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NBB CORP 2011 1www.nbb.com.vn

PBAnnual Report

NBB CORP 2011

Annual

2011Report

NBB INVESTMENT CORPORATION





2Annual Report

NBB CORP 2011

Overview Message from the Chairman of the Board of Management

Establishment HistoryThe Milestone of NBB

The Scope of BusinessOrganisational Structure

Remarkable Events and Achievements in 2011

Corporate Governance Report Report of Board of Management

Report of Board of Control Report of Board of Directors

List of projectsInternal Control System2012 Growth Strategies

Investor RelationsInformation about Shareholders and Shares

Investor Relations Activities

2011 Consolidated Financial Statements

Operation Network

Organisation and Workforce

03040607070809

10101214181920

212122

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“PROSPERITY, SUCCESS”

ANNUAL REPORT2011

CONTENT





4Annual Report

NBB CORP 2011

Dear Shareholders,

2011 global economies have fluctuated wildly, that debt crisis in the euro area made world economic slowdown more seriously and affected negatively to markets with a significant aperture like Vietnam.

Domestic economy has faced a wide range of challenges and difficulties. Although there was a gradual decrease in inflation rate, it was still very high for the whole year; lending rate was beyond the endurance of enterprises; the liquidity of the economy remained difficult; real estate and stock markets remained quiet. Tightening monetary policy led to the consequence that enterprises and investors found it difficult to access capital. In that scenario, the implementation of 2011 business plan was severely affected due

to increasing inventory, plunged sold products, delayed customer receivables and etc. Nevertheless, with BOM and BOD’s prudent and determined management, great effort of all

the employees and support of our shareholders and clients, NBB successfully overcame many obstacles to develop and gain some significant achievements.

In 2012, the world economy still includes complicated uncertainty, the Government is expected to continue tight monetary policy in order to curb inflation rate that might lead to more diff iculties and challenges. However, this would be opportunities for the enterprises to restructure for higher competitive capability. Under these tough circumstances, the Board of Management still consistently followed the company’s strategy to focus on affordable housing segment in HCM City, residential lands in the provinces and big cities. Simultaneously, NBB continues to invest

in industrial manufacture, mining activities on the basis of existing projects for stable revenue; embedding the business strategy with financial plan and the movement of cash flow; saving costs to improve efficiency; adjusting product and market strategies; expanding association and join venture activities in order to attract investment capital and high quality workforce for large scale projects in real estate and mining field; attaching more importance to training programs to draw highly-qualified human resources for development requirement.

With effort and determination to overcome all obstacles, NBB ambitiously set up the business targets that increasing revenue and profit figures by 30% for the year 2012.

On behalf of the Board of Management, we would like to express our sincere thanks to all customers, partners and shareholders for your trust, collaboration and support during the past time. We commit to keep developing our tight union and striving for solid and sustainable development with the motto to continue bringing “Prosperity – Success” to investors in 2012 and subsequent years.

MESSAgE fROM ThE ChAIRMAN Of ThE BOARd Of MANAgEMENT

OvERvIEW

visionOne of the top Vietnamese enterprises in investment and real estate industry by building a transparent and logical management system as well as sustainable development

Mission Building and developing modern civilization urban areas, providing high-quality life and friendly natural environment. Bringing the highest surplus value, “Prosperity, Success” to NBB’s shareholders and staff. Taking into account its responsibilities towards the community, society; showing the mutual love and solidarity.

vISION ANd MISSION

dOAN TUONg TRIEUThe Chairman of The Board





6Annual Report

NBB CORP 2011

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Annual ReportNBB CORP 2011

development ProcessNBB formerly was a branch of Cienco 5 in Binh Thuan province, established under Decision No. 4750/QD-TCCB at the date of 1 November 2004 of the Board of Management. After more than 6 years of establishment, NBB has significantly expanded its operations, including the Head Office, Western South Branch, Binh Thuan Branch, Central Region Branch, Northern Branch, Hung Thanh Co. Ltd, NBB Industrial Joint Stock Company, Quang Ngai Mineral Investment Joint Stock Company.

Extending the joint venture and association with other enterprises such as 533 Transport Engineering Consulting Joint Stock Company, Viet Thanh Joint Stock Company, Nhip Cau Dia Oc Joint Stock Company, Tam Phu Investment and Construction Joint Stock Company, BOT Rach Mieu Bridge Co. Ltd and Ninh Thuan Investment and Construction Joint Stock Company.

The Scope of Business: Real Estate Development, Property Trade; Infrastructure Transport; Hydroelectricity and Thermo-

Electricity Construction; Electricity Production, Transmit, Distribution and Trade; Mining; Ecological Travel.

ESTABlIShMENT ANd dEVElOPMENT hISTORY ThE MIlESTONE Of NBB

On 04/7/2005, Nam Bay Bay Investment Corporation was officially established in accordance to the Business Registration Certificate No.4103003556 issued by Department of Planning and

Investment of HCM City

On 17/9/2007, according to the Certificate No. of 173/UBCK-GCN by The State Securities Commission, NBB was published 11.9 million shares, equivalent to 119bn VND to increase chartered capital from 35bn VND to 154bn VND.

On 18/2/2009, The State Securities Commission approved the NBB listing request. This is a remarkable point that NBB officially became a typical public company.

On 19/7/2010, NBB was honorably received the third class Labour Medal by the president of the Socialist Republic of Vietnam according

to the Decision No. 1033/QD-CTN.

On 26/01/2011, NBB increased chartered capital from 154bn VND to 180bn VND through private issuance to Beira Ltd. - DWS Fund Vietnam.

2 0

0

52

0

0 7

2 0

0

92

0

1 0

2 0

1

1

Real estateAfter six years since its operation, NBB consistently followed its strategic direction set out by General Shareholders that its core is real estate business to develop middle-income condo or / and landed properties with high quality and well-designed products to benefit its customers & shareholders.

Infrastructure/MiningDespite its business diversification, NBB has still developed its well-known business in building road & bridge and urban infrastructure. With the matured and experienced team over many national-level projects, Company has actively constructed integrated infrastructure for any NBB’s real estate projects as a construction developer, BOT projects and other projects as a contractor.

Industrial Manufacturing Company has invested in industrial production such as granite stone, construction stone, hydro-power, and recently put into operation of its Danang Auto Parts manufacturing factory to not only provide the input material for NBB’s projects but also generate steady revenue for stabilizing cash flow of general operation of NBB.

SCOPES Of BUSINESS





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NBB CORP 2011 www.nbb.com.vn6

Annual ReportNBB CORP 2011





8Annual Report

NBB CORP 2011

Main events:

January 2011: On 26 Jan 2011, Company has successfully issued 2,600,000 shares for strategic alliance Beira Limited –DWS Vietnam fund in order to raise charter capital from VND154bn to VND180bn. Total amount from the issuance is VND206bn.

March 2011: On 29 Mar 2011, Quang Ngai PC granted Decision No. 473/QĐ-UBND under which approved Company’s investment in Hong Ngoc Island Golf Villa project, Tinh An Ward, Son Tinh District.

June 2011:On 02 Jun 2011, Quang Ninh PC granted Decision No. 1760/QĐ-UBND under which assigned the design of 1/2000 master plan of Don Dien Ecological Urban Area project in Quang Ninh for NBB.

On 16 Jun 2011, Decision 816/QĐ-HĐTLKS was granted by National Mineral Reserve Assessing Committee approving the mineral reserve in LKBĐ1 borehole in Tra Bong mineral water mine of Quang Ngai Investment & Mining JSC.

On 27 Jun 2011, Quang Ngai PC granted Investment Certificate No. 34121000098 for Titan mining investment.

On 30 Jun 2011, Government Office granted Dispatch No. 4404/VPCP-KTN agreeing the investment grant for Quang Ngai Investment & Mining JSC. to mine titanium ores in Mo Duc District, Quang Ngai Province.

August 2011:On 04 Aug 2011, Decision 2461/QĐ-UBND was granted by Quang Nam PC to confiscate and grant land for developing South Tam Phu Ecological Urban Area - Quang Nam project.

November 2011:On 28 Nov 2011, Quang Ngai PC issued Notification No. 317/TB-UBND under which approved the master plan 1/500 of Ruby Island project.

december 2011:On 27 Dec 2011, Quang Ninh PC issued Decision No. 4187/QĐ-UBND under which approved the 1/500 master plan of Thuy San Hill Villa –Quang Ninh project.

Awards:

• 7th BCI Asia Top 10 Awards for one of the most active real-estate developers in the area including Hong Kong SAR, Indonesia, Malaysia, Philippines, Singapore, Thailand & Vietnam in 2011 by BCI Construction Telecommunication Group.

• According to noble CNBC Magazine, NBB is the only representative of Vietnam in Top 15 fast growing companies in Asia Pacific in the last 5 years.

• Flag of Excellence by Minister of Transport Ministry for the NBB’s exceptional performance in 2011• Flag of Excellence by Vietnam Transport Union for exceptional welfare activities for NBB staff • Other merits awarded by Government, Ministry, Industry and Provinces to teams and individuals having outstanding

performances in 2011.

Social Responsibilities:

NBB always has active role in social, gratitude and charity activities in provinces where NBB projects located in. The Company also corporate with local authorities in supporting families under preferential treatment and poor families with sharing and solidarity attitude. In 2011, NBB sponsored a number of programs for “Poor people caring fund” and “Revolution contributors caring fund”. The Company also contributes to the support for calamity area people, charity trip to poor people in remote area, building charity houses, taking care of Vietnam heroic mothers, martyrs’ families and other social activities.

MAIN EVENTS ANd AChIEVEMENT IN 2011ORgANIZATION

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gENERAl ShAREhOldER

BOARd Of MANAgEMENT

CEO

CSO

BOARd Of CONTROl

hUNg ThANh CO., lTd.

NBB INdUSTRY JOINTSTOCK COMPANY

QUANgNgAI MININg INVESMENT COMPANY

WESTERNSOUTh BRANCh

BINh ThUANBRANCh

CENTRAl REgIONBRANCh

NORThERNBRANCh

ChRO

CPO

CTO

SAlESdEPARTMENT

fINANCE-ACCOUNTINgdEPARTEMENT

hR-AdMINdEPARTEMENT

PROJECTdEPARTMENT

PlANNINg & SUPPlYINgdEPARTMENT

TEChNICAldEPARTMENT

BOARd OfSECRETARY

CfO






10Annual Report

NBB CORP 2011

BOARd Of MANAgEMENTNBB’s Board of Management is working based on the collective principle and determining all authorized issues according to Business Law and Company Regulation.

NBB’s BOM includes 7 members, in which non-executive 6 members are highly experienced experts in real estate, construction of transport infrastructure, financial investment, etc. All members have significant contributions towards setting up policies and operation directions during difficult economy and fierce competition.

STATEMENT Of BOARd Of MANAgEMENTIn 2011, the world economy had a turbulent year; moreover, unstable Vietnam economy also went through a difficult period due to government’s macro policies aiming to curb inflation. Those policies have negatively affected real estate enterprises including NBB. This statement will summary BOd’s basic judgments on production and business activities of NBB in the year 2011:

+ Supporting forces:• In real estate business, NBB focuses on land plot and mid-end condo segments which are well-matched

with current market’s demand and capability in the context of gloomy real estate market.• Minimizing the impact of risk on real estate market on production and business activities by diversification

to Construction, Industrial Manufacture, and Mining etc.• having projects’ progresses under control without investment capital pressure because most of major

real estate projects are in the process of compensation, clearance, legal procedure completion and not yet launched or sold.

• Credit lines granted by banks were all approved from previous years; as a result, in 2011, the disbursement could timely go with the projects’ progress.

+ Against forces:• SBV’s tightening monetary policy has caused difficulties in accessing new credit lines for real estate

enterprises in general and NBB in particular.• Real estate market has severely declined in price and liquidity; as a result, NBB’s financial income and

production & business results in 2011 were negatively affected.

Pham Thanh dien

MemberDOB: 8 September 1973Place of Birth: Binh Dinh

Permanent Address: Street No. 1, Tan Xuan Ward, Ham Tan Dist, Binh Thuan Province

doan Tuong Trieu

Chairman

DOB: 26 November 1971Place of Birth: Quang TriPermanent Address: 01CStreet 31C, An Phu Ward,District 2, HCM City

In 2011, BOM held regular meetings to discuss and implement the strategic tasks established by Shareholder’s Meeting, inc.:

• Issuing decisions on policy and procedure, department re-structuring, human resources re-structuring at headquarters and business directions for subsidiaries and associate companies.

• Directing all the company’s department and associate firms to implement the project lists and finalise the legal procedures relevant to the projects as planned.

• Frequently examining and updating the current situation of production and sales to give a timely guidance and remain stable development in changing economy.

BOM’s meetings are held by the company’s regulations. All memorandums, resolutions and decisions are based on the consistency of all members and stored in accordance with rules.

Remuneration for BOM and BOC:

In accordance with General Shareholder’s Resolution No.18/NQ-ĐHĐCĐ approved in 25 Apr 2011, remuneration for BOM and BOC are paid at 1% of Company’s profit after tax, equivalent to VND680mn with no extra plan-exceeding reward.

To overcome this challenging period and to build foundation for future sustainable growth, in 2012, BOD has outlined strategic guidelines to direct the process of achieving 2010-2015 production & business targets approved by General Shareholders in the new context. The main guidelines are:

• Improving liquidity of NBB assets including real estate and mining projects.• Continuing investing in residential land plots in provinces and mid-end condo projects in hCMC, especially

small-size condo which is financially reasonable for the majority of current buyers.• focusing on constructing offered real estate projects to meet committed project progress and to

generate income for NBB, such as Carina Plaza, City gate Towers, Ward 2 Bac lieu Township, Son Tinh Residential Area – Quang Ngai.

• Reviewing and completing legal procedure, compensation process, design documents and master plans of other current projects.

• Consolidating internal management system, restructuring organization to enhance management capability and increase competiveness.

• diversifying funding sources, actively seeking for capable partners to expand the cooperation, join-venture activates aiming to attract investment.

Hoang Huu Tuong

MemberDOB: 5 December 1970Place of Birth: Quang Tri

Permanent Address: 15 Lot CO, Ward 25, Binh Thanh Dist, HCMC

Louis T Nguyen

MemberDOB: 21 April 1963

Place of Birth: HCM CityPermanent Address: 603 Bernal

Avenue, Sunnyvale, California, US

Tran Quang Trinh

MemberDOB: 2 August 1969

Place of Birth: HCM CityPermanent Address: 146B2 Nguyen Van

Huong Str, Thao Dien Ward, Dist 2, HCMC

vo du Ngoc Tran

Member DOB: 30 March 1972

Place of Birth: Ba Ria – Vung TauPermanent Address: 59/4A Phan Dang Luu Str, Ward 7, Phu Nhuan Distr, HCM

Nguyen Thi Cat Tien

MemberDOB: 26 July 1984

Place of Birth: Da Nang CityPermanent Address: 78 Hoang Van Thu Street, Da Nang City

CORPORATE gOVERNANCE REPORT CORPORATE gOVERNANCE REPORT (continued)







12Annual Report

NBB CORP 2011

Board of Control has the function of supervision and review BOD, BOM activities of in managing and operating business. Furthermore, they also review the rationality, legality, honesty and prudence level in accounting activities and financial reporting.In 2011, representatives of Board of Control (BOC) participated in all BOM meetings and contributed opinions on following activities:

• Reviewing annual financial statements; Supervising the obedience of business obligations in accordance with legal mandates;

• Reviewing the transparency of information disclosure process to assure investor rights; concurrently, proposing and contributing opinions to BOM and BOD to ensure the sustainable development of the Company as well as protect shareholder benefit;

• Finance, Human Resource & policies for employees, assuring the solidarity within the Company.• NBB’s BOC includes 3 members, having adequate characters and capabilities in order to execute their tasks. They

also have experiences and expertise in relevant fields to satisfy job requirements

Report by the board of control for fiscal year 2011

During 2011, the Board of control had accomplished our responsibilities of inspecting and overseeing the whole operation of NBB on behaft of the general shareholders in accordance with the board of control’s functional and rights defined at the company’s charter, the Business Laws, and the Listed Company Regulations.

On behaft of the Board of control, I would hereby report to the Annual Shareholder Meeting the content as follows:

1. Results of the inspection regarding NBB’s financial statements and operation in 2011:

The content of the consolidated financial statements for fiscal year 2011 which was audited by IFC audit firm precisely reflected the company’s financial position as of Dec 31, 2011 and in accordance with the current Vietnamese accounting standards as well as all the related laws and regulations. A few main points within the consolidated financial statement include:

• The 2011’s revenue mainly derived from selling apartments of Carina and City Gate projects; transferring land use rights of Son Tinh and Bac Lieu projects; and from the construction contracts. However, the sales at the mainstay project City Gate was almost stagnated because of the frozen of the whole real estate market as well as the fearful mind of the buyers when the credit line was tightened and the interest rate was continuously increased. Hence, total revenue in 2011 only attained VND420.5 billion, equal to 66% of the plan.

• Gross profit from operating activities attained VND103 billion, gross profit margin remained at 25.1%, equal to that of 2010. Nevertheless, the revenue from financial activities decreased while financial expenses and business management expenses both increased, causing the net income before tax only attained VND102.5 billion, and net income of the mother company only attained VND69.6 billion, equal to 43.5% of the plan. Net margin decreased to 16.6% compare to 24.3% of 2010. The net income over the owner’s equity ratio decreased to 7% from 15.26% of 2010. As the result, the EPS in 2011 only attained VND4.305, decreased 43.8% compared to that of 2010. The company will pay cash dividend of 16% to shareholders as planned.

• Financial position: Total asset of the company increased 8.2% from VND2,349.5 billion at fiscal year ended 2010 to VND2,543 billion at fiscal year ended 2011, mostly included (i) the increase of 18% in inventory because the company continued to invest into the ongoing projects while the sales were nearly frozen, and (ii) the increase of 64% in fixed assets because the company recorded the construction costs of the head office building and the basement of the Carina Plaza project into account. Total liabilities (including bond) on the NBB’s consolidated balance sheet at 31/12/2011 was VND1,524 billion of which VND904 billion was short term liabilities because the bonds that were issued in 2009 and other long term debts were close to due. Long term liabilities hence decreased to VND358.6 billion compare to VND972.6 billion of 2010. In general, the total liabilities over the total owner’s equity ratio remains at the safety level at 1.5 time.

STATEMENT Of BOARd Of CONTROl

Nguyen Thi Thu Hoa Member

DOB: 02 Mar 1969POB: Phan Thiet, Binh Thuan

Permanent address: 34 Hai Thuong Lan Ong, Phan Thiet, Binh Thuan

Phan Ngoc Tri Member

DOB: 23 Feb1967POB: HCMC

Permanent address: 18 Wilson Str, Mansfield Park SA5012, Australia

Nguyen Quynh Huong Head of BOC

DOB: 23 Jan1980POB: Hanoi

Permanent address: 67/55 Hoang Hoa Tham, Binh Thanh Dist., HCMC

2. Regarding the compliance of the State laws and internal regulations:

During 2010, NBB’s BOD and BOM complied correctly and fully all the State related regulations and laws in operating business including the declaration of payable tax and other payable to the Government; the periodic disclosure of information as required by SSC; as well as the payments for social insurance, medical insurance, and severance allowance for employee.

Assessment from Board of Control:

2011 was an extremely difficult year for the real estate and the financial industry. Therefore, although the result in 2011 has not met the plan that was approved by the 2010 Annual Shareholder Meeting, we believe that this is a much better result compare to those of other real estate companies within the industry. 2012 is still a year of unknowns and challenges to the economy and the real estate market. Although the interest rate has decreased, the way to approach the capital would still be very difficult, especially for real estate. In addition, the investor’s prudent observation trend would continue making it hard for the sale activity. The Board of control suggests the BOD and the BOM to promptly provide solutions to seek out sources of capital, continue develop the projects to wait in front of the return of the market. We place the trust into the judicious lead of the BOD and the BOM as well as the devoted work of all NBB’s employees. We would wish the good health to all shareholders and the distinguished delegates. Great success to the Annual Shareholder Meeting.

Ho Chi Minh City, 11 March 2012.On behalf of Board of Controlhead of the Board

Huong Q. Nguyen

• In 2011, NBB successfully issued 2.6 million preferred shares to a foreign institution, increasing the chartered capital to VND180 billion from VND154 billion. This issuance brought VND180 billion in capital surplus to the company. Total capital surplus at fiscal year ended 2011 was VND401 billion, increased 81% compared to that of 2010. The retained earnings also increased 43% from VND66 billion by end of 2010 to VND94.8 billion at 31/12/2011.







14Annual Report

NBB CORP 2011

Actual company performance compares to targets

Key financial figures:

Main financial figures analysis: - Asset structure: Stable with no significant fluctuation in comparison to 2010. Current asset still accounts for large proportion of 82.61% total asset. Main component of current asset is inventory which is the project investment cost have not record in Income Statement. This figure shows that Company’s asset has high liquidity and formed on the solid foundation because 44.50% of current asset is financed by long-term loans and owner equity.

- Equity structure: There are a number of changes in equity structure. Liability/ Total Asset Ratio decreased by 7.07% y-o-y to 59.95% in 2011 due to the increase of charter capital (VND154bn to VND180bn) from the issuance of 2.6 million preference shares to Beira Limited. This figure reflects that the capital safety is gradually reinforced and financial capacity is increased to provide adequate fund for on-going projects.

STATEMENT Of BOARd Of dIRECTORS (BOd)

NBB’s BOD includes 6 members appointed or dismissed by BOM.

Chief Executive Officer is the Company’s legal representative responsible for operating and managing all production and business activities of the Company in accordance with Gerneral Shareholder & BOM’s Resolutions.

doan Tuong TrieuCEO

Tran van HuuCFO

DOB: 01 Jan 1964POB: Quang Nam

Permanent address: 703/6 Lac Long Quan, Ward 10, Tan Binh District, HCMC

Nguyen Thanh QuyetCSO

DOB: 08 Feb 1974POB: Nam Dinh

Permanent address: 60 Road S1, TayThanh Ward,Tan Phu Dist, HCMC

Nguyen van Tung CTO

DOB: 28 Feb 1977POB: Binh Dinh

Permanent address: 325 Nguyen Hue, Tuy Phuoc Town, Binh Đinh Province

Nguyen PhucCPO

POB: 02 Apr 1960POB: Binh Dinh

Permanent address: 75/1 Phan Van Han, Ward 17, Binh Thanh District, HCMC

1

2

3456

Total revenue - Real Estate - Industrial manufacture, mining - Constrution (bidder) - OthersFinancial IncomeFinancial Receivable - Real Estate - Industrial manufacture, mining - Constrution (bidder) - OthersTotal operating expenses:Profit before TaxProfit after Tax (Parent Company)dividend per share

Planned 2011

635.00 458.00 36.00 112.00 29.00

- 982.96

815.02 27.08 110.00 30.86

418.00 217.00 160.00

16%

% Completed

66.23 %

40.71 %

86.66 %47.23 %43.49 %

100 %

ITEMS Actual 2011

420.57301.33

27.2389.68

2.3356.97

400.15280.50

38,5780,78

-362,23102.49

69.5916%

+ / - (%)

13.00(2.36)

(10.55)21.88

(71.43)(45.45)

(51.80)(31.41)(54.64)

1

2

3

4

Unit

%%

%%

times times

%%%

31 dec 2010

15.3984.61

67.0232.31

0.633.30

5.8324.3217.24

ITEMS

Asset structure- Non-current asset/ Total asset- Current asset/ Total assetEquity structure- Liability/ Total Equity- Owner Equity/ Total EquityLiquidity ratios- Quick ratio - Current ratioProfitability- ROA- Net Profit Margin- ROE

31dec 2011

17.3982.61

59.9539.38

0.181.80

2.8116.68

7.82





16Annual Report

NBB CORP 2011

- Liquidity: Liquidity ratios decreased y-o-y; however, in substance, there is no abnormal change because of two mainreasons. Firstly, as at 31 Dec 2010, Cash & Cash equivalent item included VND208bn from Beira Limited’s deposit to buy 2.6 million preference shares. In 2011, this amount of money is used to fund production & business activities. Secondly, the increase of Short-term debt by approximately VND564bn y-o-y is mainly attributed by the transference of VND500bn bond obligation from Long-term debt to Short-term debt since the bond will mature in 2012. Current ratio at 1.8 times is still reasonable.

- Profitability: Currently, NBB recognizes revenue and profit from cash collection from customers. Due to the decline of real estate market and tightening monetary policy, the cash collection is negatively affected. As a result, profitability ratios fall y-o-y. Moreover, the increase of charter capital by VND208bn from preference share issuance put heavy pressure on achieving expected ROE.

However, the year 2011 witnessed the outstanding efforts of Management and entire NBB’s employees to overcome great number of difficulties and challenges in order to assure liquidity to smooth the production & business performance and healthy financial structure for sustainable growth. In the context of negative market environment, NBB (parent company) achieved the profit after tax of VND69.59bn with the net profit margin of 16.68%. In comparison to other peers in the industry, this achievement has highlighted NBB’s capability and brand name.

BOd Remuneration:

Salary & Bonus:

In 2011, total salary of BOD and Chief Accountant is VND1,622.40mn (Including personal income tax), accounting for 2.33% Company’s profit after tax. CEO’s salary is VND 390mn in 2011.

Total bonus of BOD and Chief Accountant is VND275.4mn in 2011 (Including personal income tax), accounting for 0.39% profit after tax of the Company. CEO’s bonus is VND 67.5mn in 2011.

Other benefits:

BOD and Chief Accountant have equal benefits as other NBB’s employees: bonus appraised annually; salary upgrade appraised every 3 years; bonus for recognized initiatives bringing benefit for the company. Furthermore, in 2011, BOD & Chief Accountant did not request for any extra benefit because of the realization of current challenging context and the Company’s lower-than-target performance.

Changes to members of BOM, BOC, BOd , Chief of Accountant: none

2011 KEY fINANCIAl INdICATORS

EBIT & EBITdA ChART

124.

70

122.

31

179.

52

169.

17

127.

47

113.

72

27.55

35.66

36.3637.06

30.88

EBITdA EBITdA Margin EBIT MarginEBIT

200

180

160

140

120

100

80

60

40

20

0

40.0

35.0

30.0

25.0

20.0

15.0

10.0

5.0

0.0

VNDbn %

2009 2010 2011

REVENUE & EBITdA MARgIN ChART

500

450

400

350

300

250

200

150

100

50

0

40.0

35.0

30.0

25.0

20.0

15.0

10.0

5.0

0.0

36.36

VNDbn

342.

95

484.

40

412.

78

37.06

30.88

%

2009 2010 2011

Revenue EBITdA margin

6,141

7,663

4,305

93.6

0

117.

79

68.8

6

PROfIT AfTER TAX & EARNINgS PER ShARE ChART

120

100

80

60

40

20

0

9,000

8,000

7,000

6,000

5,000

4,000

3,000

2,000

1,000

0

VNDbnVND

2009 2010 2011

Profit after tax Earnings per share

1,524.4860.36%

2011 EQUITY STRUCTURE

1,001.3739.64%

liabilities Equity

2011 ACTUAl REVENUE STRUCTURE

27.23

89.6821%

2.331%

72%

6%

301.33

Real estate ConstructionIndustry Others

34.92

123

4

5

678

Unit

VND/shareMn VND

Mn VNDMn VND

ShareShare

ShareShareShare

VND/shareVND/share

Amount

42,6271,001,370

-650,000

18,000,00015,400,000

2,600,00017,860,000

15,260,6002,600,000

139,4001,6004,305

Note

at 31/12/2011at 31/12/2011

Mature: 2012: VND 500bn, 2013: VND 150bn

Expected

ITEMS

Book value (Bv) EquityTotal outstanding bond- Convertible bond- Straight bondTotal number of issued shares- Common share- Preference shareNumber of outstanding shares- Common share- Preference shareTreasury shares2011 dividend Payment (in cash) EPS

STATEMENT Of BOARd Of dIRECTORS (Continued)





18Annual Report

NBB CORP 2011

Completed ProjectOngoing Project

QUANg NINh:Don Dien Ecological Urban Area

Thuy San Hill Villa

dA NANg:NBBI Factory

QUANg NAM:Tam Phu Ecological Urban Area

QUANg NgAI:Son Tinh Residential Area

Ruby IslandTiTanium Mines - Mo Duc

Hot Mineral Mines Grannite Mines

PhU YEN:Da Den Hydroelectric Plant

NINh ThUAN:BOT Phan Rang

BINh ThUAN:De Lagi

North Phan ThietHung Vuong Commercial Centre

Tazon Quarry

TP. hO ChI MINh:Carina Plaza

City GateDiamond Riverside

NBB Garden IINBB Garden III

Tan Kien Residental Complex

BEN TRE:BOT Rach Mieu

BAC lIEU:Bac Lieu Commercial Urban Area

Truong sa Islands

Hoang sa Islands

HA NOI

QUANG NINH

dA NANG

QUANG NAM

QUANG NGAI

PHU YEN

NINH THUAN

BINH THUANHCM City

BEN TRE

BAC LIEU

100 102 104 106 108 110

100 102 104 106 108 110 112

22 30

22 00

17 30

15 00

12 30

10 00

5 00,

,

,

,

,

,

,

o o o o o o

22 30

22 00

17 30

15 00

12 30

10 00

7 30,

,

,

,

,

,

,

o o o o o o o

o

o

o

o

o

o

o

o

o

o

o

o

o

o

LIST OF PROJECTS OF NBB INTERNAl CONTROl SYSTEM

The company has established and issued the complete system of regulations, institution and procedures since 2005 in order to standardize the tasks between levels, the co-ordinated implementation of the production and business requirements from BOM, BOD to other departments, branches and subsidiaries. The system so far has been updated, adjusted and supplemented the 3rd time.

The System of Regulations, Institution and Procedures

SYSTEM SYSTEM A. ISSUANCE BY BOARd OF MANAGEMENT• Company management regulation. • Organisation and operation regulation of Board of Management. • Operation regulation of Board of Directors. • Financial management regulation. • Capital investment & capital representatives regulation

B. ISSUANCE BY CHIEF EXECUTIvE OFFICER o Finance – Accounting department• Organisation and operation institution. • Assignment institution. • Regulations on expenditure management in relation to

business trip, telephone and stationery. • Payment, pay in advance and repayment procedures. • Procedures on investment, the liquidation of fixed assets,

production tools and equipment. • Regulations on sercurities trading activities.• Information disclosure procedures. • Credit capital raising procedures. • Procedures on the preparation of financial management report.• Project appraisal procedures

o Sales department• Organisation and operation institution • Assignment institution • Sales procedures • Marketing procedures • Procedures on transferring the purchase contracts• Procedures on debt collection • Procedures on condominium hand-over

o HR and Administration department • Organisation and operation institution • Assignment institution • Brand identity operation institution • Salary, bonus and allowance institution• Institution on staff performance evaluation • Institution of the guest welcoming at the offices • Regulations on Company’s office usage and management• Labour regulations• In and out correspondence procedures• Recruitment procedures• Procedures on office equipment purchase and management • Procedures on documentation preparation for BOM • Holding events, social activities

o Planning & Supplying department• Organization and operation institution• Internal responsibility dividing and settling institution• Assignment institution• Procedures on coordinating in forming and controlling plan• Procedures on co-ordination of bidding invitation and

bid selection • Procedures on setting project investment cost• Procedures on approving material supply

o Project department• Organisation and operation institution. • Assignment institution. • Procedures on doing investment report• Procedures on operating construction project• Procedures on compensation and resettlement support

o Technical department• Organization and operation institution• Organization and operation institution of Management

Board of high-rise bulding project• Organization and operation institution of Management

Board of infrastructure project• Organization and operation institution of Construction unit• Regulation on task assignment for Technical unit• Regulation on task assignment for Management Board

of high-rise bulding project• Regulation on task assignment for Management Board

of infrastructure project • Regulation on usage and management of construction

machines, tools and supplies. • Regulation on Fire Prevention and Safety Construction• Regulation on project completion documents • Procudures on supervision and managenent of high-rise

building project• Procudures on bidding• Procudures on bidding process





20Annual Report

NBB CORP 2011

Some key solutions in 2012:

• Identifying a reasonable proportion of the investment structure to generate a stable revenue in the complexly changing situation of the monetary market and rising raw material prices.

• Focusing on investment in existing mid-end housing projects which are in convenient locations, among the areas with high rate of urbanization. Simultaneously, the company also researches and develops a number of new products to fit client’s diverse demands.

• Boosting the land plot business and financial collection in the ongoing project; completing entirely Carina Plaza high-rise apartment project; finishing infrastructure construction of Commercial urban area along Bac Lieu river project to focus sales business.

• Finalizing the legal procedures to start construction the following projects: Diamond Riverside, NBB Garden III, Thuy San Hill villa area.

• Step by step completing compensation for such projects: Son Tinh residential area, NBB Garden II, Tan Kien residential complex – Binh Chanh, Thuy San Hill villa area and De Lagi high-class resort and urban area.

• Finishing the construction of BOT Phan Rang – Thap Cham by-pass road project to start tolling

• Starting the construction of BOT Co Chien Bridge, Da Den hydroelectric plant as scheduled

• Finalizing the legal procedures to implement the exploitation of Tra Bong hot mineral mines, titanium deep processing plant and other current mines.

• Perfecting the company’s sale policies, proper marketing activities for product and brand name promotion strategy

1

23456

Actual 2011

420.57301.33

27.2389.68

2.3358.07

400.15363.33102.49

69.5916%

Plan 2012

780.87631.94

33.3246.71

5.2763.64

883.70492.01288.86216.64

16%

ITEMS

Total Revenue - Real Estate - Industrial manufacture, mining - Construction (bidder) - OthersFinancial IncomeFinancial ReceivableTotal operating expense:Profit before TaxProfit after Tax (Parent Company)dividend

+ / - (%)

185.67%

220.84%135.42%281.84%311.31%

Total

Stake owned by members of BOM, BOC and BOd

36.11%13.05%

7.22%5.83%

10.00%5.83%3.06%2.50%1.39%0.28%

4.82%0.06%1.94%2.82%

0.39%0.11%0.28%

41.32%

6,500,000 2,350,000 1,300,000 1,050,000 1,800,000 1,050,000

550,000 450,000 250,000

50,000 868,460

10,000 350,000 508,460 70,000 20,000 50,000

7,438,460

42.21%15.26%

8.44%6.82%

11.69%6.82%3.57%2.92%1.62%0.32%

5.64%0.06%2.27%3.30%

0.45%0.13%0.32%

48.30%

6,500,000 2,350,000 1,300,000 1,050,000 1,800,000 1,050,000

550,000 450,000 250,000

50,000 868,460

10,000 350,000 508,460 70,000 20,000 50,000

7,438,460

Board of ManagementDoan Tuong Trieu - Individual ownership - Cienco 5 RepresentativeVo Du Ngoc TranPham Thanh DienHoang Huu TuongTran Quang TrinhNguyen Thi Cat TienLouis T NguyenBoard of ControlNguyen Quynh HuongNguyen Thi Thu HoaPhan Ngoc TriBoard of directorNguyen PhucTran Van Huu

Chairman

MemberMemberMemberMemberMemberMember

The HeadMemberMember

CPOCFO

28 december 2010 15 March 2011

No. of share % Stake No. of share % StakeNAME Position

I1

234567II123III12

In 2011, members of BOM, BOC and BOD implemented no NBB stock transactions, compliance with the provisions in paragraph 1.b of Article 8 of the company’s regulations.

Shareholder Structure

36.11%36.11%

5.83%0.39%4.82%2.00%2.82%

0.77%57.90%

25.49%14.39%32.41%31.85%

100%

6,500,000 6,500,000 1,050,000

70,000 868,460

360,000 508,460

139,400 10,422,140

4,587,640 2,589,523 5,834,500 5,732,990

18,000,000

42.21%42.21%

6.82%0.45%5.64%2.34%3.30%

0.91%50.79%

30.53%15.35%20.26%19.65%

100%

6,500,000 6,500,000 1,050,000

70,000 868,460

360,000 508,460

139,400 7,822,140

4,701,520 2,337,892 3,120,620 3,026,760

15,400,000

SHAREHOLdER

Board of Management- Domestic In which: State ownedBoard of directorBoard of Control- Domestic- InternationalTreasuryOthers- Domestic In which: Corporation- International In which: CorporationTotal

1 23

45

No. of share % Stake No. of share % Stake


NBB’s stock information as at 31/12/2011 ITEM

1. Closing price (as at 31/12/2011)2. Highest price within 52 weeks3. Lowest price within 52 weeks4. Total outstanding shares 5. Market capitalization (closing price at 31/12/2011)6. EPS 7. P/E 8. BV

9. P/B

Unit

VNDVNDVND

ShareVND bn

VNDTimes

VND Times

NBB

48,900 88,00041,500

17,860,600873.38

4.30511.36

42,6271.15

BUSINESS TARgETS ANd dIRECTIONS IN 2012INFORMATION ON SHAREHOLdERS ANd STOCKSINVESTOR RElATIONS





22Annual Report

NBB CORP 2011

41.71%

1,929,0902,589,523

101,510

5,732,990 7,507,487

139,400

10.72%14.39%

0.56%

31.85%

0.77%

10,353,1136,500,000

868,460

139,400

139,027

57.52%36.11%

4.82%

0.77%

0.77%

Shareholder structure chart as at 15/03/2011

External shareholdersForeign individualsForeign organizations

Treasury sharesBoard of ControlDomestic individualsTreasury shares Domestic organizations

Internal shareholders Employees Board of Management

Stake owned by controlling shareholders

28.89%10.00%

7.22%5.83%5.83%

27.50%14.44%13.06%

56.39%


5,200,000 1,800,000 1,300,000 1,050,000 1,050,000

4,950,000 2,600,000 2,350,000

10,150,000

33.77%11.69%

8.44%6.82%6.82%

15.26%-

15.26%49.03%

5,200,000 1,800,000 1,300,000 1,050,000 1,050,000

2,350,000 -

2,350,000 7,550,000

NAME

Board of ManagementVo Du Ngoc TranĐoan Tuong TrieuPham Thanh DienCIENCO 5International CorporationsBeira Limited - DWS Viet NamVietnam Property HoldingTotal

I1234II56

No. of share % Stake No. of share % Stake

Investor Relations Activities

• Being a listed company, in 2011, Company always obeys and fully satisfies information disclosure requirements in accordance with regulations of State Securities Commission of Vietnam and Ho Chi Minh Stock Exchange (HOSE). Production & business activities information, financial statements and other important events is on time updated in NBB website to assure primary and formal information supply; therefore, rights and benefits of shareholders are protected.

• Beyond the information provided in Annual Report, NBB also issues project’s profiles. Moreover, the Company frequently contact and exchange information with prospective partners, investment funds and financial institutions to expand investment opportunity.

• NBB has built the detailed communication strategy for the period from 2012 to 2015 relevant with Company’s performance and current human resource capability in different time-frames. The main points of the strategy are developing investor relations page in NBB website, issuing more projects’ profiles to introduce projects to investors, holding seminars & road shows, enhancing the promotion of NBB brand in traditional channels and building & reinforcing public confidence in NBB brand to benefit the investment attracting activities.

The Board of Directors of NBB Investment Corporation (“the Company”) presents this report together with the Company’s audited consolidated financial statements for the year ended 31 December 2011.

ThE BOARdS Of MANAgEMENT ANd dIRECTORSThe members of the Boards of Management and Directors of the Company who held office during the period and at the date of these reports are as follows:

Board of Management Board of directorsMr. Doan Tuong TrieuMr. Pham Thanh DienMr. Tran Quang TrinhMr. Hoang Huu TuongMr. Louis T. NguyenMrs. Vo Du Ngoc TranMrs. Nguyen Thi Cat Tien BOARd Of dIRECTORS’ STATEMENT Of RESPONSIBIlITYThe Board of Directors of the Company is responsible for preparing the consolidated financial statements of each year, which give a true and fair view of the financial position of the Company and of its results and cash flows for the year. In preparing these consolidated financial statements, the Board of Directors are required to:

• 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 consolidated financial statements; • Prepare the consolidated financial statements on the going concern basis unless it is inappropriate to presume that

the Company will continue in business; and• Design and implement and effective internal control system for the purpose of properly preparing and presenting

the consolidated financial statements so as to minimize errors and frauds.

The Board of Directors 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 to ensure that the consolidated financial statements comply with Vietnamese Accounting Standards, Vietnamese Accounting System and prevailing accounting regulations in Vietnam. It is also responsible for safeguarding the assets of the Company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

The Board of Directors confirms that the Company has complied with the above requirements in preparing these consolidated financial statements.

For and on behalf of the Board of Directors,

ChairmanMemberMemberMemberMember MemberMember

Mr. Doan Tuong TrieuMr. Nguyen PhucMr. Tran Van HuuMr. Nguyen Van TungMr. Nguyen Thanh Quyet

Chief Executive OfficerChief Project OfficerChief Finance OfficerActing as Chief Technical OfficerActing as Chief Sales Officer

Ho Chi Minh City, 25 February 2012

dOAN TUONg TRIEU Chief Executive Officer

INVESTOR RElATIONS (continued)

STATEMENT OF THE BOARd OF dIRECTORS

fOR ThE YEAR ENdEd 31 dECEMBER 2011AUdITEd CONSOLIdATEd FINANCIAL STATEMENTS





24Annual Report

NBB CORP 2011

100

110111112

130131132135139

140141

150151152154158

200

220221222223227228229230

240241

250252258259

260261262268

269

A - CURRENT ASSETS I. Cash and cash equivalents1. Cash2. Cash equivalents III. Short-term receivables1. Trade accounts receivables2. Advances to suppliers 5. Other receivables 6. Provison for doubtful debts IV. Inventories 1. Inventories V. Other short-term assets 1. Short-term prepayments 2. VAT deductibles 3. Taxes and receivables from State budget4. Other short-term assets B - NON-CURRENT ASSETS II. fixed assets 1. Tangible fixed assets - Cost -Accumulated depreciation 3.Intangible fixed assets - Cost -Accumulated depreciation 4. Construction in progress III. Investmetn property - Cost IV. long-term financial investments 2. Investments in associates, joint ventures3. Other long-term investments 4. Provision for diminution in value of long-term financial investments V. Other non current assets 1. Long-term prepayments 2. Deferred tax assets 3. Other non-current assets VI. goodwill TOTAL ASSETS

ASSETS Codes Notes 31/12/2011 01/01/2011 VNd VNd

V.1

V.2

V.3

V.4

V.5

V.6

V.7

V.8

V.9V.10V.11

V12 V.13V.14V.15

1,987,875,442,107

223,228,977,330 223,181,424,630

47,552,700 115,144,679,692

19,645,399,461 29,399,452,899 67,018,426,705 (918,599,373)

1,606,248,834,622 1,606,248,834,622

43,252,950,463 683,779,140

33,269,756,804 265,300

9,299,149,219

361,628,188,733

197,503,325,029 115,091,610,107 148,012,150,228 (32,920,540,121) 32,551,246,913 33,197,215,377 (645,968,464)

49,860,468,009 1,600,000,000

1,600,000,000 47,436,744,515

27,704,609,900 21,252,134,615 (1,520,000,000)

55,266,214,428

50,659,577,249 1,983,789,659 2,622,847,520

59,821,904,761

2,349,503,630,840

2,100,705,464,957

18,702,679,393 18,364,110,931 338,568,462

136,626,682,330 17,887,200,045 10,667,954,158 109,395,668,962 (1,324,140,835)

1,891,471,695,479 1,891,471,695,479

53,904,407,755 693,250,903

38,472,803,727 15,310,295

14,723,042,830

442,205,115,208

278,224,692,915 189,366,469,355 234,109,123,169 (44,742,653,814) 39,270,734,774 40,844,593,036 (1,573,858,262) 49,587,488,786

1,600,000,000 1,600,000,000

45,884,585,780 25,412,657,977 22,431,927,803 (1,960,000,000)

63,566,301,340

57,965,983,382 2,977,470,438 2,622,847,520

52,929,535,173

2,542,910,580,165

CONSOlIdATEd BAlANCE ShEET As at 31 december 2011

INTERNATIONAl AUdITINg ANd fINANCIAl CONSUlTINg COMPANY lTd. (IfC) gerneral director Auditor

KHUC dINH dUNG PHAM TIEN dUNG CPA Certificate No . 0748/KTV CPA Certificate No . 0747/KTV25 February 2012

We have audited the accompanying consolidated balance sheet of NBB Investment Corporation (“the Company”) as at 31 December 2011, the related consolidated statements of income, consolidated cash flows and the notes to the consolidated financial statements for the year then ended, prepared on 25 February 2012 from page 4 to 44 hereunder. 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.

The Company’s consolidated financial statements for the year ended 31 December 2010 were audited by Auditing and Financial Consulting Company Limited expressed an unqualified opinion on those statements.

Respective Responsibilities of the Board of directors and AuditorsAs stated in the Statement of the Board of Directors on page 2, the preparation of these consolidated financial statements is the responsibility of the Company’s Board of Directors. Our responsibility is to express an opinion on these financial statements based on our audit.

Basis of Opinion We have conducted our audit in accordance with Vietnamese Standards on Auditing. Those standards require that we plan and perform the audit to obtain reasonable assurance that the financial statements are free of material misstatements. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion

Opinion In our opinion, the accompanying consolidated financial statements give a true and fair view of, in all material respects, the financial position of the Company as at 31 December 2011 and the results of its operations and its cash flows for the year then ended in accordance with Vietnamese Accounting Standards, Vietnamese Accounting System and prevailing accounting regulations in Vietnam.

To: Shareholders, Board of Management and Directors NBB Investment Corporation

AUdITORS’ REPORT

On: Consolidated financial statements of NBB Investment Corporation for the year ended 31 december 2011





26Annual Report

NBB CORP 2011

1. Gross sales of merchandise and services2. Less deductions 3. Net sales of merchandise and services4. Cost of sales 5. Gross profit from sales of merchandise and services6. Financial income7. Financial expenses In which: Interest expense8. Selling expenses9. General and administration expenses10. Operating profit 11. Other income 12. Other expenses 13. Profit from other activities14. Losses from associates, joint ventures15. Accounting profit before tax16. Current tax expense 17. Deferred tax expense18. Profit after tax19. Minority interest20. The Company’s shareholders’ profit after tax21. Basic earnings per share

vI.1VI.1

VI.2

VI.3VI.4

VI.5VI.6

VI.7

VI.8

V.13

vI.9

0102 10112021222324 25 30 31 32 40 4550 51 52 60 61 6270

420,571,027,860 7,786,326,183

412,784,701,677 309,062,445,399

103,722,256,278 56,965,369,255 19,363,786,135

11,226,104,184 5,099,917,438

28,705,540,081 107,518,381,879

3,788,351,101 2,936,432,520

851,918,581 (5,877,930,447 )

102,492,370,013 21,939,372,349 11,697,351,036

68,855,646,628 (734,633,586) 69,590,280,214

4,305

485,282,350,196 883,267,979

484,399,082,217 363,373,855,921

121,025,226,296 92,757,097,509 13,852,440,785

5,535,987,681 5,930,595,779

19,034,875,929 174,964,411,312

2,707,064,234 8,313,033,616

5,605,969,382) (5,728,370,847)

163,630,071,083 38,983,049,465 6,861,458,036

117,785,563,582 1,900,600,710

115,884,962,872 7,663

CONSOlIdATEd INCOME STATEMENTfor the year ended 31 december 2011


NgUYEN ThI ANh ThUChief Accountant

dOAN TUONg TRIEUChief Executive Officer

ITEMS Codes Notes YEAR 2011 YEAR 2010 VNd VNd

A. LIABILITIES

I. Current liabilities1. Short-term loans and liabilities2. Trade accounts payable3. Advances from customers4. Taxes and amounts payable to State budget 5. Payables to employees6. Accured expenses9. Other current payables10. Bonus and welfare fundsII.long-term liabilities 3. Other long-term payables4. Long-term loans and liabilities5. Deferred tax liabilities

B. EQUITY

I. Owner’s equity1. Paid in capital2. Share premium3. Other owner’s capital4. Treasury shares7. Investment and development funds8. Financial reserve funds10. Retained earnings

C. MINORITY INTEREST

TOTAL RESOURCES

300

310311312313314

315316319323330333334335 400 410411412413414417418420 439 440

V.16

V.17

V.18V.19

V.20V.21V.13

v.22

1,524,475,151,774

1,165,781,888,468

904,266,263,889 76,372,979,584 49,902,962,239 39,281,684,984

1,528,313,069

46,502,581,763 32,538,668,798 15,388,434,142

358,693,263,306 9,778,882,138

313,525,381,051 35,389,000,117

1,001,369,593,401

1,001,369,593,401

180,000,000,000 401,186,435,120 200,761,832,000 (6,891,019,437) 113,477,728,497 18,000,000,000 94,834,617,221

17,065,834,990

2,542,910,580,165

1,574,660,064,132

601,980,474,172 182,939,533,896 48,647,526,899 87,018,401,941 28,316,547,247

1,762,467,752

21,784,469,391 217,627,060,247 13,884,466,799

972,679,589,960 53,453,210,227 896,528,411,432 22,697,968,301

759,077,118,350

759,077,118,350 154,000,000,000 221,737,435,120 195,333,832,000 (6,891,019,437) 113,477,728,497 15,245,183,501 66,173,958,669

15,766,448,358

2,349,503,630,840




RESOURCES Codes Notes 31/12/2011 01/01/2011 VNd VNd

CONSOlIdATEd BAlANCE ShEET (continued) As at 31 december 2011





28Annual Report

NBB CORP 2011

Non-cash transactions impacted to consolidated cash flow statement:

During the period, paid in capital on the consolidated balance sheet has increased by VND 208 billion regarding individual issuing of 2,600,000 shares in January 2011, however, the proceeds from issuing stock, receiving capital from owners (code No. 31) on the consolidated cash flows statement has only increased by VND 7,557,336,360 including the capital contribution from minority shareholders of the Company’s subsidiary - NBB Industry Joint Stock Company of VND 2,129,336,360 and capital contributed to NBB Garden II project (NBB II) of VND 5,428,000,000 from Mr. Pham Van Dau regarding business cooperation contract (BCC) 610/2009/HD-HDHT dated 05/11/2009. The reason is that the Company had received the amount of VND 208 billion and recognised as a non-current deposit received for buying shares in 2010. Accordingly, in 2011, a decrease of account payable (code No. 11) was adjusted on the consolidated cash flows statement instead of being represented on the proceeds from issuing stock, receiving capital from owners (code No. 31).

Supplemented information for consolidated cash flow statement:

(a) Interest paid (code No. 13) of VND 185,671,934,428 (year 2010: VND 120,625,726,003) represents interest that the Company has paid including capitalised interest and expensed interest during the year. Among, the capitalised interest of VND 174,445,830,244 (year 2010: VND 115,089,738,322) incurred from loan and bonds issued for real estate projects of the Company; and the expensed interest of VND 11,226,104,184 (year 2010: VND 5,535,987,681) was incurred from loan facilites from banks and other organisations in oder to supplement working capital during the year.

(b) Interest income received from sales of investment right on projects coded No. 27 represents the gain from transferring 40% investment right on the NBB1 project (Diamond Riverside) pursuant to Note VI.3.

CONSOlIdATEd CASh flOW STATEMENT (Indirect method)for the year ended 31 december 2011

CONSOlIdATEd CASh flOW STATEMENT (Indirect method)

for the year ended 31 december 2011




I. Cash flows from operating activities1. Profit before tax2. Adjustments for:

Depreciation and amortisationProvisionsUnrealized foreign exchange lossGain from investing activitiesInterest expenseLosses from associates, joint venturesAmortisation of goodwill

3. Operating profit before movements in working capitalIncrease in receivablesIncrease in inventories(Decrease)/Increase in account payablesIncrease in prepaid expensesInterest paid (a)Corporate income tax paidOther cash inflowsOther cash outflows

Net cash used in operating activities II. Cash flows from investing activities1. Acquisition and construction of fixed assets2. Proceeds from sale, disposal of fixed assets 5. Investments in other entities6. Cash recovered from investments in other entities7. Interest earned, dividends and profits received8. Interest earned from selling investment right on project (b)Net cash from/(used in) investing activities III. Cash flows from financing activities1. Proceeds from issuing stocks, receiving capital from owners2. Capital withdrawals, buying treasury shares3. Payment for expenses of shares issuance4. Proceeds from borrowings5. Repayments of borrowings 6. Dividends paidNet cash from financing activitiesNet decrease in cash and cash equivalentsCash and cash equivalents at the beginning of the yearEffects of changes in foreign exchange ratesCash and cash equivalents at the end of the year

01

0203040506 08091011121314151620 21222526272730 3132323334364050606170

102,492,370,013

13,756,476,215 845,541,462 228,824,542

(51,157,595,415) 11,226,104,184 5,877,930,447 6,892,369,588

90,162,021,036 (31,634,176,123) (182,068,313,335) (13,365,005,582) (4,693,978,740)

(185,671,934,428) (15,900,635,670)

- (8,449,193,961)

(351,621,216,803)

(21,070,253,641) 1,188,245,622 (4,765,771,712) 10,000,000,000 3,773,239,167 37,184,640,000 26,310,099,436

7,557,336,360 -

(2,551,000,000) 401,719,918,840

(263,396,219,228) (22,316,392,000) 121,013,643,972

(204,297,473,395) 223,228,977,330

(228,824,542) 18,702,679,393

163,630,071,083

10,351,422,417 270,000,000

- (85,513,708,200)

5,535,987,681 5,728,370,847 3,244,093,800

103,246,237,628 (11,689,795,717) (571,773,081,044)

67,475,654,569 (31,461,876,745) (120,625,726,003) (24,388,427,237)

2,147,302,818 (7,042,760,460)

(594,112,472,191)

(79,830,019,514) 844,626,795

(82,188,286,000) 31,781,894,320 5,027,637,903 79,006,400,000

(45,357,746,496)

364,551,888,000 (67,006,400,000)

- 345,296,669,715

(188,238,091,257) (20,850,024,000) 433,754,042,458

(205,716,176,229) 428,744,198,408

200,955,151 223,228,977,330

ITEMS Codes Year 2011 Year 2010 VNd VNd





30Annual Report

NBB CORP 2011

Huong Tra Company Limited (indirectly invested via Quang Ngai Mineral Investment JSC)

• Address: Lot C1-3, Tinh Phong Industrial Zone, Tinh Phong Ward, Son Tinh District, Quang Ngai Province; • Business Registration Certificate: No. 4300340364 dated 21 June 2006, as amended 2nd dated 16 April 2010,

issued by Quang Ngai Department of Planning and Investment;• Principal activities: exploiting and processing mineral; leveling; investing, trading in technology infrastructure;

producing packaging of all kinds...;• Chartered capital: VND 20,000,000,000;• Parent company’s proportion of indirect ownership interest: 89.1%;• Parent company’s proportion of indirect voting power: 99%.

• Address: Lot C1-3, Tinh Phong Industrial Zone, Tinh Phong Ward, Son Tinh District, Quang Ngai Province; • Business Registration Certificate: No. 4300368176 dated 24 December 2007, as amended 4th dated 14 July

2010, issued by Quang Ngai Department of Planning and Investment;• Principal activities: trading in material, installation equipments in construction; trading in gasoline and

related products; surveying and exploiting mineral: land, kaolin, steel, titanium; constructing, designing in industrial and civil field, building transformer station with voltage up to 35kv; planting and tending of forest,...

• Chartered capital: VND 40,000,000,000;• Parent company’s proportion of ownership interest: 90%;• Parent company’s proportion of voting power: 90%.

Quang Ngai Mineral Investment Joint Stock Company

• Address: Lot C1-3, Tinh Phong Industrial Zone, Tinh Phong Ward, Son Tinh District, Quang Ngai Province; • Business Registration Certificate: No. 4300319588 dated 30 July 2003, as amended 6th dated 8 March 2011,

issued by Quang Ngai Department of Planning and Investment;• Principal activities: planting of forest, dairy farming, exploiting timber plantation, processing and carrying

timber; exploiting, processing and carrying mineral (including: marble for export and domestic consumption); Construction in civil works, transportation works (bridge, road, sewer); investing, trading in infrastructure, industrial zone…;

• Chartered capital: VND 10,000,000,000;• Parent company’s proportion of indirect ownership interest: 89.1%;• Parent company’s proportion of indirect voting power: 99%.

An Nhat Tan Company Limited (indirectly invested via Quang Ngai Mineral Investment JSC)

NOTES TO CONSOLIdATEd FINANCIAL STATEMENTS (continued) These notes are an integral part and should be read in conjunction with the accompany financial statements

Associates:

BOT Rach Mieu Company Limited.

• Chartered capital: VND 30,000,000,000;• Parent company’s proportion of ownership interest: 73.66% (direct 67.33%, indirect 6.33% via Hung Thanh Co.,

Ltd.);• Parent company’s proportion of voting power: 74.00% (direct 67.33%, indirect 6.67% via Hung Thanh Co., Ltd.);

• Address: 6A Hamlet, An Khanh Ward, Chau Thanh Dist., Ben Tre Province;• Business Registration Certificate: No. 5502-000031 dated 26 April 2002, and the 1st amendment on 2 June 2010,

issued by Ben Tre Department of Planning and Investment;• Principal activities: trading in transporation construction by the method of BOT, BT, BOO; infrastructure con-

struction of industrial zones..;• Chartered capital: VND 460,028,720,000; • The Company’s proportion of ownership interest: 25%;• The Company’s proportion of voting power: 25%.

Subsidiaries (continued)I.GENERAL INFORMATIONStructure of ownership

NBB Investment Corporation is a member of Civil Engineering Construction Corporation No. 5, was established under Resolution 1584/NQ-HDQT dated 26 May 2005 regarding contribution of capital for establishing NBB Investment Corporation and Decision No. 3666/QD-HDQT dated 12 August 2005 issued by the Board of Management of Civil Engineering Construction Corporation No. 5 on transferring the status quo of equities, assets, liabilities, equipments, officers, workers, economic contracts and business target which are under following up of Civil Engineering Construction No. 5 – Binh Thuan Branch to NBB Investment Corporation .

The Company’s operation is under Business Registration Certificate No. 4103003556 dated 04 July 2005 first issued by the Ho Chi Minh City Department of Planning and Investment and the amendments:

• As amended 1st, dated 8 July 2006;• As amended 2nd, dated 26 March 2007;• As amended 3rd, dated 4 December 2007;• As amended 4th, dated 15 May 2008;• As amended 5th, dated 26 May 2011.

According to the fifth Business Registration Certificate issued on 26 May 2011 by Ho Chi Minh City Department of Planning and Investment, the Company’s chartered capital is of VND 180 billion divided equally 15.4 million common shares and 2.6 million preferred shares, par value is of VND 10,000/share.

The Company’s head office locates at No. 01 Nguyen Van Dau Street, Ward 5, Phu Nhuan District, Ho Chi Minh City.

The Company’s member entities are as follows:

Branches: NBB Investment Corporation - Binh Thuan Branch Address: 47 Tran Hung Dao St., Phan Thiet City, Binh Thuan Province NBB Investment Corporation - Tay Nam Branch Address: B17 - 19 Commercial Center, Ward 3, Bac Lieu Town, Bac Lieu ProvinceNBB Investment - Central Region Branch Address: 54 Street10, Ward 8, Tuy Hoa City, Phu Yen Province NBB Investment - North Branch Address: Group 5, A9 Area, Ha Long road, Bai Chay Ward, Ha Long City, Quang Ninh Province Subsidiaries:

Hung Thanh Construction - Trading - Service - Production Co., Ltd.

• Address: 01 Nguyen Van Dau St., Ward 5, Phu Nhuan Dist., Ho Chi Minh City;• Business Registration Certificate: No. 4102003918 dated 1 March 2001, as amended 9th dated 23 December 2010,

issued by Ho Chi Minh City Department of Planning and Investment,...• Principal activities: industrial construction, road projects , civil engineering works;• Chartered capital: VND 41,200,000,000;• Parent company’s proportion of ownership interest: 95%;• Parent company’s proportion of voting power: 95%.

NOTES TO CONSOLIdATEd FINANCIAL STATEMENTS These notes are an integral part and should be read in conjunction with the accompany financial statements

• Address: Lot G, Road 10, Hoa Khanh Industrial Park, Lien Chieu Dist., Da Nang City;• Investment Certificate: No. 32221000105, dated 31 October 2008, issued by Da Nang Head of the Management

Board of Industrial and Export Processing;• Principal activities: manufacturing and trading in all kinds of filters for automobile,…

NBB Industry Joint Stock Company





32Annual Report

NBB CORP 2011

Iv. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

The significant accounting policies, which have been adopted by the Company in the preparation of these consolidated financial statements, are as follows:

Estimates

The preparation of financial statements in conformity with Vietnamese Accounting Standards, Vietnamese Accounting System and prevailing accounting regulations in Vietnam 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 financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

Basis of consolidation

The consolidated financial statements incorporate the financial statements of the Company and enterprises controlled by the Company (its subsidiaries) for the year ended 31 December 2011. 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.

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 appropriate.

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.

All inter-company transactions and balances between group enterprises are eliminated on consolidation.

Minority interests in the net assets of consolidated subsidiaries are identified separately from the Company’s equity therein. Minority interests consist of the amount of those interests at the date of the original business combination and the minority’s share of changes in equity since the date of the combination. Losses applicable to the minority in excess of the minority’s interest in the subsidiary’s equity are allocated against the interests of the Company except to the extent that the minority has a binding obligation and is able to make an additional investment to cover the losses.

As at 31 December 2011, the Company has five (05) subsidiaries. The consolidated financial statements are prepared on the basis of single financial statements of the above subsidiaries.

Business combinations

Enterprises are considered the Company’s subsidiaries where the Company took over control power. The control power is established where the Company has over 50% voting power to govern financial and operating policies at the investee enterprises.

On acquisition, the assets and liabilities and contingent liabilities of a subsidiary are measured at their fair values at the date of acquisition. Any excess of the cost of acquisition over the fair values of the identifiable net assets acquired is recognised as goodwill. Any deficiency of the cost of acquisition below the fair values of the identifiable net assets acquired is credited to profit and loss in the period of acquisition.

The interest of minority shareholders is initially measured at the minority’s proportion of the net fair value of the assets, liabilities and contingent liabilities recognised.


Associates (continued): Tam Phu Investment and Construction Co., Ltd.

• Address: Lot 148B, Ton Duc Thang St., An Son Ward, Tam Ky City, Quang Nam Province;• Business Registration Certificate: No. 4000696585 dated 16 October 2009, as amended 1st dated 11 December

2009, issued by Quang Nam Department of Planning and Investment;• Principal activities: investing, constructing and trading in real estate; surveying geology, terrain of transportation

and civil works, consulting investment and construction of electricity, hospitality services...;• Chartered capital: VND 20,000,000,000;• The Company’s proportion of ownership interest: 49.00%; • The Company’s proportion of voting power: 49.00%.

Operating industry and principal activities of the Company:• Real estate broker. Housing trade (adapted to Clause 1, Article 10 on the Law on Real Estate Business). Construction

works of roads, bridges, ferries, waterways, roads, railways, hydroelectric plants, thermal power plants. Leveling. Building civil works, engineering, building structure.

• Installation of equipment for construction: water, electricity, air conditioning (except for mechanical, electrical plating, recycling waste at the office);

• Interior and exterior works; Electricity production; • Manufacture of ceramic and refractory materials. Manufacturing refractory brick, tile, ceramic for construction; • Production of concrete and cement products, mortars, products from metal, barrels, tanks. Cutting, shaping and

finishing marble; • Business tourist accommodation: hotels, motels, restaurants (not working at the headquarters and the supply of

services to be conducted in parallel with the construction, upgrading and renovation or acquired hotels); • Domestic and international travel; • Training in consultancy, supervision, construction of transportation works; • Vocational Training. Advice on business management. Investment consultancy (except for financial and accounting

consultancy);• Construction of underground or underwater;• Afforestation, cattle breeding, cultivation under farm model (non breeding at the office);• Electricity transmission, distribution and trading;• Quarrying of stone, sand, gravel, clay, kaolin;• Ecological travel (not trading at the office).

II. ACCOUNTING CONvENTION ANd ACCOUNTING PERIOd

Accounting convention

The accompanying consolidated financial statements, expressed in Vietnam Dong (VND), are prepared under the historical cost convention and in accordance with Vietnamese Accounting Standards, Vietnamese Accounting System and prevailing accounting regulations in Vietnam.

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.

Accounting period The Company’s fiscal year begins on 1 January and ends on 31 December.

III. AdOPTION OF ACCOUNTING STANdARdS ANd GUIdANCE

Consolidated financial statements are prepared according to Decision No. 15/2006/QD-BTC dated 20 March 2006 issued by The Ministry of Finance, which is amended and supplemented by Circular No. 244/2009/TT-BTC dated 31/12/2009 The Ministry of Finance.

The Company complies with prevailing Vietnamese Accounting Standards in the preparation and presentation of the consolidated financial statements. The Company applies accounting book in form of general ledger.






34Annual Report

NBB CORP 2011

Tangible fixed assets and depreciation

Tangible fixed assets are stated at cost less accumulated depreciation.

The cost of purchased tangible fixed assets comprises its purchase price and any directly attributable costs of bringing the assets to its working condition and location for its intended use.

Buildings and structures Machineries and equipmentsOffice equipments Motor vehiclesOthers

Other tangible fixed assets in kind of machineries for produciton of pipes are depreciated on capacity method.

Years

05 - 2504 - 0703 - 1406 - 0803 - 08

Intangible fixed assets and amortisation

Intangible fixed assets represent the value of land use right with indefinite lifetime stated at cost; and other intangible fixed assets stated as cost less accumulated amortization.

Investment property

Investment properties, which are composed of land use rights and buildings held by the Company to earn rentals or for capital appreciation or both, are stated at cost less accumulated depreciation. The cost of purchased investment properties comprises its purchase price and any directly attributable expenditures, such as professional fees for legal services, property transfer taxes and other related transaction costs. The costs of self constructed investment properties are the finally accounted construction or development costs of the properties Construction in progress

Properties in the course of construction for production, rental or administrative purposes, or for the purposes not yet determined, are carried at cost. Cost includes professional fees, and for qualifying assets, borrowing costs dealt with in accordance with the Company’s accounting policy. Depreciation of these assets, on the same basis as other property assets, commences when the assets are ready for their intended use.

Investment in securities

Investments in securities are recognised on a trade date basis and are initially measured at cost including directly attributable transaction costs.

At the subsequent reporting dates, investments in securities are measured at cost, less the amount of diminution in value of investments in securities.

Provision for diminution in value of investments in security investments is made in accordance with current prevailing accounting regulations which allow provision to be made for freely traded securities whose book value is higher than market price as at the balance sheet date.

Goodwill

Goodwill represents the excess of the cost of acquisition over the Company’s interest in the net fair value of the identifiable assets, liabilities and contingent liabilities of a subsidiary, associate or jointly controlled entity at the date of acquisition.


Investment in associates

An associate is an entity over which the Company has significant influence and that is neither a subsidiary nor an interest in joint venture. Significant influence is the power to participate in the financial and operating policy decisions of the investee but not control or joint control over those policies.

The results and assets and liabilities of associates are incorporated in these financial statements using the equity method of accounting. Interests in associates are carried in the balance sheet at cost as adjusted by post-acquisition changes in the Company’s share of the net assets of the associate. Losses of an associate in excess of the Company’s interest in that associate (which includes any long-term interests that, in substance, form part of the Company’s net investment in the associate) are not recognised.

Where a group entity transacts with an associate of the Company, unrealised profits and losses are eliminated to the extent of the Company’s interest in the relevant associate.

In the year 2011, The Company has started applying equity method of accounting in preparation of consolidated financial statement on the investment on BOT Rach Mieu Company Limited and has made retroactive adjustment on the share of accumulated losses as at 1 January 2011 amounting of VND 5,728,370,847. Since, in 2011, the associate has been approved by The Ministry of Finance on the depreciation method on revenue basis according to the Company’s desire, accordingly, the Company has already determined reliably profit and losses on the past operating years.

Cash and cash equivalents

Cash 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.

Receivables and provision for doubtful debts

Provision for doubtful debts is made for receivables that are overdue for six months or more, or when the debtor is in dissolution, in bankruptcy, or is experiencing similar difficulties and so maybe unable to repay the debt

Inventories

Inventories are stated at the lower of cost and net realisable value. Cost comprises direct materials and where applicable, direct labour costs and those overheads that have been incurred in bringing the inventories to their present location and condition. Cost is calculated using the weighted average method. Net realisable value represents the estimated selling price less all estimated costs to completion and costs to be incurred in marketing, selling and distribution.

The Company applies perpetual inventory method to account for inventories where the value is determined as follow:

Material, merchandise: unit cost for share out is computed on weighted average inventory method.

Finished goods and work in process: costs of materials and direct labor are allocated based on normal operating capacity.

The evaluation of necessary provision for inventory obsolescence follows current prevailing accounting regulations, which allow provisions to be made for obsolete, damaged, or sub-standard inventories which have a book value higher than net realisable value as at the balance sheet date






36Annual Report

NBB CORP 2011

Revenue recognition (continued)

(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 from services rendered:

Revenue is recognised when the outcome of such transactions can be measured reliably and it is probable that the economic benefits associated with the transactions will flow to the Company. Sales of services are recognised by reference to the percentage of completion of the transaction at the balance sheet date.

Revenue from real estate:

Revenue is recognised where buyers made payments in line with the progress of construction of the Company’s real estate projects. Concurrently, the associated costs are determined also according to the payment progress of buyers. The Company’s Board of Directors believed that when the payments are made on a progress basis, the significant risks and rewards of the ownership of the properties have passed to the buyers.

Interest income is accrued on a time basis, by reference to the principal outstanding and at the interest applicable rate.

Dividend income from investments is recognised when the Company’s right to receive payment has been established.

Construction contracts

Where the outcome of a construction contract can be estimated reliably, revenue and costs are recognised by reference to the stage of completion of the contract activity at the balance sheet date as measured by the proportion that contract costs incurred for work performed to date bear to the estimated total contract costs, except where this would not be representative of the stage of completion.

Variations in contract work, claims and incentive payments are included to the extent that they have been agreed with the customer.

Foreign currencies

The Company applies the method of recording foreign exchange differences in accordance with Vietnamese Accounting Standard No. 10 (VAS 10) “Effects of changes in foreign exchange rates”.. Accordingly, transactions arising in foreign currencies are translated at exchange rates ruling at the transaction date. Foreign exchange differences arising from these transactions are recognised in the income statement.

Monetary assets and liabilities denominated in foreign currencies are retranslated at the rates of exchange prevailing on the balance sheet date. Exchange differences arising from the translation of these accounts are recognised in the income statement. Unrealised exchange gains at the balance sheet date are not treated as part of distributable profit to owners. Borrowing costs

Borrowing costs directly attribute to the acquisition, construction or production of qualifying assets, which are assets that necessarily 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.

All other borrowing costs are recognised in the income statement when incurred.

Provisions

Provisions are recognised when the Company has a present obligation as a result of a past event, and it is probable that the Company will be required to settle that obligation. Provisions are measured at the management’s best estimate of the expenditure required to settle the obligation at the balance sheet date.

Taxation

Income tax expense represents the sum of the tax current payable and deferred tax.


Goodwill (continued)

On disposal of a subsidiary, associate or jointly controlled entity, the attributable amount of unamortized goodwill is included in the determination of the profit or loss on disposal.

Regarding goodwill arising from acquiring Hung Thanh Co., Ltd, the Company amortizes it over the profit making period of 2 projects: Carina Plaza and City Gate Towers. Amortization rare is at 3% of profit after tax of Hung Thanh Co., Ltd.Regarding goodwill arising from acquiring Quang Ngai Mineral Investment JSC (QMI), since the acquired company mainly exploits rock mine, ore, land mine, Titanium, and the early operation years are legal phase of the project, therefore the Company did not amortize goodwill. The Company will amortize goodwill from the second year, from 2011 under straight-line method over 9 years.

Long-term prepayments

Long term prepayments include tools and supplies, pre-operating expenses and other long-term prepaid expenses regarding real estate projects, which do not meet the capitalization condition, are charged to income statement as follows:

- Long-term prepayment as tools and supplies, pre-operating expenses are allocated to income statement under straight-line method;

- Project management expenses, model condo expenses and related non-capitalised borrowing costs regard ing real estate project are allocated to income statement based on ratio between actual and estimate revenue of the project.

Owner’s equity recognition

Owner’s equity is recognised by actual capital contributions of owner.

Share premium is recognised by the difference between larger or smaller than the actual price incurred and the par value of shares issued for the first, issuing additional share or re-issued of treasury shares.

Other capital of the owner recorded in value between the fair value of the property received by or as a legacy after subtracting taxes payable related to these assets. On the other hand, proceeds from joint venture capital contributions are also recognised in this item.

Joint venture capital received from other joint-venture parties undertaking the construction of building without establishing a new legal entity is recognised according to instruction letter of Finance of Minister No. 12563/BTC-CDKT dated 18 September 2007.

Treasury shares are recorded at the actual value of shares issued by the Company then acquired and deducted from equity of the company. The Company does not record profit (or losses) when buying, selling, issuing equity instruments.

Principle on recognition of undistributed profit is the profits (or losses) from the performance business of the Corporation minus (-) income tax expense of any existing business and account adjustments due to retroactive application of accounting policy changes and adjustments retroactive key errors of the previous year.

Principle of make reserve funds, funds from profit after tax based on the charter of the Company and the decision of the Board of Management approved in annual shareholders’ meeting.

Revenue recognition

Revenue from sale of merchandises:

Revenue from the sale of goods is recognised when all five (5) following conditions are satisfied:

(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 owner ship nor effective control over the goods sold;

(c) The amount of revenue can be measured reliably;






38Annual Report

NBB CORP 2011

(a) This account receivable represents the capital contribution of the Company on the high rise apartment project at Cat Lai, District 2, Ho Chi Minh City in the content of an investment cooperation contract between the Company and Mr. Ngo Manh Han. The project has ceased and the Company has sued Mr. Han to the court to claim for the principle of contributed capital and the related cost of capital (Note VII.5). The Company’s BOD believed that the amount would be recovered in a certain manner in future in any kinds.

(b) This amount represents the receivable for capital contribution right on NBB Industry JSC from minority share holders.

(c) This amount represents the advances to Mr. Pham Van Dau for compensation to Binh Chanh Complex Area project under related BCC.

(d) This amount represents the advance to Land Development Center of Ha Long City, Quang Ninh province in order to make the compensation for the Don Dien Ecological Travel Area Project in Ha Long province.

V. 3. Inventories

Raw materialTools and suppliesWork in progress Projects’ construction in progress- North Phan Thiet Trading Center Project- Resident Area at Ward 2 Bac Lieu Province- Thuy San Hill Villa Project-Quang Ninh Province- Resident Area at Son Tinh-Quang Ngai Province- No.1 Hung Vương Trading Center Project, Phan Thiet Province- De Lagi Villa Area Project- BOT Phan Rang - Thap Cham by pass - road- Don Dien Ecological Travel Area Project, Ha Long Province- NBB1 High-rise Apartment- NBB2 High-rise Apartment - NBB3 High-rise Apartment - Binh Chanh Complex Area Project- Carina Plaza High-rise Apartment Project- City Gate Towers High-rise Apartment Project- Office Bulilding of NBB- Ruby Island golf luxury villa projectFinished goodsTotal cost of inventories

31/12/2011 01/01/2011 vNd vNd

4,997,823,140 362,135,973 9,234,443,841

1,864,342,266,861 980,681,694

114,823,036,898 6,324,307,704

99,300,550,701 39,128,250,000 3,324,466,647 7,895,629,585 2,655,617,742

184,885,678,041 499,466,176,889 329,237,902,018 127,372,915,225 231,522,539,008 215,524,556,576

1,533,503,576 366,454,557

12,535,025,664 1,891,471,695,479

2,348,416,985 565,268,048 10,281,049,806

1,585,605,392,398 2,065,755,935

109,971,837,406 5,448,619,857

59,675,953,176 39,128,250,000 2,826,171,273 5,335,484,357 502,332,727

167,128,528,799 435,132,552,455 289,723,645,513 24,683,428,668 231,781,760,740 210,667,567,916

1,533,503,576 -

7,448,707,385 1,606,248,834,622

The value of land use right of some specific projects in the inventory balance of the Company as at 31 December 2011 was pledged and mortgaged as secured to short-term loans, long-term loans as well as long term-debts, as noted in the Note V.16 and V.21.

V.4. Other short-term assets

Other depositsAdvances to construction teamsOther advancesTotal

31/12/2011 01/01/2011 vNd vNd

- 14,542,047,544 180,995,286

14,723,042,830

564,811,230 7,722,670,004 1,011,667,985

9,299,149,219


Taxation (continued)

The tax current payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the income statement 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.

The parent company is obliged to pay corporate income tax at the rate of 25% of taxable income.

Deferred tax is recognised on significant differences between carrying amounts of assets and liabilities in the consolidated financial statements 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 available against which deductible temporary differences can be utilised.

Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability 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 liabilities and when they relate to income taxes levied by the same taxation authority and the Company intends to settle its current tax assets and liabilities on a net basis.

The determination of the tax currently payable is based on the current interpretation of tax regulations. However, these regulations are subject to periodic variation and their ultimate determination depends on the results of the tax authorities’ examinations.Other taxes are paid in accordance with the prevailing tax laws in Vietnam.v. INFORMATION SUPPLEMENTING ITEMS IN THE CONSOLIdATEd BALANCE SHEET

Cash on handCash in bankCash equivalentsTotal

1,714,201,959 16,649,908,972

338,568,462 18,702,679,393

8,074,123,179 215,107,301,451

47,552,700 223,228,977,330

V.1. Cash and cash equivalents 31/12/2011 01/01/2011 VNd VNd

31,000,000,000

- 1,800,000,000

800,000,000 600,000,000 200,000,000 200,000,000

500,000,000 45,168,749,633 315,775,000

- 21,708,519,000

- 1,804,760,000 1,510,507,400 449,683,464 562,721,692 4,574,952,773

109,395,668,962

31,000,000,000

1,982,371,282 1,800,000,000

800,000,000 600,000,000 200,000,000 200,000,000

500,000,000 25,000,000,000 2,000,000,000 150,000,000

- 300,000,000

- - - -

4,286,055,423 67,018,426,705

Mr. Ngo Manh Han (a)People’s Committee of Bac Lieu province- Compensation payments on behalf involving to the Cao Van Lau RoadCapital contribution rights (b)- Mr. Do Xuan Dien- Mr. Nguyen Hong Son- Mr. Tran Van Khiem- Mr. Pham Thanh HungCivil Engineering Construction JSC No. 503Advances for compensation of Binh Chanh Project (c)Mr. Tran Trong DungAdvance for Co Chien Bridge opening ceremonyLand Development Center of Ha Long city (d)Resources and Environment Department of Son Tinh WardLand Development Center of Son Tinh districtPeople’s Committee of Son Tinh townPeople’s Committee of Tinh An Dong townPeople’s Committee of Tinh Tho townOther receivablesTotal

V.2. Other short-term receivable 31/12/2011 01/01/2011 VNd VNd






40Annual Report

NBB CORP 2011

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Trad

e m

ark

licen

seVN

d

4

2,85

7,14

3

2,0

00,0

00,0

00

-

-

2,0

42,8

57,1

43

4

2,85

7,14

3

-

17

0,21

2,76

8

213,

069,

911

-

1,8

29,7

87,2

32

Inve

stm

ent r

ight

on

pro

ject

VNd

30,8

02,5

00,0

00

-

- -

30,8

02,5

00,0

00

-

728,

343,

674

728

,343

,674

30,

802,

500,

000

30,

074,

156,

326

lice

nse

on g

rani

te

ston

e pr

oces

sing

te

chno

logy

VNd

600

,000

,000

-

-

-

6

00,0

00,0

00

574

,999

,976

-

2

5,00

0,02

4

6

00,0

00,0

00

2

5,00

0,02

4

-

Tota

lVN

d

33,

197,

215,

377

2

,000

,000

,000

5,6

47,3

77,6

59

-

40,

844,

593,

036

6

45,9

68,4

64

-

927

,889

,798

1,57

3,85

8,26

2

32,

551,

246,

913

39,

270,

734,

774

NO

TES

TO C

ON

SOLI

dAT

Ed F

INA

NCI

AL

STAT

EMEN

TS (c

onti

nued

)

Thes

e no

tes a

re a

n in

tegr

al p

art a

nd sh

ould

be

read

in co

njun

ctio

n w

ith th

e ac

com

pany

fina

ncia

l sta

tem

ents

Báo cáo thường niên

COST

As at 01/01/2011

AdditionsTransfers from

construction in progressReclassification from

inventoriesAddition due to reclassificationD

isposalsO

ther deductionD

eduction due to reclassificationA

s at 31/12/2011

ACCU

MU

LATEd d

EPRECIATION

As at 01/01/2011

Charge for the yearAddition due to reclassificationD

isposalsD

eduction due to reclassificationA

s at 31/12/2011

NET BO

OK vA

LUE

As at 01/01/2011

As at 31/12/2011

v.5. Tangible fixed assets

Buildings andstructures

vN

d

23,403,655,123 89,996,335

14,572,730,917 73,596,519,265 110,722,727

- (43,553,933)

- 111,730,070,434

5,378,106,270

2,481,325,236 474,991,585

- -

8,334,423,091

18,025,548,853

103,395,647,343

Machinery and

equipment

vN

d

98,022,141,179 23,200,000

635,110,961 -

871,364,163 (1,464,834,655)

- -

98,086,981,648

18,482,460,503 7,831,185,062 760,240,906 (532,803,994)

- 26,541,082,477

79,539,680,676

71,545,899,171

Motor

vehiclesv

Nd

23,795,390,352 - - - -

(1,239,368,100) -

(982,086,890) 21,573,935,362

7,707,474,752 2,191,519,864

568,931 (287,515,881)

(1,228,435,386) 8,383,612,280

16,087,915,600

13,190,323,082

Offi

ceEquipm

entv

Nd

1,593,946,134 113,325,000

- - -

(186,152,849) - -

1,521,118,285

1,268,545,026 249,983,506 7,792,166

(186,152,849) (14,589,293)

1,325,578,556

325,401,108

195,539,729

Others

vN

d

1,197,017,440 - - - -

- - -

1,197,017,440

83,953,570 74,572,748

22 -

(568,931) 157,957,409

1,113,063,870

1,039,060,031

Total

vN

d

148,012,150,228 226,521,335 15,207,841,878 73,596,519,265 982,086,890

(2,890,355,604) (43,553,933) (982,086,890)

234,109,123,169

32,920,540,121 12,828,586,417 1,243,593,610 (1,006,472,724) (1,243,593,610)

44,742,653,814

115,091,610,107

189,366,469,355

NO

TES TO CO

NSO

LIdATEd

FINA

NCIA

L STATEMEN

TS (continued)

These notes are an integral part and should be read in conjunction with the accom

pany financial statements

As at 31 Decem

ber 2011, the cost of tangible fixed assets fully depreciated but still in use was of VN

D 13,434,132,623.





42Annual Report

NBB CORP 2011

This is the provision for diminution in value of shares of Lu Gia Mechanical Electric JSC, where by the book value was higher than the market value at 31 December 2011.

v.11.Provision for diminution in value of long-term financial investments

Year 2010 VNd

Year 2011 VNdProvision for financial investments

As at 01/01/2010AdditionsReversalsAs at 31/12/2010

1,520,000,000 440,000,000

-1,960,000,000

1,250,000,000 270,000,000

- 1,520,000,000

(a)These expenses have been charged to income statement by the proportion of annually actual revenue and the total estimated revenue of the entire project.

(b) The expense stands for cost of Quang Ngai Mineral Investment Company, a subsidiary, for acquiring investment right in 200 plots of land (4,103.94 m2) located in resident area at Son Tinh district, Quang Ngai province. Currently, the subsidiary has transferred the right to Ms. Nguyen Thi Minh Nguyet, therefore, the cost is deferred and allocated to the income statement on a proportion of revenue recognised and total proceeds of the said 200 plots of land.

- 545,454,545 4,601,454,436 3,659,420,021 34,287,333,031 2,327,572,457 150,000,000 7,261,589,483 2,027,495,420 714,812,164 2,390,851,825

57,965,983,382

3,800,000,000 1,454,545,455 5,029,413,127 500,000,000 26,600,479,549 2,203,169,238

- 8,602,000,000

- 30,000,000

2,439,969,880 50,659,577,249

31/12/2011 01/01/2011 VNd VNd

Expenses of issuing bond for City Gate Towers ProjectDeferred cost of trade markDeferred management expense of Bac Lieu Project (a)Pre-feasibility studying expenses of BOT Rach Mieu Bridge (a)Deferred expenses of City Gate Towers Project (a)Sample house expenses for Carina Plaza ProjectExpenses for openning ceremony of Co Chien BridgeInvestment right in resident area at Son Tinh-Quang Ngai Province (b)Deferred pre-establishment expensesDeferred expenses in Mang Mountain MineTools and supplies expensesTotal

v.12. Long-term prepayments

31/12/2011 01/01/2011 Shares Amount Shares Amount vNd vNd Companies’ name

v.10.Other long-term financial investments

Detailed information on other long-term investments as at 31 December 2011 are as follows:

Long-term investment on securitiesBOT Ninh Thuan JSCSaigon Highland Invesment JSCViet Thanh Security JSCLu Gia Mechanical Electric JSCConstruction Consutancy No 533 JSCNhip Cau Dia Oc JSCOther investmentLong-term bank deposit accountTotal

749,413 80,000 175,000 100,000 482,500 238,800

634,413 80,000 175,000 100,000 482,500 238,800

22,402,134,615 7,494,134,615 800,000,000 1,750,000,000 4,500,000,000 5,470,000,000 2,388,000,000

- 29,793,188

22,431,927,803

21,252,134,615 6,344,134,615 800,000,000 1,750,000,000 4,500,000,000 5,470,000,000 2,388,000,000

--

21,252,134,615


31/12/2011 01/01/2011

V.8. Investment property

The Company’s invested properties is the long-term land use right valued 1.6 billion Dong of plot of MPT (19,57), square of 160m2 located at 38/1 Nguyen Son, Phu Tho Hoa Ward, Tan Phu District, Ho Chi Minh city as mapped in the number of 95, 97 (BDC) and the Cerfication of land use right number H00086 issued by The People Committe of Tan Phu District, HCMC dated 8 Jan 2007. The Company plans to sale or rent in the future.

The Company does not present the fair value of the mentioned long-term land use right since there is no reliable information collected from the market in order to determine the fair value of land use right.

Construction of rock mine at TazonBuilding Da Den Hydropower PlantConstruction of Office Building of NBBConstruction of Factory for NBBI JSCConstruction of Exploiting Area at Mang MountainConstruction of Rock Grinding Factory at Tho Bac MineConstruction of Lot C1-4 Tinh Phong IDZConstruction of flood passby for Tinh An Dong Land MinePublic facility works at Carina ApartmentConstruction of Tinh Hiep Rock MineConstruction of Mo Duc Titanium MineConstruction of Tra Bong Mineral Water MineTotal

V.7. Construction in progress 31/12/2011 01/01/2011 VNd VNd

1,519,255,865 30,455,613,026

- - - -

4,000,652,486 -

1,243,123,141 92,000,000

11,344,091,795 932,752,473

49,587,488,786

1,502,230,411 27,173,491,725

4,877,949,339 3,107,200,009

104,763,200 3,672,076,119 3,809,510,304

868,180,718 -

92,000,000 4,514,866,290

138,199,894 49,860,468,009

V.9. Investments in associates, joint-ventures

Detailed information on associates and the Company’s voting power rate as at 31 December 2011 are as follows:

BOT Rach Mieu Co., Ltd.Tam Phu Investment & Construction Co., Ltd.Total

BOT Rach Mieu Co., Ltd.Tam Phu Investment & Construction Co., Ltd.Total

Associates’ nameRate

(%)Rate

(%)Amount

VNdAmount

VNd

25%

49%

25%

49%

21,159,639,125 4,253,018,852

25,412,657,977

23,669,609,900 4,035,000,000

27,704,609,900

Detailed investments are as follows:

As at 01/01/2011

vNd

Additional investments

vNd

Profit/(loss) of the Company in

associatesvNd

As at31/12/2011

vNd 23,669,609,900

4,035,000,000

27,704,609,900

3,381,181,309

204,797,215

3,585,978,524

(5,891,152,084)

13,221,637

(5,877,930,447)

21,159,639,125

4,253,018,852

25,412,657,977






44Annual Report

NBB CORP 2011

V.16. Short-term loans and liabilities (continued)

Name of bankTerm and

matunity date Purpose of loan Interest rateCollateral

1. VIB - Sai Gon Branch

2. BIDV - North Sai Gon Branch

12 months from each drawdown

date

12 months from each drawdown

date

Increasing working capital

Increasing working capital

Land use rights residental area at Ward 2, Bac Lieu

Province

Land use rights residental area at Ward 2, Bac Lieu

Province

Granted at each drawdown date and

adjusted within 3 month period

Granted at each drawdown date

and adjusted on a monthly basis

V.17. Tax and amount payable to State Budget

Value added taxCorporate income taxPersonal income taxImport,export taxNatural resources taxOthersTotal

31/12/2011 01/01/2011 vNd vNd

5,703,794,224 33,376,858,185

18,604,410 35,243,751

127,774,719 19,409,695

39,281,684,984

740,334,528 27,338,121,506 53,509,361

- 86,844,607

97,737,245 28,316,547,247

V.19. Other current payables

Social insuranceHealth insuranceTrade union feesUnemployment insuranceShort-term deposit received Payable to construction teamsSaigon Highland Construction JSC.Unpaid dividendDividends payable on preferred stocks (Note V.22)Payable to Mr. Nguyen Viet Nam AnhPayable to maintenance fund of Carina apartmentOther current payablesTotal

V.18. Accrued expenses01/01/2011 VNd

01/01/2011 VNd

31/12/2011 VNd

31/12/2011 VNd

Bonds interest accruedExpense of real estate brokerageInterest expense, other accrualTotal

39,229,166,667 5,357,513,180 1,915,901,916

46,502,581,763

133,279,047 10,395,659

177,245,573 6,229,384

-12,475,903,140

3,062,570,926 2,223,040,000 3,900,000,000 41,123,358

9,787,303,622 721,578,089

32,538,668,798

41,057,789 33,762,383

196,461,898 25,572,850

208,008,010,130 7,740,080,497

- 172,872,000

- 411,858,558

- 997,384,142

217,627,060,247

18,227,666,667 3,270,449,503 286,353,221

21,784,469,391


V.13. deferred income tax

CONSOlIdATEd BAlANCE ShEET

As at 31/12/2011

VNd

As at 01/01/2011

VNd

Charge/(credit) to consolidated profit

for the yearVNd

deferred tax assetsUnrealised profit

deferred tax liabiliesNon-assessable income from selling apartments and land used rights on progress basisUnrealised loss

Net charge to consolidated profit

2,977,470,438 2,977,470,438

35,035,116,677 353,883,440

35,389,000,117

1,983,789,659 1,983,789,659

22,489,390,038 208,578,263

22,697,968,301

993,680,779993,680,779

(12,545,726,639) (145,305,177)

(12,691,031,816) (11,697,351,036)

Deferred tax assets and liabilities have been offset in accordance with the Company’s accounting policy for consolidated financial reporting purposes.

2,400,000,000 222,847,520

2,622,847,520

59.821.904.761 -

(6.892.369.588) 52.929.535.173

16.975.315.000 46.090.683.561 (3.244.093.800)

59.821.904.761

V.14. Other non-current assets

Long-term deposit to Resource and Environment Dept. - Da Den Hydropower plantOther depositsTotal

V.15. goodwill

Opening balanceAdditionsAmortisation to expenses during the yearEnding balance

V.16. Short-term loans and liabilities 31/12/2011VNd

01/01/2011VNd

Short-term loansVIB - Sai Gon BranchBIDV - Binh Dinh BranchViet A Bank - Quang Ngai BranchCurrent portion of long-term debtsBIDV - Binh Dinh BranchBIDV - North Sai Gon BranchAgribank - Da Nang BranchEximbank - Quang Ngai BranchViet A Bank - Quang Ngai BranchCurrent portion of issued bondsTotal

301,845,543,030 99,998,922,857 201,846,620,173

- 602,420,720,859

39,163,208,951 50,000,000,000 6,000,000,000 2,833,511,908 4,424,000,000 500,000,000,000

904,266,263,889

181,339,533,896 84,849,185,301 93,340,447,660 3,149,900,935

1,600,000,000 - - - -

1,600,000,000 -

182,939,533,896

31/12/2011VNd

01/01/2011VNd

31/12/2011VNd

01/01/2011VNd






46Annual Report

NBB CORP 2011

Information on long-term loans:

1. BIDV - North Sai Gon BranchCredit limit: VND150.000.000.000

2. BIDV - Bình Định BranchCredit limit:VND200.000.000.000 3. Agribank - Da Nang BranchCredit limit:VND34.000.000.000

4. Eximbank - Quang Ngai Branch Credit limit: VND 17,000,000,000

5. Viet A bank - Quang Ngai Branch Credit limit: VND 18,000,000,000

Credit limit: VND 5,000,000,000

3 years with grace period of 2 years

from 2009

3 years with grace period of 2 years

from 2009

3 years with grace period of 1 year

from 2009

Due date falls in year 2013



Invesment on NBB3 project for

compensation and infrustructure

Invesment on residental area at

Son Tinh districtQuang Ngai

province

Import of

machinaries and equiptments for

manufacturing automobile oil

filters

Finance Son Tinh residental area

project and Tho Bac rock mine

Purchase ofmachineries and

equipments usingfor Son Tinh

residental area project

Construction of

Granite stone processing

factory - phase 1,2.3

Land use right of NBB3 project

Land use rights

of residental area at Ward 2, Bac Lieu Province

Entire of machineries and factory producing

automobile oil filters

Entire of properies

of Tho Bac rock mine at Tinh Tho, Son Tinh district

Assets used for

Son Tinh Residential Area

Assets used for Granite stone

processing factory

Interest of 12 month personal term deposit (in arrears) plus

3.5% p/a but not exceed 150% base rate stated by

SBV at a specific time







Floating accordingto regulation of the Bank at

a specific time

Floating accordingto regulation of

the Bank at aspecific time

Floating according toregulation of the Bank at a

specific time

Name of bankTerm and

matunity date Purpose of loan CollateralInterest rate

vNd

The payment schedule for the issued bonds 31/12/2011 01/01/2011 VNd VNd

Within one yearIn the second yearfrom the third to fifth year inclusiveTotal

500,000,000,000 150,000,000,000

- 650,000,000,000

- 500,000,000,000

200,000,000,000 700,000,000,000


V.21. long-term loans and liabilities (continued)

The opening balance of short-term deposit received is the deposit of VND 208 billion for share purchasing as agreement between Beira Co. Ltd., and the Company in which the Company will issue 2,600,000 shares to Beira Co. Ltd., with the price of VND 80,000 per share. This amount was released in Jan 2011 after the Company had finished all procedures to increase chartered capital from VND 154 billion to VND 180 billion.

01/01/2011 VNd

31/12/2011 VNd

V.20. Other non-current payables

HCMC Infrastructure Investment JSCDeposit from customer for buying land use rightContribution from construction teams for purchasing equipmentLong-term deposit receivedTotal

- -

5,875,730,138 3,903,152,000

9,778,882,138

10,000,000,000 34,183,159,000 5,258,539,227 4,011,512,000

53,453,210,227

V.21. long-term loans and liabilities 31/12/2011 01/01/2011 VNd VNd

long-term loansBIDV - North Sai Gon BranchBIDV - Binh Dinh BranchAgribank - Da Nang BranchEximbank - Quang Ngai BranchViet A Bank - Quang Ngai Branch

long-term debtsIssued bonds

Current portion of long-term debts (Note V.16)

Total

265,946,101,910 106,076,207,200 117,489,626,854 31,000,000,000 4,250,267,856 7,130,000,000

650,000,000,000 650,000,000,000

(602,420,720,859)

313,525,381,051

198,128,411,432 101,322,507,200 41,802,795,819 34,000,000,000 9,449,108,413 11,554,000,000

700,000,000,000 700,000,000,000

(1,600,000,000)

896,528,411,432

The payment schedule for long-term loans:

Within one yearIn the second yearfrom the third to fifth year inclusiveTotal

102,420,720,859 102,885,964,899 60,639,416,152

265,946,101,910

90,534,265,273 46,656,772,473 60,937,373,686

198,128,411,432

31/12/2011 01/01/2011 VNd VNd

V.19. Other current payables (continued)






48Annual Report

NBB CORP 2011

Báo

cáo

thườ

ng n

iên

V.22

Ow

ner’s

equ

ity

a. M

ovem

ent i

n ow

ner’s

equ

ity

Paid

in c

apit

al

vN

d

As

at 0

1/01

/201

0Pr

ofit f

or th

e ye

arCa

pita

l con

tribu

tions

from

join

t ven

ture

Refu

nd o

f cap

tial t

o jo

int v

entu

reIs

suan

ce o

f tre

asur

y sh

ares

Fore

ign

exch

ange

diff

eren

ceO

ther

add

ition

Bonu

s fu

nd ra

isin

g at

sub

sidi

arie

sA

ppro

pria

tion

of fu

nds

Profi

t dis

trib

utio

nD

ivid

end

paid

Rem

uner

atio

n fo

r BO

M &

BO

CO

ther

ded

uctio

nsA

s at

01/

01/2

011

Profi

t for

the

year

Capi

tal c

ontr

ibut

ions

Expe

nse

for i

ssui

ng s

hare

sBo

nus

fund

rais

ing

at s

ubsi

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ies

App

ropr

iatio

n of

fund

sD

ivid

end

divi

sion

Div

iden

d of

pre

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hare

sRe

mun

erat

ion

for B

OM

Rem

uner

atio

n fo

r BO

CO

ther

ded

uctio

nsA

s at

31/

12/2

011

154

,000

,000

,000

-

-

-

-

-

-

-

-

-

-

- -

154,

000,

000,

000

-

26

,000

,000

,000

-

-

-

-

-

- - -

180

,000

,000

,000

201

,376

,625

,200

-

-

-

20,3

60,8

09,9

20

-

-

-

-

-

-

- -

221,

737,

435,

120

-

182

,000

,000

,000

(2,5

51,0

00,0

00)

-

-

-

-

- - - 4

01,1

86,4

35,1

20

15

0,00

0,00

0,00

0

- 1

12,3

40,2

32,0

00

(67,

006,

400,

000)

-

-

-

-

-

-

-

- -19

5,33

3,83

2,00

0

-

5,4

28,0

00,0

00

-

- -

-

- -

-

-

200,

761,

832,

000 (2

6,83

3,86

5,51

7)

-

-

-

19,9

42,8

46,0

80

-

-

-

-

-

-

- - (6

,891

,019

,437

)

-

-

-

- -

-

- -

-

-

(6,8

91,0

19,4

37) (1

35,3

03,1

02)

-

-

-

-

135

,303

,102

-

-

-

-

-

-

-

-

-

-

-

- -

-

- -

-

-

-

63,

477,

728,

497

-

-

-

-

-

-

-

50,

000,

000,

000 -

-

- -

113,

477,

728,

497 - - - - - - - - - -

113,

477,

728,

497

8,

995,

183,

501

-

-

-

-

-

-

- 6

,250

,000

,000

-

-

-

- 15

,245

,183

,501

-

-

-

- 2,

754,

816,

499

- - -

-

- 18

,000

,000

,000

56,1

24,9

01,3

67

115

,884

,962

,872

-

-

-

-

30,

964,

620

(298

,846

,190

)(6

8,75

0,00

0,00

0) (1

5,10

0,00

0,00

0)(2

0,80

0,02

4,00

0)

(9

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(1

8,00

0,00

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6,17

3,95

8,66

9

69,5

90,2

80,2

14

-

-

(8

57,8

45,1

63)

(9,7

54,8

16,4

99)

(24,

416,

960,

000)

(3,

900,

000,

000)

(1

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,000

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)

(5

30,0

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00)

(3

0,00

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4,83

4,61

7,22

1

607,

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269,

946

115,

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962,

872

112,

340,

232,

000

(67,

006,

400,

000)

40,3

03,6

56,0

00

135,

303,

102

30,9

64,6

20

(298

,846

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)(1

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Information on bonds issued:

* Issuing bonds in the first series: • Kind of securities: unconvertible and secured bonds• Par value: VND 1,000,000,000 (one billion VND).• Quantity: 300 bonds;• Form: booking bonds;• Term: 03 years; since 4 August 2009• Interest Payment: annual payment on settlement date;• Original payment: once at maturity;• Interest rate: 11.5% per year. In following years, interest rate is calculated by average interest of VND saving term of

12 months (in case, Banks doesn’t publish VND saving interests in term 12 months in arrear, the company can use the interest for deposits mobilization with the same term) announced at Main Transaction Offices of four Commercial Banks in Hanoi, includes: Agribank, BIDV (Main Transaction Office I), Vietinbank (Main Transaction Office I), Vietcombank (Main Transaction Office I) on the date bond interest is annually confirmed + 3.5 % p/a margin on the date of interest counted for the following year. The date when interest rate is granted is determined in 7 working day period prior to interest payment date. Interest payment is made per annum in arrears.

• Purpose: to finance capital for City Gate Towers project.• Warranties: land use right of Carina Plaza

* Issuing bonds in the second series:• Kind of securities: unconvertible and secured bonds• Par value: VND 1,000,000,000 (one billion VND)• Quantity: 350 bonds;• Form: booking bonds;• Term: 250 bonds expired in 3 years since 24 December 2009, 150 bonds expired in 4 years since 24 December 2009;• Interest Payment : paid once for 06 months.• Original payment: once at maturity;• Interest rate: 14.5% per annum for first 6 months of issuing. The following months, interest will be floating with

adjustment in every 6 months at VND saving rate in 12 months + 4.0% per annum margin of VIBank, Sai Gon branch;

• Warranties: the land use rights of Diamond Riverside High-rise Apartment Area;• Purposes: to finance capital for three projects of Diamond Riverside High-rise Apartment Area, NBB Garden II High- rise

Apartment Area, Binh Chanh Complex Building.


V.21. long-term loans and liabilities (continued)





50Annual Report

NBB CORP 2011

d. dividend Year 2011

vNd Year 2010

vNd

Dviđen payment 24,416,960,000 20,800,024,000

VI. INfORMATION SUPPlEMENTINg ITEMS IN ThE CONSOlIdATEd INCOME STATEMENT

1. Revenue Year 2011 vNd

Year 2010 vNd

Sales of merchandise and servicesSales of merchandise and services renderedSales from transferring of land use rightsSales from construction contract, manufacturing pipesSales from trading appartmentsSales deductionsSales rebatesSales returnNet sales of merchandise and services

420,571,027,860 28,199,035,546 97,563,467,229 91,038,609,976 203,769,915,109 7,786,326,183

- 7,786,326,183

412,784,701,677

485,282,350,196 50,405,979,698 91,040,325,368 64,487,677,749 279,348,367,381 883,267,979

380,000 882,887,979

484,399,082,217

3. Financial income

2. Cost of salesYear 2011

vNd Year 2010

vNd

Cost of goods sold and services renderedCost of land use rights transferedCost of construction contracts and pipesCost of appartment soldTotal

29,293,709,442 56,269,964,065 80,564,954,774 142,933,817,118

309,062,445,399

49,248,277,697 47,031,246,939 65,939,227,212 201,155,104,073

363,373,855,921

Year 2011 vNd

Year 2010 vNd

Dividend and profit dividedGain from tranfering stocks in subsidiariesGain from tranfering stocks in associatesInterest from stocks, bonds, promissory notes, billsInterest from bank accounts and lendingsCharged interest from customers due to late paymentGain from tranfering capital contribution right on projectsRealised foreign exchange gainOther financial income:Total

801,513,230 -

10,000,000,000 -

2,971,725,937 2,607,216,736

37,184,640,000 18,193,068 3,382,080,284

56,965,369,255

679,637,011 1,472,067,099 7,160,000,000

8,750,000 2,536,495,668 1,893,747,731 79,006,400,000

- -

92,757,097,509


v.22 Owner’s equity (continued)

If the total profit after tax in 2011 and 2012 is less than a half of VND 345 billion, the holder of preferred shares is entitled to exercise the option that the Company would repurchase the entire preferred shares at the price of selling price mul-tiple by quantity of preferred shares hold, plus accumulated unpaid dividends.

The holder of preferred shares are entitled to cumulative cash dividends and will receive annually at fixed amount of VND 1,500 VND per preferred share since 2011.

v.22 Owner’s equity (continued)a. Movements in Owner’s equity

During the year, the Company has finished the capital increase from 154 billion to 180 billion by individually issuing shares to strategic shareholder.

Other owner’s capital increasing during the year represents the contribution according to jointly investment contract between Nam Bay Bay Investment Corporation and Mr. Pham Van Dau on NBB II project as noted in the supplemented information for consolidated cash flow statement.

According to the resolution of Annual Shareholders’ Meeting of 2010 dated 25 April 2011, the Company decided to pay dividend in 2010 in cash at a rate of 16% (VND 1,600 per share) to shareholders holding ordinary shares. In which, actually paid dividend in cash as at 31 December 2011 was of VND 22,316,392,000 and unpaid dividend was of VND 2,100,568,000 as as presented in “Other current payables” on balance sheet (coded 319).

The dividend on preferred shares was recognized within the year as an account payable to strategic shareholder of VND 3,900,000,000 according to the commitment between the Company and the investor.

b. details of Owner’s equity31/12/2011

vNd 01/01/2011

vNd

Investment captial of the StateInvestment captial of other ownersTotal

10,500,000,000 169,500,000,000

180,000,000,000

10,500,000,000 143,500,000,000

154,000,000,000

c. Treasury shares 31/12/2011

shares 01/01/2011

shares

Shares authorised to be issuedShares issued and fully paid+ Ordinary shares+ Preferred shares Treasury shares+ Ordinary shares held by the Company+ Preferred sharesOutstanding shares+ Ordinary shares+ Preferred shares Par value per share: VND 10,000

18,000,000 18,000,000 15,400,000 2,600,000 139,400 139,400

17,860,600 15,260,600 2,600,000

15,400,000 15,400,000 15,400,000

- 139,400 139,400

15,260,600 15,260,600

-

The Company’s preferred shares are redeemable convertible preference shares. Preferred shares are eligible to be converted into ordinary shares after 1 year from the date of issuance at a rate of one preferred share for one ordinary share.

Maturity date of the preferred shares is 2 years from the date of issuance.

The shareholder of preferred shares is assured on the total profit after tax and after minority interests which have been audited (excluding extraordinary income and loss) among 2 fiscal years 2011 and 2012 at the minimum of VND 345 billion, specified as follows:

If the total profit after tax in 2011 and 2012 is less than VND 345 billion, the holder of preferred shares is entitled to request the Company refund to the shareholder in cash to by the rate of decrease based on the quantity of preferred shares hold at maturity date.

If the total profit after tax in 2011 and 2012 is more than VND 345 billion, the holder of preferred shares will make an extra payment in cash to the Company by the rate of increase based on the quantity of preferred shares hold at maturity date, but the payment would not exceed VND 5,000 per share.






52Annual Report

NBB CORP 2011

Year 2011 vNd

Year 2010 vNd

Profit before taxAdjustments to increasingNon-deductible expensesNon-taxable losses in current year carried forward to subsequent yearOther non-deductible expensesRevenue from sales of land use rights and apartments recognised in prior year but was taxable in the current yearCost of sales of land use rights and apartments recognised in prior year but was taxable in the current yearGoodwill amortisationsShare of loss from an assossiateIntra-group unrealised profitAdjustments for decreasing taxable incomeNon-assessable incomeDividend receivedOther non-assessable incomeRevenue from sales of land use rights and apartments recognised in the current year but was carried for taxable in subsequent yearCost of sales of land use rights and apartments recognised in the current year but was carried for taxable in subsequent yearNon-taxable loss carried forward from prior yearAssessable incomeCurrent corporate income taxAdvance payment of CIT at 2% on progress payment of buyersAdvance of CIT at 2% paid in previous years offset in the current yearCorporate income tax at rate 25%Surplus payment of corporate income tax Deduction of corporate income tax Total of current corporate income tax

102,492,370,013

3,170,408,940 17,173,604,964 1,621,352,320

15,522,735,979

(10,893,034,487)

6,892,369,588 5,877,930,447 3,393,502,406

(801,513,230) -

(266,704,919,220)

195,739,877,069 -

73,484,684,789 4,348,563,247

(310,454,720) 18,371,171,197 206,365,685

(676,273,058) 21,939,372,349

163,630,071,083

720,557,061 14,899,509,492

- 64,360,512,326

(36,668,630,124)

3,244,093,800

5,728,370,847 3,223,548

(1,174,465,818) (679,637,011) (1,500,000,000)

(289,439,627,761)

215,645,600,961 (2,038,056,117)

136,731,522,286 6,080,629,556

(1,287,210,247) 34,182,880,572

6,747,919 -

38,983,049,465

9. Basic earnings per share Year 2010 vNd

The Company’s shareholders’ profit after taxDividend for shareholders who hold preferred stocksProfit for shareholders who hold ordinary stocksWeighted average number of ordinary stock for the purposes of basic earnings per share during the periodBasic Earnings per share

115,884,962,872 -

115,884,962,872 15,122,436

7,663

69,590,280,214 3,900,000,000

65,690,280,214 15,260,600

4,305

Year 2011 vNd

vII. OTHER INFORMATION1. Non-cancelable commitments

According to BCC no. 05/HD-HTDT dated 3 March 2008 between Transport Engineering Consulting Joint Stock Company No. 533 and NBB Investment Corporation on jointly investing in Tam Phu residential area in Tam Ky City, Quang Nam Province. The Company committed to contribute 49% of investment capital, both parties may be changed due to some specific circumstance but the mentioned contribution rate is fixed.

According to BCC No. 596A/2009/HD-HTDT dated 26 October 2009 between Mr. Pham Van Dau and NBB Investment Corporation on jointly investing in Binh Chanh Complex Building, the Company committed to contribute VND 315 billion equivalent to 70% of investment capital on compensation and legal phase, in the next phase of construction, both Parties would agree a contribution rate after the technical design, total budget of construction and other related expenses have been approved.


8. Corporate income tax (continued) Year 2011 vNd

Year 2010 vNd

Interest expense Cost of shares on subsidiaries, associates soldProvision for decline in value of long-term investmentsSelling fee of investment securitiesUnrealised foreign exchange lossOther financial expenseTotal

11,226,104,184 -

440,000,000 9,800,000 228,824,542 7,459,057,409

19,363,786,135

5,535,987,681 520,594,989 270,000,000 16,121,462

- 7,509,736,653

13,852,440,785

5. Other income Year 2011 vNd

Year 2010 vNd

Proceed from disposal of fixed assetsProceed from disposal of tools and suppliesProceed from using pipesProceed from contract violationProceed from management fee on real estateProceed from sale of produciton scrapsOther incomeTotal

2,083,599,128 40,742,727 27,057,526 525,217,639 537,466,047 285,343,274 288,924,760

3,788,351,101

844,626,795 35,442,727 211,580,018

1,533,789,643 - -

81,625,051 2,707,064,234

6. Other expenses Year 2011 vNd

Year 2010 vNd

Net book value of disposed fixed assetsCarrying value of disposed tools and suppliesCompensation and fines for administrative violationsExpenditure for shareholders’ meetingFines for late tax paymnent and tax arrearsOther expenseTotal

1,883,882,880 -

33,889,137 72,557,113 703,841,670 242,261,720

2,936,432,520

7,519,590,350 87,737,180 477,569,180

- -

228,136,906 8,313,033,616

7. Gains/(Losses) from associates, joint ventures Year 2011 vNd

Year 2010 vNd

Tam Phu Investment and Construciton Co., Ltd.BOT Rach Mieu Co., Ltd.Total

13,221,637 (5,891,152,084)

(5,877,930,447) (5,728,370,847)

(5,728,370,847)

8. Corporate income tax

Current corporate income tax expense is based on the operating results during the period. Corporate income tax concludes amount payable for normal business and advance payment for real estate activity.

Quang Ngai Mineral Investment Joint Stock Company is entitled to a corporate income tax exemption for two (02) years from the first year of making taxable income and a reduction 50% for the following two (02) years since 2010 according to the preferential terms of CIT for new established business under the projects at areas among the list of areas with difficulty in social and economic conditions in accordance with the prevailing corporate income tax law.

An Nhat Tan Company Limited is entitled to a preferential tax rate of 15%.

For real estate projects arising revenue on completion progress of construction, corporate income tax is temporarily calculated by 2% of total actual proceeds. When the projects are completed, the Company would finalise corporate income tax to determine its tax obligation.

4. Financial expenses






54Annual Report

NBB CORP 2011

Ope

rati

ng re

sult

s of

seg

men

ts a

re a

s fo

llow

s:

Busi

ness

act

ivity

segm

ent:

Real

est

ate

vN

dIt

ems

Cons

truc

tion

vN

dM

inin

g v

Nd

Aut

o sp

are-

part

sv

Nd

Oth

ers

vN

dEl

imin

atio

nsv

Nd

Tota

lv

Nd

Reve

nue

Exte

rnal

cus

tom

ers

Inte

r-se

gmen

tTo

tal

Cost

of s

ales

Exte

rnal

cus

tom

ers

Inte

r-se

gmen

tTo

tal

Segm

ent g

ross

pro

fit

29

3,68

1,32

5,24

6 -29

3,68

1,32

5,24

6

199,

203,

781,

183

-

199,

203,

781,

183

94,4

77,5

44,0

63

89,6

77,3

23,9

74

-

89,6

77,3

23,9

74

79,2

27,7

78,1

46

-

79,2

27,7

78,1

46

10,4

49,5

45,8

28

21,9

45,9

71,6

98

9,88

8,16

8,35

6 31

,834

,140

,054

18,9

85,2

41,2

33

6,55

4,81

4,64

0 25

,540

,055

,873

6,

294,

084,

181

5,28

7,73

8,18

5

- 5,

287,

738,

185

8,69

2,81

5,30

3

-

8,69

2,81

5,30

3 (3

,405

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,118

)

2,19

2,34

2,57

4 4,

161,

542,

365

6,35

3,88

4,93

9 2,

952,

829,

534

272,

831,

318

3,22

5,66

0,85

2 3,

128,

224,

087

-(1

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9,71

0,72

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9,71

0,72

1)

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)(6

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,645

,958

) (7

,222

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)

412,

784,

701,

677

- 41

2,78

4,70

1,67

7 30

9,06

2,44

5,39

9

-

309,

062,

445,

399

103,

722,

256,

278

Báo

cáo

thườ

ng n

iên

NO

TES

TO C

ON

SOLI

dAT

Ed F

INA

NCI

AL

STAT

EMEN

TS (c

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)

Thes

e no

tes a

re a

n in

tegr

al p

art a

nd sh

ould

be

read

in co

njun

ctio

n w

ith th

e ac

com

pany

fina

ncia

l sta

tem

ents

3. S

egm

ent i

nfor

mat

ion

(con

tinu

ed)

According to BCC No. 610/2009/HD-HTDT dated 05 November 2009 between Mr. Pham Van Dau and NBB Investment Corporation on jointly investing in High-rise Apartments at Binh Chanh (NBB II), the Company committee to contribute the capital of VND 322,397,600,000 equivalent to 70% of investment capital on the compensation and legal phase, in the next phase of construction, both Parties would agree a contribution rate after the technical design, total budget of construction and other related expenses have been approved.

According to BCC No. 20/2010 dated 29 June 2010 between Saigon Infrastructure Real Estate Investment Joint Stock Company (SII) and NBB Investment Corporation on jointly investing in Diamond Riverside High-rise Apartment, the Company committed to contribute 20% of investing capital on the project.

According to BCC No.29/2010/HĐHTĐT dated 12 October 2010 between the Company and Tram Nam Land Investment JSC on co-investment in building and trading the project of residential house at Ward 2, Bac Lieu town, Bac Lieu province, the Company committed the right to Tram Nam Land Investment JSC to contribute capital on building and trading on houses of third party on 206 land grounds of the project

According to BCC No. 30/2010/HĐHTĐT dated 12 October 2010 between the Company and Dong Tay Real Estate JSC on co-investment in building and trading the project of residential house at Ward 2, Bac Lieu town, Bac Lieu province, the Company committed the right to Dong Tay Real Estate JSC to contribute capital on building and trading on houses of third party on 50 land grounds of the project

3. Segment information

For management purposes, the Company is organized into different business units. Accordingly, the primary segment reports based on the Company’s products and services, the secondary segment reports based on the geographical area where the Company provides goods and services.

Segment reports’ results include items that are directly allocated to one segment as well as to more than one segment on a reasonable basis. Items are not included in segment reports such as: assets, liabilities, financial income, financial expenses, selling expenses, general and administrative expenses, other profit, losses and corporate income tax.

a. Business activity segment report – primary segment report

The Company’s operating segments include: real estate, construction, mining, auto spare-part production and other activities. The Company reports in the five business segments above.

Principle activities of five business segments are as follows:- Real estate: developing apartment and residential area for sale and lease- Construction: road construction and other construction activities- Mining: exploitation of soil, rock, gravel, construction materials- Auto spare-part production: manufacturing of auto oil filters- Other activities: pipes production, house leasing, cars leasing, and apartment management service.

b. Geographical segment report – secondary segment report

The Company’s operating business are conducted at geographical areas as follows: Ho Chi Minh city, Bac Lieu province, Binh Thuan province Da Nang city, Quang Ngai province.

2. Related parties’ information

Capital contribution to Tam Phu Investment & Construction Co., Ltd.Capital contribution to BOT Rach Mieu Co., Ltd.BOM & BOC’s remuneration

RelationshipYear 2011

vNd

AssociateAssociate

BOM, BOC

204,797,215 3,381,181,309 2,000,000,000


1. Non-cancelable commitments (continued)





56Annual Report

NBB CORP 2011

4. Comparative figures

Certain reclassifications have been made to the prior year’s figures to enhance their comparability with the current year’s presentation as follows:

a. Reclassifications of opening balance

An amount of VND 17,478,408,180 of bonds interest represented in Inventories (coded 141) was reclassified to item Long-term prepayment (coded 261). As a result, Inventories balance as at 1 January 2011 was decreased by an amount of VND 17,478,408,180 and balance of Long-term prepayment was increased by a corresponding amount on balance sheet.

An amount of VND 2,403,000,000 including the deposit to Phu Yen Resource and Environment Department as a guarantee for Da Den hydro power project and other long term deposit represented in item Other current assets (coded 158) was reclassified to item Other non-current assets (coded 268). As a result, Other current assets balance as at 1 January 2011 was decreased by an amount of VND 2,403,000,000 and Other non-current assets balance was increased by a corresponding amount on balance sheet.

A reclassification was made on the Investment Right on City Gate Towers represented on Long-term prepayment (coded 261) and also restated such item in Intangible fixed assets (coded 228). As a result, Long-term prepayment balance as at 1 January 2011 was decreased by an amount of VND 30,802,500,000 and Intangible fixed assets balance was increased by a corresponding amount on balance sheet.

Another reclassification was made on the deposit received from construction team 706 for purchasing machineries and equipments of VND 1,126,089,227 represented on Other current payables (coded 319) and also restated such item in Other long-term payables (coded 333). As a result, Other current payables balance as at 1 January 2011 was decreased by an amount of VND 1,126,089,227 and Other long-term payables balance was increased by a corresponding amount on the consolidated balance sheet.

b. Retroactive adjustments

In the reporting period, The Company has made retroactive adjustment to recognised the profit/(losses) in associates, joint-ventures to the consolidated income statement by the reported accumulated losses as at 31 December 2010 of BOT Rach Mieu Co., Ltd. of VND 5,728,370,847. Accordingly, Retained earnings balance (coded 420) and Investment in associates, joint-ventures balance (coded 252) on the consolidated balance sheet as at 1 January 2011 were decreased by an amount of VND 5,728,370,847. Concurrently, the Profit/(losses) from associates, joint-ventures (coded 45) on the Consolidated income statement and on the Consolidated cash flow statement for the year ended 31 December 2010 were decreased by a corresponding amount.

The Company also made retroactive adjustment on interest paid (coded 13) on the consolidated cash flow statement amounting VND 115,089,738,322 regarding capitalised interest paid. The adjustment effected to the movement of inventories (code 10), movement of payables (code 11) and movement of prepaid expenses (coded 12) as follows:


Báo cáo thường niên

3. Segment inform

ation (continued)

NO

TES TO CO

NSO

LIdATEd

FINA

NCIA

L STATEMEN

TS (continued)

These notes are an integral part and should be read in conjunction with the accom

pany financial statements

Geographical segm

ent:

Ho Chi M

inhCity

vN

d

Bac Lieu Provine

vN

d

Binh Thuan Province

vN

d

da N

ang City

vN

d

Quang N

gai Province

vN

dElim

inationsv

Nd

Totalv

Nd

285,860,500,928

3,733,281,655 289,593,782,583 223,169,114,169 8,206,972 223,177,321,141

66,416,461,442

32,846,698,666

- 32,846,698,666 17,236,800,062

- 17,236,800,062 15,609,898,604

4,978,525,637

4,978,525,637 -

3,030,384,870 -

3,030,384,870

1,948,140,767

5,287,738,185

- 5,287,738,185

8,692,815,303 - 8,692,815,303

(3,405,077,118 )

83,811,238,261 10,316,429,066

94,127,667,327 56,933,330,995 6,819,438,986 63,752,769,981 30,374,897,346

-

(14,049,710,721) (14,049,710,721)

- (6,827,645,958)

(6,827,645,958) (7,222,064,763)

412,784,701,677 -

412,784,701,677 309,062,445,399

- 09,062,445,399

103,722,256,278

Items

RevenueExternal custom

ersInter-segm

entTotal

Cost of salesExternal custom

ersInter-segm

entTotal

Segment gross profit





58Annual Report

NBB CORP 2011

c. Summary of reclassifications and adjustments (continued)

ItemsRetroactive

adjustmentsvNd

As restatedvNd

CodesAs presentation

in last yearvNd

ReclassificationsvNd

Extract from the consolidated cash flow statement for the year ended 31 December 2010:

5. Other information

According to the confirmation letter dated 24 December 2010 between the Company and Mr. Ngo Manh Han regarding the debt from a jointly-investment contract and the appendixes, the amount due from Mr. Ngo Manh Han is of VND 33,975,000,000 including the principal and late charge interest. Currently, the Company has sued to People’s Court District 1 to claim for the said debt. According to final resolution of the preliminary court’s judgment No. 69/2011/DS-ST dating 30/09/2011 of the People’s Court of District 1, the court judges that Mr. Ngo Manh Han is responsible to refund to the Company the entire of the above principal and interest penalties for late payment from the date 25/12/2010 to 14/09/2011 of VND 3,516,412,500 with interest rate of 1.125% per month. In additions, the Company also has a contingent asset regarding late payment charge for the period from 14/09/2011 to the preliminary court’s judgment date amounting VND 5,319,275,000 based on the prevailing regulated basic interest.

Regarding the contract of transferring the investment right in Diamond Riverside project signed between the Company and Sai Gon Infrastructure real estate investment joint stock company (SII) on 29 June 2010, the Company is responsible to assure an annual minimum profit after tax arising from the project to SII at the rate of interest in arrears of 12 months deposit of Vietcombank plus 2%. As to 31 December 2011, the estimated minimum profit after tax as committed to SII is of VND 35,853,235,200

Cash flows from operating activitiesLosses from associates, joint venturesIncrease in inventoriesIncrease in account payablesIncrease in prepaid expensesInterest paid

10111213

-

- (704,699,112,836) 67,833,539,859 (13,983,468,565) (5,535,987,681)

5,728,370,847

-

5,728,370,847 (571,773,081,044) 67,475,654,569 (31,461,876,745) (120,625,726,003)

132,926,031,792 (357,885,290) (17,478,408,180)

(115089738322)





4. Comparative figures (continued)

c. Summary of reclassifications and adjustmentsExtract from the consolidated balance sheet as at 1 January 2011:

ItemsRetroactive

adjustmentsvNd

As restatedvNd

ASSETSA. Current assetsInventoriesOther current assets

B. Non-current assetsIntangible fixed assetsInvestments in associates, joint venturesLong-term prepaymentsOther non-current assets

RESOURCESA. LiabilitiesOther current payablesOther long-term payables

B. EquityRetained earnings

Codes

141158

228252

261268

319333

420

As presentation in last year

vNd

1,623,727,242,802 11,702,149,219

2,394,715,377 33,432,980,747

63,983,669,069

219,847,520

218,753,149,474 52,327,121,000

71,902,329,516


(17,478,408,180) (2,403,000,000)

30,802,500,000

(13,324,091,820) 2,403,000,000

1,126,089,227 (1,126,089,227)

-

--

(5,728,370,847)

--

--

(5,728,370,847)

1,606,248,834,622 9,299,149,219

33,197,215,377 27,704,609,900

50,659,577,249

2,622,847,520

217,627,060,247 53,453,210,227

66,173,958,669

Extract from the consolidated income statement for the year ended 31 December 2010:

ItemsRetroactive

adjustmentsvNd

As restatedvNd

CodesAs presentation

in last yearvNd


Losses from associates, joint venturesAccounting profit before taxProfit after taxThe Company’s shareholders’ profit after taxBasic earnings per share

455060

6270

-

169,358,441,930 123,513,934,429

121,613,333,719 8,042

5,728,370,847

(5,728,370,847) (5,728,370,847)

(5,728,370,847) (379)

5,728,370,847

163,630,071,083 117,785,563,582

115,884,962,872

7,663

4. Comparative figures (continued)


-

--

--





60Annual Report

NBB CORP 2011

BRANChES

SOUTHERN WEST BRANCH

Address : B17 – 19 Hoa Binh, Bac Lieu City, Bac Lieu Province Telephone : (84. 781) 3956775 Fax: (84. 781)3956776 Branch Director : NGUYEN VAN PHAT Task and function : On behalf of the company, managing the construction processes and execution phases as well as land bank sales of Commercial Urban Area along Bac Lieu river project .

The project is located in Ward 2, Bac Lieu City, with the total area of over 50.2ha, construction density of 40%, comprising: + 2,007 adjacent house lots;+ Commercial Centre Area; + International school, marina, sport centre, stadium,… Total area for building houses is 23.8ha. Total investment capital is 368 bn VND,100% of which is financed by NBB.The project is in the process of completing, The company has sold out 1,209/2,007 lots.

BINH THUAN BRANCH Address : 47 Tran Hung Dao Street, Phan Thiet City, Binh Thuan Province Telephone : (84. 62) 3833189 – 3833229 Fax: (84. 62) 3833230 Branch Director : TRAN DUC NHAN Task and function : On behalf of the company, involving in marketing and seeking investment opportunities; managing the construction processes and executive phases as well as land bank sales of the projects in Binh Thuan.

Ongoing Projects:

North Phan Thiet Residential and Commercial Centre Area – Binh ThuanThe project covers an area of 41.39ha, with the total investment of 309.3 bnVND and is located in the central of Phan Thiet.The project has completed and reached 100% trading activities; saving up to 7.04% of the investment costs, the net profit after tax is 84.42 bnVND, increasing 162.67% compared with the plan.

Commercial Centre Area in Phan Thiet, Binh ThuanThe projects is located at the intersection of Ton Duc Thang and Hung Vuong Streets, Phan Thiet City, Binh Thuan. Project area is 7,453m2, inc. high-end supermarkets and office for lease. The project has been approved adjustment to the master plan by People’s Committee of Binh Thuan province ,and is under the process of technical design to prepare for construction in 2012.

Construction Stone Exploiting and Processing at Tazon:The project is located in Hong Son Commune, Ham Thuan Bac District, Binh Thuan Province. The exploitation capacity of stone (in form of finished goods) is 70,000m3/năm. Total estimated investment is 7.45 bn VND, 100% of which is financed by NBB. Exploitable time is 20 years. The project has completed all legal documents, and is in the process investment and installation of machinery, equipment.

NBB Garden III High-rise Apartment Area The project is located in Ward 16, Dist 8, HCMC, close to the junction of An Duong Vuong and Truong Dinh Hoi Str. The project’s area is 8.15ha, comprising of 3,749m2 for building adjacent houses, 06 block of apartments and 01 block of office of 03÷28 floors, 54,007m2 for building commercialcentre, 29,084m2 for green park and and full range of convenient facilities such as school, health station, reservoir and 3,500 apartments with an area of 80÷100m2. Total estimated investment is 5,255 bn VND, 100% of which is financed by NBB. The project is completed 95% of compensation plan. PC of District 8 has approved the 1/500 master plan; Ministry of Construction has approved the basic design document. The project is expected to start construction in 2012.

Tan Kien Residential Complex – Binh Chanh The project is located in Tan Kien Commune, Binh Chanh District, HCM City, about 700m away from the intersection of SG-TL Highway and Tran Dai Nghia street. The project covers a total land area of 30.17ha, and is planned to be a complex with all full range of functions, inc. 2,218 units in which 1,550 apartment units, 668 city mansions units, service, commercial areas, elementary school, kindergarten, gym center, and other facilities. Total estimated investment is 830bn VND (stage 1), 70% of which is financed by NBB.The project has finished 83% of compensation and approved the investment policy by PC of HCM City and is implementing other procedures.

BOT Phan Rang – Thap Cham By-pass Road – Ninh ThuanThe project is invested by NBB and CII. It is located in Phan Rang City, Thap Cham, Ninh Thuan Province. Total investment is 548.05bn VND and BOT has 20% capital contribution, which is 109.61bn VND. NBB financed 10% of total BOT capital, equivalent to 10.96bn VND. The project’s pay-back period is 15 years and 7 months.The project is estimated to complete and apply tolling in the second quarter of 2012.

NBB Garden II High-rise Apartment Area The project is located in Tan Kien, Binh Chanh Dist HCMC, contiguous to extended Vo Van Kiet Avenue. Total area is 11.51ha, construction density is under 35%, including a complex of three apartment clusters and commercial centre of 18 floors with 1,904 units; 154 city mansions and full range of public facilities such as green park, gym center, swimming pool, kindergarten, elementary school, etc. Total estimated investment is 7,073 bn VND, 70% of which is financed by NBB. Currently, the project is completed 92% of compensation plan; the project’s location and plan criteria have been offcially accepted by PC of HCMC. PC of Binh Chanh Dist is considering the master plan at the rate of 1/500. The project is expected to start construction in 2013.

hEAd OffICE

OPERATION NETWORK

Address : 01 Nguyen Van Dau Street, Ward 05, Phu Nhuan District, HCMCTelephone : (84. 8) 62 577 577 Fax: (84. 8) 3844 6017

Ongoing Projects:Diamond Riverside High-rise Apartment AreaThe project is located at Vo Van Kiet Avenue, Ward 16, Dist.8. Total area is 4.15ha, including the main work items: 02 blocks of 21÷28 floors, a complex of commercial area and entertainment area 8,800m2, basement 29,400m2, green park and landscape lake 12,000m2, and other convinientfacilities such as: tennis court, swimming pool, gym center, school, kindergarten…Total apartment volumes of the project area 1,470 units, with a unit area is 57÷302 m2. Gross floor area is 227,300m2. This project has total estimated investment amount of 2.675 bn VND, 20% of which is financed by NBB and 80% of which is financed by SII. Currently, the project is in stage of the basic designapproval and expected start to construction in 2012.





62Annual Report

NBB CORP 2011

NORTHERN BRANCH Address : Group 5, Block 9A, Ha Long Street, Bai Chay Ward, Ha Long City, Quang Ninh Telephone : (84. 33) 3511577 Fax: (84. 33) 3511578

Branch Director : NGUYEN QUANG HUNG Task and function : On behalf of the company, involving in marketing and seeking investment opportunities ; managing the construction and sales process of the projects in Ha Long City, Quang Ninh Province and the Northern areas.

Ongoing Projects:

Thuy San Hill Villa Project - Ha LongThe project is located in Bai Chay Ward, Ha Long City, Quang Ninh Province. The project area is 32.18ha, which is situated in tourism area of Ha Long Bay and isdesigned to comprise of luxury villas and resorts combining with a wide range of hotels, restaurants, apartments, commercial service areas, gym center… Total area of villa lots is over 10.3ha, in which an area of a lot is from 200÷500 m2.

Total investment capital is 384 bn VND, 60% of which is financed by NBB. Until 31 December 2011, the project has received the master plan 1/500 adjustment approval by PC of Quang Ninh province, and is undercompensation process. The project will start toconstruction in the third quarter of 2012.

Don Dien Ecological Urban Area – Ha LongThe project is located in Ha Khau Ward, Ha Long City, Quang Ninh Province. The project has total area of 77.15ha, which is designed by Samoo Architect and Engineer company (Korea). The landscape design of this project is shaped as lotus leaves and petals, creating green spaces. Total estimated investment is more than 1.000 bnVND, 60% of which is financed by NBB. Expected completion time will be in 2015. The project is under process land clearance and compensation plan, reached 20%, and is going to the 1/500 master approval.

QUY HOẠCH CHI TIẾT 1/500 KHU NHÀ Ở DÂN CƯ KHU CÔNG NGHIỆP CÁI LÂNTẠI ĐỒI THỦY SẢN PHƯỜNG BÃI CHÁY - THÀNH PHỐ HẠ LONG

BRANChES (continued)

Da Den Granite Quarry - Phu YenIt is located in Hoa My Tay town, Tay Hoa dist., Phu Yen province. The major product is black granite. Total estimated invesment is 16bn VND. The company is exploiting along the construction lines and public service paths of the project.

BRANChES (continued)

Ongoing Projects:

The project is located in Lagi town, Binh Thuan province. Total area is 216.38ha (including 53.21ha residential area, 150.31ha tourism area, 12.95ha transport infrastructure area). The project’s product comprises of high-class resort including:entertainment area, restaurant, hotel, golf courses, high-end villas… Total estimated investment is 1,565 bn VND (stage 1), 100% of which is financed by NBB.

Until 31 December 2011, The project is under the basic design progress and land clearance.The project is expected to start construction in 2012 and put into use in 2016.

De Lagi High-Class Resort combining with Residential Area – Binh Thuan:

CENTRAL BRANCH

Address : 54 Road No.10, Ward 8, Tuy Hoa City, Phu Yen Province Telephone : (84. 57) 3814824 Fax: (84. 57) 3826277 Branch Director : NGUYEN PHUC NGUYEN

Task and function : On behalf of the company, managing the investment and construction of Da Den Hydroelectric plant and the Granite Quarry in Phu Yen; Involving in marketing activities and seeking investment opportunities in Central Region provinces.

Da Den Hydroelectric Plant: It is located in Hoa My Tay Commune, Tay Hoa District, Phu Yen Province. The project scale includes 9MW of machine installation capacity and the average power quantity at 32x106 Kwh/year. Total investment is 238bn VND, 100% of which is financed by NBB. Exploitation time is 30 years. Pay-back period is in 13 years. All legal documents has been finished, the current workload is 25% of the project’s construction value. The project is estimated to begin exploitation in 2013.





64Annual Report

NBB CORP 2011

QUANG NGAI MINERAL INvESTMENT JOINT STOCK COMPANY

Address : Lot C1-3, Tinh Phong Inductrial Zone, Son Tinh Distrist, Quang Ngai. Telephone : (84. 55) 3677778 Fax: (84. 55)3677677

Director : PHAN ANH TUAN Chartered Capital : 40 bn VND (NBB owned 90%)

Task and function : On behalf of the company participating in marketing campaigns and seeking investment opportunities, managing, operating and sales of residential area projects, mineral projects in Quang Ngai and Central Region area. Production and Business Result in 2011: revenue has reached 83.59 bn VND and profit after tax was17.61 bn VND

Hong Ngoc Golf Villa – Quang Ngai (Ruby Island)The project is invested by NBB. It is located in Tinh An commune, Son Tinh district, Quang Ngai province. The project is a small peninsula in the north of Tra Khuc river with an area of 233.4 ha, with exclusive and modern design including international-standardised 18-hold golf course 75ha, marina 27ha, 5-star hotel, high-end villas, and a wide range of facilities. Total estimated investment is 2,800 bnVND, 100% of which is financed by NBB. Expectedcompletion time will be in 1016. The project has been gained the investment approval by People’s Committee of Quang Ngai province ; implementing to build up the detailed plan 1/500.

Titanium Deep-processing Plant The location of this plant is at Tinh Phong Industrial zone Quang Ngai. The mine is located in Mo duc dist, Quang Ngai. Exploitation area is 964.1ha. Exploitation time is 27 years. Exploitation capacity is 518,261 tons. NBB finances 90% of total capital.

Son Tinh Residential Area – Quang Ngai:The project is invested by NBB and authorized for Quang Ngai Mineral Investment Joint Stock Company (a member of NBB) to implement.It is located in Son Tinh town, Son Tinh district, Quang Ngai province. The project’s products are 2,697 lots with the total area 40ha. Total investment amount is estimated 1,205.3 bnVND, 100% of which is financed by NBB. Theexpected completion time will be in 2014. Until 31 Dec 2011 the project has finished the legal documents, the compensation reached about 86.8%, and leveling reached 60% of project area, collecting material volumes such as culverts, tiles, curb reached about 50%. The project has sold out 648/2,697 lots.

SUBSIdIARY COMPANIESSUBSIdIARY COMPANIES

HUNG THANH CONSTRUCTION – COMMERCIAL – SERvICE - MANUFACTURING COMPANY

Address : 01 Nguyen Van Dau Street, Ward 05, Phu Nhuan District, HCM City Telephone : (84. 8)35158250 Fax: (84. 8) 62977270

Director : NGUYEN THANH QUYET Chartered Capital : 41.2 bn VND ( 95% stake owned by NBB) Task and function : On behalf of the company, managing, executing and sales of such projects as Carina Plaza, City Gate Tower at Ward 16, District 8, HCM City and also being the managing company of NBB’s high-rise building projects. Production and Business Result in 2011: revenue has reached 204.60 bnVND and profit after tax was 38.36 bn VND.

City Gate Towers High-rise Apartment Area The project is located at Vo Van Kiet Avenue, Ward 16, Dist 8. Total area 1.93ha, inc. one 12-floor office block, three high-rise apartment blocks of 26÷28 floors, a complex of commercial centre and entertainment area 21,800m2, two basement 16,900m2, a green park 5,100m2, and other facilities such as: tennis court, swimming pool, gym center… Total apartment volumes is 844 units, with a unit area of 85÷183m2. Gross floor area is 146,454.5m2. Total estimated investment is 1,800 bn VND, 95% of which is financed of NBB. Currently, the project is under the construction implementation of foundation and basement. This project is expected to complete and put into use in 2014.

Carina Plaza High-rise Apartment Area The project is located at Vo Van Kiet Avenue, Ward 16, District 8. Total area is 1.94ha, inc. two 14-floor blocks; one 20-floor block; a complex of commercial centre and entertainment area (9,000m2), a basement (11,500m2), a green park ( 9,000m2), and other facilities such as tennis court, swimming pool, … Total apartment volumes of the project is 736 units, with a unit area of 87÷105 m2. The total floor area is 112,298m2. Total investment is 914 bn VND, 95% of which is financed by NBB. Currently, the project has completed and put into use in the third quarter of 2011. 587 out of 736 apartments have been sold out.

Ongoing Projects: Ongoing Projects:





66Annual Report

NBB CORP 2011

HUONG TRA CO., LTd (Indirect investment through QMI Joint Stock Company)

Address : Lot C1-3, Tinh Phong Industrial Zone, Son Tinh Dist, Quang Ngai Province Telephone : (84. 55) 3677778 Fax: (84. 55)3677677 Director : TRAN CONG HIEN

Chartered Capit : 20 bn VND (NBB owned 89.1%) Task and function : On behalf of the company, managing, operating and exploiting Tra Bong Hot Mineral Mine – Quang Ngai

Tra Bong Hot Mineral Mine – Quang NgaiThe project is located in Tra Binh Commune, Tra Bong District, Quang Ngai Province. The main product is natural groundwater which is used in health treatment and bottling. Exploitation area 1,553 km2. exploitation time is permanent. NBB finances 89.1% capital. The project has obtained the exploration license by Ministry of Natural Resources andEnvironment, and approval for mineral reserve by The Mineral Reserves Assessment Committee ; completed the basic design and submitting the exploitation license approval.

NBB INdUSTRIAL JOINT STOCK COMPANY

Address : G Lot, Road No. 10, Hoa Khanh Industrial Zone, Lien Chieu Dist, Da Nang Telephone : (84. 511)3735418 Fax: (84. 511)3735419 Director : NGUYEN TRUC

Chartered Capit : 30 bn VND (NBB owned 67.33%) Task and function : On behalf of the company, managing the operation and sales of Da Nang Auto Part Production Factory in Da Nang City. Production and Business Result in 2011: revenue reached 5.41 bn VND and profit after tax was (15.11) bn VND.

Da Nang Auto Parts Production Factory

Invested by NBB Industrial JSC – A member of NBB.It is located on G Lot, Road No.10, Hoa Khanh industrial zone, Lien Chieu District, Da Nang City. The factorty’s products are oil filters, air filters, fuel filters of automobiles.The factory completed investment and put into production and business activities.Average product volume is 100,000 units per month.

SUBSIdIARY COMPANIES (continued)

The project gained the investment license by PC of Quang Ngai province, approval for mineral reserve by National Mineral Reserves Assessment Committee, approval for Environmental Impact Report by Ministry of Natural Resources and Environment, the exploitation permit by Government Office. The project is expected to do the exploitation and business in 2013.

Tho Bac Stone Building Factory The project is located at Tho Bac Quarry, Tinh Tho Commune, Son Tinh District, Quang Ngai Province. The project area is 21.8ha. Exploitation time is 16 years. Exploitation capacity is 180,000m3/year. NBB finances 90% capital. The factory is in business. Granite Exploiting in Chu Lai Quarry The project is located in Tam Nghia Commune, Nui Thanh District, Quang Nam Province. Exploitation time is 5 years. Exploitation capacity is 15,000 m3/year. NBB finances 90% capital. The project is under exploitation stage.

Granite Exploiting in Nui Lua Quarry – Tinh HiepThe project is located in Tinh Hiep Commune, Son Ninh Ward, Quang Ngai Province. The project area is 25ha. Exploitation time will be 18 years. Exploitation capacity is 100,000m3/year. NBB finances 90%. This project is now receiving the exploration result and preparing the basic design and investment plan.

Tinh An Dong Quarries – Quang NgaiThe project is located in Tinh An Dong Commune, Son Tinh District, Quang Ngai Province, including Cam Trong mountain, Go Ra mountain, Sung Trau mountain, Tron mountain, Xom mountain. Total exploitation area is 15.2ha. Total estimated reserve is 2,000,000m3. NBB finances is 90% capital. The project is under exploitation stage.

SUBSIdIARY COMPANIES (continued)

AN NHAT TAN CO., LTd. (Indirect investment through QMI Joint Stock Company)

Address : Lot C1-3, Tinh Phong Industrial Zone, Son Tinh Dist, Quang Ngai Province Telephone : (84. 55) 3677778 Fax: (84. 55)3677677

Director : NGUYEN THANH TINH Chartered Capital : 10 bn VND (NBB owned 89.1%)

Task and function : On behalf of the company, managing, operating and selling of granite products, mieral projects in Quang Ngai Province and Central Region.

Production and Business Result in 2011: revenue has reached 10.45 bn VND and profit after tax was (1.50) bn VND.

Granite Processing PlantThe product is granite stone used in construction and internal decoration. The factory’scapacity for finished goods of granite is 60,000m2/year Total investment is 17.45bn VND, 89.1% of which is financed by NBB. Apart from providing products for projects in the province, the factory is also provide the materials of tile, paving, curb for Carina Plaza project, Son Tinh Residential Area project and other NBB’s projects.

Nui Mang Granite QuarryThe project is located in Nghia Phuong Commune, Tu Nghia Dist, Quang Ngai. Exploitation area is 4.4ha. Exploitation time is 5 years. Exploitation capacity is 25,000m3/year. NBB finances 89.1% capital. The project is under exploitation stage.

Binh Nguyen Granite QuarryThe project is located in Binh Nguyen commune, Binh Son dist, Quang Ngai. Exploitation area is 6.2ha, exploitation time is 12 years.Exploitation capacity is 49,000m3/year. NBB finances 89.1% capital. The project already obtained the investment license and the company is finalizing other procedures to start exploitation.





68Annual Report

NBB CORP 2011

Total number of NBB’s employees as at 31 Dec 2011 is 274, increased by 16, equivalent to 6.2% y-o-y mainly due to the demand of developing new projects. The majority of NBB’s employees are in young ages, having sophisticated skills, strong expertise and enthusiasm. The activeness, creativeness and energy of employees have significantly contributed to the fast and solid development of NBB.

30

78

228

139,400

28%

1%10%

11%13650%0,77%

2011 Labour structure chart

39

2031

2714%

7%11%

10%

CollegePost graduation

Intermedium

University

Unskilled labours

25 to 30 years old 31 to 35 years oldUnder 25 years old

Over 45 years old36 to 40 years old 41 to 45 years old

10940%

4818%

LABOR POLICIES

HUMAN RESOURCE STRUCTURE

ORgANISATION ANd WORKfORCE

Policy, the working regimeThrough six years of establishment and development, NBB’s achievements gain today due to the huge dedication of managers, professionals and staff working in the company. NBB respects the value of each individual’s contribution to the Company and regards it as a key competitive advantage for strong growth and sustainability.

Training Policy• Training and staff development is one of the priorities of the company. Training policy’s aims are to build and develop

highly qualified staff with standardized business ethics, professional working style and enthusiastic customer service.• Staff in the NBB system have the opportunity to attend training courses to improve expertise to meet working

demands and is provided 100% of tuition support

Salaries, bonuses, benefits.• Rewarding system for employees associates with business performance and service quality. Every 6 months and

annually Emulation and Reward Board evaluates the staff capacity and the performance of tasks in order to honor outstanding units; excellent professional staff; customer service staff; creative individuals together with the bonuses they deserve.

ASSOCIATE COMPANIES

BOT Rach Mieu Bridge – Ben TreInvested by BOT Rach Mieu Co., Ltd., this project is located in the hedge of Tien Giang and Ben Tre provinces. Total investment capital was 1,311.61 bnVND, in which: national capital was 60.4%, equivalent to 792.22 bn VND; BOT capital was 39.6%, equivalent to 519.39 bn VND; NBB financed 25%, equivalent to 129.85 bn VND. The project’s pay-back period is 18 years and 05 months. The project has opened to traffic and applied tolling on 02 April 2009. Total revenue in 2009, 2010 and 2011 was 40.19 bn VND, increased by 14.05% ; 66.18 bn VND, increased by 64.66% ; and 81.32bn VND , increased by 22.88% comparing with business plan, respectively.

BOT Co Chien Bridge, Ben Tre – Tra VinhInvested by BOT Rach Mieu Co., Ltd., the project is located at Highway 60, Ben Tre – Tra Vinh. Total investment capital of BOT was 2,100 bn VND. NBB financed 25%. The project is in the progress of completing procedures to prepare construction.

BOT RACH MIEU BRIdGE CO., LTd

Address : Hamlet 8, Tan Thach Commune, Chau Thanh District, Ben Tre Province Telephone : (84. 753)894632 Fax: (84. 753)894632

Director : TRAN ANH dUNG Chartered Capital : 460.028 bn VND (25% stake owned by NBB) Invested Value : 32,779,162,056 VND Business Scope : Investment in transport works in the form of BOT, BT, BOO; investment in infras strture construction of industrial zones...

Ongoing Projects:

South Tam Phu Ecological Urban AreaIt is invested by Tam Phu Investment and Construction Co., Ltd. The project’s location is in An Phu Ward, Tam Ky City, Quang Nam. Total area is 93.64ha (Stage 1) including villas, adjacent houses, service lands, which is focused more than 46ha mainly for trees and transport. Until 31 December 2011, the project has obtained the Investment Certificate; approval for basic design and total investment capital by Chu Lai Open Economic Zone; implementing land clearance and compensation. The project is expected to start construction in Q2 2012.

TAM PHU INvESTMENT & CONSTRUCTION CO., LTd.

Address : Lot 148B Ton Duc Thang Street, Tam Ky City, Quang Nam Province Telephone : (84. 510)3835533 Fax: (84. 510)3888533

Director : dOAN KIM THUY Chartered Capital : 20 bn VND ( NBB owned 49%) Invested Value : 4,239,797,215 VND Business Scope : Investment, construction and trading real estate; design document verification, Total estimated cost; investment report; geological survey; supervising; design of transport works. Task and function : On behalf of the company, managing, operating and sales of granite products, mineral projects in Quang Ngai Province and Central Area. Production and Business Result in 2011 revenue has reached 10.45 bn VND and profit after tax was 1.50 bn VND.





70Annual Report

NBB CORP 2011

• All permanent employees are entitled to the allowances for social insurance, unemployment insurance and health insurance in accordance with labor laws.

THE UNION ACTIvITIES:

NBB has always focused on the spiritual life of staff and social activities. Trade Union, Women Union and Youth Union regularly organize cultural shows, seminars, cooking contests ... on the great feasts of the country as well as anniversary of the corporation.

CORPORATE CULTURE:

Apart from sustainable development and corporate social responsibility, NBB is particularly interested in building a healthy working environment and unique cultural identity.NBB’s corporate culture is reflected in working style, communication behavior of staff within the company and with external partners; It is likely to say that NBB’s corporate culture is a system of values, beliefs, habits which are shared within the whole enterprise and kept improving constantly through the reflective characteristic of leaders such as wisdom, bravery, consistency, innovative thinking, dynamic creation and passion for corporate development. NBB’s unique identity is being perfected on the basis: Unity - Cooperation - Dynamic - Creation - Quality – Efficiency, subject to the transparency as a prerequisite. NBB brand in the past 6 years has presented as a traditional cultural beauty, an invaluable spiritual asset and ensuring resources for stable and sustainable development.

LABOR POLICIES (continued)

Salaries, bonuses, benefits (continued)

NAM BAY BAY MElOdYWe are proud to have our official song composed by our proffesional .

Composer: Pham Xuan Quoc (MSc)




NBB CORP 2011 PBwww.nbb.com.vn

72Annual Report

NBB CORP 2011

NBB INvESTMENT CORPORATION01 Nguyen Van Dau, Ward 5, Phu Nhuan District, HCM City

Tel: 08 62 577 577 - 08 35157174 Fax: 08 3844 6017Email: [email protected] wedsite: www.nbb.com.vn

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