TRUST FROM - · PDF fileTRUST FROM ANNUAL REPORT. ... Vision - Mission - Core values ......
Transcript of TRUST FROM - · PDF fileTRUST FROM ANNUAL REPORT. ... Vision - Mission - Core values ......
Where you put your trust - Where you make your home
TRUST FROM
ANNUAL REPORT
BUSINESS PERFORMANCE 2016
Overview of the real estate market in 2016 62Board of Directors report 64Inspection Committee report 70 General Director Team report 72
CORPORATE GOVERNANCE
Board of Directors 88Inspection Committee 89Transactions, remunerations and interest of Board of Directors and Inspection Committee 90Share transactions of internal shareholders and related persons 91Risk management 94
SUSTAINABILITY REPORT
Overview of sustainability report 102Sustainable relationships with stakeholders 104Mechanism for engagement with stakeholders 107Assessment of top material issues 108Business performance 109Compliance with the laws 109Corporate ethics 110Corporate culture 111Product responsibility 113Environment protection and energy saving 114Occupational safety and health 115Workforce relations 116Human resource development 117Community - Social activities 120
FINANCIAL STATEMENTS
General information 124Report of Management 125Independent auditors’ report 126Consolidated balance sheet 128Consolidated income statement 130Consolidated cash fl ow statement 131Notes to consolidated fi nancial statements 133
Vision - Mission - Core values - Competitive advantage 04Chairman’s Statement 06
GENERAL INFORMATION
Overview 10Milestones 12Business scope and scale 14Full project list 15Project locations 22Typical projects in 2016 24Major events in 2016 34Honors and awards achieved in 2016 38Shareholder information 40Investor relations 43Subsidiaries, joint ventures and associates 44Development direction 46SWOT analysis 48Governance model 50 Organizational chart 51Board of Directors 52General Director Team 54Inspection Committee 56Organization and Human Resources 58
TRUE VALUES MOMENTUM FOR FUTURE GROWTH
CONTENTS ANNUAL REPORT 2016
• Transparent legal framework
• Strong fi nancial capacity
• Large land bank
• Perfect product
• Superior quality
• Dedicated services
Transparency and efficiency Transparent governance, feasible plans, strategic
operations to bring benefi ts to customers, shareholders
and society.
Outstanding qualityFocus on construction quality, creating perfect utility
system, building civilized residential community and leave
clear impression in the real estate market.
Customer benefit first Put the word “Trust” on top in every work, take the word
“Mind” to make every eff ort to complete. All the goals are
set out based on customer satisfaction.
Sustainable development Create a fi rm foundation, ensure stable and sustainable
growth, and affi rm the position of a prestigious real estate
company.
VISION CORE VALUES COMPETITIVE ADVANTAGE
VISION - MISSION CORE VALUES - COMPETITIVE ADVANTAGE
To become one of the leading real estate companies
in Vietnam through the trust established on the
competitive advantages and the valuable experience
that Khang Dien has gained over the past 15 years.
To create breakthrough development to become one
of the strongest business groups, contributing to the
community well being and social development.
MISSION
Not only Khang Dien creates new homes in diff erent
market segments to meet diverse demands, but Khang
Dien also contributes to the building of communities
complemented by green living spaces and amenities,
creating sustainable values to the customers,
shareholders and society.
4 5ANNUAL REPORT 2016
CHAIRMAN’S STATEMENT
Taking advantage of the favorable macro-economy and having the right strategy
developed the Board of Directors, Khang Dien had another great performance in
2016, when profi t after tax reached VND372 Billion, increasing by 43% compared
to 2015.
Over the past 15 years of operations, Khang Dien has brought to the market
more than 2,000 in villas and townhouses. In 2016, the Company achieved great
success with Melosa Garden (won “Best Housing Development 2016” in HCMC),
Lucasta eco villa, Feliza and, especially, The Venica - an exclusive luxurious green
oasis with 43 super premium villas, attracting a lot of attentions from the real
estate market.
In 2016, Khang Dien continued receiving the enthusiastic supports from
the strategic shareholders. The Company increased the charter capital up to
VND2,340 Billion. With strong capital base and the trust from the large banks,
the Company was confi dent in developing high-quality large scale projects.
Besides, the Company continued making new land investments and expanded
land bank to prepare for the future growth.
For 2017, with the goal of diversifying products to fully meet the demand of the
customers, in addition to the traditional products such as villas and townhouses,
the Company will deploy two high-quality apartment projects, off ering more
than 2,000 apartments at reasonable prices. Besides, the Company will expand
business presence to the Southwest of the city and build well-planned, modern
and civilized new towns of hundreds of hectares in size and with completed
amenities and utilities including hospitals, schools, commercial centers, fi nance-
banking district, sport and entertainment districts, etc.
For and on behalf of the Board of Directors, I would like to express our sincere
thanks to our valued shareholders, who have accompanied Khang Dien
through out its operating progress. With sustainable development direction, a
reputation to uphold, and a brand representing integrity and best eff ort, we
believe that Khang Dien real estate brand name will develop strongly, bringing
practical benefi ts to the shareholders and sustainable values to the customers
and society.
LY DIEN SON
Chairman
Dear valued shareholders,
WITH A SUSTAINABLE DEVELOPMENT DIRECTION,
A REPUTATION TO UPHOLD, AND A BRAND
REPRESENTING INTEGRITY AND BEST EFFORT,
WE BELIEVE THAT KHANG DIEN BRAND NAME WILL
DEVELOP STRONGLY, BRINGING PRACTICAL
BENEFITS TO THE SHAREHOLDERS AND
SUSTAINABLE VALUES TO THE CUSTOMERS AND
SOCIETY.
VND BILLIONincreasing by
43% compared to 2015.
372PROFIT AFTER TAX
6 7ANNUAL REPORT 2016
YEARSOF EXPERIENCE
IN GARDENED TOWNHOUSES
AND VILLAS PROJECT
DEVELOPMENT
With the goal of bringing the best
quality properties to customers
by the most professional services,
prime locations, fi nancial strength,
enthusiastic and experienced
workforce to lift Khang Dien brand to
a new height.
GENERAL INFORMATION
Business name: CÔNG TY CỔ PHẦN ĐẦU TƯ VÀ KINH DOANH NHÀ KHANG ĐIỀNEnglish name: Khang Dien House Trading and Investment Joint Stock CompanyAddress: Room 801, 8th Floor, Centec Building, 72 - 74 Nguyen Thi Minh Khai Street, Ward 6, District 3, Ho Chi Minh City, Vietnam. Tax code: 0302 588 596Tel: (84-8) 3820 8858Fax: (84-8) 3820 8859Email: info@ khangdien.com.vnWebsite: www.khangdien.com.vn
OVERVIEW
Stock information
Stock symbol: KDHListing date: 01/02/2010Stock exchange: Hochiminh City Stock Exchange - HOSE Charter capital: VND2,339,998,920,000Business sector: Real estate trading and investment
AuditorErnst & Young Vietnam Limited CompanyAddress: 28th Floor, Bitexco Finance TowerNo.2 Hai Trieu Street, District 1, Ho Chi Minh City, Vietnam.Tel: (84.8) 3824 5252 - Fax: (84.8) 3824 5250Website: www.ey.com/VN/en/home
10 11ANNUAL REPORT 2016 GENERAL INFORMATION
Established Khang Dien
House Trading and
Investment Company
Limited.
Increased charter capital from
VND480,699 Billion to VND750 Billion.
Offi cially launched new product line -
Mega Residence and sold out 160 units
within 5 months.
Developed Mega Ruby and Mega
Sapphire next to Mega Residence project,
creating a new residential community of
more than 10 hectares in District 9.
Increased charter capital to VND2,340 Billion.
Mega Village with more than 300 units sold,
Lucasta with 100/140 villas sold and Melosa
Garden project with more than 450 townhouses
and villas sold out.
Launched sales of The Venica, the premium
project, the bright spot in the luxury villa
segment in the East of the city.
Melosa Garden project gained great success
with “Best Housing Development” prize in
Vietnam Property Awards 2016.
In October 2016, Khang Dien was honorably
selected in Top 50 Best Listed Companies in
Vietnam by Forbes.
In November 2016, Khang Dien won the fi rst
prize about Investor Relation in Vietnam which
was organized by Vietstock.
Offi cially listed common
shares on Hochiminh City
Stock Exchange (HOSE)
under KDH ticker.
Increased charter capital
from VND332 Billion
to VND439 Billion by
issuing shares to existing
shareholders and
employees.
Developed Goldora Villa
eco villa project
(also known as Lucasta).
Increased charter capital from
VND439 Billion to VND480,699
Billion.
Developed Mega Residence
project in District 9 with 160
units.Transformed from a
limited company into a
joint stock company and
increased charter capital
from VND216 Billion to
VND332 Billion.
Increased charter capital to VND1,800 Billion.
Acquired 57.3% of Construction Investment
Shareholding Company (BCCI).
Launched sales of Mega Village, Melosa
Garden, Lucasta and The Venica projects.
Lucasta project won Vietnam Property
Awards 2015 for the best interior decoration.
2001
2014
2016
2010
2011
2013
2007
2015
Over the past 15 years, with passion, creativity and persistence, Khang Dien House Trading and Investment Joint Stock
Company has overcome diffi culties and challenges, and gradually affi rmed its prestigious brand that is consistent with the
goal of off ering customers the best real estate properties through the best professional services.
BEING CONFIDENT WITH ITS INTERNAL STRENGTH: NEARLY 500 HECTARES OF LANDBANK IN PRIME LOCATIONS - TRANSPARENT LEGAL FRAMEWORK - REASONABLE PRICES - OUTSTANDING QUALITY, KHANG DIEN HAS ESTABLISHED ITS POSITION AS A REAL ESTATE DEVELOPER OF COMPREHENSIVE SOLUTIONS WHO OFFERS THE BEST LIVING EXPERIENCE TO CUSTOMERS IN ACCORDANCE WITH THE MOTTO “WHERE YOU PUT YOUR TRUST - WHERE YOU MAKE YOUR HOME”.
With smart strategic direction, experienced and dedicated workforce, and tremendous supports from the investors
and strategic partners, Khang Dien is confi dent in its sustainable development journey, creating real estate market
breakthroughs in HCMC as well as Vietnam.
MILESTONES
12 13ANNUAL REPORT 2016 GENERAL INFORMATION
FULL PROJECT LIST
COMPLETED PROJECTS
WITH OVER 15 YEARS OF EXPERIENCE, KHANG DIEN HAS AFFIRMED ITS OUTSTANDING POSITION IN THE FIELD OF REAL ESTATE DEVELOPMENT IN HCMC.
KHANG DIEN DETERMINES THAT PRODUCT AND SEGMENT DIVERSIFICATIONS ARE THE KEYS TO GROW CUSTOMER BASE. IN THE COMING YEARS, THE COMPANY WILL CONTINUE TO BETTER SATISFY CUSTOMER DEMANDS, SO EACH CUSTOMER COMING TO KHANG DIEN WILL HAS CHANCES TO CHOOSE SEVERAL REAL ESTATE PRODUCTS THAT ARE SUITABLE WITH THEIR FINANCIAL CONDITIONS REGARDLESS THE PRODUCT SEGMENTS. IN ADDITION, THE COMPANY IS CONSTANTLY PERFORMING MARKET RESEARCH TO CREATE THE BEST PRODUCTS SUITABLE TO THE PREVAILING TRENDS AND AFFORDABLE.
AT PRESENT, THE COMPANY HAS BEEN LAUNCHING MANY PRODUCT TYPES INCLUDING TOWNHOUSE, VILLA, AND APARTMENT ACROSS ALL SEGMENTS FROM GOOD TO PREMIUM CLASS, AND SUPER LUXURIOUS CLASS.
Ho Chi Minh City map
Location: Duong Dinh Hoi Street, Phuoc Long B Ward,
District 9, Ho Chi Minh City.
Land area: 10.4 ha
Product: 247 detached villas, duplex villas, gardened
townhouses, and apartments.
Execution progress:
• Legal status: 1/500 master plan approved; project land
entitlement and land ownership certifi cate of each lot
issued.
• Construction - sales: Sold out and forming a community.
KHANG DIEN - PHUOC LONG B 1
Location: Bung Ong Thoan Street, Phu Huu Ward, District 9,
Ho Chi Minh City.
Land area: 6 ha
Product: 225 detached villas, duplex villas and townhouses.
Execution progress:
• Legal status: 1/500 master plan approved; project land
entitlement and land ownership certifi cate of each lot
issued.
• Construction - sales: Sold out and forming a community.
TOPIA GARDEN2
Location: Phuoc Long B Ward, District 9, Ho Chi Minh City
Land area: 7.1 ha
Product: 197 detached villas, duplex villas and townhouses.
Execution progress:
• Legal status: 1/500 master plan approved; project land
entitlement and land ownership certifi cate of each lot
issued.
• Construction - sales: Sold out and 100% homebuyers
have moved in, forming a community.
RIVER TOWN 3
BUSINESS SCOPE AND SCALE
14 15ANNUAL REPORT 2016 GENERAL INFORMATION
FULL PROJECT LIST(continued)
COMPLETED PROJECTS (continued)
Location: Phuoc Long B Ward, District 9, Ho Chi Minh City
Land area: 0.8 ha
Product: 29 garden townhouses.
Execution progress:
• Legal status: Land entitlement, property ownership
certifi cate of each house and handover completed.
• Construction - sales: Sold out 100%, homebuyers have
moved in, forming a community.
Location: Nguyen Duy Trinh Street, Binh Trung Dong Ward,
District 2, Ho Chi Minh City
Land area: 3 ha
Product: 876 apartments.
Execution progress:
• Legal status: 1/500 master plan approved; project land
entitlement and land ownership certifi cate of each
apartment block issued.
• Construction - sales: » Parcspring: 404 apartments, sold 99%, handed over
apartments
» Krista: 344 apartments, sold 86%, handover in
progress
» Kris Vue: 128 apartments, sold 94%, scheduled to
hand over in Quarter II/2018.
Location: Eastern Ring Road (a.k.a Vo Chi Cong Street),
Phu Huu Ward, District 9, Ho Chi Minh City
Land area: 3.2 ha
Product: 160 townhouses with construction completed.
Execution progress:
• Legal status: Land entitlement, property ownership
certifi cate of each house and handover completed.
• Construction - sales: Sold out 100%; homebuyers have
moved in, forming a community.
Location: Phu Huu Ward, District 9, Ho Chi Minh City
Land area: 5 ha
Product: 222 townhouses with construction completed.
Execution progress:
• Legal status: Land entitlement, property ownership
certifi cate of each house and handover completed.
• Construction - sales: Sold out 100%; homebuyers have
moved in, forming a community.
HOJA VILLA4 MEGA RESIDENCE6
APARTMENT PROJECT(JOINT-VENTURE WITH CAPITALAND)5 MEGA RUBY7
16 17ANNUAL REPORT 2016 GENERAL INFORMATION
PROJECTS UNDER DEVELOPMENT
FULL PROJECT LIST(continued)
Location: Phu Huu Ward, District 9, Ho Chi Minh City
Land area: 5.7 ha
Product: 335 townhouses with garden and villas.
Execution progress:
• Legal status: Land entitlement, property ownership
certifi cate of each house and handover completed in
Quarter I/2017.
• Construction - sales: Sold out and 96%, homebuyers
have moved in, forming a community in Quarter I/2017.
MEGA VILLAGE8Location: Phu Huu Ward, District 9, Ho Chi Minh City
Land area: 3.1 ha
Construction density:
• Entire project: 23.9%
• Villa: 50%
Product: 43 premium villas.
Execution progress:
• Legal status: 1/500 master plan approved; project land
entitlement and land ownership certifi cate of each lot
issued.
• Construction - sales: Completed construction of 43
units; and forming a community.
THE VENICA11
Location: Phuoc Long B, District 9, Ho Chi Minh City
Land area: 0.3 ha
Product: 15 townhouses with completed infrastructure
and house construction.
Execution progress:
• Legal status: 1/500 master plan approved; project land
entitlement and land ownership certifi cate of each lot
issued. • Construction - sales: Completed construction of 15
units, sold out in Quarter I/2017.
FELIZA12
Location: Phuoc Long B, District 9, Ho Chi Minh City
Land area: 3.1 ha
Product: 131 townhouses with garden.
Execution progress:
• Legal status: 1/500 master plan approved, project land
entitlement issued.
• Construction - sales: 131 houses constructed and sold
out in Quarter I/2017.
MERITA13
Location: Phu Huu Ward, District 9, Ho Chi Minh City
Land area: 17.3 ha
Construction density:
• Entire project: 37.16%
• Villa: 50%
• Townhouse: 60% - 75%
Product: 567 gardened townhouses and villas.
Execution progress:
• Legal status: 1/500 master plan approved; project land
entitlement and land ownership certifi cate of each lot
issued.
• Construction - sales: Completed construction and
handover of 456 houses; the 111 remaining units will be
completed in Quarter II/2017.
MELOSA GARDEN9
Location: Phu Huu Ward, District 9, Ho Chi Minh City
Land area: 8.2 ha
Construction density:
• Entire project: 49.35%
• Villa: 50%
Product: 140 premium villas.
Execution progress:
• Legal status: 1/500 master plan approved; project land
entitlement and land ownership certifi cate of each lot
issued.
• Construction - sales: Completed construction and
handover of 100 units; the remaining 40 villas will be
completed in Quarter II/2017.
LUCASTA10
18 19ANNUAL REPORT 2016 GENERAL INFORMATION
FUTURE PROJECTS
Location: Phu Huu Ward, District 9, Ho Chi Minh City
Land area: 3.6 ha
Product: 146 townhouses with gardens.
Execution progress:
• Legal status: Compensation completed; investment
certifi cate; 1/500 master plan approval in progress.
FULL PROJECT LIST(continued)
Location: Phu Huu Ward, District 9, Ho Chi Minh City
Land area: 4.4 ha
Product: 150 villas and townhouses with gardens.
Execution progress:
• Legal status: 1/500 master plan approved; investment
certifi cate, project land entitlement, land ownership
certifi cate in progress.
TOWNHOUSE PROJECT17
Location: Binh Trung Dong Ward, District 2, Ho Chi Minh City
Land area: 5.7 ha
Product: 159 townhouses with gardens, and premium villas.
Execution progress:
• Legal status: 1/500 master plan approved; investment
certifi cate.
BINH TRUNG PROJECT18
KIM PHAT RESIDENTIAL AREA 19Location: Phu Huu Ward, District 9, Ho Chi Minh City
Land area: 2.7 ha
Product: Premium apartments.
Execution progress:
• Legal status: Compensation completed; investment
certifi cate, 1/500 master plan, project land entitlement
in progress.
SAPPHIRE PROJECT16
Location: Phu Huu Ward, District 9, Ho Chi Minh City
Land area: 3.1 ha
Product : 118 townhouses with gardens.
Execution progress:
• Legal status: Compensation completed, 1/500 master
plan approved, investment certifi cate, project land
entitlement issued. • Construction and sales in Quarter I/2017.
GIA PHUOC PROJECT15
Location: Phu Huu Ward, District 9, Ho Chi Minh City
Land area: 1.6 ha
Product: 867 apartments.
Execution progress:
• Legal status: 1/500 master plan approved, investment
certifi cate, land ownership certifi cate.
• Construction - sales: Construction scheduled to start in
early Quarter I/2017 and sales start at the end of Quarter
II/2017.
LA ALBA APARTMENT BUILDING14
20 21ANNUAL REPORT 2016 GENERAL INFORMATION
PROJECT LOCATIONS
22 23ANNUAL REPORT 2016 GENERAL INFORMATION
TYPICAL PROJECTS IN 2016
THE VENICA IS A 5-STAR VILLA COMPOUND WITH 43 EXCLUSIVE AND PERFECTLY BUILT VILLAS COMPLEMENTED BY MODERN UTILITIES AND AMENITIES SUCH AS FITNESS CLUB, SWIMMING POOL, BAR, ETC. LOCATED IN A 3-HECTARE CAMPUS WITH THREE SIDES SURROUNDED BY THE RIVER OF MORE THAN 1,000M LONG, THE PROJECT IS LIKE A PEACEFUL GREEN OASIS DETACHED FROM THE BUSY URBAN LIFE.
AN EXCLUSIVE COMPOUND OF 43 VILLAS WITH 24/7 SECURITY. TWENTY FOUR UNITS SOLD IN 2016.
EXCLUSIVE LIFESTYLE
Designed in Mediterranean semi-classical style and
characterized in Italian aristocracy - the “cradle” of the
ancient nobles lifestyle famous with luxurious villas
on the picturesque hills, The Venica is like a beautiful
painting in the East of Saigon. The compound is an
artistic architectural masterpiece with luxurious and
gorgeous villas elaborately designed and detached
from the busy outside world, just for upper class.
Located at a prime position with 2 facades facing the
intersection of Do Xuan Hop Street and Song Hanh
Street, HCMC - Long Thanh - Dau Giay Expressway,
District 9, HCMC, The Venica is a “big hit” product
of Khang Dien and is considered one of the most
beautiful villa compounds in HCMC in particular and in
the Vietnam in general.
24 25ANNUAL REPORT 2016 GENERAL INFORMATION
TYPICAL PROJECTS IN 2016 (continued)
A BEAUTIFUL COMPOUND OF 140 VILLAS UNDER 24/7 SECURITY. NINETY EIGHTUNITS SOLD.
ENJOY THE QUINTESSENCE OF LIFE
Choosing a dream house is very important for each
of us to enjoy a perfect life and to treasure the value
of oneself. Lucasta premium eco villas are built for
luxurious life and express the style of the owners. To
create real living values for each resident in Lucasta,
Khang Dien has collaborated with the leading
architects in Asia to create a premium resort in the
heart of Saigon.
In 8.2 hectares campus with construction density of
only 49,35%, 140 villas are surrounded by a 1 hectare
eco lake and harmonious landscape. The refi nement
shows in every architectural aspect with open green
space to catch sunshine and fresh air, delivering a
peaceful, healthy and prosperous life to all residents.
No need to travel anywhere else, you can enjoy 5-star
hospitality services with the most luxurious utilities
and amenities right in the compound. In the fresh
atmosphere, you can drop yourselves in the cool blue
water of the infi nity pool to release stress and tiredness
from work. The Gym room is equipped with modern
facilities will help you regain health and energy.
Managed by the world’s leading property manager
- CBRE, Lucasta assures the residents guaranteed
security and high-quality services for an elite residential
community.
26 27ANNUAL REPORT 2016 GENERAL INFORMATION
TYPICAL PROJECTS IN 2016 (continued)
567 VILLAS AND GARDEN TOWNHOUSES IN COMPOUND WITH 24/7 SECURITY. OPENED FOR SALES FROM NOVEMBER 2015. SOLD 456 HOUSES.
HAPPY JOURNEY
Melosa Garden compound consists of 567 villas
and gardened townhouses on 17.3 hectares of land
adjacent to Mega Village located on the Eastern Ring
Road in District 9.
Melosa Garden delivers a perfect living environment
with outstanding utilities and a breakthrough design
optimally serving the needs of the residents. The
compound off ers a peaceful, comfortable and happy
living experience.
About 4 hectares of the project is allocated for park,
green space, and high-class utilities and amenities.
Especially, swimming pool and central lake,... are drawn
from the artifi cial waterfalls in Singaporean high-class
residences. All become a prominent centre point, the
“heart” of the entire project. Besides, a public area of
modern facilities of mini-supermarket, Gym room, and
tennis courts built to meet international standards has
been completed and ready to welcome.
Melosa Garden is managed by CBRE - an international
professional real estate property management fi rm.
Construction quality is “certifi ed” by SCQC - the leading
quality management and consulting fi rm in Vietnam. In
addition, Khang Dien always stress the importance of
property ownership transparency. As a result, Melosa
Garden continues to receive the warm supports
from customers, affi rming Khang Dien’s brand and
reputation in the real estate market.
28 29ANNUAL REPORT 2016 GENERAL INFORMATION
TYPICAL PROJECTS IN 2016 (continued)
The Mega townhouse projects have been developed
since 2014 with outstanding features - “Compound
setting, modern design, high-class facilities, complete
property rights, and reasonable prices”. Those projects
have attracted many customers when Khang Dien sold
nearly 1,000 units within less than 3 years. Currently,
90% of the homebuyers have moved in and formed a
civilized and prime community on the frontage of the
Eastern Ring Road in District 9.
The Mega Townhouse Compound is really a product
line symbolizing Khang Dien’s trade mark and earning
admirations in the real estate market in the South and
in the country.
(MEGA RESIDENCE - MEGA RUBY - MEGA VILLAGE)
THE MEGA TOWNHOUSE PROJECTS
30 31ANNUAL REPORT 2016 GENERAL INFORMATION
ONLY 131 HOUSES. SOLD OUT IN QUARTER I/2017.
VALUES FOR PROSPEROUS LIFE
With unique advantages, only 131 gardened
townhouses located on the frontage at the
intersection of Lien Phuong Street and Eastern
Ring Road, one of the most beautiful locations in
District 9, Merita has become a “hot” phenomenon
in the market. The townhouses are expected to be
warmly welcomed by the investment community
because its Shop Houses are easily connected to
the center of District 1, Phu My Hung new city, and
the neighboring public utilities. Especially, it has the
fastest connection to the Saigon high-tech park,
universities and shopping centers in the East of the
city.
Merita is for civilized, dynamic and successful
residential community.
TYPICAL PROJECTS IN 2016 (continued)
32 33ANNUAL REPORT 2016 GENERAL INFORMATION
IN 2016, KHANG DIEN ONCE AGAIN ASSERTED ITS BRAND AND REPUTATION IN THE REAL ESTATE MARKET BY CONTINUING THE NEXT PHASES OF THE PROJECTS THAT HAVE RECEIVED TREMENDOUS SUPPORTS FROM HOMEBUYERS. IN PARTICULAR, THE MEGA TOWNHOUSE PROJECTS HAVE SOLD MORE THAN 1,000 UNITS WITHIN 18 MONTHS. MELOSA GARDEN HAS BEEN CONSIDERED THE PROJECTS HAVING THE MOST ATTRACTIVE LANDSCAPE AND BEST UTILITIES AND AMENITIES IN THE EAST OF THE CITY. LUCASTA IS A
PREMIUM ECO VILLA PROJECT DESIGNED WITH GREEN SPACE COVERING 65% OF THE LAND PLOT, AND THE VENICA IS AN LUXURIOUS FIVE-STAR VILLA FAMOUS FOR ITS REFINED SEMI-CLASSIC DESIGN IN MEDITERRANEAN STYLE.
THE YEAR 2016 CLOSED WITH OUTSTANDING EVENTS MARKING KHANG DIEN’S GREAT ACHIEVEMENTS IN DEVELOPMENT AND READINESS FOR NEW BREAKTHROUGHS IN 2017.
MAJOR EVENTS IN 2016
Khang Dien launched the model townhouse and villa of
Melosa Garden project at the project site on the Eastern Ring
Road, Phu Huu Ward, District 9 on January 16th 2016. Within
one month from the model house launch day, Khang Dien
fully constructed 100 houses and more than 4 hectares of
quality utilities and amenities. The homebuyers from the
fi rst phase has immediately enjoyed the convenient and
comfortable living space when moving in.
Beside prime location, Lucasta has a refi ned
design catching morning sunshine and a
rustic interior style. On the sales opening,
Khang Dien off ered special promotion
programs for early homebuyers such as
the 18% discount for advanced down
payment. After the ceremony, Lucasta
has been well received by the market and
handed over to customers in a short time.
MELOSA GARDEN LAUNCHED MODEL HOUSESJAN 16
MAR 19 LUCASTA NEW ECO VILLAS OPENED FOR SALES
34 35ANNUAL REPORT 2016 GENERAL INFORMATION
Within four months after the fi rst sales launch in
October 2015, the fi rst 96 villas and townhouses
of Melosa Garden were offi cially handed over
to the fi rst group of buyers on April 10th 2016.
The ceremony was held successfully with the
participation of more than 300 customers and
representatives from the distributors, investors and
CBRE Vietnam, the property manager.
MAJOR EVENTS IN 2016 (continued)
The Venica is considered a “big hit” of Khang Dien in
luxury property segment. On the evening of April 24th
2016, the project, which was fully built, was offi cially
introduced to the customers and partners through
Gala Dinner in Mediterranean style. More than 300
prominent business leaders from large investment
funds, banks, securities fi rms, partners, and customers
of Khang Dien attended the event.
The project elevates Khang Dien’s market position to a
new height and helps implement segment diversifi cation
strategy to serve various needs of customers.
HANDING OVER THE FIRST 96 HOUSES OF MELOSA GARDENAPR 10 APR 24 “THE VENICA MOMENT” GALA DINNER
On May 23rd, 2016, Khang Dien and Coteccons held a strategic partnership signing ceremony at the
Intercontinental Asiana Saigon. Accordingly, Coteccons would become a strategic partner, design & build
general contractor for Khang Dien in the coming time. The ceremony was attended by top managements
from Khang Dien and Coteccons in the presence of 30 media agencies and marked the strategic partnership
between the two companies aiming at delivering high-quality housing projects to the society as well as
fostering prosperity to both parties.
KHANG DIEN COOPERATED WITH COTECCONS TO DEVELOP LUCASTA HIGH-CLASS VILLASMAY 23
36 37ANNUAL REPORT 2016 GENERAL INFORMATION
MELOSA GARDEN WON
AT THE CEREMONY OF “VIETNAM PROPERTY AWARDS 2016”BEST HOUSING DEVELOPMENT
Melosa Garden of Khang Dien made a good impression to
the judges, who were real estate experts in Asia, with the
luxurious architectures of villas and townhouses in a green
space surrounded by river, and stressed with a more than
4 hectares high-class utility area in the center. Also
thanks to these outstanding points, Melosa Garden
modern townhouse and villa project won Best Housing
Development (Ho Chi Minh City).
VIETNAM PROPERTY AWARDS 2016 WERE A PART OF ASIAN PROPERTY AWARDS ORGANIZED BY ENSIGN MEDIA - THE LEADING PROPERTY MEDIA COMPANY IN ASIA TO HONOR THE BEST REAL ESTATE PROJECTS, CONSTRUCTION WORKS, ARCHITECTURES, AND INTERIOR DESIGNS IN VIETNAM. THE AWARDS WERE GIVEN TO THE LEADING PRESTIGIOUS REAL ESTATE WORKS BASED ON THE MOST FAIR, OBJECTIVE, AND TRANSPARENT CRITERIA IN ASIA.
TOP
BEST VIETNAMESE LISTED COMPANIES IN VIETNAM 2016
50In 2016 was the fi rst year marking the presence of Khang Dien
in Top 50 Best Vietnamese Listed Companies voted by Forbes
Vietnam. The list of companies were consolidated based on
business performance and superior quality of product.
ORGANIZED BY VIETSTOCK ENTERPRISE WITH BEST IR ACTIVITIES IN 2016
Best IR Voting Program 2016 has been an annual event
organized by Vietstock since 2011. In 2016, Vietstock
co-organized with Vietnam Association of Financial Executives
(VAFE) to hold this event.
After conducting a comprehensive survey of 639 listed
companies on two stock exchanges through two steps:
(1) Comprehensive survey on implementing obligation of
information disclosure in Vietnam securities market and (2)
organizing public voting on website to all investors in parallel
with the evaluation from fi nancial institutions. At the end,
Khang Dien won 3 major awards of IR 2016, including listed
enterprise with best IR activities, Top 5 listed enterprises with
highest voting rate from investors, and Top 5 enterprises with
highest voting rate from fi nancial institutions.
HONORS AND AWARDS ACHIEVEDIN 2016
38 39ANNUAL REPORT 2016 GENERAL INFORMATION
SHARE CAPITAL OWNERSHIP PERCENTAGE
SHARE INFORMATION
According to the list of securities holders provided by Vietnam Securities Depository, the percentage of share ownership of the
Company is as follows:
Market capitalization value as of December 31st 2016
4,679,997,840,000 VND
2,339,998,920,000 Charter capital
VND 233,999,892 Number of shares
SHARES
10,000 Face value per share
VND/SHARE 233,999,892 Number of outstanding shares
SHARES
No. Shareholders
Domestic shareholders
Foreign shareholders Total
number of shares
Percentage/ChartercapitalNumber of
sharesPercentage/
Charter capitalNumber of
sharesPercentage/
Charter capital
1 State - - - - - -
2Shareholders holding
5% or more80,034,252 34.20% 51,153,116 21.85% 131,187,368 56.05%
3Shareholders holding
from 1% to less than 5%21,666,136 9.26% 52,372,615 22.38% 74,038,751 31.64%
4Shareholders holding
less than 1%18,301,450 7.83% 10,472,323 4.48% 28,773,773 12.31%
5 Treasury shares - - - - - -
TOTAL 120,001,838 51.29% 113,998,054 48.71% 233,999,892 100%
12%
56%32%
Shareholders holding 5% or more
Shareholders holding from 1% to less than 5%
Shareholders holding less than 1%
KDH
SHARE PRICE AND TRADING VOLUME
TREASURY SHARE TRANSACTIONS: In 2016, the Company did not have any treasury share transaction.
CAPITAL CHANGE OF OWNERSIn October 2016, the Company successfully issued 53,999,892 bonus shares to the existing shareholders to increase charter
capital.
SHAREHOLDER STRUCTURE LIST OF MAJOR SHAREHOLDERSIn many consecutive years, foreign shareholders hold around
49% of the Company’s share capital.
In many consecutive years, foreign shareholders hold around
49% of the Company’s share capital.
No. Shareholder structure
Number of shares
Ownership percentage
(%)
1 Treasury shares - -
2 Domestic shareholders 120,001,838 51.29%
Institutions 104,802,193 44.79%
Individuals 15,199,645 6.50%
3 Foreign shareholders 113,998,054 48.71%
Institutions 113,842,990 48.65%
Individuals 155,064 0.06%
TOTAL 233,999,892 100%
No. Shareholder name
Number of shares
Ownership percentage
(%)
1Tien Loc Investment
Co., Ltd.32,417,840 13.85%
2Gam Ma Investment
Co., Ltd. 26,495,303 11.32%
3A - Au Trading &
Investment Co., Ltd.21,121,109 9.03%
4Vietnam Enterprise
Limited 20,944,584 8.95%
5Vietnam Ventures
Limited 15,802,520 6.75%
6 Mutual Elite Fund 14,406,012 6.16%
TOTAL 131,187,368 56.06%
SHAREHOLDER INFORMATION
40 41ANNUAL REPORT 2016 GENERAL INFORMATION
SHAREHOLDER INFORMATION (continued) INVESTOR RELATIONS
WITH THE EFFORT IN INVESTOR RELATION ACTIVITIES, KHANG DIEN HONORABLY IS ONE OF BEST IR ACTIVITIES.
investment funds from Europe, America, Hong Kong,
and Singapore. Through those meetings, Khang Dien
introduced the current projects and updated the selling
progress, showing the Company’s outstanding capability
in the market place. Information about potential projects
and land bank were also shared, so that the investors could
see Khang Dien’s true values and development possibility
in the future. In addition, Khang Dien paid high attention
to discussing long-term business plan and development
direction with the investors to build rapport between the
Company and the investors.
Besides the meetings at the Company’s offi ce, Khang
Dien actively participated in investment seminars held by
prestigious institutions, for examples, the Vietnam Access
Day held by Viet Capital in March 2016 and DC Access Day
held by Dragon Capital in May 2016 in Ho Chi Minh City.
At the seminars, the Company made presentations and
answered the questions of the investment communities,
both domestic and overseas.
RELATIONSHIPSWITH STAKEHOLDERSKhang Dien always ensures information transparency by
updating news, reports and important information relating
to the benefi ts of the stakeholders on the Company’s
website at www.khangdien.com.vn and other media
channels. The information relating to the Company’s
activities, fi nancial situation, etc. is also sent to Ho Chi Minh
City Stock Exchange and State Securities Commission in
line with regulations.
DOMESTIC AND OVERSEAS INVESTORSIn 2016 Khang Dien attracted strong attention from
domestic and overseas investors. Apart from the meetings
to update business performance quarterly, the Company
coordinated with securities companies to organize project
tours for the investors as well as held meetings with large
FOREIGN SHAREHOLDERS
Over the past 15 years operating in
the fi eld of real estate investment
and development, Khang Dien
gradually affi rmed its brand in the
market place and became a leading
real estate developer in Ho Chi Minh
city. With strong fi nance, Khang Dien
always receives the accompanying
and enthusiastic support from large
international investment funds such
as VinaCapital, Dragon Capital, PYN
Elite Fund, SAM, Vietnam Holding,
Duxton, etc.
42 43ANNUAL REPORT 2016 GENERAL INFORMATION
SUBSIDIARIES OF WHICH KHANG DIEN OWNS MORE THAN 98%
BINH CHANH CONSTRUCTION GROUP INVESTMENT JSC. (BCCI) - KDH OWNS 57.31%
No. Name of subsidiaries Charter capital (VND Billion)
KDH Ownership percentage
1 Hao Khang Ltd. 123,6 100.00%
2 Long Phuoc Dien House Development and Infrastructure Building Ltd. 140 99.95%
3 Nha Pho Investment Ltd. 430 99.90%
4 Gia Phuoc Real Estate Investment and Trading Ltd. 250 99.90%
5 Tri Kiet Real Estate Investment and Trading Ltd. 17 99.90%
6 Saphire Real Estate Investment and Trading Ltd. 310 99.90%
7 International Consulting Co., Ltd. 90 99.90%
8 Kim Phat Real Estate Investment and Trading Ltd. 200 99.90%
9 Mega City Ltd. 60 99.85%
10 Saigon Spring Real Estate Trading Ltd. 100 99.80%
11 Thap Muoi Real Estate Trading and Construction Company Ltd. 150 99.80%
12 Tri Minh Real Estate Investment and Trading Ltd. 285 99.80%
13 Binh Trung Real Estate Investment and Trading Ltd. 200 99.80%
14 Lien Minh Real Estate Investment and Trading Ltd. 100 99.70%
15 Song Lap Real Estate Investment and Trading Ltd. 305 99.90%
16 Vila JSC 50 99.00%
17 Viet Huu Phu JSC 225 99.00%
18 Green Space Real Estate Trading and Investment Ltd. 280 98.01%
No. Name of company Charter capital (VND Billion)
KDH Ownership percentage
19 Binh Chanh Construction & Investment JSC. (BCCI) 867.2 57.31%
BCCI has two subsidiaries:
20 BCCI JSC
21 BCCI Development Investment Ltd.
Khang Dien group of companies consists of 21 subsidiaries
that can be arranged in two sub-groups. The fi rst is 18
subsidiaries operating in the fi eld of real estate and
construction that Khang Dien owned 98% of equity
capital. The second is BCCI group of companies, of which
Khang Dien owns 57.31% of equity capital. In general, all
subsidiaries conduct business and create revenues in Ho
Chi Minh City area.
98%
57.31%
21SUBSIDIARIES
EQUITY CAPITAL IN 18 SUBSIDIARIES
EQUITY CAPITALIN BCCI
SUBSIDIARIES, JOINT VENTURES AND ASSOCIATES
44 45ANNUAL REPORT 2016 GENERAL INFORMATION
OBJECTIVES OF THE COMPANY
MEDIUM- AND LONG-TERM DEVELOPMENT STRATEGIES
Creating perfect housing products
in terms of build quality, utilities and
property rights.
Diversifi cations of products (low-
rise, high-rise) product segments
(middle, fair, high class) and locations.
Place customers’ benefi ts above all and
put the customers at the center of all
activities.
Build houses with refi ned designs,
quality materials and at reasonable
prices.
Improve business and fi nancial
performances through strengthening
governance, enhancing fi nancial capacity,
and utilizing all resources.
Ensure transparency and maximize
shareholders’ value.
• Product diversifi cation:
Besides the core product, low-
rise townhouses, the Company
will develop high-rise apartment
buildings to meet customers’
demand.
• Segment diversifi cation: Besides
mid- and high-end products, the
Company will develop low-end
product for lower middle class
customers.
• Diversifi cation of locations: In
addition to the ongoing business
in the East of the city (in District 9),
which benefi ts from infrastructure
development such as Saigon
Bridge 2, Thu Thiem Bridge, Thu
Thiem Tunnel, Ben Thanh - Suoi
Tien Metro, and Long Thanh - Dau
Giay Highway, the Company will
expand business to the South and
Southwest of the city, i.e. Binh Tan
and Binh Chanh Districts (BCCI
projects) and other good locations.
• General Director Team to review
and standardize all processes and
procedures of operations to best
serve the fast growing pace of the
Company and in compliance with
the laws.
• Step up supervising activities and
promote the role of corporate
governance and risk control
in fi nancial management,
accounting, auditing to bring best
benefi ts to the Company.
• Continue to improve transparency
about the Company’s activities and
perform information disclosure as
required.
• Provide more corporate
governance trainings for Board of
Directors, General Director Team
and Inspection Committee.
• Boost growth and increase
business value on the foundation
of sustainable development by
integrating development strategy
with corporate social responsibility.
• Implement succession planning
for top management.
• Maximize shareholders’ value and
balance stakeholders’ benefi ts in
business management.
Khang Dien set the following development strategies:
To become a leading real estate company off ering quality housing products with refi ned design, perfect living environment and
transparent property rights. Khang Dien will focus on the following goals:
PRODUCTS CUSTOMERS SHAREHOLDERS
DIVERSIFICATIONS OF PRODUCTS, SEGMENTS,
AND LOCATIONS
IMPROVE THE EFFECTIVENESS OF
CORPORATE GOVERNANCE
SUSTAINABLE DEVELOPMENT
1 2 3
OBJECTIVES FOR BETTER COMMUNITIES AND SOCIETY
Not only builds quality houses with refi ned design, Khang Dien also actively
participates in social activities and share responsibilities with the communities in
order to build a better society. In recent years, Khang Dien participated in programs
with impacts such as donating gifts to the hospitals (Cho Ray, Pham Ngoc Thach,
Nhi Dong 1) and Binh Trieu Disabled and Orphaned Center, funding “Lighting up
Dreams” program, and charity trips to Tra Vinh, Long An, Ben Tre, Can Gio, etc.
Khang Dien did not participate in those social activities for the purpose of promoting
brand name but for the spirit of humanity and with the desire to share with the
community and to build a better society.
DEVELOPMENT DIRECTION
46 47ANNUAL REPORT 2016 GENERAL INFORMATION
• Experience in real estate development
With 16 years in the real estate development
business in Ho Chi Minh City, Khang Dien has
gained broad experience about the housing
market, demand drivers, land bank development,
legal procedures and product development.
The experience creates a fi rm foundation for the
Company’s long-term sustainable development.
• Strong fi nancial capacity
Having long-term commitments from large,
international investment funds and the supports
from the largest banks in Vietnam, together with its
strong fi nancial capacity and conservative fi nancial
structure, Khang Dien always maintains a low ratio
of debt over equity.
• Experience in risk management
With strategic vision, experience, and acumen of the
top management, Khang Dien always has accurate
judgment, realistic analysis and assessment
and best decisions for risk management during
business operation.
• Large land bank
Khang Dien currently owns large land bank in good
locations in Ho Chi Minh City area and continues to
make new land investments.
• Khang Dien brand name
Khang Dien brand name is getting more recognition
in Ho Chi Minh City are, especially in the segment
of low-rise housing in compound. Having placed
reputation on top, Khang Dien is proud to be the
brand that earns solid belief from the customers.
The Company continues to diversify products and
expands scale to make Khang Dien brand stronger.
• Large market demand
Currently housing demand in Ho Chi Minh City
remains large, but the supply is short to meet the
demand. Although there are many development
projects in the area, the product structures and
features are not suitable, leading to oversupply in
the premium segment. Khang Dien’s core product
is quality housing at reasonable price, which
satisfi es market demand well.
• Infrastructure development is a catalyst for the
real estate market. The completed traffi c network in
the East of the city including Thu Thiem Bridge, Thu
Thiem Tunnel, Long Thanh - Dau Giay Expressway
and the under construction Suoi Tien Metro Line
stimulate growth of Khang Dien’s market place
in District 9, attracting a lot of customers with
real demand for housing. Besides, the area in the
Southwest of the city with great potential for
development in the future is a great opportunity for
Khang Dien.
• Advantage from macroeconomic growth and
macroeconomic policies
In 2016, Vietnam’s economy achieved stable growth
with infl ation rate less than 5%. The urbanization rate
of Vietnam reached 2.5%, which is the highest rate
among the countries in Southeast Asia. In addition,
many supportive policies from the Government have
been issued and applied. Those factors help real estate
market in 2017 have more positive changes.
• Increasing competitions from competitors
Khang Dien’s success in low-rise houses built
in compound setting with full amenities and
environment-friendly design, transparent legal
framework, reasonable prices has attracted many other
real estate developers to join this segment.
• Effects from the unstable premium housing
segment
In Quarter IV/2016, the housing market showed some
signs of oversupply in the premium segment while
demand in the middle and middle-high segments
exceeded supply. In 2016, the majority of the real estate
companies focused on developing premium housing
selling at high price due to operating expenses and
high investment cost. According to experts, this
trend contributed to the imbalance (Supply exceeds
demand while the price still increases) and, with the
growth of credit funding housing project development
in 2016, the risk in housing bubble has increased. The
oversupply in premium apartment market has been
warned by many experts. In that context, the enterprise
having enough fi nancial capacity will continue to exist
and develop, and the failing enterprises will cause
troubles with serious consequences, even creating
housing market disruption.
• Macroeconomic risks
Exchange fl uctuations: The exchange rate risk is the risk
of fi nancial loss due to its fl uctuations. The USD dollar
exchange rate volatility, fl uctuation in gold price, and
international issues such as the Trans-Pacifi c Partnership
Agreement (TPP), Brexit, Fed’s interest rate raise,
currency devaluation of China and the neighboring
countries, etc. have led to a series of reactions in the
market, which complicated forecasts.
Exchange rate fl uctuations between VND and foreign
currencies may aff ect the fi nancial situation, investment
activities and business results of Khang Dien.
• At present the Company distributes its products
through large and well-known real estate trading
fl oors. This helps the Company concentrate
resources on other activities such as project
development, land bank expansion. However, this
is a weakness because Khang Dien has not yet built
a strong internal sales force to be independent in
selling products, instead of depending on external
distribution channels.
• From 2014 up to now, the Company has achieved
strong and outstanding development. It can be
said that this is a “hot development” period, and
Khang Dien needs to supplement its personnel to
meet the growing scale of the Company. However,
with the policy of building a labor force of “quality”
rather than “quantity”, the Company applies strict
criteria in recruitment. This has made the number
of personnel short of demand. Members of General
Director Team and Board of Directors have to
concurrently hold multiple positions.
STRENGTHS WEAKNESSES OPPORTUNITIES THREATS
W
SWOT ANALYSIS
48 49ANNUAL REPORT 2016 GENERAL INFORMATION
ORGANIZATIONAL CHART GOVERNANCE MODEL
KHANG DIEN OPERATES UNDER THE FORM OF JOINT STOCK COMPANY. BESIDES COMPLYING WITH THE LAWS, THE COMPANY FOLLOWS THE CHARTER THAT HAS BEEN APPROVED BY GENERAL SHAREHOLDERS’ MEETING. ORGANIZATIONAL STRUCTURE OF KHANG DIEN INCLUDES:
GENERAL SHAREHOLDERS’ MEETING
BOARD OF DIRECTORS
GENERAL DIRECTOR
DEPUTY GENERAL DIRECTOR
Finance & Accounting Department
Sales & Marketing Department
HR & Administration
Department
Project Management Department
Legal Department
INSPECTION COMMITTEE
INTERNAL AUDIT TEAM
GENERAL SHAREHOLDERS’ MEETING
Board of Directors (BOD)
The incumbent BOD of Khang Dien consists of the
Chairman and four members of BOD, in which, three
members holds positions in General Director Team and
one member is non-executive.
The Company has full set of functional departments and
project management teams.
General Director Team (GDT)
Head of the Team is the General Director. At present, the
Chairman is also the General Director. Assisting the General
Director are four Deputy General Director in charge of
legal, fi nance, construction and general aff airs.
Inspection Committee (IC)
The incumbent Inspection Committee includes one
head and two members.
50 51ANNUAL REPORT 2016 GENERAL INFORMATION
Experience: In the role of Chairman
of BOD cum General Director, Mr.
Ly Dien Son has directly managed
and operated the Company since its
establishment date. Over the past 16
years, with passion, dedication, and
experience, he has led the Company
to overcome challenges and achieved
breakthrough success, developing
Khang Dien to become one of the
leading real estate developers in
HCMC.
Working history:
• From 2001 - present: Chairman
of BOD cum General Director of
Khang Dien House Trading and
Investment Joint Stock Company.
Positions in other organizations:
None.
Chairman of BOD
Year of birth: 1966
Qualifi cation: Bachelor Degree from
the University of Culture
Experience: One of the strong
points of Khang Dien in comparison
with the other real estate companies
is its practice of transparent legal
framework, and Mrs. Trang lays the
foundation of this practice.
Working history:
• 2001 - 2005: Legal consultant -
Nguyen Thi Chinh Law Offi ce.
• Oct 2005 - July 2007: Administration
Manager - Member of BOD of
Khang Dien House Trading and
Investment Joint Stock Company.
• July 2007 - May 2008: Assistant
to Chairman of BOD Khang Dien
House Trading and Investment
Joint Stock Company.
• June 2008 - present: Deputy
General Director of Khang Dien
House Trading and Investment
Joint Stock Company.
Positions in other organizations:
None.
Experience: Mr. Bao is responsible
for the overall corporate legal matters.
He coordinates with the departments
to build internal process, procedures,
regulations to ensure Company’s
compliance with the charter and the
laws.
Working history:
• January 2000 - July 2002: Deputy
Director of Lai Gia Trading - Service
Co., Ltd.
• February 2004 - March 2006:
Associated Lawyer at Thanh Dat Law
Offi ce.
• March 2006 - August 2007: Deputy
Director at Son Tung Real Estate
Trading - Service Co., Ltd.
• September 2007 - September
2009: Assistant to General Director
of Khang Dien House Trading and
Investment Joint Stock Company.
• October 2009 - present: Deputy
General Director of Khang Dien
House Trading and Investment Joint
Stock Company.
Positions in other organizations:
• Chairman of BOD of Binh Chanh
Construction Group Investment JSC.
Experience: With many years of
experience and achievements in
prestigious fi nancial institutions, in
October 2009, Mrs. Phuong was invited
to join Khang Dien as a Member
of BOD. Since joining Khang Dien,
she has had positive contributions
to the Company’s development. In
addition, Mrs. Phuong gives advices
and supports functional departments
to build fi nancial strategies suitable to
each development stage and general
situation of the market.
Working history:
• 2002 - 2005: Senior Auditor of KPMG.
VinaCapital• 2006 - 2010: In charge of the
positions from Investment
Specialist to Investment Manager.
• July 1st 2010 - December 2016:
Investment Director - Head of
Property Portfolio of Vietnam
Opportunity Fund - a fund under
VinaCapital.
• December 2016 - present: Deputy
General Director of Vietnam
Opportunity Fund.
Experience: Mr. Son has more
than 10 years working for project
legal department. He has valuable
contributions to the completion of the
Company’s project legal framework.
Working history:
• 2001 - 2003: Project Legal Specialist of
Tan Binh Investment and Construction
JSC.
• 2004 - 2007: Project Legal Specialist
of Cotec Housing Investment and
Development JSC.
• October 2007 - April 2012: Deputy
Head of Legal Department of Khang
Dien House Trading and Investment
Joint Stock Company.
• April 2012 - April 26th 2013: Member
of BOD cum Deputy Head of Legal
Department of Khang Dien House
Trading and Investment Joint Stock
Company.
• October 2014 - present: Director,
Head of Legal Department Khang
Dien House Trading and Investment
Joint Stock Company.
• September 11st 2015 - present:
Member of BOD of Khang Dien
House Trading and Investment Joint
Stock Company.
Positions in other organizations:
None.
Khang Dien • October 2009 - present: Member
of BOD.
Positions in other organizations:
• Member of BOD cum General
Director of Thang Loi Textile and
Garment JSC.
• Member of Inspection Committee
of Quoc Cuong Gia Lai JSC.
• Member of BOD of Hung Vuong JSC
• Member of BOD of BCCI.
Member of BOD
Year of birth: 1976
Qualifi cation: Bachelor Degree in
Laws, Land Management Engineer
Member of BOD
Year of birth: 1975
Qualifi cation: Bachelor Degree in
Laws - Certifi ed Lawyer
Mr. LY DIEN SON Mrs. MAI TRAN THANH TRANG Mr. NGUYEN DINH BAO Mr. LE HOANG SON Mrs. NGUYEN THI DIEU PHUONG
Member of BOD (non-executive)
Year of birth: 1980
Qualifi cation: Bachelor Degree in
Economic - Finance, ACCA Auditor
Member of BOD
Year of birth: 1977
Qualifi cation: Bachelor Degree in
Laws, Bachelor Degree in Business
Administration
BOARD OF DIRECTORS
52 53ANNUAL REPORT 2016 GENERAL INFORMATION
Mrs. MAI TRAN THANH TRANGMr. LY DIEN SON Mr. NGUYEN DINH BAO
Experience: Ms. Chi has more than 15 years of
experience in Financial - Accounting and has been
working at Khang Dien for 10 years. Ms. Chi is directly
responsible for fi nance management, investment
strategic plan and Sales & Marketing department
management.
Working history:
• January 2001 - December 2004: Accountant, Chief of
Accounting - Finance of A&B Co., Ltd.
• May 2005 - October 2007: Deputy Head of
Accounting - Finance Department of Truong Thanh
Furniture Corporation.
• December 2007 - November 2015: Auditor, Chief
Accountant, Chief Financial Offi cer of Khang Dien
House Trading and Investment Joint Stock Company.
• December 2015 - present: Deputy General Director
of Khang Dien House Trading and Investment Joint
Stock Company.
Positions in other organizations:
• August 19th 2016 - present: Member of BOD of Binh
Chanh Construction Group Investment JSC.
Experience: Mr. Nguyen Duc Trong has 14 years of
experience in project management. Before joining
Khang Dien, he had held senior positions in real estate
companies. Mr. Trong has positive contributions to
Khang Dien’s project management.
Working history:
• 2003 - 2009: Deputy General Director of Ariyana - a
subsidiary of Sovico Holdings.
• January 2011 - December 2011: Director of Green Space
Real Estate Trading and Investment Ltd.
• January 2012 - December 2013: East Region Real Estate
Trading and Investment Co., Ltd.
• 2013 - July 2015: Chairman of BOD of Nhat Vuong Trade
and Exim Service Co., Ltd.
• July 2015 - September 15th 2016: Deputy General
Director of Khang Dien House Trading and Investment
Joint Stock Company.
Deputy General Director
Year of birth: 1978
Qualifi cation: Bachelor Degree in Accounting
Deputy General Director
(Resigned on: September 15th 2016)
Year of birth: 1972
Qualifi cation: Master Degree in Project Management
and Master Degree in Business Administration
Ms. NGO THI MAI CHI Mr. NGUYEN DUC TRONG
GENERAL DIRECTOR TEAM
Experience: In the role of Chairman
of BOD cum General Director, Mr.
Ly Dien Son has directly managed
and operated the Company since its
establishment date. Over the past 16
years, with passion, dedication, and
experience, he has led the Company
to overcome challenges and achieved
breakthrough success, developing
Khang Dien to become one of the
leading real estate developers in
HCMC.
Working history:
• From 2001 - present: Chairman
of BOD cum General Director of
Khang Dien House Trading and
Investment Joint Stock Company.
Positions in other organizations:
None.
General Director
Year of birth: 1966
Qualifi cation: Bachelor Degree from
the University of Culture
Experience: One of the strong
points of Khang Dien in comparison
with the other real estate companies
is its practice of transparent legal
framework, and Mrs. Trang lays the
foundation of this practice.
Working history:
• 2001 - 2005: Legal consultant -
Nguyen Thi Chinh Law Offi ce.
• Oct 2005 - July 2007: Administration
Manager - Member of BOD of
Khang Dien House Trading and
Investment Joint Stock Company.
• July 2007 - May 2008: Assistant
to Chairman of BOD Khang Dien
House Trading and Investment
Joint Stock Company.
• June 2008 - present: Deputy
General Director of Khang Dien
House Trading and Investment
Joint Stock Company.
Positions in other organizations:
None.
Experience: Mr. Bao is responsible
for the overall corporate legal matters.
He coordinates with the departments
to build internal process, procedures,
regulations to ensure Company’s
compliance with the charter and the
laws.
Working history:
• January 2000 - July 2002: Deputy
Director of Lai Gia Trading - Service
Co., Ltd.
• February 2004 - March 2006:
Associated Lawyer at Thanh Dat Law
Offi ce.
• March 2006 - August 2007: Deputy
Director at Son Tung Real Estate
Trading - Service Co., Ltd.
• September 2007 - September
2009: Assistant to General Director
of Khang Dien House Trading and
Investment Joint Stock Company.
• October 2009 - present: Deputy
General Director of Khang Dien
House Trading and Investment Joint
Stock Company.
Positions in other organizations:
• Chairman of BOD of Binh Chanh
Construction Group Investment JSC.
Deputy General Director
Year of birth: 1976
Qualifi cation: Bachelor Degree in
Laws, Land Management Engineer
Deputy General Director
Year of birth: 1975
Qualifi cation: Bachelor Degree in
Laws - Certifi ed Lawyer
54 55ANNUAL REPORT 2016 GENERAL INFORMATION
Experience: Ms. Linh has more than 15 years of experience
in accounting and auditing. She used to work as a Senior
Auditor of Accounting and Consulting Co., Ltd. (A&C) and
Chief Accountant at Air Energy Vietnam and Avon Vietnam. At
present, she is the Deputy Investment Director of VinaCapital.
In 2014, as the Chief of Inspection Committee, Ms. Linh
coordinated with the members of Inspection Committee
to check and evaluate business performance and supervise
operating activities to ensure the Company’s compliance with
the law.
Working history:
• 1996 - 2001: Senior Auditor at A&C
• 2001 - 2003: General Accountant at New Toyo Tissue Paper
Mill (Vietnam)
• 2003 - 2004: Chief Accountant of Air Energy Vietnam
• 2004 - 2006: Chief Accountant of Avon Cosmetic Vietnam
• 2006 - 2014: Investment Manager of VinaCapital Corporate
Finance Vietnam
• 2014 - present: Deputy Investment Director of VinaCapital
Corporate Finance Vietnam
Positions in other organizations:
• Member of BOD of Thang Loi Textile and Garment JSC
• Member of BOD of Saigon Golf
• Member of Inspection Committee of HUD.VN Social
Housing Development JSC
• Member of Inspection Committee of Hung Vuong JSC
Experience: Mr. Hoang Manh Phong graduated from
Hochiminh City University of Technology (Major in
Construction) and holds a Bachelor Degree in Economics.
He has worked for large companies in the fi eld of real estate.
Together with other members of Inspection Committee,
Mr. Phong has valuable contributions to the improvement
of the Company’s internal control.
Working history:
• 2009 - 2012: Deputy Director cum Project Manager of
Saigon Khang Dien Company
• 2012 - 2014: Project Manager of East Region Real Estate
Trading and Investment Co., Ltd.
• 2014 - Present: Head of Project Management
Committee of Hao Khang Co., Ltd.
Positions in other organizations: None.
Experience: Mr. Dao Cong Dat has many years of
experience in human resource management and
development. He has positive contribution to the
Company’s human resource development.
Working history:
• 2007 - 2009: HR Offi cer at Nguyen Kim Trading JSC
• 2009 - present: HR Manager of Khang Dien House
Trading and Investment Joint Stock Company
Positions in other organizations: None.
Head of Inspection Committee
Year of birth: 1974
Qualifi cation:
Bachelor Degree in Economics, Bachelor Degree in Laws, and Master Degree in Business Administration
Member of Inspection Committee
Year of birth: 1969
Qualifi cation:
Bachelor Degree in Economics, Construction Engineer
Member of Inspection Committee
Year of birth: 1980
Qualifi cation:
Bachelor Degree in Laws
Ms. VUONG HOANG THAO LINH Mr. HOANG MANH PHONG Mr. DAO CONG DAT
INSPECTION COMMITTEE
56 57ANNUAL REPORT 2016 GENERAL INFORMATION
WITH THE ONGOING STRONG BUSINESS IN THE EAST OF THE CITY, TOGETHER WITH MARKET EXPANSION IN THE CITY’S SOUTHWEST AREA, KHANG DIEN HAS EXPANDED ITS SKILLFULL WORKFORCE IN ORDER TO MEET THE COMPANY’S FAST GROWING PACE.
Increasing by 150 employees compared to 2015, up 129%343 STAFF
AS OF DECEMBER 31ST 2016, KHANG DIEN EMPLOYED
HUMAN RESOURCE MANAGEMENT REPORT
ORGANIZATIONAND HUMAN RESOURCES
Male: 215 person
Female: 128 person
37%
63%
KDH
PERSONNEL STRUCTURE BY GENDER
16%
22%62%KDH
Offi ce: 211 persons
Project: 77 persons
Sales - Marketing: 55 persons
PERSONNEL STRUCTURE BY FUNCTION
Senior management: 11 persons
Middle management: 37 persons
Junior management: 38 persons
Staff : 257 persons
75%
11%
11%3%
KDH
PERSONNEL STRUCTURE BY POSITION
PERSONNEL STRUCTURE BY AGE
Over 30 years of age: 249 persons
Under 30 years of age: 94 persons
27%
73%
KDH
University and Post-graduate: 325 persons
Others: 18 persons
PERSONNEL STRUCTURE BY QUALIFICATIONS
KDH
95%
5%
58 59ANNUAL REPORT 2016 GENERAL INFORMATION
in the East and South of HCMC helps Khang
Dien expand land bank of full property
rights, diversify products and become one
of the largest real estate companies in Ho
Chi Minh City.
HECTARES
CLEAN LAND AT PRIME LOCATIONS
BUSINESS PERFORMANCE 2016
• New regulations were issued and implemented to
promote market transparency in order to protect
the benefits of the homebuyers and boost their
confidence.
• Policy on real estate lendings was also carefully
implemented to create sustainability for the market.
The adjustment of State Bank’s Circular 36, which
reduced the ratio of short-term deposits to medium
and long term loans from 60% down to 50%, had
certain impacts on the ability to access real estate
credits, helping stabilize the market toward positive
development.
• Infrastructure development has also been an
effective catalyst for the market in recent years. By
2016, Saigon Bridge 2, Thu Thiem Bridge, Thu Thiem
Tunnel, and Vo Van Kiet Street were completed,
creating a completed transportation network in the
East of the city. Besides, the Ben Thanh - Suoi Tien
Metro Line was at the final stage of construction and
especially the commissioning of the Long Thanh - Dau
Giay Expressway showed the its value of shortening
commuting time from District 9 to the city CBD to
about 10 minutes.
• Homebuyers’ awareness changed in comparison
with the previous years – developer’s reputation,
construction progress, and transparency of
entitlement and property rights became the top
factors in home purchasing decisions.
These above positive factors will support the real estate
market’s sustainable growth in 2017.
THE REAL ESTATE MARKET IN 2016 ENJOYED POSITIVE DEVELOPMENTS DRIVEN BY SUPPORTIVE GOVERNMENT POLICIES AND WELL SYNCHRONIZED
INFRASTRUCTURE DEVELOPMENTS.
POSITIVE DEVELOPMENTS OF THE REAL ESTATE MARKETMACROECONOMIC STABILITY
The real estate market in 2016 saw some positive changes due to the State’s supporting policies and ongoing infrastructure
developments. To be specifi c:In 2016, Vietnam achieved a 6.21% growth in
GDP. Although the growth rate did not meet
the target set by the Government, it was
an outstanding fi gure among the frontier
market economies. Infl ation rate stabilized
at below 5% was the main driver in lowering
input costs, reducing prices, stimulating
consumption, and promoting economic
growth. Moreover, Vietnam’s ongoing
urbanization rate of 2.5% - the highest rate
among the countries in South East Asia -
and the fast rising middle-income class has
boosted demand for real estate and housing
products.
OVERVIEW OF THE REAL ESTATE MARKET IN 2016
62 63ANNUAL REPORT 2016 BUSINESS PERFORMANCE 2016
BOARD OF DIRECTORS ASSESSMENT OF BUSINESS PERFORMANCE
ASSESSMENT ON BUSINESS PERFORMANCE 2016In 2016, the Company achieved impressive growth in revenue and profi t.
Compared to the same period: Revenues in 2016 reached VND3,932 Billion, increasing by 274% and profi t after tax belong
to the parent company’s shareholders reached VND372 Billion, increasing by 47%. Although Khang Dien delayed launching
sales of The Merita project (131 townhouses originally planned for sales in Quarter III/2016) to time the market for better prices,
business performance was strong: More than 500 houses from Mega Village, Melosa Garden, Lucasta, The Venica were sold.
According to the plan the profi t after tax of VND400 Billion
target set for the year 2016 are from two sources: VND330
Billion from Khang Dien group of companies and VND70
Billion from BCCI group of companies.
The reason for not reaching the target is the under
performance of BCCI group of companies. In 2016, BCCI
group of companies delivered 25% of the net profi t target,
aff ecting Khang Dien consolidated income. Khang Dien
group of companies reached VND354 Billion net profi t after
tax, exceeding the target by VND24 Billion and corresponding
to 107% above the target. This good result was driven by
the sales from Melosa Garden, Mega Village, The Venica, and
Lucasta projects,...
However, profi t after tax
belong to the parent
company’s shareholders
was 93% of the target
approved by the General
Shareholders’ Meeting in
April 2016.
(Unit: VND Billion)
ITEMS 2014 2015 2016Compare 2016 to 2015
Change %
Revenues 621 1,050 3,932 2,882 274%
Profi t before tax 105 317 583 266 84%
Profi t after tax 63 268 405 137 51%
Profi t after tax belong to the Parent company’s
shareholders102 253 372 119 47%
Earnings per share - EPS (VND/share) 1,610 1,020 1,590 570 56%
(Unit: VND Billion)
ITEMS Plan 2016
Result 2016
Result vs. Plan
Differential Value
Percentage %
Revenues 1,500 3,932 2,432 262%
Profi t after tax belong to the Parent company’s shareholders, including:
400 372 (28) 93%
- Khang Dien group of companies 330 354 24 107%
- BCCI group of companies 70 18 (52) 25%
THE YEAR 2016 MARKS A MAJOR SUCCESS OF KHANG DIEN BUSINESS ACTIVITIES WITH OUTSTANDING BUSINESS RESULT COMPARED TO THE PREVIOUS YEARS. THIS SUCCESS IS A FIRM FOUNDATION FOR KHANG DIEN TO CONTINUE GROWING AND CATCHING OPPORTUNITIES TO DEVELOP FURTHER IN THE FUTURE.
3,932VND BILLIONREVENUES 2016 274% compared to 2015
BOARD OF DIRECTORSREPORT
64 65ANNUAL REPORT 2016 BUSINESS PERFORMANCE 2016
BOARD OF DIRECTORS ASSESSMENT OF GENERAL DIRECTOR TEAM PERFORMANCE
ACHIEVEMENTS
The Company successfully divested non-core assets, namely land in Long Truong
District 9 and some projects under BCCI, to raise capital for new allocation. Succeeded in rebalancing
investments
Operational effi ciency was signifi cantly improved. Products were sold out
quickly and cash collection cycle was shorten because Khang Dien handed over
the houses ahead of schedule. Although Merita project did not contribute to
2016 profi t, the outstanding business result was driven by key projects such as
Mega Village, Lucasta, The Venica, and especially Melosa Garden.
Net profi t from Khang Dien
group of companies (excluding
BCCI) exceeded the target
LIMITATIONS
Despite certain limitations, the year 2016 marked a major success of Khang Dien business activities with outstanding business
result compared to the previous years. This success is a fi rm foundation for Khang Dien to continue growing and catching new
opportunities to develop further in the coming years.
On December 3rd 2015 Khang Dien completed the acquisition of 57.3% of
Binh Chanh Construction & Investment Shareholding Company (BCCI). This is a
strategic investment of Khang Dien to develop land band in the South of HCMC,
near the key traffi c network connecting to the provinces in the West of Vietnam.
During 2016, Khang Dien restructured BCCI’s top Management Team, reviewed
the projects to form an eff ective development policy, collected receivables
and built up a better customer care policy. The restructuring was step-by-step
conducted; therefore, it would take a certain period of time for the new structure
to show its effi ciency. As a result, in the fi rst year of restructuring, BCCI only
delivered 25% of the profi t target. However, better performance and results are
expected in the coming years.
BCCI not yet delivered good
outcome as expected
Internal audit was not the focust because all the Company’s activities were
directly, permanently supervised by the General Director Team. However, in the
coming time, the Company will enhance internal audit to strengthen corporate
governance and risk management.
Internal audit
Taking advantage of the favorable capital market condition supporting chartered
capital increase, Khang Dien successfully issued 53,999,892 bonus shares, increasing
the chartered capital to VND2,339,998,920,000 and showing the Company’s strong
fi nancial position. Besides, the loans from credit institutions during the year was
deployed to fi nance the ongoing development of the projects having good sales
progress such as Mega Village, Melosa Garden, Lucasta, The Venica. The loan amount
and the payment terms were balanced against the cash receipt from the projects,
thus enhance capital effi ciency and ensure healthy capital structure.
Maintained healthy capital
structure
BOARD OF DIRECTORS HIGHLY
APPRECIATES THE EFFORTS OF THE GENERAL DIRECTOR
TEAM IN IMPLEMENTING THE BUSINESS PLAN AS SET OUT. DURING 2016,
THE GENERAL DIRECTOR TEAM FULFILLED ITS DUTIES
CAREFULLY AND WITH INTEGRITY, COMPLYING
WITH THE RESOLUTIONS OF THE SHAREHOLDERS’
MEETING AND THE BOARD OF DIRECTORS AND
MET THE NEED OF THE COMPANY’S BUSINESS
SITUATIONS.
SUPERVISION METHOD
SUPERVISION RESULTS
• Regularly reviewing and assessing the implementations of major plans
committed by General Director Team.
• Board of Directors fully participated in the regular meetings held by General
Director in order to timely give direct instructions for important issues.
• Coordinating with the Inspection Committee to comprehend the Company’s
activities and give practical suggestions to support General Director Team to
complete their duties.
• Board of Directors well conducted their supervision function to ensure
General Director Team deliver the outcome in accordance with the goals,
orientation and plan as set out, and ensure compliance with the Company
Charter and the regulations.
• Board of Directors highly appreciated the eff orts of General Director Team in
implementing the business plan. Upon the execution, General Director Team
fulfi lled their duties carefully and honestly, complying with the resolutions
of Shareholders’ Meeting and the Board of Directors as well as meeting the
Company’s business demand.
BOARD OF DIRECTORS REPORT (continued)
66 67ANNUAL REPORT 2016 BUSINESS PERFORMANCE 2016
BOARD OF DIRECTORS DIRECTION AND PLAN
BOARD OF DIRECTORS DETERMINES THAT THE COMPANY’S BUSINESS MUST BE BUILT ON CUSTOMER TRUST. WITH THE ADVANTAGES IN STRONG LEGAL FRAMEWORK AND GOOD LAND BANK IN PRIME LOCATIONS, THE COMPANY CONFIRMS ITS MISSION OF DELIVERING TO THE CUSTOMERS PROJECTS WITH TRANSPARENT LEGAL FRAMEWORK, REASONABLE PRICE, AND QUALITY LIVING SPACE.
TO BE SPECIFIC:
CREATION OF PERFECT PRODUCTSNot just selling houses with exterior fi nish, Khang Dien
will create products with interior fi nish and ready property
titles. They are the “turnkey” products for homebuyers.
DEVELOP HUMAN RESOURCESTraining high-quality and dedicated employees to create
best products that are the true homes for every customer.
NEW LOCATIONS
Not only Khang Dien’s projects are located in the East of the
city (in District 2 and 9), but also the Company will expand
to the South such as in Binh Tan and Binh Chanh District
(BCCI’s projects) and other good locations.
EXPAND LAND BANKBesides the existing land bank of Khang Dien and more
than 500 hectares of BCCI, the Company will expand land
bank through business partnerships and joint ventures
with local and overseas partners.
SEGMENT DIVERSIFICATION
At present, the Company is focusing on many segments
from middle-class to high-class. For examples, the Mega
product line has the average sales price of VND2 Billion
to VND3 Billion per unit, Lucasta middle-class villas with
the price from VND7 Billion/unit and The Venica high-
class project with the price from VND15 Billion/unit. In the
coming time, Khang Dien will expand to the segment for
average good income homebuyers with the apartments
from VND1 Billion/unit.
FINANCIAL CAPACITY ENHANCEMENTThoroughly taking advantages of available sources of
capital together with quickly mobilization of capital at
relatively lower cost.
PRODUCT DIVERSIFICATION
Besides the key products - gardened townhouse of the
Mega product line and villas from middle to high class such
as Lucasta and The Venica - the Company is developing
high-rise apartments to satisfy demands of more customers.
To be specifi c, the latest project expected to open for sales
in Quarter II/2017 is an apartment project at Do Xuan Hop
Exit of the Long Thanh - Dau Giay Expressway, Phu Huu
Ward, District 9 with nearly 900 apartments.
COST CONTROLThe Company will focus on improving cost control
and saving during the development of quality houses,
thus enabling reasonable sales price suitable to more
customers.
WITH THE MOTTO OF CUSTOMER CENTRIC IN EVERY ACTIVITY, BOARD OF DIRECTORS IS CONFIDENT IN BUILDING THE COMPANY TO BECOME A LEADING REAL ESTATE DEVELOPER, MAXIMIZING BENEFITS AND VALUES FOR THE SHAREHOLDERS.
BOARD OF DIRECTORS REPORT (continued)
68 69ANNUAL REPORT 2016 BUSINESS PERFORMANCE 2016
INSPECTION ACTIVITIES
Inspection Committee carries out its functions and duties
in accordance with the laws, the Company Charter and
internal regulations. In 2016, the Inspection Committee
conducted the following operations: supervising the
activities of Board of Directors and General Director Team,
monitoring business operation and fi nancial situation of
the Company. Accordingly, the Inspection Committee
performed the following tasks:
• Supervised the implementation of the Shareholders’
Meeting resolutions in 2016 on dividend distribution,
chartered capital increase by issuing bonus shares to
existing shareholders, expanding the Company’s real
estate business scope (to include pre-school education,
primary education, related architectural activities and
technical consultancy).
• Coordinated with the independent auditor to audit the
Company’s 6-month and year-end fi nancial statements in
order to evaluate the authenticity and fairness of fi nancial
data in compliance with the prevailing Vietnamese
accounting regulation.
• Verifi ed the compliance with the Company’s internal
regulations and proposed modifi cations for some
regulations and procedures.
• Coordinated with functional departments of the Company
to supervise the activities of affi liates (subsidiaries) in order
to enhance the Company management of these affi liates.
• Monitored information disclosure in compliance with the
laws and ensured transparency in information disclosure
to protect the interest of the shareholders.
COMMENTS AND PROPOSALS OF INSPECTION COMMITTEE• Perfecting internal control system, enhancing the roles of
internal control department in fi nancial management and
supervising the compliance and implementation of the
Company’s procedures and regulations.
• Strengthening capital base and liquidity, and managing
invested capital deployed in projects.
• The Company needed to pay more attention to project
development to improve competitive advantages in the
market.
In 2016, the real estate market showed good recovery but
Vietnam’s economy still faced diffi culties. Board of Directors
and General Director Team needed to come up with solutions
to maintain the Company’s growth in the coming years.
• Applying procedures to closely control construction and
management cost, and promote sales to increase profi t.
• Having policy to motivate, utilize and develop human
resources.
• Directing sales activities and modifying sales policy to suit
the requirements and objectives of each stage.
OPERATIONAL DIRECTION FOR INSPECTION COMMITTEE IN 2017• Implementing regular and irregular inspections as
requested by the shareholders.
• Reviewing the reasonableness and legality of the
Company’s business operation.
• Continuing to refi ne procedures to improve the effi ciency
of Inspection Committee.
• Coordinating with Board of Directors and General Director
Team in improving and enhancing internal control
effi ciency.
• Continuing reviewing and proposing solutions for issues
in the Company’s procedures, regulations and operations.
In 2017, Inspection Committee will continue its duties of
inspecting in accordance with the functions and tasks of
Inspection Committee as regulated by the Laws and the
Company’s Charter.
• Inspecting Board of Directors and General Director Team in
accordance with the resolutions of General Shareholder’s
Meeting and BOD, the Company’s Charter and internal
regulations.
• Reviewing quarterly and annually fi nancial statements
before disclosure and coordinating with the independent
auditor to audit fi nancial statements.
• The Company fully complied with the Laws and the
Company Charter in daily management.
• Board of Directors well performed its duties and rights
in planning development direction and strategy for
the Company. In 2016, Board of Directors issued many
resolutions and decisions related to the Company
activities. Board of Directors’ decisions were made in
accordance with the process and procedure and in
compliance with the resolutions of the Shareholder s’
Meetings.
• Members of BOD and General Director Team and the
other managers performed their functions and tasks
in line with the Laws, the Company Charter, and the
resolutions of the Shareholders’ Meeting.
• The Company’s operating procedures were in
compliance with the requirements of the internal
administration system. Problems were promptly
detected, suggestions and solutions were given out
timely.
• The Company disclosed information and issued reports
according to the Laws.
• Inspection Committee agreed with Board of Directors
Report, Audited Financial Statements 2016, which would
be submitted to the General Shareholders’ Meeting 2017.
RESULTS OF INSPECTION OF THE BOARD OF DIRECTORS AND THE GENERAL DIRECTOR TEAM
In 2016, Board of Directors and General Director Team
facilitated Inspection Committee in full information
disclosure about the Company’s business operation and
fi nancial position.
Inspection Committee participated in Board of Directors’
meetings and gave opinions within the scope of its
functions and duties.
Inspection Committee, Board of Directors and General
Director Team coordinated to timely address issues during
the course of inspection.
COORDINATION BETWEEN INSPECTION COMMITTEE, BOARD OF DIRECTORS, AND GENERAL DIRECTOR TEAM
Inspection Committee reviewed
six-month and full year fi nancial
statements for 2016 and agreed
with the performance items on the
fi nancial statements. The statements
suffi ciently and clearly presented
and truly refl ected the Company’s
fi nancial position.
RESULTS OF INSPECTION OF THE COMPANY’S OPERATION AND FINANCE Some major fi nancial indicators:
INDICATORS 2015 2016
LIQUIDITY
Short-term liquidity ratio 7.4 5.7
Fast liquidity ratio 1.7 2.1
CAPITAL STRUCTURE
Debt ratio/Total asset 51% 45%
Debt ratio/Owners’ equity 134% 102%
ACTIVITY RATIO
Inventory turnover 0.1 0.6
Account receivable turnover 1.6 2.6
Net revenue/Total asset 0.1 0.5
PROFITABILITY
ROS 26% 10%
ROA 3% 5%
ROE 8% 12%
INSPECTION COMMITTEE REPORT
70 71ANNUAL REPORT 2016 BUSINESS PERFORMANCE 2016
ITEMS 2014 2015 2016Compare 2016 to 2015
Change %
Revenues 621 1,050 3,932 2,882 274%
Profi t before tax 105 317 583 266 84%
Profi t after tax 63 268 405 137 51%
Profi t after tax belong to the Parent company’s
shareholders102 253 372 119 47%
Earnings per share - EPS (VND/share) 1,610 1,020 1,590 570 56%
ASSESSMENT ON BUSINESS PERFORMANCE
REVENUE AND PROFIT
500
1,000
1,500
2,000
2,500
3,000
3,500
4,000
2016
1,050
3,932
2014
621
2015
50
100
150
200
250
300
350
400
2016
253
372
2014
102
2015
Total Revenues (VND Billion)
Profit after tax belong to the Parent company’s shareholders (VND Billion)
Mega Village: 9%BCCI: 27%
Others: 1%
Long Truongprojects: 11%
Melosa: 30%
Lucasta: 11%The Venica: 11%
KDH
Total revenue in 2016
PROJECTS Revenue in 2016 Proportion
Mega Village 346 9%
Melosa 1,198 30%
Lucasta 418 11%
The Venica 426 11%
Long Truong projects 429 11%
Others 51 1%
From BCCI 1,064 27%
TOTAL 3,932 100%
1,064VND BILLION
REVENUES
CONTINUING THE DEVELOPMENT IN 2015, KHANG DIEN ACHIEVED OUTSTANDING GROWTH
IN 2016 WITH TOTAL REVENUES OF VND3,932
BILLION, INCREASING NEARLY 3 TIMES COMPARED
TO 2015.
The outstanding growth was from:
• Sales performance from the projects developed under Khang Dien group of
companies - Mega Village, Melosa Garden, Lucasta, and The Venica - was very
positive, resulting in VND2,388 Billion in revenue, contributing 61% to total
revenues.
• Transfer of projects in Long Truong - Villa Long Truong, Long Phuoc Dien Long
Truong, and Khang Dien Long Truong - delivered VND429 Billion in revenue,
contributing 11% to total revenues. The transfer of these projects was not a
part of the 2016 business plan but under the medium-term and long-term
strategy of Khang Dien in the eff ective restructuring of the existing projects.
• Total revenues consolidated from BCCI group companies was VDN1,064
Billion, a large diff erence compared to 2015. Reasons: BCCI became a
subsidiary of Khang Dien in Quarter IV/2015 (when Khang Dien completed the
purchase of 57.31% of charter capital of BCCI). Therefore, the BCCI’s revenue
consolidated into Khang Dien in 2015 was not full year and corresponding
to the consolidate time period (to be specifi c, the revenue consolidated to
Khang Dien was VND152.7 Billion in the total revenues of VND462.9 Billion of
BCCI).
Revenues recognized from: Mega Village, Melosa Garden, Lucasta,
The Venica
2,388VND BILLION
Revenue structure in 2016
Transfer of projects in Long Truong
429VND BILLION
GENERAL DIRECTOR TEAM REPORT
Total revenues from BCCI group companies
(Unit: VND Billion)
(Unit: VND Billion)
372VND BILLION
PROFIT AFTER TAX BELONG TO THE PARENT COMPANY’S SHAREHOLDERS 47% Compared to 2015
72 73ANNUAL REPORT 2016 BUSINESS PERFORMANCE 2016
PROFIT AFTER TAX BELONG TO THE PARENT COMPANY’S
SHAREHOLDERS WAS VND372 BILLION. ALTHOUGH
REACHING 93% OF THE TARGET APPROVED BY 2016 GENERAL SHAREHOLDERS’
MEETING, THE PROFIT AFTER TAX IN 2016 GREW
BY 47% COMPARED TO THE SAME PERIOD.
According to plan, profi t after tax of Khang Dien in 2016
was set at VND400 Billion, including:
• VND70 Billion consolidated from BCCI group of
companies: According to BCCI’s business plan in 2016
approved by General Shareholders’ Meeting in April
2016, the planned profi t of the group was VND120
Billion. However, the group earned only VND30.7
Billion profi t in 2016, or 25% of the plan, leading to
VND18 Billion profi t attributed to Khang Dien at the
rate of 57.3% ownership of BCCI. This has aff ected the
consolidated business result of Khang Dien.
• VND330 Billion was set for Khang Dien group of
companies. The result was VND354 Billion of profi t
after taxes, exceeding the target by VND24 Billion,
equivalent to 7.3% of the target. This earnings were
from the projects Mega Village, Melosa Garden, The
Venica, and Lucasta in 2016. Detailed were as follows:
» Mega Village: By year-end 2016, cumulative 320/335
units sold, equivalent to 96% closing rate of the
whole project.
» Melosa Garden: Until the end of 2016, cumulative
456/567 units sold, equivalent to 80% closing rate of
the whole project.
» Lucasta: Until the end of 2016, cumulative 98/140
units sold, equivalent to 70% closing rate of the
whole project.
» The Venica: Until the end of 2016, cumulative 24/43
units sold, equivalent to 56% closing rate of the
whole project.
• Khang Dien successfully acquired 57.3% of BCCI in
December 2015. Until January 2016, Khang Dien
had started restructured BCCI to better suit the
market conditions and in consistency with the overall
business strategy driven by Khang Dien’s BOD. With the
participation of Khang Dien in BCCI’s BOD and General
Director Team, in 2016, BCCI made a series of changes:
rearranging personnel, restructuring project portfolio,
(liquidating ineffi cient projects, speeding up ongoing
projects), and settling outstanding legal issues.
• The restructuring aff ected the 2016 business plan of
BCCI. Ineff ective projects including Western Dragon and
510 Kinh Duong Vuong were transferred. The transfers
of these projects were not included in BCCI’s business
plan in 2016. Thus, BCCI’s profi t after tax in 2016 reached
VND30.7 Billion, equivalent to 25% of the initial plan was
VND120 Billion (Khang Dien’s consolidated profi t after
tax was VND18 Billion, equivalent in owned ratio of the
legal capital of BCCI was 57.3%)
It can be said that 2016 was a transitional year for BCCI
when its operating model was gradually adjusted to
best suit the operational model of Khang Dien, the
Parent company. Although BCCI does not meet the 2016
business target, Management of Khang Dien believes
that the restructuring in 2016 will make a positive impact
to help the business results of BCCI be better in 2017
onwards.
REASONS FOR NOT MEETING 2016 BUSINESS TARGETS
• In 2016, cost of goods sold
(COGS) was 75% of revenues,
increasing by 7% compared
to 2015, mainly driven by BCCI
group of companies. Reason: To
ensure effi cient restructure, the
group transferred some non-
core apartment projects such
as Western Dragon Apartment
and 510 Kinh Duong Vuong at
relatively low profi t. The ratio of
COGS over revenues temporarily
increased during the restructuring
period and would ease back to the
effi cient level in the coming time.
with strategic locations and effi ciency and, therefore,
minimizing loan interest expense.
• Selling expenses and administrative overheads were
reduced, accounting for 2 - 4% of revenues. This
cost saving resulted from improvement in corporate
management effi ciency and eff ective sales policies.
• The ratio of interest expense over revenues decreased
nearly 1%, which was a positive result when the
operational scale expanded but debt did not increase
accordingly. Instead of taking on more debts, the
Company eff ectively managed cash fl ow - matching
sales and debt service cash fl ows - and proactively
transfered ineff ective projects to focus on projects
COSTS AND EXPENSES
ITEMS(Proportion of Cost to Revenues)
2014 2015 2016 Compare 2016 to 2015
Cost of goods sold 85% 68% 75% +7%
Interest 6% 1% 0,2% 0%
Selling expenses 4% 6% 4% -2%
Administrative overheads 6% 7% 3% -4%
The Company’s 2016 earnings growth
not only due to the good sales but
also to the positive contribution from
the eff ective cost control.
PROFIT
Profi t after tax belong to the Parent company’s shareholders was VND372 Billion. Although reaching 93% of the target
approved by 2016 General Shareholders’ Meeting, the profi t after tax in 2016 grew by 47% compared to the same period.
(Unit: VND billion)
ITEMS Plan 2016 Result 2016Result vs. Plan
Differential Value
Percentage %
Revenues 1,500 3,932 2,432 262%
Profi t after tax belong to the Parent company shareholders, including: 400 372 (28) 93%
Khang Dien group of companies 330 354 24 107%
BCCI group of companies 70 18 (52) 25%
GENERAL DIRECTOR TEAM REPORT (continued)
74 75ANNUAL REPORT 2016 BUSINESS PERFORMANCE 2016
ASSETS
FINANCIAL SITUATION
Revenues and Profi t in 2016 grew strongly compared to 2015, but there was no corresponding increase in total assets. For
2016 year-end, total assets of Khang Dien worth VND7,937 Billion, a slight decrease of 7% compared to 2015, equivalent to
VND605 Billion. Reason: Decrease in inventories due to quick sales and liquidation of some ineffi cient projects to reduce
debts. Detailed fl uctuations of assets are as follows:
• The items with high proportion such as Cash and cash equivalents, accounts receivable, and inventories accounted for
a major proportion of total assets in 2016. To be specifi c, the proportions of these items were 13%, 19% and 58% of total
assets (the total proportion of these three items accounted for 90% of total assets). The structure was appropriate for real
estate development and demonstrated safety in development for Khang Dien in the future.
• Although occupying a high proportion in total assets, up to 58%, the proportion of inventories has decreased by 11%
compared to 2015. The proportion of accounts receivable rose 11% compared to 2015, which was reasonable given the
growth in sales.
Total assets of the Company in 2016 decreased by 7% due to reduction in inventories. In 2016, the value of inventories fell
to VND4,618 Billion, decreasing by VND1,247 Billion, equivalent to 21%, compared to the same period.
1,00010
2,00020
3,00030
4,000
40
5,000
50
6,000
60
7,000
70
8,000
80
9,000
100
90
2016
8,5427,937
2014
3,121
2015
Total Assets(VND Billion)
Asset structure (%)Cash and cash equivalentsReceivables Long-term assetsInventories Others
Asset structure changes (Unit: VND Billion)
ITEMS 2014 Proportion 2015 Proportion 2016 Proportion
Cash and cash equivalents 435 14% 983 11% 1,059 13%
Receivables 537 17% 654 8% 1,485 19%
Inventories 2,075 67% 5,865 69% 4,618 58%
Long-term assets 37 1% 907 11% 696 9%
Others 37 1% 133 1% 79 1%
TOTAL ASSETS 3,121 100% 8,542 100% 7,937 100%
Asset value changes (Unit: VND Billion)
ITEMS 2014 2015 2016Compare 2016 to 2015
Differential Value %
Cash and cash equivalents 435 983 1,059 76 8%
Receivables 537 654 1,485 831 127%
Inventories 2,075 5,865 4,618 (1,247) -21%
Long-term assets 37 907 696 (211) -23%
Others 37 133 79 (54) -41%
TOTAL ASSETS 3,121 8,542 7,937 (605) -7%
Inventories changes (Unit: VND Billion)
No. PROJECT NAME 2014 2015 2016 Compare 2016 to 2015
1 Melosa 663 931 437 (494)
2 Lucasta - 645 462 (183)
3 Mega Village 296 188 85 (103)
4 The Venica 133 258 228 (30)
5 Merita - 135 313 178
6 Khang Dien Long Truong 229 255 10 (245)
7 High-rise townhouses - 215 235 20
8 Low-rise townhouses 161 172 220 48
9 Sapphire 131 160 173 13
10 Gia Phuoc 74 86 122 36
11 Long Phuoc Dien Long Truong 84 84 2 (82)
12 Villa Long Truong 63 63 10 (53)
13 Binh Trung Dong - 246 264 18
14 Kim Phat - - 183 183
15 BCCI’s projects - 2,205 1,712 (493)
16 Other projects 242 222 162 (60)
TOTAL 2,075 5,865 4,618 (1,247)
GENERAL DIRECTOR TEAM REPORT (continued)
2014
14%
17%
67%
1%1%
2015
11%
8%
69%
11%1%
2016
13%
19%
58%
9%1%
76 77ANNUAL REPORT 2016 BUSINESS PERFORMANCE 2016
Fluctuations in value (Unit: VND Billion)
ITEMS 2014 2015 2016Compare 2016 to 2015
Change %
Current liabilities 482 1,037 1,272 235 23%
Long-term liabilities 1,102 3,333 2,267 (1,066) -32%
Owners’ equity 1,499 3,257 3,477 220 7%
Interest of minority shareholders 38 915 921 6 1%
TOTAL ASSETS 3,121 8,542 7,937 (605) -7%
The projects with strong decreases in inventories:
Besides focusing on sales, collecting receivables and restructuring ineffi cient projects, Khang Dien has continued
developing new projects to be launched in 2017 such as Merita (inventory increased by VND178 Billion) and Kim Phat
(inventory increased by VND183 Billion).
1. Inventories of Melosa Garden, Lucasta, Mega Village, and
The Venica decreased more than VND800 Billion in total.
These projects sales went very well in 2016 with more
than 500 units sold, making signifi cant contribution to
total revenues.
2. Inventories of Khang Dien Long Truong, Long Phuoc
Dien Long Truong and Villa Long Truong decreased
nearly VND380 billion. The Company has transferred
these projects to restructure portfolio.
3. Inventories of BCCI’s projects decreased nearly VND493
Billion due to the transfer of ineffi cient projects such as
Western Dragon and 510 Kinh Duong Vuong to focus
capital for the other projects having strategic locations
and effi ciency.
CAPITAL STRUCTURE
CAPITAL STRUCTURE CHANGED ALONG WITH THE CHANGES IN TOTAL ASSETS, WITH DEBT REDUCTION AND SHAREHOLDER EQUITY INCREASE.
Fluctuation in structure: Long-term debts decreased over VND1,000 Billion,
equivalent to 32% decrease compared to the same period last year. Short-term
debts and Shareholder equity increased slightly. Capital structure changed
positively with increase in the proportion of shareholder equity (from 38%
up to 44% of total capital) and 11% decrease in the proportion of long-term
debts compared to the same period, corresponding to the 11% decrease in the
proportion of inventories.
(Unit: VND Billion)
ITEMS 2014 Proportion 2015 Proportion 2016 Proportion
Current liabilities 482 15% 1,037 12% 1,272 16%
Long-term liabilities 1,102 35% 3,333 39% 2,267 28%
Owners’ equity 1,499 48% 3,257 38% 3,477 44%
Interests of minority shareholders 38 2% 915 11% 921 12%
TOTAL EQUITY 3,121 100% 8,542 100% 7,937 100%
GENERAL DIRECTOR TEAM REPORT (continued)
1020304050607080
10090
2014
15%
35%
48%
2%
2015
12%
39%
38%
11%
2016
16%
28%
44%
12%
Capital structure (%)
Current liabilitiesLong-term liabilitiesOwner’s equityInterests of minority shareholders
78 79ANNUAL REPORT 2016 BUSINESS PERFORMANCE 2016
Return on Sales (ROS) sharply decreased from 26% to 10% because as part of restructuring BCCI and rebalance land
portfolio, Khang Dien sold some ineff ective projects (especially BCCI’s projects) with little profi ts and focus capital for the
more eff ective projects. In 2016, however, the profi tability ratios of Melosa Garden, Lucasta, Mega Village and The Venica
were higher than 2015 (minimum 26% in 2016). Therefore, in general, the decrease of ROS in 2016 was temporary, and it
would recover soon as the restructuring of BCCI is fi nished.
For 2016 short-term debts increased by VND235 Billion, equivalent to 23%
increase compared to the same period last year, mainly due to the increases
in advance payments from customers and tax liability and obligations to the
Stage Budget. The change was reasonable given the large growth in sales in
2016. The advance payments from customers will decrease over time when sales
become eligible to be recorded as revenue. The taxes and obligations to the
Stage Budget will also decrease when they are paid in line with the regulations.
Short-term debts
These were loans mainly for land and project developments. In 2016, long-term
debts decreased more than VND1,000 Billion, a positive change, showing that the
Company had good cash infl ow during the year. The cash fl ows from sales and
project transfer were used to reduce debts. To be specifi c:
• Khang Dien bought back more than 90% of VND900 Billion of the corporate
bond issued at the end of 2015 to fi nance the development of Melosa project.
By the end of 2016, the outstanding bond value was VND95 Billion (the total
amount of bond bought back in 2016 was VND805 Billion).
• The debts fi nancing Lucasta, Mega Village and The Venica also decreased.
In particular, Lucasta’s debts were reduced by VND240 Billion (from VND417
Billion at the end of 2015 down to VND175 Billion at the end of 2016) and the
VND250 Billion debts on Mega Village and The Venica were settled in 2016.
• The debts fi nancing Khang Dien Long Truong, Long Phuoc Dien Long Truong,
and Villa Long Truong were also settled when transfer procedure of these
projects was completed.
Long-term debts
Long-term debts decreased more than
1,000VND BILLION
SHAREHOLDER EQUITYAt the end of 2016 increased
from 38% up to 44% of total capital
3,477VND BILLION
At the end of 2016, the shareholder equity of the Company reached VND3,477
Billion, an increase of VND220 Billion, equivalent to 7%, compared to 2015. This
increase came from the retained earnings. Although the value of shareholder
equity increased slightly, the proportion of shareholder equity increased from
38% up to 44% as shareholder equity became the main source of capital. This
shows that the Company working toward capital independence, reducing the
dependence on external debts, reducing interest expenses, improving capital
effi ciency and ensuring safety for capital structure.
Shareholder equity
Financial ratios in 2016 were
signifi cantly improved compared to
the same period. In particular:
• Quick ratio increased from 1.7 to 2.1
times, showing that the liquidity of
the Company was improving.
• Debt over assets ratio decreased
signifi cantly from 51% to 45%,
showing the Company’s high
level of control of capital, not
dependent on external debts.
• Turnover ratios increased by 0.4 to
1.0 time, showing the effi ciency in
the Company’s asset uses.
• Return on Equity (ROE) and Return
on Assets (ROA) remained relatively
low at 12% and 5%, respectively
showed positive changes,
increasing by 2 - 4% compared to
last year.
INDICATORS 2014 2015 2016
LIQUIDITY
Short-term liquidity ratio 6.4 7.4 5.7
Fast liquidity ratio 2.1 1.7 2.1
CAPITAL STRUCTURE
Debt ratio/Total asset 51% 51% 45%
Debt Ratio/Owners’ equity 106% 134% 102%
ACTIVITY RATIO
Inventory turnover 0.3 0.1 0.6
Account receivable turnover 1.2 1.6 2.6
Net revenue/Total asset 0.2 0.1 0.5
PROFITABILITY
ROS 10% 26% 10%
ROA 2% 3% 5%
ROE 4% 8% 12%
FINANCIAL INDICATORS
THE YEAR 2016 MARKED A GREAT SUCCESS OF KHANG DIEN’S OPERATION IN DEVELOPING PROJECTS AND RESTRUCTURING BCCI. ALTHOUGH NOT REACHING THE PROFIT TARGET AS SET OUT, THE RESTRUCTURING AT BCCI WAS EXECUTED IN THE RIGHT STEPS AND WILL BRING GOOD RESULTS IN THE COMING TIME. THIS IS A FIRM FOUNDATION FOR KHANG DIEN TO SUSTAIN ITS DEVELOPMENT AND BECOME ONE OF THE LEADING REAL ESTATE COMPANIES, MAXIMIZING THE BENEFITS FOR THE SHAREHOLDERS.
GENERAL DIRECTOR TEAM REPORT (continued)
80 81ANNUAL REPORT 2016 BUSINESS PERFORMANCE 2016
IMPROVEMENTS IN ORGANIZATIONAL STRUCTURE, POLICY AND MANAGEMENT
To implement the 2016 business plan, Khang Dien determined that the improvements in organizational structure, policy,
and management were essential. Accordingly, the improvements were strongly promoted in 2016 as follows:
Determining that the leading duty of the Company is to off er the customers
perfect housing products having transparent legal framework, reasonable prices
and especially refi ned designs in an open living space, in 2016, the Company
strengthened the Architecture Division with high quality new hires. The
Architecture Division would help bring the most aesthetics to the fi nal products,
build living spaces friendly with nature, enhance living quality and create added
value to the customers.
The effi ciency of Architectural Division was tested through challenging projects
such as The Venica, Lucasta, and Melosa Garden, which won the “Best Housing
Development” Award 2016 of Asian Property Awards held by Ensign Media
to honor the best real estate projects, construction works, architecture and
designs across the country. The prize is for the best real estate projects based on
objective, fair, and transparent criteria in Asia.
ESTABLISHMENT OF ARCHITECTURAL DIVISION
Determining that project management unit is the key force in the Company’s
operation, in 2016 the Company focused on developing project management
personnel in quantity and quality, regularly reviewed and consolidated
organization toward centralized management to serve and support timely and
eff ectively decision making.
Workloads of the projects were arranged in a systematic way and distributed
promptly, personnel apparatus was rearranged simultaneously, staff was
assigned to each project to ensure execution on progress at high quality and
reasonable cost.
IMPROVEMENT OF PROJECT MANAGEMENT APPARATUS Recognizing the importance of human resources for the long-term development,
the Company has organized more training to improve professional skills through
internal training activities and instructions from direct management. To be
specifi c, the managers would quarterly evaluate the employee’s performance
and give constructive comments to help the employees improve and enhance
their professional qualifi cations.
In addition, the Company paid attention to improvement of multidisciplinary
knowledge for employees. The staff s of each department were encouraged to
participate in the projects and learn from each other. The tasks were allocated in
a scientifi c way to facilitate the employees to learn about other areas but at the
same time ensuring the progress of their work.
TRAIN AND DEVELOP HUMAN RESOURCES
Sales team is a department which is on behalf of the Company to express the
Company’s cares for the customers. Therefore, regular professional trainings
were held to improve the professionalism for Sales Team in their works:
• Consulting customers about product quality, project legality and interior design, etc.
• Guiding and assisting customers with simple procedures and preferential interest
rates at associated banks.
• Quickly resolving complaints and responding to inquiries from customers, fully
meeting the customer’s requirements in a timely manner.
• Tracking contract closing and customer liabilities until handing over ownership
certifi cate to customers.
In the future, the Company will continue consolidating and developing a more
advanced team of customer care to always create a fi rm belief in customers as
the Company’s motto “Khang Dien - Where you put your trust, where you make
you home”.
DEVELOPMENT OF SALES TEAM
Expanding collaboration network with professional real estate trading fl oors in
HCMC such as CBRE, Savils, Cengroup, Sunland, etc. to accelerate sales activities.
Intensifying fi nancial support programs to support sales. In 2016, in addition to
promotion discount at the interest rate of 18%/year for advanced payment, the
Company also worked with the large banks who off er preferential interest rates
to off er fi nancial support packages for several customer groups. These activities
shown Khang Dien’s supports in increasing the possibility of house ownership
for many customers.
Enhancing after-sales services: In 2016 Khang Dien regularly visit customers
in holidays and organized social activities to strengthen the bonding with the
communities living in the projects.
IMPROVEMENT OF SALES POLICY
GENERAL DIRECTOR TEAM REPORT (continued)
82 83ANNUAL REPORT 2016 BUSINESS PERFORMANCE 2016
BUSINESSPLAN FOR 2017
IN 2017 THE COMPANY WILL CONTINUE PROMOTING SALES, BUILDING NEW HOUSES AND HANDING OVER COMPLETED HOUSES OF MEGA VILLAGE, MELOSA, LUCASTA, AND THE VENICA. THE COMPANY WILL ALSO LAUNCH THREE NEW PROJECTS, MERITA, GIA PHUOC AND AN APARTMENT PROJECT IN PHU HUU WARD, DISTRICT 9.
Melosa Garden has scale of 17 hectares of land, adjacent to
Mega Village. The project was deployed in early 2015 with
567 villas and townhouses in a compound with high-class
utilities and amenities. The project was offi cially opened
for sale in November 2015. Until December 31st 2016, 456
units have been sold.
The Company expects to complete the sales of 111
remaining units in 2017.
Up to present, more than 90% units of Melosa Garden have
been constructed and more than 50% of these units have
been handed over to the buyers. In 2017, the Company will
complete construction and handover the remaining units
to the customers.
Merita has a scale of 3 hectares of land located on Lien
Phuong Street, Phu Huu Ward, District 9. The project has
131 townhouses in a compound with full of high-class
utilities and amenities such as swimming pool, gym center,
minimart, etc. More than 40 shop-houses among 131
townhouses are located on the frontage of Lien Phuong
Street.
Up to now, the entire infrastructure, landscape, and
utilities have been fully constructed. Total 131 units are
under construction, of which more than 50% have been
completed. The rest will be completed in the fi rst quarter of
2017. Merita Project will be opened for sales in the second
quarter of 2017 and sold out in opening day.
Lucasta has a scale of 8 hectares of land located on Lien
Phuong Street, Phu Huu Ward, District 9. Lucasta is an
eco-villa project in premium segment, including 140
detached and duplex villas having refi ned designs and in
a compound with beautiful scenery and full of high-class
utilities.
After acquiring Lucasta in Quarter III/2015, Khang Dien has
carried out refurbishment and development and offi cially
opened for sales in Quarter IV/2015. Until December 31st
2016, the 98 villas have been sold. The Company expects
to complete the sales of the remaining units and hand over
the ownership certifi cates to the buyers in 2017.
WITH THE BUSINESS PLAN FOR THE PROJECTS DESCRIBED ABOVE, KHANG DIEN EXPECTS TO SELL MORE THAN 400 TOWNHOUSES AND VILLAS AND 700 APARTMENTS IN 2017. THE ESTIMATED CONSOLIDATED PROFITS AFTER TAX IS VND500 BILLION (INCLUDING THE PROFIT FROM BCCI’S COMPANIES), INCREASING BY 35% COMPARED TO THE CONSOLIDATED PROFIT IN 2016.
GENERAL DIRECTOR TEAM REPORT (continued)
Mega Village has a scale of 5.7 hectares of land in Phu Huu
Ward, District 9, in front of Inner Ring Road, 600m far away
from roundabout between HCMC - Long Thanh - Dau Giay
Highway and Inner Ring Road.
The project was deployed in the third quarter of 2014 and
off ered for sales in May 2015. Until December 31st 2016, the
project remained 15 units unsold. As expected, the 100%
sales will be completed in 2017.
At present, 335 houses of Mega Village are 95% construction
completed and handed over to customers. The remaining
works will be completed and handed over to customers in
the fi rst quarter of 2017.
Out of 335 units, 145 property ownership certifi cates have
been handed over to the buyers. The remaining ownership
certifi cates will be handed over to the buyers in the second
quarter of 2017.
The Venica has scale of 3.1 hectares of land located at
Do Xuan Hop Exit of the Long Thanh - Dau Giay Expressway,
in Phu Huu Ward, District 9, bordering District 2. The project
is like a small oasis with surrounding river and has 43 super
high class villas in a compound with superior utilities and
amenities.
The Venica has been 100% completed in construction,
infrastructure, landscape, and utilities. Ownership
certifi cates of all 43 villas have been ready before offi cially
opening for sales in April 2016. Until December 31st 2016,
24 villas of the project have been sold. The Company plans
to continue selling The Venica in 2017.
Gia Phuoc has a scale of 3 hectares of land located on D2
Street, Phu Huu Ward, District 9 and 500m far away Nguyen
Duy Trinh Street.
Gia Phuoc has 118 townhouses in a compound with high-
class utilities and amenities such as swimming pool, gym
center, minimart, etc. In 118 townhouses have about 20
units of Shop House of land located on D2 Street (land
requirement of 30m)
Gia Phuoc is expected to open for sale in Quarter II/2017
and will be completed in 2017.
The apartment project has a prime location at Do Xuan
Hop Exit of the Long Thanh - Dau Giay Expressway, in Phu
Huu Ward, District 9, HCMC. The project is located adjacent
to The Venica and The Lake View City. The project off ers
nearly 900 apartments from 45m2 to 130m2 living space
with refi ned design and full of utilities and amenities such
as 800m2 swimming pool, gym center, etc. The apartment
is designed and constructed by Hoa Binh Construction -
a prestigious contractor. At present, the project is under
construction and expected to open for sale in Quarter
II/2017.
MEGA VILLAGE 1
MELOSA GARDEN 2 LUCASTA4 MERITA5
THE VENICA 3 GIA PHUOC6 APARTMENT PROJECT IN PHU HUU WARD, DISTRICT 97
84 85ANNUAL REPORT 2016 BUSINESS PERFORMANCE 2016
TOWNHOUSES IN COMPOUND
SETTING
of the Mega townhouse projects,
which were sold out in 2014 - 2015.
Khang Dien continues launching
a plenty of products in diff erent
segments: Melosa Garden - upgraded
product line of Mega Series, Luscata
premium eco villa, The Venica 5-star
villa, etc. to meet the real demand on
housing of local and overseas middle-
class customers.
CORPORATE GOVERNANCE
BOARD OF DIRECTORS
BOARD OF DIRECTORS MEMBERS AND STRUCTURE INSPECTION COMMITTEE MEMBERS AND STRUCTURE
Inspection Committee consists of
three members elected by General
Shareholder’s Meeting (GMS) to
perform the inspection activities
according to the laws and the
Company’s charter, including:
No. Member Position
1 Ms. Vuong Hoang Thao Linh Head of Inspection Committee
2 Mr. Dao Cong Dat Member of Inspection Committee
3 Mr. Hoang Manh Phong Member of Inspection Committee
SUMMARY OF INSPECTION COMMITTEE’S MEETINGS
In 2016, Inspection Committee held
quarterly meetings to summarize
the performance of the year, plan for
the next year and prepare report and
suggestions to Board of Directors and
General Director Team.
Inspection Committee also attended
the meetings held by the Board of
Directors and regularly discussed
with the Board of Directors, functional
department heads, internal auditor
and independent auditor to fulfi ll the
committee’s duties.
Details of the meetings are as follows:
• Meeting minutes No. 01/2016/BB-BKS dated 29/03/2016 reviewing
unconsolidated fi nancial statements and consolidated fi nancial statements
and 2015 auditor’s report draft and assigning responsibilities to the members
of Inspection Committee in 2016
• Meeting minutes No. 02/2016/BB-BKS dated 30/06/2016 evaluating and
reviewing the implementation of the Board of Directors’ resolutions in
Quarter II.
• Meeting minutes No. 03/2016/BB-BKS dated 25/08/2016 evaluating and
reviewing the implementation of the Board of Directors’ resolutions in Quarter
III, reviewing the implementation of information disclosure procedure and
reviewing fi nancial statements for fi rst 6 months.
• Meeting minutes No. 04/2016/BB-BKS dated 29/12/2016 summarizing and
reporting the activities of Inspection Committee in 2016 and reviewing the
developments of some projects of the Company.
INSPECTION COMMITTEE
As of December 31st 2016, Board of
Directors of Khang Dien consisted of
fi ve Directors, including three executive
members and two non-executive
members. There was no change in
Board Directors during the year.
Details are as follows:
No. Member of BOD Position Remark
1 Mr. Ly Dien Son Chairman cum General Director
2 Mrs. Mai Tran Thanh Trang Member cum Deputy General Director
3 Mr. Nguyen Dinh Bao Member cum Deputy General Director
4 Mrs. Nguyen Thi Dieu Phuong Member Non-executive
5 Mr. Le Hoang Son Member Non-executive
BOARD OF DIRECTORS ACTIVITIES
In 2016, the Board of Directors held 33
meetings with full participation of the
Directors and issued Resolutions on
major issues of the Company. 100%RATE OF MEETING ATTENDANCE
At the same time, the Board of Director timely gave policies to solve challenging
issues and impediments materializing in actual business. The Board of Directors
also quickly made strategic decisions and eff ectively fulfi lled its duties in
maintaining stable and safe operation for the Company.
88 89ANNUAL REPORT 2016 CORPORATE GOVERNANCE
BOARD OF DIRECTORS
Beside the remunerations mentioned above, the Company did not pay any other compensations to the Board of Directors.
Remuneration of the Board of Directors:
No. Member of BOD Working time Remuneration
1 Mr. Ly Dien Son 12 months VND15,000,000/month
2 Mrs. Mai Tran Thanh Trang 12 months VND10,000,000/month
3 Mr. Nguyen Dinh Bao 12 months VND10,000,000/month
4 Mrs. Nguyen Thi Dieu Phuong 12 months VND10,000,000/month
5 Mr. Le Hoang Son 12 months VND10,000,000/month
INSPECTION COMMITTEE
Beside the remunerations mentioned above, the Company did not pay any other compensations to the Inspection Committee.
Remuneration of the Inspection Committee
No. Member of Inspection Committee Working time Remuneration
1 Ms. Vuong Hoang Thao Linh 12 months VND10,000,000/month
2 Mr. Dao Cong Dat 12 months VND5,000,000/month
3 Mr. Hoang Manh Phong 12 months VND5,000,000/month
TRANSACTIONS, REMUNERATIONS AND INTEREST OF BOARD OF DIRECTORS AND INSPECTION COMMITTEE
SHARE TRANSACTIONS OF INTERNAL SHAREHOLDERS AND RELATED PERSONS
SHARES OWNED BY INTERNAL SHAREHOLDERS
Shareholders No. Name Position Total Ownership percentage
(%)
Board of
Directors
1 Ly Dien Son Chairman 2,340,000 1.000%
2 Mai Tran Thanh Trang Member 286,000 0.122%
3 Nguyen Dinh Bao Member 299,000 0.128%
4 Nguyen Thi Dieu Phuong Member 0 0%
5 Le Hoang Son Member 91,028 0.039%
General
Director Team
1 Ly Dien Son Chairman of BOD cum General
Director - -
2 Mai Tran Thanh Trang Member of BOD cum Deputy
General Director - -
3 Nguyen Dinh Bao Member of BOD cum Deputy
General Director - -
4 Ngo Thi Mai Chi Deputy General Director 104,000 0.044%
Inspection
Committee
1 Vuong Hoang Thai Linh Head of Inspection Committee 2,002 0.001%
2 Dao Cong Dat Member of Inspection Committee 26,000 0.011%
3 Hoang Manh Phong Member of Inspection Committee 13,000 0.006%
Financial
Director1 Tra Thanh Tra Financial Director 104,000 0.044%
Chief
Accountant 1 Nguyen Quoc An Chief Accountant - -
Authorized
person for
information
disclosure
1 Nguyen Dinh Bao Member of BOD cum Deputy
General Director- -
TOTAL 3,265,030 1.395%
90 91ANNUAL REPORT 2016 CORPORATE GOVERNANCE
TRANSACTIONS OF INTERNAL SHAREHOLDERS AND RELATED PERSONS
No. Transactions conducted by Relationship with internal shareholders
Beginning number of shares
Ending number of shares Reasons for increase/decrease (purchasing,
selling, transferring, bonus, etc.)Number of share Percentage Number
of share Percentage
1 Mai Tran Thanh Trang Member of BOD cum Deputy General Director 681,900 0.379% 286,000 0.122%Portfolio restructuring and receiving bonus shares at the
rate of 30%
2 Nguyen Dinh Bao Member of BOD cum Deputy General Director 469,400 0.261% 299,000 0.128%Portfolio restructuring and receiving bonus shares at the
rate of 30%
3 Le Hoang Son Member of BOD 262,022 0.146% 91,028 0.039%Portfolio restructuring and receiving bonus shares at the
rate of 30%
4 Ngo Thi Mai Chi Deputy General Director 330,000 0.183% 104,000 0.044%Portfolio restructuring and receiving bonus shares at the
rate of 30%
5 Nguyen Duc Trong Deputy General Director 150,000 0.083% 0 0% Portfolio restructuring
6 Tra Thanh Tra Financial Director 276,000 0.153% 104,000 0.044%Portfolio restructuring and receiving bonus shares at the
rate of 30%
7 Dao Cong Dat Member of Inspection Committee 68,000 0.038% 26,000 0.011%Portfolio restructuring and receiving bonus shares at the
rate of 30%
8 Hoang Manh Phong Member of Inspection Committee 44,000 0.024% 13,000 0.006%Portfolio restructuring and receiving bonus shares at the
rate of 30%
9 Vietnam Investment Property Holdings Limited Related person, internal person 2,524,691 1.40% 962,508 0.41%Portfolio restructuring and receiving bonus shares at the
rate of 30%
10 Vietnam Investment Limited Related person, internal person 2,682,680 1.49% 3,487,484 1.49% Receiving bonus shares at the rate of 30%
11 Vietnam Investment Property Limited Related person, internal person 2,682,680 1.49% 3,487,484 1.49% Receiving bonus shares at the rate of 30%
12 Vietnam Ventures Limited Related person, internal person 7,540,400 4.19% 15,802,520 6.75% Buying share and receiving bonus shares at the rate of 30%
13 Vietnam Enterprise Limited Related person, internal person 16,111,219 8.95% 20,944,584 8.95%Portfolio restructuring and receiving bonus shares at the
rate of 30%
14 Asia Value Investment Limited Related person, internal person 1,381,380 0.77% 0 0% Portfolio restructuring
15 VOF Investment Limited Related person, internal person 3,834,320 2.13% 0 0% Portfolio restructuring
Notes: * Calculated based on the former charter capital of VND1,800,000,000,000
** Calculated based on the new charter capital of VND2,339,998,920,000
SHARE TRANSACTIONS OF INTERNAL SHAREHOLDERS AND RELATED PERSONS (continued)
Investment funds: Vietnam Investment Property Holdings, Vietnam Investment Limited, Vietnam Investment Property Limited,
Vietnam Enterprise Limited, Asia Value Investment Limited, and VOF Investment Limited are under the management of
VinaCapital Corporate Finance Vietnam, who has two representatives holding important roles at Khang Dien: Nguyen Thi Dieu
Phuong - Member of BOD and Vuong Hoang Thao Linh - Member of Inspection Committee.
92 93ANNUAL REPORT 2016 CORPORATE GOVERNANCE
RISK MANAGEMENT IS INTEGRATED INTO ALL PHASES OF THE BUSINESS OPERATIONS OF KHANG DIEN GROUP OF COMPANIES (INCLUDING THE PARENT COMPANY AND MEMBER COMPANIES). AFTER GOING THROUGH THE CHALLENGING REAL ESTATE MARKET IN 2010 - 2013, WE HAVE APPROACHED RISK MANAGEMENT IN A MORE SYSTEMATIC WAY IN ORDER TO PROACTIVELY MANAGE ALL RISKS THAT MAY AFFECT THE COMPANY’S SHORT-TERM AND LONG-TERM BUSINESS OBJECTIVES.
General Director Team is responsible for implementing
risk management policies and procedures, providing
resources for risk management activities, promoting risk
management regulations and procedures, and supervising
risk management implementation to ensure safety and
eff ectiveness for Khang Dien’s activities.
Khang Dien’s subsidiaries separately manage risk by
building their own risk management strategies and policies
in line with Khang Dien’s risk management strategy and
policy.
The Company’s management positions starting
from department head and higher jointly share risk
management responsibilities with the General Director
Team. The manager of each department, division, or project
is accountable for determining, analyzing and evaluating
potential risks, proposing solutions to prevent within her
scope and reports to General Director Team. The report is
made weekly or at any time when the manager fi nds that
the possible risks and their eff ects to the Company’s daily
business activities exceeds her management ability.
General Director Team summarizes the reports then reports
the main risks, preventive measures to General Director,
who reviews and evaluates the reports weekly or at any
time as required and makes decisions to accept the risks
or not, choses preventive measures, and approves budget
for those solutions. General Director will report to Board
of Directors about major issues related to the risks and
their related business opportunities and the impacts on
business objectives and results in the current fi scal year as
well as the risks causing major impacts on the Company’s
medium-term and long-term development strategy.
Risk management principles of Khang Dien focus on
analysis and assessment of risks in a systematic way
to control, prevent and minimize the damages, losses,
and negative eff ects of the risks to the Company’s
business objectives and results. Based on this
principle, the Company’s Management evaluates and
decides to accept certain risks or not, and if accepting,
determines the degree of caution and control mode
and, in many cases, takes advantage of business
opportunities from the risks.
RISK MANAGEMENT PRINCIPLE AND PROCEDURE
IDENTIFY
MONITOR
EVALUATE
CONTROLIn 2016 Khang Dien performed risk management eff ectively. However, to implement a stronger risk management system,
the Company will refi ne risk management procedures, defi ne accountabilities and coordination among departments,
and improve awareness of risk management culture, which thereby creates a fi rm foundation for business operations and
sustainable development of Khang Dien.
PROCEDURES
Identify the risks
Group
Subsidiaries
Functional Division/Department
Measure and evaluate the risks
Recognize and monitor the risks
Risk mitigation
Risk management report
Monitor and review risk management procedure
CONTROL AND
REVIEW
RISK MANAGEMENT
94 95ANNUAL REPORT 2016 CORPORATE GOVERNANCE
In 2016, Khang Dien determined the major risk
factors and risk management solutions as follows:
RISK FACTORS
ECONOMIC AND POLICY RISKS
HOUSING MARKET RISKS
FINANCIAL RISKS
LEGAL RISKS
REPUTATION RISKS
PROJECT PROGRESS RISKS
1. 2. 3. 4. 5. 6.
Abnormally strong fl uctuation in US Dollar exchange rate,
fl uctuation in gold price, a series of integration stories
such as TPP under Donald Trump, Brexit, Fed’s interest rate
raising, China and neighboring countries intentionally
devaluing currencies, etc. have led to a series of reactions
in the fi nancial market and complicated forecasts, causing
negative eff ects on business performance and homebuyers’
and real estate investors’ confi dence. Accordingly, the
fl uctuations in exchange rate between Vietnam dong and
foreign currencies could aff ect the fi nancial condition,
investment activities, sales performance and business results
of Khang Dien.
In the fourth quarter of 2016, it was said that the Ministry of
Finance was studying to issue a law on property taxation that
aimed at the people owning the second house and more.
Accordingly, from 2016 to 2020, the Ministry of Finance
would draft a tax law applicable to the people owning
many houses to prevent speculation and to minimize risks
in real estate market. This law would impacts on real estate
investments and business operations.
According to experts, most of the real estate development
loans focused on a few large real estate companies
developing high-class housing and hospitality projects,
which increased the risk of market bubble, especially in
the high-class and luxury segments in the big cities. As a
result, the Government could soon implement control and
corrective measures in order to reduce the risk.
Mitigation measures
• Khang Dien has been focused on developing
middle-class housing projects with completely built
infrastructures and facilities and quality housing
compounds with full functionality to meet the needs of
the majority of the homebuyers.
• Khang Dien has been carefully selected project
locations in the new inner districts of Ho Chi Minh City,
where urbanization and infrastructure development
have been speedy and attracting investment capital,
and convenient for the homebuyers in the region and
neighboring provinces.
• The Company closely monitored the macroeconomic
situation, the cycle of the real estate market, housing
market, and the adjustment in State policies by
maintaining good relationships with local authorities,
professional associations, major fi nancial institutions
and leading experts, etc. to well understand and predict
the developments of economic, market and policy.
• The Company has been willing to re-evaluate and adjust
business strategy and plans closely to the reality in the
market.
ECONOMIC AND POLICY RISKS
middle and middle-high segments continued to experience
short supply. The indigestion in high-class apartments has
been warned by many experts. Currently, the supply of luxury
apartments was estimated to be 20,000 - 30,000 units with
sales prices ranging from a few billion to ten billion dong.
In this context, the enterprises having enough fi nancial
resources would continue to exist and grow, and the weak or
failed enterprises would cause negative consequences, even
disruption in the housing market.
Mitigation measures
• Khang Dien has continuously monitored, reviewed and
evaluated market conditions, rebalanced investment
portfolio to best suit the purchasing power of the
majority of the homebuyers.
• The Company has been creating products that bring
true value and excellent living quality to meet the needs
of customers in the long term.
The recovery and growth of the housing market during the
past 3 years has led to surges in new investments from the
well-known housing developers as well as attracted new
investors to join the market. This has created an increasingly
competition in products and services.
The above-mentioned names have been the enterprises
leading the market trend. They have pursued the goal of rapid
growth in market shares and revenues. In competition directly
or indirectly with Khang Dien, they have focused on off ering
products selling at relatively higher prices because of their
higher operating and investment costs. According to experts,
the above trend driving market imbalance (oversupply but the
prices have been rising), and with the high growth in housing
development credit in 2016, the risk in housing bubble would
increase.
In Quarter IV/2016, the housing market showed some signs
of over supply in the premium segment while the demand in
HOUSING MARKET RISKS
RISK MANAGEMENT (continued)
96 97ANNUAL REPORT 2016 CORPORATE GOVERNANCE
One of the events mostly concerned by the real estate
industry has been the State Bank’s amendment draft
to Circular 36/2014/TT-NHNN. Accordingly, two points
aff ecting the real estate market: Keeping the ratio of short-
term capital used for medium-term and long-term loans at
60% in 2016, reducing it to 50% from January 1st 2017 and
to 40% from January 1st 2018. This amendment draft raises
the risk coeffi cient of real estate business and sets out a
roadmap of limiting credit fl owing into the real estate
market in two years from 2016.
In Vietnam, the development of real estate market has
been dependent on the credit for project development.
Accordingly, that the credit institutions tighten capital
supply will cause negative eff ects on the market. In the
short term, interest rate will rise, and it will be more diffi cult
to obtain credits for real estate development since the
banks have to restructure their capital bases. In the long
term, the real estate market will be under serious impact.
Therefore, the ability to mobilize capital from the banks has
been a major risk factor in Khang Dien’s business operation.
Mitigation measures
• The Company always maintains enough cash for
business operations through credit lines for project
fi nance from the largest and safest banks.
• The Company always manages cash fl ows and prioritizes
loan interest payments, settling loans before maturity
and restructuring loans with lower interest rates and or
using fi xed interest rates.
• Management continues to mobilize capital from the
shareholders and strategic investors in order to maintain
stable, low risk capital structure.
• Khang Dien always practice transparent project legal
framework, land entitlement, property ownership and
full infrastructure development before sales to earn the
trust from the banks.
Khang Dien reputation depends not only on the ability to
develop the projects but also on the quality of operational
management and after-sales services. At presence Vietnam
lacks property management professionals and after-
sales service providers because they are relatively new
professions.
Though Khang Dien carefully prepares information during
the project planning phase, the information is not perfect
and many factors evolve during project deployment phase,
resulting in many changes. On the other hand, since the
construction process is normally long, and because of the
changes during the construction, the fi nal products will
not completely follow the initial design. This directly aff ects
the reputation and brand name of Khang Dien.
The reputation also depends on quality of products and
customer care services after handover (after-sales services).
Any delay and poor quality in handling technical issues
will cause negative eff ects. The reputation depends on the
quality of operating management after the residents have
moved to live. Poor maintenance, slow and inadequate
repairs and management of internal utilities and services,
landscapes and especially lacks of security will increase the
risk of incidents as well as create negative impacts on the
Company.
Mitigation measures
• Khang Dien applies strict experience and reputation
criteria in screening for third parties performing
operation and maintenance activities. The Company also
has an inhouse team responsible for frequent monitoring
operation in the most eff ective way with quality assurance.
• Customer Care Center assigns after-sales specialists on
duty at the project sites after the residents have moved
in. The team of after-sales staff s coordinates with the
project’s technical team, security team and operational
team to solve the problems in the best way.
• When a problem attracts the attention of the media
industry, Marketing and PR Department will take
responsibility to share correct and fair information and
to maintain fair and open dialogue with the media, the
press and the community.
FINANCIAL RISKS REPUTATION RISKS
Mitigation measures
• To timely predict, respond and help the Company with
best preparation for the changes in legal environment,
Khang Dien maintains an inhouse legal department in
charge of monitoring and updating changes in laws
and timely advising Management on how to utilize
opportunities and minimize losses when a new policy
or law impacting the real estate market.
Khang Dien is exposed to legal risks associated with
changes in Government policies. In 2016, the laws
related to land, housing, real estate trading, construction,
and investment was still in the refi ning process, and the
guidelines still faced many obstacles when applying to the
practice.
In regard of procedures, there are some confl icts and
inconsistency among the legal documents, and it is
diffi cult to apply some new laws in practice due to the
lacks of by-law documents giving detailed guidelines for
land entitlement procedures, especially in the fi eld of land
using and owning.
The above-mentioned factors not only contribute to
increasing operating costs and project investment costs of
Khang Dien but also lead to disruptions, or even stagnation
in the project development and business operation at
Khang Dien.
LEGAL RISKS
For large-scale projects related to land clearance and
compensation and land use transformation, the Company
normally needs from 2 years to 3 years to complete the
process and complete all legal procedures to launch the
projects.
The time required for land clearance and compensation
and legal procedures usually depends on many unforeseen
factors, causing delays. Therefore, the Company cannot
actively control the project schedule in this context.
Mitigation measures
• Khang Dien has developed a process for implementing
the legal procedures professionally and quickly to ensure
project execution on schedule, earning credibility and trust
from customers.
• The Company has maintained professional and sustainable
relationships with Government authorities to constantly
be updated on the procedures for land clearance and
compensation, land ownership, and project investment.
• Khang Dien continuously holds dialogues and cooperates
with Government authorities, comply with the laws and
proactively fulfi ll all fi nancial obligations, taxes and other
expenses, etc. to ensure full entitlement.
• Khang Dien always cares about and support the
communities and the individuals aff ected by the
Company’s land clearance. The Company always makes
compensations to the aff ected parties at market prices
and implements fully the liabilities under State Regulation.
PROJECT PROGRESS RISKS
RISK MANAGEMENT (continued)
98 99ANNUAL REPORT 2016 CORPORATE GOVERNANCE
HOURSENJOYING THE GREEN AND MODERN LIVING SPACE Each product has typical features with
green space and river in combination
with innovative infrastructures. This
prime location is suitable to create a
modern and environment-friendly living
space, nourishing dreams of the future
generations.
SUSTAINABILITYREPORT
We determines that our Company
can only successfully implement its
sustainable development strategy
only when harmoniously combining
economic growth with fulfi lling
responsibilities with the environment,
community, and society.
Simultaneously, Khang Dien always
tries to balance the benefi ts between
the stakeholders and the Company at
presence and in the future in order to
implement the strategy.
OVER THE PAST 15 YEARS, KHANG DIEN HAS BEEN CONTRIBUTING TO THE LOCAL COMMUNITIES, THE SOCIETY AND THE IMPROVEMENT OF LIVING QUALITY THROUGH OFFERING MEANINGFUL UTILITIES TO THE HOMEBUYERS. WITH OUR CORE VALUES BASED ON “TRUE VALUES”, KHANG DIEN IS PROUD TO MARK ITS PRESENCE IN THE REAL ESTATE MARKET AND BRING “TRUE VALUES” TO ALL STAKEHOLDERS.
IS THE KEY FOR SUSTAINABLE DEVELOPMENT OF THE COMMUNITIES.
SCOPE, BOUNDARY AND CYCLE OF REPORT
The report is prepared in Vietnam for
real estate development and operations
of Khang Dien group of companies.
Information in this report is updated
for the fi scal year 2016, from January
1st 2016 to December 31st 2016.
This report includes the activities of
the Parent company, the subsidiaries
(except for Binh Chanh Construction
and Investment JSC. - a public company
and having its own sustainability report),
and the project management units
under the Parent company. The report
refl ects the business performance of the
group in 2016 and highlights the group’s
direction and goals for sustainable
development in the coming years.
METHOD OF DETERMINATION OF REPORT CONTENTS
Our approach to sustainable
development is based on our
core values of the past 15 years:
transparency and effi ciency, quality
focus, putting customer benefi ts
above all, compliance with the laws,
and contribution to the communities.
The issues related to sustainable
development are constantly reviewed
by Khang Dien in relation to current
activities so as to clearly determine
material issues and accordingly, to
review, improve and fully present in
the next sustainability reports.
CONTACT INFORMATION
We welcome feedback and suggestion to improve our practice of sustainability. Please
reach out, write or call us at:
• Website: https://www.khangdien.com.vn/ (Contact)
• Telephone: (84-8) 3820 8858 - Fax: (84-8) 3820 8859
• Address: Room 801, 8th Floor, Centec Tower,
72 - 74 Nguyen Thi Minh Khai Street, Ward 6, District 3, HCMC
• Email: [email protected]
CONTENTS OF SUSTAINABILITY REPORT
The sustainability report of 2016
is an integral part of the annual
report and marks the fi rst year
Khang Dien approaches reporting
in a more structural way about
the major aspects of sustainable
development as well as their impacts
on environment, society, economics
and corporate governance.
In 2016, Khang Dien applied
Guidelines on implementation of
sustainability report in Annual Report
Guidelines 2016 by Vietnam Annual
Report Awards (ARA), Instructions
for Disclosing Information about
Environment & Society of SSC, IFC
and the Circular No.155/2015/TT-
BTC by the Ministry of Finance giving
guidance on information disclosure
in the security market. Besides,
we refered to GRI4 Guidelines
to determine material areas
aff ecting the stakeholders to build
a comprehensive view in forming
the report contents and giving out
sustainable business strategies in the
future.
OVERVIEW OFSUSTAINABILITY REPORT
STABLERESIDENCE
102 103ANNUAL REPORT 2016 SUSTAINABLE DEVELOPMENT REPORT
STAKEHOLDERS ARE IMPORTANT FOR THE SUSTAINABLE DEVELOPMENT AND SUCCESS OF KHANG DIEN. WE ALWAYS LISTEN TO UNDERSTAND THE ASPIRATIONS AND THE NEEDS OF THE KEY STAKEHOLDERS VIA DIALOGUE OR EMAIL. On the 14th and 15th of September 2016, representatives
from Khang Dien presented more than 420 gift sets to
the children of Khang Dien’s residential communities. The
gift sets are a part of the warm and meaningful Middle
Autumn Festival that Khang Dien organized to celebrate
the beautiful childhood years of the children.
SUSTAINABLE RELATIONSHIPS WITH STAKEHOLDERS
CUSTOMERS
Customer feedback is vital to Khang Dien’s sustainable
development. Our customers are mostly homebuyers
around 30 years old who buy home to live in, have stable
income or available capital, and have strict requirements
for quality, infrastructures, and living environment.
Therefore, Khang Dien always fi nds ways to improve
business operations and quality of products and services to
bring better values to the customers. Customer satisfaction
and trust in our “true values” embedded in the living
environment created by Khang Dien will be the foundation
for the Company’s sustainable development.
Our Customer Care Center welcomes feedback from
the customers through multiple channels, including
interviewing residents and existing customers about
their satisfaction with our quality of products and services
(conduct interviews together with CBRE), maintaining
dialogue with the project visitors, and other customer care
activities associated with the Company’s tradition.
SOME EVENTS OF CUSTOMER CARE CENTER IN 2016
“Happy Moment” Competition was held by Khang Dien
to facilitate networking, sharing and cohesion in the
residential communities developed by Khang Dien, which
fosters a high-quality and civilized life.
“Happy Moment” Competition1
“Warm Middle Autumn Festival” program2
As part of the after-sales services, customer caring and
enhancing the spiritual life of the residents living at the
communities Khang Dien developed, representatives
from Khang Dien visited and gave calendar books on the
occasion of Dinh Dau Tet holidays 2017 to the households.
This activity not only shows the Company’s attention to the
residents but also expresses the Company’s appreciations
to the customers who always believe in and accompany
the Company.
Employees are the most valuable assets for the Company’s
sustainable development. Therefore, Khang Dien always
pays high attention to the investment in human resources,
in particular:
• Create a professional and fair working environment and
ensure stable income for all employees.
• Frequently open training courses on profession and
skills to work eff ectively.
• Apply policies of preferential treatment and rewards for
individuals with good performance in the year. At the
same time, studying to issue and modify policies for
transparent, fair salaries, bonuses, and allowances that
are reasonable with the eff orts and dedications of the
employees.
• Organize team-building, sport and entertainment
activities to care for the spiritual life of employee.
In addition, Human Resources Department maintains
regular dialogues with employees to share new ideas and
listen to their aspirations and legitimate demands on the
basis of respecting the employees.
Staff from HR Department focus on guiding and supporting
new employees to understand the basic values, vision,
mission, corporate culture and organizational structure of
the Company. The activities to support new employees are
usually maintained until fi nishing probationary period in
order to facilitate them to integrate with the existing team
and get to know their jobs better.
EMPLOYEES
Giving “Dinh Dau Tet holidays 2017 calendar books” to the residents3
104 105ANNUAL REPORT 2016 SUSTAINABLE DEVELOPMENT REPORT
Khang Dien determines the key stakeholders are the
parties creating eff ects or being aff ected by the Company’s
business operations, including customers, employees,
shareholders - investors, distributors, contractors -
suppliers, local authorities - state agencies, and the media
- the press. Khang Dien builds and develops sustainable
relationships with the key stakeholders with the desire of
meeting their long-term needs. The relationships are based
on trust, transparency and consistency in all of Khang
Dien’s activities.
In 2016, Khang Dien paid more attention to the issues
related to sustainable development. The Company actively
approached the stakeholders through multiple channels of
communication and joint activities. The mechanism for Khang
Dien’s engagement with its stakeholders are described below.
Khang Dien team of investor relation offi cers are responsible
for maintaining and supporting the contact and dialogue
between the Company’s management and the shareholders
as well as the investment community. Information about our
investor relations activities is presented in Page 43 - “Investor
Relations” in Annual Report 2016.
In December 2016, Khang Dien was honored with the
Certifi cate of Merit from the Chairman of HCMC People’s
Committee for the company’s achievements in building and
developing HCMC Real Estate Association in consecutive
years and for its contributions to the competition movement
on the occasion of the 3rd Congress of HCMC (2016 - 2021).
SHAREHOLDERS AND INVESTORS
The most important topics for dialogues between Khang
Dien and the contractors, suppliers are labor safety, health
of workers, and environmental protection. These topics have
an important infl uence and, thus, Khang Dien requests all
contractors and suppliers to maintain certain health and
safety policies for workers and take measures to minimize
the impacts on the environment.
The Company’s Project Management Units hold monthly
meetings with the leaders of contractors, suppliers about
labor safety and health of workers and environmental
protection. Contractors maintain regular meetings at site
every morning of the work day to inform the related contents
and draw lessons for better management. The Company’s
leadership, including the General Director and Deputy
General Directors, regularly pays a visit and inspects the job
sites to detect labor safety, site hygiene and environmental
protection issues.
DISTRIBUTORS, CONTRACTORS, AND SUPPLIERS
Khang Dien is a member of HCMC Real Estate Association,
and through the association we maintains dialogues with
the local authorities and State agencies over the topics
related to the business, including giving feedback on new
laws and the topics on sustainable development for the real
estate companies and the real estate market in general.
Strictly complying with the laws and regulations on tax
obligations and environment protections.
Actively coordinating with the local authorities in making
new investments and constructions to complete projects
one time, contributing to the State budget and create jobs
for the local communities.
STATE AGENCIES
Building a good relationship with the media and press on
the principle of transparency and legality.
The disclosed message and information are guaranteed for
accuracy and clarity to help the people have a corrective
view on the brand name as well as the development and
core values of the Company.
Calmly handling and correcting the false information that
may aff ect the Company’s reputation.
FOR MEDIA AND PRESS
Stakeholders Ways of engagement Main topics
Distributors, Contractors,
and Suppliers
• Bilateral dialogue
• Regular meetings
• Project site visits and inspections
• Exchange information via phone
and email
• Quality of products and services
• Performance effi ciency
• Job safety, worker health, and
environmental protection
Customers • Bilateral dialogue
• Customer Care Center
• Customer care events and model
house visits
• Interview and collecting feedback
• Consult and answer questions via
phone and email
• Quality of products and services
• Customer satisfaction
• Assessment on the effi ciency and
work attitude of employees
Employees • Performance evaluation
• Internal training and guidance for
new employees
• Sport, team building activities
• Year-end party
• Gift giving on holidays
• Outing
• Effi ciency and skills
• Company policy
• Occupational safety and health
• Solidarity
• Coworker relationship
Shareholders and
Investors
• Quarterly meetings for business
performance
• Annual General Shareholder
Meeting, Extraordinary General
Shareholder Meeting
• Investor meetings
• Bilateral dialogue
• Project visits
• Exchange information via phone
and email
• Business result
• Operation status and operational
effi ciency
• Development direction and
strategy
State agencies • Report and request for advice and
guidance for implementation
• Participation in Real Estate
Associations
• Professional networking events
• Other exchange events
• Topics about laws and State
management
• Market trend
• Diffi culties of enterprises
For media and press • Interview
• Press release
• TVC advertisements, PR articles
• Disclosure on business result
• Information disclosure upon the
events
SUSTAINABLE RELATIONSHIPS WITH STAKEHOLDERS (continued)
MECHANISM FOR ENGAGEMENT WITH STAKEHOLDERS
106 107ANNUAL REPORT 2016 SUSTAINABLE DEVELOPMENT REPORT
To set the direction and boundary for 2016 sustainable
development report contents and preparation for the regular
report, Khang Dien Management undertook a materiality
assessment to defi ne what really matters to the Company and
to the key stakeholders. The determination and assessment
of material issues were based on the Company’s core values
of over the past 15 years of operations and development,
Guidelines on Annual Report 2016 by Vietnam Annual Report
Awards (ARA), Guideline on disclosure of information about
The above material issues have large infl uences and impact
both inside and outside the Company.
Khang Dien constantly explores new methods to improve
productivity and passion at work for the employees.
1. Business performance 2. Compliance with the laws
3. Corporate ethics
4. Corporate culture
5. Product responsibility
6. Environmental protection and Energy conservation
7. Occupational safety and health
8. Workforce relationships
9. Human resource development
10. Sharing with communities
environment & society of SSC and IFC, and the Circular no.
155/2015/TT-BTC by Ministry of Finance giving guidance on
information disclosure in securities market. In addition, Global
Real Estate Sustainability Benchmark (GRESB) and GRI G4
Construction and Real Estate Sector Disclosure were referred.
Accordingly, Khang Dien identifi ed 10 most important
material issues to the Company and to the stakeholders,
which are organized into four main groups as follows:
ECONOMIC EFFICIENCY
CORPORATE GOVERNANCE
ENVIRONMENT & ENERGY
HUMAN
The goal of the Company is to develop quality projects
while using resources eff ectively and effi ciently,
contributes to the economic growth of HCMC, and creates
a working environment encouraging dedication and
performance.
Business performance plays an important role in creating
sustainable values for the Company and the stakeholders.
For further information, please see Report of Management in
Page 72 and Financial Statements in Page 124.
COMPLIANCE WITH THE LAWS
COMPLIANCE WITH THE LAWS
CORPORATE GOVERNANCE
Khang Dien Management Team and the entire work forces
of Khang Dien always comply with the laws on corporate
governance and real estate business operations, including
the Enterprise Law 2014, Real Estate Business Law 2015,
Law on Construction, Law on Housing, etc. Over the
past 15 years, Khang Dien has been a leading company
in compliance with legal regulations on real estate
investment, property development and real estate services.
Khang Dien’s constant delivery of housing products with
transparent legal framework to the market over the past 15
years is a strong evidence of compliance.
Khang Dien Management applies the highest governance
standards prescribed by the laws (Law on Enterprise,
Circular No. 121/2012/TT-BTC stipulating corporate
governance applied to public companies and Circular No.
155/2015/TT-BTC by Ministry of Finance giving guidance
on information disclosure in securities market) and bases
upon the Company’s core values to implement rules on
management, governance procedure, and execution
including policies, inspection programs and process of
internal transactions, transactions of related parties and
risk management. Please see Corporate Governance for
further information in Page 88.
ASSESSMENT OF TOP MATERIAL ISSUES
BUSINESS PERFORMANCE
108 109ANNUAL REPORT 2016 SUSTAINABLE DEVELOPMENT REPORT
make empty promises or provide inaccurate information
to homebuyers and the market. This is very important for
the housing projects developed by the Company and as
such, the information about the functions, aesthetics and
architecture of the sample house printed on sales materials
is prepared as accurate as possible and closely to the actual
products handed over to the homebuyers.
Although Khang Dien cannot maintain an absolute
control of the product information released to the market
through the distributors, the Company always infl uence
the distributors to comply with business ethics through
training the sales team about project legality, planning,
technical infrastructure, social infrastructure and, especially,
reputation of the project owner. Khang Dien absolutely
prohibits the distributors to raise sales prices above those
given by Khang Dien to make quick profi ts.
Khang Dien approaches market competition in a positive
way through healthy competition. The Company’s
competitive advantage is based on selling skills,
professional brokerage and product diff erentiation. We
strictly prohibit any unfair competition.
Khang Dien’s culture is considered a brand
development policy that is shown in several
layers:
Besides, the corporate culture and characters are inherited and passed through generations of leadership who constantly
develop and refi ne Khang Dien’s corporate image in the future. At a deeper level, the corporate culture is the spirit and
value system of Khang Dien.
Some corporate characters of Khang Dien are:
Khang Dien totally prohibits all activities that may lead
to confl ict of interest with the Company in daily works,
business and coordination with related parties. The
Company’s Management applies the principles of splitting
responsibilities, cross-appraisal and cross-check, and
teamwork to facilitate employees to monitor and remind
each other.
At the highest level, the Board of Directors carefully review
Company’s important decisions related to large investments
before approval, and the Inspection Committee strictly
supervises the executions of the decisions. This will help
ensure the reasonableness of decision making and balance
of interests among the related parties.
PREVENTION OF CONFLICT OF INTEREST
Over the past 15 years, Khang Dien has always practiced
project development, sales and marketing based on
ethical principles and fairness. The Company prohibits
project development teams, sales and marketing teams to
BUSINESS ETHICS
OVER THE PAST 15 YEARS, KHANG DIEN HAS ALWAYS PRACTICED PROJECT DEVELOPMENT, SALES AND MARKETING BASED ON ETHICAL PRINCIPLES AND FAIRNESS. THE COMPANY PROHIBITS PROJECT DEVELOPMENT TEAMS, SALES AND MARKETING TEAMS TO MAKE EMPTY PROMISES OR PROVIDE INACCURATE INFORMATION TO HOMEBUYERS AND THE MARKET. THIS IS VERY IMPORTANT FOR THE HOUSING PROJECTS DEVELOPED BY THE COMPANY AND AS SUCH, THE INFORMATION ABOUT THE FUNCTIONS, AESTHETICS AND ARCHITECTURE OF THE SAMPLE HOUSE PRINTED ON SALES MATERIALS IS PREPARED AS ACCURATE AS POSSIBLE AND CLOSELY TO THE ACTUAL PRODUCTS HANDED OVER TO THE HOMEBUYERS.
THE CULTURE OF KHANG DIEN IS BUILT AND PROMOTED AROUND THE COMPANY’S TRADITION OF CONNECTING PEOPLE, PROMOTING CONTRIBUTIONS, AND INCREASING VALUES OF ALL EMPLOYEES IN ORDER TO BEST COMPLETE THE BUSINESS OBJECTIVES SET BY THE MANAGEMENT AND, AT THE SAME TIME, CONTRIBUTE TO THE SUSTAINABLE DEVELOPMENT OF THE COMPANY.
Culture is refl ected in the daily work through the communication language
with colleagues, partners, customers and in the business reports and
administrative procedures at the Company.
First layer
It is refl ected through working spirit the employees express through their
determination, their attitudes and reactions to the issues of right and wrong
and whether they create benefi t or loss to the Company or not.
Second layer
Culture is the foundation for employees’ actions. It is faith, perceptions,
thoughts, and emotion in sub-consciousness of each employee working at
Khang Dien. It is the default, distinction, and foundation for the values and
actions of each employee.
Third layer
1 2 3
Quality of products and
services is paramount.
Working environment
is friendly to promote
employees’ dedication and
long term commitment.
Professionalism and
responsibility are expressed in
the work performed.
CORPORATE ETHICS
CORPORATE CULTURE
110 111ANNUAL REPORT 2016 SUSTAINABLE DEVELOPMENT REPORT
KHANG DIEN’S CULTURE IS CLEARLY SHOWN THROUGH THE FOLLOWING VALUES:
• Employees are recognized and respected as an integral part of the general
development of Khang Dien, regardless of their positions.
• Employees are trained and are encouraged to participate in training to be
ready for new challenges.
• Build a dynamic and highly interactive working environment that facilitates
employees to strive to achieve higher goals and create sharings for all levels
and departments in the Company.
• The spirit of creativity, improvement, and innovation at work that brings
better effi ciency is always encouraged and appreciated.
• Attract and retain talents. Ensure employee job satisfaction.
• All policies, regulations, rules, code of ethics and other guidelines are well
explained for implementation and are clearly and practically implemented.
• Focus on fostering succession and expansion of recruitment, training and
development of young and suitable human resources.
Employees are the most valuable asset
• Every customer of Khang Dien is respected as a valued partner. Therefore, all
products and services are aimed at bringing satisfaction to the customers
and affi rming the position of Khang Dien in their minds.
• Constantly improve and complete customer care policies. Place reputation at
top to retain trust from customers, investors, shareholders and society.
• Maintain fair and transparent relationships with partners on the basis of
mutual benefi t; Bring worthy values to shareholders through profi t growth
based on the activities in compliance with the laws and business ethics.
Over the past 15 years, Khang Dien has been complying with the laws of land use,
housing, building, and real estate services. For our customers, we are committed to:
• Fulfi lling all requirements and obligations on land use rights, land entitlement,
project planning, fi re prevention and fi refi ghting, wastewater treatment,
infrastructure, housing design, and land entitlement before launching
housing products in the market.
• Handing over house and property ownership certifi cate no later than the day
specifi ed in the purchase contract and within the time period allowed by the
laws.
• Complying with the laws on purchase and sales of existing houses and
houses to be built in the future.
During the design and build processes, Khang Dien always sets the objectives and
requirements at the highest quality possible, not below Vietnamese Standards
and with reference to international standards such as BIS, AIS or Euro Code.
In terms of expertise, Khang Dien’s project management team has many years
of experience in design and construction management. The team’s practical
experiences are accumulated from Khang Dien’s outstanding projects such as
The Venica, Lucasta, and Melosa Garden and from the working time at leading
companies in Vietnam such as Meinhardt Group, Apave, SWA, MIA, Cofi co and
Coteccons.
To ensure product quality, Khang Dien works with leading partners in Vietnam
such as NQH, Kyta, Haysom (design consultants), HBC, Coteccons (construction
contractors), CBRE (operation management), and SCQC, Apvae (supervision-
quality management consultant). We are committed to providing product
warranty coverage not lower than the level required by the laws (in many cases
the warranty period exceeds one year).
After the project has been put into operation and the homebuyers have moved
in, Khang Dien assigns staff s from Project Management Unit and Customer Care
Center to be on duty at the project until the community management board
is established. Our management staff s regularly check and coordinate with the
design and construction contractors, material and equipment suppliers, and
operation managers to carry out not only the warranty obligations as agreed with
the customers but also regular maintenance for the projects or whenever there is
any technical problem.
For eff ective management, Khang Dien and the representatives from the
communities agree to issue regulations for the residences and assign personnel
to monitor compliance. Any questions and complaints from the residents will be
handled by the representatives from Khang Dien’s Customer Care Center (on duty
at the residence) in coordination with the operational manager within 24 hours
after verifi cation.
LEGAL COMMITMENTRESPECT PEOPLE
HANDLING QUESTIONS AND COMPLAINTS FROM THE RESIDENTS
• The development of Khang Dien’s products and projects cannot be separated
from the development of the communities. Therefore, Khang Dien aims to
off er high quality products and projects to co-develop with the communities
and society.
• Actively participate in bringing eff ective solutions to protect the environment
and the communities.
• Contribute to the local communities as a member of the society by supporting
and participating in charitable activities such as helping the poors, giving
supports to the victims of natural disasters.
Co-development with the communities and society
RESPECT COMMUNITIES
PROJECT QUALITY COMMITMENT
On the principle of mutual benefit
RESPECT PARTNERS
CORPORATE CULTURE (continued)
PRODUCT RESPONSIBILITY
112 113ANNUAL REPORT 2016 SUSTAINABLE DEVELOPMENT REPORT
IN THE GENERAL TREND OF PUBLIC COMPANIES AND REAL ESTATE ENTERPRISES TO PURSUE THE GOAL OF DEVELOPING GREEN PROJECTS, THE YEAR 2016 MARKS THE FIRST YEAR KHANG DIEN APPROACHES ENVIRONMENTAL PROTECTION MOVEMENT IN A MORE STRUCTURAL WAY.
AS A REAL ESTATE DEVELOPER WORKING DIRECTLY WITH DISTRIBUTORS, CONTRACTORS AND SUPPLIERS, KHANG DIEN PURSUES THE GOAL OF ENSURING SAFETY AND HEALTH AT THE CONSTRUCTION SITES, IN THE RESIDENTIAL COMPOUNDS AFTER THE PROJECTS COME INTO OPERATIONS, AND ESPECIALLY IN THE COMMUNITIES WHERE KHANG DIEN IS DOING BUSINESS.
In project development, the Company strictly adheres to
the construction standards and regulations and the laws
on occupational safety and fi re protection throughout the
development life cycle. To be specifi c, Khang Dien carefully
reviews the issues of safety, health and fi re prevention from
the architectural, structural design to MEP to landscape.
During construction, although Khang Dien cannot maintain
absolute control of the entire construction process, the
Company always actively guides and encourages the
contractors to put labor safety above all, maintain health for
workers, and pay attention to fi re prevention and fi refi ghting
in high-rise building projects.
In order to enhance the eff ectiveness of labor safety control,
maintain health and minimize the risk of fi re and explosion,
Khang Dien holds monthly meetings with contractors about
the topics and issues related to occupational safety and
fi re protection. In addition, at least once a quarter, Khang
Dien Management conducts unplanned inspections and
pays surprise visits to the project sites and the residential
communities to rectify and timely deal with issues.
In 2016, there were no fatal occupational accidents and no
fi res in the all of Khang Dien’s companies and units, including
member companies and project sites.
With the motto of harmonious development and in
consideration of climate changes, the Company focuses
on developing housing projects about 10km - 20km away
from the city center and in accordance with the city’s
master plan in District 2 and District 9, which helps reduce
the compression in urban land uses, traffi c congestion, and
dust and noise pollution. The projects developed by Khang
Dien avoid interference with natural geography, utilize the
geography to develop housing, maintain land for trees
and water surface (up to 60% of the project area), and limit
concreting to control fl ood.
ENVIRONMENTAL PROTECTION
As a real estate developer, Khang Dien is interested in
building an energy effi cient and environmentally friendly
society. Khang Dien always focuses on saving electricity
and water in daily activities as well as minimizing waste.
The Company maintains paper-saving culture through
reusing 100% of one-side printed paper and encourages
email in daily communication. At the fi eld offi ces of Project
Management units, subsidiaries, and Parent company, air
conditioning systems will automatically turn off after 6 p.m.
and turn on after 8 a.m. Similarly, offi ce lighting systems
will turn off after 6 p.m. and turn on locally at the desks
where employees work overtime.
At each project, rainwater is collected and waste water
is treated to meet the standards for watering trees. Air
conditioning systems, refrigerators, and high-power
electrical appliances used in the model houses are
using Inverter technology to save up to 40% of power
consumption. In design, Khang Dien pays attention to
natural lighting by planning layout of each house or the
entire building with at least two sides directly exposed
to nature. The typical house has ceiling height of 3m and
uses large glass panels of 2m - 2.7m in height so that
the residents do not need to use electric lights before 5
p.m., contributing to energy savings. Lighting equipment
selected is employing Led technology, saving up to 70%
of electricity consumption.
Similarly, Khang Dien’s designs give priority to natural
ventilation, minimizing the use of electric fans for forced
ventilation. In case the forced ventilation is required, the
fans with DC motor technology that reduce up to 30% of
power consumption are selected. For water savings, the
types of sanitary appliances, showers, faucets, etc. with low
fl ow are selected, for example, 3,8/4,5L dual-fl ush toilets of
Toto are used.
ENERGY SAVING
ENVIRONMENT PROTECTION AND ENERGY SAVING
OCCUPATIONAL SAFETY AND HEATH
of electricity consumption
Lighting equipment selected is employing Led technology,
saving up to
70%
114 115ANNUAL REPORT 2016 SUSTAINABLE DEVELOPMENT REPORT
KHANG DIEN CONSIDERS EMPLOYEES ITS MOST VALUABLE ASSET.
Khang Dien always prioritizes the obligations with
employees in order to create equality for the employees in
their relationships with the Company.
In 2016, Khang Dien continued signing and implementing
the collective bargaining agreement, contributing to the
balance of interests, creating a close bonding between the
employees and management. All Khang Dien’s employees
are entitled to important policies in the collective bargain
agreement. In particular, the agreement gives detailed
stipulations on salary, bonus, allowance and other
remunerations, and the creation of a safe, comfortable
working environment for the workforce. In contrast, the
employees are obliged to complete the assigned works, to
comply with the working regulations of the Company.
This agreement is negotiated and signed by the
representatives of employees and the employer on the
principle of voluntariness, equality and publicity.
Therefore, the Company continuously amends policies on
salary, bonus, welfare, etc. to enhance the quality of human
resources.
Social insurance - Health insurance - Unemployment
insurance and periodic health examination are fully covered
in accordance with the laws and the Company’s general
policies.
Besides, the Company applies the policy of fi ve working days
and 40 working hours per week. This enables the employees
to have more time for personal life.
In addition, the Company cares for the spiritual life of
employees through social activities such as organizing
birthday parties for employees, giving gifts to female
employees on Woman Day, supporting employees when
they are sick, etc.
Every year the Company fi nances overseas travels for
the whole staff to relax and visit the typical works and
architecture in developed countries in Southeast Asia such as
Singapore, Malaysia, Thailand, etc. This is also an opportunity
for staff to broaden knowledge, enhance vision and develop
professional skills.
EMPLOYEE POLICY
Khang Dien always makes every eff ort to improve the
average income of employees by reviewing and adjusting
salaries to the labor market’s medium level and the
Company’s business performance.
To motivate employees, the Company always rewards
employees having excellent performances or great
contributions to the Company’s development. The reward
policy at Khang Dien includes bonus on the occasion of
major holidays, year-end bonus, bonus for completion
ahead of schedule, etc.
Besides good salary, bonus and welfare, Khang Dien’s
employees benefi t from ESOP off ered to all employees who
are working in Khang Dien. This increases the cohesion and
motivation for employees and contributes to the general
development of the Company.
In human resource development, Khang Dien pays
attention to updating salary and bonus policy to ensure
growth in employee incomes on the basis of equity.
Accordingly, the employee income level tends to increase
compared to previous years.
SALARY AND BONUS POLICY
INSURANCE AND OTHER WELFARE POLICIES
100% KHANG DIEN’S EMPLOYEES ARE ENTITLED TO IMPORTANT POLICIES IN THE COLLECTIVE BARGAIN AGREEMENT.
through practical exchanges as well as makes the staff
more confi dent in proposing solutions. Management also
grasps the strengths and shortcomings of employees to
best use the strengths or to overcome the shortcomings.
Khang Dien constantly develops a professional,
enthusiastic, experienced and dedicated workforce. The
Company always focuses on building a workforce with not
only high professionalism but also good working attitude,
aiming toward a professional and eff ective team.
Khang Dien’s employees are always given favorable
conditions to train and promote. Succession planning is
conducted based on the assessment of current personnel
who have good capability and desire to work for the
Company in the long term. Accordingly, the Company
maintains programs to develop the potential personnel to
suitable management positions.
Khang Dien’s human resources development focuses on
talent management and is widely practiced in functional
departments, not just in Human Resource Department.
Even in unfavorable economic conditions, good human
resource management is the key factor for development
and maintaining competitive advantage for the Company.
Human resource development in Khang Dien is inherited
and developed. New and old values are intertwined, shared
and complemented with each other, creating the core
values of Khang Dien. This has made Khang Dien’s initial
breakthrough in the past years and will promote Khang
Dien’s overall strengths in new challenges.
The philosophy of Human Resource Management at Khang
Dien is based on daily interactions between management
and staff on how to achieve the best results. This helps
the staff to focus more on problem solving and also
creates opportunities for management to train employees
HUMAN RESOURCE DEVELOPMENT AT KHANG DIEN IS INHERITED AND DEVELOPED. NEW AND OLD VALUES ARE INTERTWINED, SHARED AND COMPLEMENTED WITH EACH OTHER, CREATING THE CORE VALUES OF THE COMPANY.
WORKFORCE RELATIONS
HUMAN RESOURCE DEVELOPMENT
116 117ANNUAL REPORT 2016 SUSTAINABLE DEVELOPMENT REPORT
In addition, Khang Dien constantly improves working
environment to enhance the cohesion of employees,
implements employee-centric welfare policies to increase
employee benefi ts, and acknowledges the contributions of
employees to the Company’s development.
Khang Dien always focuses on building a friendly working
environment for development. In 2016, the Company held
many activities for employees, including “Looking for Khang
Dien representative face” competitions, entertainment
programs on special occasions such as year-end party, etc.
In addition, the Company pays attention to recruitment
and training policies to meet the Company’s needs for
expansion and new development. For instance, in 2016
the policy on developing and attracting quality human
resources having deep practical relevant experience
suitable for the Company’s short-term and long-term
development strategies achieved certain results.
In 2016, Khang Dien recruited 50 new positions accross
departments. Recruitments were widely announced
throughout the Company’s communication system, via
the Company’s website and mass media to ensure equal
opportunities for all candidates and, thereby, to select the
employees with appropriate qualifi cations, good morals,
and long-term commitments with the Company. Each
position is subject to specifi c criteria and is recruited in
accordance with the Company’s procedures.
The policy on human resource training and development is
considered one of Khang Dien’s sustainable development
strategies. The Company encourages employees to
participate in training courses domestically and abroad to
improve their professional skills to meet the Company’s
needs. Training programs mainly focus on the practical
needs of the work such as project management, fi nancial
management, human resource management, etc. and soft
skills such as communication, presentation, negotiation.
HUMAN RESOURCE DEVELOPMENT (continued)
DEVELOP A STRONG, ACTIVE, CREATIVE WORKFORCE
118 119ANNUAL REPORT 2016 SUSTAINABLE DEVELOPMENT REPORT
KHANG DIEN ALWAYS CONSIDERS SOCIAL CONTRIBUTIONS AS A PART OF THE COMPANY’S RESPONSIBILITIES TO THE COMMUNITIES IN ORDER TO CONTRIBUTE TO THE LONG-TERM AND SUSTAINABLE DEVELOPMENT OF VIETNAM SOCIETY. KHANG DIEN DEMONSTRATES ITS SOCIAL RESPONSIBILITY THROUGH PRACTICAL ACTIONS SUCH AS CARING FOR THE COMPANY’S EMPLOYEES, CREATING STABLE JOBS, DEVELOPING SUSTAINABLE BUSINESS, AND CREATING A GOOD WORKING ENVIRONMENT SO THAT THE EMPLOYEES CAN ENJOY A STABLE AND HAPPY LIFE. WITH KHANG DIEN, THESE ACTIONS ALSO CONTRIBUTE TO THE BUILDING OF A CIVILIZED AND PROSPEROUS SOCIETY. THIS IS THE SOCIAL RESPONSIBILITY THAT THE COMPANY ALWAYS PRIORITIZES.
In addition, over the past years, Khang Dien has always been active in supporting the poors by sponsoring and encouraging
employees to participate in the programs of gratitude, poverty reduction, supporting the fl ood victims, etc. as well as
organizing charity activities to support the poors.
COMMUNITY - SOCIAL ACTIVITIES
Recognizing and promoting the spirit of “Living is giving, not only receiving for yourselves” and deeply
understanding the diffi culties of the people in An Thoi Dong Commune (Can Gio District - HCMC), Khang Dien
donated 155 gift sets with total value of VND116,500,000 to facilitate a prosperous Tet holidays for them.
1 JANUARY 10TH 2016
To encourage and maximize the spirit of solidarity and jointly building a wealthy and strong country of the
Vietnamese youth and students, Khang Dien supported Vietnam National University Ho Chi Minh City to
successfully organize “Green Summer Volunteer Campaign” - a meaningful activity that left deep impressions in
the heart of each participant.
2 JUNE 23RD 2016
Understanding and sharing with the unfortunate lives, Khang Dien donated VND50,000,000 to support The
Ho Chi Minh City Association for the Support of People with Disabilities and Orphans, motivating them to
overcome the diffi culties ahead.
6 JANUARY 10TH 2017
With the spirit of sharing, Khang Dien assigned staff s to visit and give 100 gift sets to 80 pupils and 20
disadvantaged families at the meeting hall of Thanh Hai Commune, Thanh Phu District, Ben Tre Province.
Moreover, Khang Dien representatives visited 10 families living under hardship and gave 10 gift sets with the
value of VND100,000,000.
3 OCTOBER 8TH 2016
Thanh Phong Commune is one of the most remote and poorest coastal communes in Ben Tre Province. Due to
inconvenient geographical conditions, especially salt and aluminum contamination, the people here cannot drill
water wells. They do not have fresh water and have to use rainwater for all living needs. Recognizing the needs
for clean water of the people in this commune, in 2016 Khang Dien donated 70 plastic water tanks with capacity
of 1,200 liters worth a value of VND118,300,000.
4 NOVEMBER 5TH 2016
With the spirit of solidarity, for many years, Khang Dien’s staff s have joined with the Company in volunteering
activities such as contributing VND50,000,000 to the Blind Association of Ben Tre Province, supporting social
security in My Phu Commune, etc.
5
IN THE FUTURE, THE COMPANY WILL ALWAYS BE INTERESTED IN COMMUNITY SERVICE ACTIVITIES. THE COMPANY WILL ACTIVELY DEVELOP THESE ACTIVITIES BOTH IN QUALITY AND QUANTITY TO BUILD A BETTER SOCIETY.
SOME TYPICAL ACTIVITIES
120 121ANNUAL REPORT 2016 SUSTAINABLE DEVELOPMENT REPORT
VND BILLIONOF TOTAL
CONSOLIDATED ASSETS
The year 2016 witnessed the
Company’s growth in revenue
and profi t, to be specifi c, revenue
increased by 274% and profi t after
tax belong to the parent company’s
shareholders increased by 47%
compared to the same period.
FINANCIALSTATEMENTS
THE COMPANY
Khang Dien House Trading and Investment Joint Stock Company (“the Company”) is a shareholding company incorporated under
the Law on Enterprise of Vietnam pursuant to the Business Registration Certifi cate No. 4103006559 issued by the Department of
Planning and Investment of Ho Chi Minh City on 2 May 2007, as amended.
The Company’s shares were listed on the Ho Chi Minh City Stock Exchange with code KDH in accordance with Decision
No. 11/QD-SGDHCM issued by the Ho Chi Minh City Stock Exchange on 21 January 2010.
The current principal activities of the Company are to trade and lease houses, receive land use rights to construct houses for sale
and lease, invest in construction of infrastructure in compliance with houses construction scheme to transfer land use rights,
undertake engineering and industrial construction works, and to provide real-estate consulting services.
The Company’s registered head offi ce is located at Room 801, 8th Floor, Centec Tower, 72-74 Nguyen Thi Minh Khai Street,
Ward 6, District 3, Ho Chi Minh City, Vietnam.
BOARD OF DIRECTORS
Members of the Board of Directors during the year and at the date of this report are:
Mr Ly Dien Son Chairman
Ms Nguyen Thi Dieu Phuong Member
Ms Mai Tran Thanh Trang Member
Mr Nguyen Dinh Bao Member
Mr Le Hoang Son Member
BOARD OF SUPERVISION
Members of the Board of Supervision during the year and at the date of this report are:
Ms Vuong Hoang Thao Linh Head
Mr Dao Cong Dat Member
Mr Hoang Manh Phong Member
MANAGEMENT
Members of the Management during the year and at the date of this report are:
Mr Ly Dien Son General Director
Ms Mai Tran Thanh Trang Deputy General Director
Mr Nguyen Dinh Bao Deputy General Director
Mr Nguyen Duc Trong Deputy General Director resigned on 15 September 2016
Ms Ngo Thi Mai Chi Deputy General Director
LEGAL REPRESENTATIVE
The legal representative of the Company during the year and at the date of this report is Mr Ly Dien Son.
Ms Ngo Thi Mai Chi is authorised by Mr Ly Dien Son to sign the consolidated fi nancial statements for the year ended 31
December 2016 in accordance with the Letter of Authorisation No. 03/2016/QD-KD dated 4 January 2016.
AUDITORS
The auditor of the Company is Ernst & Young Vietnam Limited.
Management of Khang Dien House Trading and Investment Joint Stock Company (“the Company”) is pleased to present
its report and the consolidated fi nancial statements of the Company and its subsidiaries (collectively referred to as “the
Group”) for the year ended 31 December 2016.
MANAGEMENT’S RESPONSIBILITY IN RESPECT OF THE CONSOLIDATED FINANCIAL STATEMENTS
Management is responsible for the consolidated fi nancial statements of each fi nancial year which give a true and fair view of
the consolidated fi nancial position of the Group and of the consolidated results of its operations and its consolidated cash
fl ows for the year. In preparing those consolidated fi nancial statements, management is required to:
• select suitable accounting policies and then apply them consistently;
• make judgements and estimates that are reasonable and prudent;
• state whether applicable accounting standards have been followed, subject to any material departures disclosed and
explained in the consolidated fi nancial statements; and
• prepare the consolidated fi nancial statements on the going concern basis unless it is inappropriate to presume that
the Group will continue its business.
Management is responsible for ensuring that proper accounting records are kept which disclose, with reasonable accuracy
at any time, the consolidated fi nancial position of the Group and to ensure that the accounting records comply with the
applied accounting system. It is also responsible for safeguarding the assets of the Group and hence for taking reasonable
steps for the prevention and detection of fraud and other irregularities.
Management confi rmed that it has complied with the above requirements in preparing the accompanying consolidated
fi nancial statements.
STATEMENT BY MANAGEMENT
Management does hereby state that, in its opinion, the accompanying consolidated fi nancial statements give a true and
fair view of the consolidated fi nancial position of the Group as at 31 December 2016 and of the consolidated results of its
operations and its consolidated cash fl ows for the year then ended in accordance with Vietnamese Accounting Standards,
Vietnamese Enterprise Accounting System and the statutory requirements relevant to preparation and presentation of
consolidated fi nancial statements.
For and on behalf of Management:
Ly Dien SonGeneral Director
23 March 2017
GENERAL INFORMATION REPORT OF MANAGEMENT
Ly Dien SonGeneral Director
23 March 2017
124 125ANNUAL REPORT 2016 FINANCIAL STATEMENTS
TO: THE SHAREHOLDERS OF KHANG DIEN HOUSE TRADING AND INVESTMENT JOINT STOCK COMPANY
We have audited the accompanying consolidated fi nancial statements of Khang Dien House Trading and Investment Joint
Stock Company (“the Company”) and its subsidiaries (collectively referred to as “the Group”) as prepared on 23 March
2017 and set out on pages 128 to 169, which comprise the consolidated balance sheet as at 31 December 2016, and the
consolidated income statement and consolidated cash fl ow statement for the year then ended and the notes thereto.
MANAGEMENT’S RESPONSIBILITY
Management is responsible for the preparation and fair presentation of these consolidated fi nancial statements in
accordance with Vietnamese Accounting Standards, Vietnamese Enterprise Accounting System and the statutory
requirements relevant to preparation and presentation of the consolidated fi nancial statements, and for such internal
control as management determines is necessary to enable the preparation and presentation of consolidated fi nancial
statements that are free from material misstatement, whether due to fraud or error.
AUDITORS’ RESPONSIBILITY
Our responsibility is to express an opinion on these consolidated fi nancial statements based on our audit. We conducted
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 fi nancial
statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the consolidated
fi nancial statements. The procedures selected depend on the auditors’ judgment, including the assessment of the
risks of material misstatement of the consolidated fi nancial statements, whether due to fraud or error. In making those
risk assessments, the auditor considers internal control relevant to the Group’s preparation and fair presentation of the
consolidated fi nancial statements in order to design audit procedures that are appropriate in the circumstances, but
not for the purpose of expressing an opinion on the eff ectiveness of the Group’s internal control. An audit also includes
evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by
management, as well as evaluating the overall presentation of the consolidated fi nancial statements.
We believe that the audit evidence we have obtained is suffi cient and appropriate to provide a basis for our audit opinion.
OPINION
In our opinion, the consolidated fi nancial statements give a true and fair view, in all material respects, of the consolidated
fi nancial position of the Group as at 31 December 2016, and of the consolidated results of its operations and its
consolidated cash fl ows for the year then ended in accordance with Vietnamese Accounting Standards, Vietnamese
Enterprise Accounting System and the statutory requirements relevant to preparation and presentation of the
consolidated fi nancial statements.
ERNST & YOUNG VIETNAM LIMITED
Le Quang Minh Deputy General Director Audit Practicing Registration Certifi cateNo. 0426-2013-004-1
Nguyen Thanh SangAuditorAudit Practicing Registration Certifi cate No. 1541-2013-004-1
Ho Chi Minh City, Vietnam
23 March 2017
INDEPENDENT AUDITORS’ REPORTReference: 60766189/18707863-HN
ERNST & YOUNG VIETNAM LIMITED
Le Quang Minh Nguyen Thanh Sang
126 127ANNUAL REPORT 2016 FINANCIAL STATEMENTS
VND’000
Code ASSETS Notes Ending balance Beginning balance
100 A. CURRENT ASSETS 7,241,327,083 7,635,495,663
110 I. Cash and cash equivalents 4 1,059,489,169 982,506,232
111 1. Cash 629,593,202 327,058,577
112 2. Cash equivalents 429,895,967 655,447,655
120 II. Short-term investment 510,000 44,010,000
123 1. Held-to-maturity investments 510,000 44,010,000
130 III. Current accounts receivable 1,485,091,191 653,811,135
131 1. Short-term trade receivables 5.1 724,960,167 140,792,661
132 2. Short-term advances to suppliers 5.2 469,339,840 437,470,264
136 3. Other short-term receivables 6 294,115,578 79,296,364
137 4. Provision for short-term doubtful receivables 5.1 (3,324,394) (3,748,154)
140 IV. Inventories 7 4,617,788,265 5,865,283,119
141 1. Inventories 4,617,788,265 5,865,283,119
150 V. Other current assets 78,448,458 89,885,177
151 1. Short-term prepaid expenses 24,403,102 19,048,337
152 2. Value-added tax deductible 46,951,778 70,561,966
153 3. Tax and other receivables from the State 7,093,578 274,874
200 B. NON-CURRENT ASSETS 695,584,455 907,442,132
210 I. Long-term receivables 85,444,073 102,943,172
211 1. Long-term trade receivables 5.1 74,741,495 87,740,748
212 2. Long-term advances to suppliers 5.2 5,640,101 7,776,784
216 3. Other long-term receivables 6 14,848,477 15,211,640
219 4. Provision for doubtful long-term receivables 5.1, 6 (9,786,000) (7,786,000)
220 II. Fixed assets 27,546,965 31,676,523
221 1. Tangible fi xed assets 8 27,488,654 31,570,764
222 Cost 88,206,671 87,696,935
223 Accumulated depreciation (60,718,017) (56,126,171)
227 2. Tangible fi xed assets 9 58,311 105,759
228 Cost 1,786,749 1,786,749
229 Accumulated amortisation (1,728,438) (1,680,990)
230 III. Investment properties 10 81,725,597 84,913,865
231 1. Cost 127,557,936 131,865,214
232 2. Accumulated depreciation (45,832,339) (46,951,349)
240 IV. Long-term assets in progress 272,425,330 439,962,190
242 1. Construction in progress 11 272,425,330 439,962,190
250 V. Long-term investments 12 208,584,801 226,571,499
252 1. Investments in associates 193,015,770 210,515,935
253 2. Investment in other entity 17,135,455 17,135,455
254 3. Provision for diminution in value of long-term investments (1,566,424) (1,079,891)
260 VI. Other long-term assets 19,857,689 21,374,883
261 1. Long-term prepaid expenses 3,797,804 4,467,670
262 2. Deferred tax assets 26.3 5,224,286 3,937,866
269 3. Goodwill 14 10,835,599 12,969,347
270 TOTAL ASSETS 7,936,911,538 8,542,937,795
VND’000
Code RESOURCES Notes Ending balance Beginning balance
300 C. LIABILITIES 3,539,099,200 4,369,914,071
310 I. Current liabilities 1,272,169,292 1,037,388,780
311 1. Short-term trade payables 15.1 80,103,089 48,948,085
312 2. Short-term advances from customers 15.2 670,114,574 500,980,970
313 3. Statutory obligations 16 179,043,886 105,562,090
314 4. Payables to employees 4,134,796 6,862,257
315 5. Short-term accrued expenses 17 50,391,260 50,044,620
318 6. Short-term unearned revenues 18 8,045,738 2,600,794
319 7. Other short-term payables 19 74,976,265 88,846,528
320 8. Short-term loans 20 194,351,572 218,819,525
322 9. Bonus and welfare fund 11,008,112 14,723,911
330 II. Non-current liabilities 2,266,929,908 3,332,525,291
331 1. Long-term trade payables 15.1 176,432 50,657,501
332 2. Long-term advances from customers 15.2 80,629,339 82,010,966
333 3. Long-term accrued expenses 17 88,832,160 106,699,017
336 4. Long-term unearned revenues 18 210,189,314 208,197,968
337 5. Other long-term liabilities 19 101,197,965 118,060,269
338 6. Long-term loans and debts 20 1,699,929,119 2,699,216,325
341 7. Deferred tax liabilities 26.3 84,038,381 65,914,288
342 8. Long-term provisions 1,937,198 1,768,957
400 D. OWNERS’ EQUITY 4,397,812,338 4,173,023,724
410 I. Capital 4,397,812,338 4,173,023,724
411 1. Share capital 21.1 2,339,998,920 1,800,000,000
411a - Shares with voting rights 2,339,998,920 1,800,000,000
412 2. Share premium 21.1 619,915,240 1,159,914,160
418 3. Investment and development fund 21.1 47,936,288 34,915,354
421 4. Undistributed earnings 21.1 468,978,713 262,238,257
421a - Undistributed earnings up to the end of prior year 97,203,991 8,880,729
421b - Undistributed earnings of current year 371,774,722 253,357,528
429 5. Non-controlling interests 920,983,177 915,955,953
440 TOTAL LIABILITIES AND OWNERS’ EQUITY 7,936,911,538 8,542,937,795
B01-DN/HN
CONSOLIDATED BALANCE SHEET as at 31 December 2016
Nguyen Tran Cam HienPreparer
Nguyen Quoc AnChief Accountant
Ngo Thi Mai ChiDeputy General Director
23 March 2017
128 129ANNUAL REPORT 2016 FINANCIAL STATEMENTS
VND’000
Code ITEMS Notes Current year Previous year
01 1. Revenue from sale of goods and rendering of services 22.1 3,938,432,166 1,051,919,567
02 2. Deductions 22.1 (6,789,172) (1,979,159)
10 3. Net revenue from sale of goods and rendering of services 22.1 3,931,642,994 1,049,940,408
11 4. Cost of goods sold and services rendered 23 (2,951,969,940) (712,293,831)
20 5. Gross profi t from sale of goods and rendering of services 979,673,054 337,646,577
21 6. Finance income 22.2 16,495,930 79,355,805
22 7. Finance expenses 24 (110,647,824) (59,149,887)
23 - In which: Interest expense (8,648,089) (8,513,956)
24 8. Share of profi t of associates 10,724,635 14,909,885
25 9. Selling expenses (173,123,320) (61,982,142)
26 10. General and administrative expenses (117,510,214) (76,331,379)
30 11. Operating profi t 605,612,261 234,448,859
31 12. Other income 25 13,804,653 98,911,387
32 13. Other expenses 25 (36,818,962) (16,099,085)
40 14. Other (loss) profi t 25 (23,014,309) 82,812,302
50 15. Accounting profi t before tax 582,597,952 317,261,161
51 16. Current corporate income tax expense 26.2 (160,404,227) (47,325,157)
52 17. Deferred income tax expense 26.3 (16,837,673) (1,492,591)
60 18. Net profi t after tax 405,356,052 268,443,413
61 19. Net profi t after tax attributable to shareholders of the parent 371,774,722 253,357,528
62 20. Net profi t after tax attributable to non-controlling interests 33,581,330 15,085,885
70 21. Basic earnings per share 28 1,59 1,02
71 22. Diluted earnings per share 28 1,59 1,02
VND’000
Code ITEMS Notes Current year Previous year
I. CASH FLOWS FROM OPERATING ACTIVITIES
01 Profi t before tax 582,597,952 317,261,161
Adjustments for:
02 Depreciation (including amortisation of goodwill)8, 9, 10,
149,847,117 2,800,949
03 Provision 2,062,773 1,513,155
05 Profi ts from investing activities (27,220,566) (193,071,126)
06 Interest expenses 24 8,648,089 8,513,956
08 Operating profi t before changes in working capital 575,935,365 137,018,095
09 (Increase) decrease in receivables (629,467,719) 368,351,152
10 Decrease (increase) in inventories 1,424,146,799 (454,600,244)
11 Increase in payables 109,012,971 210,496,836
12 Increase in prepaid expenses (4,684,899) (19,795,536)
14 Interest paid (145,678,130) (19,285,993)
15 Corporate income tax paid (92,391,951) (34,888,013)
17 Other cash outfl ows from operating activities (39,387,120) (2,466,657)
20 Net cash fl ows from operating activities 1,197,485,316 184,829,640
II. CASH FLOWS FROM INVESTING ACTIVITIES
21 Purchase of fi xed assets and other long-term assets (4,308,358) (7,924,229)
22 Proceeds from disposal of long-term assets - 2,596,182
24 Collection of term deposits 43,500,000 -
25Payments for investments in other entities (net of cash
acquired)- (2,111,911,540)
26 Proceeds from sale of investments in other entities - 111,080,340
27 Interest and dividends received 47,072,412 12,144,584
30 Net cash fl ows from (used in) investing activities 86,264,054 (1,994,014,663)
III. CASH FLOWS FROM FINANCING ACTIVITIES
31 Issuance of new shares 560,000 1,605,786,551
33 Drawdown of borrowings 1,737,593,712 2,798,056,427
34 Repayment of borrowings (2,818,920,145) (1,946,055,857)
36 Dividend paid 21.2 (126,000,000) (100,784,572)
40 Net cash fl ows (used in) from fi nancing activities (1,206,766,433) 2,357,002,549
B02-DN/HN B03-DN/HN
Nguyen Tran Cam HienPreparer
Nguyen Quoc AnChief Accountant
Ngo Thi Mai ChiDeputy General Director
23 March 2017
CONSOLIDATED INCOME STATEMENT for the year ended 31 December 2016
CONSOLIDATED CASH FLOW STATEMENT for the year ended 31 December 2016
130 131ANNUAL REPORT 2016 FINANCIAL STATEMENTS
CONSOLIDATED CASH FLOW STATEMENT for the year ended 31 December 2016 (continued)
VND’000
Code ITEMS Notes Current year Previous year
50 Net increase in cash and cash equivalents 76,982,937 547,817,526
60 Cash and cash equivalents at beginning of year 982,506,232 434,688,706
70 Cash and cash equivalents at end of year 4 1,059,489,169 982,506,232
1. CORPORATE INFORMATION
Khang Dien House Trading and Investment Joint Stock Company (“the Company”) is a shareholding company
incorporated under the Law on Enterprise of Vietnam pursuant to the Business Registration Certifi cate No. 4103006559
issued by the Department of Planning and Investment (“DPI”) of Ho Chi Minh City on 2 May 2007, as amended.
The Company’s shares were listed on the Ho Chi Minh City Stock Exchange with code KDH in accordance with
Decision No. 11/QD-SGDHCM issued by the Ho Chi Minh City Stock Exchange on 21 January 2010.
The current principal activities of the Company and its subsidiaries (“the Group”) are to trade and lease houses, receive
land use rights to construct houses for sale and lease, invest in construction of infrastructure in compliance with
houses construction scheme to transfer land use rights, undertake engineering and industrial construction works,
to provide real-estate consulting services, to trade industrial infrastructure, to provide construction consulting, site
clearance and brokerage on land properties.
The Company’s registered head offi ce is located at Room 801, 8th Floor, Centec Tower, 72-74 Nguyen Thi Minh Khai
Street, Ward 6, District 3, Ho Chi Minh City, Vietnam.
The number of Group’s employees as at 31 December 2016 was 339 (31 December 2015: 221).Nguyen Tran Cam HienPreparer
Nguyen Quoc AnChief Accountant
Ngo Thi Mai ChiDeputy General Director
23 March 2017
B03-DN/HN B09-DN/HN
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS as at 31 December 2016 and for the year then ended
132 133ANNUAL REPORT 2016 FINANCIAL STATEMENTS
B0
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134 135ANNUAL REPORT 2016 FINANCIAL STATEMENTS
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.9 2. BASIS OF PREPARATION
2.1 Accounting standards and system
The consolidated fi nancial statements of the Group expressed in thousands of Vietnam dong (“VND’000”), are
prepared in accordance with Vietnamese Enterprise Accounting System and Vietnamese Accounting Standards
issued by the Ministry of Finance as per:
• Decision No. 149/2001/QD-BTC dated 31 December 2001 on the Issuance and Promulgation of Four Vietnamese
Accounting Standards (Series 1);
• Decision No. 165/2002/QD-BTC dated 31 December 2002 on the Issuance and Promulgation of Six Vietnamese
Accounting Standards (Series 2);
• Decision No. 234/2003/QD-BTC dated 30 December 2003 on the Issuance and Promulgation of Six Vietnamese
Accounting Standards (Series 3);
• Decision No. 12/2005/QD-BTC dated 15 February 2005 on the Issuance and Promulgation of Six Vietnamese
Accounting Standards (Series 4); and
• Decision No. 100/2005/QD-BTC dated 28 December 2005 on the Issuance and Promulgation of Four Vietnamese
Accounting Standards (Series 5).
Accordingly, the accompanying consolidated fi nancial statements, including their utilisation are not designed for
those who are not informed about Vietnam’s accounting principles, procedures and practices and furthermore are
not intended to present the consolidated fi nancial position, consolidated results of operations and consolidated cash
fl ows in accordance with accounting principles and practices generally accepted in countries other than Vietnam.
2.2 Applied accounting documentation system
The Group’s applied accounting documentation system is the Voucher Journal and the General Journal system.
2.3 Fiscal year
The Group’s fi scal year applicable for the preparation of its consolidated fi nancial statements starts on 1 January and
ends on 31 December.
2.4 Accounting currency
The consolidated fi nancial statements are prepared in VND which is also the Group’s accounting currency.
2.5 Basis of consolidation
The consolidated fi nancial statements comprise the fi nancial statements of the Company and its subsidiaries for the
year ended 31 December 2016.
Subsidiaries are fully consolidated from the date of acquisition, being the date on which the Group obtains control,
and continued to be consolidated until the date that such control ceases.
The fi nancial statements of the subsidiaries are prepared for the same reporting year as the Company, using
consistent accounting policies.
All intra-company balances, income and expenses and unrealised gains or losses result from intra-company
transactions are eliminated in full.
Non-controlling interests represent the portion of profi t or loss and net assets not held by the Company’s shareholders
and are presented separately in the consolidated income statement and within equity in the consolidated balance
sheet, separately from the parent shareholders’ equity.
Impact of change in the ownership interest of a subsidiary, without a loss of control, is recorded in retained earnings.
B0
9-D
N/H
N
NO
TES
TO T
HE
CO
NSO
LID
ATED
FIN
AN
CIA
L ST
ATEM
ENTS
as
at 3
1 D
ecem
ber 2
016
and
for t
he y
ear t
hen
ende
d (c
ontin
ued)
136 137ANNUAL REPORT 2016 FINANCIAL STATEMENTS
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS as at 31 December 2016 and for the year then ended (continued) B09-DN/HN
3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
3.1 Cash and cash equivalents
Cash and cash equivalents comprise cash on hand, cash in banks and short-term, highly-liquid investments with
an original maturity of less than three months that are readily convertible into known amounts of cash and that are
subject to an insignifi cant risk of change in value.
3.2 Inventories
Property acquired or being constructed for sale in the ordinary course of business, rather than to be held for rental
or capital appreciation, is held as inventory property and is measured at the lower of cost and net realisable value.
Cost includes:
• Freehold and leasehold rights for land;
• Amounts paid to contractors for construction; and
• Borrowing costs, planning and design costs, costs of site preparation, professional fees for legal services,
property transfer taxes, construction overheads and other related costs
Net realisable value is the estimated selling price in the ordinary course of the business, based on market prices
at the reporting date and discounted for the time value of money if material, less costs to completion and the
estimated costs of sale.
The cost of inventory property recognised in profi t or loss on disposal is determined with reference to the specifi c
costs incurred on the property sold and an allocation of any non-specifi c costs based on the relative size of the
property sold.
3.3 Receivables
Receivables are presented in the consolidated fi nancial statements at the carrying amounts due from customers
and other debtors, after provision for doubtful debts.
The provision for doubtful debts represents amounts of outstanding receivables at the balance sheet date which
are doubtful of being recovered. Increases or decreases to the provision balance are recorded as general and
administrative expense in the consolidated income statement.
3.4 Fixed assets
Fixed assets are stated at cost less accumulated depreciation and amortisation.
The cost of a fi xed asset comprises its purchase price and any directly attributable costs of bringing the fi xed asset
to working condition for its intended use.
Expenditures for additions, improvements and renewals are added to the carrying amount of the assets and
expenditures for maintenance and repairs are charged to the consolidated income statement as incurred.
When fi xed assets are sold or retired, any gain or loss resulting from their disposal (the diff erence between the net
disposal proceeds and the carrying amount) is included in the consolidated income statement.
3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
3.5 Leased assets
The determination of whether an arrangement is, or contains a lease is based on the substance of the arrangement
at inception date and requires an assessment of whether the fulfi lment of the arrangement is dependent on the use
of a specifi c asset and the arrangement conveys a right to use the asset.
Where the Group is the lessee
Rentals under operating leases are charged to the consolidated income statement on a straight-line basis over the
lease term.
Where the Group is the lessor
Assets subject to operating leases are included as the Group’s investment properties in the consolidated balance
sheet. Initial direct costs incurred in negotiating an operating lease are recognised in the consolidated income
statement as incurred.
Lease income is recognised in the consolidated income statement on a straight-line basis over the lease term.
3.6 Depreciation and amortisation
Depreciation of tangible fi xed assets and amortisation of intangible assets are calculated on a straight-line basis over
the estimated useful life of each asset as follows:
Building and structures 10 - 20 years
Machinery and equipment 3 - 10 years
Means of transportation 6 - 10 years
Offi ce equipment 3 years
ISO certifi cate and computer software 3 - 10 years
3.7 Investment properties
Investment properties are stated at cost including transaction costs less accumulated depreciation.
Subsequent expenditure relating to an investment property that has already been recognized is added to the net
book value of the investment property when it is probable that future economic benefi ts, in excess of the originally
assessed standard of performance of the existing investment property, will fl ow to the Group.
Depreciation of investment properties is calculated on a straight-line basis over the estimated useful life of each
asset as follows:
Infrastructure 25 – 46 years
Investment properties are derecognised when either they have been disposed of or when the investment properties
are permanently withdrawn from use and no future economic benefi t is expected from its disposal. The diff erence
between the net disposal proceeds and the carrying amount of the assets is recognised in the consolidated income
statement in the year of retirement or disposal.
Transfers are made to investment properties when, and only when, there is a change in use, evidenced by
ending of owner-occupation, commencement of an operating lease to another party or ending of construction
or development. Transfers are made from investment properties when, and only when, there is change in use,
evidenced by commencement of owner-occupation or commencement of development with a view to sale. The
transfer from investment property to owner-occupied property or inventories does not change the cost or the
carrying value of the property for subsequent accounting at the date of change in use.
138 139ANNUAL REPORT 2016 FINANCIAL STATEMENTS
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS as at 31 December 2016 and for the year then ended (continued) B09-DN/HN
3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
3.8 Borrowing costs
Borrowing costs consist of interest and other costs that the Group incurs in connection with the borrowing of funds.
Borrowing costs are recorded as expense during the year in which they are incurred, except to the extent that they
are capitalized as explained in the following paragraph.
Borrowing costs that are directly attributable to the acquisition, construction or production of an asset that
necessarily take a substantial period of time to get ready for its intended use or sale are capitalized as part of the cost
of the respective asset.
3.9 Prepaid expenses
Prepaid expenses are reported as short-term or long-term prepaid expenses on the consolidated balance sheet and
amortised over the period for which the amounts are paid or the period in which economic benefi ts are generated
in relation to these expenses.
3.10 Business combinations and goodwill
Business combinations are accounted for using the purchase method. The cost of a business combination is
measured as the fair value of assets given, equity instruments issued and liabilities incurred or assumed at the date
of exchange plus any costs directly attributable to the business combination. Identifi able assets and liabilities and
contingent liabilities assumed in a business combination are measured initially at fair values at the date of business
combination.
Goodwill acquired in a business combination is initially measured at cost being the excess of the cost the business
combination over the Group’s interest in the net fair value of the acquiree’s identifi able assets, liabilities and contingent
liabilities. If the cost of a business combination is less than the fair value of the net assets of the subsidiary acquired,
the diff erence is recognized directly in the consolidated income statement. After initial recognition, goodwill is
measured at cost less any accumulated amortization. Goodwill is amortized over 10-year period on a straight-line
basis. The parent company conducts the periodical review for impairment of goodwill of investment in subsidiaries.
If there are indicators of impairment loss incurred is higher than the yearly allocated amount of goodwill on the
straight-line basis, the higher amount will be recorded in the consolidated income statement.
3.11 Investments
Investments in associates
The Group’s investment in its associate is accounted for using the equity method of accounting. An associate is an
entity in which the Group has signifi cant infl uence that is neither subsidiaries nor joint venture. The Group generally
deems they have signifi cant infl uence if they have from and above 20% of the voting rights.
Under the equity method, the investment is carried in the consolidated balance sheet at cost plus post acquisition
changes in the Group’s share of net assets of the associates. Goodwill arising on acquisition of the associate is
included in the carrying amount of the investment. Goodwill is not amortised and subject to annual review for
impairment. The consolidated income statement refl ects the share of the post-acquisition results of operation of
the associate.
3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
3.11 Investments (continued)
Investments in associates (continued)
The share of post-acquisition profi t (loss) of the associates is presented on the face of the consolidated income
statement and its share of post-acquisition movements in reserves is recognized in reserves. The cumulative post-
acquisition movements are adjusted against the carrying amount of the investment. Dividend received from
associates reduces the carrying amount of the investment.
The fi nancial statements of the associates are prepared for the same reporting year and use the same accounting
policies as the Group. Where necessary, adjustments are made to bring the accounting policies in line with those
of the Group.
Investments in other entities
Investments in other entities are stated at their acquisition costs.
Provision for investments
Provision is made for any diminution in value of the investments in capital of other entities at the balance sheet
date in accordance with the guidance under Circular No. 228/2009/TT-BTC dated 7 December 2009 and Circular
No. 89/2013/TT-BTC dated 28 June 2013 issued by the Ministry of Finance. Increases or decreases to the provision
balance are recorded as fi nance expense in the consolidated income statement.
Held-to-maturity investments
Held-to-maturity investments are stated at their acquisition costs. After initial recognition, held-to-maturity
investments are measured at recoverable amount. Any impairment loss incurred is recognised as expense in the
consolidated fi nancial statements and deducted against the value of such investments.
3.12 Payables and accruals
Payables and accruals are recognised for amounts to be paid in the future for goods and services received, whether
or not billed to the Group.
3.13 Accrual for severance pay
The severance pay to employee is accrued at the end of each reporting year for all employees who have been in
service for more than 12 months up to 31 December 2008 at the rate of one-half of the average monthly salary
for each year of service up to 31 December 2008 in accordance with the Labour Code and related implementing
guidance. The average monthly salary used in this calculation is revised at the end of each reporting year following
the average monthly salary of the 6-month period up to the reporting date. Increases or decreases to the accrued
amount other than actual payment to employee will be taken to the consolidated income statement.
This accrued severance pay is used to settle the termination allowance to be paid to employee upon termination of
their labour contract following Article 48 of the Labour Code.
140 141ANNUAL REPORT 2016 FINANCIAL STATEMENTS
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS as at 31 December 2016 and for the year then ended (continued) B09-DN/HN
3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
3.14 Appropriation of net profits
Net profi t after tax (excluding negative goodwill arising from a bargain purchase) is available for appropriation to
shareholders after approval in the annual general meeting, and after making appropriation to reserve funds in
accordance with the Group’s Charter and Vietnam’s regulatory requirements.
The Group maintains the following reserve funds which are appropriated from the Group’s net profi t as proposed by
the Board of Directors and subject to approval by shareholders at the annual general meeting:
• Investment and development fund
This fund is set aside for use in the Group’s expansion of its operation or of in-depth investment.
• Bonus and welfare fund
This fund is set aside for the purpose of pecuniary rewarding and encouraging, common benefi ts and improvement
of the employees’ benefi ts, and presented as a liability on the consolidated balance sheet.
3.15 Revenue recognition
Revenue is recognised to the extent that it is probable that the economic benefi ts will fl ow to the Group and the
revenue can be reliably measured. Revenue is measured at the fair value of the consideration received or receivable,
excluding trade discount, rebate and sales return. The following specifi c recognition criteria must also be met before
revenue is recognised:
Sale of completed property
A property is regarded as sold when the signifi cant risks and returns have been transferred to the buyer, which is
normally on unconditional exchange of contracts. For conditional exchanges, sales are recognized only when all the
signifi cant conditions are satisfi ed.
Sale of industrial plots and related infrastructure
When the lease period is more than 90% of the useful life of the assets, the Company recognised the sales from lease
of land lots and related infrastructures at the entire rental amount received in advance when all these conditions
are met:
a. The lessee is not entitled to cancel the lease contract and the lessor has no obligation to repay the amount
received in advance in all cases and in all forms;
b. The amount received in advance from the lease is not less than 90% of the total lease amount expected to get
under the contract during the lease term and the lessee must pay the entire amount of lease within 12 months
from the beginning of the lease;
c. Almost all the risks and benefi ts associated with ownership of the leased asset are transferred to the lessee;
d. The Company must estimate relatively the full cost of the lease.
Rental income arising from operating leases is recorded to the consolidated income statement and accounted for
on a straight-line basis over the terms of the lease.
3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
3.15 Revenue recognition (continued)
Rendering of services
Revenues are recognised upon completion of the services provided.
Interest
Revenue is recognised as the interest accrues (taking into account the eff ective yield on the asset) unless collectability
is in doubt.
Dividend
Income is recognised when the Group’s entitlement as an investor to receive the dividend is established.
3.16 Taxation
Current income tax
Current income tax assets and liabilities for the current and prior periods are measured at the amount expected to
be recovered from or paid to the taxation authorities. The tax rates and tax laws used to compute the amount are
those that are enacted as at the balance sheet date.
Current income tax is charged or credited to the consolidated income statement, except when it relates to items
recognised directly to equity, in which case the current income tax is also dealt with in equity.
Current income tax assets and liabilities are off set when there is a legally enforceable right for the Group to off set
current tax assets against current tax liabilities and when the Group intends to settle its current tax assets and
liabilities on a net basis.
Deferred tax
Deferred tax is provided using the liability method on temporary diff erences at the balance sheet date between the
tax base of assets and liabilities and their carrying amount for fi nancial reporting purposes.
Deferred tax liabilities are recognised for all taxable temporary diff erences.
Deferred tax assets are recognised for all deductible temporary diff erences, carried forward unused tax credit and
unused tax losses, to the extent that it is probable that taxable profi t will be available against which deductible
temporary diff erences, carried forward unused tax credit and unused tax losses can be utilised.
Deferred income tax assets and liabilities are measured at the tax rates that are expected to apply in the year when
the asset is realised or the liability is settled based on tax rates and tax laws that have been enacted at the balance
sheet date.
Deferred tax is charged or credited to the consolidated income statement, except when it relates to items recognised
directly to equity, in which case the deferred tax is also dealt with in the equity account.
142 143ANNUAL REPORT 2016 FINANCIAL STATEMENTS
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS as at 31 December 2016 and for the year then ended (continued) B09-DN/HN
3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
3.16 Taxation (continued)
Deferred tax (continued)
Deferred tax assets and liabilities are off set when there is a legally enforceable right for the Group to off set current
tax assets against current tax liabilities and when they relate to income taxes levied on the same taxable entity by
the same taxation authority.
The carrying amount of deferred tax assets is reviewed at each balance sheet date and reduced to the extent that
it is no longer probable that suffi cient taxable profi t will be available to allow all or part of the deferred tax asset to
be utilised. Previously unrecognised deferred income tax assets are re-assessed at each balance sheet date and are
recognised to the extent that it has become probable that future taxable profi t will allow the deferred tax assets to
be recovered.
3.17 Earnings per share
Basic earnings per share amount is computed by dividing net profi t for the year attributable to ordinary shareholders
of the Group (after adjusting for the bonus and welfare fund) by the weighted average number of ordinary shares
outstanding during the year.
Diluted earnings per share amounts are calculated by dividing the net profi t after tax attributable to ordinary equity
holders of the Group (after adjusting for interest on the convertible preference shares) by the weighted average
number of ordinary shares outstanding during the year plus the weighted average number of ordinary shares that
would be issued on conversion of all the dilutive potential ordinary shares into ordinary shares.
3.18 Segment information
A segment is a component determined separately by the Group which is engaged in providing products or related
services (business segment), or providing products or services in a particular economic environment (geographical
segment), that is subject to risks and returns that are diff erent from those of other segments. As the Group’s revenue
and profi t are derived mainly from real estate business in Vietnam while other sources of revenue are not material as
a whole, the management accordingly believed that the Group operates in a sole business segment of real estate.
Geographical segment of the Group is in Vietnam only. Accordingly, segment information is not presented.
4. CASH AND CASH EQUIVALENTS
VND’000
Ending balance Beginning balance
Cash on hand 5,407,855 3,462,062
Cash in banks 624,185,347 323,596,515
Cash equivalents (*) 429,895,967 655,447,655
TOTAL 1,059,489,169 982,506,232
(*) Cash equivalents represent short-term bank deposits with maturity of less than three months and earn interest
at the rate from 4.3% to 6.4% per annum.
5. TRADE RECEIVABLES AND ADVANCES TO SUPPLIERS
5.1 Trade receivables
VND’000
Ending balance Beginning balance
Short-term 724,960,167 140,792,661
Trade receivables from sales of residential land properties to customers 723,683,404 139,515,898
- Thuan Phat Real Estate Company Limited 392,178,240 -
- Cuu Long Real Estate Company Limited 94,083,090 -
- Others 237,422,074 139,515,898
Trade receivables from a related party (Note 27) 1,276,763 1,276,763
Long-term 74,741,495 87,740,748
Trade receivables from customers 74,741,495 87,740,748
TOTAL 799,701,662 228,533,409
Provision for short-term doubtful receivables (3,324,394) (3,748,154)
Provision for long-term doubtful receivables (2,000,000) -
NET 794,377,268 224,785,255
5.2 Advances to suppliers
VND’000
Ending balance Beginning balance
Short-term 469,339,840 437,470,264
Advances to subcontractors 341,367,875 358,601,186
- Tay Nam Real Estate Company Limited 117,985,000 -
- Others 223,382,875 358,601,186
Advance for transfer of land use rights 127,971,965 78,869,078
Long-term 5,640,101 7,776,784
Advances to subcontractors 5,640,101 7,776,784
TOTAL 474,979,941 445,247,048
144 145ANNUAL REPORT 2016 FINANCIAL STATEMENTS
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS as at 31 December 2016 and for the year then ended (continued) B09-DN/HN
6. OTHER RECEIVABLES
VND’000
Ending balance Beginning balance
Short-term 294,115,578 79,296,364
Receivables under Investment Cooperation Contracts (“ICC”) 232,635,200 -
- Dong Tien Real Estate Company Limited (“Dong Tien”) (*) 226,000,000 -
- Thuan Thanh Real Estate Trading Investment Company Limited
(“Thuan Thanh”) (**)
6,635,200 -
Provisional corporate income tax (***) 54,963,918 61,717,678
Advance to employees 4,149,889 4,961,477
Others 2,366,571 12,617,209
Long-term 14,848,477 15,211,640
Advances for development of projects 11,634,814 11,634,814
Others 3,213,663 3,576,826
TOTAL 308,964,055 94,508,004
Provision for long-term doubtful receivables (7,786,000) (7,786,000)
NET 301,178,055 86,722,004
(*) This represents the investment to Dong Tien to develop a project at Phu Huu Ward, District 9, Ho Chi Minh City
on an area of 35,007 m2 in accordance with ICC No. 003/2016/HDHT/TMINH-DT dated 14 December 2016.
(**) This represents the investment to Thuan Thanh to develop a residential area project at Phuoc Long B Ward,
District 9, Ho Chi Minh City on an area of 1,731.8 m2 (“Feliza project”) in accordance with ICC No. 001/2016/
HDHT/TT-KD dated 23 March 2016.
(***) In accordance with Circular No. 96/2014/TT-BTC issued by the Ministry of Finance on 22 June 2015 which
provides guidelines for implementation of the Law on Corporate Income Tax, the Company is entitled to
provisionally pay tax at the rate of 20% on turnover received by cash from its customers less corresponding
expenses or at the rate of 1% on cash collections from its customers pending the appropriate recognition of
sales and cost of sales from those transactions.
7. INVENTORIES
VND’000
Ending balance Beginning balance
Properties under development (*) 4,605,781,609 5,853,216,021
Merchandise goods 11,685,745 11,780,466
Raw material 320,911 286,632
TOTAL 4,617,788,265 5,865,283,119
(*) Properties under development comprise on-going projects to develop the following residential land properties:
VND’000
Ending balance Beginning balance
BCCI - Tan Tao Residential Zone 728,929,323 577,368,750
Khong Gian Xanh Phu Huu (“Lucasta”) (**) 462,103,047 645,075,242
Song Lap Phu Huu (“Melosa”) (**) 436,892,411 930,704,865
BCCI - 11A Residential Zone 393,794,690 380,387,975
Thap Muoi Phuoc Long B (**) 313,081,174 134,532,635
Binh Trung - Binh Trung Dong 263,553,900 246,000,577
Thanh Phuc Building (**) 234,795,339 214,680,523
Quoc Te Phu Huu (**) (“The Venica”) 227,559,493 257,785,201
Thanh Phuc Phu Huu (**) 219,944,864 171,893,431
BCCI - 2nd Resettement Zone Phong Phu 197,782,000 197,782,000
BCCI - An Duong Vuong 197,196,000 196,646,000
BCCI - 4th Resettlement Zone Phong Phu (**) 193,066,198 461,770,747
Kim Phat Phu Huu 182,679,132 -
Saphire Phu Huu (**) 172,941,641 160,158,691
Gia Phuoc Phu Huu (**) 122,287,602 86,308,339
Tri Minh Phu Huu (**) (“Mega Village”) 85,259,634 187,511,538
Khang Dien Long Truong 10,432,122 254,542,941
BCCI - An Lac Building - 390,559,972
Others 163,483,039 359,506,594
TOTAL 4,605,781,609 5,853,216,021
(**) Parts of these projects were pledged to obtain loans from banks (Note 20).
146 147ANNUAL REPORT 2016 FINANCIAL STATEMENTS
8.
TAN
GIB
LE F
IXED
ASS
ETS
VN
D’0
00
Bu
ildin
gs
and
stru
ctu
res
Mac
hin
ery
and
equ
ipm
ent
Mea
ns
of
tran
spor
tati
on
Offi
ce
equ
ipm
ent
Tota
l
Cost
:
Be
gin
nin
g b
ala
nce
24
,47
9,4
96
38
,35
4,4
87
20
,32
2,4
63
4,5
40
,48
98
7,6
96
,93
5
Ne
wly
pu
rch
ase
d-
47
2,6
46
-3
7,0
90
50
9,7
36
En
din
g b
ala
nce
24
,47
9,4
96
38
,82
7,1
33
20
,32
2,4
63
4
,57
7,5
79
8
8,2
06
,67
1
In w
hic
h:
Fully
dep
reci
ate
d3
,40
0,5
13
1
7,7
28
,35
4
8,6
84
,28
1
4,0
88
,28
9
33
,90
1,4
37
Acc
umul
ated
dep
reci
atio
n:
Be
gin
nin
g b
ala
nce
9,6
16
,52
73
0,1
97
,17
81
2,1
19
,25
94
,19
3,2
07
56
,12
6,1
71
De
pre
cia
tio
n f
or
the
ye
ar
91
1,2
80
1,9
91
,54
01
,43
0,4
36
25
8,5
90
4,5
91
,84
6
En
din
g b
ala
nce
10
,52
7,8
07
32
,18
8,7
18
13
,54
9,6
95
4,4
51
,79
76
0,7
18
,01
7
Net
car
ryin
g am
ount
:
Be
gin
nin
g b
ala
nce
14
,86
2,9
69
8,1
57
,30
98
,20
3,2
04
34
7,2
82
31
,57
0,7
64
En
din
g b
ala
nce
13
,95
1,6
89
6,6
38
,41
56
,77
2,7
68
1
25
,78
2
27
,48
8,6
54 9. INTANGIBLE FIXED ASSETS
VND’000
ISO Certifi cateAccounting
softwareTotal
Cost:
Beginning and ending balances 331,745 1,455,004 1,786,749
In which:
Fully amortised 331,745 1,312,660 1,644,405
Accumulated amortisation:
Beginning balance 331,745 1,349,245 1,680,990
Amortisation for the year - 47,448 47,448
Ending balance 331,745 1,396,693 1,728,438
Net carrying amount:
Beginning balance - 105,759 105,759
Ending balance - 58,311 58,311
10. INVESTMENTS PROPERTIES
VND’000
Infrastructure
Cost:
Beginning balance 131,865,214
Sold, disposed (4,307,278)
Ending balance 127,557,936
Accumulated depreciation:
Beginning balance 46,951,349
Depreciation for the year 3,074,075
Sold, disposed (4,193,085)
Ending balance (45,832,339)
Net carrying amount:
Beginning balance 84,913,865
Ending balance 81,725,597
The fair values of the investment property as at the balance sheet date had not yet been formally assessed and
determined, but the management believed that it was much higher than the property’s carrying values considering
that the investment property (an industrial park) has been almost fully rented out as at the balance sheet date.
B0
9-D
N/H
N
NO
TES
TO T
HE
CO
NSO
LID
ATED
FIN
AN
CIA
L ST
ATEM
ENTS
as
at 3
1 D
ecem
ber 2
016
and
for t
he y
ear t
hen
ende
d (c
ontin
ued)
148 149ANNUAL REPORT 2016 FINANCIAL STATEMENTS
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS as at 31 December 2016 and for the year then ended (continued) B09-DN/HN
11. CONSTRUCTION IN PROGRESS
VND’000
Ending balance Beginning balance
Le Minh Xuan Expansion Industrial Park 222,392,518 234,647,054
Small-scale industrial zone 48,379,548 -
Project 510 Kinh Duong Vuong - 205,032,743
Others 1,653,264 282,393
TOTAL 272,425,330 439,962,190
12. LONG-TERM INVESTMENTS
VND’000
Ending balance Beginning balance
Investments in associates (Note 12.1) 193,015,770 210,515,935
Investments in other entities (Note 12.2) 17,135,455 17,135,455
TOTAL 210,151,225 227,651,390
Provision for long-term investments (1,566,424) (1,079,891)
NET 208,584,801 226,571,499
12.1 Investments in associates
Ending balance Beginning balance
VND’000 % of
interest
% of voting
right
VND’000 % of
interest
% of voting
right
Espace Big C An Lac 162,177,983 11.46 20 171,242,021 11.46 20
Green Buildings Company
Limited
20,009,719 11.46 20 20,011,153 11.46 20
EB New City Company
Limited
5,965,307 11.46 20 14,400,000 11.46 20
Saigon Asia Investment
and Realty Corporation
4,862,761 28.66 50 4,862,761 28.66 50
TOTAL 193,015,770 210,515,935
12. LONG-TERM INVESTMENTS (CONTINUED)
12.1 Investments in associates (continued)
Espace Big C An Lac (“Big C”) is a limited liability company with two or more members established in accordance
with Investment License No. 2013/GP issued by the Ministry of Planning and Investment on 16 December 1997, as
amended. Big C’s registered offi ce is located at No. 1231 National Road 1A, Quarter 5, Binh Tri Dong Ward, Binh Tan
District, Ho Chi Minh City, Vietnam. Big C’s principal activity is to develop and operate supermarket chains with retail
and wholesale shops, warehouses and processing workshops. 20% of capital contribution in Big C were pledged to
obtain loans from banks (Note 20.2).
Green Buildings Company Limited (“GB”) is a limited liability company with two or more members established in
accordance with Investment Certifi cate No. 411022000448 dated 14 August 2010 issued by the Ho Chi Minh City
People’s Committee. GB’s registered offi ce is located at No. 1231 National Road 1A, Quarter 5, Binh Tri Dong Ward,
Binh Tan District, Ho Chi Minh City, Vietnam. GB’s principal activity is to develop an apartment project for sale named
Green Building in Ho Chi Minh City.
EB New City Company Limited is a limited liability company with two or more members established in accordance
with Investment License No. 0313517445 issued by the Ministry of Planning and Investment on 2 November 2015, as
amended. EB New City’s registered offi ce is located at Lot A, City Land Residential, No. 99 Nguyen Thi Thap Street,
Tan Phu Ward, District 7, Vietnam. EB New City Company’s principal activity is to develop and operate supermarket
chains with retail and wholesale shops, warehouses and processing workshops.
Saigon Asia Investment and Realty Corporation (“Saigon Asia Real Estate”) is a joint stock company established in
accordance with Business Registration Certifi cate No. 4103007346 issued by the DPI of Ho Chi Minh City on 19 July
2007, as amended. Saigon Asia Real Estate’s registered offi ce is located at No. 196 Tran Hung Dao Street, Nguyen Cu
Trinh Ward, District 1, Ho Chi Minh City, Vietnam. Saigon Asia Real Estate’s principal activities are to invest and trade
real estate properties.
150 151ANNUAL REPORT 2016 FINANCIAL STATEMENTS
12.
LON
G-T
ERM
INVE
STM
ENTS
(CO
NTI
NU
ED)
12.1
In
vest
men
ts in
ass
ocia
tes
(con
tinue
d)
De
tails
of
the
se in
vest
me
nts
in a
sso
ciat
es
at t
he
bal
ance
sh
ee
t d
ate
are
pre
sen
ted
as
follo
ws:
VN
D’0
00
Saig
on A
sia
Rea
l
Esta
teB
ig C
GB
EBTo
tal
Cost
of i
nves
tmen
t:
Be
gin
nin
g a
nd
en
din
g b
ala
nce
4,0
00
,00
05
7,1
97
,12
82
0,0
60
,31
21
4,4
00
,00
09
5,6
57
,44
0
Acc
umul
ated
sha
re in
pos
t-ac
quis
ition
pro
fi t (l
oss)
of t
he
asso
ciat
es:
Be
gin
nin
g b
ala
nce
86
2,7
61
1
14
,04
4,8
93
(4
9,1
59
)-
11
4,8
58
,49
5
Shar
e in
po
st-a
cqu
isit
ion
pro
fi t
(loss
) of t
he
ass
oci
ate
s fo
r th
e y
ear
-1
9,1
60
,76
2(1
,43
4)
(8,4
34
,69
3)
10
,72
4,6
35
Div
ide
nd
re
ceiv
ed
-(2
8,2
24
,80
0)
--
(28
,22
4,8
00
)
En
din
g b
ala
nce
86
2,7
61
10
4,9
80
,85
5(5
0,5
93
)(8
,43
4,6
93
)9
7,3
58
,33
0
Carr
ying
am
ount
:
Be
gin
nin
g b
ala
nce
4,8
62
,76
11
71
,24
2,0
21
20
,01
1,1
53
14
,40
0,0
00
21
0,5
15
,93
5
En
din
g b
ala
nce
4,8
62
,76
11
62
,17
7,9
83
20
,00
9,7
19
5,9
65
,30
71
93
,01
5,7
70 12. LONG-TERM INVESTMENTS (CONTINUED)
12.2 Investments in other entities
Ending balance Beginning balance
QuantityValue
(VND’000)Quantity
Value
(VND’000)
Investments in securities
Thu Duc Housing Development
Corporation (“TDH”)
19,354 1,312,145 15,300 1,312,145
Ho Chi Minh City Development Joint
Stock Bank (“HDB”)
12,331 123,310 12,331 123,310
Other long-term investments
CVH Spring Company Limited (“CVH”) 14,000,000 14,000,000
Others 1,700,000 1,700,000
TOTAL 17,135,455 17,135,455
Provision for long-term investments (1,566,424) (1,079,891)
NET 15,569,031 16,055,564
13. CAPITALIZED BORROWING COSTS
During the year, the Group capitalized borrowing costs amounting to VND’000 119,080,671 (for the year ended 31
December 2015: VND’000 198,076,527). These costs relate to borrowings obtained to fi nance the development and
construction of the Group’s property projects.
14. GOODWILL
The movements in goodwill during the year are as follows:
VND’000
Cost:
Beginning and ending balances 34,008,874
Accumulated amortisation:
Beginning balance 21,039,527
Amortisation for the year 2,133,748
Ending balance 23,173,275
Net carrying amount:
Beginning balance 12,969,347
Ending balance 10,835,599
B0
9-D
N/H
N
NO
TES
TO T
HE
CO
NSO
LID
ATED
FIN
AN
CIA
L ST
ATEM
ENTS
as
at 3
1 D
ecem
ber 2
016
and
for t
he y
ear t
hen
ende
d (c
ontin
ued)
152 153ANNUAL REPORT 2016 FINANCIAL STATEMENTS
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS as at 31 December 2016 and for the year then ended (continued) B09-DN/HN
15. TRADE PAYABLES AND ADVANCES FROM CUSTOMERS
15.1 Trade payables
VND’000
Ending balance Beginning balance
Short-term 80,103,089 48,948,085
Construction Corporation No. 1 29,999,851 -
Coteccons Construction Joint Stock Company 13,178,064 -
Others 36,925,174 48,948,085
Long-term 176,432 50,657,501
Trade payables to suppliers 176,432 50,657,501
TOTAL 80,279,521 99,605,586
15.2 Advances from customers
VND’000
Ending balance Beginning balance
Short-term 670,114,574 500,980,970
Advances received for transfer of land lots, houses (*) 598,092,521 500,980,970
Advance received for disposal of investment (**) 50,000,000 -
Advance received for transfer of land use right (***) 22,022,053 -
Long-term 80,629,339 82,010,966
Advances received for transfer of land lots, houses (*) 80,629,339 82,010,966
TOTAL 750,743,913 582,991,936
(*) This represents advances from customers who buy land lots and houses for which the Group has issued the
corresponding invoices.
(**) This represents advance received for disposal of investment in Green Building Company Limited in accordance
with decision 130/NQ.BCCI.HDQT.
(***) This represented advance received from Tan Thuan Industrial Promotion Company Limited for transfer of
land use right at Phong Phu 4 residential project in accordance with contract No 197/HDNT.TTCNQSDĐ/
PP4/2011 dated 07 July 2011.
16. STATUTORY OBLIGATIONS
VND’000
Ending balance Beginning balance
Corporate income tax 134,897,032 67,088,792
Value-added tax 42,732,913 28,054,274
Personal income tax 1,314,934 10,030,419
Others 99,007 388,605
TOTAL 179,043,886 105,562,090
17. ACCRUED EXPENSES
VND’000
Ending balance Beginning balance
Short-term 50,391,260 50,044,620
Project development costs 26,961,072 18,598,917
Interest expense 10,181,899 28,131,269
Others 13,248,289 3,314,434
Long-term 88,832,160 106,699,017
Project development costs 88,832,160 106,699,017
TOTAL 139,223,420 156,743,637
18. UNEARNED REVENUES
VND’000
Ending balance Beginning balance
Short-term 8,045,738 2,600,794
Advances received for land leases of Le Minh Xuan Industrial Park 7,611,496 2,453,136
Others 434,242 147,658
Long-term 210,189,314 208,197,968
Advances received for land leases of Le Minh Xuan Industrial Park 210,189,314 208,197,968
TOTAL 218,235,052 210,798,762
19. OTHER PAYABLES
VND’000
Ending balance Beginning balance
Short-term 74,976,265 88,846,528
Maintenance fund 41,171,703 17,724,088
Dividend payables 2,811,837 38,158,302
Deposits received 4,990,252 3,700,340
Others 26,002,473 29,263,798
Long-term 101,197,965 118,060,269
Land compensation payables (*) 76,115,857 99,342,790
Deposits received 17,698,314 2,843,610
Others 7,383,794 15,873,869
TOTAL 176,174,230 206,906,797
(*) This represents land compensation payable to owners of raw land where the Group is going to develop Hamlet 2 Tan Tao
residential project. This payable will be subsequently paid out of the developed land lots from the said project.
154 155ANNUAL REPORT 2016 FINANCIAL STATEMENTS
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS as at 31 December 2016 and for the year then ended (continued) B09-DN/HN
20. LOANS AND DEBTS
VND’000
Ending balance Beginning balance
Short-term 194,351,572 218,819,525
Short-term loans from a bank (Note 20.1) 88,807,947 10,855,529
Current portion of long-term loans 105,543,625 207,963,996
Long-term 1,699,929,119 2,699,216,325
Long-term loans from banks (Note 20.2) 1,227,243,664 1,798,324,410
Loans from other entities - 891,915
Bonds (Note 20.3) 472,685,455 900,000,000
TOTAL 1,894,280,691 2,918,035,850
20.1 Short-term loans from a bank
Details of the short-term loans from banks are as follows:
BankEnding balance
(VND’000)
Principal
repayment
term
Purpose
Interest
rate
(% p.a.)
Description
of collateral
Orient Commercial Joint Stock Bank – District 4 Branch
Loan agreement No.
19/2016/HDTD-DN
dated 17 August
2016
28,000,000 17 August
2017
To fi nance
Lucasta project
9.1% Land use right from lot
256 to 260 of Lucasta
project at Phu Huu Ward,
District 9, HCMC
20. LOANS AND DEBTS (CONTINUED)
20.1 Short-term loans from a bank (continued)
Details of the short-term loans from banks are as follows: (continued)
Bank
Ending
balance
(VND’000)
Principal
repayment
term
Purpose
Interest
rate
(% p.a.)
Description
of collateral
Orient Commercial Joint Stock Bank – District 4 Branch
Loan agreement No.
20/2016/HDTD-DN dated
31 August 2016
35,085,400 31 August
2017
To fi nance
Mega Village
project
9,1 Land use right at of
Mega Village project at
Phu Huu Ward, District
9, HCMC
Loan agreement No.
13/2016/HDTDHM date 27
July 2016
25,722,547 27 July 2017 To fi nance
working capital
Savings
deposit
interest with
term of 6
months plus
2.3% per
annum
Unsecured
88,807,947
20.2 Long-term loans from banks
Details of long-term loans from banks are as follows:
Bank
Ending
balance
(VND’000)
Principal
repayment
term
Purpose
Interest
rate
(% p.a.)
Description
of collateral
Vietnam Bank for Industry and Trade - Ho Chi Minh Branch
Loan Agreement No.
16.2680021/HDTDA/
NHCT900-GIAPHUOC
dated 11 May 2016
70,888,205 47 months To fi nance Gia
Phuoc Phu Huu
project
9.5 Land use rights of
29,562 square meters,
and future and associ-
ated buildings of Gia
Phuoc Phu Huu project
Loan Agreement No.
19/2016/HDTD-DN dated
17 September 2016
175,711,453 42 months To fi nance Lucasta
project
9 Land use rights of
122,674 square meters
of Lucasta project
156 157ANNUAL REPORT 2016 FINANCIAL STATEMENTS
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS as at 31 December 2016 and for the year then ended (continued) B09-DN/HN
20. LOANS AND DEBTS (CONTINUED)
20.2 Long-term loans from banks (continued)
Details of long-term loans from banks are as follows:
BankEnding balance
(VND’000)
Principal
repayment
term
Purpose
Interest
rate
(% p.a.)
Description
of collateral
Vietnam Bank for Industry and Trade - Ho Chi Minh Branch
Loan Agreement
No. 16.321.000101
dated 22 September 2016
77,509,434 52 months To pay for
100,000 m2
land rental fee
at Quarter 5,
Binh Tri Dong B
Ward, Binh Tan
District
9.5 20% of capital
contribution in Espace
Big C An Lac; Land use
rights of 172,032 m2
and associated assets
at Binh Hung Ward,
Binh Chanh District
belonging to Binh
Hung 11A Residential
project
Loan Agreement
No. 16.321.000102
dated 22 September 2016
70,228,786 42 months To fi nance
Phong Phu
4 Residential
project
9.5 Land use rights of
140,319 m2 and
associated assets at
Phong Phu Ward,
Binh Chanh District
belonging to Phong
Phu 4 Residential
project
Vietnam Bank for Industry and Trade - Branch 1
Loan Agreement
No. 121/2015 - HDTDDA/
NHCT902-NHAPHO-DANCU
dated 12 August 2015
145,757,186 45 months To fi nance
Thanh Phuc
Phu Huu project
9 All right of assets
generating from
44,725 square metres
of Nha Pho Phu Huu
project
Loan Agreement
No. 122/2015 - HDTDDA /
NHCT902-NHAPHO-CAOOC
dated 12 August 2015
171,225,928 45 months To fi nance
Thanh Phuc
Building project
9 Land use right of
16,667 square meters
and associated build-
ings of Nha Pho
Building project
Loan Agreement
No. 71/2016- HDTDDA /
NHCT902-THAPMUOI dated
31 March 2016
188,681,406 36 months To fi nance
Thap Muoi
Phuoc Long B
residential of
project
9.5 Land use right of
30,468 square metres
and future associated
buildings of Thap
Muoi Phuoc Long B
project
Loan Agreement
No. 16.2680019/HDTDDA/
NHCT900-BINHTRUNG
dated 11 May 2016
184,449,614 47 months To fi nance Binh
Trung - Binh
Trung Dong
residential
project
9.5 Land use rights of
51,672 square meters
and future buildings
of Binh Trung - Binh
Trung Dong project
20. LOANS AND DEBTS (CONTINUED)
20.2 Long-term loans from banks (continued)
Details of long-term loans from banks are as follows: (continued)
BankEnding balance
(VND’000)
Principal
repayment
term
Purpose
Interest
rate
(% p.a.)
Description
of collateral
Vietnam Export Import Commercial Joint Stock Bank – Ho Chi Minh Branch
Loan Agreement No. 2000
- LDS - 201422711 dated
29 December 14
40,443,737 36 months To fi nance
Saphire Phu
Huu project
10 Land use rights of 24,120
square metres and
associated buildings of
Saphire Phu Huu project
Asia Commercial Bank - Hoa Hung Branch
Loan Agreement No. TAT.
DN.794.160316 dated 4
April 2016
30,000,000 36 months To fi nance land
acquisition
at The Venica
project - Phase 2
9.5 Associated building
and future assets on the
land lots in accordance
with Loan Agreement
No. TAT.DN.794.160316
dated 4 April 2016
Orient Commercial Joint Stock Bank – District 4 Branch
Loan Agreement No.
06/2015/HDTD-DN dated
1 July 2015 and Appendix
No. 06-01/SĐBS - HDTD
177,891,54048 months To fi nance
Hamlet 2 Tan
Tao Residential
project and
11A Residential
project
9.5 Land use right of 18,392
square meters No.
T00013/1aQSDD/4028/
UB, 00230/2aQSDD/2580/
UB and 7,647 meters No.
CT01135 and associated
assets at belonging to
158 An Duong Vuong
project
TOTAL 1,332,787,289
In which
Current portion 105,543,625
Long-term 1,227,243,664
158 159ANNUAL REPORT 2016 FINANCIAL STATEMENTS
20.
LOA
NS
AN
D D
EBTS
(CO
NTI
NU
ED)
20.3
B
onds
De
tails
of
bo
nd
s ar
e a
s fo
llow
s:
Endi
ng
bala
nce
(VN
D’0
00)
Pri
nci
pal
repa
ymen
t
term
Pu
rpos
eIn
tere
st r
ate
Des
crip
tion
of c
olla
tera
l
Issu
ed a
t par
val
ue
Vie
tna
m J
oin
t S
tock
Co
mm
erc
ial
Ba
nk
for
Ind
ust
ry a
nd
Tra
de
– H
a
No
i Bra
nch
- O
rde
r co
ntr
act
No
.
01
/20
15
/VIE
TIN
BA
NK
10
6-K
HA
NG
-
DIE
N d
ate
d 2
6 O
cto
be
r 2
01
5
95
,00
0,0
00
48
mo
nth
sTo
fi n
ance
th
e
Me
losa
pro
ject
Th
ese
b
on
ds
be
ar
an
inte
rest
ra
te
of
9%
pe
r an
nu
m f
or
the
fi r
st t
hre
e-
mo
nth
pe
rio
d a
nd
th
e i
nte
rest
rat
e o
f
savi
ng
de
po
sit
in V
ND
wit
h t
he
te
rm
of
twe
lve
(1
2)
mo
nth
s an
no
un
ced
by
Vie
tnam
Jo
int
Sto
ck C
om
me
rcia
l B
ank
for
Ind
ust
ry a
nd
Tra
de
– H
a N
oi B
ran
ch
plu
s (+
) m
arg
in o
f 4
% p
er
ann
um
fo
r
sub
seq
ue
nt
thre
e-m
on
th p
eri
od
s.
Lan
d u
se r
igh
t o
f 7
2,2
93
sq
ua
re
me
ters
of
Me
losa
pro
ject
ow
ne
d b
y
SL.
Vie
tna
m J
oin
t S
tock
Co
mm
erc
ial
Ba
nk
for
Ind
ust
ry a
nd
Tra
de
–
Ha
No
i Bra
nch
- O
rde
r co
ntr
act
No
. 01
/20
16
/DM
/VIE
TIN
BA
NK
.
HN
-KH
AN
GD
IEN
da
ted
11
Au
gu
st
20
16
37
7,6
85
,45
54
8 m
on
ths
To
fi n
an
ce
Me
losa
an
d V
en
ica
pro
ject
;
rest
ruct
ure
loa
ns
an
d
bo
rro
win
gs
of
sub
sid
iari
es
Th
ese
bo
nd
s b
ea
r a
n i
nte
rest
ra
te o
f
9.5
% p
er
an
nu
m f
or
the
fi r
st y
ea
r a
nd
the
in
tere
st
rate
o
f sa
vin
g
de
po
sit
in V
ND
wit
h t
he
te
rm o
f tw
elv
e (
12
)
mo
nth
s a
nn
ou
nce
d b
y V
ietn
am
Jo
int
Sto
ck C
om
me
rcia
l B
an
k fo
r In
du
stry
an
d T
rad
e –
Ho
Ch
i M
inh
Cit
y B
ran
ch
plu
s (+
) m
arg
in o
f 4
% p
er
an
nu
m f
or
sub
seq
ue
nt
thre
e-m
on
th p
eri
od
s.
Lan
d u
se r
igh
t o
f 7
,71
9 s
qu
are
me
-
ters
of
Ve
nic
a p
roje
ct o
wn
ed
by
QT
;
Lan
d u
se r
igh
t o
f 1
7,9
63
sq
ua
re
me
ters
o
f M
elo
sa
pro
ject
o
wn
ed
by
SL;
an
d R
igh
ts a
risi
ng
fro
m I
CC
No
. 0
1/2
01
5/H
DH
T/K
D-S
L d
ate
d 1
2
Oct
ob
er
20
15
an
d I
CC
No
. 01
/20
16
/
HD
HT
/KD
-QT
da
ted
20
Ju
ly 2
01
6 .
TOTA
L47
2,68
5,45
5
21.
OW
NER
S’ E
QU
ITY
21.1
In
crea
se a
nd d
ecre
ase
in o
wne
rs’ e
quity
VN
D’0
00
Shar
e ca
pita
lSh
are
prem
ium
Inve
stm
ent
and
deve
lopm
ent
fun
d
Un
dist
ribu
ted
earn
ings
Tota
l
Prev
ious
yea
r:
Be
gin
nin
g b
ala
nce
75
0,0
00
,00
06
04
,69
2,1
60
34
,91
5,3
54
10
8,8
71
,75
81
,49
8,4
79
,27
2
Issu
an
ce o
f n
ew
sh
are
s 1
,05
0,0
00
,00
0
55
5,2
22
,00
0
--
1,6
05
,22
2,0
00
Ne
t p
rofi
t fo
r th
e y
ea
r-
--
25
3,3
57
,52
8
25
3,3
57
,52
8
Acq
uis
itio
n o
f n
on
-co
ntr
olli
ng
inte
rest
--
-2
,09
8,4
46
2,0
98
,44
6
Div
ide
nd
de
cla
red
(10
0,8
00
,00
0)
(10
0,8
00
,00
0)
Tra
nsf
er
to b
on
us
an
d w
elf
are
fu
nd
--
-(1
,28
9,4
75
)(1
,28
9,4
75
)
En
din
g b
ala
nce
1,8
00
,00
0,0
00
1
,15
9,9
14
,16
0
34
,91
5,3
54
26
2,2
38
,25
7
3,2
57
,06
7,7
71
Curr
ent y
ear:
Be
gin
nin
g b
ala
nce
1
,80
0,0
00
,00
0
1,1
59
,91
4,1
60
3
4,9
15
,35
42
62
,23
8,2
57
3
,25
7,0
67
,77
1
Issu
an
ce o
f n
ew
sh
are
s (*
) 5
39
,99
8,9
20
(53
9,9
98
,92
0)
--
-
Ne
t p
rofi
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160 161ANNUAL REPORT 2016 FINANCIAL STATEMENTS
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS as at 31 December 2016 and for the year then ended (continued) B09-DN/HN
21. OWNERS’ EQUITY (CONTINUED)
21.2 Capital transactions with owners and distribution of dividends
VND’000
Current year Previous year
Contributed share capital
Beginning balance 1,800,000,000 750,000,000
Increase 539,998,920 1,050,000,000
Ending balance 2,339,998,920 1,800,000,000
Dividends
Dividend declared 126,000,000 100,800,000
Dividend paid 126,000,000 100,784,572
21.3 Share capital - ordinary shares
Ending balance Beginning balance
Number of shares Number of shares
Authorized shares 233,999,892 180,000,000
Issued and paid-up shares
Ordinary shares 233,999,892 180,000,000
Shares in circulation
Ordinary shares 233,999,892 180,000,000
22. REVENUE
22.1 Revenue from sale of goods and rendering of services
VND’000
Current year Previous year
Gross revenue 3,938,432,166 1,051,919,567
Of which:
Sale of residential land properties 3,826,410,669 987,938,151
Rendering of services 57,187,987 4,741,323
Outright sale of industrial plots and related infrastructure (*) 42,273,537 -
Operating lease - land lots and related infrastructure 12,559,973 52,670,534
Others - 6,569,559
Less
Sale returns (6,789,172) (1,979,159)
Net revenue 3,931,642,994 1,049,940,408
Of which:
Sale of residential land properties 3,819,621,497 985,958,992
Rendering of services 57,187,987 4,741,323
Outright sale of industrial plots and related infrastructure 42,273,537 -
Operating lease - land lots and related infrastructure 12,559,973 52,670,534
Others - 6,569,559
(*) Revenue from industrial plots and related infrastructure has been outright recognized as described at Note 3.15.
When this revenue is recognized on a straight-line basis over the lease terms, revenue and net profi t will
decrease by VND’000 37,779,996 and VND’000 26,356,939 respectively.
22.2 Finance income
VND’000
Current year Previous year
Interest income 16,466,769 14,752,584
Dividends 29,161 -
Revaluation surplus of investment at acquisition-date fair value - 34,770,414
Gains on disposal of investments- 29,822,369
Others - 10,438
TOTAL 16,495,930 79,355,805
162 163ANNUAL REPORT 2016 FINANCIAL STATEMENTS
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS as at 31 December 2016 and for the year then ended (continued) B09-DN/HN
23. COSTS OF GOODS SOLD AND SERVICES RENDERED
VND’000
Current year Previous year
Cost of residential land properties sold 2,691,976,661 688,703,122
Cost of services rendered 243,181,747 779,132
Cost of industrial plots and related infrastructure for outright sale 11,943,562 -
Cost of operating lease - land lots and related infrastructure 4,867,970 22,563,384
Others - 248,193
TOTAL 2,951,969,940 712,293,831
24. FINANCE EXPENSES
VND’000
Current year Previous year
Discount for early payment 100,998,191 50,446,727
Loan interests 8,648,089 8,513,956
Others 1,001,544 189,204
TOTAL 110,647,824 59,149,887
25. OTHER INCOME AND EXPENSES
VND’000
Current year Previous year
Other income 13,804,653 98,911,387
Penalty on breach of contract 4,679,219 -
Income from management service 4,259,049 2,791,618
Negative goodwill from acquisition - 92,749,882
Others 4,866,385 3,369,887
Other expenses (36,818,962) (16,099,085)
Expenses for management service (15,288,323) (4,263,859)
Penalty on breach of contract (12,300,664) (7,477,019)
Tax penalty (6,669,352) (2,419,231)
Others (2,560,623) (1,938,976)
NET (23,014,309) 82,812,302
26. CORPORATE INCOME TAX
The statutory corporate income tax (“CIT”) rate applicable to the Group is 20% of taxable profi ts.
The Company and its subsidiaries tax returns are subject to examination by the tax authorities. As the application of
tax laws and regulations are susceptible to varying interpretations, amounts reported in the consolidated fi nancial
statements could be changed at a later date upon fi nal determination by the tax authorities.
26.1 CIT expense
VND’000
Current year Previous year
Current tax expense 159,695,216 48,573,267
Adjustment for under (over) accrual of tax from prior years 709,011 (1,248,110)
Deferred tax expense 16,837,673 1,492,591
TOTAL 177,241,900 48,817,748
Reconciliation between CIT expense and the accounting profi t multiplied by CIT rate is presented below:
VND’000
Current year Previous year
Accounting profi t before tax 582,597,952 317,261,161
At CIT rate of 20% (2015: 22%) applicable to companies in the Group 116,519,590 69,797,455
Adjustments:
Non-deductible expenses 5,158,809 3,441,083
Loss in subsidiaries 5,185,539 11,549,652
Share of profi t in associate (2,144,927) (3,280,175)
Consolidation adjustments 55,730,230 (22,268,425)
Tax losses carried forward (3,916,352) (9,275,351)
Adjustment for under (over) accrual of tax from prior year 709,011 (1,248,110)
Others - 101,619
CIT expense 177,241,900 48,817,748
26.2 Current tax
The current CIT payable is based on taxable profi t for the current year. The taxable profi t of the Group for the year
diff ers from the profi t as reported in the consolidated income statement because it excludes items of income or
expense that are taxable or deductible in other years and it further excludes items that are not taxable or deductible.
The Group’s liability for current tax is calculated using tax rates that have been enacted by the consolidated balance
sheet date.
164 165ANNUAL REPORT 2016 FINANCIAL STATEMENTS
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS as at 31 December 2016 and for the year then ended (continued) B09-DN/HN
26. CORPORATE INCOME TAX (CONTINUED)
26.3 Deferred tax
The following are the deferred tax assets and liabilities recognized by the Group, and the movements thereon,
during the current and previous year:
VND’000
Consolidated
balance sheet
Consolidated
income statement
Ending balanceBeginning
balanceCurrent year Previous year
Deferred tax assets
Unrealised profi t 902,170 1,461,344 (559,174) 1,461,344
Accrued expenses 1,917,999 1,109,032 808,967 (542,922)
Interest expenses 2,658,152 - 2,658,152 (2,293,123)
Accrued interest income (1,055,656) - (1,055,656) -
Provision for severance allowance 269,140 - 269,140 (3,094)
Provision for doubtful debts 400,000 - 400,000 -
Tax loss carried forward132,481 - 132,481 -
Increase due to acquisition of subsidiaries - 1,367,490 (1,367,490) -
TOTAL 5,224,286 3,937,866 1,286,420 (1,377,795)
Deferred tax liabilities
Tax loss carried forward 4,681,381 6,502,982 (1,821,601) 6,502,982
Provision for severance allowance 115,486 341,044 (225,558) 249,311
Accrued expenses - 70,269 (70,269) 35,969
Interest expense (3,282,770) - (3,282,770) (12,295,790)
Accrued interest income (4,716,438) (337,016) (4,379,422) (337,016)
Profi t from sale of land properties but not yet
taxable
(42,984,274) (43,590,357) 606,083 5,804,967
Increase due to acquisition of subsidiaries (37,851,766) (28,901,210) (8,950,556) (75,219)
TOTAL (84,038,381) (65,914,288) (18,124,093) (114,796)
Net deferred income tax expense (16,837,673) (1,492,591)
27. TRANSACTIONS WITH RELATED PARTIES
Transactions with other related parties
Remuneration to members of the Board of Directors and management
VND’000
Current year Previous year
Salaries and bonus 6,989,767 9,445,625
Amounts due from and due to related parties at the balance sheet date were as follows:
VND’000
Related party Relationship Transaction Ending balance Beginning balance
Short-term trade receivable
Ms Truong My Linh Related partySale of residential
land properties1,276,763 1,276,763
28. EARNINGS PER SHARE
The following refl ects the income and share data used in the basic and diluted earnings per share computations:
VND’000
Current yearPrevious year
(Adjusted)
Net profi t after tax attributable to ordinary equity holders of the Company 371,774,722 253,357,528
Less bonus and welfare fund (*) (440,249) (14,310,409)
Net profi t attributable to ordinary equity holders of the Company 371,334,473 239,047,119
Weighted average number of ordinary shares (**) 233,999,892 233,999,892
Earnings per share
- Basic 1.59 1.02
- Diluted 1.59 1.02
There have been no other transactions involving ordinary shares or potential ordinary shares between the reporting
date and the date of completion of these consolidated fi nancial statements.
166 167ANNUAL REPORT 2016 FINANCIAL STATEMENTS
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS as at 31 December 2016 and for the year then ended (continued) B09-DN/HN
28. EARNINGS PER SHARE (CONTINUED)
(*) Profi t used to compute earnings per share for the year 2015 as presented in the consolidated fi nancial
statements for the year 2015 was restated to refl ect the actual allocation to bonus and welfare fund from
2015 retained earnings following the resolution of the shareholders meeting dated 12 April 2016.
Profi t used to compute earnings per share for the year 2016 was adjusted for the provisional allocation to
bonus and welfare fund from 2016 profi t following the plan as approved in the resolution of the shareholders
meeting dated 12 April 2016.
(**) The weighted average number of ordinary shares for the year ended 31 December 2015 was adjusted
to refl ect the additional issuance of 53,999,920 bonus shares from share premium in accordance with
the resolution of the shareholders meeting dated 12 April 2016 and was approved by the Planning and
Investment Department of Ho Chi Minh City through the issuance of the 15th amended Business Registration
Certifi cate dated 25 November 2015, in accordance to VAS No. 30.
29. COMMITMENTS
Capital commitments
As the balance sheet date, the Group has a commitment of VND’000 783,794,040 (31 December 2015: VND’000
637,327) principally related to the development of infrastructure of Le Minh Xuan Industrial Park.
Lease commitments
The Group leases offi ce premises under an operating lease arrangement. Future minimum lease payables at the
balance sheet date were as follows:
VND’000
Ending balance Beginning balance
Less than 1 year 41,719,037 12,535,555
From 1 to 5 years 5,321,552 23,857,332
More than 5 years 21,404,960 2,046,898
TOTAL 68,445,549 38,439,785
30. CORRESPONDING FIGURES
According to Tax Assessment Minutes dated 14 December 2016 and Tax Penalty Decision No. 2490/QD-TCT dated 19
December 2016 issued by the Department of Taxation of Ho Chi Minh City to Binh Chanh Construction Investment
Joint Stock Company, the Group’s subsidiary, the Company’s management decided to retrospectively adjust the
understatements of the CIT for the fi nancial years from 2009 to 2015 aggregating to VND’000 13,688,456 as described
below:
• Increasing in deferred tax assets by VND’000 1,367,490 and increasing in statutory obligations by VND’000
13,688,456 and decreasing in non-controlling interests by VND’000 5,259,821 and decreasing in undistributed
earnings by VND’000 7,061,145 as at 31 December 2015;
• Decreasing in other income by VND’000 7,061,145 for the year ended 31 December 2015.
The net impact of these restatements is presented as follows:
VND’000
As previously
statedRestatements Restated amount
For the year ended 31 December 2015
Other income 105,972,532 (7,061,145) 98,911,387
As at 31 December 2015
Deferred tax assets 2,570,376 1,367,490 3,937,866
Statutory obligations 91,873,634 13,688,456 105,562,090
Non-controlling interests 921,215,774 (5,259,821) 915,955,953
Undistributed earnings 269,299,402 (7,061,145) 262,238,257
31. EVENTS AFTER THE BALANCE SHEET DATE
There is no matter or circumstance that has arisen since the consolidated balance sheet date that requires adjustment
or disclosure in the consolidated fi nancial statements of the Group.or disclosure in the consolidated fi nancial statements of the Group.
Nguyen Tran Cam HienPreparer
Nguyen Quoc AnChief Accountant
Ngo Thi Mai ChiDeputy General Director
23 March 2017
The fi nancial statements of Khang Dien House Trading and Investment Joint Stock Company as at 31 December
2016 was audited by Ernst & Young Vietnam Limited Company and disclosed at: www.khangdien.com.vn
168 169ANNUAL REPORT 2016 FINANCIAL STATEMENTS
In order to contribute to environmental protection, Khang Dien’s 2016 Annual Report is printed in limited numbers and used environmentally friendly paper. Therefore, please transfer to those interested if you don’t need to use the report. In addition, Khang Dien’s 2016 Annual Report is also available in electronic version at:www.khangdien.com.vn
KHANG DIEN HOUSE TRADING AND INVESTMENT JSCRoom 801, 8th Floor, Centec Tower72-74 Nguyen Thi Minh Khai Street, Ward 6, District 3, HCM CityT | (84.8) 3820 8858 F | (84.8) 3820 8859E | info@ khangdien.com.vn W | www.khangdien.com.vn