consolidated financial statements for the year...

Vietnam Ocean Shipping Agency Corporation

Consolidated Financial Statements for the year ended31 December 2015

Vietnam Ocean Shipping Agency CorporationCorporate Information

Decision No. 5099/QD-BGTVT

Business registrationcertificate No. 4103005432

0300437898

30 December 2005

20 October 200613December 2013

The Company's business registration certificate has beenamended several times, the most recent of which is by businessregistration certificate No. 0300437898 dated 13December 2013.The Business registration certificate and its updates were issuedby the Department of Planning and Investment of Ho Chi MinhCity.

Board of Management Mr Pham Manh CuongMr Vu Xuan TrungMr Nguyen Hoai AnMr Hoang Hoa PhongMr Trinh Vu Khoa

ChairmanVice ChairmanMemberMemberMember

Ms Nguyen Thi Thanh Trang MemberMr Le Anh Tuan Member

Supervisory Board Mr Hoang VietMr Nguyen Manh HungMrLeHoangMr Vu Xuan HungMs Dang Thi Hong Lien

Board of Directors Mr Vu Xuan TrungMr Hoang Hoa PhongMr Trinh Vu KhoaMs Nguyen Thi Thanh Trang

Registered Office Floor 5, Petroland TowerNo. 12Tan Trao StreetTan Phu WardDistrict 7, Ho Chi Minh CityVietnam

Auditor KPMG LimitedVietnam

Head of Supervisory BoardMemberMemberMemberMember

General DirectorDeputy General DirectorDeputy General DirectorDeputy General Director

Vietnam Ocean Shipping Agency CorporationStatement of the Board of Directors

The Board of Directors of Vietnam Ocean Shipping Agency Corporation ("the Company")presents this statement and the accompanying consolidated financial statements of the Companyand its subsidiary (collectively "the Group") for the year ended 31 December 2015.

The Board of Directors is responsible for the preparation and fair presentation of the consolidatedfinancial statements in accordance with Vietnamese Accounting Standards, the VietnameseAccounting System for enterprises and the relevant statutory requirements applicable to financialreporting. In the opinion of the Board of Directors:

(a) the consolidated fmancial statements set out on pages 5 to 46 give a true and fair view ofthe consolidated financial position of the Group as at 31 December 2015, and of theconsolidated results of operations and the consolidated cash flows of the Group for the yearthen ended in accordance with the Vietnamese Accounting Standards, the VietnameseAccounting System for enterprises and the relevant statutory requirements applicable tofinancial reporting; and

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

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

Ho Chi Minh City, 29 March 2016

2

KPMG Limited Branch10" Floor, Sun Wah Tower115 Nguyen Hue StreetDistrict 1, Ho Chi Minh CityThe Socialist Republic of Vietnam

Telephone +84 (8) 3821 9266Fax +84 (8) 3821 9267Internet www.kpmg.com.vn

INDEPENDENT AUDITOR'S REPORT

To the ShareholdersVietnam Ocean Shipping Agency Corporation

We have audited the accompanying consolidated financial statements of Vietnam Ocean ShippingAgency Corporation ("the Company") and its subsidiary (collectively "the Group"), whichcomprise the consolidated balance sheet as at 31 December 2015, the consolidated statements ofincome and cash flows for the year then ended and the explanatory notes thereto which wereauthorised for issue by the Company's Board of Directors on 29 March 2016, as set out on pages5 to 46.

Management's Responsibility

The Company's Board of Directors is responsible for the preparation and fair presentation of thesefinancial statements in accordance with Vietnamese Accounting Standards, the VietnameseAccounting System for enterprises and the relevant statutory requirements applicable to financialreporting, and for such internal control as the Board of Directors determines necessary to enablethe preparation of financial statements that are free from material misstatement, whether due tofraud or error.

Auditor's Responsibility

Our responsibility is to express an opinion on these financial statements based on our audit. Weconducted our audit in accordance with Vietnamese Standards on Auditing. Those standardsrequire that we comply with ethical requirements and plan and perform the audit to obtainreasonable assurance about whether the financial statements are free of material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts anddisclosures in the financial statements. The procedures selected depend on the auditor'sjudgement, including the assessment of the risks of material misstatement of the financialstatements, whether due to fraud or error.Inmaking those risk assessments, the auditor considersinternal control relevant to the Group's preparation and fair presentation of the financialstatements in order to design audit procedures that are appropriate in the circumstances, but notfor the purpose of expressing an opinion on the effectiveness of the Group's internal control. Anaudit also includes evaluating the appropriateness of accounting policies used and thereasonableness of accounting estimates made by the Company's Board of Directors, as well asevaluating the overall presentation of the financial statements.

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

3

KPMG Limited, a Vietnamese limited liability company and a memberfirm of the KPMG network of independent member firms affiliatedwith KPMG International Cooperative ("KPMG International"),

a Swiss entity.

Auditor's Opinion

In our opinion, the consolidated financial statements give a true and fair view, in all materialrespects, of the consolidated financial position of Vietnam Ocean Shipping Agency Corporationand its subsidiary as at 31 December 2015 and of their consolidated results of operations and theirconsolidated cash flows for the year then ended in accordance with Vietnamese AccountingStandards, the Vietnamese Accounting System for enterprises and the relevant statutoryrequirements applicable to financial reporting.

Emphasis of Matters

Without qualifying our opinion, we draw attention to Note 34 to the consolidated financialstatements which describes contingent liabilities with Manuchar Hong Kong Limited andManuchar Vietnam Limited. Currently, these companies are suing the Company for payments ofgoods related to merchandise contracts in 2008, and related interest. At the date of these financialstatements, there is still no final judgment on the above lawsuits and the parties are in the processof negotiating an out-of-court draft settlement.

Other Matter

The consolidated financial statements of the Company for the year ended 31 December 2014 wereaudited by another firm of auditors whose report dated 31 March 2015 expressed an unqualifiedopinion on those statements with an emphasis of matters related to the contingent liabilities arisingfrom dispute with third parties.

KPMG Limited's Branch in Ho Chi Minh CityVietnamAudit Report No.: 15-01-904

Nguyen Thanh NghiPracticing Auditor RegistrationCertificate No. 0304-2013-007-1

Deputy General Director

Ho Chi Minh City, 29 March 2016

4

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Vietnam Ocean Shipping Agency CorporationConsolidated balance sheet as at 31 December 2015

Form B 01-DN(Issued under Circular No. 202120141TT-BTC

dated 22 December 2014 of the Ministry of Finance)

Code Note 31112/2015 11112015VND VND

ASSETS

Current assets 100 376,248,649,378 396,345,192,798(100 = 110+ 120+ 130+ 140+ 150)

Cash and cash equivalents 110 5 184,135,373,810216,246,123,176Cash 111 114,635,373,810156,142,123,176Cash equivalents 112 69,500,000,000 60,104,000,000

Short-term financial investments 120 37,000,000,000 32,000,000,000Held-to-maturity investments 123 6a 37,000,000,000 32,000,000,000

Accounts receivable - short-term 130 145,185,536,544 134,558,614,644Accounts receivable from customers 131 7 115,444,223,162119,968,949,280Prepayments to suppliers 132 2,832,934,162 1,035,952,126Other receivables 136 8a 35,948,996,782 21,999,003,984Allowance for doubtful debts 137 9 (9,040,617,562) (8,445,290,746)

Inventories 140 175,500 5,791,500

Other current assets 150 9,927,563,524 13,534,663,478Short-term prepaid expenses 151 636,349,773 4,923,373,606Deductible value added tax 152 9,071,124,347 8,367,383,174Taxes receivable from State Treasury 153 15b 220,089,404 243,906,698

The accompanying notes are an integralpart of these consolidatedfinancial statements5

Vietnam Ocean Shipping Agency CorporationConsolidated balance sheet as at 31 December 2015 (continued)


dated22 December 2014 of the Ministry of Finance)

Code Note31112/2015 11112015

VND VND

Long-term assets200 237,310,280,714 251,530,314,916

(200 = 210 + 220 + 230 + 240 + 250 + 260)

Accounts receivable -long-term 210 7,964,789,470 7,673,122,270Accounts receivable -long-term 216 8b 7,964,789,470 7,673,122,270

Fixed assets 220 80,569,407,263 73,812,050,571Tangible fixed assets 221 10 60,856,925,406 53,843,335,650

Cost 222 135,430,335,233 121,314,142,336Accumulated depreciation 223 (74,573,409,827) (67,470,806,686)

Intangible fixed assets 227 11 19,712,481,857 19,968,714,921Cost 228 22,331,234,828 22,331,234,828Accumulated amortisation 229 (2,618,752,971 ) (2,362,519,907)

Investment property 230 12 49,801,071,781 55,624,547,741Cost 231 74,584,104,356 79,412,091,656Accumulated depreciation 232 (24,783,032,575) (23,787,543,915)

Long-term work in progress 240 75,533,676,718 75,784,877 ,239Construction in progress 242 13 75,533,676,718 75,784,877,239

Long-term financial investments 250 6b 21,064,185,510 34,312,764,898Investments in subsidiaries 251 3,281,370,000Investments in associates, joint-ventures 252 9,474,396,147 20,826,812,356Equity investments in other entities 253 11,589,789,36311,585,694,230Allowance for diminution in the valueof long-term financial investments 254 (1,381,111,688)

Other long-term assets 260 2,377,149,972 4,322,952,197Long-term prepaid expenses 261 2,377,149,972 4,322,952,197

TOT AL ASSETS270 613,558,930,092 647,875,507,714

(270 = 100 + 200)


Vietnam Ocean Shipping Agency CorporationConsolidated balance sheet as at 31 December 2015 (continued)

FormB 01-DN(Issued under Circular No. 202120141TT-BTC


Code Note 31112/2015VND

11112015VND

RESOURCES

LIABILITIES (300 = 310 + 330) 300 275,950,189,687331,824,848,111

Current liabilities 310 261,002,499,537 316,854,877,961Accounts payable to suppliers 311 14 84,013,518,902 104,457,790,709Advances from customers 312 20,226,015,048 19,799,288,560Taxes and othes payable toState Treasury 313 15a 14,395,364,675 39,065,172,666Payables to employees 314 40,746,902,010 45,351,058,062Accrued expenses 315 7,526,728,536 10,728,469,544Unearned revenue - short-term 318 200,000,000Other payables - short-term 319 16a 87,193,844,581 89,773,707,408Bonus and welfare fund 322 17 6,700,125,785 7,679,391,012

Long-term liabilities 330 14,947,690,150 14,969,970,150Long-term accrued expenses 333 500,000,000 500,000,000Other payables -long-term 337 16b 707,770,150 658,770,150Long-term borrowings 338 18 13,739,920,000 13,811,200,000

EQUITY (400 = 410) 400 337,608,740,405316,050,659,603

Owners' equity 410 19 337,608,740,405316,050,659,603Share capital 411 20 116,500,000,000116,500,000,000

Ordinaryshares with voting rights 411a 116,500,000,000 116,500,000,000Investment and development fund 418 22 74,261,208,991 56,397,655,039Other equity funds 420 22 12,734,417,453 12,311,461,686Retained profits 421 87,854,561,665 84,208,708,055

Retainedprofits broughtforward 421a 38,626,406,914 33,169,982,478Retainedprofit for the current year 421b 49,228,154,751 51,038,725,577

Non-controlling interest 429 46,258,552,296 46,632,834,823

TOTAL RESOURCES 440 613,558,930,092647,875,507,714(440= 300 + 400)

29 March 2016

Prepared by:

Vo Trung ThangDeputy Head

7

Vietnam Ocean Shipping Agency CorporationConsolidated statement of income for the year ended 31 December 2015

FormB02-DN(Issued under Circular No. 202120141TT-BTC


Code Note2015 2014VND VND

Revenue from provision of services 01 24 863,667,826,545 843,121,917,651

Cost of services provided 11 25 775,069,300,935 747,840,099,211

Gross profit (20 = 01 - 11) 20 88,598,525,610 95,281,818,440

Financial income 21 26 45,229,890,941 30,836,038,878Financial expenses 22 27 3,764,384,415 2,537,232,440

In which: Interest expense 23Share of profit in associates 24 6,232,019,434 11,464,210,183General and administration expenses 26 28 80,206,891,709 85,201,708,273

Net operating profit30 56,089,159,861 49,843,126,788(30 = 20+ 21 - 22+ 24 - 26)

Other income 31 29 5,516,790,984 11,931,183,032Other expenses 32 2,165,769,694 727,433,380

Results of other activities40 3,351,021,290 11,203,749,652(40=31-32)

Accounting profit before tax50 59,440,181,151 61,046,876,440(50 = 30+ 40)

Income tax expense - current 51 31 10,586,308,927 9,941,419,011

Income tax expense - deferred 52 31 461,002,158

Net profit after tax60 48,853,872,224 50,644,455,271(60 = 50 - 51 - 52)


Vietnam Ocean Shipping Agency CorporationConsolidated statement of incomefor the year ended 31 December 2015 (continued)



Code Note 2015VND

2014VND

Net profit after tax(60 = 50 - 51 - 52) 60 48,853,872,224 50,644,455,271

Attributable to:

Shareholders of the parent company 61 49,228,154,751 51,038,725,577

Non-controlling interest 62 (374,282,527) (394,270,306)

Earnings per share

Basic earnings per share 70 32 3,782 4,381

29 March 2016

Prepared by:


of Finance and Accou mg


Vietnam Ocean Shipping Agency CorporationConsolidated statement of cash flows for the year ended 31 December 2015(Direct method)



Code Note 2015VND

2014VND

1- CASH FLOWS FROM OPERATING ACTIVITIES

1. Proceeds from provision of servicesand other income 01 868,642,188,243 828,979,164,064

2. Payments to suppliers of goods andservices 02 (876,014,601,825) (794,475,626,403)

3. Payments to employees 03 (112,079,512,149) (90,300,469,738)5. Income tax paid 05 (12,735,738,772) (8,294,739,293)6. Other receipts from operating

activities 06 2,052,042,717,036 1,695,435,072,2027. Other payments for operating

activities 07 (1,946,927,472,942) (1,548,434,305,984)

Net cash flows from operating20 (27,072,420,409) 82,909,094,848activities

II-CASH FLOWS FROM INVESTING ACTIVITIES

1. Payments for additions to fixedassets and other long-term assets 21 (31,867,319,413) (12,520,883,039)

2. Proceeds from disposals of fixedassets and other long-term assets 22 672,607,273 749,090,908

3. Payments for granting loans,purchase of debt instruments ofother entities 23 (31,000,000,000) (33,000,000,000)

4. Receipts from collecting loans, salesof debt instruments of other entities 24 26,000,000,000 4,000,000,000

5. Payments for investments in otherentities 25 (1,072,836,000)

6. Collections on investments in otherentities 26 16,058,448,283 10,540,000,000

7. Receipts of interests, dividends andshared profits 27 26,626,718,346 30,322,008,319

Net cash flows from investing 30 6,490,454,489 (982,619,812)activities


Vietnam Ocean Shipping Agency CorporationConsolidated statement of cash flows for the year ended 31 December 2015(Direct method - continued)


dated22 December 2014 a/the Ministry a/Finance)

Code Note 2015VND

2014VND

III - CASH FLOWS FROM FINANCING ACTIVITIES

3. Proceeds from short-term and long-term borrowings 33 5,381,451,185 6,921,730,003

4. Payments to settle loan principals 34 (5,381,451,185) (4,919,229,730)6. Payments of dividends and profits to

owners 36 (11,652,200,000) (11,656,600,000)

Net cash flows from financing40 (11,652,200,000) (9,654,099,727)activities

Net cash flows during the year50 (32,234,165,920) 72,272,375,309(50 = 20+ 30 + 40)

Cash and cash equivalents at the60 216,246,123,176 143,214,734,424beginning of the year

Effect of exchange rate fluctuations61 123,416,554 759,013,443on cash and cash equivalents

Cash and cash equivalents at the end70 5 184,135,373,810 216,246,123,176of the year (70 = 50+ 60+ 61)

Prepared by:

29 March 2016


0/Finance and Accaun .g

The accompanying notes are an integralpart a/these cansalidatedfinancial statements11

-----------------------------_ .. _-------_ .. _---

Vietnam Ocean Shipping Agency CorporationNotes to the consolidated financial statements for the year ended 31 December 2015

Form B09-DN(Issued under Circular No. 202120141TT-BTC

dated 22December 2014 of the Ministry of Finance)

These notes form an integral part of and should be read in conjunction with the accompanyingconsolidated financial statements.

1. Reporting entity

(a) Ownership structure

Vietnam Ocean Shipping Agency Corporation ("the Company") was equitised from the State-owned company - Vietnam Ocean Shipping Agency in accordance with Decision No.5099/QD-BGVTT dated 30 December 2005 of Ministry of Transport. The consolidated financial statementsfor the year ended 31 December 2015 comprise the Company and its subsidiary (together referredto as "the Group") and the Group's interest in associates.

On 22 December 2015, the Company's shares were listed on the Hanoi Stock Exchange, its stockindex is VSA.

(b) Principal activities

The principal activities of the Group are to provide: agency and goods tallying services; brokerageand ocean shipping services; vessel agency and ocean shipping agency; producing all kinds oftechnical gaskets; inland container transport; office rental; vessel supply services; import andexport, trading, domestic and foreign consignment agency of goods including: chemicals forproduction (excluding highly toxic chemicals), agricultural and marine products; transportationof goods by road and waterways; goods stevedoring; consignment agency; international transport;vessel towage services; logistics services; trading, renting and repairing of containers; marinetransportation business; warehousing business; tourism accommodation business: hotels (no hotelbusiness at the head office); and customs brokerage services.

(c) Normal operating cycle

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

(d) Group structure

As at 31 December 2015, the Group had one subsidiary(1/112015: two subsidiaries), which isVietnam Ocean Shipping Agency Land Corporation. The principal activities of the subsidiary aretrading real estates, building up houses and civil technical construction works.

As at 31 December 2015, the Group had one associate (11112015:two associates) as listed in note6(b). The principal activities of the associates are selling and marketing via sea transport services;providing the information requested; preparation of transport documents; providing maritimetransport services; providing customs clearance services; details and customs declaration services;and providing other services to help and support transport, including maritime brokerage.

As at 31 December 2015, the Group had 703 employees (11112015:706 employees).

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Vietnam Ocean Shipping Agency CorporationNotes to the consolidated financial statements for the year ended 31 December 2015(continued)



2. Basis of preparation

(a) Statement of compliance

These consolidated financial statements have been prepared in accordance with VietnameseAccounting Standards, the Vietnamese Accounting System for enterprises and the relevantstatutory requirements applicable to financial reporting.

(b) Basis of measurement

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

(c) Annual accounting period

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

(d) Accounting and presentation currency

The Company's accounting currency is Vietnam Dong ("VND"), which is also the currency usedfor financial statement presentation purpose.

3. Adoption of new guidance on accounting system for enterprises

On 22 December 2014, the Ministry of Finance issued Circular No. 200/20 14/TT-BTC providingguidance on Vietnamese Accounting System for enterprises ("Circular 200"). Circular 200replaces previous guidance on Vietnamese Accounting System for enterprises under Decision No.15/2006-QDIBTC dated 20 March 2006 and Circular No. 244/2009/TT -BTC dated 31 December2009. Circular 200 is effective after 45 days from signing date and applicable for annualaccounting periods beginning on or after 1 January 2015.

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 financialstatements ("Circular 202"). Circular 202 replaces previous guidance on preparation andpresentation of consolidated financial statements provided in Part XIII of Circular No.16112007ITT -BTC dated 31 December 2007 of the Ministry of Finance. Circular 202 is alsoeffective after 45 days from signing date and applicable for annual accounting periods beginningon or after 1 January 2015.

The Group has adopted the applicable requirements of Circular 200 and Circular 202 effectivefrom 1 January 2015 on a prospective basis. The significant changes to the Group's accountingpolicies and the effects on the consolidated financial statements, if any, are disclosed in thefollowing notes to the financial statements:

• Recognition of foreign exchange differences (note 4(b)); and• Earnings per share (note 4(q)).

13


FormB09-DN(Issued under Circular No. 20212014ITT-BTC


4. Summary of significant accounting policies

The following significant accounting policies have been adopted by the Group in the preparationof these consolidated financial statements.

(a) Basis of consolidation

(i) Subsidiaries

Subsidiaries are entities controlled by the Group. The financial statements of the subsidiaries areincluded in the consolidated financial statements from the date that control commences until thedate that control ceases.

(ii) Non-controlling interests

Non-controlling interests ("NCI") are measured at their proportionate share of the acquiree'sidentifiable net assets at date of acquisition.

Changes in the Group's interest in a subsidiary that do not result in a loss of control are accountedfor as transactions with owners. The difference between the change in the Group's share of netassets of the subsidiary and any consideration paid or received is recorded directly in retainedprofits under equity.

(iii) Loss of control

When the Group losses control over a subsidiary, it derecognises the assets and liabilities of thesubsidiary, and any related Ncr and other components of equity. Resulting gain or loss isrecognised in the consolidated income statement. Any interest retained in the former subsidiarywhen control is lost is stated at the carrying amount of the retained investment in the separatefinancial statements adjusted for appropriate shares of changes in equity of the investee since theacquisition date, if significant influence in the investee is maintained, or otherwise stated at cost.

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(iv) Associates (equity accounted investees)

Associates are those entities in which the Group has significant influence, but not control, overthe financial and operating policies. Associates are accounted for using the equity method (equityaccounted investees). The consolidated financial statements include the Group's share of theincome and expenses of the equity accounted investees, after adjustments to align the accountingpolicies with those of the Group, from the date that significant influence commences until the datethat significant influence ceases. When the Group's share oflosses exceeds its interest in an equityaccounted investee, the carrying amount of that interest (including any long-term investments) isreduced to nil and the recognition of further losses is discontinued except to the extent that theGroup has an obligation or has made payments on behalf of the investee.

(v) Transactions eliminated on consolidation

Intra-group balances, and any unrealised income and expenses ansmg from intra-grouptransactions, are eliminated in preparing the consolidated financial statements. Unrealised gainsand losses arising from transactions with equity accounted investees are eliminated againsttheinvestment to the extent of the Group's interest in the investee.

(b) Foreign currency transactions

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

• Exchange rate applied to buying or selling foreign currency is the exchange rate stipulated inthe currency exchange contract between the Group and the bank.

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

• Exchange rate applied to recognise trade and other receivables is the foreign currency buyingrate at the transaction date quoted by the bank through which the Group receives money fromthe customer or counterparty.

• Exchange rate applied to recognise trade and other payables is the foreign currency sellingrate at the transaction date quoted by the bank through which the Group intends to makepayment for the liability.

• For asset acquisitions or expenses that are settled with immediate payment, the exchange rateapplied is the foreign currency buying rate at the transaction date quoted by the bank throughwhich the Group makes payment.

15




Monetary assets and liabilities denominated in currencies other than VND are translatedinto VNDat actual rates of exchange ruling at the balance sheet date. The actual rates of exchangeappliedto retranslate monetary items denominated in foreign currency at reporting date are determined asfollows:

• For monetary assets (cash and receivables): the foreign currency buying rate at the reportingdate quoted by the commercial bank where the Company most frequently conductstransactions. Cash at bank and bank deposits are retranslated using the foreign currencybuying rate of the bank where the Company deposits the money or maintains those bankaccounts.

• For monetary liabilities (payables and borrowings): the foreign currency selling rate atreporting date quoted by the commercial bank where the Company most frequently conductstransactions.

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

(c) Cash and cash equivalents

Cash comprises cash balances and call deposits. Cash equivalents are short-term highly liquidinvestments that are readily convertible to known amounts of cash, are subject to an insignificantrisk of changes in value, and are held for the purpose of meeting short-term cash commitmentsrather than for investment or other purposes.

(d) Investments

(i) Held-to-maturity investments

Held-to-maturity investments are those that the Company's management has the intention andability to hold until maturity. Held-to-maturity investments include term deposits at bank, bonds,redeemable preference shares which the issuers are required to repurchase at a certain date andloans receivable held to maturity. These investments are stated at costs less allowance fordiminution in value of investments.

(ii) Investments in equity instruments of other entities

Investments in equity instruments of other entities over which the Company has no control orsignificant influence are initially recognised at cost which include purchase price plus any directlyattributable transaction costs. Subsequent to initial recognition, these investment are statedat costless allowance for diminution in value. An allowance is made for diminution in investment valuesif the investee has suffered a loss, except where such a loss was anticipated by the Company'smanagement before making the investment. The allowance is reversed if the investeesubsequently made a profit that offsets the previous loss for which the allowance had been made.An allowance is reversed only to the extent that the investment's carrying amount does not exceedthe carrying amount that would have been determined if no allowance had been recognised.

16




(e) Accounts receivable

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

(1) Tangible fixed assets

(i) Cost

Tangible fixed assets are stated at cost less accumulated depreciation. The initialcost of a tangiblefixed asset comprises its purchase price, including import duties, non-refundable purchase taxesand any directly attributable costs of bringing the asset to its working condition for its intendeduse. Expenditure incurred after tangible fixed assets have been put into operation, such as repair,maintenance and overhaul cost, is charged to the statement of income in the year in which the costis incurred. In situations where it can be clearly demonstrated that the expenditure has resulted inan increase in the future economic benefits expected to be obtained from the use of tangible fixedassets beyond their originally assessed standard of performance, the expenditure is capitalised asan additional cost of tangible fixed assets.

(ii) Depreciation

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

• buildings and structuresmachinery and equipmentmotor vehiclesoffice equipment

6 -44 years5 years

5 - 11years3 - 10years

•••

(g) Intangible fixed assets

(i) Land use rights

Land use rights comprise:

• those granted by the State for which land use payments are collected;

• those acquired in a legitimate transfer; and

• rights to use leased land obtained before the effective date of Land Law (2003) for whichpayments have been made in advance for more than 5 years and supported by land use rightcertificate issued by competent authority.

Land use rights with indefinite period of use are stated at cost and not amortised. Land use rightswith definite period of use are stated at cost less accumulated amortisation. The initial cost of aland use rights comprises its purchase price and any directly attributable costs incurred inconjunction with securing the land use rights. Amortisation is computed on a straight-line basisover a period ranging from34to 49 years.

17




(U) Software

Cost of acquiring new software, which is not an integral part of the related hardware, is capitalisedand treated as an intangible asset. Software cost is amortised on a straight-line basis over a periodranging from 3 to 5 years.

(h) Investment property

Investment property held to earn rental

(i) Cost

Investment property held to earn rental is stated at cost less accumulated depreciation.The initialcost of an investment property held to earn rental comprises its purchase price, cost of land userights and any directly attributable expenditures of bringing the property to the condition'necessary for it to be capable of operating in the manner intended by management. Expenditureincurred after the investment property held to earn rental has been put into operation, such asrepairs and maintenance, is charged to the statement of income in the year in which theexpenditure is incurred. In situations where it can be clearly demonstrated that the expenditurehas resulted in future economic benefits in excess of the originally assessed standard ofperformance of the existing investment property held to earn rental, the expenditure is capitalisedas an additional cost of the investment property.

(U) Depreciation

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

• buildings and structures 5 - 20 years

(i) Construction in progress

Construction in progress represents the costs of construction which have not been fully completed.No depreciation is provided for construction in progress during the period of construction.

(j) Trade and other payables

Trade and other payables are stated at their cost.

18


Form B 09-DN(Issued under Circular No. 20212014ITT-BTC


(k) Provisions

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

(I) Share capital

Ordinary shares

Incremental costs directly attributable to the issue of shares, net of tax effects, are recognised as adeduction from share premium.

(m) Taxation

Income tax on the profit or loss for the year comprises current and deferred tax. Income tax isrecognised in the statement of income except to the extent that it relates to itemsrecogniseddirectly 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 enactedat the balance sheet date, and any adjustment to tax payable in respect of previous years.

Deferred tax is provided using the balance sheet method, providing for temporary differencesbetween the carrying amounts of assets and liabilities for financial reporting purposes and theamounts used for taxation purposes. The amount of deferred tax provided is based on the expectedmanner of realisation or settlement of the carrying amounts of assets and liabilities using the taxrates enacted or substantively enacted at the balance sheet date.

A deferred tax asset is recognised only to the extent that it is probable that future taxable profitswill be available against which the temporary difference can be utilised. Deferred tax assetsarereduced to the extent that it is no longer probable that the related tax benefit will be realised.

19




(n) Revenue and other income

(i) Services rendered

Revenue from services rendered is recognised in the statement of income when services arecompleted and accepted by customers. No revenue is recognised if there are significantuncertainties regarding recovery of the consideration due.

(ii) Rental income

Rental income from leased property is recognised in the statement of income on a straight-linebasis over the term of the lease. Lease incentives granted are recognised as an integral partof thetotal rental income.

~ilj Interestincome

Interest income is recognised on a time proportion basis with reference to the principal outstandingand the applicable interest rate.

(iv) Dividend income

Dividend income is recognised when the right to receive dividend is established. Share dividendsare not recognised as financial income. Dividends received which are attributable to the periodbefore investment acquisition date are deducted from the carrying amount of the investment.

(0) Operating lease payments

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

(p) Borrowing costs

Borrowing costs are recognised as an expense in the period in which they are incurred, exceptwhere the borrowing costs relate to borrowings in respect of the construction of qualifying assets,in which case the borrowing costs incurred during the period of construction are capitalised aspart of the cost of the assets concerned.

(q) Earnings per share

The Group presents basic and diluted earnings per share ("EPS") for its ordinary shares. BasicEPS is calculated by dividing the profit or loss attributable to the ordinary shareholders of theCompany by the weighted average number of ordinary shares outstanding during the year. DilutedEPS is determined by adjusting the profit or loss attributable to the ordinary shareholders and theweighted average number of ordinary shares outstanding for the effect of all dilutive potentialordinary shares.

20

Vietnam Ocean Shipping Agency CorporationNotes to the consolidated fmancial statements for the year ended 31 December 2015(continued)



Prior to 1 January 2015, the profit or loss attributable to the ordinary shareholders of the Companyincluded amounts appropriated to bonus and welfare funds, if any. Effective from 1January 2015,the profit or loss attributable to the ordinary shareholders of the Company is determined afterdeducting estimated amounts appropriated to bonus and welfare fund. This change in accountingpolicy has been applied prospectively. As a result, basic earnings per share for the year ended 31December 2015 had decreased by VND444.

(r) Segment reporting

A segment is a distinguishable component of the Group that is engaged either in providing relatedproducts or services (business segment), or in providing products or services within a particulareconomic environment (geographical segment), which is subject to risks and rewards that aredifferent from those of other segments. The management is of the opinion that the Group operatesin one geographical segment that is Vietnam and one business segment that is provision of oceanshipping agency services and related services.

(s) 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 financialand operating decisions, or where the Company and the other party are subject to common controlor significant influence. Related parties may be individuals or corporate entities and include closefamily members of any individual considered to be a related party.

5. Cash and cash equivalents

31112/2015VND

11112015VND

Cash on handCash in banksCash equivalents

2,435,316,777 2,166,045,008112,200,057,033 153,976,078,16869,500,000,000 60,104,000,000

184,135,373,810 216,246,123,176

6. Investments

(a) Held-to-maturity investments

31112/2015CostVND

Fair valueVND

CostVND

11112015Fair value

VNDHeld-to-maturityinvestments - short-term• Term deposits 37,000,000,000 37,000,000,000 32,000,000,000 32,000,000,000

21



Vietnam Ocean Shipping Agency CorporationNotes to the consolidated financial statements for the year ended 31 December 2015 (continued)

(b) Equity investments in other entities

Equity investments in:• Subsidiaries

• SYMS Vietnam Co., Ltd (i)

• Associates

• NYK Line (Vietnam) Co., Ltd (ii)

• China Shipping Vietnam Co., Ltd (iii)

• Others

• Vietnam Maritime Commercial Joint Stock Bank (iv)

• Vietnam Steel Corporation

• Vinalines Logistics Vietnam Joint Stock Company

• Yusen Logistics and Transportation Vietnam Co., Ltd

• Yusen Logistics Vietnam Co., Ltd

• Lotus Joint Venture Company

31112/2015 11112015%of Allowance for %of Allowance for

equity diminution in equity diminution inQuantity owned Cost value Quantity owned Cost value

VND VND VND VND

51% 3,281,370,000 1,381,111,688

3,281,370,000 1,381,111,688

49% 10,825,038,179

40% 9,474,396,147 40% 10,001,774,177

9,474,396,147 20,826,812,356

913,390 7,400,160,000 913,390 7,400,160,000

200,000 2,020,000,000 200,000 2,020,000,000

50,000 500,000,000 50,000 500,000,000

51% 1,072,836,000 51% 1,072,836,000

1% 63,746,040 1% 63,746,040

0.27% 533,047,323 0.27% 528,952,190

11,589,789,363 11,585,694,230

21,064,185,510 35,693,876,586 1,381,111,688

22


Form B09-DN(Issued under Circular No. 20212014ITT-BTC


(i) This subsidiary completed its liquidation procedures in December 2009. The Company set offthe carrying value of investment in the subsidiary, comprising amount ofVND3,281,370,000 andallowance for diminution of VND1,381,111,688, against amounts held on behalf of the entity.The resulting balance ofVND3,737,387,440 was recognised as other payables - short-term (note16(a)).

(ii) In accordance with Investment Certificate No. 411021000026 dated 24 October 2006 issued bythe Ministry of Planning and Investment, the Company invested VND3,158,540,000, equivalentto 49% of charter capital, in NYK Line (Vietnam) Co., Ltd. During 2015, the Company disposedof its investment in this entity to the majority shareholder of the entity, Nippon Yusen KabushikiKaisha, for a consideration ofVND16,058,448,283. The meeting minutes dated 3 March 2016between the Company and Nippon Yusen Kabushiki Kaisha also provides that in addition to thedisposal price, the Company shall be entitled to its share of 49% of retained profits existing at thepoint of disposal of the entity. The remaining receivable ofVND8,934,416,969 was recorded inother short-term receivables (note 8(a)).

(iii) China Shipping Vietnam Co., Ltd is incorporated as a limited liability company in Vietnam withoperation period of 15years from 11August 2004 in accordance with Investment Certificate No.411022000393 dated 25 December 2008 issued by the People's Committee ofHo Chi Minh City,and its updates. This Investment Certificate replaces Investment Licence No.2411/GP dated 11August 2004 issued by the Ministry of Planning and Investment and its updates. The owners ofthe company are China Shipping Regional Holdings Sdn Bhd and Vietnam Ocean ShippingAgency Corporation.

(iv) The Company is a founding shareholder of Vietnam Maritime Commercial Joint Stock Bank("MSB") in 1991. The number of shares owned by the Company are accumulated over years dueto capital contribution, capital increase in shares, dividend payments in shares.

23

------------------------------ ---


FormB09-DN(Issued under Circular No. 20212014ITT-BTC


7. Accounts receivable from customers - short-term

(a) Accounts receivable from customers detailed by significant customer:

31112/2015VND

Nui Phao Mining Company LimitedNaigai Nitto Logistics Vietnam Co., LtdSDV Vietnam Co., LtdOther customers

18,946,868,06113,186,417,9872,009,151,665

81,301,785,449

11112015VND

12,438,653,98114,200,415,27693,329,880,023

115,444,223,162 119,968,949,280

(b) Accounts receivable from customers classified by payment term:

31112/2015VND

Short-term

11112015VND

115,444,223,162 119,968,949,280

(c) Accounts receivable from customers who are related parties:

31112/2015VND

Vinashin Ocean Shipping Company LimitedHai Phong Port Joint Stock CompanyVinalines Nha Trang Joint Stock CompanyVinalines Logistics Vietnam Joint Stock Company

355,340,831198,653,400125,410,683

660,000

11112015VND

355,340,831

125,410,683

680,064,914 480,751,514

24




8. Other receivables

(a) Other short-term receivables

31112/2015VND

Payments for transport, freight, warehouse fees, documentfees, stevedoring on behalf of shipping linesDividends receivableAdvances to employeesInterest income from term depositsShort-term depositsSocial insurance, health insurance, unemployment insuranceOthers

9,471,635,9538,934,416,9697,006,823,5142,182,328,8882,116,345,000

91,411,1266,146,035,332

11112015VND

7,276,522,63150,000,000

5,554,979,7861,502,470,8331,560,118,750

43,308,4006,011,603,584

35,948,996,782 21,999,003,984

(b) Other long-term receivables

31112/2015VND

Long-term deposits 7,964,789,470 7,673,122,270

11112015VND

25


Form B 09-DN(Issued under Circular No. 202/2014/TT-BTC


9. Bad and doubtful debts

31112/2015 1/112015Overdue Recoverable Overdue Recoverable

days Cost Allowance amount days Cost Allowance amountVND VND VND VND VND VND

Overdue debtsDaiichi ChuoMarine Co., Ltd. Over 3 years 5,575,895,635 5,575,895,635 Over 3 years 5,575,895,635 5,575,895,635Other customers Over 3 years 3,123,937,018 3,123,937,018 Over 3 years 1,811,062,120 1,811,062,120Other customers From 2 - 3 years 397,256,524 278,079,567 119,176,957 From 2 - 3 years 841,243,686 588,870,580 252,373,106Other customers From 1- 2 years 125,410,683 62,705,34262,705,341 From 1- 2 years 649,103,132 321,714,669 327,388,463Other customers Less than 1year 2,140,000 2,140,000 Less than 1year 492,492,474 147,747,742 344,744,732

9,224,639,860 9,040,617,562 184,022,298 9,369,797,047 8,445,290,746 924,506,301

Of which:

26

Allowance for doubtfuldebts - short-term

9,040,617,562 8,445,290,746




10. Tangible fixed assetsBuildings and Machinery and Motor Office

structures equipment vehicles equipment TotalVND VND VND VND VND

Cost

Opening balance 72,737,511,172 38,015,819 43,590,799,304 4,947,816,041 121,314,142,336Additions 2,971,308,501 586,554,545 149,860,455 3,707,723,501Transfer fromconstruction in progress 11,172,486,487 11,172,486,487Disposals (722,017,091) (42,000,000) (764,017,091)

Closing balance 86,881,306,160 38,015,819 43,455,336,7585,055,676,496 135,430,335,233

Accumulateddepreciation ~Opening balance 36,948,524,663 38,015,819 26,731,037,097 3,753,229,107 67,470,806,686 c

iCharge for the year 3,373,839,641 4,010,068,067 482,712,524 7,866,620,232 ,

Disposals (722,017,091) (42,000,000) (764,017,091)

Closing balance 40,322,364,304 38,015,819 30,019,088,0734,193,941,631 74,573,409,827

Net book value

Opening balance 35,788,986,509 - 16,859,762,207 1,194,586,934 53,843,335,650Closing balance 46,558,941,856 - 13,436,248,685 861,734,865 60,856,925,406

Included in tangible fixed assets were assets costing VND29,371,253,438 which were fully depreciatedas of31 December 2015 (1/1/2015: VND28,267, 117,419), but which are still in active use.

27




11. Intangible fixed assets

Land use rightsVND

SoftwareVND

TotalVND

Cost

Opening/closing balance 20,346,655,528 1,984,579,300 22,331,234,828

Accumulated amortisation

Opening balanceCharge for the year

688,087,149225,218,414

1,674,432,75831,014,650

2,362,519,907256,233,064

Closing balance 913,305,563 1,705,447,408 2,618,752,971

Net book value

Opening balanceClosing balance

19,658,568,37919,433,349,965

310,146,542279,131,892

19,968,714,92119,712,481,857

Included in intangible fixed assets were assets costing VNDI23,700,000 which were fullyamortised as of31 December 2015(1/1/2015: VNDI23,700,000), but which are still in use.

28


Form B09-DN(Issued under Circular No. 20212014ITT-BTC


12. Investment property

Buildings andstructures

VND

Cost

Opening balanceDisposalsOther decreases

79,412,091,656(3,298,174,000)(1,529,813,300)

Closing balance 74,584,104,356

Accumulated depreciation

Opening balanceCharge for the yearDisposals

23,787,543,9154,293,662,660

(3,298,174,000)

Closing balance 24,783,032,575

Net book value

Opening balanceClosing balance

55,624,547,74149,801,071,781

The fair value of investment property has not been determined as the Group has not performed avaluation. There was no recent market transaction for similar property in the same location as theGroup's investment property.

13. Construction in progress

2015VND

2014VND

Opening balanceAdditions during the yearTransfer to tangible fixed assets

75,784,877,23910,921,285,966

(11,172,486,487)

33,720,982,32142,459,627,297

(395,732,379)

Closing balance 75,533,676,718 75,784,877,239

29

Vietnam Ocean Shipping Agency CorporationNotes to the consolidated fmancial statements for the year ended 31 December 2015(continued)



Major constructions in progress were as follows:

31112/2015VND

11112015VND

Construction costs of land lot at No.1, Ben Van Don,District 4, Ho Chi Minh CityVOSA Quang Ninh hotel repairing projectIC VOSA Quang Ninh warehouse repairing expensesVitamas office projects

75,228,158,489 73,356,185,5071,910,665,776

229,307,727305,518,229 288,718,229

75,533,676,718 75,784,877,239

14. Accounts payable to suppliers

(a) Accounts payable to suppliers detailed by significant suppliers:

31112/2015 11112015Amount within Amount within

payment paymentCost capacity Cost capacityVND VND VND VND

Saigon NewportCorporation 13,429,265,853 13,429,265,853 8,595,254,396 8,595,254,396Quang Ninh PortJoint Stock Company 4,321,481,182 4,321,481,182 12,770,889,591 12,770,889,591Other suppliers 66,262,771,867 66,262,771,867 83,091,646,722 83,091,646,722

84,013,518,902 84,013,518,902 104,457,790,709 104,457,790,709

(b) Accounts payable to suppliers classified by payment terms:

31112/2015Amount within

paymentcapacity

VNDCostVND

11112015Amount within

paymentcapacity

VNDCostVND

Short-term 84,013,518,902 84,013,518,902 104,457,790,709 104,457,790,709

30



dated 22December 2014 ojthe Ministry oj Finance)

(c) Accounts payable to suppliers who are related parties:

31112/2015 11112015Amount within Amount within

payment paymentCost capacity Cost capacityVND VND VND VND

Vietnam NationalShipping Lines 1,695,491 1,695,491 664,470 664,470Hai Phong Port JointStock Company 2,714,238,374 2,714,238,374 4,009,681,458 4,009,681,458Saigon Port JointStock Company 251,173,190 251,173,190Da Nang Port JointStock Company 28,374,957 28,374,957 9,610,233 9,610,233

2,744,308,822 2,744,308,822 4,271,129,3514,271,129,351

15. Taxes and others payable to State Treasury

(a) Taxes and others payable to State Treasury

11112015 Incurred Paid 31112/2015VND VND VND VND

TaxesValue added tax 525,377,901 12,949,802,496(12,905,549,113) 569,631,284Corporate income tax 3,555,724,80710,586,308,927(12,735,738,772) 1,406,294,962Personal income tax 648,659,045 2,981,354,470(2,971,656,854) 658,356,661Land and housing taxes 83,296,536 (83,296,536)Land rental 22,911,469,387 3,895,067,156 (26,368,297,543) 438,239,000Other taxes 11,093,572,518 41,744,537,654 (41,515,267,404) 11,322,842,768

Other obligationsExtra collections 330,369,008 666,579,563 (996,948,571)Duties 302,659,840 (302,659,840)

39,065,172,666 73,209,606,642 (97,879,414,633) 14,395,364,675

31




(b) Taxes receivable from State Treasury

11112015VND

IncurredVND

Taxes refundablefrom State TreasuryPersonal income taxCorporate income tax

226,086,44317,820,255

22,448,450

ReceivedVND

(46,265,744)

31112/2015VND

202,269,14917,820,255

243,906,698 22,448,450 220,089,404(46,265,744)

16. Other payables

(a) Other payables - short-term

Payments on behalf and amounts received to pay on behalfof shipping linesDeposits of shipping linesDividend payablesPayable to Manuchar Hong Kong LimitedShort-term deposits receivedAmounts held on behalf of SYMS Vietnam Co., LtdTrade union feesSocial insurance, health insurance, unemployment insuranceOthers

31112/2015VND

48,189,867,41512,244,568,3208,360,724,8258,342,091,9094,705,071,7203,737,387,4401,176,114,256

33,500,888404,517,808

11112015VND

47,087,144,33521,199,467,400

207,924,8258,342,091,9095,335,632,0295,637,645,7521,170,553,923

68,195,659725,051,576

87,193,844,581 89,773,707,408

32

-----------------------------



dated 22 December 2014 ojthe Ministry oj Finance)

(b) Other payables - long-term

31112/2015VND

11112015VND

Deposits received for warehouse leasingDeposits received for Ocean Park office leasing fromEuropac Shipping

628,763,838 619,763,838

79,006,312 39,006,312

707,770,150 658,770,150

17. Bonus and welfare fund

This fund is established by appropriating from retained profits as approved by shareholders atshareholders' meeting. This fund is used to pay bonus and welfare to the Company andsubsidiary's employees in accordance with the Group's bonus and welfare policies. Movementsof bonus and welfare fund during the year were as follows:

2015VND

2014VND

Opening balanceAppropriation (note 19)Utilisation

7,679,391,012 9,196,865,1325,977,745,115 4,162,285,919

(6,957,010,342) (5,679,760,039)

Closing balance 6,700,125,785 7,679,391,012

The General Meeting of Shareholders of the Company on 19 June 2015 resolved to appropriateVND5,977,745,115 (2014: VND4,162,285,919) from its retained profit.

33




18. Long-term borrowings

Terms and conditions of outstanding long-term borrowings were as follows:

Annualinterest Year of 31112/2015 11112015

Currency rate maturity VND VND

Loan from employees ofQuang Ninh OceanShipping Agency (i) VND Nil 2019 7,000,000,000 7,000,000,000Loan from Luen WahTrading Co., Ltd. (HongKong) (ii) CNY Nil 2023 6,739,920,000 6,811,200,000

Repayable after twelve months 13,739,920,000 13,811,200,000

(i) Unsecured loans from employees of Quang Ninh Ocean Shipping Agency under loan contract No.2/DLHH-DQH dated 1April 2014for the purpose of depositing with Vietnam Technological andCommercial Joint Stock Bank - Quang Ninh Branch to apply for a certificate of business codes ofgoods temporarily imported for re-export. This loan has term of 5 years, matures on 1April 2019and is interest free.

(ii) Long-term loan ofCNY1,980,000 equivalent to VND6,739,200,000 from Luen Wah Trading Co.,Ltd. (Hong Kong) under Contract No. lILC-HK dated 10 April 1998.It has a term of25 yearsand is interest free.

34




Investment andShare capital development fund

VND VND

Other equityfundsVND

Non-controllingRetained profits interest

VND VNDTotalVND

19. Changes in owners' equity

Balance at 1 January 2014 116,500,000,000 47,609,219,421 10,418,416,972 60,199,874,028 2,427,065,929 237,154,576,350

Capital contribution 44,600,000,000 44,600,000,000Net profit for the year 51,038,725,577 (394,270,306) 50,644,455,271Appropriation to equity funds (note 22) 8,788,435,618 2,054,584,714 (10,843,020,332)Appropriation to bonus and welfare fund(note 17) (4,162,285,919) (4,162,285,919)Dividends (note 21) (11,650,000,000) (11,650,000,000)Appropriation to funds of associates (374,585,299) 39,200 (374,546,099)Utilisation of funds (161,540,000) (161,540,000)

Balance at 1 January 2015 116,500,000,000 56,397,655,039 12,311,461,686 84,208,708,055 46,632,834,823 316,050,659,603

Net profit for the year 49,228,154,751 (374,282,527) 48,853,872,224Appropriation to equity funds(note 22) 17,863,553,952 1,531,161,767 (19,394,715,719)Appropriation to bonus and welfare fund(note 17) (5,977,745,115) (5,977,745,115)Dividends (note 21) (19,805,000,000) (19,805,000,000)Appropriation to funds of associates (404,840,307) (404,840,307)Utilisation of funds (1,108,206,000) (1,108,206,000)

Balance at 31 December 2015 116,500,000,000 74,261,208,991 12,734,417,453 87,854,561,665 46,258,552,296 337,608,740,405

35




20. Share capitalThe Company's authorised and issued share capital are:

31112/2105Number of

11112015Number of

shares VND shares VND

Authorised and issuedshare capital 11,650,000 116,500,000,000 11,650,000 116,500,000,000

Shares in circulationOrdinary shares 11,650,000 116,500,000,000 11,650,000 116,500,000,000

All ordinary shares have a par value ofVNDI 0,000. Each share is entitled to one vote at meetingsof the Company. Shareholders are entitled to receive dividend as declared from time to time. Allordinary shares are ranked equally with regard to the Company's residual assets. In respect ofshares bought back by the Company, all rights are suspended until those shares are reissued.

21. DividendsThe Board of Management of the Company on 19 June 2015 resolved to distribute dividendsamounting to VNDI9,805,000,000 (VNDl,700 per share) (2014: VNDll,650,000,000(VNDl,OOOper share)).

22. Equity funds

(a) Investment and development fund

Investment and development funds were appropriated from retained profits in accordance with theresolution of General Meeting of Shareholders. These funds were established for the purpose offuture business expansion.

(b) Other equity funds

As at 31112/2015, the balance of other equity funds includes reserves to increase charter capitalofVNDll,650,000,000 (111/2015: VNDl1,650,000,000) and foreign business development fundofVNDl,084,417,453 (1/112015: VND661,461,686).

36




23. Off balance sheet items

(a) Foreign currencies

31112/2015Original VND

11112015Original VND

currency equivalent currency equivalent

USD USD2,823,881 63,353,988,584 USD3,295,729 70,474,764,423

(b) Lease

The future minimum lease payments under non-cancellable operating leases were:

31112/2015VND

11112015VND

Within one yearFrom two to five yearsMore than five years

13,943,261,896266,772,495,212

739,583,333

15,778,777,922277,010,219,600

764,583,333

281,455,340,441 293,553,580,855

37




24. Revenue from provision of services

Revenue from provision of services represents the gross value services rendered exclusive of valueadded tax.

2015VND

Transport agencyBonded warehousesVehicles leasingVessel agencyLiner agencyTemporary import for re-exportTallyingVessel servicesWarehouses and hotels rentalOther services

521,524,189,511119,661,503,98264,591,577,86354,208,713,07127,169,380,13523,332,720,82920,809,433,87912,277,563,51211,565,943,2238,526,800,540

2014VND

523,720,612,18880,515,646,47361,386,178,61748,210,309,11031,637,655,47523,808,022,82819,495,076,47430,876,084,91213,960,492,4119,511,839,163

863,667,826,545 843,121,917,651

25. Cost of services provided

2015VND

Labour costs and staff costsDepreciation and amortisationOutside servicesOther expenses

79,690,476,5299,844,280,008

662,543,608,50922,990,935,889

2014VND

78,731,908,80710,032,688,534

640,730,356,51218,345,145,358

775,069,300,935 747,840,099,211

38




26. Financial income2015VND

Interest income from depositsDividendsGain on disposal of financial investmentsForeign exchange gainsForeign exchange gains due to revaluation

6,193,949,49925,504,310,4703,363,689,4299,535,997,567

631,943,976

2014VND

4,822,300,94916,435,928,3356,324,000,0003,253,809,594

45,229,890,941 30,836,038,878

27. Financial expenses

2015VND

Provision of financial investment lossesForeign exchange lossesForeign exchange losses due to revaluationOther fmancial expenses

3,741,140,030

23,244,385

2,537,232,4403,764,384,415

2014VND

(1,844,008,630)3,814,187,266

558,385,8448,667,960

28. General and administration expenses

2015VND


40,442,112,6562,572,235,948

31,021,806,0416,170,737,064

2014VND

39,107,606,8433,165,018,630

32,156,328,88810,772,753,912

80,206,891,709 85,201,708,273

39



dated 22 December 2014 of the Ministryof Finance)

29. Other income

2015VND

2014VND

Gains from disposals of fixed assetsUnidentified liabilities written offOthers

672,607,2734,538,968,726

305,214,985

749,090,90810,950,156,217

231,935,907

5,516,790,984 11,931,183,032

30. Business costs by element

2015VND

2014VND


120,l32,589,18512,416,515,956

693,565,414,55029,161,672,953

117,839,515,65013,197,707,164

672,886,685,40029,117,899,270

40




31. Income tax

(a) Recognised in the consolidated statement of income

2015VND

Current tax expenseCurrent yearUnder provision in prior years

9,973,091,390613,217,537

2014VND

9,159,654,411781,764,600

10,586,308,927 9,941,419,011

Deferred tax expense

Reversal of write down of deferred tax asset 461,002,158

Income tax expense 10,586,308,927 10,402,421,169

(b) Reconciliation of effective tax rate

2015VND

Accounting profit before tax 59,440,181,151 61,046,876,440

Tax at the Company's tax rateEffect of different tax rates in a subsidiaryEffect of share of profit and loss in associatesNon-deductible expensesDeferred tax asset not recognisedTax exempt incomeUnder provision in prior years

13,076,839,8539,318,211

726,923,8721,677,775,650

93,182,107(5,610,948,303)

613,217,537

2014VND

13,430,312,81710,937,832

(2,522,126,240)2,151,354,905

109,378,322(3,559,201,067)

781,764,600

10,586,308,927 10,402,421,169

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(c) Applicable tax rates

The Company and its subsidiaries have an obligation to pay the government income tax at the rateranging from 20% to 25% of taxable profits. The usual income tax rate applicable to enterprisesbefore any incentives is 22% for 2014 and 2015, and will be reduced to 20% from 2016.

32. Earnings per share

(a) Basic earnings per share

The calculation of basic earnings per share for the year ended 31 December 2015 was based onthe profit attributable to ordinary shareholders, effective from 1 January 2015, after deductingestimated amounts appropriated to bonus and welfare fund, ofVND5,170,000,000 and a weightedaverage number of ordinary shares outstanding of 11,650,000 shares (2014: 11,650,000 shares),calculated as follows:

(i) Net profit attributable to ordinary shareholders

2015VND

2014VND

Net profit for the yearAppropriation to bonus and welfare funds (budgeted)

49,228,154,751 51,038,725,577(5,170,000,000)

Net profit attributable to ordinary shareholders 44,058,154,751 51,038,725,577

(ii) Weighted average number of ordinary shares

2015 2014

Issued ordinary shares of the previous year brought forward11,650,000 11,650,000

Weighted average number of ordinary shares for theyear ended 31 December 2015

11,650,000 11,650,000

(b) Diluted earnings per share

As at 31 December 2015, the Group did not have dilutive potential ordinary shares.

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33. Significant transactions with related parties

In addition to related party balances disclosed in other notes to the consolidated financialstatements, the Group had the following transactions with related parties during the year:

Transaction value2015 2014VND VND

The parent companyVietnam National Shipping LinesDividends declaredOffice rental expensesElectricity bills payableService expenses payable

10,111,260,000921,600,000

12,846,0302,181,820

Other related partiesNYK Line Vietnam Co., Ltd.DividendsRevenue from provision of servicesService expenses payable

8,934,416,969764,345,950

China Shipping Vietnam Co., Ltd.DividendsRevenue from provision of services

4,484,836,482

Vinalines Logistics Vietnam Joint Stock CompanyDividendsRevenue from office leasingRevenue from provision of services

50,000,00066,000,000

433,045,329

Vinalines Nha Trang Joint Stock CompanyRevenue from provision of services

Da Nang Port Joint Stock CompanyService expenses payable

5,947,800,000921,600,000

13,555,185664,470

6,860,000,000963,561,64467,649,081

2,994,315,550372,486,910

25,000,000

272,341,129

229,754,661

426,169,532 49,220,118

Hai Phong Port Joint Stock CompanyRevenue from provision of servicesService expenses payable

1,034,223,300

Cai Lan Port Investment Joint Stock CompanyRevenue from provision of servicesService expenses payable

19,394,416

12,040,223,169

392,200,000

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Transaction value2015 2014VND VND

Bien Dong Shipping Company LimitedRevenue from provision of servicesService expenses payable

Cam Ranh Port Joint Stock CompanyService expenses payable

28,859,999 184,900,00138,886,364

114,570,369 4,582,017,656

21,269,115 3,290,754,540

433,438,554 397,053,110

2,149,081,79726,481,430

108,152,584 199,835,319

1,034,223,30018,450,000

548,004,6003,000,001

15,724,800

12,634,545 1,651,243;918

38,636,364

Nha Trang Port Joint Stock CompanyService expenses payable

Nghe Tinh Port Joint Stock CompanyService expenses payable

Saigon Port Joint Stock CompanyService expenses payableProvision of services

Can Tho Port Joint Stock CompanyService expenses payable

Hai Phong Port Joint Stock CompanyRevenue from provision of servicesService expenses payable

Vinalines Container Shipping CompanyRevenue from provision of servicesService expenses payable

Vinalines Shipping CompanyRevenue from provision of services

Vietnam Ocean Shipping CompanyRevenue from provision of services

Vinaship Ocean Shipping CompanyRevenue from provision of services

Members of Board of Directors and Board of ManagementSalary 5,479,200,395Allowance 862,153,270Bonus 552,325,772

4,900,885,8911,472,044,597

565,320,618

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34. Contingent liabilities

From 2003 to 2008, Vietnam Ocean Shipping Agency Corporation Branch - Tally and MarineServices Agency ("the Branch") signed a contract as a distributor for Manuchar NV Group (basedin Belgium) ("Manuchar NV") and member companies of Manuchar Group to perform import anddistribution of goods in Vietnam. This distribution contract was terminated in 2008.

In 2010, Manuchar Hong Kong Limited ("Manuchar Hong Kong") sued the Company to pay theamount of USD5,965,008.84 (including debt related to 33 commodity trading contracts in 2008ofUSD4,886,233.84 and interest incurred from July 2008 to November 2009 ofUSDl,078,775)equivalent to VNDI27,531,888,999 (translated at the exchange rate ofVND21.380/uSD). TheCompany claimed that the Branch only received and delivered goods on behalf of Manuchar HongKong in accordance with the distribution contract. The Branch fulfilled its obligations inaccordance with distribution contract between the two parties and the Branch is only required topay Manuchar Hong Kong the amount of USDI4,328.40 equivalent to VND306,341,192(translated at the exchange rate ofVND21.380/uSD), representing shortage amount during thedelivery of 33 contracts that the Branch must compensate. The Company and Manuchar HongKong disagreed to an out-of-court settlement and brought the lawsuit to the Court of First Instanceof the People's Court ofHo Chi Minh City.

On 17 October 2011, Manuchar Vietnam Co., Ltd. ("Manuchar Vietnam") continued to send thelawsuit petition to the People's Court of District 1, Ho Chi Minh City to request the Company topay the amount of VND89,433,958,452 (including debt related to trading contracts in 2008 ofVND66,991,729,178 and interest incurred from 30 December 2008 to 1 October 2011 ofVND22,442,229,274). This lawsuit was handled by the People's Court of District 1,Ho Chi MinhCity under file No. 1279/2011IKTST dated 29 December 2011 and temporarily suspended inaccordance with Decision No.03/2012/QDST-KDTM dated 23 May 2012 until the outcome ofthe above lawsuit filed by Manuchar Hong Kong, handled by the Economic Court of the People'sCourt ofHo Chi Minh City.

The Company's management believes that the Branch has fulfilled its obligations in accordancewith the contracts signed with the petitioners, except for the payable ofVND8,342,091 ,909 whichhas been recorded in other payables - short-term (note 16(a)). According to the Company'slawyer, in February 2016, Manuchar Hong Kong sent an out-of-court draft settlement to theCompany, and only requested the Company to settle the amount ofVND8,342,091,909. At thedate of these consolidated financial statements, the two parties are in the process of negotiation.

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(continued)



35. Corresponding figures

As described in Note 3, the Group adopted Circular 200 and Circular 202 effective from 1 January2015. As a result, the presentation of certain financial statement captions has been changed.Certain corresponding figures for the year ended 31 December 2014 have been reclassified toconform to the requirements of Circular 200 and Circular 202 in respect of financial statementpresentation. A comparison of the amounts previously reported and as reclassified is as follows:

Consolidated balance sheet

11112015 11112015(as (as previously

~

reclassified) reported)VND VND

Held-to-maturity investments 32,000,000,000 25,000,000,000Other short-term receivables 21,999,003,984 14,854,554,858Other current assets 14,144,449,126Other long-term receivables 7,673,122,270Equity investments in other entities 11,585,694,230Other long-term investments 18,585,694,230Other long-term assets 673,122,270Short-term accrued expenses 10,728,469,544 11,228,469,544Long-term accrued expenses 500,000,000Financial reserve fund 12,078,008,426Investment and development fund 56,397,655,039 44,319,646,613

repared by:

29 March 2016


0/Finance and Accounting

46

consolidated financial statements for the year...

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