tong hop bao cao thuong nien nam...
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www.frt.vn
ANNUALREPORT
INTRODUCTIONMessage from the Chairman of the Board of Directors
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INTRODUCTION- Message from the Chairman of the Board of Directors
- Main financial indicators in 2019
- Vision
- Mission
- Core values
GENERAL INFORMATION- Company introduction
- Establishment and Businesses
- Governance model and management apparatus
- FPT Long Chau Subsidiary
- Introduction on the Boards
- Equity information
BUSINESS PERFORMANCE- Overview of business activities
- Evaluation of the Board of Directors on the business results
of the Company and the Board ofManagement
- General assessment on the activities of the BOD
- Planning for development
- 5Responsibility to the community and the environment
CORPORATE GOVERNANCE- Corporate governance model
- Operations of the Board of Directors
- Report of the Supervisory Board
- Investor relations
AUDITED CONSOLIDATEDFINANCIAL STATEMENTS
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Dear esteemed Shareholders, Customers, Partners and all employees of FPT Digital Retail Joint Stock Company.
2019 was considered a challenging year where the retail market of technology goods started to slow down, competition became fiercer than ever, while FRT continued accelerating the development of other segments, including pharmaceuticals. The Board of Directors and all FPT employees have made every effort to fulfill their own duties and of the unit in charge, and at the same time, showing the willingness to support their colleagues to overcome difficulties and common challenges in a spirit of dedication, honesty and creativity. The Company's revenue in 2019 reached VND 16,634 billion, which is an increase of 9% compared to that of 2018. Profit before tax reached VND 278 billion. Online sales reached VND 3,899 billion, sharply jumping by 60% compared to that of 2018 and accounted for 23.4% of total net sales. By the end of 2019, the total number of FPT Shop stores reached 593, 60 stores more compared to that at the end of 2018. 2019 was a remarkable year for the pharmacy chain when the Board of Management found the formula for a successful expansion, which has been an important factor to accelerate FRT’s pharmacy chain’s arrival to many other provinces and cities in 2019. The number of Long Chau drugstores by the end of 2019 reached 70, achieving the yearly plan. Essentially, according to the official VNR500 rankings by Vietnam Report and VietnamNet Newspa-per, upon criteria for capital efficiency, the potential of stable profit growth and social responsibility, FPT Retail ranked 34th out of 500 largest private enterprises in Vietnam, ranked 78th out of 500 largest enterprises in Vietnam. FPT Retail continues to be granted the Top 10 Retailers 2019 Award (by Vietnam Report) and the Top 10 Trust & Use Awards 2019 (by Vietnam Economic Times).
In 2020, FPT Retail continues to maintain the operation of FPT Shop along with cross-selling under of shop - in - shop method, boosting investment resources for FPT Long Chau pharmacy chain, implementing digital transformation in customer service and optimizing internal management, and experimenting on new businesses. Throughout all its activities, FPT Retail continues to set its core values in customer service, honesty and responsibility, solidarity and team support. Prioritizing cus-tomer service first, FPT Retail will increasingly improve the quality of service, developing energetic, honest, united and professional personnel to offer all customers satisfaction.
In the 9th year of operation and the 3rd year being a public company, together with the united dedi-cation of a team of more than 6,000 employees, FPT Retail commits to the 2020 plan with dedica-tion, to developing, conquering all challenges, bringing benefits to its investors and increasing cor-porate value.
AUDITED SEPARATEFINANCIAL STATEMENTS
PageCONTENT
Message from the Chairman of the Board of Directors INTRODUCTIONMain financial indicators in 2019
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Lastly, on behalf of the Board of Directors, I would like to express gratitude to the trust and support of the shareholders, of our partners and customers, as well as everyone of FPT Retail's staff who have been and will be accompanying me to build a brighter future for the Company.
Best Regards.
ON BEHALF OF THE BOARD OF DIRECTORSChairwoman
Nguyen Bach Diep
Total revenue:16,634
Profit before tax: 278
Basic earnings per share:2,612
Equity:1,279
Total number of storesFPT Shop: Long Chau:
593 70
Top 3 Retailers 2019 (Vietnam Report), Top 500 most profitable companies in Vietnam in 2019 (Vietnam Report), Top 10 Trust & Use Awards 2019 (VnEconomy), Top 50 best listed companies in 2019 (Forbes Vietnam), Vietnam's 50 Best-performing Companies (TOP 50) (Nhip Cau Dau Tu), Top 100 largest public firms (Forbes Vietnam)
Awards::
VisionAlong with the development of society and the retail market, FPT Digital Retail Joint Stock Compa-ny has been and will continue to strive to become a leading multi-industry retail company in Viet-nam and at the same time be a Trusted destination of customers.
FPT Digital Retail Joint Stock Company aims to become a leading multidisciplinary retail company in Vietnam. Along with increasing its scale, FPT Retail commits to providing all customers with optimal shopping experiences for authentic technology, pharmaceutical products, supplements, cosmetics, etc.. with high quality, competitive pricing, as well as friendly customer service.
Mission
INTRODUCTION
GENERAL INFORMATION Core values
Quality:Is always at the forefront of building trust and responsibility to guarantee quality, FPT Retail gives customers absolute guarantee when pur-chasing technology, health care and beauty products.
Trust:"Trust" is what FPT Retail constantly focuses on during brand development, being a name of reliance for customers and a trustworthy part-ner for technology, pharmaceutical and cos-metic companies.
Friendliness:Our long-term direction is building a custom-er-friendly image for FPT Retail, which enthusi-astically engages in community activities.
Care:With the goal of customer service as the number one priority, FPT Retail will increasingly improve the quality of service, developing energetic, honest, united and professional per-sonnel to offer all customers satisfaction.
Employee’s core values
INTRODUCTIONCompany introduction
FPT DIGITAL RETAIL JOINT STOCK COMPANYCertificate of business registration number: 0311609355Charter capital: 789,817,920,000 đồngSecurities symbol: FRTBusiness lines: Retailing computers, peripheral devices, software, telecommunications equipment, pharmaceuticals, medical instruments, cosmetics, etc. in specialized stores.
Address: 261 - 263 Khanh Hoi, Ward 05,District 4, Ho Chi Minh City
Telephone number: (+84-28) 7302 3456
Website: http://frt.vnhttps://fptshop.com.vnhttps://nhathuoclongchau.com
FPT Digital Retail Joint Stock Company (referred to as FPT Retail) was established in 2012 in Vietnam, as a member of FPT Group. It owns 2 retail chains namely FPT Shop and F.Studio By FPT and one subsidiary FPT Long Chau pharmacy chain.
FPT Shop is a retail chain specializing in mobile digital products including mobile phones, tablets, laptops, accessories and technology services, etc. FPT Shop is the first retail system in Vietnam to be certified ISO 9001: 2000 on quality management under international stan-dards. Currently, FPT Shop is the second largest retail chain in the technology retail market.
Long Chau Pharmacy is a chain of pharmacies special-izing in pharmaceutical, med-ical equipment, and supple-ments of FPT Retail. With the advantage of competitive prices, high quality products and a team of highly qualified, well-trained pharmacists, Long Chau drugstore is a reliable address for the health of customers.
F.Studio By FPT is the most highly authorized store chain of Apple in Vietnam, specializing in trading authentic Apple prod-ucts. FPT Retail is the first com-pany to have a retail chain with standard Apple store model, including: AAR (Apple Autho-rized Reseller) and iCorner, pro-viding customers with a great space to experience unique and sophisticated Apple products, along with customer service of the highest quality.
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Dedicatedcustomerservice
Unityand
team-support
Honestyand
responsibility
GENERAL INFORMATION GENERAL INFORMATION Company introductionCompany introduction
“Customer service of dedication”
Over the years, through tireless efforts and loyalty to the policy of "customer service of dedication", FPT Retail is determined to build a distinct and uniform customer service style for all its business segments, making it the foundation for sustainable growth, per-fecting the image of a friendly, approachable brand and prioritizing customer service.
Always putting customers at the center of every thought and action, FPT Retail has built a profession-al, enthusiastic and dedicated team of staff. Besides, we have been and will be continuing to build the most modern online business center so that customers can easily and quickly find the stores of FPT Retail's chains.
The continuous investment and efforts of FPT Retail have been recognized by the community with the stable yet sharp growth in the number of customers visiting and shopping for many years. After 8 years of operation, FPT Retail has built trust from customers as the retailer with:
Forbes Vietnam also honored FPT Retail in the Top 50 Best listed companies in August 2019 and the Top 100 Largest public companies in Decem-ber 2019.In 2019, FPT Retail achieved revenue of VND 16,634 billion, which is an increase of 9% com-pared to that of 2018. Online sales reached VND 3,899 billion, being a stark jump of 60% com-pared to that of 2018 and accounted for 23.4% of the company's total revenue. Profit before tax reached VND 278 billion, decreasing by 36% compared to that of 2018.By the end of 2019, the total number of FPT Shop stores reached 593. The number of Long Chau drugstores was 70, with 50 more shops compared to the previous year.
The most - loved retailer in 2016, Top 10 "Trust & Use" in 2 2018, 2019 (by Vietnam Economic Times).
And has been awarded Vietnam's Excellent Brand for 6 consecutive years from 2013 to 2018 (Vietnam Economic Times).
Top 10 Retailers in 2017, 2018 and 2019.
Top 500 largest enterprises in Vietnam in 2018, 2019, Top 500 best profitable enterprises in 2019 (by Vietnam Report and Vietnamnet).
As of July 2018, FPT Retail is listed among the Top 5 leading retailers in Vietnam.
Top 500 leading retailers in Asia - Pacific (Retail Asia).
The most market share for imported laptops in Vietnam (from 2015 to the present).
The second largest of market share for mobile phones and is the leading Apple retailer in Vietnam.
In June 2019, FPT Retail was honored in the "Vietnam's 50 Best-performing Companies" by Nhip Cau Dau Tu Magazine.
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BusinessesEstablishment
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Northern 1
Central
East
Ho Chi Minh
Ha Noi
Northern 2
West
GRAND TOTAL
593SHOP
88 Stores
73 Stores
96 Stores
84 Stores
87 Stores
89 Stores
76 Stores
2012 2013 2014 2015March 2012 Digital Retail JSC was established, one of 07 companies under FPT JSC.
In December 2013, FPT Shop officially reached the mile-stone of 100 stores.
FPT Shop reaches 200 stores across 63 provinces. It became a direct importer of authen-tic iPhones.
FPT Shop achieved the fastest growth rate com-pared to other FPT Joint Stock Company's subsid-iaries, with revenue increasing by 50% com-pared to that of 2014, profit before tax soared by 338.7%.
Top 3 Retailers 2019 (Vietnam Report), Top 500 best profitable enterprises in 2019 (Vietnam Report), Top 10 "Trust & Use" 2019 (VnEconomy), Top 50 Best listed companies 2019 (Forbes Vietnam)
Including 593 stores across 63 provinces and 14 laptop centers in Hanoi, HCMC và other provinces in VietnamAn official distributor of Apple in Vietnam with 3 levels: APR, AAR and I corner
2016 2017FPT Shop reached 385 stores across 63 provinces. Online revenue dou-bled, reaching more than 1,000 billion. 80 Apple corner experience areas were launched nationwide.
In July 2017, the Company achieved the following presti-gious awards in the retail industry: Top 4 Leading retailers in Vietnam (Ministry of Industry and Trade, 2017), Retail Asia-Pacific Top 500 (Euromonitor, 2017). FPT Retail became a public company since June 2017. As of Decem-ber 31, 2017, the Company has had 473 stores nation-wide (including FPT Shop and F.Studio).
2018 2019In the 3rd quarter, FPT Retail established a subsidiary named FPT Long Chau Pharmaceutical with a charter capi-tal of VND 100 billion, of which FPT Retail contributes 75%. During the year, FPT Retail also had the honor to receive various awards: Top 10 Retailers 2018 by Vietnam Report, and honored among the top Vietnam's Excellent brands for 6 consecutive years from 2013 to 2018 by Vietnam Eco-nomic Times, Top 500 Largest Enterprises in Vietnam (Vietnam Report). As of August 2018, FPT Retail had entered the Top 5 leading retailers in Vietnam, Retail Asia-Pacific Top 500 (Euromonitor). In November 2018, FPT Retail made the Top 10 Retailers (Vietnam Report and Vietnamnet).
FPT Retail was honored with the following awards: Top 3 Retailers 2019 (Vietnam Report), Top 500 best profitable enterprises in 2019 (Vietnam Report), Top 10 "Trust & Use" 2019 (VnEconomy), Top 50 best listed companies in 2019 (Forbes Vietnam), Top 50 Best-per-forming companies in Vietnam 2019 (Nhip Cau Dau Tu), Top 100 Largest public companies (Forbes Vietnam). In November 2019, the company accomplished its plan to launch 70 more Long Chau drugstores, a month ahead of schedule.
ICT Retail: Retailing mobile phones, tablets, computers, accessories and services
Pharmaceuticals: prescription drugs, supplements, cosmetics, medical equipment, etc.70 stores after more than 1 year of operation
GENERAL INFORMATION GENERAL INFORMATION
Introduction on the Boards Governance model and management apparatus
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FPT Long Chau SubsidiaryIn the context that the retail market for mobile phones and laptops is gradually coming to saturation, FPT Retail has chosen the pharmaceutical retailing industry as the next move to maintain growth. Therefore, in the third quarter of 2018, FPT Retail established a subsidiary named FPT Long Chau Pharma Joint Stock Company with a charter capital of VND 100 billion, of which FPTRetail contributed 75%. Long Chau Drugstore System is a chain of pharmacies specializing in pharmaceuticals, medical instruments, supplements, etc. With the advantage of competitive pricing, stan-dard quality products and a team of highly trained and qualified pharmacists; Long Chau drugstore is a prestigious and reliable address for customers' health. By the end of 2019, Long Chau Pharmacy System has had 70 stores. Expectedly in 2020, there will be 150 more pharmacies along with expansion to other provinces and cities outside Ho Chi Minh City.
Ms.NGUYENBACH DIEP
BOARD OF DIRECTORS
She has in turn held various key positions of companies in the group such as: Director of FIS 13 under FPT Information System Company, Deputy General Director of FPT Mobile, Director of FPT Telecom (South Branch), Deputy CEO of FPT Retail, CEO of FPT Retail. Currently, she is the Chairwoman of FPT Retail's Board of Directors. With all her heart, talent and sincerity, she has taken leadership of FPT Retail from the first days through many challenges and obstacles, from one success to another to build FRT as strong as it is today.
She is also the inspiration for all members of the company to unite into a strong team, focus-ing on the common goal of offer-ing the highest of of customer satisfaction. As the only female leader in the technology retailer market who has successfully
proved her dedication, she has been referred as " Woman of Steel " with love and admiration.
FPT Retail Chairman Nguyen Bach Diep has twice appeared on the cover of Forbes Vietnam - One of the world's leading business magazines for her con-tributions to the technology retailing market in Vietnam. Forbes Vietnam magazine in March 2018 chose "Woman of Steel" Nguyen Bach Diep for their cover story, honoring her as the builder of the second largest mobile phone retail chain in Viet-nam. “Female General” Nguyen Bach Diep continued to make appearance on the Forbes Viet-nam's cover in March 2019 when honored among the Top 50 most influential women in Vietnam in 2019, and the 20 most powerful women in the field of business.
At the Women’s Summit 2018 on October 18, 2018, Ms. Nguyen Bach Diep was one of the female leaders who appeared on the stage of Forbes Vietnam as the key speaker.
With all her heart, talent and sincerity, she has taken leader-ship of FPT Retail from the first days through many challenges and obstacles, from one success to another to build FRT as strong as it is today.
Born in: 1972Graduated from Ho Chi Minh City Open University majoring in Business Administration
FRT CEO
FRT HOGroup 2 Director - PERSONNEL)- ACCOUNTING- OPERATE- MARKETING & PR- INTERNAL CONTROL
Group 3 Director - FINANCE- IT- E-COM- CONSTRUCTION
FPTSHOP EVP FPTSHOP EVP FPTSHOP COO
FPTSHOP SALES FPTSHOPINDUSTRY SECTOR SHOP OPERATION
FPTSHOP GENERALWAREHOUSE BO OPERATION
Group 2 Manager - PERSONNEL- ACCOUNING- ADMINISTRATION- MARKETING & PR- INTERNAL CONTROL- OPERATATION
Group 1 Manager - SALES- LOCATION- INDUSTRY SECTOR- GENERAL WAREHOUSE- TASKFORCE
FRT EVP is in charge of FPTPharma
2020 ORGANIZATIONAL STRUCTUREFRT CHAIRMAN OF THE BOD
GENERAL INFORMATION GENERAL INFORMATION
Introduction on the Boards Introduction on the Boards
Being dubbed the "female general" with the talent to opening new lands, with her sensibility, intelligence, market understandings and fearlessness to take the initiative, she is trusted with many important positions. Since 2012, she has been officially elected Member of the Board of Directors and Deputy CEO of FPT Digital Retail JSC.
Ms. Trinh Hoa Giang graduated from the University of Languag-es and International Studies - Hanoi National University with two prestigious degrees: Rus-sian Pedagogy (1993) and English (1994). However, foster-ing another passion and great ambition, Ms. Giang continued to acquire a Bachelor of Economics degree at the University of Com-merce in 1999 and determined to step forward into the market.
In 2003, Ms. Giang was one of the few people who first joined and laid the foundation for the success of FRT, especially in the period when FRT was gradually building its system. She is also the person who has been instru-mental in making FRT a leading company in technology retailing.
Recognized as the"Female Leader"with the ability to open new land
Ms.trInhhoa giang
Deputy CEO
Mr. Nguyen The Phuong Immediately after graduating with a Bachelor degree in Economics in 1999, he officially joined FPT in August 2000. During nearly 2 decades of dedication and contribution, he has proved his outstanding ability and vision, hence been promoted to concurrently hold many important positions in finance, and financial planning con-trol. Currently, he is the Head of Financial Planning Department of FPT Corporation (since 2009), Deputy CEO of FPT Corporation (since 2010) and is a member of the Board of Directors of FPT Digital Retail Joint Stock Company (since 2017).
Mr. Le Hong Viet graduated from University of Sydney (Australia) majoring in Software Engi-neering in 2004 and officially joined FPT in 2005. With a solid technical background and experience of working in many countries around the world, Mr. Viet has made a lot of significant contributions to the group's technology and business activities and is one of the founders of the application and development of new tech-nologies at FPT. He has step by step demonstrated his capacity and held various important positions in the field of technology. Since November 1, 2015, with the support of his colleagues and employees, Mr. Le Hong Viet has been officially appointed as FPT's Technology Director and a member of the Board of Directors of FPT Digital Retail JSC.
Mr. Hoang Trung Kien was born in 1978. He holds a Master's degree in Business Administration and Information Systems (MBIS) from the Free University of Brussels (Belgium). In 2000, Mr. Kien joined FPT as a consultant and software solution provider for enterprises and finan-cial banks, etc. at FPT Software Solutions. During 20 years of dedica-tion with all his enthusiasm, Mr. Kien has held many important posi-tions in FPT Group's member companies, namely: Sales Manager of FPT Software Solutions, Deputy Director of FPT Telecom Online Data Center, Director of the Project Board, Regional Sales Director and Deputy CEO of FPT Telecom Joint Stock Company, Deputy CEO of FPT Information System Company. Since 2018, Mr. Kien has been a member of the Board of Directors of FPT Retail.
MR. HOANG TRUNG KIEN
MR. NGUYEN THE PHUONG
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Member of the Board of Directors
Member of the Board of Directors
MR. LE HONG VIETMember of the Board of Directors
GENERAL INFORMATION GENERAL INFORMATION
Graduated from the University of Languages Bachelor of Economics at University of CommerceBorn in: 1971
Mr. Nguyen Viet Anh was born in 1977. After graduating from Assumption Thailand University majoring in Business Administration in Finance & Banking, he earned a Master's degree in Business Administration in Marketing from National University of Singapore. Before joining FRT in March 2016, Mr. Viet Anh had held many important positions at major domestic and foreign companies such as P&G Vietnam's Financial Ana-lyst, P&G's Chief Financial Officer for the Asia region, L'Oreal Vietnam's Logistics Manager, Nokia Viet-nam's Chief Financial Officer and Sales Director, Apple Vietnam's Sales Director.From 2016 to present, he held the position of Deputy CEO of FPT Digital Retail JSC. With all the expertise and experience gained from many different working environments, he has made significant contributions to the company's business strategy and helped FRT achieve impressive results in the past years.
Deputy CEO in Business
Ms. Vu Thanh Huyen - Chief Financial, graduated from the Academy of Finance and Accounting, majoring in Com-mercial Accounting in 1997. Joining FRT from its first days of establishment, she has made great contributions to the success of the company in the technology retail market.With the knowledge and expe-rience accumulated during her work, she is one of the pivitol factors in the management team of the whole company and is trusted to hold many important positions. Since the beginning of 2019, she has been the Chief Financial Offi-cer of FPT Digital Retail JSC.
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Board Of ManagementBoard Of Management
Mr. NGUYEN VIET ANH
Ms.VUTHANHHUYEN
GENERAL INFORMATION GENERAL INFORMATION
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THÔNG TIN CHUNGEquity informationBoard Of Supervisory Board
Ms. NGO MINH HUE
Before joining FPT in 2012, Mr. Nguyen Tien Hao had had a Master Degree in Accounting and many years of experience in finance and accounting in various companies such as being: Auditor at Deloitte Vietnam and DCPA Consulting Co., Ltd., Deputy Head of Finance Department at Hanoi Export-Import Joint Stock Company (the parent company of Geleximco Group) ... After his many great contributions, he was appointed as an internal audit specialist at FPT Corporation, Head of accounting for Hope Fund and Head of Supervisory Board of FPT Digital Retail JSC.
Ms. Ngo Minh Hue is a Bachelor of Accounting and has more than 20 years of experience in this field. She joined FPT in 1994 as an Accountant of FPT Joint Stock Company. In 2003, she held the position of Chief Accoun-tant of FPT Information System Company Lim-ited. and Member of Supervisory Board of FPT Digital Retail since 2018.
After obtaining a Bachelor of Accounting, Mr. Bui Huy Cuong worked at many large com-panies and was assigned many positions in the field of accounting and auditing. After studying, developing and accumulating experience, in 2010, he joined FPT. Currently, he is taking on many roles: Internal Control at FPT Corporation, Supervisor at FPT Real Estate Company Limited, FPT Hoa Lac Con-troller at Hi-tech Park Development Compa-ny Limited and a member of the Supervisory Board of FPT Digital Retail JSC.
Mr. NGUYEN TIEN HAO Supervisory Board Head Supervisory Board Member
Supervisory Board Member
Một số chỉ số cơ bản:KEY INDEXES
Volume of issued shares Volume of outstanding shares
78,981,792
Type of stock
CommonKhối lượng cổ phiếu đang lưu hành
Volume of treasury shares
0
78,981,792
Par value shares
10,000
78,981,792
Thông qua chương trình ĐHCĐ thường niên 2018
Foreignshareholders
Other domesticshareholders
47.51%
52.49%
Mr. BUI HUY CUONG
GENERAL INFORMATION
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BUSINESS PERFORMANCE BUSINESS PERFORMANCE2019 BUSINESS PERFORMANCE and assessmentof the Board of Management
Overview of business activities
According to the World Bank, growth in economies around the world will continue to decline in 2020.While global economy continues to slow down, trade tensions between the US and China and the geo-political issues have significantly increased the instability of the global trading system, considerably affecting confidence in business and investment decisions and global trade.
Gross domestic products (GDP) in 2019 achieved impressive results with a growth rate of 7.02%, exceeding the National Assembly's target of 6.6% -6.8% (Growth of the first quarter at 6.82%, second quarter at 6.73%; third quarter at 7.48%; fourth quarter at 6.97%). This is the second consecutive year that Vietnam's economic growth has reached over 7% since 2011. For the whole year, the total retail sales of goods and reve-nue from consumer services increased by 11.8%.
MACROECONOMIC SPHERE
Domestic economy:
ITEM GDP GROWTH CPI 2012 - 2019ITEM GDP GROWTH GDP 2012 - 2019
02012 2013 2014 2015 2016 2017 2018 2019
1
3
5
7
9
1.84%
0.60%
4.74%
GDP GROWTHGDP | CPI
ITEM
5.42%5.03%
5.98%6.04%6.81%
6.68% 6.21%
3.53% 3.54%
7.08%6.81% 7.02%
2.79%
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Evaluation of the Board of Directors on the businessresults of the Company and the Board of Management
2019 BUSINESS PERFORMANCE and assessmentof the Board of Management
In 2019, revenue reached VND 16,634 billion, increasing by 9% compared to that of 2018. Profit before tax reached VND 278 billion, decreasing by 36% compared to that of 2018. This decline is due to:
Investment in digital transformation for FRT, including both FPTshop and Long Chau chain.Expansion of Long Chau chain to quickly increase market share after a successful trial period.
By the end of 2019, FPT Retail's total revenue reached VND 16,634 billion, being an increase of 9% compared to 2018.Revenue from retailing mobile phones and Apple products in 2019 reached VND 13,141 billion, increasing by 5.2% compared to that of 2018 and contributing 79% to the total net revenue of FPT Retail. The drive for growth comes from the fact that FPTshop has opened 60 more stores in the year, and boosted online sales with online exclusive promotions and discounts. Mobile companies are also very well aware of con-sumer psychology, constantly improving and launching new products. Products being well received by consumers include: Iphone 11, Iphone 11 pro max, Samsung galaxy fold, Samsung A51, and new phones from Xiaomi, Vivo, Oppo, etc.Revenue from personal computers and tablets reached VND 1,484 billion, slightly growing from 2018 and accounting for 9% of the net sales. As the screen size of smartphones increases, demand for tablets decreases. However, with the advantage of being the market leader in the laptop segment, FPT Retail's sales of laptops and personal computers in 2019 managed to increase slightly by 0.6% compared to that 2018.With the strategy set out in early 2019 to focus on accessories sales, accessories and other ser-vices revenue reached VND 1,497 billion, growing by 9% compared to that at the beginning of 2019, contributing 13% to the total net revenue.The new business segment, Pharmaceuticals, has been consolidated into FRT since the end of 2018. In 2019, the pharmaceutical sales reached VND 511 billion, which is equivalent to 3% of the parent compa-ny's total net revenue. Also in this year, Long Chau opened 50 new stores, lifitng the total number of stores to 70.
REVENUE STRUCTURE
KẾT QUẢ HOẠT ĐỘNG KINH DOANH
20182019
2000
Revenue Operatingprofit
Profitafter tax
Equity Total assets
4000
6000
8000
10000
12000
14000
16000
18000
5,168
6,594
1,279348203
16,634
15,298
4032731,159
Provisions for bad debt provision from F.Friends and Subsidy programs in the fourth quarter of 2019.
The Company's online sales reached a significant number of VND 3,899 billion, sharply jumping by 60% compared to that of 2018 and accounted for 23.4% of total net revenue.
In 2019, the business for accessories and digital sim cards became a highlight when achieving a high growth rate, specifically: The number of accessories and sim cards sold respectively reached 5.2 million and 858 thousand products, growing by 29% and 67% compared to that of 2018.
In 2019, the total number of stores reached 593, increasing by 60 shops compared to that at the end of December 2018. Average sales reached 2.3 billion VND / store month, equivalent to average monthly revenue of stores in 2018.
BUSINESS PERFORMANCE BUSINESS PERFORMANCE
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Planning for development Evaluation of the Board of Directors on the Boardof Management
General assessment on the activities of the BOD
In 2019, the Board of Directors has well performed its functions at corporate governance, supervision, and business as well as directing the implementation of the resolutions issued by the Annual and Extraordinary General Meeting Resolution and the Board of Directors in 2019, ensuring that the Board of Directors is fully and properly updated with the contents of these resolutions. At the same time, the Board of Directors continued focusing on directing the Board of Management to achieve the strategic goals and business plans while constantly strengthening the Company's strategic planning.
ABOUT THE RETAILING MARKETAccording to Vietnam Report, in recent years, Vietnam's retail industry has experienced rapid growth. The compound annual growth rate (CAGR) in the period of 2013-2018 was at 10.97%. Total retail sales are also expected to reach US $ 180 billion by 2020, which is equivalent to an increase of 26.6% from 2018. However, the stellar rise of digital retail and e-commerce channels is noteworthy in the near future.
According to World Bank's forecast, household spending will increase by 10.5% per year on average for the strong growth of middle class. Currently about 70% of Vietnam's population is economically secure, 13% of which belongs to the middle class according to international standards. These income classes are growing rapidly, expected to reach 26% by 2026. Since 2014, an average of 1.5 million Vietnamese people have entered the middle class every year, which shows that households continue to climb higher upwards the economic ladder after escaping from poverty. Economic growth, improved living standards and the rise of the middle class form a solid foundation to stimulate growth of the retail industry in the future. Moreover, Vietnam is the fastest growing market in Southeast Asia, so the retail industry is expected to have a lot of potential for further growth. In addition, ENT has been restricting foreign enterprises' ability to open a second retail store onwards. Therefore, Viet-namese retail businesses will not have to face signifi-cant competition from foreign retail groups until 2024, when ENTs is set to be removed (5 years since CPTPP takes effect).
Therefore, the pharmaceutical market in Vietnam is considered highly potential to investors. According to the market research firm BMI, revenues from this market will increase from US $ 7.7 billion in 2021 to US $ 16.1 billion in 2026. The compound annual growth rate will reach 11%, when calculated in VND. In addi-tion, the market research firm Ken Research also forecasts that sales of the pharmaceutical market in Vietnam will rapidly grow in the period of 2020-2022, from US $ 7.6 billion to US $ 10.1 billion. Similarly, research firm IMS Health also estimates an increase in per capita pharmaceutical spending to US $ 50 / person / year by 2020 compared to US $ 20 / person in 2015 – 2017. Currently, the pharmaceutical retail market in Vietnam proves to be rather fragmented. As incomes and health awareness increasing, people tend to choose modern, branded pharmacies that meet GPP standards (Good Pharmacy Practices), instead of small, unqualified drugstores. This transition is being accelerated in part thanks to the Govern-ment's policies to control the retail market of pharmaceuticals through pharmacies (Circular No. 02/2018 / TT-BYT). drug retail outlets). According to calculations, 25% of pharmaceutical revenue in Vietnam, equivalent to nearly 2 billion USD (in 2021) and 4 billion USD (in 2026), will flow into the retail market through pharmacies.
For the pharmaceutical industry, according to the World Bank, population aging in Vietnam is rapid-ly worsening. An aging population means more health care spending.
The Board of Directors highly appreciates the Board of Man-agement's efforts in trying to make investment in expanding stores in the context of ICT growth slowing down. Business efficiency of Sim cards and accessories is also a remarkable figure. For the pharmacy store chain, the Board of Directors recognizes the Board of Man-agement's effort in figuring out the success formula in 2019, which is the essential foundation for scaling up the chain to other provinces and cities across the country in 2020.
During the course of operation, the Board of Management complied with the applicable Laws, the Com-pany's Charter, Resolutions of the General Meeting of Shareholders, Resolutions of the Board of Direc-tors and Decisions of the Chairman of the Board of Directors.Coordinating with the Supervisory Board in a timely manner to quickly grasp the Company's performance to offer practical recommendations to help the CEO and the Board of Management fulfill the targets assigned by the General Meeting of Shareholders and the Board of Directors.
BUSINESS PERFORMANCE BUSINESS PERFORMANCE
Responsibility to the community andthe environment
Planning for development
Recognizing the opportunities and challenges of the retail market in Vietnam, FPT Retail has an aim to maintain the growth rate of ICT chain in 2019 as equivalent to that in 2018. This is also the source for FRT to expand new chains and other new business strategies. With the goal of continueing to expand Long Chau store chain, FPT Retail has planned for 2020 business strategies as following:
1continue to focus on boosting the revenue of the store system by introducing eye-glasses and watches, etc. under shop - in – shop method. At the same time, the company will continue to con-duct trainings on sales and customer service skills for all employees. Along with invest-ing in human resources, the company will increase spend-ing in equipment, freshen store image and implement practical promotional pro-grams.
In 2020, FPT Retail will After finding a success formula for the Long Chau chain, in 20202
FPT Retail plans to expand it to 220 stores nationwide. According to surveys, FPT Retail considers pharmaceuticals as a potential market for long-term development and believes that its growth will follow the booming of this industry to come. Therefore, in the long-term, FPT Retail plans to develop the pharmaceutical segment in a planned and controlled manner that is similar to the operation of the digital product retail system. Accordingly, the company will focus on developing its logistics resources, increasing the number of pharmacies, developing personnel with managerial and professional qualifications to increase operational efficiency.It is known that the pharmaceutical retail industry is divided into three channels: hospitals, clinics and pharmacies. FPT Retail continues to expect about 30% market share of pharmaceutical retail market through pharmacies in the next 3-4 years, the pharmacy segment will contribute about 40% of the company's total revenue, estimatedly VND 5,000 billion.
3 In the context of strong digital transformation across enterprises, FPT Retail does not stay out of this trend. Therefore, in 2020, FPT Retail will invest in building and constantly perfecting the stan-dard retail platform as a premise to accelerate new business directions as well as to create mo-mentum for future growth.
As a globally oriented enterprise, FPT Retail is well aware that sustainable development of a company depends on the community in which it operates. Therefore, after more than 8 years of establishment and development, FPT Retail always strives to realize its economic goals associated with the highest support for the community and society. At FPT Retail, these activities play an important role and are highly participated by the company's employees & leaders.
HUMAN ISTHE FACTORTHEN BOLTSFor many years, FPT Retail has consistently followed through with its sustain-able development activi-ties where human is the key factor. Therefore, FPT Retail always focuses on investing in human resource development as well as education and support for the younger generation.
Along with that, kindness and sharing are also key factors for society stabilizing and developing. Every year, FPT Retail's employees contribute to sustainable development with practical actions, from directly accom-panying the Company in volunteer activities to contributing in funding. Particularly in 2019, FPT Retail and its staff spent nearly VND 1 billion on community activities, supporting tens of thousands of people nation-wide, of which:
- 689,662,420 VND was for the contribution of FPT Retail employees in the program "FPT Retail's 1-day salary for the community: - Over VND 245,000,000 was raised from individuals' contributionsThis funding is mainly utilized by FPT Retail for the following three purposes - Support for education and for disadvantaged children- Volunteering activities to support employees undergoing difficult circumstances, serious traf-fic accidents or unfortunate life-threatening illnesses or that of their spouses / children.- Natural disaster relief activities.
26 27
INVESTING IN TECHNOLOGY
3
PLANNING FOR PHARMACEUTI-
CAL RETAIL
2
IMPROVING BUSINESS EFFI-
CIENCY AT STORE LEVEL
1
BUSINESS PERFORMANCE BUSINESS PERFORMANCE
Responsibility to the community andthe environment
Responsibility to the community andthe environment
Investment activities for education and the younger generation:In 2019, FPT Retail used 55% of the total spending on social responsibility activities to invest in education and the younger gen-eration, through the following activities:
FPT Program "FPT Retail Home-com-ing"* PURPOSE - MEANING- Encouraging and creating opportunities for them to do charity in their own home-land;- Facilitating employees to encourage their relatives, colleagues and friends to partake in volunteering activities;- Create opportunities for executives to participate; Encouraging sharing and con-nection among colleagues, between lead-ers and employees;- Mobilizing additional funding for volunteer activities;- Increasing the percentage of leaders and employees directly involved in volunteer activities.
In 2019, FPT Retail has organized 4 meaningful volunteer trips to poor children across the country to help rebuild and support their education. Our dozens of computers, thousands of uniforms, hundreds of thousands of gifts and various playgrounds have partly provided the children with more access to new knowledge. The program has spent a total of 300 million for the above activi-ties. Specifically:
"FPT RETAIL HOME-COMING"
Volunteering program at Tra Con C Primary School - Vinh Long which is locat-ed in Thon Ron hamlet, Tra Con commune, Tra On district, with 295 pupils. People there live mainly on cultivation and animal hus-bandry or work as hired laborers for a living. The delegation presented bookcases, modern audiovisual rooms, 295 sets of school supplies, candies, curtains, mobile speakers etc.
Volunteering program at Tra Vinh Ethnic Boarding Primary & Secondary School - Quang Ngai. The school has 377 pupils, all of whom are ethnic minorities. Tra Vinh School provides education for grade 1 to grade 9, with 3 subordinate sites, each of which is 7km to 10km from the main school. The delegation present-ed audiovisual rooms, dozens of study corners, 377 uniforms, sweets and a playground for the children.
Volunteering program at Tra Vinh Ethnic Boarding Primary & Secondary School
The school has 110 pupils, 100% of whom are ethnic minorities. The delegation presented 1 audiovisual room with full equipment, 10 sets of study corner, 110 uniforms, and playground for the children, etc.
The school has 470 students, 100% of whom are ethnic minorities, studying in 1 main school site and 3 other subordinate sites. The delegation presented 1 audiovisual room with full equipment, 10 sets of study corner, 110 uniforms, candies, school supplies, etc.
Charity program of Cao Son Ethnic Boarding Primary School, Ba Thuoc
Volunteering program at Cam Con Primary and Secondary School,Bao Yen District, Lao Cai Province
28 29
BUSINESS PERFORMANCE BUSINESS PERFORMANCE
CORPORATE GOVERNANCECorporate governance modelResponsibility to the community and
the environment
SUPPORTING ACTIVITIES FOR FPT RETAIL EMPLOYEES
In order to inspire compassion and support for FPT Retail people, we have built a system to provide information on employees under-going difficulties to provide timely aid. In 2019, we have supported over 22 cases of disadvantaged employees, using more than VND 500,000,000, over VND 200,000,000 of which was from individual contributions. Thanks to that, dozens of staff members received the much- needed support to over-come struggles, securing their working per-formance.
2019 was a year to be grateful for as there were not severe natural disasters causing heavy losses like in the previous years. For that reason, FPT Retail did not implement its natural disaster relief program in 2019, but instead carried out a series of environmental protection activities such as trash exchange for plants, battery collection, running in exchange for plants, trees planting, etc. with the participation of thousands of staff.
FPT Retail and FPT Corporation have cooperated with the Central of Vietnam Youth Federation and Vietnam Volunteer Center (VVC) to organize the "Pioneer for the Community Day" program in response to the "Good Deeds Day" Campaign and "FPT Day for the Community" on 13/3. The program attracted more than 500 participants from FPT Retail, followed by social welfare activi-ties and programs such as: repairing hundreds of charity houses, building playgrounds for children in remote areas and other educational support activities across the country etc. In 2019 FPT continues to maintain the tradition of blood donating, and gave away nearly 300 units of blood.
In addition, with the desire to devote to the prin-ciple that each FPT employee directly partici-pates in volunteer activities for the community, aiding the disadvantaged, FPT Retail encourag-es each employee to contribute a minimum of one day's salary to the FPT People Fund for the community.
NATURAL DISASTER RELIEF AND ENVIRONMENTAL PROTECTION ACTIVITIES
GENERAL MEETINGOF SHAREHOLDERS
THE BOARDOF DIRECTORS
CHAIRWOMAN OF THEBOARD OF DIRECTORS
CEO AND THE BOARDOF MANAGEMENT
SUPERVISORYBOARD
GENERAL MEETING OF SHAREHOLDERSThe highest authority of the Company; performs functions and rights and obligations in accordance with the Company's Charter and applicable laws.
BOARD OF DIRECTORSThe highest governance body of the Company; is given the right to act on behalf of the Company to decide and perform the rights and obligations that are not under the authority of the General Meeting of Shareholders in accordance with the provisions of the Charter and applicable laws.
CHAIR OF THE BOARD OF DIRECTORSThe legal representative of the Company; is responsible for managing the Board of Directors' tasks between the two meetings, reviewing and deciding on the Company's governance activities in accordance with the Company's Charter, relevant internal regulations and applicable laws. Chair of the Board of Directors: Ms. Nguyen Bach Diep
SUPERVISORY BOARDSupervising the BOD and CEO in the Company's operations; is responsible before the General Meeting of Shareholders to perform the assigned tasks. Head of the Supervisory Board: Mr. Nguyen Tien Hao
FRT has complied with all the laws and regulations upon corporate governance, especially for listed public limited companies, including:- Law on Enterprises (2014).- Decree 71/2017 / ND-CP Guidelines on corporate governance of public companies.- Circular 95/2017 / TT-BTC guiding Decree 71/2017/ND-CP on corporate governance of public companies.- Circular 155/2015 / TT-BTC on guidelines for information disclosure on securities market.
30 31
BUSINESS PERFORMANCE
Resolutions and Decisions of the Board of DirectorsOperations of the Board of Directors
The Board of Directors consists of 05 members. In 2019, the Board of Directors held 10 meetings (from January to December). As follows:
01.2019/NQ-HĐQT/FRT 11/01/2019
Approving the dismissal of Ms. Vu Thanh Huyen from the position of Chief Accountant of the Company, and appointing her to the position of Chief Financial Officer of the Company. Approving the appointment of Ms. Pham Thi Ngoc Anh to the position of Chief Accountant.
Approving the organization of the Annual General Meet-ing of Shareholders in 2019
Approving the addition of new business lines and the report for "Additional business lines" to the Annual Gen-eral Meeting of Shareholders in 2019
Approving the implementation of the Employee stock ownership plan based on 2018 business results
13/02/2019
25/03/2019
11/04/2019
02.2019/NQ-HĐQT/FRT
03.2019/NQ-HĐQT/FRT
04.2019/NQ-HĐQT/FRT
1
2
3
4
Approving the organization of the extraordinary General Meeting of Shareholders in 2019
03/05/201905.2019/NQ-HĐQT/FRT5
Approving the increase of charter capital, from VND 680 billion to VND 686.8 billion (Reason: Increasing charter capital according to the Employee stock ownership plan at a rate of 1%)
13/05/201906.2019/NQ-HĐQT/FRT6
Approving cash dividend payment for 2018
Appointing Person in charge of corporate governance
28/05/201907.2019/NQ-HĐQT/FRT7
Conducting the issuance of stocks to pay dividends in 2018 and ratifying the issuance documents10/07/201908.2019/NQ-HĐQT/FRT8
Approve the increase of charter capital from VND 686,800,000,000 to VND 789,817,920,000 (Reason: Increasing charter capital according to the stocks issu-ance for dividend payment in 2018 plan at a rate of 15%)
09/08/201909.2019/NQ-HĐQT/FRT9
24/12/201910.2019/NQ-HĐQT/FRT10
Order RESOLUTION / DECISION DATE CONTENT
Report the cost of remuneration of the Board of Directors:- Chairwoman of the Board of Directors: 0 VND/year. - Member of the Board of Directors: 0 VND/year.- Board Secretary: 0 VND/year.Total remuneration paid in 2019: 0 VND.
Report of the Supervisory BoardActivities of the Supervisory Board:The Supervisory Board of FPT Digital Retail Joint Stock Company consists of 3 members. It held 3 meetings in 2019, specifically as follows:
Order
1
2
3
SUPERVISORYBOARD
Nguyen Tien Hao
Ngo Thi Minh Hue
Bui Huy Cuong
Head
Member
Member
POSITION SUPERVISORY BOARD MEMBERSHIPCOMMENCEMENT DATE NUMBER RATE
Appointed as member of the Supervisory Board on 28/03/2018; Appointed as Head of the Supervisory Board on 29/03/2018
28/03/2018
07/03/201732 33
3/3 100%
3/3 100%
3/3 100%
NGUYEN BACH ĐIEPPosition: ChairwomanNumber of BOD meetings attended: 10/10Meeting attendance rate: 100%
NGUYEN THE PHUONG
LE HONG VIET
TRINH HOA GIANG
Position: MemberNumber of BOD meetings attended: 10/10Meeting attendance rate: 100%
Position: MemberNumber of BOD meetings attended: 10/10Meeting attendance rate: 100%
Position: MemberNumber of BOD meetings attended: 10/10Meeting attendance rate: 100%
Position: MemberNumber of BOD meetings attended: 10/10Meeting attendance rate: 100%
HOANG TRUNG KIÊN
CORPORATE GOVERNANCE CORPORATE GOVERNANCE
Report the cost of remuneration of the Boardof Directors
34 35
The Supervisory Board is responsible for supervising the Company's financial situations; the legality of the activities of members of the Board of Directors, the Board of Management and other executives; the coordi-nation among the Supervisory Board, the Board of Directors, the Board of Management and shareholders; and other duties in accordance to applicable laws and the Company's charter.
In 2019, the Board of Supervisors participated in the following periodic activities:- Quarterly meetings of the Board of Directors;- Extraordinary meetings of the Board of Directors;- The organization board of the Annual General Meeting of Shareholders in 2019.The Supervisory Board is also directly involved in supervising the management of the Compa-ny's operations:- Examining the rationality, legality, honesty and caution in the management and administration of busi-ness activities, in accounting, statistical work and financial statements;- Frequently discussing the activities of the Company with the Board of Directors to ensure that the Supervisory Board is closely updated to timely provide suggestions and advice;- Monitoring the development and implementation of the Company's rules and regulations;- Supervising the implementation of the Resolutions of the Annual and Extraordinary General Meeting of Shareholders in 2019;- Controlling slow moving inventory and provision for inventory.
ON THE BOARD OF DIRECTORS : In 2019, the Supervisory Board did not detect any unusual activities of members of the Board of Directors, members of the Board of Management and other executives of FPT Digital Retail Joint Stock Company. The Supervisory Board believes that the Board of Directors and the Board of Management have strictly and properly implemented their obligations and achieved high business efficiency.At the same time, the Supervisory Board also oversees the Board of Directors and Board of Directors during the course of:- Supervising and controlling the Company’s operations in accordance with the Law on Enterprises and the resolutions of the General Meeting of Shareholders in 2019;- Organizing of the Annual General Meeting of Shareholders in 2019, contributing to its success on March 27, 2019.- In 2019, the Board of Directors has properly undertaken its duties and authorities on the supervision, direction and issuance of the resolutions and decisions upon considerations of the actual situations of the Company;The Board of Directors also regularly conducts quarterly meetings and strictly follows the meeting proce-dures in accordance with the Law on Enterprises and the Company's Charter. ON THE BOARD OF MANAGEMENT:- In 2019, the Board of Management has actively implemented the production and business plan in accor-dance to the Resolution of the General Meeting of Shareholders and the resolutions of the Board of Direc-tors. FPT Retail's revenue for 2019 reached a total of VND 16,634 billion, growing by 8.7% compared to that of 2018. However, due to some factors mentioned in the report of the Board of Directors, profit before tax was VND 278 billion, decreasing by 36% compared to that of the previous year.- The Board of Supervisors agreed with the evaluation in the Board of Directors' report on business results in 2019 and the plans for 2020.
THE BOARD OF SUPERVISORS REPORTS
At the same time, there were no unusual cases in the activities of members of the Board of Direc-tors and Board of Management.
THE SUPERVISORY BOARD'S PLANS FOR 2020- Continuing to supervise the activities of the Board of Directors, the Board of Management in their business management and administration activities in accordance to the Resolution of the General Meeting of Shareholders, the regulations of the Law on Enterprises an other applicable laws.- Reviewing the company's reports upon the duties of the Supervisory Board.- Conducting periodic or irregular inspections at the request of shareholders or the Board of Direc-tors in the course of operation to prevent risks and ensure conformity with the laws and the Charter of the Company. - Maintaining the number of members at 03, with-out remuneration.
ON THE REPORT ON BUSINESS RESULTS IN 2019- The Supervisory Board also agreed with the figures and comments made by the auditors in the financial statements of the Company, audited by Deloitte Company.
ON THE COORDINATION BETWEEN THE SU-PERVISORY BOARD AND THE BOARD OF DIRECTORS, THE BOARD OF MANAGEMENT AND THE SHAREHOLDERS' OPINION IN 2019.- With a strong sense of responsibility, construc-tiveness and cooperation in all of its conducts, the Supervisory Board always contributes honest and valuable opinions to the Board of Directors in their decision making process.- In 2019, the Supervisory Board did not receive any written complaints or denunciations from the Shareholders about the violations of the Board of Directors, the Board of Management and the Supervisory Board during their conducts.
CORPORATE GOVERNANCEReport the cost of remuneration of the Boardof Directors
CORPORATE GOVERNANCE
Investor relationsInvestor relations
STOCK INFORMATION:Statistics of trading volume and price momentum of FRT shares in 2019 are as follows:
CategoriesOrder Quantity Unit
1
23
4
56
7
8
Total number of sessions 250 SessionTotal matched volume 16,816,166 Share
Total matched value 788,700 million VND
Total ask volume 24,228,430 Share
Total bid volume 29,637,320 Share
Highest trading volume 565,600 Share
Average trading volume per session 67,265 ShareHighest price 64,010 VND/ Share
Statistics on transactions of foreign investorsThe maximum foreign ownership ratio in FRT is 49%. The number of foreign trading sessions was 282 with the total buying volume of 7,766,406 shares, equivalent to VND 386,676,567,500 billion in trading value. The total selling volume was 8,509,896 shares, equivalent to VND 400,128,897,500 billion in trading value. As of December 31, 2019, the foreign ownership percentage reached a maximum of 47.8%.
Issuance of additional shares:In 2019, FRT implemented capital increases and divi-dends payments, specifi-cally as follows:- Issuing an additional 680,000 shares under the employee stock ownership plan at the rate of 1% in May 2019, 50% of the shares are restricted from transfer within one year from the date of completion of the issuance.- Issuing 10,302,000 addi-tional shares for stock divi-dend payments at the rate of 15% in August 2019,
- Making cash dividend pay-ments at the rate of 10% in August 2019Accordingly, the total number of additional shares issued in 2019 was 10,982,000, bringing the total number of outstanding shares to 78,981,792.The charter capital in 2019 increased from VND 680,000,000,000 to VND 789,817,920,000 according to the Resolution of the General Meeting of Shareholders in 2019.Treasury stock transactions:In 2019, there were no treasury stock transactions, so the number of treasury shares at the end of 2019 was 0.
36 37
SHAREHOLDER STRUCTUREBY TYPE OF STOCK
Ratio RatioA
1:1
A - COMMON STOCK Quantity: 78,981,792 Par value 10,000 VND
Ratio: 100%Voting rights 1:1
B
B - TREASURY STOCK Quantity: 0
Par value 10,000 VNDRatio: 0%
Voting rights 1:0
1:0
CORPORATE GOVERNANCE CORPORATE GOVERNANCE
Investor relationsInvestor relations
38 39
BY STOCK LEVEL
By geographical position:
1 - 5,000 1,361 762,941
947,8541,191,167840,1415,443,1884,707,18519,061,27846,028,038
88.0% 1.0%
1.2%1.5%1.1%6.9%6.0%24.1%58.3%100%78,981,792 100%1,547
6.1%2.3%0.8%1.5%0.5%0.8%0.2%
943512237123
5,000 - 20,000 20,000 - 50,00050,000 - 100,000100,000 - 500,000500,000 - 1,000,0001,000,000 - 3,000,000> 3,000,000
12345678
Total
TypeNumber of shares Shareholder Total shares
RatioLevel of stocks owned Numberof shareholders RatioNumber
of shares
Domestic shareholder4,315,77137,137,925
245,19337,282,903
5.5%47.0%
0.3%47.2%100%78,981,792100%1,547
88.6%1.2%
5.9%4.3%
1,37019
9266
IndividualOrganizationForeign shareholder
Total
IndividualOrganization
RatioType Numberof shareholders RatioNumber of stocks
10 largest shareholders:
FPT CorporationVof Investment LimitedHanoi Investments Holdings LimitedWareham Group LimitedAmersham Industries LimitedVietnam Enterprise Investments LimitedViet Nam Stock Mother FundCoeli Sicav I-frontier Markets FundDaiwa Vietnam Stock Mother FundSeahedge Philippines Fund
7.63%
46.53%
3.71%
1.83%1.79%1.76%
4.11%
3.36%2.62%2.19%
6,028,134 36,754,000
3,245,904 2,932,500 2,651,072 2,069,362 1,732,450 1,442,094 1,416,029 1,390,359
Number of shares10 largest shareholders Ratio
Dựa theo loại cổ phần
ACTIVITIES WITH SHAREHOLDERS AND INVESTORS2019 witnessed many fluctuations in the market as well as for FRT shares. FRT's Investor Relations department continued to diligently and constantly provide investors with information in the most timely, accurate and transparent manner.
Noteworthy activities in 2019 are as follows:- Complying with the regulations on information disclosure, ensuring timely disclosure;- Maintaining up-to-date informa-tion on the company's business results through quarterly business reports to investors, analysts and the Company website; Organizing regular Analyst meet-ings to directly provide and discuss information with Investors, reviewing the operational issues as well as updating on the company's business plans.
Vietnam Access Day seminar by Ban Viet Securities Company in March 2019.CLSA ASEAN Forum - Thailand conference in Thailand, March 2019;Emering Vietnam 2019 Conference by HSC in Ho Chi Minh city, June 2019;HSC Visit tour in June 2019;And many other workshops, including meetings between other funds and companies.
IN 2019, THE FRT BOARD OF DIRECTORS ALSO PARTICIPATED IN VARIOUS MAJOR CONFERENCES HELD BY DOMESTIC AND FOREIGN ORGANIZATIONS SUCH AS:
In 2020, the Investor Relations Depart-ment is set to continue to:
Be a complete and effective information bridge between FRT and investors; Provide timely and accurate information for investors;• Respect the benefits of investors and shareholders; Appreciate the opinions of Investors in order to reinforce the development of the Company.
CORPORATE GOVERNANCE CORPORATE GOVERNANCE
FPT DIGITAL RETAIL JOINT STOCK COMPANY (Incorporated in the Socialist Republic of Vietnam)
AUDITED CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31DECEMBER 2019
Page
40
41 - 42
43 - 44
45
46 - 47
48 - 72
CONTENTS
TABLE OF CONTENTS
AUDITED CONSOLIDATEDFINANCIAL STATEMENTS
STATEMENT OF THE BOARD OF EXECUTIVE OFFICERS
INDEPENDENT AUDITOR’S REPORT
CONSOLIDATED BALANCE SHEET
CONSOLIDATED INCOME STATEMENT
CONSOLIDATED CASH FLOW STATEMENT
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
40
AUDITED CONSOLIDATEDFINANCIAL STATEMENTSStatement Of The Board Of Executive Officers
41
Independent Auditors’ ReportNo.:/VN1A-HN-BC
Management’s Responsibility for the separate financial statements
To: The shareholdersTheBoard of Directors and The Board of Executive Officers FPT Digital Retail Joint Stock Company
We have audited the accompanying separate financial statements of FPT Digital Retail Joint Stock Com-pany (the “Company”), prepared on 27 March 2020 as set out from page 03 to page 28, which comprise the balance sheet as at 31 December 2019, the statement of income and statement of cash flows for the year then ended, and a summary of significant accounting policies and other explanatory information.
Management is responsible for the preparation and fair presentation of these separate financial state-ments in accordance with Vietnamese Accounting Standards, accounting regime for enterprises and legal regulations relating to financial reporting and for such internal control as management determines is necessary to enable the preparation of separate financial statements that are free from material mis-statement, whether due to fraud or error.
OpinionIn our opinion, the separate financial statements present fairly, in all material respects, the financial posi-tion of the Company as at 31 December 2019, and its financial performance and its cash flows for the year then ended in accordance with Vietnamese Accounting Standards, accounting regime for enter-prises and legal regulations relating to financial reporting.
Auditors’ ResponsibilityOur responsibility is to express an opinion on these separate financial 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 separate financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the separate financial statements. The procedures selected depend on the auditors’ judgment, including the assessment of the risks of material misstatement of the separate financial statements, whether due to fraud or error. In making those risk assessments, the auditors consider internal control relevant to the Company’s preparation and fair presentation of the separate financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company’s internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by management, as well as evaluating the overall presentation of the separate financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.
THE BOARDS OF DIRECTORS AND EXECUTIVE OFFICERS
Chairwoman MemberMember (resigned on 06 March 2020)MemberMember
Board of Directors
Ms. Nguyen Bach DiepMs. Trinh Hoa Giang Mr. Nguyen The PhuongMr. Le Hong VietMr. Hoang Trung Kien
Board of Executive Officers
Mr. Hoang Trung Kien Chief Executive Officer (assigned on 07 March 2020)Ms. Nguyen Bach Diep Chief Executive Officer (resigned on 07 March 2020)Ms. Trinh Hoa Giang First Deputy Chief Executive Officer Mr. Nguyen Viet Anh Second Deputy Chief Executive Officer
BOARD OF EXECUTIVE OFFICERS’ STATEMENT OF RESPONSIBILITY
The Board of Executive Officers of FPT Digital Retail Joint Stock Company (the “Company”) presents this report together with the Company’s separate financial statements for the year ended31 December 2019.
The members of the Boards of Directors and Executive Officers of the Company who held office during the year and to the date of this report are as follows:
The Board of Executive Officers of the Company is responsible for preparing the separate financial statements, which give a true and fair view of the financial position of the Company as at 31 December 2019, and its financial performance and its cash flows for the year then ended in accordance with Viet-namese Accounting Standards, accounting regime for enterprises and legal regulations relating to finan-cial reporting. In preparing these separate financial statements, the Board of Executive Officers is required to:
The Board of Executive Officers is responsible for ensuring that proper accounting records are kept, which disclose, with reasonable accuracy at any time, the financial position of the Company and that the separate financial statements comply with Vietnamese Accounting Standards, accounting regime for enterprises and legal regulations relating to financial reporting. The Board of Executive Officers is also responsible for safeguarding the assets of the Company and hence for taking reasonable steps for the prevention and detection of frauds and other irregularities.The Board of Executive Officers confirms that the Company has complied with the above requirements in preparing these separate financial statements.For and on behalf of the Board of Executive Officers,
• Select suitable accounting policies and then apply them consistently;• Make judgments and estimates that are reasonable and prudent;• State whether applicable accounting principles have been followed, subject to any material departures disclosed and explained in the separate financial statements; • Prepare the separate financial statements on the going concern basis unless it is inappropriate to pre-sume that the Company will continue in business; and• Design and implement an effective internal control system for the purpose of properly preparing and presenting the separate financial statements so as to minimize errors and frauds.
Hoang Trung Kien - Chief Executive Officer
27 March 2020
AUDITED CONSOLIDATEDFINANCIAL STATEMENTS
42
Independent Auditors’ ReportNo.:/VN1A-HN-BC
43
Consolidated Balance Sheet FORM B 01-DN/HN
Issued under Circular No.202/2014/TT-BTC dated 22 December 2014 of the Ministry of Finance
As at 31 December 2019
Unit: VND
Vu Duc NguyenDeputy General Director
Audit Practising Registration Certificate No. 0764-2018-001-1
DELOITTE VIETNAM COMPANY LIMITED
27 March 2020Hanoi, S.R. Vietnam
Audit Practising Registration Certificate No. 3641-2017-001-1
Bui Ngoc DuyAuditor
CURRENT ASSETS Cash and cash equivalents Cash Cash equivalents Short-term financial investments Held-to-maturity investments Short-term receivables Short-term trade receivables Short-term advances to suppliers Short-term loan receivables Other short-term receivablesProvision for short-term doubtful debts Inventories Inventories Provision for devaluation of inventories Other short-term assets Short-term prepayments Value added tax deductibles Taxes and other receivables from the State budget NON-CURRENT ASSETS Long-term receivables Other long-term receivables Fixed assets Tangible fixed assets - Cost - Accumulated depreciation Intangible assets - Cost - Accumulated amortisation Other long-term assets Long-term prepayments TOTAL ASSETS (270=100+200)
4
6
5
78910
11
12
16
9
13
14
12
100
110111112
120123
130131132135136137
140141149
150151152153
200
210216
220221222223227228229
260261
270
855,378,394,826 93,000,000,000
4,140,042,971
1,206,756,927,412 237,824,070,242 144,013,265,281 120,359,066,193 722,345,486,208 (17,784,960,512)
2,519,583,804,091 (13,364,886,890)
94,320,134,590 55,454,839,536
27,500
84,027,534,483
5,154,076,518 9,344,459,141
(4,190,382,623) 40,437,741,829 44,481,737,990 (4,043,996,161)
222,780,778,099
4,815,269,284,036
948,378,394,826
4,140,042,971
2,506,218,917,201
149,775,001,626
352,400,130,929
84,027,534,483
45,591,818,347
222,780,778,099
5,167,669,414,965
415,978,667,247 453,670,886,338
494,643,176,666
294,574,594,760 96,527,158,702
322,359,066,193 499,067,505,423 (34,459,114,652)
3,399,092,416,117 (15,550,241,137)
118,431,159,332 128,901,646,703
1,858,819
105,270,293,641
6,614,568,303 11,190,777,144
(4,576,208,841) 41,956,390,277 46,415,767,990 (4,459,377,713)
266,693,001,690
1,178,069,210,426
6,173,238,780,511
869,649,553,585
494,643,176,666
3,383,542,174,980
247,334,664,854
420,534,253,911
105,270,293,641
48,570,958,580
266,693,001,690
6,593,773,034,422
A.
I.1.2.
II.1.
III.1.2.3.4.5.
IV.1.2.
V.1.2.3.
B.
I.1.
II.1.
2.
III.1.
ASSETS CODES NOTES CLOSINGBALANCE
OPENINGBALANCE
AUDITED CONSOLIDATEDFINANCIAL STATEMENTS
44
Consolidated Balance Sheet FORM B 01-DN/HN
Issued under Circular No.202/2014/TT-BTC dated 22 December 2014 of the Ministry of Finance
As at 31 December 2019 As at 31 December 2019
Unit: VND
45
Consolidated Income Statement
ITEMS CODES NOTES CURRENTYEAR
PRIORYEAR
Gross revenue from goods sold and services rendered Deductions Net revenue from goods sold and services rendered (10=01-02) Cost of sales Gross profit from goods sold and services rendered (20=10-11) Financial income Financial expenses - In which: Interest expenseSelling expenses General and administration expensesOperating profit(30=20+(21-22)-(25+26)) Other income Other expensesProfit from other activities (40=31-32) Accounting profit before tax(50=30+40) Current corporate income tax expense
Net profit after corporate income tax (60=50-51-52)
Profit after tax attributable to Parent Company (Loss) after tax attributable to non-controlling shareholders
1.
2.3.
4.5.
6.7.
8.9.
10.
11.12.13.14.
15.
Deferred corporate taxexpense
24
24
2425
2728
2929
30
3016.
17.
17.1.
17.2.
591,311,306,900
15,298,334,565,89813,254,725,142,547
2,043,609,423,351 42,866,217,249 100,572,817,952 95,670,507,863 1,296,274,813,568
286,839,549,948
402,788,459,132 34,150,544,259 2,163,805,024
31,986,739,235
434,775,198,367 87,028,076,358
-
347,747,122,009
347,763,358,838
(16.236.829) , ,
4,314
15,889,645,872,798
354,996,798,915
14,522,902,581,026
78,050,133,404 147,964,791,194 135,183,263,352
1,419,309,973,054 349,010,009,416
5,334,005,795 153,872,420
67,875,765,738
6,279,401,759
213,015,479,163
9,167,987,408
2,612
16,633,959,747,163
2,111,057,166,137
272,822,525,877
5,180,133,375
278,002,659,252
203,847,491,755
16,988,956,546,07801
02
1011
2122232526
30313240
5051
6061
62
Basic earnings per share 3118. 70
52
20
Unit: VND
RESOURCES CODES NOTES CLOSINGBALANCE
OPENINGBALANCE
LIABILITIES Current liabilities Short-term trade payablesShort-term advances from customersTaxes and amounts payable to theState budget Payables to employeesShort-term accrued expenses Other current payablesShort-term loans and obligations Bonus and welfare funds
C.
I.1.
2.3.
4.5.6.7.8.
Owners' equity Owners’ contributed capital - Ordinary shares carrying votingrightsRetained earnings- Retained earnings accumulated tothe prior year end- Retained earnings of the current yearNon-controlling interests
TOTAL RESOURCES (440=300+400)
4,008,902,282,342
4,008,902,282,342 705,892,254,385
13,917,697,969 24,449,995,872
1,115,924,887 157,056,851,165 146,801,625,616
2,947,271,984,607 12,395,947,841
1,158,767,132,623 680,000,000,000
680,000,000,000 453,783,369,452
116,454,372,696 337,328,996,756
24,983,763,171
5,167,669,414,965
15
16
171820
21
311312
315
411
421
300
310
313
314
319320322
410
411a
421a
421b
429
440
I.1.
2.
3.
1,287,522,072,458 19,464,369,762
9,107,550,641
1,512,347,136 162,531,437,632 110,701,883,788
3,698,035,574,035 19,255,077,934
789,817,920,000
789,817,920,000 483,908,235,123
282,085,449,452 201,822,785,671
5,637,164,154
5,314,409,715,145
5,308,130,313,386
Long-term liabilitiesDeferred tax liabilities
II.1.
--19
330341 6,279,401,759
6,279,401,759
EQUITY 1,158,767,132,623400D. 1,279,363,319,2771,279,363,319,277
6,593,773,034,422
27 March 2020
Pham Thi Ngoc AnhPreparer/Chief Accountant
Pham Duy Hoang NamChief Financial Officer
Hoang Trung KienChief Executive Officer
27 March 2020
Pham Thi Ngoc AnhPreparer/Chief Accountant
Pham Duy Hoang NamChief Financial Officer
Hoang Trung KienChief Executive Officer
FORM B 01-DN/HN Issued under Circular No.202/2014/TT-BTC
dated 22 December 2014 of the Ministry of Finance
Unit: VND
46
Consolidated Cash Flow StatementAs at 31 December 2019
ITEMS CODES CURRENTYEAR
PRIORYEAR
payable)Changes in prepaid expensesInterest paidCorporate income tax paidOther cash outflowsNet cash (used in) operating activities
CASH FLOWS FROM INVESTINGACTIVITIESAcquisition and construction of fixed assets and other long-term assetsCash outflow for lending, buying debt instruments of other entities
Interest earned, dividends and profits receivedNet cash (used in) investing activities
currency itemsGain from investing activitiesInterest expenseOperating profit before movements in working capitalChanges in receivablesChanges in inventoriesChanges in payables (excluding accrued loan interest and corporate income tax
Foreign exchange gain arising from translating foreign
CASH FLOWS FROM OPERATINGACTIVITIESProfit before taxAdjustments for:Depreciation and amortisation of fixed assetsProvisions
1214151720
21
23
27
30
050608
091011
04
01
0203
(17,223,193,362) (90,618,315,335) (92,733,427,092) (8,350,581,050)(1,386,736,216,261)
(74,372,727)
(124,499,109,164)
19,961,655,437
(104,611,826,454)
(20,946,487,598) 95,670,507,863
522,376,900,373
(60,063,346,100) (790,234,430,865) (849,889,822,830)
(2,380,950,000)
434,775,198,367
781,002,276 14,477,629,465
I.
1.2.
3.
II.
1.
2.
Cash recovered from lending, selling debt instruments of other entities
24 -
(68,023,248,333)(133,877,354,423)
(82,148,822,013)(512,175,011)
(3,815,776,185)
(1,321,150,000,000)
49,329,885,363
(61,193,294,228)135,183.263,352
131,185,574,067(879,508,612,026)
554,572,458,872
(108,196,906,152)
(646,989,024,517)
370,115,272,715
278,002,659,252
836,635,95218,859,508,387
628,646,866,3053.
4.
Unit: VND
47
Consolidated Cash Flow StatementAs at 31 December 2019
ITEMS CODES CURRENTYEAR
PRIORYEAR
CASH FLOWS FROM FINANCINGACTIVITIESProceeds from share issue and owners’ contributed capital
31 25,000,000,000
6,800,000,000
III.
1.
Proceeds from borrowingsRepayment of borrowings
3334
8,665,290,182,642 (6,888,639,840,795)
11,735,834,006,696(10,983,496,917,268)
3.4.
Dividends and profits paid 36 -(68,680,000,000)5.
Buy-back of issued shares
32 -(14,000,000,000)2.
Net cash generated by financing activities
Net increase/(decrease) in cash (50=20+30+40)
Cash and cash equivalents at thebeginning of the year Cash and cash equivalents at the end of the year (70=50+60)
40
50
60
70
1,801,650,341,847
310,302,299,132
638,076,095,694
948,378,394,826
676,457,089,428
(78,728,841,241)
948,378,394,826
869,649,553,585
27 March 2020
Pham Thi Ngoc AnhPreparer/Chief Accountant
Pham Duy Hoang NamChief Financial Officer
Hoang Trung KienChief Executive Officer
FORM B 03-DN/HN Issued under Circular No.202/2014/TT-BTC
dated 22 December 2014 of the Ministry of Finance
FORM B 03-DN/HN Issued under Circular No.202/2014/TT-BTC
dated 22 December 2014 of the Ministry of Finance
48
Notes To The Consolidated FinancialStatementsThese notes are an integral part of and should be read in conjunction with the accompanying consolidated finan-cial statements
Structure of ownershipFPT Digital Retail Joint Stock Company (the “Company”) was incorporated under the first Enterprise Registration Certificate No. 0311609355 dated 08 March 2012 issued by Ho Chi Minh City Department of Planning and Investment and as amended.
The number of employees as at 31 December 2019 was 7,234(31 December 2018: 5,656).
Normal production and business cycleThe Company’s normal production and business cycle is carried out for a time period of 12 months or less.
The Company’s structure The Company’s head office is located at No. 261 - 263 Khanh Hoi, Ward 5, District 4, Ho Chi Minh City. As at 31 December 2019, the Company had branches in 63 provinces and cities throughout the country and 01 subsidiary as below:
Disclosure of information comparability in the consolidated financial statementsComparative figures are the figures of the audited consolidated financial statements for the year ended 31 December 2018.
Operating industry and principal activities- Retail of computers, peripherals, software and telecommunications equipment in specialized stores, viamail order or via internet;- Repair of machinery and equipment (except for mechanical processing, recycling, electroplating at head office);- Agents, brokers, auction;- Advertising;- Sales of spare parts and accessories of automobiles and other motor vehicles;- Wholesale of materials, other installation equipment used in construction;- Wholesale of other household appliances;- Wholesale of electronic and telecommunication equipment and components;- Wholesale of computers, peripherals and software;- Other information services: value added services on the Internet, data access services, online data and information processing services, electronic data interchange services;- Activities of insurance agents and insurance brokers;- Supply and management of labor resources; - Postal and delivery; and- Trading modern drugs, herbal drugs, traditional drugs, biological products requiring normal storage conditions.
GENERAL INFORMATION
49
Notes To The Consolidated Financial StatementsThese notes are an integral part of and should be read in conjunction with the accompanying consolidated financial statements
FORM B 09-DN/HN
Accounting conventionThe accompanying consolidated financial statements, expressed in Vietnam Dong (VND), are prepared under the historical cost convention and in accordance with Vietnamese Accounting Standards, accounting regime for enterprises and legal regulations relating to consolidated financial reporting.
The accompanying consolidated financial statements are not intended to present the financial position, results of operations and cash flows in accordance with accounting principles and practices generally accepted in countries and jurisdictions other than Vietnam.
Basis of consolidationThe consolidated financial statements incorporate thefinancial statements of the Company and enter-prises controlled by the Company (its subsidiary) up to 31December each year. Control is achieved where the Company has the power to govern the financial and operating policies of an investee enter-prise so as to obtain benefits from its activities.
The results of subsidiaries acquired or disposed of during the year are included in the consolidated income statement from the effective date of acquisition or up to the effective date of disposal, as appro-priate.
Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used in line with those used by the Company.
Intragroup transactions and balances are eliminated in full on consolidation.
Non-controlling interests consist of the amount of those non-controlling interests at the date of the original business combination and the non-controlling interests’ share of changes in equity since the date of the combination. Losses in subsidiaries are respectively attributed to the non-controlling inter-ests even if this results in the non-controlling interests having a deficit balance.
The significant accounting policies, which have been adopted by the Company in the prepara-tion of these consolidated financial statements, are as follows:
EstimatesThe preparation of consolidated financial statements in conformity with Vietnamese Accounting Stand-ards, accounting regime for enterprises and legal regulations relating to consolidated financial reporting requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities and disclosures of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the financial year. Although these accounting estimates are based on the management’s best knowledge, actual results may differ from those estimates.
Financial yearThe Company’s financial year begins on 01 January and ends on 31 December.
ACCOUNTING CONVENTION AND FINANCIAL YEAR
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Incorporationand operationplace
Proportion ofownershipinterest (%)
Proportion ofvoting powerheld (%)
Principal acitivity
FPT Long ChauPharma Joint StockCompany
Ho Chi MinhCity 87.21% 75% Pharmaceutical
business
FORM B 09-DN/HN Issued under Circular No.202/2014/TT-BTC
dated 22 December 2014 of the Ministry of Finance
Business combinations On acquisition, the assets and liabilities and contingent liabilities of a subsidiary are meas-ured at their book values at the date of acquisi-tion. Any excess of the cost of acquisition over the fair values of the identifiable net assets acquired is recognised as goodwill. Any defi-ciency of the cost of acquisition below the book values of the identifiable net assets acquired is credited to consolidated profit and loss in the year of acquisition.
The non-controlling interests are initially meas-ured at the non-controlling shareholders’ pro-portion of the net fair value of the assets, liabili-ties and contingent liabilities recognised.
Cash and cash equivalentsCash and cash equivalents comprise cash on hand, demand deposits and short-term, highly liquid investments that are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in value.
Financial investmentsHeld-to-maturity investments
Held-to-maturity investments comprise invest-ments that the Company has the positive intent or ability to hold to maturity, including term deposits held to maturity to earn periodic inter-est and other held-to-maturity investments.
Held-to-maturity investments are recognised on a trade date basis and are initially measured at acquisition price plus directly attributable transaction costs. Post-acquisition interest income from held-to-maturity investments is recognised in the consolidated income state-ment on accrual basis. Pre-acquisition interest is deducted from the cost of such investments at the acquisition date.
Held-to-maturity investments are measured at cost less provision for doubtful debts. Provision for doubtful debts relating to held-to-maturity
investments is made in accordance with prevail-ing accounting regulations.
Loan receivablesLoan receivables are measured at cost less pro-vision for doubtful debts. Provision for doubtful debts relating to loan receivables is made in accordance with prevailing accounting regula-tions.
ReceivablesReceivables represent the amounts recoverable from customers or other debtors and are stated at book value less provision for doubtful debts.
Provision for doubtful debts is made for receiva-bles that are overdue for six months or more, or when the debtor is in dissolution, in bankruptcy, or is experiencing similar difficulties and so may be unable to repay the debt.
InventoriesInventories are stated at the lower of cost and net realisable value. Cost comprises purchasing costs and other directlyattributable expenses that have been incurred in bringing the invento-ries to their present location and condition. The Company uses perpetual method to record inventories. Cost is calculated using first in-first out method. Net realisable value represents the estimated selling price less all estimated costs to completion and costs to be incurred in mar-keting, selling and distribution.
The evaluation of necessary provision for inven-tory obsolescence follows current prevailing accounting regulations which allow provisions to be made for obsolete, damaged, or sub-standard inventories and for those which have costs higher than net realisable values as at the consolidated balance sheet date.
50
Tangible fixed assets and depreciationTangible fixed assets are stated at cost less accumulated depreciation.
The costs of purchased tangible fixed assets comprise their purchase prices and any directly attributable costs of bringing the assets to their working condition and location for their intended use.
Tangible fixed assets are depreciated using the straight-line method over their estimated useful lives as follows:
PrepaymentsPrepayments are expenses which have already been paid but relate to results of operations of multiple accounting periods, including house rentals and other types of prepayments.
House rentals represent rentals that have been paid in advance. Prepaid house rentals are charged to the consolidated income statement using the straight-line method over the lease term.Long-term prepayments comprise costs of small tools and supplies issued for consump-tion, shop set-up costs which are expected to provide future economic benefits to the Compa-ny for one year or more. These expenditures have been capitalised as long-term prepay-ments, and are allocated to the consolidated income statement using the straight-line method in accordance with the current prevail-ing accounting regulations.
Intangible assets and amortisationLand use rightsIntangible assets representing the indefinite land use rights are not amortized.
Computer softwareIntangible assets representing computer soft-ware are stated at cost less accumulated amor-tisation. Computer software is amortised using the straight-line method over the duration from 3 - 5 years.
(a) the Company has transferred to the buyer the significant risks and rewards of ownership of the goods;(b) the Company retains neither continuing managerial involvement to the degree usually associated with; ownership nor effective control over the goods sold;(c) the amount of revenue can be measured reliably;(d) it is probable that the economic benefits associated with the transaction will flow to the Company; and(e) the costs incurred or to be incurred in respect of the transaction can be measured reliably.Revenue of a transaction involving the rendering of services is recognised when the outcome of such transactions can be measured reliably. Where a transaction involving the rendering of services is attributable to several years, revenue is recognised in each year by reference to the percentage of completion of the transaction at the consolidated balance sheet date of that year. The outcome of a transaction can be measured reliably when all four (4) following conditions are satisfied:(a) the amount of revenue can be measured reliably;(b) it is probable that the economic benefits associated with the transaction will flow to the Company;(c) the percentage of completion of the transac-tion at the consolidated balance sheet date can be measured reliably; and(d) the costs incurred for the transaction and the costs to complete the transaction can be meas-ured reliably.
Revenue recognitionRevenue from the sale of goods is recognised when all five (5) following conditions are satis-fied:
51
Buildings andstructures
YEARS
Machinery andequipment
Motorvehicles
25 - 50
3 - 5
6
Officeequipment
3
Notes To The Consolidated Financial StatementsThese notes are an integral part of and should be read in conjunction with the accompanying consolidated financial statements
FORM B 09-DN/HN Notes To The Consolidated Financial StatementsThese notes are an integral part of and should be read in conjunction with the accompanying consolidated financial statements
FORM B 09-DN/HN
Foreign currencies Transactions arising in foreign currencies are translated at exchange rates ruling at the trans-action date. The balances of monetary items denominated in foreign currencies as at the con-solidated balance sheet date are retranslated at the exchange rates on the same date. Exchange differences arising from the translation of these accounts are recognised in the consolidated income statement.
TaxationIncome tax expense represents the sum of the tax currently payable and deferred tax.
The tax currently payable is based on taxable profit for the year. Taxable profit differs from profit before tax as reported in the consolidated income statement because it excludes items of income or expense that are taxable or deducti-ble in other years (including loss carried forward, if any) and it further excludes items that are never taxable or deductible.
Deferred tax is recognised on significant differ-ences between carrying amounts of assets and liabilities in the consolidated financial state-ments and the corresponding tax bases used in the computation of taxable profit and is accounted for using balance sheet liability method. Deferred tax liabilities are generally recognised for all temporary differences and deferred tax assets are recognised to the extent that it is probable that taxable profit will be avail-able against which deductible temporary differ-ences can be utilised.
Related partyParties are considered to be related if one party has the ability to control the other party or exer-cise significant influence over the other party in making financial and operating decisions. Relat-ed parties of the Company are:- Enterprises that directly, or indirectly through one or more intermediaries, control, or are con-trolled by, or are under common control with the Company;- Individuals holding, directly or indirectly, an interest in the voting power of the Company that gives them significant influence over the Com-pany, key management personel of the Compa-ny and close members of any such individual’s family.- Enterprises in which a substantial interest in the voting power is held, directly or indirectly, by any above individuals or over which such indi-vidualsare able to exercise significant influence. - In considering each possible related party rela-tionship for purpose of preparation and pres-entation of consolidated financial statements, attention is directed to the substance of the relationship rather than the legal form.
Interest income is accrued on a time basis, by reference to the principal outstanding and at the applicable interest rate.
52
Deferred tax is calculated at the tax rates that are expected to apply in the year when the liabil-ity is settled or the asset realised. Deferred tax is charged or credited to profit or loss, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity.
Deferred tax assets and liabilities are offset when there is a legally enforceable right to set off current tax assets against current tax liabili-ties and when they relate to income taxes levied by the same tax authority and the Company intends to settle its current tax assets and liabili-ties on a net basis.
The determination of the tax currently payable is based on the current interpretation of tax regu-lations. However, these regulations are subject to periodic variation and their ultimate determi-nation depends on the results of the tax authori-ties’ examinations.
Other taxes are paid in accordance with the pre-vailing tax laws in Vietnam.
53
CASH AND CASH EQUIVALENTS
HELD-TO-MATURITY INVESTMENTS
VND 177,384,373,290
669,689,435,883 8,304,585,653
93,000,000,000948,378,394,826
VND101,890,134,793
296,633,948,25617,454,584,198
453,670,886,338
VND--
869,649,553,585
(i) Cash equivalents represent deposits at commercial joint stock banks with the term from 01 to 03 months and interest rate from4.3%to 5.5% p.a.
Held-to-maturity investments represent deposits at commercial joint stock banks with the original term of over 3 months and remaining term of less than 12 months and interest rate from 6.4% to 9.0% p.a.
SHORT-TERM TRADE RECEIVABLES
7,573,781,8044,191,029,258
VND11,313,632,000
10,790,000,0005,565,585,8624,191,029,258
226,059,259,180262,714,347,640237,824,070,242294.574.594,760
1,552,434,000 4,391,147,012
Opening balance
Cash on handBank demand depositsCash in transitCash equivalents (i)
Closing balance
Opening balance
Apple Vietnam Company LimitedAdvanced International Joint Stock CompanyHome Credit Vietnam Finance Company Limited Digital Town City Center Co., Ltd.Others
Closing balance
Receivables from related parties (See Note 33)
Notes To The Consolidated Financial StatementsThese notes are an integral part of and should be read in conjunction with the accompanying consolidated financial statements
FORM B 09-DN/HN Notes To The Consolidated Financial StatementsThese notes are an integral part of and should be read in conjunction with the accompanying consolidated financial statements
FORM B 09-DN/HN
Borrowing costsBorrowing costs are recognised in the consoli-dated income statement in the year when incurred unless they are capitalised in accord-ance with Vietnamese Accounting Standard No. 16 “Borrowing costs”. Accordingly, borrowing costs directly attributable to the acquisition, construction or production of qualifying assets, which are assets that necessarily take a sub-stantial period of time to get ready for their intended use or sale, are added to the cost of those assets, until such time as the assets are substantially ready for their intended use or sale. Investment income earned on the temporary investment of specific borrowings pending their expenditure on qualifying assets is deducted from the cost of those assets. For specific bor-rowings for the purpose of construction of fixed assets and investment properties, borrowing costs are capitalised even when the construc-tion period is under 12 months.Earnings per shareThe Company presents basic earnings per share (EPS) and diluted earnings per share (Diluted EPS) for its ordinary shares. Basic EPS is calcu-lated by having the profit or loss attributable to the ordinary shareholders of the Company divided by the weighted average number of out-standing ordinary shares during the year. Dilut-ed EPS is determined by adjusting the profit or loss attributable to the ordinary shareholders and the weighted average number of ordinary shares outstanding taking into consideration the effect of all dilutive potential ordinary shares, which comprise convertible bonds and share options.
(i) Represent loans to FPT Corporation with the term from 3 months to 6 months and interest rate from5.5% to 9.0% p.a.(ii) Represent loans to the Company’s employees with the term of 01 month and interest rate of 5.3% p.a.
(i) Represent receivables from suppliers as committed support to conduct marketing, advertising programs for agents.(ii) Represent receivables under the mobile subsidy program in respect of data pack applicable to opera-tors namely Vietnamobile Telecommunications Joint Stock Company and Mobifone Telecommunication Joint Stock Company.
SHORT-TERM ADVANCES TO SUPPLIERS
VND VND76,563,327,778
-19,963,830,924
96,527,158,702
-122,983,365,255
21,029,900,026144,013,265,281
Opening balance Closing balance
Opening balance Closing balance
Opening balance Closing balance
SHORT-TERM LOAN RECEIVABLES
VND VND220,000,000,000102,359,066,193322,359,066,193
220,000,000,000
-120,359,066,193120,359,066,193
-
OTHER RECEIVABLES
VND VND
54
437,714,515,252 374,777,968,319 32,030,767,955 76,931,858,070 20,546,831,948 8,683,423,083
1,801,285,494 2,618,141,784 1,050,500,000 257,744,072,917 5,923,604,774 1,590,022,035
499,067,505,423 722,345,486,208
(Details in Note 33) 5,077,780,822 -
Electronic Value Trading Company LimitedTan MTV One Member Limited CompanyOthers
FPT Corporation (i)Others (ii)Loan receivables from related parties (See Note 33)
a. Other short-term receivables
b. Other long-term receivables
Receivables from suppliers (i)Receivables under sales program (ii)Accrued interest incomeReceivables from employeesDeposits and mortgagesOther receivables
Other receivables from related parties
Deposits and mortgages 105,270,293,641 84,027,534,483 105,270,293,641 84,027,534,483
(*) Recoverable amount is stated at cost less corresponding provision for short-term doubtful debts.
55
4,191,029,259 (4,191,029,259)
4,874,957,781 (3,412,470,447)
46,586,691,676 (22,821,539,695)
13,446,917,506 (4,034,075,251)
Cost ProvisionRecoverable
amount (*) Payees
Digital Town City Center Co., Ltd.Other clients
Other clients
Other clients
Over 3 years
Over 2 yearsto 3 years
Over 1 year to 2 years
Over 6 months
69,099,596,222 (34,459,114,652)
-
1,462,487,334
23,765,151,981
9,412,842,255
34,640,481,570
Closing balanceVND
Cost ProvisionRecoverable
amount (*) Payees
Digital Town City Center Co., Ltd.
4,191,029,259 (4,191,029,259)
Other clients 33,031,263 (23,121,884)
Other clients 13,797,689,776 (6,898,844,888)
Other clients 22,239,881,604 (6,671,964,481)
Over 3 years
Over 2 yearsto 3 years
Over 1 year to 2 years
Over 6 months
40,261,631,902 (17,784,960,512)
-
9,909,379
6,898,844,888
15,567,917,123
22,476,671,390
Opening balance VND
BAD DEBTS
Notes To The Consolidated Financial StatementsThese notes are an integral part of and should be read in conjunction with the accompanying consolidated financial statements
FORM B 09-DN/HN Notes To The Consolidated Financial StatementsThese notes are an integral part of and should be read in conjunction with the accompanying consolidated financial statements
FORM B 09-DN/HN
(*) Provision for devaluation of inventories is stated at cost less corresponding net realisable value.
Opening balance Closing balanceVND VND
97,639,710,054 90,090,907,031 20,791,449,278 4,229,227,559
118,431,159,332 94,320,134,590
252,778,651,397 216,222,745,252 13,914,350,293 6,558,032,847
266,693,001,690 222,780,778,099
Closing balanceVND
11,162,601,645 - 6,987,441,761 -
3,380,942,372,711 (15,550,241,137)3,399,092,416,117 (15,550,241,137)
a. CurrentHouse rentalsOther short-term prepayments
b. Non-CurrentShop set-up costsOther long-term prepayments
Goods in transitTools and suppliesMerchandise
Cost Provision (*)
Opening balance VND
Goods in transit 4,536,530,042 -Tools and supplies 7,872,081,241 -
2,507,175,192,808 (13,364,886,890)Merchandise2,519,583,804,091 (13,364,886,890)
Cost Provision (*)
56
INVENTORIES
PREPAYMENTS
Notes To The Consolidated Financial StatementsThese notes are an integral part of and should be read in conjunction with the accompanying consolidated financial statements
FORM B 09-DN/HN
As at 31 December 2019, the cost of the Company’s tangible fixed assets includes VND 3,599,446,317(31 December 2018: VND 2,426,923,376) of fixed assets which have been fully depreciated but are still in use.
INCREASES, DECREASES IN TANGIBLE FIXED ASSETS
57
4,619,723,333 4,361,562,607 - 363,173,201 9.344,459,141 - 281,371,892 1,455,363,637 145,010,656 1,881,746,185 - (74,372,727) - 74,372,727 - - (35,428,182) - - (35,428,182)
4,619,723,333 4,533,133,590 1,455,363,637 582,556,584 11,190,777,144
90,097,603 3,766,154,500 - 334,130,520 4,190,382,623 46,657,092 193,312,269 112,061,875 69,223,164 421,254,400
- (35,428,182) - - (35,428,182) 136,754,695 3,924,038,587 112,061,875 403,353,684 4,576,208,841
4,529,625,730 595,408,107 - 29,042,681 5,154,076,518 4,482,968,638 609,095,003 1,343,301,762 179,202,900 6,614,568,303
TotalVND
Office equipment VND
Motor vehiclesVND
Machineryand equipment
VND Buildings, structures
VND
COSTOpening balanceAdditionsReclassificationDisposalsClosing balance
ACCUMULATED DEPRECIATIONOpening balanceCharge for the periodDisposalsClosing balance
NET BOOK VALUEOpening balanceClosing balance
Notes To The Consolidated Financial StatementsThese notes are an integral part of and should be read in conjunction with the accompanying consolidated financial statements
FORM B 09-DN/HN
As at 31 December 2019, the cost of the Company’s intangible assets includes VND 3,764,206,626 (31 December 2018: VND 2,053,467,999) of assets which have been fully amortised but are still in use.
INCREASES, DECREASES IN INTANGIBLE ASSETS
58
VND
44,481,737,9901,934,030,000
46,415,767,990
4,043,996,161 415,381,552
4,459,377,713
40,437,741,82941,956,390,277
4,187,737,9901,934,030,0006,121,767,990
4,043,996,161415,381,552
4,459,377,713
143,741,8291,662,390,277
40,294,000,000
-40,294,000,000
---
40,294,000,000 40,294,000,000
VND VNDCOSTOpening balanceAdditionsClosing balance
ACCUMULATED DEPRECIATIONOpening balanceCharge for the periodClosing balance
NET BOOK VALUEOpening balanceClosing balance
Land use rights Computer softwware Total
Notes To The Consolidated Financial StatementsThese notes are an integral part of and should be read in conjunction with the accompanying consolidated financial statements
FORM B 09-DN/HN
SHORT-TERM TRADE PAYABLES
59
Apple Vietnam Company LimitedSamsung ElectronicsVietnam Company LimitedSmart Phone Joint StockCompanyR&M E-Commerce CompanyLimitedVinh Khang Science &Technology Joint Stock CompanyMasscom Vietnam Joint Stock Company Synnex FPTDistribution CompanyOthers
Trade payables to related parties (Details stated in Note 33)
638,644,751,009192,542,745,976
47,698,207,600
33,525,374,150
27,756,561,200
26,672,549,46725,433,260,342
295,248,622,7141,287,522,072,458
3,075,050,631
638,644,751,009 192,542,745,976
47,698,207,600
33,525,374,150
27,756,561,200
26,672,549,46725,433,260,342
295,248,622,7141,287,522,072,458
264,273,844,32034,958,462,014
37,178,177,546
-
27,186,109,900
30,392,885,55326,458,779,041
285,443,996,011705,892,254,385
4,639,029,453
264,273,844,32034,958,462,014
37,178,177,546
-
27,186,109,900
30,392,885,55326,458,779,041
285,443,996,011705,892,254,385
Closing balance
Amount Amount able tobe paid off
Amount Amount able tobe paid off
VND
Opening balance VND
Notes To The Consolidated Financial StatementsThese notes are an integral part of and should be read in conjunction with the accompanying consolidated financial statements
FORM B 09-DN/HN
60
Closing balanceOpening balanceVND VND
TAXES AND OTHER RECEIVABLES FROM/PAYABLES TO THE STATE BUDGET
SHORT-TERM ACCRUED EXPENSES
27,50027,500
3,677,267,00120,174,777,79020,174,777,790
--
24,449,995,872
121,713,174121,713,174
2,743,409,865,45067,875,765,73813,936,070,4312,057,094,083
528,300,000
2,827,807,095,702
123,544,493123,544,493
2,746,371,826,24782,148,822,01312,043,498,590 2,057,094,083 2,057,094,083
2,843,149,540,933
1,858,8191,858,819
715,306,2045,901,721,515
2,490,522,922--
9,107,550,641
119,791,396,0353,585,432,179
12,297,889,80910,252,543,33416,604,176,275
162,531,437,632
106,360,492,927 10,927,076,223 12,006,023,568 8,946,634,405
18,816,624,042
157,056,851,165
a. ReceivablesPersonal income tax
b. PayablesValue added taxCorporate income taxPersonal income tax Contractor withholding taxOther taxes
VND
Openingbalance
Closingbalance
VND
Paid/Deductedduring the year
VND
Payableduring the year
VND
Accrued salaryAccruals for cost of salesAccruals for installment support costs Accrued interest expenseOther accruals
Notes To The Consolidated Financial StatementsThese notes are an integral part of and should be read in conjunction with the accompanying consolidated financial statements
FORM B 09-DN/HN
OTHER CURRENT PAYABLES
61
7,149,524,826101,907,555,715
1,644,803,247
110,701,883,788
769,228,975
4,052,013,031142,114,384,017
635,228,568
146,801,625,616
597,189,068
Closing balanceOpening balance
Closing balanceOpening balance
VND VND
DEFERRED TAX LIABILITIES
20%
6,279,401,759
6,279,401,759
20%
-
-
Trade union feeCollection on behalf of partnersOther payables
Other payables to related parties (Details in Note 33)
Corporate income tax rates used for determination of value of deferred tax liabilitiesDeferred tax liabilities arising from taxable temporary differences
Deferred tax liabilities
VND VND
Notes To The Consolidated Financial StatementsThese notes are an integral part of and should be read in conjunction with the accompanying consolidated financial statements
FORM B 09-DN/HN
Short-term borrowings from banks are unsecured with terms of less than 01 year and interest ratesas per each indebtedness certificate for the purpose of financing business operations. Loans in USD are subject to interest rates from 3.04% p.a to 3.25% p.a, loans in VND are subject to interest rates from 5.0% ttttttttp.a to 5.2% p.a.
Amount ableto be paid off
Amount
SHORT-TERM LOANS AND OBLIGATIONS UNDER FINANCE LEASES
62
VNDIn the year
VNDOpening balance
VND
907,717,250,000
532,004,140,607
496,000,000,000414,000,000,000
-
285,900,000,000235,862,594,000
55,788,000,000
20,000,000,000-
-
-
-
2,947,271,984,607
907,717,250,000
532,004,140,607
496,000,000,000414,000,000,000
-
285,900,000,000235,862,594,000
55,788,000,000
20,000,000,000-
-
-
-
2,947,271,984,607
2,886,627,950,000
1,718,648,849,469
1,523,500,000,0001,376,888,117,262
171,016,700,000
936,461,247,000537,596,335,525
868,165,500,000
20,000,000,000501,093,392,832
291,015,822,450
127,475,822,450
26,580,680,280
10,985,070,417,268
587,480,000,000
879,923.193,829
679,300,000,000716,823,000,000
-
416,000,000,000-
171,902,000,000
-246,607,380,206
-
-
-
3,698,035,574.035
587,480,000,000
879,923,193,829
679,300,000,000716,823,000,000
-
171,902,000,000-
246,607,380,206
--
-
-
-
3,698,035,574,035
2,566,390,700,000
2,066,567,902,691
1,706,800,000,0001,679,711,117,262
171,016,700,000
1,066,561,247,000301,733,741,525
984,279,500,000
-747,700,773,038
291,015,822,450
127,475,822,450
26,580,680,280
11,735,834,006,696
DecreasesIncreasesAmount ableto be paid off
Amount
HSBCHongKongJoint Stock Commercial Bank for Investment and Development of VietnamHSBC VietnamANZ Bank VietnamANZ BankSingaporeCitibank VietnamJoint Stock Commercial Bank for Foreign Trade of VietnamStandard Chartered Bank SingaporeFPT CorporationStandard Chartered Bank VietnamStandard Chartered Bank MUMUFG Bank, LtdVietnam Joint Stock Commercial Bank for Industry and Trade
,
Notes To The Consolidated Financial StatementsThese notes are an integral part of and should be read in conjunction with the accompanying consolidated financial statements
FORM B 09-DN/HN
(i) Resolution No. 01.2019/NQ-DHCDTN/FRT dated 27 March 2019 of the Annual General Meeting of Shareholders approved the plan to issue shares under the Employee Share Option Scheme based on the business results of 2018. Accordingly, the number of additionally issued shares is 680,000 shares equivalent to VND 6,800,000,000.(ii) Resolution No. 01.2019/NQ-DHCDTN/FRT dated 27 March 2019 of the Annual General Meeting of Shareholders approved the plan to distribute prof-its of 2018 in the form of cash dividend at the rate of 10% of par value/stock.At the same time, the Resolution also approved the plan to issue shares to existing shareholders with the rate of 15% to increase share capital from retained earnings. Accordingly, the number of additionally issued shares is 10,301,792 shares equivalent to VND 103,017,920,000.(iii) According to Decision No. 885/FRT/QD-HDTVof the Company’s Chairwoman dated 31 December 2019, the Company temporarily appropriated bonus and welfare funds from 2018 profit after tax at the rate of 3%. The final appropriation rate for bonus and welfare funds will be approved at the Annual General Meeting of shareholders in 2020.
OWNERS’ EQUITY
-400,000,000,000
-280,000,000,000
-
680,000,000,0006,800,000,000
-103,017,920,000
---
789,817,920,000
-396,454,372,696347,763,358,838280,000,000,000
(10,434,362,082)
453,783,369,452-
213,015,479,163(103,017,920,000)(68,680,000,000)
(7,371,305,101)(3,821,388,391)
483,908,235,123
-25,000,000,000
(16,236,829)-
-
24,983,763,171-
(9,167,987,408)---
(10,178,611,609)
5,637,164,154
-821,454,372,696347,747,122,009
-
(10,434,362,082)
1,158,767,132,6236,800,000,000
203,847,491,755-
(68,680,000,000)(7,371,305,101)
(14,000,000,000)
1,279,363,319,277
TotalVNDVND VNDVND
63
Prior year’s opening balanceIncrease due to business combinationProfit/(loss) for the yearProfit distributedto capitalProfit distributed to funds
Current year’s opening balanceCapital increase (i)Profit/(loss) for the yearProfit distributed to capital (ii)Dividends declared (ii)Profit distributed to funds (iii)Impact of subsidiary's treasuryshares purchases
Current year’s closing balance
Owners’contributed capital
Non-controlling interests
Retainedearnings
Notes To The Consolidated Financial StatementsThese notes are an integral part of and should be read in conjunction with the accompanying consolidated financial statements
FORM B 09-DN/HN
Charter capital and investment capitalAccording to the Company’s first Enterprise Registration Certificate No. 0311609355 dated 08 March 2012 and the 49th amended Certificate dated 01 November 2019, the Company’s charter capital is VND 789,817,920,000. The charter capital contribution by the owners as at 31 December 2019 had been fully made as follows:
OFF CONSOLIDATED BALANCE SHEET ITEMS
Opening balanceClosing balanceVND VND
VND
319,600,000,000 5,012,196,000
355,387,804,000
680,000,000,000
VND % VND %
Closing balanceShares
Opening balanceShares
367,540,000,000 60,281,340,000361,996,580,000
789,817,920,000
46.537.63
45.84
100.00
47.000.74
52.26
100.00
68,000,000-
68,000,000 -
--
78,981,792-
78,981,792 -
--
701,839 500,901
Banks
Guarantee lettersAs at 31 December 2019, Standard Chartered Bank Vietnam, HSBC Vietnam, MUFG Bank, Ltd., Viet-nam International Commercial Joint Stock Bank, Vietnam Prosperity Joint Stock Commercial Bank and Joint Stock Commercial Bank for Investment and Development of Vietnamissued payment guarantee letters to the Company’s partners. The outstanding guarantee balances of these letters as at 31 December 2019 were as follows:
300,000,000,000190,000,000,000100,000,000,000
22,743,047,2005,500,000,0002,456,592,500
620,699,639,700
FPT CorporationVOF Investment LimitedOthers
Closing balance Opening balance
Shares
- Number of shares issued to the public + Ordinary shares + Preference shares- Number of outstanding shares in circulation + Ordinary shares + Preference shares- Number of treasury shares + Ordinary shares + Preference shares
An ordinary share has par value of VND 10,000.
Foreign currencyUnited States Dollar (USD)
Standard Chartered Bank VietnamHSBC VietnamMUFG Bank, Ltd.Vietnam International Commercial Joint Stock BankVietnam Prosperity Joint Stock Commercial BankJoint Stock Commercial Bank for Investment and Development of Vietnam
Notes To The Consolidated Financial StatementsThese notes are an integral part of and should be read in conjunction with the accompanying consolidated financial statements
FORM B 09-DN/HN
A segment is a distinguishable component of the Company involved in the provision of related products or services (business segment), or the supply of products or services in a particular economic environment (geographical segment), each of which has risks and benefits differrent from those of other segments. Geographical segmentThe Company and its subsidiaries do not have any business activities outside Vietnam; therefore, the Company and its subsidiaries do not have geographyical segment outside Vietnam.Business segmentsIn terms of risk and economic benefits, the Board of Executive Officers has assessed that the Company and its subsidiary operate in two business segments: informatics equipment, mobile phones, components, related accessories, and pharmaceutical business.
For the financial year ended 31 December 2019
65
BUSINESS AND GEOGRAPHICAL SEGMENTS
VNDVNDVND
VND
16,123,176,430,175-
16,123,176,430,175
14,101,312,092,4991,636,568,529,908
15,737,880,622,407
385,295,807,768319,865,337,642
6,536,391,531,831 5,226,100,586,847
510,783,316,988-
510,783,316,988
421,590,488,527131,751,452,562
553,341,941,089
(42,558,624,101)(41,862,678,390)367,091,432,943 323,019,058,650
16,633,959,747,163-
16,633,959,747,163
14,522,902,581,0261,768,319,982,470
16,291,222,563,496
342,737,183,667278,002,659,252
6,593,773,034,422 5,314,409,715,145
---
---
--
(309,709,930,352) (234,709,930,352)
Segment revenueNet external salesNet inter-segment salesTotal segment revenue
Segment expensesCost of sales by segmentOperating expenses by segmentTotal segment expenses
Operating results by segmentProfit before tax by segmentSegment assetsSegment liabilities
Informatics equipment, mobilephones, components
and related accessories Elimination for
consolidation Pharmaceutical
business Total
Notes To The Consolidated Financial StatementsThese notes are an integral part of and should be read in conjunction with the accompanying consolidated financial statements
FORM B 09-DN/HN
66
VNDVNDVND VND
15,298,334,565,89823,064,545
15,298,357,630,443
13,254,748,207,0921,582,383,518,321
14,837,131,725,413
461,225,905,030434,840,145,684
5,158,052,059,805 4,024,219,979,865
---
-730,845,195
730,845,195
(730,845,195)(64,947,317)
105,063,357,500 5,128,304,817
15,298,334,565,898-
15,298,334,565,898
13,254,725,142,5471,583,114,363,516
14,837,839,506,063
460,495,059,835434,775,198,367
5,167,669,414,965 4,008,902,282,342
-(23,064,545)
(23,064,545)
(23,064,545)-
(23,064,545)
--
(95,446,002,340) (20,446,002,340)
Segment revenueNet external salesNet inter-segment salesTotal segment revenue
Segment expensesCost of sales by segmentOperating expenses by segmentTotal segment expenses
Operating results by segmentProfit before tax by segmentSegment assetsSegment liabilities
Informatics equipment, mobilephones, components
and related accessories Elimination for
consolidation Pharmaceutical
business Total
For the financial year ended 31 December 2018
Notes To The Consolidated Financial StatementsThese notes are an integral part of and should be read in conjunction with the accompanying consolidated financial statements
FORM B 09-DN/HN
REVENUE
COST OF SALES
PRODUCTION COST BY NATURE
FINANCIAL INCOME
67 68
15,747,480,005,667142,165,867,131
15,889,645,872,79819,648,104,045
591,311,306,900591,311,306,900
15,298,334,565,898
16,844,112,341,473144,844,204,605
16,988,956,546,07826,699,669,409
Prior yearVNĐ
Current yearVNĐ
Prior yearVNĐ
Current yearVNĐ
Prior yearVNĐ
Current yearVNĐ
354,996,798,915354,996,798,915
16,633,959,747,163
13,131,892,895,107115,339,160,173
7,493,087,267
14,419,620,804,032 101,096,422,747
2,185,354,24714,522,902,581,026 13,254,725,142,547
647,727,474,386 781,002,276
934,550,426,930 14,477,629,465
783,800,049,846 836,635,952
945,000,852,000 18,859,508,387
1,748,497,046,185 1,597,536,533,057
61,193,294,228 3,069,391,901
13,787,447,275 78,050,133,404
20,946,487,598 2,808,570,000 19,111,159,651
42,866,217,249
FINANCIAL EXPENSES
Prior yearVNĐ
Current yearVNĐ
95,670,507,863 4,902,310,089
100,572,817,952
135,183,263,352 12,781,527,842
147,964,791,194
SELLING EXPENSES AND GENERAL AND ADMINISTRATION EXPENSES
CORPORATE INCOME TAX EXPENSE
Prior yearVNĐ
Current yearVNĐ
Prior yearVNĐ
Current yearVNĐ
584,472,624,910 481,354,786,694 388,345,124,587 324,226,823,624 446,492,223,557 490,693,203,250
1,419,309,973,054 1,296,274,813,568
199,327,424,936 166,372,687,692 149,682,584,480 120,466,862,256
349,010,009,416 286,839,549,948
87,028,076,358
87,028,076,358
67,875,765,738
67,875,765,738
Prior yearVNĐ
Current yearVNĐ
-
-
6,279,401,759
6,279,401,759
Prior yearVNĐ
Current yearVNĐGross revenue from goods sold
and services rendered- Sales of goods sold- Sales of services rendered Revenue from related parties (Details in Note 33)Sales deductions- Sales returnNet revenue from goods sold and services rendered
Cost of goods soldCost of services renderedProvision for devaluation of inventories
LabourDepreciation and amortisationOut - sourced servicesProvision
Bank and loan interestForeign exchange gainOther financial income
Interest expenseForeign exchange loss
General and administrationexpensesLabour costOther expenses
Selling expensesLabour costShop rental feesOther selling expenses
Current corporate income tax expenseCorporate income tax expensebased on taxable profit in the current yearTotal Current corporate income tax expense
Deferred corporate income tax expenseDeferred corporate income tax expensearising from taxable temporary differences Total Deferred corporate income tax expense
Notes To The Consolidated Financial StatementsThese notes are an integral part of and should be read in conjunction with the accompanying consolidated financial statements
FORM B 09-DN/HN Notes To The Consolidated Financial StatementsThese notes are an integral part of and should be read in conjunction with the accompanying consolidated financial statements
FORM B 09-DN/HN
(i) For the purpose of calculating the basic earnings per share, the Company temporarily appropriated bonus and welfare funds for the year ended31 December 2019 at 3% of profit after tax.The allocation to bonus and welfare funds will be finalized at the Annual General Meeting of Shareholders in 2020.(ii) As stated in Note 21, in 2019, the Company issued shares to existing shareholders to increase share capital from retained earnings with a rate of 15%. Accordingly, the basic earnings per share of prioryear on the financial statements for the year ended 31 December 2019 were calculated including the effect of the number of additionally issuedshares. The basic earnings per share for the year ended 31Decem-ber 2018 was restated at VND 4,314/share (previously presented amount was VND 4,961/share).
BASIC EARNING PER SHARES
OPERATING LEASE COMMITMENTS
69
Prior year(restated)Current yearUnit
The calculation of the basic earnings per share attributable to ordinary shareholders of the parent company is based on the following data:
Earnings in the yearAllocation to bonus and welfare funds (i)Earnings for the purposes of calculating basic earnings per shareWeighted average number of ordinary share during the yearEffect of issuing shares on 01 August 2019 to existing shareholders to ncrease share capital from retained earnings (ii) Weighted average number of ordinary share for the purposes of calculating basic earnings per share Basic earnings per share
VNĐVNĐVNĐ
Shares
Shares
Shares
VNĐ
347,763,358,838(10,434,362,082)
337,328,996,756
68,000,000
10,200,000
78,200,000
4,314
213,015,479,163(7,371,305,101)
205,644,174,062
78,718,477
-
78,718,477
2,612
341,267,137,030394,210,656,884
Operating lease payments represent total payables by the Company for office and shop rentals. Minimum lease payment in the future under non-cancellable operating lease under the following terms:
310,227,836,798 576,851,174,723
5,318,000,000 892,397,011,521
386,394,401,219783,536,894,674
25,552,334,0001,195,483,629,893
Minimum lease payments under operating leasesrecognised in the consolidated income statement for the year
Within one yearIn the second to fifth year inclusiveAfter five years
Opening balance VND
Closing balanceVND
Opening balance VND
Closing balanceVND
RELATED PARTY TRANSACTIONS AND BALANCES
70
8,972,035,754 3,572,255,137
5,794,803,872 1,309,009,282
19,648,104,045
8,514,342,286 4,020,069,565 7,166,281,3296,998,976,229
26,699,669,409
6,625,519,356 25,555,420,433
- 240,625,000
32,421,564,789
6,722,304,188 8,998,181
25,921,283,287155,030,746
32,807,616,402
- --
31,960,000,000 133,000,000
32,093,000,000
70,859,066,193
-70,859,066,193
- 610,000,000,000
610,000,000,000
-
- 830,000,000,000
830,000,000,000
LIST OF RELATED PARTIES WITH SIGNIFICANT TRANSACTIONS AND BALANCES FOR THE YEAR:
DURING THE YEAR, THE COMPANY ENTERED INTO THE FOLLOWING SIGNIFICANT TRANSACTIONS WITH ITS RELATED PARTIES:
FPT Corporation
FPT Software Company Limited
FPT Telecom Joint Stock Company
FPT Information System Corporation
Ms. Nguyen Bach Diep
Related parties Relationship
Major shareholder (the Company is an associate of FPT Corporation)Affiliate (Associate and subsidiary of FPT Corporation) Affiliate (Associate and subsidiary of FPT Corporation)
Affiliate (Associate and subsidiary of FPT Corporation) Chairwoman cum Chief Executive Officer
SalesFPT Information System CorporationFPT Software Company LimitedFPT Telecom Joint Stock CompanyFPT Corporation
PurchasesFPT CorporationFPT Telecom Joint Stock CompanyFPT Information System CorporationFPT Software Company Limited
Dividend distributedFPT CorporationMs. Nguyen Bach Diep
Recovery from lendingMs. Nguyen Bach DiepFPT Corporation
LendingFPT Corporation
Interest income from lendingFPT Corporation 147,701,046
147,701,046 10,663,160,718
10,663,160,718
Prior yearVND
Current yearVND
Notes To The Consolidated Financial StatementsThese notes are an integral part of and should be read in conjunction with the accompanying consolidated financial statements
FORM B 09-DN/HNNotes To The Consolidated Financial StatementsThese notes are an integral part of and should be read in conjunction with the accompanying consolidated financial statements
FORM B 09-DN/HN
71
Opening balanceVND
Closing balanceVND
Prior yearVND
Current yearVND
Prior yearVND
Current yearVND
2,486,650,9061,876,886,906
24,429,2003,180,000
4,391,147,012
742,250,000150,254,00082,440,000
577,490,0001,552,434,000
562,500,0001,359,385,5051,153,165,126
3,075,050,631
562,500,0001,377,538,817
2,698,990,6364,639,029,453
5,077,780,822 5,077,780,822
--
220,000,000,000 220,000,000,000
--
769,228,975769,228,975
597,189,068597,189,068
3,323,465,753 2,697,500,000
27 March 2020
Pham Thi Ngoc AnhPreparer/ Chief Accountant
Pham Duy Hoang NamChief Financial Officer
Hoang Trung KienChief Executive Officer
72
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION
SIGNIFICANT RELATED PARTY BALANCES AS AT THE CONSOLIDATED BALANCE SHEET DATE WERE AS FOLLOWS:
REMUNERATION PAID TO THE COMPANY’S BOARDS OF DIRECTORS AND EXECUTIVE OFFICERS DURING THE YEAR WAS AS FOLLOWS:
Short-term trade receivablesFPT Information System CorporationFPT Telecom Joint Stock CompanyFPT Software Company LimitedFPT Corporation
Short-term trade payablesFPT Software Company LimitedFPT Telecom Joint Stock CompanyFPT Corporation
Other short-term receivablesFPT Corporation
Short-term loan receivablesFPT Corporation
Other short-term payablesFPT Telecom Joint Stock Company
Boards of Directors and ExecutiveOfficers’ remuneration
Supplemental non-cash disclosures
Interest income not yet receivedInterest expense not yet paid
20,546,831,94810,252,543,334
30,799,375,282
8,683,423,0838,946,634,405
17,630,057,488
Notes To The Consolidated Financial StatementsThese notes are an integral part of and should be read in conjunction with the accompanying consolidated financial statements
FORM B 09-DN/HNNotes To The Consolidated Financial StatementsThese notes are an integral part of and should be read in conjunction with the accompanying consolidated financial statements
FORM B 09-DN/HN
FPT DIGITAL RETAIL JOINT STOCK COMPANY(Incorporated in the Socialist Republic of Vietnam)
AUDITED SEPARATE FINANCIAL STATEMENTSFOR THE YEAR ENDED31 DECEMBER 2019
Page
73
74 - 75
76 - 77
78
79 - 80
81 - 103
CONTENTS
TABLE OF CONTENTS
AUDITED SEPARATEFINANCIAL STATEMENTS
STATEMENT OF THE BOARD OF EXECUTIVE OFFICERS
INDEPENDENT AUDITORS’ REPORT
BALANCE SHEET
INCOME STATEMENT
CASH FLOW STATEMENT
NOTES TO THE SEPARATE FINANCIAL STATEMENTS
Management’s Responsibility for the separate financial statements
To: The shareholdersTheBoard of Directors and The Board of Executive Officers FPT Digital Retail Joint Stock Company
We have audited the accompanying separate financial statements of FPT Digital Retail Joint Stock Com-pany (the “Company”), prepared on 27 March 2020 as set out from page 03 to page 28, which comprise the balance sheet as at 31 December 2019, the statement of income and statement of cash flows for the year then ended, and a summary of significant accounting policies and other explanatory information.
Management is responsible for the preparation and fair presentation of these separate financial state-ments in accordance with Vietnamese Accounting Standards, accounting regime for enterprises and legal regulations relating to financial reporting and for such internal control as management determines is necessary to enable the preparation of separate financial statements that are free from material mis-statement, whether due to fraud or error.
OpinionIn our opinion, the separate financial statements present fairly, in all material respects, the financial posi-tion of the Company as at 31 December 2019, and its financial performance and its cash flows for the year then ended in accordance with Vietnamese Accounting Standards, accounting regime for enter-prises and legal regulations relating to financial reporting.
Auditors’ ResponsibilityOur responsibility is to express an opinion on these separate financial 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 separate financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the separate financial statements. The procedures selected depend on the auditors’ judgment, including the assessment of the risks of material misstatement of the separate financial statements, whether due to fraud or error. In making those risk assessments, the auditors consider internal control relevant to the Company’s preparation and fair presentation of the separate financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company’s internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by management, as well as evaluating the overall presentation of the separate financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.
73
AUDITED SEPARATEFINANCIAL STATEMENTSStatement Of The Board Of Executive Officers
74
Independent Auditors’ ReportAUDITED SEPARATE
FINANCIAL STATEMENTSNo.: /VN1A-HN-BC
THE BOARDS OF DIRECTORS AND EXECUTIVE OFFICERS
Chairwoman MemberMember (resigned on 06 March 2020)MemberMember
Board of Directors
Ms. Nguyen Bach DiepMs. Trinh Hoa Giang Mr. Nguyen The PhuongMr. Le Hong VietMr. Hoang Trung Kien
Board of Executive Officers
Mr. Hoang Trung Kien Chief Executive Officer (assigned on 07 March 2020)Ms. Nguyen Bach Diep Chief Executive Officer (resigned on 07 March 2020)Ms. Trinh Hoa Giang First Deputy Chief Executive Officer Mr. Nguyen Viet Anh Second Deputy Chief Executive Officer
BOARD OF EXECUTIVE OFFICERS’ STATEMENT OF RESPONSIBILITY
The Board of Executive Officers of FPT Digital Retail Joint Stock Company (the “Company”) presents this report together with the Company’s separate financial statements for the year ended31 December 2019.
The members of the Boards of Directors and Executive Officers of the Company who held office during the year and to the date of this report are as follows:
The Board of Executive Officers of the Company is responsible for preparing the separate financial statements, which give a true and fair view of the financial position of the Company as at 31 December 2019, and its financial performance and its cash flows for the year then ended in accordance with Viet-namese Accounting Standards, accounting regime for enterprises and legal regulations relating to finan-cial reporting. In preparing these separate financial statements, the Board of Executive Officers is required to:
The Board of Executive Officers is responsible for ensuring that proper accounting records are kept, which disclose, with reasonable accuracy at any time, the financial position of the Company and that the separate financial statements comply with Vietnamese Accounting Standards, accounting regime for enterprises and legal regulations relating to financial reporting. The Board of Executive Officers is also responsible for safeguarding the assets of the Company and hence for taking reasonable steps for the prevention and detection of frauds and other irregularities.The Board of Executive Officers confirms that the Company has complied with the above requirements in preparing these separate financial statements.For and on behalf of the Board of Executive Officers,
• Select suitable accounting policies and then apply them consistently;• Make judgments and estimates that are reasonable and prudent;• State whether applicable accounting principles have been followed, subject to any material departures disclosed and explained in the separate financial statements; • Prepare the separate financial statements on the going concern basis unless it is inappropriate to pre-sume that the Company will continue in business; and• Design and implement an effective internal control system for the purpose of properly preparing and presenting the separate financial statements so as to minimize errors and frauds.
27 March 2020
Hoang Trung Kien - Chief Executive Officer
Vu Duc NguyenDeputy General Director
Audit Practising Registration Certificate No. 0764-2018-001-1
DELOITTE VIETNAM COMPANY LIMITED
27 March 2020Hanoi, S.R. Vietnam
Audit Practising Registration Certificate No. 3641-2017-001-1
Bui Ngoc DuyAuditor
No.: /VN1A-HN-BC
75
Independent Auditors’ Report
76
Balance Sheet FORM B 01-DN
Issued under Circular No.200/2014/TT-BTC dated 22 December 2014 of the Ministry of Finance
As at 31 December 2019
CURRENT ASSETS Cash and cash equivalents Cash Cash equivalents Short-term financial investments Held-to-maturity investments Short-term receivables Short-term trade receivables Short-term advances to suppliers Short-term loan receivablesOther short-term receivablesProvision for short-term doubtful debts Inventories Inventories Provision for devaluation of inventories Other short-term assets Short-term prepayments Value added tax deductibles Taxes and other receivables from the State budget
NON-CURRENT ASSETS Long-term receivables Other long-term receivables Fixed assets Tangible fixed assets - Cost - Accumulated depreciation Intangible assets - Cost - Accumulated amortisation
Other long-term assets Long-term prepayments TOTAL ASSETS (270=100+200)
4
6
5
78910
11
12
17
9
13
14
12
100
110111112
120123
130131132135136137
140141149
150151152153
200
210216
220221222223227228229
260261
270
855,222,356,532-
4,140,042,971
1,204,723,288,978 237,978,092,642 142,201,864,721
120,359,066,193 721,969,225,934 (17,784,960,512)
2,513,513,652,914 (13,364,886,890)
94,320,134,590 54,709,009,106
27,500
84,022,534,483
5,154,076,518 9,344,459,141
(4,190,382,623) 40,437,741,829 44,481,737,990 (4,043,996,161)
219,882,101,334
4,713,263,625,701855,222,356,532
4,140,042,971
2,500,148,766,024
149,029,171,196
424,496,454,164
84,022,534,483
45,591,818,347
219,882,101,334
5,137,760,079,865
404,279,655,623450,000,000,000
453,493,176,666
198,044,641,541 92,469,596,257
542,359,066,193 511,321,578,129
(34,459,114,652)
3,258,551,355,389 (15,550,241,137)
114,251,310,689 118,619,714,884
1,858,819
97,128,328,921
6,614,568,303 11,190,777,144
(4,576,208,841) 41,914,584,721
46,372,767,990 (4,458,183,269)
222,351,451,485
1,309,735,767,468
6,093,382,598,401
453,493,176,666
3,243,001,114,252
232,872,884,392
443,008,933,430
97,128,328,921
48,529,153,024
222,351,451,485
6,536,391,531,831
A.I.1.2.
II.1.
III.1.2.3.4.5.
IV.1.2.
V.1.2.3.
B.
I.1.
II.1.
2.
IV.1.
Long-term financial investments Investments in subsidiaries 15
250251 75,000,000,000
75,000,000,000 75,000,000,000
75,000,000,000III.1.
854,279,655,623
Unit: VND
ASSETS CODES NOTES CLOSINGBALANCE
OPENINGBALANCE
AUDITED SEPARATEFINANCIAL STATEMENTS
Unit: VND
RESOURCES CODES NOTES CLOSINGBALANCE
OPENINGBALANCE
77
Bbalance Sheet MẪU SỐ B 01-DN
Ban hành theo Thông tư số 200/2014/TT-BTCngày 22 tháng 12 năm 2014 của Bộ Tài chính
As at 31 December 2019
LIABILITIES Current liabilities Short-term trade payables Short-term advances from customersTaxes and amounts payable to theState budget Payables to employeesShort-term accrued expenses Other current payables Short-term loans and obligations Bonus and welfare funds
C.
I.1.
Long-term liabilities Deferred tax liabilities
II.1.
2.3.
4.5.6.7.8.
EQUITY Owners' equity Owners’ contributed capital - Ordinary shares carrying votingrights Retained earnings- Retained earnings accumulated tothe prior year end- Retained earnings of the current year
TOTAL RESOURCES (440=300+400)
16
17
181921
20
22
311312
315
411
421
300
310
313
314
319320322
330341
400
410
411a
421a
421b
440
D.
I.1.
2.
Unit: VND
ITEMS CODES NOTES CURRENTYEAR
PRIORYEAR
78
Income Statement FORM B 01-DN
Issued under Circular No.200/2014/TT-BTCdated 22 December 2014 of the Ministry of Finance
For the year ended31 December 2019
25
25
2526
2829
3030
31
31
591,311,306,900
15,298,357,630,44313,254,748,207,092
2,043,609,423,351 42,200,319,371 100,572,817,952 95,670,507,863
1.295,614,240,069 286,769,278,252
402,853,406,449 34,150,544,259 2,163,805,024
31,986,739,235
434,840,145,684 87,028,076,358
-
347,812,069,326
15,889,668,937,34301
02
1011
2122232526
30313240
5051
60
52
20
354,996,798,915
14,101,312,092,499
79,325,787,274 147,872,618,561 135,091,090,719
1,334,564,278,565 302,004,251,343
3,235,864,581 119,503,420
67,875,765,738
6,279,401,759
16,123,176,430,175
2,021,864,337,676
316,748,976,481
3,116,361,161
319,865,337,642
245,710,170,145
16,478,173,229,0904,003,927,999,925
4,003,927,999,925 701,189,728,968
13,917,697,969 24,449,995,872
1,115,924,887 156,816,235,165 146,770,484,616
2,947,271,984,607 12,395,947,841
--
1,133,832,079,940
1,133,832,079,940 680,000,000,000
680,000,000,000 453,783,369,452
116,454,372,696 337,377,707,244
5,137,760,079,865
1,228,106,701,355 19,457,256,341 8,713,096,893
1,424,641,288 143,884,128,888 109,883,186,224
3,689,097,096,165 19,255,077,934
6,279,401,759
789,817,920,000
789,817,920,000520,473,024,984
282,134,159,940238,338,865,044
5,226,100,586,8475,219,821,185,088
6,279,401,759
1,310,290,944,984
1,310,290,944,984
6,536,391,531,831
27 March 2020
Pham Thi Ngoc AnhPreparer/Chief Accountant
Pham Duy Hoang NamChief Financial Officer
Hoang Trung KienChief Executive Officer
27 March 2020
Pham Thi Ngoc AnhPreparer/Chief Accountant
Pham Duy Hoang NamChief Financial Officer
Hoang Trung KienChief Executive Officer
Gross revenue from goods sold and services rendered Deductions Net revenue from goods sold and services rendered (10=01-02) Cost of sales Gross profit from goods sold and services rendered (20=10-11) Financial income Financial expenses - In which: Interest expenseSelling expenses General and administration expensesOperating profit(30=20+(21-22)-(25+26)) Other income Other expensesProfit from other activities (40=31-32) Accounting profit before tax(50=30+40) Current corporate income tax expense
Net profit after corporate incometax (60=50-51-52)
1.
2.3.
4.5.
6.7.
8.9.
10.
11.12.13.14.
15.
Deferred corporate taxexpense
16.
17.
Unit: VND
ITEMS CODES CURRENTYEAR
PRIORYEAR
79
Cash Flow Statement FORM B 02-DN
Issued under Circular No.200/2014/TT-BTCdated 22 December 2014 of the Ministry of Finance
For the year ended31 December 2019
1214151720
21
23
27
30
050608
091011
04
01
0203
(14,324,516,597) (90,618,315,335) (92,733,427,092) (8,345,581,050)(1,379,892,254,555)
(74,372,727)
(124,499,109,164)
19,961,655,437
(179,611,826,454)
(20,280,589,720) 95,670,507,863
523,107,745,568
(57,949,775,114) (784,164,279,688) (854,864,105,247)
(2,380,950,000)
434,840,145,684
781,002,276 14,477,629,465
24 -
(22,400,526,250)(133,785,181,790)(82,148,822,013)
(512,175,011)
(3,772,776,185)
(1,520,000,000,000)
49,985,991,288
(62,468,948,098)135,091,090,719
235,777,992,645(745,037,702,475)
480,176,090,861
142,678,606,125
(825,139,918,592)
410,608,930,158
319,865,337,642
835,441,50818,859,508,387(1,573,500,000)
648,646,866,305
25 (75,000,000,000)-
Unit: VND
ITEMS CODES CURRENTYEAR
PRIORYEAR
80
Cash Flow StatementFor the year ended31 December 2019
CASH FLOWS FROM FINANCINGACTIVITIESProceeds from share issue and owners’ contributed capital
31 -
6,800,000,000
III.
1.
Proceeds from borrowingsRepayment of borrowings
3334
8,665,290,182,642 (6,888,639,840,795)
11,726,895,528,826(10,983,496,917,268)
2.3.
Dividends and profits paid 36 -(68,680,000,000)4.
Net cash generated by financing activities
Net increase/(decrease) in cash (50=20+30+40)
Cash and cash equivalents at thebeginning of the year Cash and cash equivalents at the end of the year (70=50+60)
40
50
60
70
1,776,650,341,847
217,146,260,838
638,076,095,694
855,222,356,532
681,518,611,558
(942,700,909)
855,222,356,532
854,279,655,623
27 March 2020
Pham Thi Ngoc AnhPreparer/Chief Accountant
Pham Duy Hoang NamChief Financial Officer
Hoang Trung KienChief Executive Officer
payable)Changes in prepaid expensesInterest paidCorporate income tax paidOther cash outflowsNet cash (used in) operating activities
CASH FLOWS FROM INVESTINGACTIVITIESAcquisition and construction of fixed assets and other long-term assetsCash outflow for lending, buying debt instruments of other entities
Equity investments in other entitiesInterest earned, dividends and profits received
Net cash (used in) investing activities
currency itemsGain from investing activitiesInterest expenseOperating profit before movements in working capitalChanges in receivablesChanges in inventoriesChanges in payables (excluding accrued loan interest and corporate income tax
Foreign exchange gain arising from translating foreign
CASH FLOWS FROM OPERATINGACTIVITIESProfit before taxAdjustments for:Depreciation and amortisation of fixed assetsProvisions
I.
1.2.
3.
II.
1.
2.
Cash recovered from lending, selling debt instruments of other entities
3.
4. 5.
FORM B 02-DNIssued under Circular No.200/2014/TT-BTC
dated 22 December 2014 of the Ministry of Finance
81
Notes To The Separate Financial StatementsThese notes are an integral part of and should be read in con-junction with the accompanying separate financial statements
Structure of ownershipFPT Digital Retail Joint Stock Company (the “Company”) was incorporated under the first Enterprise Registration Certificate No. 0311609355 dated 08 March 2012 issued by Ho Chi Minh City Department of Planning and Investment and as amended.
The number of employees as at 31 December 2019 was 6,126(31 December 2018: 5,656).
Normal production and business cycle The Company’s normal production and business cycle is carried out for a time period of 12 months or less.
The Company’s structure The Company’s head office is located at No. 261 - 263 Khanh Hoi, Ward 5, District 4, Ho Chi Minh City. As at 31 December 2019, the Company had branches in 63 provinces and cities throughout the country and 01 subsidiary as below:
Disclosure of information comparability in the separate financial statements Comparative figures are the figures of the audited financial statements for the year ended 31 December 2018.
Operating industry and principal activities- Retail of computers, peripherals, software and telecommunications equipment in specialized stores, via mailorder or via internet;- Repair of machinery and equipment (except for mechanical processing, recycling, electroplating at head office);- Agents, brokers, auction;- Advertising;- Sales of spare parts and accessories of automobiles and other motor vehicles;- Wholesale of materials, other installation equipment used in construction;- Wholesale of other household appliances (except for pharmaceutical business);- Wholesale of electronic and telecommunication equipment and components;- Wholesale of computers, peripherals and software;- Other information services: value added services on the Internet, data access services, online data and information processing services, electronic data interchange services;- Activities of insurance agents and insurance brokers;- Supply and management of labor resources; and - Postal and delivery.
GENERAL INFORMATION
82
Notes To The Separate Financial Statements FORM B 09-DN
These notes are an integral part of and should be read in conjunction with the accompanying separate financial statements
Accounting conventionThe accompanying separate financial statements, expressed in Vietnam Dong (VND), are prepared under the historical cost convention and in accordance with Vietnamese Accounting Standards, accounting regime for enterprises and legal regulations relating to financial reporting.
The accompanying separate financial statements are not intended to present the financial position, results of operations and cash flows in accordance with accounting principles and practices generally accepted in countries and jurisdictions other than Vietnam.
The significant accounting policies, which have been adopted by the Company in the prepara-tion of these separate financial statements, are as follows:
EstimatesThe preparation of separate financial statements in conformity with Vietnamese Accounting Standards, accounting regime for enterprises and legal regulations relating to financial reporting requires manage-ment to make estimates and assumptions that affect the reported amounts of assets, liabilities and disclosures of contingent assets and liabilities at the date of the separate financial statements and the reported amounts of revenues and expenses during the financial year. Although these accounting esti-mates are based on the management’s best knowledge, actual results may differ from those estimates.
Investments in subsidiaries A subsidiary is an entity over which the Company has control. Control is achieved where the Company has the power to govern the financial and operating policies of an investee enterprise so as to obtain benefits from its activities.
Interests in subsidiaries are initially recognised at cost. The Company’s share of the net profit of the investee after acquisition is recognised in the income statement. Other distributions received other than such profit share are deducted from the cost of the investments as recoverable amounts.
Investments in subsidiaries are carried in the balance sheet at cost less provision for impairment of such investments (if any). Provisions for impairment of investments in subsidiaries are made when there is reliable evidence for declining in value of these invest-ments as at the balance sheet date.
Financial yearThe Company’s financial year begins on 01 January and ends on 31 December.
ACCOUNTING CONVENTION AND FINANCIAL YEAR
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
FORM B 09-DNIssued under Circular No.200/2014/TT-BTC
dated 22 December 2014 of the Ministry of Finance
Incorporationand operationplace
Proportion ofownershipinterest (%)
Proportion ofvoting powerheld (%)
Principal acitivity
FPT Long ChauPharma Joint StockCompany
Ho Chi MinhCity 87.21% 75% Pharmaceutical
business
Cash and cash equivalentsCash and cash equivalents comprise cash on hand, demand deposits and short-term, highly liquid investments that are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in value.
Financial investmentsHeld-to-maturity investments
Held-to-maturity investments comprise invest-ments that the Company has the positive intent or ability to hold to maturity, including term deposits held to maturity to earn periodic inter-est and other held-to-maturity investments.
Held-to-maturity investments are recognised on a trade date basis and are initially measured at acquisition price plus directly attributable transaction costs. Post-acquisition interest income from held-to-maturity investments is recognised in the income statement on accrual basis. Pre-acquisition interest is deducted from the cost of such investments at the acquisition date.Held-to-maturity investments are measured at cost less provision for doubtful debts.
Provision for doubtful debts relating to held-to-maturity investments is made in accordance with prevailing accounting regula-tions.
Interest income is accrued on a time basis, by reference to the principal outstanding and at the applicable interest rate.
Loan receivablesLoan receivables are measured at cost less pro-vision for doubtful debts. Provision for doubtful debts relating to loan receivables is made in accordance with prevailing accounting regula-tions.
Receivables
Receivables represent the amounts recoverable from customers or other debtors and are stated at book value less provision for doubtful debts.
Provision for doubtful debts is made for receiva-bles that are overdue for six months or more, or when the debtor is in dissolution, in bankruptcy, or is experiencing similar difficulties and so may be unable to repay the debt.
InventoriesInventories are stated at the lower of cost and net realisable value. Cost comprises purchasing costs and other directlyattributable expenses that have been incurred in bringing the invento-ries to their present location and condition. The Company uses perpetual method to record inventories. Cost is calculated using first in-first out method. Net realisable value represents the estimated selling price less all estimated costs to completion and costs to be incurred in mar-keting, selling and distribution.
The evaluation of necessary provision for inven-tory obsolescence follows current prevailing accounting regulations which allow provisions to be made for obsolete, damaged, or sub-standard inventories and for those which have costs higher than net realisable values as at the balance sheet date.
83
Tangible fixed assets and depreciationTangible fixed assets are stated at cost less accu-mulated depreciation.
The costs of purchased tangible fixed assets comprise their purchase prices and any directly attributable costs of bringing the assets to their working condition and location for their intended use.
Tangible fixed assets are depreciated using the straight-line method over their estimated useful lives as follows:
PrepaymentsPrepayments are expenses which have already been paid but relate to results of operations of multiple accounting periods, including house rent-als and other types of prepayments.
House rentals represent rentals that have been paid in advance. Prepaid house rentals are charged to the income statement using the straight-line method over the lease term.
Long-term prepayments comprise costs of small tools and supplies issued for consumption, shop set-up costs which are expected to provide future economic benefits to the Company for one year or more. These expenditures have been capitalised as long-term prepayments, and are allocated to the income statement using the straight-line method in accordance with the current prevailing accounting regulations.
Revenue recognitionRevenue from the sale of goods is recognised when all five (5) following conditions are satisfied:
Intangible assets and amortisationLand use rightsIntangible assets representing the indefinite land use rights are not amortized.
Computer softwareIntangible assets representing computer software are stated at cost less accumulated amortisation. Computer software is amortised using the straight-line method over the duration from 3 - 5 years.
(a) the Company has transferred to the buyer the significant risks and rewards of ownership of the goods;(b) the Company retains neither continuing mana-gerial involvement to the degree usually associat-ed with; ownership nor effective control over the goods sold;(c) the amount of revenue can be measured relia-bly;(d) it is probable that the economic benefits asso-ciated with the transaction will flow to the Compa-ny; and(e) the costs incurred or to be incurred in respect of the transaction can be measured reliably.Revenue of a transaction involving the rendering of services is recognised when the outcome of such transactions can be measured reliably. Where a transaction involving the rendering of services is attributable to several years, revenue is recog-nised in each year by reference to the percentage of completion of the transaction at the balance sheet date of that year. The outcome of a transac-tion can be measured reliably when all four (4) following conditions are satisfied:(a) the amount of revenue can be measured relia-bly;(b) it is probable that the economic benefits asso-ciated with the transaction will flow to the Compa-ny;(c) the percentage of completion of the transac-tion at the balance sheet date can be measured reliably; and(d) the costs incurred for the transaction and the costs to complete the transaction can be meas-ured reliably.
84
Buildingsand structures
Years
Machineryand equipment
Motorvehicles
25 - 50
3 - 5
6
Officeequipment
3
Notes To The Separate Financial Statements FORM B 09-DN
These notes are an integral part of and should be read in conjunction with the accompanying separate financial statements
Notes To The Separate Financial Statements FORM B 09-DN
These notes are an integral part of and should be read in conjunction with the accompanying separate financial statements
Foreign currencies Transactions arising in foreign currencies are translated at exchange rates ruling at the transac-tion date. The balances of monetary items denom-inated in foreign currencies as at the balance sheet date are retranslated at the exchange rates on the same date. Exchange differences arising from the translation of these accounts are recognised in the income statement.
Borrowing costsBorrowing costs are recognised in the income statement in the year when incurred unless they are capitalised in accordance with Vietnamese Accounting Standard No. 16 “Borrowing costs”. Accordingly, borrowing costs directly attributable to the acquisition, construction or production of qualifying assets, which are assets that necessari-ly take a substantial period of time to get ready for their intended use or sale, are added to the cost of those assets, until such time as the assets are substantially ready for their intended use or sale. Investment income earned on the temporary investment of specific borrowings pending their expenditure on qualifying assets is deducted from the cost of those assets. For specific borrowings for the purpose of construction of fixed assets and investment properties, borrowing costs are capi-talised even when the construction period is under 12 months.
TaxationIncome tax expense represents the sum of the tax currently payable and deferred tax.
The tax currently payable is based on taxable profit for the year. Taxable profit differs from profit before tax as reported in the income state-ment because it excludes items of income or expense that are taxable or deductible in other years (including loss carried forward, if any) and it further excludes items that are never taxable or deductible.
Deferred tax is recognised on significant differ-ences between carrying amounts of assets and liabilities in the separate financial statements and the corresponding tax bases used in the compu-tation of taxable profit and is accounted for using balance sheet liability method. Deferred tax liabil-ities are generally recognised for all temporary differences and deferred tax assets are recog-nised to the extent that it is probable that taxable profit will be available against which deductible temporary differences can be utilised.
Related party Parties are considered to be related if one party has the ability to control the other party or exer-cise significant influence over the other party in making financial and operating decisions. Related parties of the Company are:Enterprises that directly, or indirectly through one or more intermediaries, control, or are controlled by, or are under common control with the Compa-ny;Individuals holding, directly or indirectly, an inter-est in the voting power of the Company that gives them significant influence over the Company, key management personel of the Company and close members of any such individual’s family;Enterprises in which a substantial interest in the voting power is held, directly or indirectly, by any above individuals or over which such individual-sare able to exercise significant influence. In considering each possible related party rela-tionship for purpose of preparation and presenta-tion of consolidated financial statements, atten-tion is directed to the substance of the relation-ship rather than the legal form.
85
Deferred tax is calculated at the tax rates that are expected to apply in the year when the liabil-ity is settled or the asset realised. Deferred tax is charged or credited to profit or loss, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity.
Deferred tax assets and liabilities are offset when there is a legally enforceable right to set off current tax assets against current tax liabili-ties and when they relate to income taxes levied
by the same tax authority and the Company intends to settle its current tax assets and liabili-ties on a net basis.The determination of the tax currently payable is based on the current interpretation of tax regu-lations. However, these regulations are subject to periodic variation and their ultimate determi-nation depends on the results of the tax authori-ties’ examinations.
Other taxes are paid in accordance with the pre-vailing tax laws in Vietnam.
86
CASH AND CASH EQUIVALENTS
HELD-TO-MATURITY INVESTMENTS
VND 177,384,373,290669,533,397,589
8,304,585,653 -
855,222,356,532
VND99,838,883,300286,986,188,125
17,454,584,198450,000,000,000
Opening balance Closing balance
Opening balance Closing balanceVND
--
854,279,655,623
(i) Cash equivalents represent deposits at Tien Phong Commercial Joint Stock Bankwith the term from 01 to 03 months and interest rate from 5.0% to 5.5% p.a.
Held-to-maturity investments represent deposits at commercial joint stock banks with the original term of over 3 months and remaining term of less than 12 months and interest rate from 6.5% to 9.0% p.a.
SHORT-TERM TRADE RECEIVABLES
7,573,781,8044,191,029,258
VND11,313,632,000
10,790,000,0005,565,585,8624,191,029,258
226,213,281,580166,184,394,421237,978,092,642198,044,641,541
1,894,130,600 4,474,222,131
Notes To The Separate Financial Statements FORM B 09-DN
These notes are an integral part of and should be read in conjunction with the accompanying separate financial statements
Notes To The Separate Financial Statements FORM B 09-DN
These notes are an integral part of and should be read in conjunction with the accompanying separate financial statements
Cash on handBank demand depositsCash in transitCash equivalents (i)
Apple Vietnam Company LimitedAdvanced International Joint Stock CompanyHome Credit Vietnam Finance Company Limited Digital Town City Center Co., Ltd.Others
Receivables from related parties (See Note 33)
(i) Represent loans to FPT Long Chau Pharma Joint Stock Company – Subsidiary of the Company with the term from 3 months to 6 months and interest rate of 6.0% p.a.(ii) Represent loans to FPT Corporation with the term from 3 months to 6 months and interest rate from5.5% to 9.0% p.a.(ii) Represent loans to the Company’s employees with the term of 01 month and interest rate of 5.3% p.a.
(i) Represent receivables from suppliers as committed support to conduct marketing, advertising programs for agents.(ii) Represent receivables under the mobile subsidy program in respect of data pack applicable to opera-tors namely Vietnamobile Telecommunications Joint Stock Company and Mobifone Telecommunication yyyyyJoint Stock Company.
Opening balance Closing balance
Opening balance Closing balance
Opening balance Closing balance
SHORT-TERM ADVANCES TO SUPPLIERS
VND VND76,563,327,778
-15,906,268,479
92,469,596,257
-122,983,365,255
19,218,499,466142,201,864,721
SHORT-TERM LOAN RECEIVABLES
FPT Long Chau Pharma Joint Stock (i)VND VND
220,000,000,000102,359,066,193
542,359,066,193 440,000,000,000
-220,000,000,000 -
120,359,066,193120,359,066,193
-
OTHER RECEIVABLES
VND VND
87
437,714,515,252 374,777,968,319 32,030,767,955 76,931,858,070
8,307,162,809 20,790,119,619 14,223,642,330
-
19,926,080,686 -
97,128,328,921 84,022,534,483 97,128,328,921 84,022,534,483
Notes To The Separate Financial Statements FORM B 09-DN
These notes are an integral part of and should be read in conjunction with the accompanying separate financial statements
(*) Recoverable amount is stated at cost less corresponding provision for short-term doubtful debts.
88
Cost
4,191,029,259 (4,191,029,259)
4,874,957,781 (3,412,470,447)
46,586,691,676 (22,821,539,695)
13,446,917,506 (4,034,075,251)
69,099,596,222 (34,459,114,652)
-
1,462,487,334
23,765,151,981
9,412,842,255
34,640,481,570
Closing balanceVND
4,191,029,259 (4,191,029,259)
33,031,263 (23,121,884)
13,797,689,776 (6,898,844,888)
22,239,881,604 (6,671,964,481)
40,261,631,902 (17,784,960,512)
-
9,909,379
6,898,844,888
15,567,917,123
22,476,671,390
Opening balanceVND
BAD DEBTS
Notes To The Separate Financial Statements FORM B 09-DN
These notes are an integral part of and should be read in conjunction with the accompanying separate financial statements
Electronic Value Trading Company LimitedTan MTV One Member Limited CompanyOthers
FPT Corporation (ii)Others (iii)
Loan receivables from related parties (See Note 33)
a. Other short-term receivables
b. Other long-term receivables
Receivables from suppliers (i)Receivables under sales program (ii)Accrued interest income
1,801,285,494 2,618,141,784 1,050,500,000 257,744,072,917
3,710,747,479 1,590,022,035511,321,578,129 721,969,225,934
Receivables from employeesDeposits and mortgagesOther receivables
Other receivables from related parties
Deposits and mortgages
Receivables from FPT Long Chau Pharma Joint Stockcompany for expenses paid on behalf
ProvisionRecoverable
amount (*) Payees
Over 3 years
Over 2 yearsto 3 years
Over 1 year to 2 years
Over 6 months
Over 3 years
Over 2 yearsto 3 years
Over 1 year to 2 years
Over 6 months
Digital Town City Center Co., Ltd.Other clients
Other clients
Other clients
Digital Town City Center Co., Ltd.Other clients
Other clients
Other clients
Cost ProvisionRecoverable
amount (*) Payees
(*) Provision for devaluation of inventories is stated at cost less corresponding net realisable value.
Closing balanceVND VND
97,639,710,054 90,090,907,031 16,611,600,635 4,229,227,559
114,251,310,689 94,320,134,590
208,377,413,444 216,222,745,252 13,914,038,041 3,659,356,559
222,351,451,485 219,882,101,334
Closing balanceVND
11,162,601,645 -4,432,034,881 -
3,242,956,718,863 (15,550,241,137)3,258,551,355,389 (15,550,241,137)
Opening balanceVND
4,536,530,042 -7,729,813,288 -
2,501,247,309,584 (13,364,886,890)2,513,513,652,914 (13,364,886,890)
89
PREPAYMENTS
INCREASES, DECREASES IN TANGIBLE FIXED ASSETS
a. CurrentHouse rentalsOther short-term prepayments
b. Non-CurrentShop set-up costsOther long-term prepayments
Goods in transitTools and suppliesMerchandise
Goods in transitTools and suppliesMerchandise
Cost Provision (*)
Cost Provision (*)
Opening balance
Notes To The Separate Financial Statements FORM B 09-DN
These notes are an integral part of and should be read in conjunction with the accompanying separate financial statements
As at 31 December 2019, the cost of the Company’s tangible fixed assets includes VND 3,599,446,317 (31 December 2018: VND 2,426,923,376) of fixed assets which have been fully depreciated but are still in use.
INCREASES, DECREASES IN TANGIBLE FIXED ASSETS
90
4,619,723,333 4,361,562,607 - 363,173,201 9,344,459,141 - 281,371,892 1,455,363,637 145,010,656 1,881,746,185 - (74,372,727) - 74,372,727 - - (35,428,182) - - (35,428,182)
4,619,723,333 4,533,133,590 1,455,363,637 582,556,584 11,190,777,144
90,097,603 3,766,154,500 - 334,130,520 4,190,382,623 46,657,092 193,312,269 112,061,875 69,223,164 421,254,400
- (35,428,182) - - (35,428,182) 136,754,695 3,924,038,587 112,061,875 403.353.684 4,576,208,841
4,529,625,730 595,408,107 - 29,042,681 5,154,076,518 4,482,968,638 609,095,003 1,343,301,762 179,202,900 6,614,568,303
Notes To The Separate Financial StatementsThese notes are an integral part of and should be read in conjunction with the accompanying separate financial statements
FORM B 09-DN
TotalVND
Office equipment VND
Motor vehiclesVND
Machineryand equipment
VND Buildings, structures
VND
COSTOpening balanceAdditionsReclassificationDisposalsClosing balance
ACCUMULATED DEPRECIATIONOpening balanceCharge for the yearDisposalsClosing balance
NET BOOK VALUEOpening balanceClosing balance
As at 31 December 2019, the cost of the Company’s intangible assets includes VND 3,764,206,626 (31 December 2018: VND 2,053,467,999) of assets which have been fully amortised but are still in use.
FPT Long Chau Pharma Joint Stock Company
The performance of the subsidiary during the year: Loss
INCREASES, DECREASES IN INTANGIBLE ASSETS
INVESTMENTS IN SUBSIDIARIES
91
VND
44,481,737,9901,891,030,000
46,372,767,990
4,043,996,161 414,187,108
4,458,183,269
40,437,741,82941,914,584,721
4,187,737,9901,891,030,0006,078,767,990
4,043,996,161414,187,108
4,458,183,269
143,741,8291,620,584,721
40,294,000,000
-40,294,000,000
---
40,294,000,000 40,294,000,000
VND VND
Closing balance Opening balanceProvisionCost ProvisionCost
VND VND75,000,000,000 - 75,000,000,000 -
As at 31 December 2019, the Company's Board of Chief Excecutive Officers assessed that there is no indicator of impairment in the investment in FPT Long Chau Pharma Joint Stock Company, therefore no provision was made.The significant balances and transactions between the Company and its subsidiary are presented in Note 33.
Notes To The Separate Financial StatementsThese notes are an integral part of and should be read in conjunction with the accompanying separate financial statements
FORM B 09-DN
COSTOpening balanceAdditionsClosing balance
ACCUMULATED DEPRECIATIONOpening balanceCharge for the yearClosing balance
NET BOOK VALUEOpening balanceClosing balance
Land use rights Computer softwware Total
SHORT-TERM TRADE PAYABLES
92
638,644,751,009192,542,745,976
47,698,207,600
33.525.374.150
27,756,561,200
26,672,549,46725,433,260,342
235,833,251,6111,228,106,701,355
3,075,050,631
638,644,751,009 192,542,745,976
47,698,207,600
33.525.374.150
27,756,561,200
26,672,549,46725,433,260,342
235,833,251,6111,228,106,701,355
264,273,844,32034,958,462,014
37,178,177,546
-
27,186,109,900
30,392,885,55326,458,779,041
280,741,470,594701,189,728,968
4,639,029,453
264,273,844,32034,958,462,014
37,178,177,546
-
27,186,109,900
30,392,885,55326,458,779,041
280,741,470,594701,189,728,968
Closing balance
Amount Amount able tobe paid off
Amount Amount able tobe paid off
VND
Opening balanceVND
Notes To The Separate Financial StatementsThese notes are an integral part of and should be read in conjunction with the accompanying separate financial statements
FORM B 09-DN
Apple Vietnam Company LimitedSamsung ElectronicsVietnam Company LimitedSmart Phone Joint StockCompanyR&M Electronic Trading CompanyLimitedVinh Khang Technology & ScienceJoint Stock CompanyMasscom Vietnam Joint Stock Company Synnex FPTDistribution Company LimitedOthers
Trade payables to related parties (Details stated in Note 33)
93
Opening balanceClosing balanceVND VND
TAXES AND OTHER RECEIVABLES FROM/PAYABLES TO THE STATE BUDGET
SHORT-TERM ACCRUED EXPENSES
27,50027,500
3,677,267,00120,174,777,79020,174,777,790
--
24,449,995,872
121,713,174121,713,174
2,702,476,719,80567,875,765,73812,632,742,7892,057,094,083
470,800,000
2,785,513,122,415
123,544,493123,544,493
2,705,483,680,60282,148,822,01311,134,624,696 2,057,094,083
470,800,000
2,801,250,021,394
1,858,8191,858,819
715,306,2045,901,721,515
2,096,069,174--
8,713,096,893
101,693,969,8533,585,432,179
12,297,889,80910,252,543,33416,054,293,713
143,884,128,888
106,200,876,927 10,927,076,223 12,006,023,568 8,946,634,405
18,735,624,042
156,816,235,165
Notes To The Separate Financial StatementsThese notes are an integral part of and should be read in conjunction with the accompanying separate financial statements
FORM B 09-DN
Accrued salaryAccruals for cost of salesAccruals for installment support costs Accrued interest expenseOther accruals
a. ReceivablesPersonal income tax
b. PayablesValue added taxCorporate income taxPersonal income tax Contractor withholding taxOther taxes
VND
Openingbalance
Closingbalance
VND
Paid/Deductedduring the year
VND
Payableduring the year
VND
OTHER CURRENT PAYABLES
7,149,524,826101,907,555,715
826,105,683
109,883,186,224
769,228,975
4,052,013,031142,114,384,017
604,087,568
146,770,484,616
597,189,068
Opening balanceClosing balance
Opening balanceClosing balance
VND VND
DEFERRED TAX LIABILITIES
20%
6,279,401,759
6,279,401,759
20%
-
-
VND VND
Notes To The Separate Financial Statements FORM B 09-DN
These notes are an integral part of and should be read in conjunction with the accompanying separate financial statements
94
Trade union feeCollection on behalf of partnersOther payables
Other payables to related parties (Details in Note 33)
Corporate income tax rates used for determination of value of deferred tax liabilitiesDeferred tax liabilities arising from taxable temporary differences
Deferred tax liabilities
Short-term borrowings from banks are unsecured with terms of less than 01 year and interest ratesas per each indebtedness certificate for the purpose of financing business operations. Loans in USD are subject to interest rates from 3.04% p.a to 3.25% p.a, loans in VND are subject to interest ratesfrom 5.0% nnnnnp.a to 5.2% p.a.
Amount ableto be paid off
Amount
SHORT-TERM LOANS AND OBLIGATIONS UNDER FINANCE LEASES
95
Opening balanceVND
In the yearVND
Closing balanceVND
907,717,250,000
532,004,140,607
496,000,000,000414,000,000,000
-
285,900,000,000235,862,594,000
55,788,000,000
20,000,000,000-
-
-
-
2,947,271,984,607
907,717,250,000
532,004,140,607
496,000,000,000414,000,000,000
-
285,900,000,000235,862,594,000
55,788,000,000
20,000,000,000-
-
-
-
2,947,271,984,607
2,886,627,950,000
1,718,648,849,469
1,523,500,000,0001,376,888,117,262
171,016,700,000
936,461,247,000537,596,335,525
868,165,500,000
20,000,000,000501,093,392,832
291,015,822,450
127,475,822,450
26,580,680,280
10,985,070,417,268
587,480,000,000
870,984,715,959
679,300,000,000716,823,000,000
-
416,000,000,000-
171,902,000,000
-246,607,380,206
-
-
-
3,689,097,096,165
587,480,000,000
870,984,715,959
679,300,000,000716,823,000,000
-
416,000,000,000-
171,902,000,000
-246,607,380,206
-
-
-
3,689,097,096,165
2,566,390,700,000
2,057,629,424,821
1,706,800,000,0001,679,711,117,262
171,016,700,000
1,066,561,247,000301,733,741,525
984,279,500,000
-747,700,773,038
291,015,822,450
127,475,822,450
26,580,680,280
11,726,895,528,826
Notes To The Separate Financial StatementsThese notes are an integral part of and should be read in conjunction with the accompanying separate financial statements
FORM B 09-DN
DecreasesIncreasesAmount ableto be paid off
Amount
HSBCHongKongJoint Stock Commercial Bank for Investment and Development of VietnamHSBC VietnamANZ Bank VietnamANZ BankSingaporeCitibank VietnamJoint Stock Commercial Bank for Foreign Trade of VietnamStandard Chartered Bank SingaporeFPT CorporationStandard Chartered Bank VietnamStandard Chartered Bank MUMUFG Bank, LtdVietnam Joint Stock Commercial Bank for Industry and Trade
(i) Resolution No. 01.2019/NQ-DHCDTN/FRT dated 27 March 2019 of the Annual General Meeting of Shareholders approved the plan to issue shares under the Employee share Optionscheme in the Company based on the business results of 2018. Accordingly, the number of additionally issued shares is 680,000 shares equivalent to VND 6,800,000,000.
(ii) Resolution No. 01.2019/NQ-DHCDTN/FRT dated 27 March 2019 of the Annual General Meeting of Shareholders approved the plan to distribute profits of 2018 in the form of cash dividendat the rate of 10% of par value/stock.At the same time, the Resolution also approved the plan to issue shares to existing shareholders with the rate of 15% to increase share capital from retained earnings. Accordingly, the number of additionally issued shares is 10,301,792 shares equivalent to VND 103,017,920,000.
(iii) According to Decision No. 885/FRT/QD-HDTVof the Company’s Chairwoman dated 31 December 2019, the Company temporarily appropriated bonus and welfare funds from 2018 profit after tax at the rate of 3%. The final appropriation rate for bonus and welfare funds will be approved at the Annual General Meeting of shareholders in 2020.
OWNERS’ EQUITY
400,000,000,000-
280,000,000,000-
680,000,000,0006,800,000,000
-103,017,920,000
--
789,817,920,000
396,454,372,696347,812,069,326
280,000,000,000(10,434,362,082)
453,832,079,940-
245,710,170,145103,017,920,000
(68,680,000,000)(7,371,305,101)
520,473,024,984
796,454,372,696347,812,069,326
-(10,434,362,082)
1,133,832,079,9406,800,000,000
245,710,170,145-
(68,680,000,000)(7,371,305,101)
1,310,290,944,984
VNDVND VND
96
Notes To The Separate Financial StatementsThese notes are an integral part of and should be read in conjunction with the accompanying separate financial statements
FORM B 09-DN
Prior year’s opening balanceProfit for the yearProfit distributedto capitalProfit distributed to funds
Current year’s opening balanceCapital contributed (i)Profit for the yearProfit distributed to capital (ii)Dividends declared (ii)Profit distributed to funds (iii)
Current year’s closing balance
Owners’contributed capital TotalRetained earnings
Charter capital and investment capitalAccording to the Company’s first Enterprise Registration Certificate No. 0311609355 dated 08 March 2012 and the 49th amended Certificate dated 01November 2019, the Company’s charter capital is VND 789,817,920,000. The charter capital contribution by the owners as at 31 December 2019 had been fully made as follows:
OFF BALANCE SHEET ITEMS
Opening balanceClosing balanceVND VND
VND
97
VOF Investment Limited 319,600,000,000
5,012,196,000 355,387,804,000
680,000,000,000
Closing balanceVND %
Opening balanceVND %
Closing balanceShares
Opening balanceShares
367,540,000,000 60,281,340,000361,996,580,000
789,817,920,000
46.537.63
45.84
100.00
47.000.74
52.26
100.00
Shares
68,000,000-
68,000,000 -
--
78,981,792-
78,981,792 -
--
Foreign currencyUnited States Dollar (USD) 701,839 500,901
Banks
Guarantee lettersAs at 31 December 2019, Standard Chartered Bank Vietnam, HSBC Vietnam, MUFG Bank, Ltd., Viet-nam International Commercial Joint Stock Bank, Vietnam Prosperity Joint Stock Commercial Bank and Joint Stock Commercial Bank for Investment and Development of Vietnam issued payment guarantee letters to the Company’s partners. The outstanding guarantee balances of these letters as at 31 December 2019 were as follows:
300,000,000,000190,000,000,000100,000,000,000
22,743,047,2005,500,000,0002,456,592,500
620,699,639,700
Notes To The Separate Financial Statements FORM B 09-DN
These notes are an integral part of and should be read in conjunction with the accompanying separate financial statements
A segment is a distinguishable component of the Company involved in the provision of related prod-ucts or services (business segment), or the supply of products or services in a particular economic environment (geographical segment), each of which has risks and benefits differrent from those of other segments.
In terms of risk and economic benefits, the Board of Executive Officers has assessed that the Compa-ny operates in a single business segment: informatics equipment, mobile phones, components and related accessories and a single geographic area of Vietnam.
BUSINESS AND GEOGRAPHICAL SEGMENTS
97
Notes To The Separate Financial Statements FORM B 09-DN
These notes are an integral part of and should be read in conjunction with the accompanying separate financial statements
FPT Corporation
Others
- Number of shares issued to the public + Ordinary shares + Preference shares- Number of outstanding shares in circulation + Ordinary shares + Preference shares- Number of treasury shares + Ordinary shares + Preference shares
An ordinary share has par value of VND 10,000.
Standard Chartered Bank VietnamHSBC VietnamMUFG Bank, Ltd.Vietnam International Commercial Joint Stock BankVietnam Prosperity Joint Stock Commercial BankJoint Stock Commercial Bank for Investment and Development of Vietnam
REVENUE
COST OF SALES
PRODUCTION COST BY NATURE
FINANCIAL INCOME
98
15,747,503,070,212142,165,867,131
15,889,668,937,34319,671,168,590
591,311,306,900591,311,306,900
15,298,357,630,443
16,333,329,024,485144,844,204,605
16,478,173,229,09026,699,669,409
354,996,798,915354,996,798,915
16,123,176,430,175
13,131,915,959,652115,339,160,173
7,493,087,267
13,998,030,315,505 101,096,422,747
2,185,354,24714,101,312,092,499 13,254,748,207,092
647,433,247,686 781,002,276
934,136,872,980 14,477,629,465
702,469,278,310 835,441,508
894,581,365,418 18,859,508,387
1.616.745.593.623 1,596,828,752,407
62,468,948,098 3,069,391,901
13,787,447,275 79,325,787,274
20,280,589,720 2,808,570,000 19,111,159,651
42,200,319,371
99
FINANCIAL EXPENSES
95,670,507,863 4,902,310,089
100,572,817,952
135,091,090,719 12,781,527,842
147,872,618,561
SELLING EXPENSES AND GENERAL AND ADMINISTRATION EXPENSES
CORPORATE INCOME TAX EXPENSE
540,868,176,426 481,060,559,994 376,510,695,529 324,064,823,624 417,185,406,610 490,488,856,451
1,334,564,278,565 1,295,614,240,069
161,601,101,884 166,372,687,692 140,403,149,459 120,396,590,560
302,004,251,343 286,769,278,252
87,028,076,358
87,028,076,358
67,875,765,738
67,875,765,738
Profit before taxAdjustments for taxable profitLess: deductible expensesAdd: non-deductible expensesTaxable profitTaxable profit at normal tax rateNormal tax rateCorporate income tax expense based on taxable profit in the current period
319,865,337,642 434,840,145,684 19,513,491,049 300,236,108
(31,397,008,793) - 50,910,499,842 300,236,108
339,378,828,691 435,140,381,792 339,378,828,691 435,140,381,792
20% 20%
67,875,765,738 87,028,076,358
The current corporate income tax expense for the year was computed as follows:
Notes To The Separate Financial Statements FORM B 09-DN
These notes are an integral part of and should be read in conjunction with the accompanying separate financial statements
Notes To The Separate Financial Statements FORM B 09-DN
These notes are an integral part of and should be read in conjunction with the accompanying separate financial statements
Prior yearVNĐ
Current yearVNĐ
Prior yearVNĐ
Current yearVNĐ
Prior yearVNĐ
Current yearVNĐ
Prior yearVNĐ
Current yearVNĐ
Prior yearVNĐ
Current yearVNĐ
Prior yearVNĐ
Current yearVNĐ
Prior yearVNĐ
Current yearVNĐ
Prior yearVNĐ
Current yearVNĐ
Gross revenue from goods sold and services rendered- Sales of goods sold- Sales of services rendered Revenue from related parties (Details in Note 33)Sales deductions- Sales returnNet revenue from goods sold and services rendered
LabourDepreciation and amortisationOut - sourced servicesProvision
Bank and loan interestForeign exchange gainOther financial income
Cost of goods soldCost of services renderedProvision for devaluation of inventories
Interest expenseForeign exchange loss
General and administrationexpensesLabour costOther adminstration expenses
Selling expensesLabour costShop premises rental feesOther selling expenses
Current corporate income tax expenseCorporate income tax expensebased on taxable profit in the current periodTotal Current corporate income tax expense
Opening balance VND
Closing balanceVND
SalesFPT Information System CorporationFPT Software Company LimitedFPT Telecom Joint Stock CompanyFPT CorporationFPT Long Chau Pharma Joint Stock Company
PurchasesFPT CorporationFPT Telecom Joint Stock CompanyFPT Information System CorporationFPT Software Company Limited
Dividend distributedFPT CorporationMs. Nguyen Bach Diep
Recovery from lendingMs. Nguyen Bach DiepFPT Long Chau Pharma Joint Stock CompanyFPT Corporation
LendingFPT Long Chau Pharma Joint Stock CompanyFPT Corporation
OPERATING LEASE COMMITMENTS
100
Minimum lease payments under operating leasesrecognised in the consolidated income statement for the year
341,267,137,030394,210,656,884
Operating lease payments represent total payables by the Company for office and shop rentals. Minimum lease payment in the future under non-cancellable operating lease is under the following terms:
Within one yearIn the second to fifth year inclusiveAfter five years
310,227,836,798 576,851,174,723
5,318,000,000 892,397,011,521
362,121,365,539695,288,657,234
16,392,930,0001,073,802,952,773
Prior yearVNĐ
Current yearVNĐ
-
-
6,279,401,759
6,279,401,759
RELATED PARTY TRANSACTIONS AND BALANCES
101
LIST OF RELATED PARTIES WITH SIGNIFICANT TRANSACTIONS AND BALANCES FOR THE YEAR:
DURING THE YEAR, THE COMPANY ENTERED INTO THE FOLLOWING SIGNIFICANT TRANSACTIONS WITH ITS RELATED PARTIES:
Bán hàng
8,972,035,754 3,572,255,137
5,794,803,872 1,309,009,282
19,671,168,590
8,514,342,286 4,020,069,565 7,166,281,3296,998,976,229
23,064,545-
26,699,669,409
6,625,519,356 -
25,555,420,433
240,625,00032,421,564,789
6,722,304,188 8,998,181
25,921,283,287155,030,746
32,807,616,402
- --
31,960,000,000 133,000,000
32,093,000,000
-
-
240,000,000,000- 830,000,000,000
1,070,000,000,000
70,859,066,193 -
70,859,066,193
-20,000,000,000
- 610,000,000,000630,000,000,000
Deferred corporate income tax expenseDeferred corporate income tax expensearising from taxable temporary differences Total Deferred corporate income tax expense
Notes To The Separate Financial Statements FORM B 09-DN
These notes are an integral part of and should be read in conjunction with the accompanying separate financial statements
Notes To The Separate Financial Statements FORM B 09-DN
These notes are an integral part of and should be read in conjunction with the accompanying separate financial statements
Prior yearVNĐ
Current yearVNĐ
Prior yearVNĐ
Current yearVNĐ
FPT Corporation
FPT Software Company Limited
FPT Telecom Joint Stock Company
FPT Information System Corporation
FPT Long Chau Pharma Joint StockCompany
Ms. Nguyen Bach Diep
Related parties Relationship
Major shareholder (the Company is an associate of FPT Corporation)Affiliate (Associate and subsidiary of FPT Corporation) Affiliate (Associate and subsidiary of FPT Corporation)
Affiliate (Associate and subsidiary of FPT Corporation)
Subsidiary
Chairwoman cum Chief Executive Officer
Prior yearVNĐ
Current yearVNĐ
102
SIGNIFICANT RELATED PARTY BALANCES AS AT THE BALANCE SHEET DATE WERE AS FOLLOWS:
REMUNERATION PAID TO THE COMPANY’S BOARDS OF DIRECTORS AND EXECUTIVE OFFICERS DURING THE YEAR WAS AS FOLLOWS:
2,486,650,9061,876,886,906
24,429,2003,180,000
83,075,1194,474,222,131
742,250,000150,254,00082,440,000
577,490,000 341,696,600
1,894,130,600
562,500,0001,359,385,5051,153,165,126
3,075,050,631
562,500,0001,377,538,817
2,698,990,6364,639,029,453
5,077,780,822 14,848,299,864
19,926,080,686
- --
220,000,000,000 220,000,000,000
440,000,000,000
---
769,228,975769,228,975
597,189,068597,189,068
Boards of Directors and ExecutiveOfficers’ remuneration
3,323.465,753 2,697,500,000
-
147,701,046
3,236,712,327 147,701,046
75,000,000,00075,000,000,000
10,663,160,71813,899,873,045
Expenses paid on behalf ofFPT Long Chau Pharma Joint Stock Company -
-14,223,642,330
14,223,642,330
Capital contributedFPT Long Chau Pharma Joint Stock Company -
-
27 March 2020
Pham Thi Ngoc AnhPreparer/ Chief Accountant
Pham Duy Hoang NamChief Financial Officer
Hoang Trung KienChief Executive Officer
Hoang Trung KienChief Executive Officer
103
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION
CONFIRMATION BY THE COMPANY’S LEGAL REPRESENTATIVE
Supplemental non-cash disclosures
Lãi tiền gửi, tiền cho vay chưa thu được tiềnlãi vay chưa thanh toán
20,790,119,61910,252,543,334
31,042,662,953
8,307,162,8098,946,634,405
17,253,797,214
Notes To The Separate Financial Statements FORM B 09-DN
These notes are an integral part of and should be read in conjunction with the accompanying separate financial statements
Notes To The Separate Financial Statements FORM B 09-DN
These notes are an integral part of and should be read in conjunction with the accompanying separate financial statements
Interest income from lendingFPT Long Chau Pharma Joint Stock CompanyFPT Corporation
Prior yearVNĐ
Current yearVNĐ
Prior yearVNĐ
Current yearVNĐ
Prior yearVNĐ
Current yearVNĐ
Short-term trade receivablesFPT Information System CorporationFPT Telecom Joint Stock CompanyFPT Software Company LimitedFPT CorporationFPT Long Chau Pharma Joint Stock Company
Short-term trade payablesFPT Software Company LimitedFPT Telecom Joint Stock CompanyFPT Corporation
Other short-term receivablesFPT CorporationFPT Long Chau Pharma Joint Stock Company
Short-term loan receivablesFPT Long Chau Pharma Joint Stock CompanyFPT Corporation
Other short-term payablesFPT Telecom Joint Stock Company
www.frt.vn
FPT DIGITAL RETAIL JOINT STOCK COMPANYAddress: 261 - 263 Khanh Hoi, Ward 05, District 4, Ho Chi Minh City - (+84-28) 7302 3456
https://fptshop.com.vn | https://fstudiobyfpt.com.vn | https://nhathuoclongchau.com