employees (31/12/2014: 255 employees).

2. Basis of preparation(a) Statement of compliance

The consolidated financial statements have been prepared in accordance with Vietnamese Accounting Standards, the Vietnamese Accounting System for enterprises, Circular No. 95/2008/TT-BTC dated 24 October 2008 and Circular No. 162/2010/TT-BTC dated 20 October 2010 issued by the Ministry of Finance on the promulgation of accounting guidance for securities companies and the relevant statutory requirements applicable to financial reporting.

(b) Basis of measurement

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

(c) Annual accounting period

The annual accounting period of the Group is from 1 January to 31 December.

(d) Accounting currency

The Group’s accounting currency is Vietnam Dong (“VND”), which is also the currency used for financial statement presentation purpose.

3. Adoption of new guidance on accounting system for enterprisesOn 22 December 2014, the Ministry of Finance issued Circular No. 200/2014/TT-BTC providing guidance on Vietnamese Accounting System for enterprises (“Circular 200”). Circular 200 replaces previous guidance on Vietnamese Accounting System for enterprises under Decision No. 15/2006/QD-BTC dated 20 March 2006 (“Decision 15”) and Circular No. 244/2009/TT-BTC dated 31 December 2009. Circular 200 is effective after 45 days from the signing date and applicable for annual accounting periods beginning on or after 1 January 2015.


29 February 2016

Prepared by


Reviewed by


Approved by


4948 ACB Securities

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 December 2015 (continued)


On the same date of 22 December 2014, the Ministry of Finance also issued Circular No. 202/2014/TT-BTC providing guidance on preparation and presentation of consolidated financial statements (“Circular 202”). Circular 202 replaces previous guidance on preparation and presentation of consolidated financial statements provided in Part XIII of Circular No. 161/2007/TT-BTC dated 31 December 2007 of the Ministry of Finance. Circular 202 is also effective after 45 days from the signing date and applicable for annual accounting periods beginning on or after 1 January 2015.

The Group has adopted the applicable requirements of Circular 200 and Circular 202 effective from 1 January 2015 on a prospective basis. This adoption has no significant impact on these consolidated financial statements.

4. Summary of significant accounting policies The following significant accounting policies have been adopted by the Group in the preparation of these consolidated financial statements.

(a) Basis of consolidation

(i) Subsidiary

Subsidiary is entity controlled by the Company. The financial statements of subsidiary is included in the consolidated financial statements from the date that control commences until the date that control ceases.

ii) Transactions eliminated on consolidation

Intra-group balances, and any unrealised income and expenses arising from intra-group transactions, are eliminated in preparing the consolidated financial statements.

(b) Foreign currency transactions

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

• Exchange rate applied to buying or selling foreign currency is the exchange rate stipulated in the currency exchange contract between the Company or its subsidiary and the bank.

• Exchange rate applied to capital contribution transaction is the foreign currency buying rate at the transaction date quoted by the bank through which the owner transfers funds for the capital contribution.

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

• Exchange rate applied to recognise trade and other payables is the foreign currency selling rate at the transaction date quoted by the bank through which the Company or its subsidiary intends to make payment for the liability.

• For asset acquisitions or expenses that are settled with immediate payment, the exchange rate applied is the foreign currency buying rate at the transaction date quoted by the bank through which the Company or its subsidiary makes payment.

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

• For monetary assets (cash on hand and receivables): the foreign currency buying rate at the reporting date quoted by the commercial bank where the Company most frequently conducts transactions. Cash at banks and bank deposits are retranslated using the foreign currency buying rate of the bank where the Company deposits the money or maintains those bank accounts.

• For monetary gold: the gold buying price quoted by the State Bank of Vietnam, or in absence of such price, the gold buying price quoted by an authorised gold trading organisation.

• For monetary liabilities: the foreign currency selling rate at reporting date quoted by the commercial bank where the Company most frequently conducts transactions.

TAll foreign exchange differences are recorded in the consolidated statement of income.

(c) Classification of financial instruments

Solely for the purpose of providing disclosures about the significance of financial instruments to the Group’s financial position and results of operations and the nature and extent of risk arising from financial instruments, the Group clas-sifies its financial instruments as follows:

(i) Financial assets

Financial assets at fair value through profit or loss

A financial asset at fair value through profit or loss is a financial asset that meets either of the following conditions:

• It is considered by management as held for trading. A financial asset is considered as held for trading if:

- it is acquired principally for the purpose of selling it in the near term;

- there is evidence of a recent pattern of short-term profit-taking; or

- a derivative (except for a derivative that is financial guarantee contract or a designated and effective hedging instrument).

• Upon initial recognition, it is designated by the Group as financial asset at fair value through profit or loss.

Held-to-maturity investments

Held-to-maturity investments are non-derivative financial assets with fixed or determinable payments and a fixed maturity that the Group has the positive intention and ability to hold to maturity, other than:

• those that the Group on initial recognition designates as financial assets at fair value through profit or loss;

• those that the Group designates as available-for-sale financial assets; and

• those that meet the definition of loans and receivables.

Loans and receivables

Loans and receivables are non-derivative financial assets with fixed or determinable payments that are not quoted in an active market, other than those:

• that the Group intends to sell immediately or in the near term, which are classified as held for trading, and those that the entity on initial recognition designates as financial assets at fair value through profit or loss;

• that the Group on initial recognition designates as available-for-sale financial assets; or

• for which the Group may not recover substantially all of its initial investment, other than because of credit deterioration, which are classified as available-for-sale financial assets.

Available-for-sale financial assets

Available-for-sale financial assets are non-derivative financial assets that are designated as available for sale or those are not classified as:

• financial assets at fair value through profit or loss;

• held-to-maturity investments; or

• loans and receivables.

Financial statements 5150 ACB Securities

(ii) inancial liabilities

Financial liabilities at fair value through profit or loss

A financial liability at fair value through profit or loss is a financial liability that meets either of the following conditions:

• It is considered by management as held for trading. A financial liability is considered as held for trading if:

- it is incurred principally for the purpose of repurchasing it in the near term;

- there is evidence of a recent pattern of short-term profit-taking; or

- a derivative (except for a derivative that is financial guarantee contract or a designated and effective hedging instrument).

• Upon initial recognition, it is designated by the Group as financial liability at fair value through profit or loss.

Financial liabilities carried at amortised cost

Financial liabilities which are not classified as financial liabilities at fair value through profit or loss are classified as finan-cial liabilities carried at amortised cost.

The above described classification of financial instruments is solely for presentation and disclosure purpose and is not intended to be a description of how the instruments are measured. Accounting policies for measurement of financial instruments are disclosed in other relevant notes.

(d) Cash and cash equivalents

Cash comprises cash on hand and call deposits. Cash equivalents are short-term highly liquid investments that are readily convertible to known amount of cash, are subject to an insignificant risk of changes in value and are held for the purpose of meeting short-term cash commitments rather than for investment or other purposes.

Cash and cash equivalents also include customers’ deposits for securities transactions, which are segregated from the Group’s bank balances.

(e) Investment securities

(i) Trading securities

Classification

Trading securities are securities which are acquired principally for the purpose of selling them in the near term or there is evidence of a recent pattern of short-term profit-taking.

Recognition

The Group recognises trading securities on the date it becomes a party to the contractual provisions of the invest-ments (trade date accounting).

Measurement

Listed trading securities are stated at cost less allowance for diminution in value by reference to closing prices of securities from the Ho Chi Minh City Stock Exchange and the Hanoi Stock Exchange at the reporting date.

Unlisted trading securities which are registered for trading on the UPCom market are stated at cost less allowance for diminution in value by reference to closing prices of securities from UPCom at the reporting date.

Unlisted trading securities which are not registered for trading on the UPCom but are actively traded on over-the-counter market (“OTC market”) are stated at cost less allowance for diminution in value by reference to the average price of the latest transaction prices obtained from three securities companies having charter capital over VND300 billion within one month prior to the reporting date.

Unlisted trading securities which are not actively traded on the OTC market are stated at cost.

The allowance for diminution in the value of trading securities as mentioned above is reversed if the prices of securities increase after the allowance is made. An allowance is reversed only to the extent that the securities’ carrying amounts do not exceed the carrying amounts that would have been determined if no allowance had been recognised.

Cost of trading securities is determined on a weighted average basis.

Derecognition

Trading securities are derecognised when the rights to receive cash flows from the securities have expired or the Group has transferred substantially all risks and rewards of ownership.

(ii) Held-to-maturity securities

Classification

Held-to-maturity securities are debt securities with fixed term and fixed or determinable payments, where the Group has the positive intention and ability to hold until maturity.

Recognition

The Group recognises held-to-maturity securities on the date it becomes a party to the contractual provisions of the investments (trade date accounting).

Measurement

Held-to-maturity securities are initially recorded at cost at the acquisition date. Subsequently these securities are stated at cost less any allowance for diminution in value.

Premiums and discounts arising from purchases of held-to-maturity securities are amortised to the consolidated statement of income using a straight-line basis over the period from the acquisition date to the maturity date.

Post-acquisition interest income of held-to-maturity securities is recognised in the consolidated statement of income on an accrual basis.

Derecognition

Held-to-maturity securities are derecognised when the rights to receive cash flows from these securities have expired or the Group has transferred substantially all risks and rewards of ownership.

(iii) Available-for-sale securities

Classification

Available-for-sale securities are equity securities and debt securities which are acquired for an indefinite period and may be sold at any time.

Recognition

The Group recognises available-for-sale securities on the date it becomes a party to the contractual provisions of the investments (trade date accounting).




5352 ACB Securities

(h) Accounts receivable

Advances to customers for securities trading activities, margin loans, trade and other receivables are stated at cost less allowance for doubtful debts.

Allowance for doubtful debts is made based on the overdue status of debts or expected losses on undue debts which may occur when an economic organisation is bankrupted or liquidated; or debtor is missing, running away, being prosecuted, in prison, under a trial or pending execution of sentences or deceased.

The allowance for doubtful debts based on overdue status is made in accordance with Circular 228 as follows:

Overdue status Allowance rate

From six (06) months to less than one (01) year 30%

From one (01) year to less than two (02) years 50%

From two (02) years to less than three (03) years 70%

From three (03) years and over 100%

For overdue debts, the Board of Directors also assesses the expected recovery of the debts in determining the additional allowance (if necessary) in addition to the allowance based on the overdue status.

Allowance for doubtful debts based on the expected losses of undue debts is determined by the Board of Direc-tors after giving consideration to the recovery of these debts and related collateral assets.

(i) Tangible fixed assets

(i) Cost

Tangible fixed assets are stated at cost less accumulated depreciation. The initial cost of a tangible fixed asset comprises its purchase price, including import duties, non-refundable purchase taxes and any directly attribut-able costs of bringing the asset to its working condition and location for its intended use. Expenditure incurred after tangible fixed assets have been put into operation, such as repairs and maintenance and overhaul costs, is normally charged to the consolidated statement of income in the period in which the costs are incurred. In situations where it can be clearly demonstrated that the expenditure has resulted in an increase in the future economic benefits expected to be obtained from the use of tangible fixed assets beyond their originally assessed standard of performance, the expenditure is capitalised as an additional cost of tangible fixed assets.

(ii) Depreciation

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

• buildings 25 years

• machinery and equipment 3-5 years

• motor vehicles 6 years

• management equipment 3 years

• other fixed assets 3-6 years

Measurement

Listed available-for-sale securities are stated at cost less allowance for diminution in value by reference to closing prices of securities from the Ho Chi Minh City Stock Exchange and the Hanoi Stock Exchange at the reporting date.

Unlisted available-for-sale equity securities which are registered for trading on the UPCom market are stated at cost less allowance for diminution in value by reference to closing prices of securities from UPCom at the report-ing date.

Unlisted available-for-sale equity securities which are not registered for trading on the UPCom market but are actively traded on the OTC market are stated at cost less allowance for diminution in value by reference to the average price of the latest transaction prices obtained from three securities companies having charter capital over VND300 billion within one month prior to the reporting date.

Unlisted available-for-sale equity securities which are not actively traded on the OTC market are stated at cost.

Other available-for-sale debt securities are initially recorded at cost at the acquisition date. Then, these securities are stated at cost less allowance for diminution in value.

Premiums and discounts arising from purchases of available-for-sale securities are amortised to the consolidated statement of income using a straight-line basis over the period from the acquisition date to the maturity date, in case these securities are sold before their maturity date, the unamortised premiums and discounts will be rec-ognised fully in the consolidated statement of income at the disposal date.

The allowance for diminution in the value of available-for-sale securities as mentioned above is reversed if the prices of securities increase after the allowance is made. An allowance is reversed only to the extent that the se-curities’ carrying amounts do not exceed the carrying amounts that would have been determined if no allowance had been recognised.

Derecognition

Available-for-sale securities are derecognised when the rights to receive cash flows from these securities have expired or the Group has transferred substantially all risks and rewards of ownership.

(f ) Capital contribution, long-term investments

Other long-term investments

Other long-term investments are investments in equity instruments of entities that the Group does not have control or significant influence. These investments must be held, recovered or paid for a period of more than one year. Other long-term investments are stated at cost less allowance for diminution in value in the consolidated financial statements (see Note 4(g)).

(g) Allowance for diminution in the value of long-term investments

Long-term investments are stated at cost less allowance for diminution in value made in accordance with Circular No. 228/2009/TT-BTC dated 7 December 2009 (“Circular 228”) and Circular No. 89/2013/TT-BTC dated 28 June 2013 (“Circular 89”) issued by the Ministry of Finance. Accordingly, the allowance for diminution in value is made when the investees made loss, except the planned loss, the allowance for diminution in value is the difference between the actual capital contributed by all investors and the actual equity multiply (x) with the percentage of actual capital contributed by the Group over total actual capital contributed by all investors. The allowance is reversed if there is a subsequent increase in the recoverable amount after the allowance was recognised. An allowance is reversed only to the extent that the investment’s carrying amount does not exceed the carrying amount that would have been determined if no allowance had been recognised.




5554 ACB Securities

(iii) Disposals

Gains and losses incurred from the disposals, transfers of fixed assets are recognised by the difference between the net proceeds received by disposals and the net book value of these assets and recorded in other income or other expenses in the consolidated statement of income.

(j) Intangible fixed assets

Software

Cost of acquiring new software, which is not an integral part of the related hardware, is capitalised and treated as an intangible asset. Software costs are amortised on a straight-line basis over 3 years.

(k) Construction in progress

Construction in progress represents the costs of trading securities software which have not been fully complet-ed or installed. No depreciation is provided for construction in progress during the period of construction and installation.

(l) Long-term prepaid expenses

(i) Tools and instruments

Tools and instruments include assets held for use by the Group in the normal course of business whose costs of in-dividual items are less than VND30 million and therefore not qualified for recognition as fixed assets under Circular No. 45/2013/TT-BTC dated 25 April 2013 of the Ministry of Finance which provides the guidance on management, use and depreciation of fixed assets (“Circular 45”). Cost of tools and instruments are amortised on a straight-line basis over a period ranging from 2 to 3 years.

(ii) Golf club memberships

Golf club memberships are recorded at cost and amortised on a straight-line basis over 35 years.

(m) Trade and other payables

Trade and other payables are stated at their costs.

(n) Provisions

A provision is recognised if, as a result of a past event, the Group has a present legal or constructive obligation that can be estimated reliably, and it is probable that an outflow of economic benefits will be required to settle the obligation. Provisions are determined by discounting the expected future cash flows at a pre-tax rate that reflects current market assessments of the time value of money and the risks specific to the liability.

(o) Taxation

Income tax on the profit or loss for the period comprises current and deferred tax. Income tax is recognised in the consolidated statement of income except to the extent that it relates to items recognised directly to equity, in which case it is recognised in equity.

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

Deferred tax is provided using the balance sheet method, providing for temporary differences between the carry-ing amounts of assets and liabilities for financial reporting purposes and the amounts used for taxation purposes. The amount of deferred tax provided is based on the expected manner of realisation or settlement of the carrying amount of assets and liabilities using tax rates enacted or substantively enacted at the reporting date.

A deferred tax asset is recognised only to the extent that it is probable that future taxable profits will be available against which the temporary differences asset can be utilised. Deferred tax assets are reduced to the extent that it is no longer probable that the related tax benefit will be realised.

(p) Statutory reserves

The reserve to supplement contributed capital is allocated from profit after tax. The purpose of this reserve is to supplement contributed capital.

The financial reserve is allocated from profit after tax and is to cover losses incurred during the normal course of business. The utilisation of the reserve to supplement contributed capital and the financial reserve are com-plied with Article 15 of Circular No. 146/2014/TT-BTC dated 6 October 2014 issued by the Ministry of Finance (“Circular 146”).

(q) Revenue

(i) Revenue from securities brokerage

Revenue from securities brokerage activities is recognised in the consolidated statement of income when the securities transaction of the customer has been processed.

(ii) Revenue from securities trading

Revenue from securities trading activities is recognised in the consolidated statement of income upon receipt of the matched notices of securities trading transactions from the Ho Chi Minh City Stock Exchange and the Hanoi Stock Exchange (for listed securities) and completion of the agreement on transfer of assets (for unlisted securities).

(iii) Revenue from securities investment advisory

Revenue from securities investment advisory activities is recognised in the consolidated statement of income in proportion to the stage of completion of the transaction at the reporting date. The stage of completion is assessed by reference to work performed.

(iv) Other revenue

Other revenue mainly represents interest income on deposits at banks, cash advances to customers for securities trading activities and margin loans. Other revenue is recognised in the consolidated statement of income on an accrual basis.

(v) Dividend income

Dividend income is recognised in the consolidated statement of income when the Group’s right to receive divi-dends is established.

Dividends in shares and bonus shares are not recognised as income. The Group only updates and monitors the additional shares quantity.

(r) Investment cooperation contracts

The Group transfers its cash to the investment cooperation party and this party uses this cash to invest into listed securities on behalf of the Group pursuant to the terms in investment cooperation contracts. The assets and obligations relating to these contracts are recognised on the consolidated balance sheet in accordance with the accounting policies on recognition and classification for the respective assets and obligations of the Group.

The gains/losses on the sales of listed securities underlying investment cooperation contracts are recognised in the consolidated statement of income of the Group based on matched notices of securities transactions from the Ho Chi Minh City Stock Exchange and the Hanoi Stock Exchange.

Allowance for diminution in value of securities underlying investment cooperation contracts are determined in accordance with the method used to determine the allowance for diminution in value of investments as de-scribed in Notes 4(e) and 4(g).




5756 ACB Securities

(s) Interest expense

Interest expense is recognised in the consolidated statement of income on an accrual basis.

(t) Operating lease payments

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

(u) Related parties

Parties are considered to be related to the Group if one party has the ability, directly or indirectly, to control the other party or exercise significant influence over the other party in making financial and operating decisions, or where the Group and the other party are subject to common control or significant influence. Related parties may be individuals or corporate entities and include close family members of any individual considered to be a related party.

Related companies of the Group includes the Parent Bank and its subsidiaries and associates.

(v) Nil balances

Items or balances required by Circular No. 95/2008/TT-BTC dated 24 October 2008 and Circular No. 162/2010/TT-BTC dated 20 October 2010, issued by the Ministry of Finance on the promulgation of accounting guidance for securities companies, that are not shown in these consolidated financial statements indicate nil balances.

5. Cash and cash equivalents

6. Volume and value of transactions during the year

31/12/2015 VND

31/12/2014 VND

Cash on hand 679,017 16,703,453

Cash in banks 120,113,905,724 515,692,711,364

Cash equivalents 137,000,000,000 -

In which: Customers’ cash deposits for securities transactions 67,960,615,791 73,747,306,539

257,114,584,741 515,709,414,817

As at 31 December 2015 and 31 December 2014, the Group had no cash and cash equivalents denominated in cur-rencies other than VND.

Volume of transactions during the year

Value of transactions during the year

2015 2014 2015 2014

VND VND

a) The Group

Shares 7,605,460 25,625,887 91,770,154,368 458,328,453,415

Bonds 520 200,000 52,000,000,000 200,000,000,000

Fund certificates 2,000,000 2,000,000 23,376,000,000 20,040,000,000

b) Investors/customers

Shares 3,641,512,409 5,017,872,606 54,086,237,423,380 77,057,114,911,610

Bonds 90,495,846 143,715,221 9,507,674,284,942 15,460,547,228,274

Fund certificates 100,170 651,200 976,251,000 6,366,512,000

3,741,714,405 5,190,064,914 63,762,034,113,690 93,202,397,105,299




5958 ACB Securities

As at 31 December 2015 Quantity of shares/bonds Book value

Comparison to market priceMarket value

Increase (Decrease)

VND VND VND VND

I. Trading securities 7,281,591 146,045,514,506 63,495,758 (2,576,706,977)

Listed shares 11,262 171,250,046 62,440,458 (46,348,304) 187,342,200

SSI - 12,592,796,616 12,592,796,616 (25,185,593,232) -

Others 10,629 157,541,246 62,096,658 (46,348,304) 173,289,600

Listed fund certificates 2,000,000 20,040,000,000 - (840,000,000) 19,200,000,000

E1VFVN30 2,000,000 20,040,000,000 - (840,000,000) 19,200,000,000

Unlisted shares 5,270,329 82,822,398,904 1,055,300 (1,690,358,673)

Saigon Port Joint Stock Company 910,499 10,470,738,500 - - 10,470,738,500

Minh Hai Export Frozen Seafood Processing Joint Stock Company

44,000 2,400,000,000 - (1,678,400,000) 721,600,000

Vietnam Asia Commercial Joint Stock Bank

4,314,465 69,932,182,531 - - Chưa xác định được

Others 1,365 19,477,473 1,055,300 (11,958,673) 8,574,500

Deposits at banks with original term to maturity of less than 12 months (a)

không áp dụng 43,011,865,556 - - 43,011,865,556

As at 31 December 2014 Quantity of shares/bonds Book value

Comparison to market priceMarket value

Increase (Decrease)

VND VND VND VND VND

I. Trading securities 6.370.604 424.816.718.250 54.919.892 (2.974.095.252)

Listed shares 11.262 171.250.046 62.440.458 (46.348.304) 187.342.200

VCB - 12.592.796.616 12.592.796.616 (25.185.593.232) -

Others 10.629 157.541.246 62.096.658 (46.348.304) 173.289.600

Listed fund certificates 2.000.000 20.040.000.000 - (1.240.000.000) 18.800.000.000

E1VFVN30 2.000.000 20.040.000.000 - (1.240.000.000) 18.800.000.000

Unlisted shares 4.359.703 72.351.061.322 812.900 (1.690.170.710)

Minh Hai Export Frozen Seafood Processing Joint Stock Company

44.000 2.400.000.000 - (1.678.400.000) 721.600.000

Vietnam Asia Commercial Joint Stock Bank

4.314.465 69.932.182.531 - - Chưa xác định được

Others 1.238 18.878.791 812.900 (11.770.710) 7.920.981

Deposits at banks with original term to maturity of less than 12 months (a)

không áp dụng 332.268.602.778 - - 332.268.602.778

7. Investments

Details of trading securities held by the Group as at 31 December 2014 and 31 December 2015 were as follows:




6160 ACB Securities

Quantity Book value Allowance for diminution in value

Closing balance Opening balance Closing balance Opening balance Closing balance Opening balance

VND VND VND VND VND

II. Investment securities 13,845,130 - 235,366,012,860 - (45,839,390,360) -

1. Available-for-sale securities 13,844,610 - 183,366,012,860 - (45,839,390,360) -

Listed shares (a) 8,674,557 - 123,910,403,360 - (45,839,390,360) -

BTS (b) 8,674,557 - 123,910,403,360 - (45,839,390,360) -

Unlisted shares 5,170,053 - 59,455,609,500 - - -

Saigon Port Joint Stock Company 5,170,053 - 59,455,609,500 - - -

2. Held-to-maturity securities 520 - 52,000,000,000 - - -

Corporate bonds 520 - 52,000,000,000 - - -

Khai Toan Joint Stock Company 520 - 52,000,000,000 - - -

III. Other financial investments - 11,282,057 - 150,094,515,860 - (14,185,432,736)

Listed shares (a) - 10,674,557 - 144,010,403,360 - (14,185,432,736)

BTS - 8,674,557 - 123,910,403,360 - (14,185,432,736)

ASIAGF - 2,000,000 - 20,100,000,000 - -

Unlisted shares - 607,500 - 6,084,112,500 - -

Vinh Ha Food Processing and Construction Joint Stock Company

- 607,500 - 6,084,112,500 - -

Details of held-to-maturity securities, capital contribution and other financial investments held by the Group at 31 December 2014 and 31 December 2015 were as follows:

(a) Included in listed shares of investment securities as at 31 December 2015 is VND20,132 million (31/12/2014: VND22,354 million listed shares of other long-term investments) which were purchased by the Group through in-vestment cooperation contracts with A Chau Investment Joint Stock Company (“ACI”) and Binh Chanh Manufactur-ing – Trading Services Joint Stock Company (“Binh Chanh”). The entire ownership, risks and rewards of these shares belong to the Group but these shares are registered under the names of these two fore-mentioned companies.

(b) Included in listed shares as at 31 December 2015 is 6,437,702 shares with the carrying amount of VND57,939,318,000 (31/12/2014: VND91,028,290,911) which were pledged with a bank as security for loans granted to the Company (Note 17).

Movements in the allowance for diminution in the value of short-term investments during the year were as follows:

Movements in the allowance for diminution in the value of long-term investments during the year were as follows:

2015 VND

2014 VND

Opening balance 2,974,095,252 227,478,676,464

Allowance made during the year 905,166,071 1,257,701,073

Allowance reversed during the year (1,302,554,346) (225,762,282,285)

Closing balance 2,576,706,977 2,974,095,252

2015 VND

2014 VND

Opening balance 14,185,432,736 15,927,129,892

Allowance made during the year 45,839,390,360 1,614,632,723

Allowance reversed during the year (14,185,432,736) (3,356,329,879)

Closing balance 45,839,390,360 14,185,432,736

31/12/ 2015 VND

31/12/2014 VND

Margin loans (i) 1,316,466,927,981 1,099,479,449,117

Auction deposits receivables 44,400,400,000 -

Advances to customers for sales of securities (ii) 5,298,388,465 -

Receivables from sales of securities underlying investment cooperation contracts

23,780 23,780

Dividend receivables 151,000 202,200

Interest receivables from margin loans 12,145,391,537 9,958,926,359

Interest receivables from term deposits at banks 437,767,883 641,473,825

Bond interest receivables 227,500,000 -

Other receivables 1,747,589,066 2,137,083,805

1,380,724,139,712 1,112,217,159,086

2015 VND

2014 VND

Brokerage fees receivable from customers 1,793,101,204 1,769,118,988

8. Accounts receivable from securities trading activities

9. Other receivables




6362 ACB Securities

2015 Buildings Machinery and equipment Motor vehicles Management

equipmentOther tangible

fixed assets Total

VND VND VND VND VND

Cost

Opening balance 62,445,734,395 7,014,320,204 3,009,178,509 11,552,731,119 2,425,654,203 86,447,618,430

Additions - 38,000,000 - 2,879,615,800 - 2,917,615,800

Disposals - - (448,617,209) (42,350,000) - (490,967,209)

Closing balance 62,445,734,395 7,052,320,204 2,560,561,300 14,389,996,919 2,425,654,203 88,874,267,021

Accumulated depreciation

Opening balance 16,262,693,201 6,980,871,074 3,009,178,509 5,608,048,605 1,646,897,818 33,507,689,207

Charge for the year 2,498,254,890 39,782,466 - 2,799,811,206 293,781,227 5,631,629,789

Disposals - - (448,617,209) (2,273,960) - (450,891,169)

Closing balance 18,760,948,091 7,020,653,540 2,560,561,300 8,405,585,851 1,940,679,045 38,688,427,827

Net book value

Opening balance 46,183,041,194 33,449,130 - 5,944,682,514 778,756,385 52,939,929,223

Closing balance 43,684,786,304 31,666,664 - 5,984,411,068 484,975,158 50,185,839,194

2015 Buildings Machinery and equipment Motor vehicles Management

equipmentOther tangible

fixed assets Total

VND VND VND VND VND

Cost

Opening balance 62,445,734,395 7,801,304,660 3,572,228,509 4,615,213,021 2,878,416,203 81,312,896,788

Additions - - - 6,995,066,086 192,236,000 7,187,302,086

Disposals - (786,984,456) (563,050,000) (57,547,988) (644,998,000) (2,052,580,444)

Closing balance 62,445,734,395 7,014,320,204 3,009,178,509 11,552,731,119 2,425,654,203 86,447,618,430

Accumulated depreciation

Opening balance 13,764,012,797 7,700,632,010 3,486,671,066 3,907,775,328 2,012,433,113 30,871,524,314

Charge for the year 2,498,680,404 67,223,520 85,557,443 1,752,119,211 279,462,705 4,683,043,283

Disposals - (786,984,456) (563,050,000) (51,845,934) (644,998,000) (2,046,878,390)

Closing balance 16,262,693,201 6,980,871,074 3,009,178,509 5,608,048,605 1,646,897,818 33,507,689,207

Net book value

Opening balance 48,681,721,598 100,672,650 85,557,443 707,437,693 865,983,090 50,441,372,474

Closing balance 46,183,041,194 33,449,130 - 5,944,682,514 778,756,385 52,939,929,223

(i) The margin loans were granted to customers for margin trade. These loans had original term of 90 days and earned interest rate of 0.026% to 0.041% per day during the year (2014: 0.034% to 0.04%). The initial margin rate and main-tenance margin rate for the margin trade are 50% and 30%, respectively.

(ii) Advances to customers for sales of securities earned interest rate of 0.036% per day and had the original term of 2 days during the year.

Movements in the allowance for doubtful debts during the year were as follows:

Included in the cost of tangible fixed assets were assets costing VND15,057,742,940 which were fully depreciated as of 31 December 2015 (31/12/2014: VND13,821,068,185), but which are still in use.

As at 31 December 2015, tangible fixed assets with a carrying amount of VND43,684,786,304 (31/12/2014: VND46,183,041,194) were pledged with a bank as security for loans granted to the Company (Note 17).

2015 VND

2014 VND

Opening balance 1,223,429,440 7,618,282,970

Allowance made during the year 89,413,416 2,359,956,590

Allowance reversed during the year (78,738,000) (8,754,810,120)

Closing balance 1,234,104,856 1,223,429,440

10. Allowance for doubtful debts

11. Tangible fixed assets




6564 ACB Securities

According to Decision No. 45/QD-VSD dated 22 May 2014 issued by the Vietnam Securities Depository, the Company is required to deposit an initial amount of VND120 million at the Vietnam Securities Depository and an annual contri-bution of 0.01% of the total value of brokered securities, which are listed and registered for transactions in the Stock Exchanges, in the previous year with the maximum of annual contribution of VND2.5 billion to Payment Support Fund. The maximum limit for the Company’s contribution to the Payment Support Fund is VND20 billion.

Movements of deposits at Payment Support Fund during the year were as follows:

Included in the cost of intangible fixed assets were assets costing VND2,498,885,796 which were fully amortised as of 31 December 2015 (31/12/2014: VND2,498,885,796), but which are still in use.

Major constructions in progress were as follows:

2015 VND

2014 VND

Opening balance 18,144,000,003 15,644,000,003

Additions during the year 819,680,921 766,265,678

Interest income during the year 1,036,319,076 1,733,734,322

Closing balance 20,000,000,000 18,144,000,003

2015 VND

2014 VND

Opening balance - -

Additions 11,980,022,805 -

Closing balance 11,980,022,805 -

2015 VND

2014 VND

Securities trading software 11,980,022,805 -

2015 VND

2014 VND

Deposits at Payment Support Fund 20,000,000,000 18,144,000,003

2015 VND

2014 VND

Cost

Opening balance 3,123,445,796 2,537,629,746

Additions 317,100,000 624,560,000

Written off - (38,743,950)

Closing balance 3,440,545,796 3,123,445,796

Accumulated amortisation

Opening balance 2,686,627,366 2,532,854,757

Charge for the year 252,512,473 192,516,559

Written off - (38,743,950)

Closing balance 2,939,139,839 2,686,627,366

Net book value

Opening balance 436,818,430 4,774,989

Closing balance 501,405,957 436,818,430

2015Tools and

instruments VND

Golf club memberships

VND

Others VND

Total VND

Opening balance 294,252,054 742,948,737 135,227,279 1,172,428,070

Additions 225,169,260 - 15,510,094,900 15,735,264,160

Amortisation for the year (249,433,568) (26,533,948) (877,274,084) (1,153,241,600)

Closing balance 269,987,746 716,414,789 14,768,048,095 15,754,450,630

2014Tools and

instruments VND

Golf club memberships

VND

Others VND

Total VND

Opening balance 769,726,584 769,482,685 533,572,003 2,072,781,272

Additions 309,149,331 - 162,868,644 472,017,975

Amortisation for the year (784,623,861) (26,533,948) (561,213,368) (1,372,371,177)

Closing balance 294,252,054 742,948,737 135,227,279 1,172,428,070

13. Construction in progress

14. Long-term prepaid expenses

15. Deposits at Payment Support Fund

12. Intangible fixed assets




6766 ACB Securities

(*) The bank borrowing is secured by 6,437,702 shares of Vicem But Son Cement Joint Stock Company with the carrying amount of VND57,939,318,000 (31/12/2014: 4,314,465 shares of Vietnam Asia Commercial Joint Stock Bank with the carrying amount of VND69,932,182,531 and 6,437,702 shares of Vicem But Son Cement Joint Stock Company with the carrying amount of VND91,028,290,911) and tangible fixed assets which is the building at 107N Truong Dinh with the carrying amount of VND43,684,786,304 (31/12/2014: VND46,183,041,194) (Notes 7 and 11).

Accounts payable for securities trading activities of customers represent the deposits from the customers for securities trading activities.

2015 VND

2014 VND

Personal income tax of employees 546,832,802 491,883,997

Personal income tax of investors 1,704,047,465 2,551,346,580

Corporate income tax - 13,584,713,199

Other taxes 744,471,597 378,619,488

2,995,351,864 17,006,563,264

31/12/2015 VND

31/12/2014 VND

Accrued bond interest 177,083,333 37,305,556

Accrued loan interest 802,777,777 1,432,500,000

Fees payable to Vietnam Securities Depository, Stock Exchanges 2,274,565,719 2,567,240,410

Others 856,051,591 18,000,000

4,110,478,420 4,055,0,45,966

31/12/2015 VND

31/12/2014 VND

Profit to be transferred to the Parent Bank - 233,937,996,640

Other payables to the Parent Bank 13,893,099,074 -

Other payables 2,528,480,367 133,143,585

16,421,579,441 234,071,140,225

31/12/2015 VND

31/12/2014 VND

Accounts payable for securities trading activities of customers 74,507,686,268 75,430,686,539

2015 VND

2014 VND

Rental deposits for offices 503,669,100 549,457,200

18. Taxes payable to State Treasury

19. Accrued expenses

20. Other short-term payables

21. Accounts payable for securities trading activities

16. Other long-term assets

17. Short-term borrowings and liabilities

2015Interest rate per annum

Maturity date

Balance as at 1/1/2015 Additions (Payments)

Balance as at

31/12/2015

% VND VND VND VND

Short-term bonds issued for:

Vietcombank Fund Management 8.50% 21/12/2016 - 75,000,000,000 - 75,000,000,000

Minh Phuong Commercial Service Co., Ltd

8.50% 29/12/2015 30,000,000,000 - (30,000,000,000) -

Trieu Thi Tam 8.50% 29/12/2015 1,000,000,000 - (1,000,000,000) -

Nguyen Thi Thu Huong 9.00% 29/12/2015 3,000,000,000 - (3,000,000,000) -

Huynh Van Son 9.00% 29/12/2015 1,000,000,000 - (1,000,000,000) -

Dip Van Minh 9.00% 29/12/2015 3,000,000,000 - (3,000,000,000) -

Nguyen Thi Ngoc Tuyet 9.00% 29/12/2015 2,000,000,000 - (2,000,000,000) -

Nguyen Thai Thao Ly 8.50% 29/12/2015 30,000,000,000 - (30,000,000,000) -

Tran Thi Tuyet Van 9.00% 29/12/2015 8,000,000,000 - (8,000,000,000) -

Short-term borrowings from:

Vietnam Thuong Tin Commercial Joint Stock Bank

9.00% 18/05/2015 150,000,000,000 - (150,000,000,000) -

Vietnam Thuong Tin Commercial Joint Stock Bank (*)

8.50% 27/2/2016 - 100,000,000,000 - 100,000,000,000

228.000.000.000 175.000.000.000 (228.000.000.000) 175.000.000.000




6968 ACB Securities

According to Circular No. 146/2014/TT-BTC dated 6 October 2014 issued by the Ministry of Finance, securities compa-nies are required to make the following allocations from profit after tax before distribution of profits:

2015 VND

2014 VND

Gains from trading short-term securities 99,930,223 3,692,000

Gains from disposals of long-term investment securities 5,405,137,500 -

Dividend income 16,117,000 263,567,329

Interest income from bonds 3,928,166,666 26,929,868,296

9,449,351,389 27,197,127,625

2015 VND

2014 VND

Securities brokerage fees 16,932,527,156 24,382,284,651

Losses from trading securities activities 353,206,108 126,573,938,189

Securities custody fees 9,508,280,844 10,569,367,394

Additions/(reversals) of allowance for diminution in value of securities 31,256,569,349 (226,246,27 8,368)

Interest expenses on bonds 2,849,374,998 26,503,972,223

Interest expenses on bank loans 1,812,499,999 1,432,500,000

Direct personnel expenses 33,322,620,030 33,500,005,650

Depreciation and amortisation of fixed assets 3,830,310,124 2,489,791,277

Commission expense 3,824,971,459 2,764,737,355

Rental expenses 3,307,729,854 4,443,699,786

Other expenses 9,981,185,804 9,909,631,037

116,979,275,725 16,323,649,194

2015 VND

2014 VND

Depreciation and amortisation of fixed assets 2,053,832,138 2,385,768,565

Staff costs 25,142,956,721 23,939,321,764

Additions/(reversals) of allowance for doubtful debts 10,675,416 (6,394,853,530)

Tools, materials, stationeries 689,291,396 990,800,750

Taxes and fees 47,412,000 54,911,000

Outside services 2,075,410,572 2,855,112,619

Non-deductible value added tax 1,835,074,495 1,308,802,538

Rental expenses 1,275,950,782 953,700,467

Other expenses 9,320,099,504 8,858,459,174

42,450,703,024 34,952,023,347

2015 VND

2014 VND

Revenue from margin loans 139,967,292,175 159,280,026,405

Interest income from term deposits at banks 16,058,446,452 18,945,838,075

Interest income from demand deposits at banks 2,878,435,515 4,116,319,439

Revenue from office leasing - 642,000,000

Other revenue 1,724,968,320 3,003,146,747

160,629,142,462 185,987,330,666

Annual allocation Maximum balance

Reserve to supplement contributed capital 5% profit after tax 10% contributed capital

Financial reserve 5% profit after tax 10% contributed capital

22. Statutory reserves

23. Revenue from securities trading

25. Operating expenses

26. General and administration expenses 24. Other revenue




7170 ACB Securities

(a) Recognised in the consolidated statement of income

(b) Reconciliation of effective tax rate

(c) Applicable tax rates

The usual income tax rate applicable to the Company and its subsidiary is 22% for 2014 and 2015, and will be reduced to 20% from 2016. The income tax computation is subject to the review and approval of the tax authorities.

The followings table presents significant transactions during the year and the balances with related parties at the reporting dates of the Group:2015

VND2014 VND

Proceeds from disposals of fixed assets 250,000,000 78,000,000

Proceeds from office leasing 642,000,000 -

Other income 197,445,362 220,945,368

1,089,445,362 298,945,368

2015 VND

2014 VND

Current tax expense 27,190,313,550 70,219,229,706

Deferred tax expense - -

27,190,313,550 70,219,229,706

Transaction value

2015 VND

2014 VND

Asia Commercial Joint Stock Bank – the Parent Bank

Receipt of brokerage fees 900,900 706,430,966

Commission from the Parent Bank 4,721,074 2,170,552

Interest income 17,780,216,486 21,199,324,607

Office leasing income 642,000,000 642,000,000

Securities custody fee - 107,397,763

Service fee paid to the Parent Bank 150,903,323 125,929,440

Profit transferred to the Parent Bank 233,937,996,640 186,585,569,711

Utilities fee payables 483,280,148 200,892,773

ACB Real Estate Services Ltd – Related company

Re-purchase of investments - 66,323,329,885

Interest expenses - 18,427,500,000

Re-purchase of issued bonds - 300,000,000,000

Asset management income - 250,687,448

Other expenses - 968,186,719

Compensations of key management

Salaries and other gross benefits 3,612,143,000 4,884,998,000

Balances outstanding as of Receivables/(payables)

2015 VND

2014 VND

Asia Commercial Joint Stock Bank – the Parent Bank

Demand deposits 114,770,788,426 363,227,041,952

Deposits with original term to maturity of less than 180,011,865,556 332,268,602,778

12 months 437,767,883 641,473,825

Interest receivables from the Parent Bank - (233,937,996,640)

Profit to be transferred to the Parent Bank

2015 VND

2014 VND

Accounting profit before tax 123,534,417,426 319,353,902,274

Tax at the Company’s tax rate 27,697,466,867 70,856,535,642

Non-taxable income (523,440,774) (656,661,954)

Non-deductible expenses 16,287,457 19,356,018

27,190,313,550 70,219,229,706

27. Other income

28. Income tax

29. Significant transactions with related parties




7372 ACB Securities

(a) Financial risk management

(i) Overview

The Group has exposure to the following risks from its use of financial instruments:

• credit risk;

• liquidity risk; and

• market risk.

This note presents information about the Group’s exposure to each of the above risks, the Group’s objectives, policies and processes for measuring and managing risk.

The Groups’s Members’ Council oversees how management monitors compliance with the Group’s risk management policies and procedures, and reviews the adequacy of the risk management framework in relation to the risks faced by the Group.

(ii) Risk management framework

The Board of Directors has overall responsibility for the establishment and oversight of the Group’s risk management framework. The Board has established the Risk Management Committee, which is responsible for developing and monitoring the Group’s risk management policies. The Committee reports regularly to the Board of Directors on its activities.

The Group’s risk management policies are established to identify and analyse the risks faced by the Group, to set appropriate risk limits and controls, and to monitor risks and adherence to limits. Risk management policies and systems are reviewed regularly to reflect changes in market conditions and the Group’s activities. The Group, through its training and management standards and procedures, aims to develop a disciplined and constructive control environment in which all employees understand their roles and obligations.

The Group’s Supervisory Board is assisted in its oversight role by Internal Audit Department. Internal Audit Department undertakes both regular and ad hoc reviews of risk management controls and procedures, the results of which are reported to the Supervisory Board.

30. Movements of accounts receivable

31. Financial instruments

ItemsOpening balance Incurred during the year Closing balance Allowance made

at the year endTotal Overdue Doubtful Increase Decrease Total Overdue Doubtful

VND VND VND VND VND VND VND VND VND

1. Accounts receivable from customers - - - 32,875,107 (22,895,571) 9,979,536 - - -

2. Prepayments to suppliers 7,212,929,400 - - 7,404,815,916 (14,066,990,876) 550,754,440 - - -

3. Intra-company receivables 1,048,730,000 - - 707,069,000 (1,755,799,000) - - - -

4. Accounts receivable from securities trading activities 1,769,118,988 2,354,080 2,354,080 13,326,659,108,513 (13,326,635,126,297) 1,793,101,204 2,354,080 2,354,080 1,865,956

5. Other receivables 1,112,217,159,086 4,600,219,813 1,232,238,900 11,390,195,621,913 (11,121,688,641,287) 1,380,724,139,712 2,705,313,584 1,232,238,900 1,232,238,900

1.122.247.937.474 4.602.573.893 1.234.592.980 24.724.999.490.449 (24.464.169.453.031) 1.383.077.974.892 2.707.667.664 1.234.592.980 1.234.104.856

(b) Credit risk

Credit risk is the risk of financial loss to the Group if a customer or counterparty to a financial instrument fails to meet its contractual obligations.

To manage the level of credit risk, the Group attempts to deal with counterparties of good credit standing, and when appropriate, obtains collaterals. The Board of Directors has established a credit policy under which each new customer is analysed individually for credit worthiness before the standard terms and conditions are offered.

Concentrations of credit risk that arise from groups of customers when they have similar economic characteristics that would cause their ability to meet contractual obligations to be similarly affected by changes in economic or other conditions. The major concentrations of credit risk arise from type of customer in relation to the Group’s advances to customers for securities trading activities and margin loans.

Collaterals

The amount and type of collateral required depends on an assessment of the credit risk of the counterparty. The Group issues guidelines to implement the acceptability of types of collateral and valuation parameters. The main types of collateral obtained are listed securities and cash deposited at the Group. The Board of Directors monitors the market value of collateral, requests additional collateral in accordance with the underlying agreement, and monitors the market value of collateral obtained during its review of the adequacy of the allowance for doubtful debts.




7574 ACB Securities

Exposure to credit risk

Not considering collaterals, the Group’s maximum exposure to credit risk at the reporting date was as follows:

(i) Cash and cash equivalents and term deposits at banks with original term to maturity of less than 12 months

Cash in banks, cash equivalents and term deposits at banks with original term to maturity of less than 12 months of the Group are mainly held with Asia Commercial Joint Stock Bank, the Parent Bank. The Board of Directors does not foresee any significant credit risk from these deposits and does not expect that these financial institutions may default and cause losses to the Group.

(ii) Accounts receivable from securities trading activities and other receivables

The Group’s exposure to credit risk is influenced mainly by the individual characteristics of each customer. In response to the risk, the Board of Directors has established a credit policy under which each new customer is analysed individ-ually for creditworthiness before the Group’s standard payment and delivery terms and conditions are offered. Credit limit is established for each customer, which represents the maximum open amount without requiring approval from the General Director. The limit is reviewed annually. Debtors with balances that are overdue are requested to settle the balances before further credit is granted. The Board of Directors requires collaterals based on the assessment of the credit risk of each customer. The main types of collaterals obtained are cash and securities. The Board of Directors monitors the market value of collaterals and requests additional collaterals in accordance with the underlying agree-ment, and monitors the market value of collateral obtained during its review of the adequacy of the allowance for doubtful debts.

Accounts receivable from securities trading activities that are neither past due nor impaired mainly related to a wide range of customers for whom there was no recent history of default. The Board of Directors believes that those receiv-ables are of high credit quality.

(iii) Held-to-maturity securities

The Group limits its exposure to credit risk by only investing in corporate bonds with low credit risk according to the Board of Directors’ assessment. Given these high credit ratings, the Board of Directors does not expect any counterpar-ty may default and cause losses to the Company.

An analysis of collateral against of secured and unsecured financial assets which are neither past due nor impaired was as follows:

An aging analysis of past due but not impaired financial assets was as follows:

An aging analysis of impaired financial assets was as follows:

As at 31 December 2015 Secured VND

Unsecured VND

Total VND

Cash and cash equivalents - 257,113,905,724 257,113,905,724

Deposits at banks with original term to maturity of less than 12 months

- 43,011,865,556 43,011,865,556

Accounts receivable from customers - 9,979,536 9,979,536

Accounts receivable from securities trading activities - 1,790,747,124 1,790,747,124

Other receivables 1,326,985,236,505 51,033,589,623 1,378,018,826,128

Held-to-maturity securities 52,000,000,000 - 52,000,000,000

Deposits at Payment Support Fund - 20,000,000,000 20,000,000,000

Other financial assets - 745,684,100 745,684,100

1,378,985,236,505 373,705,771,663 1,752,691,008,168

As at 31 December 2014 Secured VND

Unsecured VND

Total VND

Cash and cash equivalents - 515,692,711,364 515,692,711,364


- 332,268,602,778 332,268,602,778

Intra-company receivables - 1,048,730,000 1,048,730,000

Accounts receivable from securities trading activities - 1,766,764,908 1,766,764,908

Other receivables 1,106,070,585,963 1,546,353,310 1,107,616,939,273

Deposits at Payment Support Fund - 18,144,000,003 18,144,000,003

Other financial assets - 561,206,200 561,206,200

1,106,070,585,963 871,028,368,563 1,977,098,954,526

31/12/ 2015 VND

31/12/ 2014 VND

Cash and cash equivalents (i) 257,113,905,724 515,692,711,364

Deposits at banks with original term to maturity of less than 12 months (i) 43,011,865,556 332,268,602,778

Accounts receivable from customers 9,979,536 -

Intra-company receivables - 1,048,730,000

Accounts receivable from securities trading activities (ii) 1,793,101,204 1,769,118,988

Other receivables (ii) 1,380,724,139,712 1,112,217,159,086

Held-to-maturity investment securities (iii) 52,000,000,000 -

Deposits at Payment Support Fund 20,000,000,000 18,144,000,003

Other financial assets 745,684,100 561,206,200

1,755,398,675,832 1,981,701,528,419

Other receivables

2015 VND

2014 VND

Overdue less than 6 months 1,473,074,684 3,367,980,913

As at 31 December 2015Accounts receivable from

securities trading activities VND

Other receivables VND

Overdue from 2 years to less than 3 years 1,627,080 -

Overdue from 3 years and above 727,000 1,232,238,900

2,354,080 1,232,238,900




7776 ACB Securities

(c) Liquidity risk

Liquidity risk is the risk that the Group will not be able to meet its financial obligations as they fall due. The Group’s approach to managing liquidity is to ensure, as far as possible, that it will always have sufficient liquidity to meet its liabilities when due, under both normal and stressed conditions, without incurring unacceptable losses or risking damage to the Group’s reputation.

The Group manages its ability to meet the expected operational expenses and servicing its debts by issuing bonds and investing its cash surpluses in short-term investments.

The financial liabilities with fixed or determinable payments have the following contractual maturities including the estimated interest payments were as follows:

(d) Market risk

Market risk is the risk that changes in market prices, such as foreign exchange rates, interest rates and equity prices will affect the Group’s results of operations or the value of its holdings of financial instruments. The objective of market risk management is to manage and control market risk exposures within acceptable parameters, while optimising the return.

(i) Currency risk

Currency risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of chang-es in foreign exchange rates.

As at 31 December 2015 and 31 December 2014, the Group’s exposure to currency is minimal because the Group did not have significant exposure to currencies other than VND.

(ii) Interest rate risk

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates.

An aging analysis of impaired financial assets was as follows:

The below table presents the fair value of collaterals for past due and impaired financial assets:

Movements in the allowance for doubtful debts during the year were presented in Note 10.

As at 31 December 2015 Carrying amount VND

Contractual cash flows

VND

Within 1 year VND

Short-term borrowings and liabilities 175,000,000,000 182,673,611,111 182,673,611,111

Accounts payable to suppliers 90,998,950 90,998,950 90,998,950

Accrued expenses 4,110,478,420 4,110,478,420 4,110,478,420

Other short-term payables 16,421,579,441 16,421,579,441 16,421,579,441

Accounts payable for securities trading activities 74,507,686,268 74,507,686,268 74,507,686,268

Dividends, bond principal and interest payables 2,581,239,238 2,581,239,238 2,581,239,238

272,711,982,317 280,385,593,428 280,385,593,428

As at 31 December 2014 Carrying amount VND

Contractual cash flows

VND

Within 1 year VND

Short-term borrowings and liabilities 228,000,000,000 239,945,958,333 239,945,958,333

Accounts payable to suppliers 291,543,700 291,543,700 291,543,700

Accrued expenses 4,055,045,966 4,055,045,966 4,055,045,966

Other short-term payables 234,071,140,225 234,071,140,225 234,071,140,225

Accounts payable for securities trading activities 75,430,686,539 75,430,686,539 75,430,686,539

Dividends, bond principal and interest payables 3,247,966,557 3,247,966,557 3,247,966,557

545,096,382,987 557,042,341,320 557,042,341,320

As at 31 December 2015 31/12/2015 VND

31/12/2014 VND

Listed securities on

- Ho Chi Minh City Stock Exchange 11,270,014,525 13,548,818,533

- Hanoi Stock Exchange 5,535,797,340 -

16,805,811,865 13,548,818,533

As at 31 December 2014Accounts receivable from

securities trading activities VND

Other receivables VND

Overdue from 1 year to less than 2 years 1,627,080 -

Overdue from 2 years to less than 3 years 727,000 1,197,238,900

Overdue from 3 years and above - 35,000,000

2,354,080 1,232,238,900




7978 ACB Securities

A change of 100 basis points in interest rate would increase or decrease the net profit after tax of the Company by VND405,600,000 (2014: Nil). This analysis is based on the assumption that all other variables remain constant.

(iii) Equity price risk

Equity price risk is the risk that the market values of equity securities decrease as a result of changes in the values of individual securities. The equity price risk exposure arises from the Group’s trading securities and investment securities.

The Group’s trading securities and investment securities are affected by market price risk arising from the uncertainty of the fluctuation of the future market value of these securities. The Group’s equity price risk is managed by the management who seeks to monitor the risk through a careful selection of securities within specified limits.

As at 31 December 2015, the market value of the Group’s listed shares and listed fund certificates belonging to trading securities and available-for-sale securities is VND97,458,337,654 (31/12/2014: VND18,967,236,600). Had the market prices of these shares decreased or increased by 13% as at 31 December 2015 (31/12/2014: 17%) with all other variables remaining constant, the Group’s profit after tax for the year would have decreased by VND9,643,340,961 or increased by VND8,394,550,981 respectively (2014: decreased by VND1,086,853,486 or increased by VND2,820,338,740).

(e) Fair value

Fair value is the amount for which an asset could be exchanged, or a liability settled, between knowledgeable, willing parties in an arm’s length transaction on the measurement date.

(i) Fair values versus carrying amounts

The fair values of financial assets and liabilities, together with the carrying amounts shown in the consolidated balance sheet, were as follows:

At the reporting date, the interest rate profile of the Group’s interest-bearing financial instruments were as follows:

Carrying amount

31/12/2015 VND

31/12/2014 VND

Fixed rate financial instruments

Cash and cash equivalents 257,113,905,724 515,692,711,364


43,011,865,556 332,268,602,778

Other receivables 1,321,765,316,446 1,099,479,449,117

Short-term borrowings and liabilities (175,000,000,000) (228,000,000,000)

Variable rate financial instruments

Held-to-maturity securities 52,000,000,000 -

31/12/2015 31/12/2014

Carrying amount Fair value Carrying amount Fair value

VND VND VND VND

Financial assets at fair value through profit or loss:

Investments in listed trading securities 19,324,901,742 19,387,342,200 18,913,129,608 18,967,236,600

Investments in unlisted trading securities

- Minh Hai Export Frozen Seafood Processing Joint Stock Company 721,600,000 721,600,000 721,600,000 721,600,000

- Vietnam Asia Commercial Joint Stock Bank 69,932,182,531 (*) 69,932,182,531 (*)

- Saigon Port Joint Stock Company 10,470,738,500 (*) - -

- Others 7,519,200 8,574,500 7,108,081 7,920,981

Held-to-maturity investments:

Held-to-maturity securities 52,000,000,000 (*) - -

Loans and receivables:

Cash and cash equivalents 257,113,905,724 257,113,905,724 515,692,711,364 515,692,711,364


43,011,865,556 (*) 332,268,602,778 (*)

Accounts receivable from customers 9,979,536 (*) - -

Intra-company receivables - - 1,048,730,000 (*)

Accounts receivable from securities trading activities 1,791,235,248 (*) 1,767,578,448 (*)

Other receivables 1,379,491,900,812 (*) 1,110,995,270,186 (*)

Deposits at Payment Support Fund 20,000,000,000 (*) 18,144,000,003 (*)

Other financial assets 745,684,100 (*) 561,206,200 (*)

Available-for-sale financial assets:

• Listed securities 78,071,013,000 78,071,013,000 129,824,970,624 87,526,633,200

• Unlisted securities 59,455,609,500 (*) 6,084,112,500 (*)

Financial liabilities carried at amortised cost:

• Short-term borrowings and liabilities (175,000,000,000) (*) (228,000,000,000) (*)

• Accounts payable to suppliers (90,998,950) (*) (291,543,700) (*)

• Accrued expenses (4,110,478,420) (*) (4,055,045,966) (*)

• Other short-term payables (16,421,579,441) (*) (234,071,140,225) (*)

• Accounts payable for securities trading activities (74,507,686,268) (*) (75,430,686,539) (*)

• Dividends, bond principal and interest payables (2,581,239,238) (*) (3,247,966,557) (*)




8180 ACB Securities

(ii) Basis for determining fair values

Listed trading securities

The fair values of listed trading securities were determined by reference to closing prices of securities from the Ho Chi Minh City Stock Exchange and the Hanoi Stock Exchange at the reporting date. The fair values of these instruments were determined for the disclosure purpose only.

(*) The Group has not determined fair values of these financial instruments for disclosure in the consolidated financial statements because information about their market prices is not available and there is currently no guidance on determination of fair value using valuation techniques under Vietnamese Accounting Standards and the Vietnam-ese Accounting System for enterprises. The fair values of these financial instruments may differ from their carrying amounts.

Lease commitments

The future minimum lease payments under non-cancellable operating leases were as follows:

31/12/2015 VND

31/12/2014 VND

Within one year 4.380.008.900 4.948.992.900

Within two to five years 16.748.607.600 16.295.091.600

More than five years 13.554.243.000 16.295.091.600

34.682.859.500 38.864.600.400

32. Commitments


29 February 2016

Prepared by


Reviewed by


Approved by


82 ACB Securities

HEAD OFFICE

41 Mac Dinh Chi Street, Da Kao Ward, District 1, HCMC H: 1900 5555 33 – E: [email protected] T: (08) 38234159 – F: (08) 38235060

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