PC1 GROUP JOINT STOCK COMPANY

“INNOVATION - CREATIVITY - DEVELOPMENT”

ANNUAL REPORT 2021



Established on March 2, 1963, after nearly 60 years of construction and development,

from the initial key task of constructing and installing national power transmission
works, PC1 Group Joint Stock Company (PC1 Group) has now proven its capacity not
only in the field of power construction but also expanded into the fields of industrial
production, energy investment, real estate investment, consulting and services.

The Group is currently in the TOP 500 largest enterprises in Vietnam, TOP 500 most
profitable enterprises in Vietnam, TOP 50 excellent enterprises in 2021 with a scale of
more than 20 member units and revenue of nearly 10,000 billion dong.

Company name PC1 GROUP JOINT STOCK COMPANY

Abbreviated name PC1 Group

English name PC1 Group Joint Stock Company

Certificate of Business 0100100745

Registration
Business Registration No. 18 Ly Van Phuc, Cat Linh Ward, Dong Da
Address District, Hanoi

Head office CT2 Building, PCC1 Nang Huong Building, No.

583 Nguyen Trai - Thanh Xuan - Hanoi

Charter capital VND 2,351,596,490,000

Phone 024.38456329

Email info@pcc1.vn

Website http://pcc1.vn/

Logo

Stock code PC1

Listed place Ho Chi Minh Stock Exchange

 Annual Report 2021 5

Revenue General
contractor of
TABLE OF CONTENTS electrical work increased 119%
03
05
Introduction
Highlights 2021
9,828
Billions VND
6,714 Continuing to affirm its No. 1 position in the
power grid general contractor inside and
Billions VND
outside the industry, signing and implementing
PC1 Group 2021 EPC contracts for power plants, in which the
total capacity of wind power plants that PC1
08 Mission, Vision, Core values Group has completed COD service is nearly
10 Outstanding Award in 2021
11 Basic financial indicators in
Consolidated revenue increased 47% 600MW, accounting for about 20% of the total
capacity that has been COD
2021
14 Message from the Chairman of
Board of Directors and General
Director

General information

20 History of formation and

development
22 Business activities and business
locations
34 Development orientations

Corporate Governance 764

Billions VND
40 Organizational model
42 Board of Directors, Supervisory
Board and Executive Board
48 Subsidiaries and associates
51 Shareholder structure and Consolidated net profit after tax increased 40%
charter capital increase process
58 Corporate governance report
Completing the corporate strategy report for
72 Risk management
the period 2021-2025 with a vision to 2035,
77 Enhancing corporate
the results of the first year 2021 targets have
governance
exceeded the plan at a high level
Revenue Energy investment
Operation situation
increased 24%
82 Overview of Vietnam’s economy
and electricity industry 928
Billions VND
Completing the cluster of 03 wind power plants Lien
Lap, Phong Huy, Phong Nguyen before October 31,
83 Investment and business 2021, eligible for preferential FIT prices, bringing
performance in 2021 the total power generation capacity of PC1 Group
96 Financial situation to 313 MW.
100 Report of the Executive Board
114 Report of the Board of Directors

120 Sustainable development

140 Audited consolidated Financial

statements
HIGHLIGHTS 2021
 PC1 GROUP 2021

1 8
10
11
14
Mission, Vision, Core values
Outstanding Award in 2021
Basic financial indicators in 2021
Message from the Chairman of Board of Directors
and General Director
8 PC1 Group Joint Stock Company Annual Report 2021 9

MISSION, VISION, CORE VALUES

CORE
VALUE

Affirming the number 1 Creativity

position in Vietnam, TOP
VISION 5 in Southeast Asia in the field of
EPC general contractor for power
grid projects and renewable energy
projects. Professional renewable
energy investor in the leading group
in Vietnam
Speed

Constantly creating
smart and modern electrical
MISSION works connecting the national
and regional power systems
Trust
Creating outstanding
value for customers, investors,
employees and society
10 PC1 Group
10 PC1 Group Joint
Joint Stock
Stock Company
Company Annual
AnnualReport
Report2021
2021 1111

Basic financial information 2021

Outstanding Award 2021:

Net Revenue 764

Billions VND

9,828
TOP 50 Billions VND

Top 50 Vietnam The Best in 2021 – The ranking is Profit after tax
announced annually by Vietnam Report.
18,687
Billions VND

TOP 500 Total assets

8 consecutive years in the TOP 500 largest enterprises
in Vietnam (2014-2021) – Voted by Vietnam Report. Criteria Unit 2017 2018 2019 2020 2021
Business performance
Net Revenue Billions VND 3,161 5,084 5,845 6,679 9,828

Profit after tax Billions VND 256 491 376 544 764
Honored to be awarded a certificate of merit by
the Hanoi People’s Committee for achievements in EPS Billions VND 2,336 3,514 2,246 2,682 2,858
Covid-19 epidemic prevention and control
Balance sheet
Honored to be presented by the Hanoi People’s Total assets Billions VND 6,214 6,597 8,315 10,722 18,687
Committee with the flag of an excellent unit in the
business emulation movement in Hanoi in 2020 and Equity Billions VND 2,814 3,279 3,695 4,770 6,281
a certificate of merit from the Chairman of the Hanoi
Liabilities Billions VND 3,400 3,318 4,620 5,952 12,406
People’s Committee. This is the second year in a row
that the Group has received this honor. Key financial indicators

Equity/Total Assets 45% 50% 44% 44% 34%

First-class emulation flag of Quang Tri Provincial People’s Committee. Liabilities/Total Assets 55% 50% 56% 56% 66%

ROE 10.5% 16.1% 10.8% 12.9% 13.8%

ROA 4.8% 7.7% 5.0% 5.7% 5.2%

12 PC1 Group Joint Stock Company Annual Report 2021 13

Net Revenue (Billions VND) Total assets and Equity (Billions VND)
18,796
9,828

6,679
5,845 10,722
5,084
8,315
6,597
3,161 6,214 6,281
4,770
3,695
2,814 3,279

2017 2018 2019 2020 2021 2017 2018 2019 2020 2021

Total assets Equity

Profitability

18.00%
16.10%
16.00%
Profit after tax (Billions VND)
13.80%
14.00% 12.90%

764 12.00%
10.50%
10.80%

544 10.00%

7.70%
491 8.00%

376 5.70%
6.00% 5.00% 5.20%
4.80%
256
4.00%

2.00%

0.00%
2017 2018 2019 2020 2021
2017 2018 2019 2020 2021
ROA ROE
14 PC1 Group Joint Stock Company Annual Report 2021 15

Message of the Chairman of the Board of Directors 2021 is an important year that PC1 has completed and implemented the Development
Strategy for the period 2021- 2025 with a vision of 2035, completed the restructuring of

“
the Group’s organizational chart and model, transferred and appointed the title of General
PC1 IS CONFIDENT Director. Overcoming difficulties and challenges, seizing new opportunities to succeed, with
a spirit of determination and proactive, creative, speed steps, effective solutions to respond
THAT 2022 PC1 to fluctuations and unforeseen difficulties, PC1 has completed beyond the business plan
WILL OVERCOME targets of the year, and successfully completed the target of renewable energy investment
in the context of extremely difficult circumstances. With the remarkable results, we have
CHALLENGES AND continued to make positive marks, continued to assert credibility, position and capacity in
SUCCESSFULLY some market-leading business areas, and provide customers and communities with success,
trust and desire to connect, accompany and develop together.
CONTINUE TO MAKE
GOOD MARKS TO In 2022, PC1 Group Joint Stock Company has embellished a new look with a new youthful,
CELEBRATE ITS 60TH modern, international and friendly brand identity. Throughout the strategic objectives, we
continue the goal of effectively developing the Group’s new organizational chart, improving
ESTABLISHMENT “ management capacity according to international standards through the quality of human
ANNIVERSARY. resources, transformation and application of digital technology, positively improving the
working environment and employee income while developing a strong PC1 culture. PC1
People are Humane and dedicated, Professional and punctual, Innovative and technological,
Trust and dedicated, especially in difficult moments of great challenge, PC1 people are
always full of enthusiasm, confidence and success.

Promoting the strengths of prestige, trust of customers and the community for PC1,
outstanding capabilities and overall solutions, advanced technology, always being innovative
and speed with reliable steps in strategic cooperation with major national and international
prestige partners, synchronize and resonate with the capabilities in the PC1 ecosystem,
by 2022 we are confident to create new successes. Focus on prioritizing resources for
business pillars where the Group has high advantages and opportunities; Control the
rate of development over traditional business activities but competition is increasing;
Arrange to narrow and withdraw some business activities that have small scale and tend
to reduce competitive advantage. PC1 firmly believes and strives to continue to create
new achievements, new milestones, always be socially responsible, worthy of the trust and
commitment of our customers and the community.

In the new plan, the Board of Directors expresses its sincere affection and sincere appreciation
for the valuable trust, companionship and support of our customers and partners in the past
time. Thank you very much to the shareholders and investors who have always supported
and shared with the Board of Directors and the Executive Board. We highly appreciate and
recognize the proficiency, dedication, responsibility and very important contributions of the
Board of Management, the management apparatus, and employees of the whole Group.

I would like to send to our customers, partners, shareholders and all employees of PC1
the best wishes, health, happiness, companionship, success and more development.
PC1 confidently aims to celebrate its 60th establishment anniversary with many new
Dear shareholders! achievements, new milestones in a new stage of development: PC1 Brand and Prosperity,
PC1 family is wealthy and happy.
The world and Vietnam have had to go through the second year in a row with enormous
fluctuations, difficulties and challenges. The losses and negative impacts in 2021 have Best regards!
greatly affected all economic activities and social life. Vietnam soon recovered at the end
of the year after great human shocks and losses, a deep economic decline, and a much TRINH VAN TUAN
more difficult business community. The Chairman of the Board of Directors
16 PC1 Group Joint Stock Company Annual Report 2021 17

Affirming the PC1 brand

Message from the General Director In 2021, the economy of nation in general and PC1 in particular experienced a year with many
changes and challenges, especially the effects of Covid-19 epidemic, PC1 still strongly rose
with outstanding growth results. Together, we have overcome a difficult 2021 and created
a solid foundation to grow stronger along the way. Despite still facing many challenges, we
are confident that, with the business activities and results in 2021, professionalism and
commitment, PC1 will continue to raise the prestige and reliability of customers, demonstrate
the capacity of adaptation, effective operation of PC1 brand, especially in the context of
fluctuations and great difficulties.

Ladies and gentlemen,

Business results in 2021 are an important driver for us to be ready for the new journey, to
successfully implement the 2021 - 2025 Strategy and 2035 aspirations. With the spirit of
Innovation-Creation, in 2022, the Executive Board and all employees of PC1 are determined
to excellently carry out our mission. In addition to optimizing the process and strongly
developing the business lines, we define important management tasks:

People development PC1 always focus on people - the most important asset of the Group.
PC1 is effectively operating its newly restructured organizational model together with advice
from KPMG. The roadmap is determined to further improve the quality of human resources,
raise the level of staff with standard and practical training programs.

Organizational culture Promoting humanistic tradition and thoroughness; Professionalism

and punctuality; Creativity and technology; Trust and dedication, PC1 is determined to build
a strong, sustainable PC1 culture, engage employees, promote pride and establish new
achievements towards the 60th anniversary of the Group.

Brand development is one of the key tasks of the new strategic phase. The Group has
officially announced the PC1 brand identification which is modern, emotional and international.
Accordingly, PC1 will promote the implementation of brand identity synchronization on the
Group scale while developing strong brands to deserve the strategy and aspirations of PC1
People, thanks to the trust of customers and the community.

Digital transformation in the new strategic path PC1 is not only improving its internal
capacity but is investing heavily in digital transformation as one of the drivers for development.
Digitize products and services to enhance customer experience, provide customers with
high added value, and optimized processes. Under that roadmap, PC1 will become a fully
digital synchronous enterprise by 2025.
Finally, we, the members Executive Board of Directors, sincerely thank the Board of Directors
for the right guidance and direction in a challenging year. With appreciation and gratitude to
the talented staff of the Group who have worked relentlessly to achieve proud results. And
above all, we thank our partners, shareholders who have been and will continue to support
PC1’s vision and aspirations to reach the international level, creating the motivation for PC1
to be persistent - strong and confident to reach far.
Dear shareholders! Best regards!

On behalf of the Executive Board of Directors, we would like to express our honor VU ANH DUONG
and pride in contributing our enthusiasm and wisdom in the journey of reaching the The General Director
international level of the PC1. We are ready to take the opportunity and confidently
overcome challenges to succeed on the glorious path ahead.
 General information

2 20
22
34
History of formation and development
Business activities and business locations
Development orientations
 20 PC1 Group Joint Stock Company Annual Report 2021 21

March 2, 1963
Established on March 2, 1963
with the original name as Line
1981 - 1987
In 1983, due to development
2008
Power Construction Joint Stock
2021
The company adjusted the organization chart according to the
requirement of national grid, Company I registered to become
and Substation Construction the Ministry decided to separate a public company with the State group model towards professionalism and high specialization, in
Company. At the time of line with the actual operation of PC1 Group.
and lift some enterprises, the Securities Commission
establishment, the Company had construction site of the Company 2009 - 2013
4,000 employees, 5 construction to set up companies under the Completing the corporate strategy report for the period 2021-
teams, 3 construction sites, 1 The company achieved an
Ministry of Electric Power. In
fleet of vehicles, and 1 mechanical average annual revenue growth
2025 with a vision to 2035
details:
workshop. The Company’s head of over 15%, with annual revenue
- Separating Dong Anh Station
office was located at 20 Tran of over VND 1,000 billion. The Completing the cluster of 03 wind power plants Lien Lap,
Installation Business from the
Nguyen Han (Hanoi). company to establish Line and state shareholder is Vietnam Phong Huy, Phong Nguyen before October 31, 2021, eligible
1967 - 1970 station construction company 4 Industrial Construction Joint for preferential FIT prices, bringing the total power generation
located in Dong Anh. Stock Corporation divesting from
On June 30, 1967, The Ministry of Electricity Construction Joint Stock
capacity of PC1 Group to 313 MW.
- Separating Line and Station
Heavy Industry issued a decision Construction Business in Hanoi Company I and the Company
to establish Line and Substation area, establishing Hanoi Regional becomes 100% private. kContinuing to affirm its No. 1 position in the power grid
Construction Company under Line and Station Construction 2016 general contractor inside and outside the industry, signing and
the Electricity Department. The Company. implementing EPC contracts for power plants, in which the total
labor force of the Company now - Separating Line Business No.1, The company successfully listed
had about 2,000 people, 16
capacity of wind power plants that PC1 Group has completed
establishing Line Construction PC1 share on Ho Chi Minh
construction teams and Station 3 Company, located Stock Exchange and generated COD service is nearly 600MW, accounting for about 20% of the
in Vinh. successfully power of first two total capacity that has been COD
1970 - 1975 - Separating Quang Tri Site, hydropower plants in the energy
establishing Power Construction investment strategy
On June 30, 1970, Line and

nt
Company No. 5 in Vinh.
Substation Construction 2019
Company was established as 2017
1988

me
subsidiaries of the Ministry of Continue to improve design, improve production
Established Power Construction Continued to generate 2
Electricity and Coal. Since then, capacity, manufacture and erect the highest 500kV super
Company No1, under the Ministry hydroelectric plants of Bao Lam
the Company was a departmental- high-voltage towers in Southeast Asia; is the only unit
of Energy on a consolidated basis 3 and Bao Lam 3A, increasing the

op
level unit, a supervisory agency in Vietnam that successfully designs and manufactures
between Line and Substation total generating capacity of PCC1
of enterprises that implemented 220kv tube busbar products.
Construction Company No.1 to 114 MW.
comprehensive and centralized Completing the power generation of unit 1 of the 5th
and Hanoi Line and Substation

el
economic accounting. 2018 plant - Mong An Hydroelectricity.
Construction Company.
1975 - 1979 Hand over the 4th real estate

v
1995 project - PCC1 My Dinh Plaza 2 2020

de
Line and Station Construction The Company belonged to project. Completing the power generation of
Company with an independent Vietnam Electricity Corporation. the 6th and 7th hydroelectric plants
and complete organizational
(Bao Lac B and Song Nhiem 4), bringing

nd
structure. The company had
1998

a
the total generating capacity of PC1
about 3,500 people
Group to 169 MW.
The Company belonged to

n
1979 - 1981 Vietnam Industrial Construction

i o
Corporation, under the Ministry

t
The Line and Substation
of Industry.

a
Construction Company under
the Ministry of Electricity was 2005

r m
renamed Line and Substation

o
Power Construction Joint Stock

f
Construction Company No. 1

f
Company I was equitized from a

o
state-owned enterprise, Power

y
Construction Company I.

tor
1963 - 1981 1981 - 2005 2005 - 2018 His
22 PC1 Group Joint Stock Company Annual Report 2021 23

Industry Business area

General contractor of
electrical work

Spread across 3
Production and regions North, Central
trade of new and South of Vietnam
materials

Energy
investment

Currently, PC1 Group has products

exported to foreign markets such as
Australia, Japan, Indonesia, Laos,
Consulting Myanmar, ...
and Services Industrial
production

Real estates
24 PC1 Group Joint Stock Company Annual Report 2021 25

General contractor of electrical work

With nearly 60 years of experience, PC1 Group is currently leading the country in the field Customers in EVN:
of electrical construction and installation with experience in implementing many national
Northern region:
power transmission projects, especially EPC and PC general contractor projects up to 500
+ 500kV Quang Ninh substation project
KV voltage level and projects with high specificity (Gis station, power supply project to the
+ 220kV Dong Hoi Substation (the first substation using steel tubular poles in Vietnam)
island, underground cable project...). + EPC contract of Yen Dinh 110 kV substation (using UNIC 10- ton crane (the only one in
Moreover, the Group has successfully made a breakthrough in implementing the general Southeast Asia) for construction)
contractor for renewable energy power plants, especially projects with high technology + 500kV Pho Noi - Hung Yen transmission line project
requirements - wind power plants, solar power plants. + Supply and install 110kV Underground Cable of 110kV Substation Project of Thu Le
PC1 Group continuously executes important key projects with a team of highly qualified Park
and skilled personnel, combined with the use of modern equipment technology, typically
Central region:
Navi fly technology. + 220kV Quang Ngai - Quy Nhon transmission line project
Navifly uses a UAV to pull the bait line in the air, researched, manufactured and applied by + Dak Nong - Phuoc Long - Binh Long 220kV transmission line project
PC1 Group since 2015. Currently, this technology has been applied to most of the Group’s + 220kV Vinh Tan - Thap Cham transmission line project
projects, helping the construction work. wire pulling for high-voltage transmission works in + Project of 500kV Hiep Hoa substation
places with difficult terrain easily and conveniently, saving time and energy. + 500kV Pleiku – My Phuoc – Cau Bong transmission line project
+ 500kV Quang Trach - Doc Soi transmission line project
Some typical projects PC1 Group has implemented:
South region:
Customers outside EVN: + 500kV O Mon Substation machine 2
+ Both the general contractor and the investor in a cluster of 03 wind power plants in + 500kV Tan Dinh Substation
Quang Tri including Lien Lap, Phong Huy, Phong Nguyen with a total capacity of nearly + 220kV Cai Lay – Tra Noc project
150 MW, completed generating electricity with FiT prices before October 31, 2021. + 550kV Long Phu - O Mon transmission line project
+ EPC General Contractor of Ia Bang 1 Wind Power Plant + 220kV Cat Lai – Tan Cang transmission line project
+ EPC General Contractor of Tan Phu Dong 2 Wind Power Plant + Chon Thanh 500kV substation project and connection
+ EPC and substation for photovoltaic solar power generation plant in Thuan Nam dis- + 110kV underground cable project of Ben Thanh - Suoi Tien urban railway line
trict, Ninh Thuan province (BIM). + 110kV underground cable project at Tien Sa port and connection
+ 110kV substation and transmission line connecting GAIA solar power plant
+ EPC substation 220kV Dau Tieng and connecting 220kV line
+ EPC General Contractor of Tra Vinh Wind Power Project
+ EPC General Contractor of Phuoc Thai Solar Power Plant
+ EPC General Contractor of IA pet Dakdoa 1,2 Wind Power Plant

500KV DR Circuit 3 connects from Hue across Hai PC1 Group is the EPC general contractor for the
Van pass to Da Nang RR and substation of Dak Doa 1 and 2 power
plants in Gia Lai province.
Pictures of 500KV Vinh Tan - Song May EZ project
26 PC1 Group Joint Stock Company Annual Report 2021 27

Energy investment

Hydropower investment Windpower investment

In the field of energy investment, PC1 Group affirms its professional investment capacity with ready
Along with hydroelectric power plants that have been invested and are currently being invested, PC1
resources, professional management process, advanced technology, always controlling quality
Group has so far continued to develop renewable energy projects such as solar power and wind
and progress. Up to now, PC1 Group has successfully operated 7 hydropower plants with a total
power in advantageous areas, actively contributing to the conservation of energy. ensure energy
capacity of up to 170 MW, with a total investment of VND 5,000 billion.
security, meet the national clean energy demand.

In October 2021, PC1 Group officially started commercial operation of Lien Lap, Phong Huy, Phong
Nguyen wind power plants cluster in Quang Tri with a total capacity of 144 MW, eligible to sell
Designed
Deployment
Total invest-
output
electricity at FiT.
Projects Location ment capital Capacity (MW)
time (million
(billion VND) Designed
kWh) Total invest-
Deployment output
Projects Location ment capital Capacity (MW)
Completed and put into operation time (million
(billion VND)
kWh)
Trung Thu Dien Bien 2013-2016 910 30 113
Completed and put into operation
Bao Lam 1 Cao Bang 2014-2017 767 30 104
Lien Lap Quang Tri 2019-2021 1,921 48 145
Bao Lam 3 Cao Bang 2015-2017 890 46 173 Phong Huy Quang Tri 2020-2021 1,921 48 177

Bao Lam 3A Cao Bang 2016-2017 330 8 30 Phong Nguyen Quang Tri 2020-2021 1,921 48 173

Mong An Cao Bang 2017-2020 916 30 104 Targets to 2025:

- Invest in and effectively manage and operate 350MW of RE power plants.
Bao Lac B Cao Bang 2018-2020 559 18 72 - Accumulated commercial electricity output reached 07 billion kWh, equivalent to cutting 5.6
billion tons of CO2 equivalent
Song Nhiem 4 Ha Giang 2018-2020 228 7 24 - Successful cooperation and development of 1,000 MW of Offshore wind power

Bao Lac A Cao Bang 2021-2023 1,080 30 104 Goal 2035:

- Successfully operating 1,000 MW of Offshore wind power
Planning to invest

Thượng Hà Cao Bang 2023-2025 481 13 40

Nam Po 5A Dien Bien 2023-2025 760 20 57

Nam Po 5B Dien Bien 2023-2025 684 18 52

03 wind power projects Lien Lap, Phong Huy, Phong Nguyen - the first Green certified
wind power project in Vietnam sponsored by ABD

Some pictures of Bao Lam 3 Hydropower Project

28 PC1 Group Joint Stock Company Annual Report 2021 29

Industrial Production Real estates

In the field of industrial production, PC1 Group is the only and largest unit in Vietnam in designing Up to now, PC1 Group has completed, handed over and put into use a number of residential real
and manufacturing steel tubular poles of 110 KV, 220 KV - 1, 2, 4 circuits and connecting steel estate projects that are highly appreciated by the market and customers, thereby improving the
bars up to 750kV, with a modern technology line integrated with CNC control system with a total prestige and image of PC1 Group, can be The following outstanding projects are mentioned as
capacity of over 50,000 tons of products / year. below:
PCC1 Nang Huong in Van Quan, Ha Dong, Hanoi has two 21-storey towers; villas and townhouses.
In the field of manufacturing electrical materials and equipment, PC1 Group focuses on researching
My Dinh Plaza 1 at 140 Tran Binh, Cau Giay, Hanoi has the scale of 25-storey luxury apartment
and applying advanced science and technology to the design, manufacture and processing of
products in order to take quality as a criterion to build prestige and brand. In addition, the Group tower, including 3 commercial floors; 352 apartments.
has also contributed capital to projects of surveying, exploration, mining, refining, processing and PCC1 Ha Dong Complex in Phu Luong, Ha Dong, Hanoi has four 15-storey towers, 03 floors for
trading in minerals. rent; 540 apartments.
My Dinh Plaza 2 at 2 Nguyen Hoang, Nam Tu Liem, Hanoi has two 28-storey luxury apartment
Grid poles Steel tubular poles
towers, 4 commercial floors; 472 apartments.
+ Supplying steel poles for 500kV Son La - + Supplying 220kV-500kV electric pole to
PCC1 Thanh Xuan at No. 44 Trieu Khuc, Thanh Xuan, Hanoi has two 27-storey apartment towers,
Hiep Hoa transmission line. Chile.
+ Supplying steel pipe piles for the widening + Supplying 220kV electric pole to Pakistan. 3 basements, kindergartens and 480 apartments.
of expressway No. 5. + Cat Lai - Tan Cang project
+ Supplying electric poles for 765kV Shingori In addition, PC1 Group is implementing the following projects:
line. Steel pipe tower
+ The 500kV transmission line circuit 3 of + 220kV transmission line and substation of Expected Expected
Quang Trach - Doc Soi and Doc Soi - Pleiku 2; BIM solar power plant (Ninh Thuan) Projects Location Scale
progress gross profit
+ Nho Quan - Phu Ly - Thuong Tin transmission + Exporting 14 monopole telecommunication
line poles to Australia and continuing to export
+ 500kV transmission line connecting Nghi many follow-up orders in 2022 PC1 Gia Lam Yen Khe, Yen - Total land area: 7,152.20 m2
Son 2 Power Plant (Yen Thuong) Thuong, Gia - Construction area: 3,129.36 m2 2022-2022 >15%
+ 500kV Song Hau - Duc Hoa transmission line Project Lam, Hanoi - Scale: 54 low-rise apartments.
(the highest electricity pole in Southeast Asia)

No. 1, Lane
120 Dinh - Total land area: 15,100 m2
PC1 Dinh Cong, Phuong - Construction area: 6,000 m2
2022-2022 >15%
Cong Project Liet ward, - Scale: 83 low-rise apartments,
Thanh Xuan, kindergarten, office
Hanoi

- Project land area: 5,160 m2.

+ High-rise mixed-use building
No. 1, Lane
includes 27 floors, 3 basements,
PCC1 Vinh 321 Vinh
1 tum. 2021-2023 >15%
Hung Project Hung, Hoang
Production technology of single-body steel columns + Low-rise commercial service
Mai, Hanoi
area includes 05 commercial
PC1 Group has receipt the transfer and mastered the technology of designing and manufacturing floors, 01 tum floor.
complete steel column products, successfully deployed to the market with many key projects. New
steel pole products of PC1 Group with many preeminent features have been highly appreciated by
the leaders of Electricity of Vietnam (EVN) and partners and customers for their suitability, meeting - Project land area: > 20,000 m2
increasing requirements. of national power transmission projects. + High-rise mixed-use building
PCC1 Thang Tan Xuan, Bac includes 27 floors, 3 basements,
2022-2024 >15%
The Group’s ability to design and produce steel poles is increasingly proven through electrical Long Project Tu Liem, Hanoi 1 tum.
+ Low-rise commercial service
works, telecommunications works, domestic traffic and exports to countries such as Australia,
work includes 04 floors, 01 tum.
Japan, Korea, Chile, ... at the same time expanding foreign markets such as Bangladesh, Papua New
Guinea, Myanmar to increase export revenue.
30 PC1 Group Joint Stock Company Annual Report 2021 31

Real estate investment and business

In addition, PC1 Group has been expanding into industrial real estate through successful and
effective investment cooperation opportunities in Industrial Parks with distinct advantages in
logistics, river ports, and seaports. , high-quality industrial zones, ecological industrial zones,
combined with clean energy supply in the provinces and cities have been deployed.

PC1 Group owns 30% of capital of Western Pacific Joint Stock Company, thereby cooperating
to invest in real estate projects in Yen Phong II-A industrial park, Bac Ninh 159ha, port cluster -
industrial cluster - industrial park in Hanoi. Ha Nam, Bac Giang,…

Pictures of Gia Lam PCC1 Project

Pictures of PCC1 Vinh Hung Project Pictures of PCC1 Thang Long Project Pictures of industrial real estate projects PC1 Group is investing in
32 PC1 Group Joint Stock Company Annual Report 2021 33

Production and trade of new materials Consulting and Services

PC1 strengthens investment and efficient operation of Nickel-Copper mineral mining and processing With a synchronous role with above core business areas, contributing to the overall business
projects; focus on upgrading and developing large resources. results and enhancing the reputation of PC1 Group, the Group has strongly developed activities:

PC1 Group owns 57.27% capital of Tan Phat Mineral Joint Stock Company - investor of Nickel - - Design consultancy for electrical works; Consulting compensation, site clearance; surveying
Copper mineral opencast mining project in Quang Trung commune, Hoa An district, Cao Bang cadastral maps, extracting and measuring land plots to serve compensation for construction works.
province. The project has been awarded investment policy decision by Cao Bang Provincial People’s - Hydropower project management consulting, post-investment hydroelectricity management;
Committee according to Decision No. 2038/QD-UBND dated October 10, 2018 and decision to - Building management services.
adjust investment policy No. 809/QD-UBND dated May 18, 2018. 2021 with total investment of
1,502 billion VND; designed capacity scale is 600,000 tons/year. Construction started on July 3,
2021 and went into operation as planned in the fourth quarter of 2022 and sold products from the
first quarter of 2023.
- Commercial business: mainly trading in steel billet products, construction steel and coke.

Groundbreaking ceremony of Nickel - Copper mineral opencast mining project in Cao Bang

Some pictures of the open-pit mining of Nickel - Copper minerals

34 PC1 Group Joint Stock Company Annual Report 2021 35

Orientations for development

The PC1 Group Strategy Department has completed the Group Strategy Report for the period
2021-2025 with a vision of 2035 (consultant: KPMG).

STRATEGIC PILLARS

PRODUCTION AND TRADE OF NEW ENERGY INVESTMENT INSTALLATION OF ELECTRICAL INDUSTRIAL PRODUCTION
MATERIALS WORKS

Targets to 2025:
- Investing in the development of Continuing to affirm the position and Affirming the No. 1 position in Vietnam
- Investing in and effectively managing
trade in related goods and fields in reputation of No. 1 in implementing in designing and manufacturing steel
the PC1 ecosystem to support the and operating 350MW renewable
national power transmission projects. pole products for high- and super-
competitiveness of core business energy power plants.
high-voltage transmission grids.
activities, while adding profits and - Accumulating commercial electricity
Priority is given to high-tech projects,
cash flow to PC1. output reached 07 billion kWh,
special projects, PC contracts, EPC Prioritize developing new products,
equivalent to cutting 5.6 billion tons
of CO2. electrical works and industrial park continuing to connect and develop
- Investing and researching in the
- Successfully cooperating and projects. international markets
production and processing of some
products and metals with high developing 1,000 MW offshore and
demand trends in the future that onshore wind power plants.
PC1 has advantages in investment.
Target 2035: Successfully operating
1,000 MW of offshore and onshore
wind power plants.

EPC GENERAL CONTRACTOR REAL ESTATE

Developing the capacity of EPC - Residential real estate: Continuing

general contractor for electrical to assert itself as a professional
works with synchronous solutions, and reliable real estate investor and
prioritizing solutions for high-tech trader.
development. Affirming the position
of top 3 in Vietnam and top 5 in - Industrial Park Real Estate: Priority is
Southeast Asia in the field of general given to investment in infrastructure
contractor for RE power plants. and operation of smart industrial
parks, ecological industrial parks,
combining logistics utilities, seaports,
river ports, and customs.
36 PC1 Group Joint Stock Company Annual Report 2021 37

Orientations for development

OVERALL STRATEGY VALUE GOAL
ATTACK STRATEGY – KEY STRATEGY
REVENUE OBJECTIVE
- Strengthening operations and investing in business development in areas where the Group has
MILLION
2
strengths and high opportunities.
- Expanding market share, focusing on development investment in the following areas: CONSOLIDATED OVER USD
Investment and development of residential real estate, industrial real estate. REVENUE RESULTS 2021 MARKET CAPITAL
Investment in manufacturing, processing minerals and new products according to the Group’s MILLION OBJECTIVES
business chain. 428 USD MILLION
EPC general contractor for power projects and technology products and services in sync
with products of EPC general contractor, construction of industrial park real estate general
MARKET CAPITALIZATION OVER 2 USD
MILLION
410
contractor.
Investment in developing techniques and high technologies for core business activities, USD
prioritizing digital transformation.
DIVERSITY STRATEGY
2021 2030
Stable operations, controllable growth in business areas that have strengths but do not have the
opportunity to lead the market or areas where current profit margins are not attractive

Investment in power plants;

Construction of medium and large scale traditional power projects and works;
Production of traditional high-voltage poles and domestic telecommunications poles; 2025 2035
Trading in product groups and categories with low profit margins.

EXIT STRATEGY
Reducing business activities according to the route in business areas that have weak products, IMPLEMENTATION
risks, fierce competition, low profit margins.
Reducing activities to stop business activities with traditional small-scale and dispersed labor Approving and
projects; implementing the
Trading in products that are not part of the PC1 ecosystem and have low profit margins. strategy
- During the implementation of the strategy, each field and product line will be applied according
to the appropriate strategy in each period to maximize business efficiency, achieve growth goals
REVENUE OBJECTIVE
and optimize limited resources.
BILLION
1
- Each business area can apply one or a combination of different strategies for each product line.
OVER USD
25% GROWTH
MARKET CAPITAL
OBJECTIVES

BILLION
OVER 1 USD
 CORPORATE GOVERNANCE

3 40
42

48
51
Organizational model
Introduction to the Board of Directors, Supervisory
Board and Executive Board
Subsidiaries and Associates
Shareholder structure and charter capital increase
process
58 Corporate governance report
72 Risk management
77 Enhancing corporate governance
 40 PC1 Group Joint Stock Company
40 Annual Report 2021 41
Annual Report 2021 41

Organizational model
GENERAL MEETING
From December 1, 2021, PC1 Group has operated a new organizational chart under the group OF SHAREHOLDERS
model, towards professionalism and high specialization, in line with the actual operation of PC1
Group and legal regulations, to support the process of interaction in international integration and
cooperation, in accordance with the Group’s strategic orientation from 2021-2025 with a vision BOARD OF DIRECTORS SUPERVISORY BOARD
to 2030. Accordingly, the new organizational chart has contributed to clarifying the mission and
strategic goals of the blocks and subsidiaries; functions and duties of each Department. INTERNAL AUDIT DEPARTMENT

GENERAL DIRECTOR

Production and
Energy Block EPC Block Power Construc- Real Estates Block Industrial Trade of new
tion Block Production Block materials Block

Finance and Human Digital Department Commercial

Accounting resources ransformation Department of Department of of Technical Real Estate
Business
Department Department Department Energy EPC Economics Department Department
Department
Human Investment
Finance resources Project Develop- Project Develop- Marketing Engineering
Division IT Center Management
Division ment Division ment Division Division Technology
Division Division
Accounting Planning Sub- Economic and In- Contract
Administra- Project manage- Project
Division department vestment Division Management Project
tion Division ment Division management
Division management Division
Communica- Technical and Equipment and Southern Division Finance & General
tion Division Equipment Division materials Division Office Division
Records
Construction Engi- Business Develop- Management
Legal neering Division ment & Production Division
Division Department
Site clearance,
environment and
Secretary,
society Division
BUSINESS BLOCK
SUPPORT BLOCK assistant

Subsidiaries of Subsidiaries of Subsidiaries of Real Subsidiaries of In- Subsidiaries of Produc-

Energy Block Power Estates Block dustrial Production tion and Trade of new
Construction Block Block materials Block

Bao Lam Energy., Hoa Binh Automobile

PCC1 - ITS PCC1-Tu Liem Dong Anh Steel Tan Phat Minerals.,
JSC Mechanical., JSC
Tower Co., Ltd JSC
Northern Energy My Dinh Real Estate.,
PCC1 - Ninh Binh PCC1-Ha Dong
Investment., JSC JSC
SUBSIDIARIES BLOCK PCC1 - Hoang Tien Bo Investment
PCC1-Mien Bac Thai Nguyen
Lien Lap Wind Mai Trading., JSC
Power., JSC Galvanized Steel
Tower., JSC
Phong Huy Wind PCC1-My Dinh PCC1-Mien Nam PCC1- Nang Huong
Power., JSC

Phong Nguyen PCC1-Dai Mo

Wind Power., JSC

Trung Thu Vietnam Industri-

Hydropower., JSC al Erection Joint
Stock Company
Song Gam
Hydropower., JSC
 42 PC1 Group Joint Stock Company Annual
Annual Report
Report 2021 4343
2021
42 PC1 Group Joint Stock Company

Board of Directors
Mr. VO HONG QUANG
Year of birth: 1975
Member of the Board of Directors cum Deputy General
Director

Electrical engineer, Master of Business Administration

Jul 2001 to May 2002: Deputy head of Marketing

Department of Power Construction Company No.1;
Jun 2002 to Jun 2007: Head of Southern Board of
Mr. TRINH VAN TUAN
Representatives of Power Construction Company No.1;
Year of birth: 1962 May 2006 to Mar 2008: Member of the Board of Directors
Chairman of the Board of Directors cum Deputy General Director cum Head of Southern Board
of Representatives of Power Construction JSC I;
Electrical Engineer - Master of Business Administration April 2008 until now: Member of the Board of Directors
cum Deputy General Director of PC1 Group., JSC;
From Jun 1999 to Mar 2001: Head of business planning
department of Electric Construction Business;
From April 2001 to Jun 2002: Deputy Director of Electrical Mr. NGUYEN MINH DE
Installation and Construction Business; Year of birth: 1964
From Jul 2002 to Dec 2002: Department of planning and Member of the Board of Directors cum Deputy General
administration of Power Construction Company No.1; Director
From Dec 2002 to Oct 2003: Construction site manager of
500KV Pleiku-Da Nang line of Power Construction Joint Stock Electrical engineer, Master of Business Administration
Company No.1;
From Oct 2003 to Aug 2005: Director of Factory Installation From 1999 to 2002: Site manager of construction
and Civil Construction - PCC1; works - Power Construction Joint Stock Company No.1;
September 2005 to September 2007: Chairman of the Board From 2003 - 2005: Head of Technical Department -
of Directors cum Director of Thang Long TIC., JSC; Electrical Construction and Industrial Works Business;
From Oct 2007 to Mar 2010: Member of the Board of October 2005: Deputy Head of Technical Department –
Directors cum General Director of PCC1; Power Construction Joint Stock Company No.1.;
From April 2010 to Nov 2021: Chairman of the Board of From October 2005 to September 2006: Deputy
Directors cum General Director of PCC1; Director cum Technical Manager - Thang Long TIC., JSC;
From Dec 2021 to present: Chairman of the Board of From October 2006 to July 2008: Director - Thang
Directors of PC1 Group., JSC. Long TIC., JSC ;
From July 2008 to April 2009: Head of Technology
Department - Power Construction Joint Stock Company
No1;
From April 2009 to present: Director of Dong Anh
Steel Tower Co., Ltd;
From 4/2014 to present: Deputy General Director of
Power Construction Joint Stock Company No.1;
From April 2015 to present: Member of the Board of
Directors - PC1 Group., JSC.
Mr. VU ANH DUONG
Year of birth: 1979
Member of the Board of Directors cum General Director Mr. MAI LUONG VIET
Year of birth: 1962
Master of Business Administration
Member of the Board of Directors
From 2003 - 2009: Specialist of General Planning
Department - Power Construction Joint Stock Company Bachelor of Law - Potsdam University (Germany) and
No.1; Hanoi Law University. Bachelor of International Relations
From 2009 - 2012: Deputy Head - Market Planning - Hanoi Bar Association Diplomatic Academy
Department - Power Construction Joint Stock Company
No.1; From 1995 - 2006: Senior legal expert of Law Firm DS
From 2012 - 2013: Head of Market Development Avocats (France);
Department - Power Construction Joint Stock Company From 2006 to 2008: Senior legal specialist at Law Office
No.1; Nguyen Huy Thiep and Associates;
From 2013 to 2018: Head of Energy Project Management From 2006 to 2010: General Director, member of
Board - Power Construction Joint Stock Company No.1 the Board of Directors of Kim Dien Consulting and
From Jan 2019 to Nov 2021: Deputy General Director of Investment Joint Stock Company;
Power Construction Joint Stock Company No.1 From 2008 - present: Managing Director of VietBiz Law
From Dec 2021 to present: General Director of PC1 Firm;
Group., JSC From Jun 2020 to present: Member of the Board of
Directors - PC1 Group., JSC.
44
44 PC1
PC1 Group
Group Joint
Joint Stock
Stock Company
Company Annual Report 2021 45
Annual Report 2021 45

Supervisory Board
Ms. Nguyen Thi Hai Ha Mr. Hoang Van Sang
Year of birth: 1975 Year of birth: 1991
Head of Supervisory Board Member of Supervisory Board

Bachelor of accounting Bachelor of auditing; CPA Vietnam

From May 1998 to Jan 2003: Specialist of Department of From Jul 2013 to Mar 2017: Auditor - AASC Auditing Firm
Finance and Accounting of Power Construction Company Company Limited;
No.1; From Mar 2017 - Nov 2021: Senior Internal Auditor - Power
From Feb 2003 to May 2004: Deputy head of Finance Construction Joint Stock Company No.1;
and Accounting Department of Power Construction Joint From Jun 2020 - present: Member of Supervisory Board -
Stock Company No.1; PC1 Group., JSC;
From Jun 2004 to Oct 2005: Head of Finance and From Dec 2021 - present: Deputy Head of Internal Audit
Accounting Department of Power Construction Joint Stock Department - PC1 Group., JSC.
Company No.1;
From Nov 2005 to April 2008: Specialist of the
Department of General Administration - Post and
Telecommunication Training Center;
From May 2008 to Dec 2009: Head of Finance and
Accounting Department - PCC1-Ba La;
From Jan 2010 to Mar 2010: Specialist of Department of
Finance and Accounting of Power Construction Joint Stock
Company No.1;
From April 2010 to present: Head of Supervisory Board
of PC1 Group., JSC.

Chief accountant
Mr. Hoang Van Cuong

Year of birth: 1990

Ms. Tran Thi Minh Viet
Member of Supervisory Board
Year of birth: 1976
Bachelor of Accounting; CPA Vietnam Chief Accountant

Bachelor of Accounting
From Jan 2012 to Feb 2016: Senior Auditor, Financial Audit
Department of AASC Auditing Firm Company Limited;
From Mar 2016 – Dec 2016: Management Accountant - From 2000 - 4/2003: Specialist in Finance and Accounting
FPT Information System Company Limited; Department of Electrical Construction and Service Enterprise;
From Mar 2019 – May 2020: Company Secretary cum From 04/2003 - 10/2006: Deputy Head of Finance and
Person in charge of administration of Power Construction Accounting Department of Electricity Construction and
Joint Stock Company No.1; Service Enterprise;
From Feb 2017 - Mar 2021: Risk Management and Internal From 05/2006 - 09/2007: Specialist in Finance and
Audit Specialist - Power Construction Joint Stock Company Accounting Department of Electricity Construction Joint
No.1; Stock Company I;
From Jun 2020 - present: Member of Supervisory Board - From October 2007 to March 2014: Deputy Head of
PC1 Group., JSC. Finance and Accounting Department of Power Construction
Joint Stock Company No.1;
From 04/2014 - present: Chief Accountant cum Head of
Finance - Accounting Department of PC1 Group JSC.
46
46 PC1Group
PC1 GroupJoint
JointStock
StockCompany
Company AnnualReport
Annual Report2021
2021 47
47

Mr. VO HONG QUANG

Year of birth: 1975

Executive Board
Member of the Board of Directors cum Deputy General
Director

Electrical engineer, Master of Business Administration

Jul 2001 to May 2002: Deputy head of Marketing

Department of Power Construction Company No.1;
Jun 2002 to Jun 2007: Head of Southern Board of
Mr. VU ANH DUONG Representatives of Power Construction Company No.1;
Year of birth: 1979 May 2006 to Mar 2008: Member of the Board of Directors
Member of the Board of Directors cum General Director cum Deputy General Director cum Head of Southern Board
of Representatives of Power Construction JSC I;
Master of Business Administration April 2008 until now: Member of the Board of Directors
cum Deputy General Director of PC1 Group., JSC;
From 2003 - 2009: Specialist of General Planning
Department - Power Construction Joint Stock Company
No.1; Mr. NGUYEN MINH DE
From 2009 - 2012: Deputy Head - Market Planning Year of birth: 1964
Department - Power Construction Joint Stock Company Member of the Board of Directors cum Deputy General
No.1; Director
From 2012 - 2013: Head of Market Development
Electrical engineer, Master of Business Administration
Department - Power Construction Joint Stock Company
No.1; From 1999 to 2002: Site manager of construction
From 2013 to 2018: Head of Energy Project Management works - Power Construction Joint Stock Company No.1;
Board - Power Construction Joint Stock Company No.1 From 2003 - 2005: Head of Technical Department -
From Jan 2019 to Nov 2021: Deputy General Director of Electrical Construction and Industrial Works Business;
Power Construction Joint Stock Company No.1 October 2005: Deputy Head of Technical Department –
From Dec 2021 to present: General Director of PC1 Power Construction Joint Stock Company No.1.;
Group., JSC From October 2005 to September 2006: Deputy
Director cum Technical Manager - Thang Long TIC., JSC;
From October 2006 to July 2008: Director - Thang
Long TIC., JSC ;
From July 2008 to April 2009: Head of Technology
Department - Power Construction Joint Stock Company
Mr. DANG QUOC TUONG No1;
Year of birth: 1981 From April 2009 to present: Director of Dong Anh
Steel Tower Co., Ltd;
Deputy General Director From 4/2014 to present: Deputy General Director of
Power Construction Joint Stock Company No.1;
Electrical engineer, Master of Business Administration From April 2015 to present: Member of the Board of
From Jul 2004 – Jun 2008: Engineer of Southern Representative Directors - PC1 Group., JSC.
Mr. NGUYEN NHAT TAN
Board - Electricity Construction Joint Stock Company No.1;
From Jul 2008 – Aug 2008: Engineer of Technology Department Year of birth: 1967
- Power Construction Joint Stock Company No.1; Deputy General Director
From Sep 2008 – Oct 2009: Deputy Head of Technology
Department - Electricity Construction Joint Stock Company No.1; Electrical Engineer - Master of Business Administration
From Nov 2009 – Jun 2018: Head of Technology Department -
Electricity Construction Joint Stock CompanyNo.1; From May 1995 to April 1997: Head of Chiem Hoa
From Nov 2018 – Sep 2019: Head of Project Management electricity branch, Tuyen Quang electricity;
Department EPC - Electricity Construction Joint Stock Company From May 1997 to Sep 1998: Head of Tuyen Quang
No.1; electricity and power business department;
From Oct 2019 - present: Deputy General Director of PC1 From Oct 1998 to Jun 2003: Deputy Director of Tuyen
Group., JSC Quang electricity;
From Jul 2003 to Dec 2003: Deputy Secretary of District
Committee of Na Hang, Tuyen Quang;
From Jan 2004 to Mar 2004: Deputy Permanent Secretary
of Town committee of Tuyen Quang;
From April 2004 to April 2009: Chairman of People’s
Committee of Tuyen Quang town, Tuyen Quang province;
From May 2009 to Mar 2010: Deputy Director of
Department of Planning and Investment of Tuyen Quang
province;
From April 2010 to May 2011: Deputy Director of Tuyen
Quang Power Company;
From Jun 2011 to present: Deputy General Director of
PC1 Group., JSC.
48 PC1 Group Joint Stock Company Annual Report 2021 49

Main PC1 Group's

Subsidiaries and Associates No
Name of
Address business Charter capital ownership
Company

PC1 GROUP
sector ratio

Ninh Binh- Lane 2, Xuan Thanh

“
No. 1 Power Street, Tan Thanh Power
On May 10, 2021, PC1 Group’s Board of Directors issued Resolution No. 16 /NQ-PCC1-HDQT approving 8 10,000,000,000 100%
Construction Ward, Ninh Binh City, construction
the policy for Power Construction Company 1 - My Dinh to buy 51% of the shares of Experimental Joint
Co., Ltd Ninh Binh Province
Stock Company, consulting and investing in Hanoi electricity construction and installation (now known
as PC1-ETICH Electrical Experiment Joint Stock Company); 2nd floor, PCC1 Electrical
Thanh Xuan Building, equipment
On June 15, 2021, the Board of Directors of PC1 Group decided to approve the termination of operation Investment and 44 Trieu Khuc Street, and supplies
of the Branch of Power Construction Joint Stock Company No.1 - Yen Thuong Steel Structure Factory; 9 Technology Thanh Xuan Nam and electrical 3,000,000,000 51%
Service., JSC Ward, Thanh Xuan system
On August 11, 2021, PC1 Group’s Board of Directors issued Resolution No. 27/NQ-PCC1-HDQT district, Hanoi configuration
approving the purchase of shares in Trading Equipment Joint Stock Company (ownership rate: 99.9%); services
Nang Huong- No. 583 Km 9,
On September 3, 2021, PC1 Group’s Board of Directors issued Resolution No. 30/NQ-PCC1-HĐQT Building
No. 1 Power Nguyen Trai Street,
v/v Contribute capital to Tan Phat Mineral Joint Stock Company, increase the share ownership rate in 10 management 725,509,851 100%
Construction Van Quan, Ha Dong
Mineral Joint Stock Company. Tan Phat’s assets increased to 57.27%; services

“
Co., Ltd District, Hanoi
Therefore, as of December 31, 2021, PC1 Group has 26 subsidiaries and 02 associates: Group 14, Dong Producing and
Dong Anh Steel
11 Anh town, Dong Anh manufacturing 51,257,437,000 90%
Tower Co., Ltd
district, Hanoi steel poles
Subsidiaries No 138 Tran Binh Installing
Vietnam
street, My Dinh 2 machinery
12 Industrial 5,000,000,000 51%
ward, Nam Tu Liem and industrial
Main PC1 Group's Erection., JSC
Name of district, Hanoi equipment
No Address business Charter capital ownership
Company
sector ratio No. 157, residential Hydropower
quarter 16, Tan project
Dai Mo- No. 1 Cho Street, Dai Mo Trung Thu
Power Thanh ward, Dien investment;
1 Power Construction Ward, Nam Tu Liem 5,000,000,000 100% 13 Hydropower., 290,178,000,000 60%
construction Bien Phu Producing
Co., Ltd District, Hanoi JSC
and trading in
An Khang Building, No. electricity
Mien Nam- No. 1
28, Street 19, Block 5, Power Na Pong village, Ly Hydropower
2 Power Construction 25,000,000,000 100%
An Phu Ward, District construction Bon commune, Bao project
Co., Ltd Northern
2, Ho Chi Minh City Lam district, Cao investment;
14 Energy 277,830,000,000 51%
Mien Bac- No. 1 Cho Street, Dai Mo Bang province Producing
Power Investment., JSC
3 Power Construction Ward, Nam Tu Liem 10,236,009,597 100% and trading in
construction electricity
Co., Ltd District, Hanoi
No 138 Tran Binh Na Pong village, Ly Investment
My Dinh- No. 1 Bon commune, Bao management
street, My Dinh 2 ward, Power
4 Power Construction 15,000,000,000 100% Lam district, Cao and
Nam Tu Liem district, construction Bao Lam
Co., Ltd 15 Bang province hydropower 34,000,000,000 99.90%
Hanoi Energy., JSC
project
No. 32, Phuong Canh operation
Tu Liem- No. 1
Street, Group 2, Xuan Power consultancy
5 Power Construction 10,549,569,422 100%
Phuong Ward, Nam Tu construction
Co., Ltd Cua village, Huong
Liem District, Hanoi
Investment in
Lien Lap Wind Tan commune,
Ha Dong- No. 1 Van La Street, Phu La 16 wind power 592,150,150,000 55.54%
6 Power Construction Ward, Ha Dong District,
Power
5,942,874,315 100%
Power., JSC Huong Hoa district,
construction projects
Co., Ltd Hanoi Quang Tri province

Hoang Mai- No. 471, Nguyen Tam No. 1, Alley 23,

No. 1 Power Trinh Street, Hoang Van Power Phong Nguyen Hung Vuong Street, Investment in
7 5,000,000,000 100% 17 Wind Power., Khe Sanh Town, wind power 573,567,320,000 54.73%
Construction Co., Thu Ward, Hoang Mai construction
Ltd district, Hanoi JSC Huong Hoa District, projects
Quang Tri Province
50 PC1 Group Joint Stock Company Annual Report 2021 51

Associates
Subsidiaries and Associates

PC1 GROUP No
Name of
Company
Address
Main
business
sector
Charter capital
PC1 Group's
ownership
ratio
Main PC1 Group's
Name of No. 52, Kim Dong Mining,
No Address business Charter capital ownership
Company Cao Bang Iron Street, Hop Giang processing
sector ratio 1 430,063,660,000 25.09%
and Steel., JSC ward, Cao Bang city, and trading in
No. 56 Le Duan, Khe Cao Bang province minerals
Phong Huy Investment in
Sanh Town, Huong
18 Wind Power., wind power 573,915,380,000 54.70% 21st floor, Capital
Hoa District, Quang Tri
JSC projects Town Building, 109 Real estate
Province CT2 Real Estate
2 Tran Hung Dao, Cua investment 612,245,000,000 49%
1st floor, My Dinh Investment., JSC
Nam Ward, Hoan and trading
Plaza, 138 Tran Binh, Real estate Kiem District, Hanoi
My Dinh Real
19 ward. My Dinh 2, investment and 180,000,000,000 99.39%
Estate., JSC
district. Nam Tu Liem, trading
Hanoi
Hoa Binh No. 44 Trieu Khuc
Real estate
Automobile Street, Ward. Thanh
20
Mechanical., Xuan Nam, district.
investment and 119,000,000,000 99.83% Shareholder structure, process of charter capital increase
trading
JSC Thanh Xuan, Hanoi

21
Tien Bo
Investment
No. 1, lane 321, Vinh
Hung street, ward.
Thanh Tri, district.
Real estate
investment and 120,000,000,000 99.95%
PC1 GROUP
Trading., JSC trading
Hoang Mai, Hanoi
Share information
Group 22, Song Bang Mineral
Tan Phat
22 Ward, Cao Bang City, exploration and 250,000,000,000 57.27%
Minerals., JSC
Cao Bang Province exploitation
Na Roa village, Bao Hydropower
Toan commune, Bao project Name of share PC1 Group Joint Stock Company
Song Gam
Lac district, Cao Bang investment;
23 Hydropower., 30,000,000,000 99.00%
province Producing and
JSC Type of share Common share
trading in
electricity
Holding No. 1, lane 120 Dinh Stock code PC1
Real estate
Commercial Cong, Phuong Liet
24 investment and 150,000,000,000 99.75%
Equipment., ward, Thanh Xuan
trading Par value of share 10,000 VND/ share
JSC district, Hanoi city
PC1-Etich No 138 Tran Binh
Power Starting date of listing / registering for trading 16/11/2016
Electrical street, My Dinh 2
25 transmission and 10,000,000,000 51%
Experiment., ward, Nam Tu Liem
distribution
JSC district, Hanoi Total outstanding shares 235,159,649 shares
Lot CN2-1 and CN2-2
Thai Nguyen Producing and
Diem Thuy B Total outstanding shares 0 share
manufacturing
Galvanized Industrial Zone, Diem
26 steel columns, 30,000,000,000 90%
Steel Tower., Thuy Commune, Phu
Binh District, Thai
hot-dip Number of freely transferable shares 235,159,649 shares
JSC galvanizing
Nguyen Province
Number of shares restricted to transfer 0 share
52 PC1 Group Joint Stock Company Annual Report 2021 53

Shareholder structure, process of charter capital increase History of capital increase

PC1 GROUP Year

Charter capital
(VND)
Contents of capital increase

2005 50,000,000,000 Equitization

Name of share PC1 Group Joint Stock Company
Issuing to existing shareholders to invest in Nang Huong
2008 66,670,000,000
Apartment and service complex project
Current listed volume 235,159,649
Issuing to existing shareholders and private placement to invest
Current circulating volume 235,159,217 2009 100,000,000,000 in phase 2 of Nang Huong Residential and Commercial Service
Project and supplement working capital for the Company
Price volatility 20,464 (208.35%)
Issuing to existing shareholders to mobilize investment capital
2011 140,000,000,000
Highest correction closing price 41,450 VND (16/12/2021) for My Dinh project and other investment project

Lowest correction closing price 17,805 VND (28/01/2021) Issuing to pay stock dividends and bonus shares to existing
2013 180,000,000,000
shareholders
The maximum trading volume 14,747,056 shares (22/10/2021)
2014 201,000,000,000 Paying stock dividends to existing shareholders
The minimum trading volume 138,900 shares (21/07/2021)
2015 341,694,850,000 Issuing and paying stock dividends to existing shareholders

Issuing to pay stock dividends and bonus shares to existing

Jun 2016 637,821,960,000
shareholders

Issuing separately to mobilize capital to implement investment in

Aug 2016 752,629,140,000
Bao Lam 3 Hydropower Project

Jun 2017 978,413,200,000 Issuing shares to pay dividends of 2016

Issuing separately to supplement capital for investment in Mong
Oct 2017 1,154,528,420,000 An hydropower project (Bao Lam 4), Bao Lac B hydropower plant
(Bao Lam 2A) and Thanh Xuan real estate project
2018 1,327,702,940,000 Issuing shares to pay dividends of 2017

2019 1,593,239,290,000 Issuing shares to pay dividends of 2018

2020 1,911,811,590,000 Issuing shares to pay dividends of 2019

PC1 stock trading price chart in 2021 (Thousand VND)
Issuing shares to pay dividends of 2020 and issuing shares under
2021 2,351,596,490,000
an Employee Stock Option Program (ESOP)
Lịch sử tăng vốn
2,352
Historical chart of capital increase of PC1 Group (Billion VND)
1,912
1,593
1,328
1,155
978.4
752.6
637.8
341.7
180 201
50 66.7 100 140
PC1 stock trading volume chart in 2021 (stocks)
54 PC1 Group Joint Stock Company Annual Report 2021 55

Shareholder structure, process of charter capital increase Shareholders Relationship

PC1 GROUP On April 24, 2021, PC1 Group Joint Stock Company held the Annual General Meeting of Shareholders
in 2021. The meeting approved the following 15 contents:
Shareholder structure
1. Report on production and business results in 2020
2. Business plan in 2021
3. Profit distribution plan and dividend payment in 2020
4. The plan to sell treasury shares and issue new shares to employees under the Employee
Shareholder structure according to the list of shareholders of PC1 Group as of March 15, 2022 Selection Program (ESOP)
5. Energy Investment
Tỷ lệ sở hữu/ Vốn điều lệ
6. Real Estate Investment
7. Chairman of the Board of Directors concurrently the General Director of the company
21,01% 8. Remuneration of the Board of Directors, Supervisory Board in 2021
9. Change of company name
10. Amendment and supplementation of registered business lines
11. Approving the Regulations under the authority of the General Meeting of Shareholders: Internal
governance regulations, operation regulations of the Board of Directors and operation regulations
61,67%
of the Supervisory Board
17,32%
12. Selection of auditors for financial statements in 2021
13. Financial statements for 2020 audited by AASC Auditing Firm Co., Ltd
14. Report of the Board of Directors on the results of the implementation of the goals and tasks
in 2020 and the plan for 2021
15. Appraisal report of the Company’s Supervisory Board at the Annual General Meeting of
Shareholders in 2021
Ông Van
Trinh Trịnh Văn Tuấn
Tuan Cổ đông HEHS
BEHS Cổ đông khác
Orthers

Investor Relations (IR) activities during the year

Tỷ lệ sở hữu/ Vốn điều lệ
One of the prerequisites for a business to be more
5,20%
and more trusted by investors is the transparency
and timeliness of its information. Recognizing the
importance of maintaining regular information
disclosure activities - promoting investor relations,
PC1 Group always proactively updates widely and
accurately to interested shareholders and investors
through direct and indirect meetings via website,
social networks as well as other forms.
94,08%

Domestic shareholders
Cổ đông trong nước Foreign
Cổ đông shareholders
nước ngoài
56 PC1 Group Joint Stock Company Annual Report 2021 57

Good compliance with the regulations on information disclosure on the

stock market:

- The staff in charge of Investor Relations of PC1 Group is knowledgeable and always well
implemented the legal provisions on information disclosure in the Securities Law 2019, Circular
No. 96/2020/TT-BTC, Decision No. 340/QD-SGDHCM, ...

- The Company always fully and timely discloses periodic announcements such as: Quarterly
financial statements, reviewed semi-annual financial statements, audited annual financial
statements, 2019 annual reports, information disclosure about organization of General Meeting
of Shareholders, every 06 months reporting the progress of the use of capital obtained from
the private offering of securities, ... and other unusual announcements.

Investor News

In 2021, when the form of direct exchange is limited, the fact that PC1 Group always has
quarterly Investor Newsletters published on the company’s website on a regular basis has
brought great value to investors in this period. The Quarterly Investor Newsletter has
summarized in-depth and timely the situation of the Company’s business and investment
activities, new advancement opportunities that the company has had in each period of a year
as well as explanation on difficulties that the company is facing in four main business areas
that the Company is implementing. The periodic publication of the newsletter has enabled
investors to closely follow the business performance, trust in the management capacity of the
Executive Board as well as make timely investment decisions.

Annual report

For PC1 Group, the Annual Report is not only a periodic report describing the business in
accordance with the legal framework, but the PC1 Group’s annual report is invested and
elaborated by the staff as an enthusiastic publication to introduce the image of a dynamic,
professional and eager PC1 Group to reach the heights. PC1 Group’s 2017 Annual Report and
2019 Annual Report are honored to be in the Top 10 of the Best Annual Reports voted by the
Ho Chi Minh City Stock Exchange.

Mr. Trinh Van Tuan on behalf of PC1 Group received the Top 10
Best Annual Report of the Mid-Cap Group
58 PC1 Group Joint Stock Company Annual Report 2021 59

Resolutions / decisions of the Board of Directors

Corporate governance report

PC1 GROUP No.

Resolution
/ Decision
number
Date Content
Adoption
rate

Contributing charter capital for the third time in 2021

Board of Directors 1 01/NQ-PCC1-HDQT 12/01/2021 100%
at Lien Lap Wind Power Joint Stock Company
Contributing charter capital for the third time in 2021
2 02/NQ-PCC1-HDQT 12/01/2021 100%
at Phong Huy Wind Power Joint Stock Company
Member of the Board Ownership per-
No. Title Contributing charter capital for the third time in 2021
of Directors centage (%) 3 03/NQ-PCC1-HDQT 12/01/2021 100%
at Phong Nguyen Wind Power Joint Stock Company
1 Mr. Trinh Van Tuan Chairman 21.01
Implementation of contracts and transactions be-
2 Mr. Nguyen Minh De Executive Board Member 1.33 4 04/NQ-PCC1-HDQT 20/01/2021 tween Power Construction Joint Stock Company No. 100%
1 and related companies
3 Mr. Vo Hong Quang Executive Board Member 1.88
Contributing charter capital for the 4th time in 2021
4 Mr. Vu Anh Duong Executive Board Member 0.14 5 05/NQ-PCC1-HDQT 09/02/2021 100%
at Lien Lap Wind Power Joint Stock Company
5 Mr. Mai Luong Viet Non-executive Board Member 0 Contributing charter capital for the 4th time in 2021
6 06/NQ-PCC1-HDQT 09/02/2021 100%
at Phong Huy Wind Power Joint Stock Company
Board of Directors meetings Contributing charter capital for the 4th time in 2021
7 07/NQ-PCC1-HDQT 09/02/2021 100%
In 2020, the Board of Directors held 06 meetings and 20 times to collect written opinions of the at Phong Nguyen Wind Power Joint Stock Company
Board of Directors. Meetings of the Board of Directors as well as written opinions of the Board of
8 08/NQ-PCC1-HDQT 09/02/2021 Guarantee for Bao Lam Energy Joint Stock Company 100%
Directors were in compliance with the provisions of law and Charter of the Company.
Appointing Mr. Le Thanh Nghi to hold the position of
Number of 9 09/NQ-PCC1-HDQT 24/02/2021 100%
Proportion of The reason Deputy General Director of the Company
Member of the Board meetings of the
No. attendance / for not Plan to hold the Annual General Meeting of
of Directors Board of Directors 10 10/NQ-PCC1-HDQT 02/03/2021 100%
opinion gathering attending Shareholders in 2021
attended/ consulted
Change the content of business registration and
1 Mr. Trinh Van Tuan 26/26 100% -
11 11/NQ-PCC1-HDQT 10/03/2021 amend the Charter of Mien Nam- No. 1 Power 100%
2 Mr. Nguyen Minh De 26/26 100% - Construction Co., Ltd
Commitment to guarantee for Investment and
3 Mr. Vo Hong Quang 26/26 100% -
12 12/NQ-PCC1-HDQT 16/03/2021 Technology Services Joint Stock Company to borrow 100%
4 Mr. Vu Anh Duong 26/26 100% - capital and guarantee at banks
Termination of operation of Southern branch of My
5 Mr. Mai Luong Viet 26/26 100% - 13 13/NQ-PCC1-HDQT 19/03/2021 100%
Dinh- No. 1 Power Construction Co., Ltd

Supervisory activities of the Board of Directors for the Executive Board Approving the investment plan for the system of
14 14/NQ-PCC1-HDQT 29/03/2021 equipment and technology for submarine cable 100%
The BOD regularly maintains supervision of the Executive Board through the inspection and technology
control of the Supervisory Board, as well as organizes meetings to assess and draw experience
Contents of the Annual General Meeting of
in implementing seriously the resolutions of the BOD in the auditing of Financial Statements, and 15 15/NQ-PCC1-HDQT 02/04/2021 100%
Shareholders 2021
in the production and business planning of the Group;
Approving the policy for My Dinh- No. 1 Power
In 2021, the BOD focused on directing and monitoring the activities of the Executive Board in the Construction Co., Ltd to buy back shares of Hanoi
16 16/NQ-PCC1-HDQT 10/05/2021 100%
following major activities: Electrical Testing, Consulting and Investment Joint
Stock Company
1 Organizing the Annual General Meeting of Shareholders 2021 on April 24, 2021
Approving transactions related to loans of Lien Lap
2 Issue the new organizational chart of the Group; 17 17/NQ-PCC1-HDQT 19/05/2021 Wind Power Joint Stock Company with foreign credit 100%
institutions
3 Organization and arrangement of apparatus and personnel at the Group and some member Approving transactions related to loans of Phong
units; 18 18/NQ-PCC1-HDQT 19/05/2021 Huy Wind Power Joint Stock Company with foreign 100%
credit institutions
4 Invest in machine and equipment for the Group’s production and business activities; Approving transactions related to loans of Phong
5 Contributing capital, investing in companies according to the Group’s strategic orientation. 19 19/NQ-PCC1-HDQT 19/05/2021 Nguyen Wind Power Joint Stock Company with 100%
foreign credit institutions
60 PC1 Group Joint Stock Company Annual Report 2021 61

Appointing Mr. Vu Anh Duong to hold the position of

Corporate governance report 37 35/QD-PCC1-HDQT 22/10/2021
General Director of the Company from December 1, 2021
100%

PC1 GROUP
Contributing charter capital at Holding Commercial
38 36/NQ-PCC1-HDQT 08/11/2021 100%
Equipment Joint Stock Company
Approving the results of the sale of treasury shares and
the issuance of new shares to employees, according to the
Resolutions / decisions of the Board of Directors 39 37/QD-PCC1-HDQT 11/11/2021 Employee Stock Ownership Plan (ESOP program) after the 100%
expiration of the subscription period and the handling of
the number of shares. not distributed at all
Resolution Approving the results of issuing shares to pay dividends
Adoption
No. / Decision Date Content and the results of selling treasury shares, the results of
rate 40 38/NQ-PCC1-HDQT 17/11/2021 100%
number issuing shares under the Employee Stock Ownership Plan
(ESOP program)
Promulgating the Code of Conduct and anti-corruption
20 20/NQ-PCC1-HDQT 19/05/2021 100%
policy
41 39/NQ-PCC1-HDQT 30/11/2021 Issuing a new organizational chart of the Company 100%
Increase share ownership rate in Tan Phat Mineral Joint
21 21/NQ-PCC1-HDQT 31/05/2021 Stock Company (Ownership rate of PC1 Group after 100% Establishment of the Company's Internal Audit
purchasing share: from 51%-60% of charter capital)
42 40/QD-PCC1-HDQT 30/11/2021 100%
Department
Selection of auditors for the Company's 2021 financial
22 22/NQ-PCC1-HDQT 08/06/2021 100% 43 41/QD-PCC1-HDQT 30/11/2021 Appointment of Director of EPC Department 100%
statements (KPMG Vietnam Co., Ltd.)
Liquidation of fixed assets, tools and supplies received from
44 42/QD-PCC1-HDQT 30/11/2021 Appointment of Head of Economic Department 100%
23 22A/NQ-PCC1-HDQT 01/07/2021 the branch of Power Construction Joint Stock Company No. 100%
1 - Yen Thuong Steel Structure Factory
45 43/QD-PCC1-HDQT 30/11/2021 Appointment of Head of Technical Department 100%
Change of Supervisors at Tu Liem- No. 1 Power
24 23/QD-PCC1-HDQT 10/08/2021 100%
Construction Co., Ltd
Appointment of Director of Business and Trade
46 44/QD-PCC1-HDQT 30/11/2021 100%
Change of Supervisors at My Dinh- No. 1 Power Department
25 24/QD-PCC1-HDQT 10/08/2021 100%
Construction Co., Ltd
47 45/QD-PCC1-HDQT 30/11/2021 Appointment of Head of Finance Department 100%
Change of representative of capital at VINAINCON
26 25/QD-PCC1-HDQT 10/08/2021 100%
Centrifugal Concrete Joint Stock Company
48 46/QD-PCC1-HDQT 30/11/2021 Appointment of Head of Internal Audit Department 100%
Dismissing Deputy Director of Mien Bac- No. 1 Power
27 26/NQ-PCC1-HDQT 10/08/2021 100%
Construction Co., Ltd
Capital investment to buy 30% of shares in Western Pacific
Buy shares in Holding Commercial Equipment Joint Stock 49 47/NQ-PCC1-HDQT 30/11/2021 Joint Stock Company (Industrial zone investment and 100%
28 27/NQ-PCC1-HDQT 11/08/2021 100% business, Logictics)
Company (ownership rate 99.9%)
Appoint a representative of capital and key personnel at Investing to buy shares in Western Pacific Joint Stock
29 28/QD-PCC1-HDQT 11/08/2021 100% 50 48/NQ-PCC1-HDQT 30/11/2021 Company and appointing a capital representative of the 100%
Holding Commercial Equipment Joint Stock Company
Company
Approving the implementation of the Stock Issuance Plan
30 29/NQ-PCC1-HDQT 03/09/2021 to pay dividends, Selling treasury shares, and Issuing shares 100% Approving the transfer plan and investment signing
under the Employee Stock Option Program (ESOP) 51 49/NQ-PCC1-HDQT 10/12/2021 documents to buy shares at Western Pacific Joint Stock 100%
Company
Contribute capital to Tan Phat Mineral Joint Stock Company
31 30/NQ-PCC1-HDQT 03/09/2021 100% Contributing charter capital for the second time at Holding
and the contents related to project investment 52 50/NQ-PCC1-HDQT 14/12/2021 100%
Commercial Equipment Joint Stock Company
Contributing charter capital for the first time in 2021 at Tan
32 31/NQ-PCC1-HDQT 03/09/2021 100% Dismissing the Director and appointing the Deputy
Phat Mineral Joint Stock Company
53 51/NQ-PCC1-HDQT 14/12/2021 Director in charge of Tu Liem- No. 1 Power Construction 100%
PC1 Group's credit commitments with Vietnam Joint Stock Co., Ltd
33 32/NQ-PCC1-HDQT 03/09/2021 Commercial Bank for Industry and Trade - Thanh An Branch 100%
related to Tan Phat Mineral Joint Stock Company Dismissing the Director and appointing the Deputy
54 52/NQ-PCC1-HDQT 14/12/2021 Director in charge of Ha Dong - No. 1 Power Construction 100%
Approving the list of employees eligible to participate in the Co., Ltd
34 33/QD-PCC1-HDQT 14/09/2021 stock issuance program, selling treasury shares under the 100%
Employee Stock Option Program (ESOP) Resignation and appointment of Director of Dai Mo - No. 1
55 53/NQ-PCC1-HDQT 14/12/2021 100%
Power Construction Co., Ltd
Dismissing Mr. Le Thanh Nghi from the position of Deputy
35 34/QD-PCC1-HDQT 22/10/2021 100% Appointment of Director of Tu Liem - No. 1 Power
General Director of the Company 56 54/NQ-PCC1-HDQT 17/12/2021 100%
Construction Co., Ltd
Extension of time for Chairman of the Board of Directors to
concurrently hold the position of General Director and for Appointment Director of Ha Dong - No. 1 Power
36 34A/QD-PCC1-HDQT 22/10/2021 100% 57 55/NQ-PCC1-HDQT 17/12/2021 100%
Mr. Trinh Van Tuan to stop holding the position of General Construction Co., Ltd
Director of the Company from December 1, 2021
Dismissing and appointing Chief Accountant, Deputy
58 56/NQ-PCC1-HDQT 17/12/2021 100%
Director of Dai Mo - No. 1 Power Construction Co., Ltd
62 PC1 Group Joint Stock Company Annual Report 2021 63

Corporate governance report Restructuring the company’s organizational chart:

PC1 GROUP
+ Restructuring the organization chart according to the Group’s development strategy in the new
period.
+ Appointing Mr. Vu Anh Duong as General Director from December 1, 2021. Completing changes
to the business registration certificate when changing the legal representative.
Supervisory Board
+ Changed the Group’s name and brand identity from March 2, 2022.

Supervisory Board meetings

Number of nvestment in energy, real estate and minerals:
Member of the Supervisory meetings of the Proportion of Voting
No.
Board Supervisory attendance percentage
Board + Completing power generation of 03 wind power plants on schedule on October 31, 2021,
continuing to search and develop renewable energy projects in advantageous areas according
1 Ms. Nguyen Thi Hai Ha 02/02 100% 100%
to strategic goals;
2 Mr. Hoang Van Cuong 02/02 100% 100% + Capital contribution in Western Pacific Joint Stock Company, which has land fund and projects,
experience in Logistics and industrial real estate, and bought 99.9% of shares in Holding
3 Mr. Hoang Van Sang 02/02 100% 100%
Commercial Equipment Company- which currently owns 1.5 hectares of residential real estate
Supervisory activities of the Supervisory Board for the Board of in Thanh Xuan District and continues to expand its search for land in the future.
Directors, the Executive Board + Contributing capital to purchase additional shares to hold 57% of the capital at Tan Phat Mineral
Planning and implementing the Company’s strategy; Joint Stock Company to implement the open-pit mining project of Nickel - Copper minerals in the
The management and administration, business targets of the Company; area of Quang Trung and Ha Tri communes, Ha An District, Cao Bang.
Complying with the internal regulations and regulations of the company, the Resolution of the
General Meeting of Shareholders, the observance of the Company’s Charter, the State Law of
the Board of Directors and the Executive Board in the management of production and business Assessment of compliance with the laws of the State
activities. .
Compliance control is carried out in accordance with State regulations:
Reviewing the reasonableness, legitimacy, honesty and level of care in the management and
administration of business activities. - Business: Business activities of PC1 Group are in accordance with the Business Registration
Reviewing the system, consistency and suitability of accounting, statistical and financial reporting. Certificate No. 0100100745.
Appraisal of financial statements to assess the truthfulness and reasonableness of financial data,
- Compliance with tax administration laws: In 2021, the Company implemented Decision No.
in accordance with accounting standards, regimes and policies and regulations of the State.
13433/QD-CTHN-TTKT10 dated April 28, 2021 of Hanoi Tax Department on inspection of tax
Reviewing, examining and evaluating the effectiveness and efficiency of the Company’s internal
compliance and VAT refund at the Company in the period of 2018; 2019; 2020. Basically, the
audit and risk management system.
Company has complied with the provisions of the Tax Administration Law and tax guidance
Evaluating the implementation of resolutions of the Annual General Meeting of circulars, implemented the regime of bookkeeping, accounting accounts, and financial statements
Shareholders 2021 according to the regulations of the Ministry of Finance and accounting standards.
On the basis of Resolution No. 01/NQ-PCC1-ĐHDCD dated April 24, 2021, implemented by the Board - Compliance in the field of investment: The wind power projects Lien Lap, Phong Huy and Phong
of Directors and the Executive Board of the Group, the results are as follows: Nguyen have been completed and generated on schedule and in compliance with the State’s
Plan to increase charter capital regulations in the field of investment.

The implementation of State budget obligations

Complete the charter capital increase from 1,912 billion VND to 2,352 billion VND in the form of:
+ Paying dividends in 2020 in shares for existing shareholders: VND 382 billion. Tax payables Tax payables
+ Issuing new shares for employees under the ESOP program: VND 57 billion, creating a very Taxes Taxes
(billion VND) (billion VND)
positive motivation for employees.
I/ Value added tax 407.310 II/ Import and export tax 0.762

Amendment of the company’s charter of organization and operation: III/ Corporate income tax 66.688 IV/ Personal income tax 12.542

V/ Real estate tax and land rent 5.541 VI/ Natural Resources tax 47.787
Completed amending some articles of the Charter of organization and operation of the Company
in accordance with the Resolution of the Annual General Meeting approved. VII/ Other taxes 24.908 TOTAL 565.538
64 PC1 Group Joint Stock Company Annual Report 2021 65

Corporate governance report Appraisal of financial statements in 2021

PC1 GROUP
The Supervisory Board has appraised the financial statements of the Company in the fiscal year
2021, ended December 31, 2021 and agreed to confirm the specific contents as follows:

The financial statements fully reflect the production, business and financial situation of the
Monitoring results for members of the Board of Directors, Company, presented in the reporting formats specified in Circular 200/2014/TT-BTC dated
members of the Executive Board December 22, 2014 of the Ministry of Finance.
The report has reflected honestly and reasonably on all material aspects, the financial situation
For members of the Board of Directors: as at 31/12/2021.

Number of members of the BOD of the Company: 05 members The recording, opening of accounting books, classification of economic contents according to
the accounting standards issued by the Ministry of Finance.
- The members of the Board of Directors have worked actively with a high sense of responsibility,
made timely governance resolutions. Resolutions and Decisions of the Board of Directors were The Company has made periodic reports and disclosures of organizations listed on the Ho
issued in accordance with the provisions of law and the Company Charter, closely followed the Chi Minh Stock Exchange in accordance with the regulations on information disclosure on the
Resolution of the General Meeting of Shareholders in 2021. stock market.
- In 2021, the Board of Directors held 06 regular meetings, in addition, the Board of PC1’s annual report is also considered transparent in the stock market.
Directors also consulted in writing to promptly promulgate Resolutions and Decisions on the
implementation of the task of managing and operating activities of the Company (issued 58
Resolutions, Decisions). Recommendations
Assigning tasks to members of the Board of Directors so that members focus on performing In order to continue developing
the work of the Company related to the fields that individual members are in charge of. the Group’s brand in the business - Sticking to the strategic goals for 2021-2025 with a vision to
Implementing the resolution of the Annual General Meeting of Shareholders in 2021. areas, grow revenue and profit, 2035, continuing to provide solutions that are realistic and in line
increase benefits for shareholders, with national and global economic development policies in the
Approving contents under the authority of the Board of Directors, supervising activities of the Supervisory Board has some new period, solutions to overcome difficulties in the post-covid
Executive Board of the Company. recommendations to the Group on period.
the following contents: - Continue to improve the Group’s system management capacity:
For the Executive Board of the Company: Develop high-quality human resources, digitize PC1’s activities.
- Develop an effective financial plan, provide solutions to raise
The General Director together with members of the Executive Board actively implemented capital from different sources to ensure timely response to
resolutions of the Board of Directors to achieve objectives approved by the General Meeting of production and business activities and effective use of capital in
the field of investment. private.
Shareholders. During the past year, which was a very difficult year for the economy due to the - Strengthening risk management and internal control, contributing
impact of Covid-19 pandemic and natural disasters, in order to achieve business results, the to improving corporate governance; Promote culture and raise
Executive Board has tried to make efforts, create and implement solutions responding to market awareness of employees in risk management at the Group on a
developments, be flexible in operating production and business activities, control costs, promote regular and professional basis.
the Company’s resources, closely follow and fulfill business and invest targets. Specifically: - Continue to well implement policies with employees and have
timely solutions to attract and recruit capable and qualified
Regularly organizing weekly, monthly, and quarterly business plan implementation meetings employees to contribute to the Group’s development and avoid
to evaluate the business performance, invest in projects to evaluate the shortcomings and the case of some talented employees. management, expertise
moved to another company.
limitations in order to provide timely solutions, remove difficulties and overcome it.
Sticking to and implementing the goals of the Company’s business development strategy.
Leaders of the Block always closely operate the fields in charge to achieve set-out business
goals
66 Công ty CP Tập đoàn PC1 Annual Report 2021 67
66 PC1 Group Joint Stock Company

Transactions between the Company and related parties Number of shares

Number of shares
owned at the
Title / owned at the end of
beginning of the Reasons for
No. Person Relationship the period
period
Transactions with an insider
change
Number of Ratio Number of Ratio
shares (%) shares (%)
Selling 444,120
Transactions of insiders and related person of insiders in 2021 shares;
Deputy General Receive dividends
Number of shares
10 Vu Van Tu 444,129 0.232 50,010 0.021
Director in shares of 1 CP;
Number of shares
Person owned at the Buy 50,000 ESOP
Title / owned at the end of
performing beginning of the Reasons for shares.
No. Relationship with the period
the trans- period change
an insider Son of Mr. Vu Receive stock
action Number of Ratio Number of Ratio 11 Vu Anh Hieu Van Tu - Deputy 107,640 0.056 143,168 0.061 dividend of 21,528
shares (%) shares (%) General Director shares;
Receive stock Selling 6,179,041
dividends 7,310,370 shares;
Trinh Van Chairman of the shares; Buy more Receive stock
1 34,607,733 18.101 49,411,927 21.012 Nguyen Deputy General
Tuan BOD 7,493,824 shares 12 6,179,041 3.232 1,061,808 0.452 dividends 935,808
Nhat Tan Director
(of which 870,663 shares;
shares of ESOP). Buy 126,000 ESOP
shares.
Wife of Mr.
Receive dividends
Trinh Van Tuan - Receive stock
2 Le Thi Thoi 3,686,709 1.928 4,424,050 1.881 in shares 737,341 Dang Quoc Deputy General
Chairman of the 13 258,442 0.135 468,130 0.199 dividends 51,688
shares Tuong Director
BOD shares;
Son of Mr. Wife of Mr. Dang
Trinh Ngoc Trinh Van Tuan- Buy 12,000 shares Nguyen Thi Quoc Tuong - Buy 158,000 ESOP
3 0 0 12,000 0.005 14 9,004 0.005 19,804 0.008
Anh Chairman of the of ESOP Hoi Deputy General shares.
BOD Director
Receive stock Head of Receive stock
Member of the Nguyen Thi
Nguyen dividends 494,772 15 Supervisory 27,872 0.015 106,446 0.045 dividends of 1,800
4 BOD cum Deputy 2,473,862 1.294 3,126,634 1.330 Hai Ha
Minh De shares; Buy 158,000 Board shares;
General Director
shares of ESOP
Husband of
Receive stock Ms. Nguyen Thi
Nguyen Van Buy 9,000 shares of
Member of the Buy 158,000 dividends 711,954 16 Hai Ha -Head 37,164 0.019 44,596 0.019
Vo Hong Trung ESOP.
5 BOD cum Deputy shares of 1.862 4,429,724 1.884 shares; of Supervisory
Quang
General Director ESOP Buy 158,000 shares Board
of ESOP
Member of
Hoang Van Buy 7,090 shares of
Wife of Mr. Vo Hong 17 Supervisory 0 0 7,090 0.003
Sang ESOP
Quang - Member Receive stock Board
Nguyen Thi
6 of the BOD cum 321,127 0.168 385,352 0.164 dividends 64,225
Dung Receive stock
Deputy General shares.
Director dividends 33,823
Tran Thi Chief
18 169,116 0.088 295,939 0.126 shares;
Minh Viet Accountant
Buy 14,500 shares Buy 93,000 shares
Sister of Mr. Vo
(including 5,000 of ESOP
Hong Quang -
ESOP shares);
7 Vo Thi Anh Member of the 0 0 16,400 0.007 Brother-in-law
Receive a stock Receive stock
BOD cum Deputy Nguyen of Ms. Tran Thi
dividend of 1,900 19 108,646 0.057 130,375 0.055 dividend 21,729
General Director Hong Thai Minh Viet -Chief
shares. shares
Accountant
Member of the Receive stock
Vu Anh Authorized
8 BOD cum General 102,333 0.054 328,799 0.140 dividends 20,466 Nguyen
Duong Person to Buy 80,000 shares
Director shares. 20 Thanh 0 0 80,000 0.034
disclose of ESOP
Huong
Mother-in-law of information
Mr. Vu Anh Duong Receive stock
Le Thi Person in charge
9 - Member of the 36,001 0.019 43,201 0.018 dividends 7,200
Thanh Vu Thi Lan of governance Buy 4,090 shares of
BOD cum General shares. 21 0 0 4,090 0.002
Director My cum company ESOP
secretary
68 Công ty CP Tập đoàn PC1 Annual Report 2021 69
68 PC1 Group Joint Stock Company

Transactions between the Company and related parties Name of Relationship

No. organization with the Address Content
/ individual company
Mien Bac- Purchase: Construction volume,
Transactions
No.1 Power Cho Street, Dai Mo consulting site clearance
7 Construction Subsidiary Ward, Nam Tu Liem 241,910,835,289 VND
Company District, Hanoi Sale: Land rent, guarantee fee,
Transactions, contracts of the Company with related persons Limited other: 247,630,519 VND
Tu Liem- No. 32, Phuong
Purchase: Construction volume
In 2021, there are no transactions related to the Chairman of the BOD, members of the BOD, No.1 Power Canh Street, Group
73,411,593,241 VND
Executive Board, Chief Accountant and related persons. However, there are transactions of 8 Construction Subsidiary 2, Xuan Phuong
Sale: Land rent, guarantee fee,
purchase and sale of goods, services, construction of works with subsidiaries and associates. Company Ward, Nam Tu Liem
other 1,176,023,020 VND
Limited District, Hanoi
Transactions between the Company and its subsidiaries and associates arise regularly; always Ha Dong-
comply with the provisions of law and the provisions of the Company Charter on the relationship of Purchase: Construction volume:
No.1 Power Van La Street, Phu La
Parent Company – subsidiary, associated companies and provisions of Enterprise Law. Transactions 150,706,570,248 VND
9 Construction Subsidiary Ward, Ha Dong District,
between the Company and its subsidiaries and associates in 2021 were complied with the Resolution Sale: land rent, guarantee fee:
Company Hanoi
No. 04/NQ-PCC1-HDQT dated January 20, 2021, regarding the policy of implementing transaction 680,569,038 VND
Limited
contracts between Power Construction Joint Stock Company No.1 and related enterprises.
Ninh Binh-
Lane 2, Xuan Thanh Street, Purchase: Construction volume
No.1 Power
Tan Thanh Ward, Ninh 137,408,447,032 VND
Name of Relationship 10 Construction Subsidiary
Binh City, Ninh Binh Prov- For sale: Land rent 67,666,756
No. organization with the Address Content Company
ince VND
/ individual company Limited

Mien Nam- Trung Thu No. 157, residential quar-

An Khang Building, No. Purchase volume of construc- For sale: office for rent
No.1 Power 11 Hydropower., Subsidiary ter 16, Tan Thanh ward,
28, Street 19, Block 5, tion: 372,534,261,559 VND 67,526,576 VND
1 Construction Subsidiary JSC Dien Bien Phu
An Phu Ward, District 2, Selling tools and other tools:
Company
Ho Chi Minh City 341,062,108 VND
Limited Vietnam No 138 Tran Binh street,
Sale: office for rent: 231,709,092
12 Industrial Subsidiary My Dinh 2 ward, Nam Tu
Dai Mo- VND
Purchase of construction goods: Erection., JSC Liem district, Hanoi
No.1 Power Cho Street, Dai Mo
171,736,399,326 VND
2 Construction Subsidiary Ward, Nam Tu Liem Hoa Binh
Sale: Land rent, guarantee fee: Số 44 Phố Triều Khúc, Purchase: loan interest
Company District, Hanoi Automobile Công ty
239,728,865 VND 13 Phường Thanh Xuân Nam, 3,950,019,288 VND
Limited Mechanical., con
Quận Thanh Xuân, Hà Nội Selling: interest 677,260,274 VND
JSC
Dong Anh
Group 14, Dong Anh
Steel Tower Buy: Processing steel columns: Sales: office rental 95,301,820
3 Subsidiary town, Dong Anh district,
Company 200,610,25,456 VND No. 44 Trieu Khuc Street, VND
Hanoi My Dinh Real
Limited 14 Subsidiary Ward. Thanh Xuan Nam, Purchase: interest 1,962,958,027
Estate., JSC
district. Thanh Xuan, Hanoi VND
My Dinh-
No 138 Tran Binh Purchase: Construction volume:
No.1 Power
street, My Dinh 2 ward, 480,371,310,952 VND
4 Construction Subsidiary Purchase: Hydroelectricity
Nam Tu Liem district, For sale: office for rent, other: 1st floor, My Dinh Plaza,
Company operation management and
Hanoi 885,478,833 VND My Dinh Real 138 Tran Binh, ward. My
Limited 15 Subsidiary construction 104,848,060.726
Estate., JSC Dinh 2, district. Nam Tu
VND
Nang Huong- Liem, Hanoi
Buy: Building services: Other sale: 773,754,944 VND
No.1 Power No. 583 Km 9, Nguyen
1,783,048,590 VND
5 Construction Subsidiary Trai Street, Van Quan, Na Pong village, Ly Bon
Office space for sale and rent: Bao Lam For sale: Consulting 865,977,273
Company Ha Dong District, Hanoi 16 Subsidiary commune, Bao Lam dis-
1,423,885,632 VND Energy., JSC VND
Limited trict, Cao Bang province
Hoang Mai-
No. 471, Nguyen Tam Purchase: Construction volume
No.1 Power Tien Bo No. 1, lane 321, Vinh Hung
Trinh Street, Hoang Van 281,921,469,971 VND Purchase: loan interest
6 Construction Subsidiary 17 Investment Subsidiary street, ward. Thanh Tri,
Thu Ward, Hoang Mai Sale: Land rent, guarantee fee: 3,014,506,850 VND
Company Trading., JSC district. Hoang Mai, Hanoi
district, Hanoi 148,640,465 VND
Limited
70 PC1 Group Joint Stock Company Annual Report 2021 71

Percentage of shares ownership and transactions of members of the BOD, the Supervisory Board,
and the Management Board
Transactions between the Company and related parties
Number of
Ownership
No. Full name Title shares held as at
rate (%)
Transactions, contracts of the Company with related persons 31/12/2021

1 Trinh Van Tuan Chairman of the Board of Directors 49,411,927 21.01

Name of Relationship Member of the Board of Directors

2 Vu Anh Duong 328,799 0.14
No. organization / with the Address Content cum General Director
individual company
Member of the Board of Directors
Sales: loan interest 3 Vu Hong Quang 4,429,724 1.88
cum Deputy General Director
Cua village, Huong Tan 7,011,137,936 VND
Lien Lap Wind Member of the Board of Directors
18 Subsidiary commune, Huong Hoa Sales: EPC general contractor 4 Nguyen Minh De 3,126,634 1.33
Power., JSC cum Deputy General Director
district, Quang Tri province for wind power projects:
1,337,208,755,101 VND 5 Vu Van Tu Deputy General Director 50,010 0.02
Branch 6 Nguyen Nhat Tan Deputy General Director 1,061,808 0.45
of Power
Construction Purchase: processing 7 Dang Quoc Tuong Deputy General Director 468,130 0.20
Joint Stock Yen Khe village, Yen steel columns, other:
19 Company Branch Thuong commune, Gia 127,552,655,482 VND 8 Nguyen Thi Hai Ha Head of Supervisory Board 106,446 0.05
No. 1 - Yen Lam district, Hanoi Selling raw materials, other:
9 Hoang Van Sang Member of Supervisory Board 7,090 0.003
Thuong Steel 59,555,649,072 VND
Structure 10 Tran Thi Minh Viet Chief accountant 295,939 0.13
Factory
Purchase: loan interest
Phong Huy No. 56 Le Duan, Khe Sanh 4,730,990,289 VND
20 Wind Power., Subsidiary Town, Huong Hoa District, Sales: EPC general contractor Remuneration
JSC Quang Tri Province for wind power projects:
1,439,098,669,867 VND
Remuneration of the Board of Directors, the Supervisory Board and the
No. 1, Alley 23, Hung
Purchase: loan interest Management Board
Phong Nguyen 2,069,502,006 VND
Vuong Street, Khe Sanh
21 Wind Power., Subsidiary Sales: EPC general contractor Allowance
Town, Huong Hoa District, Allowance for
JSC for wind power projects: VND No. Full name Title
1 month(VND)
for the year
Quang Tri Province 2021(VND)
1,404,403,205,371
2nd floor, PCC1 Thanh 1 Mr, Trinh Van Tuan Chairman of the Board of Directors 20,000,000 240,000,000
Investment Purchase: Construction
Xuan Building, 44 Trieu
and volume: 222,047,597,008 VND 2 Mr, Vu Anh Duong Member of the Board of Directors 5,000,000 60,000,000
22 Subsidiary Khuc Street, Thanh Xuan
Technology Sales: loan interest
Nam Ward, Thanh Xuan
Service., JSC 145,315,068 VND 3 Mr, Vo Hong Quang Member of the Board of Directors 5,000,000 60,000,000
district, Hanoi
Group 22, Song Bang 4 Mr, Nguyen Minh De Member of the Board of Directors 5,000,000 60,000,000
Tan Phat Sales: loan interest
23 Subsidiary Ward, Cao Bang City, Cao
Minerals., JSC 2,997,242,858 VND 5 Mr, Mai Luong Viet Member of the Board of Directors 5,000,000 60,000,000
Bang Province
Lot CN2-1 and CN2-2 6 Ms, Nguyen Thi Hai Ha Head of Supervisory Board 6,000,000 72,000,000
Thai Nguyen Subsidiary Diem Thuy B Industrial Sales: supplies, other:
7 Mr, Hoang Van Sang Member of Supervisory Board 2,000,000 24,000,000
Galvanized of Dong Anh Zone, Diem Thuy 92,146,800,068 VND
24
Steel Tower., Steel Tower Commune, Phu Binh Purchase: processing steel 8 Mr, Hoang Van Cuong Member of Supervisory Board 2,000,000 24,000,000
JSC Co., Ltd District, Thai Nguyen columns: 40,071,956,040 VND
Province TỔNG CỘNG 50.000.000 600.000.000
72 PC1 Group Joint Stock Company Annual Report 2021 73

activities in particular. Therefore, analyzing the macroeconomic factors of economy will clarify the
impact level of this type of risk as well as propose measures to limit and overcome the impact on
the Group’s operations.
Risk management Economic situation of the world and Vietnam
In 2021, although the economic recovery is slow, the world economy is still growing, according to
the World Bank’s forecast in the January 2022 Global Economic Outlook Report, global GDP growth
Risk management principles estimated at 5.5% and 4.2% in 2022; According to the International Monetary Fund’s forecast, global
GDP growth is estimated at 5.9% and is forecasted to increase at 4.9% in 2022; For the economic
region of emerging and developed Asian countries, GDP growth is estimated at 7.2% in 2021 and is
Risk management is a process throughout and sticking to all operating processes of the Group,
forecasted to increase by 6.3% in 2022.
which is an integral part in all processes of the Group. In particular, risk management must be
Vietnam’s economy continues to recover after the pandemic, but at a slow pace and strongly
associated with the objectives and strategies of the Group, is an important part when issuing
influenced by political conflicts, which are still increasing, supply chain difficulties, increased input
any decision related to the operation of the Group;
prices affect adversely affect investment activities, investment cooperation, import of machinery and
equipment, and export of electric poles of the Group. However, the rapid recovery of the economy
Risk management must be based on reliable existing information. The inputs of the risk
between the two epidemics has shown the internal strength and development potential of the
management process must be based on reliable information sources of quality and quantity,
economy.
from a variety of sources, including stored data, experience, and feedback from related parties, 8
observation, prediction and judgment; 6,68 6,81
7,08 7,02
7
6,24 6,21 2.90% Agriculture,
5,98
forestry and fisheries
The risk management system includes parts and personnel serving for risk management which
6 5,42
5,25

is integrated in the management and administration structure of the Company and operated in 5

parallel and in consistence with scale and operation scope of the Group; 4
2,91
4.05 % Industry and
3 2,58
construction
Risk management policies and procedures are implemented continuously and regularly updated, 2
1.22% Service
adjusted and supplemented in accordance with the scope, scale of operation, conditions of the 1

company and the market context; 0

2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021

Vietnam’s
GDP Việt Nam GDP growth
giai đoạn 2011 -in the period 2011 - 2021
2021

Risk management process

PC1 Group’s strategic goal for the period 2021-2025 is with high growth, revenue and profit increasing
at an average rate of 16% per year, but in the general context, GDP growth of the government in
Begin
5-year phase, the target is only 6.5%, the load growth of the electricity industry also slows down the
GDP decrease in the whole 5-year period. All these factors directly affect the business activities of
1. Summary of infor-
mation, identification
PC1 Group.

2. Risk assessment Opportunities from industries PC1 Group has business pillars
In terms of scale, by the end of 2021, Vietnam’s power system has risen to the top of the ASEAN
3. Handling risks
region in terms of power capacity. Despite the heavy effect of the epidemic in 2021, the amount of
commercial electricity still increased by 3.9% compared to 2020, with Vietnam’s economic recovery,
3.1. Risk handling 3.2. Define solutions electricity demand will continue to increase in the period to 2030, with an average rate of at least
options and plans
equal to the GDP growth rate. With the National Assembly having passed the revised Electricity Law,
the socialization of the transmission grid will be strongly implemented to meet the growing load
NO
3.3. Implementation
OK demand.
Acceptance
Power Planning VIII is expected to be approved in 2022, according to which, the Government’s
policies continue to prioritize the development of renewable energy, LNG, and transmission grid
4. Summary of reports,
investment in the form of BOO, this is an opportunity for the Group to continue its investment
lessons learned strategy and investment cooperation in energy projects and power transmission grids. Investors and
credit institutions are still interested in renewable energy investment opportunities. Opportunity PC1
End Group to develop the scale of EPC general contractor not only with power grid works, breakthrough
affirming the position of general contractor for part or all of renewable energy power plants, offshore
wind power projects, LNG factories…

Macroeconomic risks How to manage:

PC1 Group always actively updates, closely monitors, analyzes and forecasts fluctuations of domestic
Economic risk is a type of systemic risk through changes such as economic growth, and foreign markets, regularly updates fluctuations in interest rates, exchange rates, inflation...
inflation, interest rates, ... that have direct or indirect impacts on production and Actively develop risk scenarios and preparedness measures to deal with risks and bad developments
business activities of enterprises in the economy in general and the Group’s business of the economy - society. Focusing on the business pillars while researching and expanding the
market. Control costs, optimize resources, ensure a safe capital structure.
74 PC1 Group Joint Stock Company Annual Report 2021 75

Risk management Energy Investment

Natural weather and terrain not only directly affect the construction process of hydroelectric and
wind power plants, but also directly affect the power production and business of the plants. In case
of bad weather and rugged terrain, the construction schedule is delayed and this will prolong the
operation time of the plant and significantly increase the interest expense of the project, reduce the
Industry-specific risk efficiency of capital use. On the other hand, with the influence of climate change, prolonged drought
would result in reduced rainfall and water levels on rivers and lakes, dams nearby hydropower plants
which will directly affect the amount of electricity produced. Similarly, investment in and production
PC1 Group Joint Stock Company operates in the main fields of electrical construction of wind and solar power also bear risks in terms of sunlight levels and wind speeds, wind direction,
general contractor; energy investment; Industrial production; real estate investment etc. In addition, new electricity price policies and national electricity planning can also pose significant
and business; and invest in new material technology. Each field of production and risks in the field of energy investment.
business activities has different specific risks that require flexible risk management How to manage:
strategies for each field.
To cope with these changes, the Company always surveys, measures, closely follows climate,
hydrological and astronomical forecasts to have timely plans to operate effectively. At the same time,
actively research, survey and understand the legal provisions on investment policy and electricity
General contractor of electrical works: planning.
PC1 Group implements the construction of power transmission lines and substations, power source Industrial Production
projects, industrial, civil, technical infrastructure, transport, irrigation and post and telecommunication
projects. The construction and installation of the above works are mainly carried out outdoors and The Industrial Production sector is exposed to major risks from raw material prices. The Group mainly
in areas with complex terrain so the weather and terrain conditions can affect safety in this field. manufactures and trades in equipment, steel structures, materials and accessories for electrical
The dependence on weather and construction terrain in the power construction industry such as works, and manufactures construction equipment, so steel price fluctuations directly affect this field
underground construction, construction on dangerous hills causes many difficulties and creates of activity of the Group.
risks because of the risk of occupational accident. According to statistics, from the fourth quarter of 2020 to May 2021, the domestic construction steel
price increased rapidly according to the world and regional steel prices. However, by the beginning of
In addition, the field of EPC general contractors also faces the risk of price fluctuations of imported July 2021, steel consumption demand decreased when Vietnam entered the rainy season, combined
materials and equipment; shortage of human resources, specialized machinery and equipment at with the complicated situation of the Covid-19 epidemic, causing many constructions to stop,
certain times. The low construction unit cost, the site clearance work facing many obstacles and especially in the southern provinces and cities, which are greatly affected when many provinces have
difficulties, leading to the delayed and prolonged construction work, failure to complete according to implement distance. In addition, the strong competition from large domestic steel manufacturers
to the plan are also risks affecting the business performance in this field. caused domestic steel prices in the third quarter of 2021 to decrease slightly by 5-10% compared
to the second quarter of 2021. In the last 3 months of 2021, steel consumption demand increases
How to manage: because when the epidemic in localities is gradually controlled, many construction works resume
operation, causing steel prices to rise.
PC1 Group always focuses on construction safety supervision during its project implementation
and adheres to insurance policies for both the Group and employees to limit the influence of this How to manage:
risk factor on general business activities of the Group. At the same time, PC1 Group is always ready, In order to limit the influence of steel material prices, the Group always updates the market situation,
proactively forecasting risks and developing risk scenarios, plans to respond to fluctuations in steel price information in the world to find out measures to control steel prices at a competitive level
resources for the construction of electrical works, minimizing impacts. of changes to the Group’s such as encoding all raw materials and materials, compare and diversify suppliers - choose the most
business performance. competitive raw material suppliers in the market, plan to buy/sell in time. In addition, the Group also
built a software system and professional reports to analyze the price of steel and steel production
materials for forecasting steel price fluctuations in the market in order to offer solutions. timely
response to the negative effects of input material prices.
76 PC1 Group Joint Stock Company Annual Report 2021 77

Risk management Enhancing

Real Estate Investment and Business Corporate governance

In the real estate sector, investment policies, the planning law are all tightened, and the scarcity Corporate governance study/ training plan
of land is a big challenge to implement the development plan of the real estate sector in the long
Corporate governance training courses were attended by members of the Board of Directors,
term. In fact, the demand for land for urban construction, office, housing ... is increasing while the
members of the Supervisory Board, Chief Executive Officer, other managers and the Company
limited land fund is increasingly shrinking, especially in big cities. As for land planned for real estate
Secretary in accordance with regulations on corporate governance:
projects that are being used and exploited by residents, the site clearance work in these areas is
often complicated, lengthy and potentially contains many legal disputes. On the other hand, the
Members of the Board of Directors, members of the Supervisory Board, General Director, other
compensation and land compensation price bracket prescribed by the State is unstable and has
managers and the Group Secretary regularly update legal documents and regulations on corporate
great value, directly affecting the investment costs of enterprises.
governance, participate in seminars on Corporate governance organized by the Ho Chi Minh City
Stock Exchange and the State Securities Commission and will continue to participate in corporate
According to statistics of the Ministry of Construction, in the first half of 2021, the construction
governance training courses when training institutions recognized by the State Securities Commission
price index increased by nearly 4% over the same period in 2020, the beginning of the fourth
have appropriate training courses.
quarter continued to record a new price increase. According to the Vietnam Real Estate Association,
the increase in construction materials directly affects house prices, accounting for about 60% of
In 2021, in direct training work faced difficulty due to the social distance caused by the widespread
construction costs, so the price is pushed up by 10-15% compared to 2020.
Covid-19 epidemic, However, with the initiative and efforts to improve the quality of governance, PC1
Group has also organized some practical training courses and at the same time ensured the health
How to manage: safety for all participants.
With the policy of only implementing real estate projects on the Group’s land fund or the land with Workshop on innovation and digital transformation PC1 Group
clean ground, the Group can actively minimize the risk of compensation for site clearance. At the
same time, the Group also actively researches and learns the legal regulations on investment, land, On December 12, PC1 Group Joint Stock Company (PC1 Group) in collaboration with the Vietnam
real estate, etc. to minimize the risks brought by the policy. Institute of Digital Creation and Transformation (VIDTI) held a seminar: “CREATIVE INNOVATION AND
DIGITAL TRANSFORMATION PCC1”. Attending the program were Mr. Nguyen Quan - Former Minister
of Science and Technology. VIDTI had the presence of Ms. Nguyen Thi Bich Lan - Chairman of the
Management Board, President; along with the presence of senior managers, experts from VIDTI,
representatives of partners in VIDTI’s digital transformation consulting ecosystem such as Viettel
IDC, Misa, and Digiwin, etc.
Stock price volatility risk

As a listed company on HOSE with stock code PC1, the shareholders of the Company
and the Company will bear the risk of price volatility of PC1 Group shares. In addition
to internal factors such as the situation of production and business activities of the
Company, many other external factors such as macroeconomic factors, changes of
legal regulations ...

How to manage:
PC1 Group always strictly complies with the Information Disclosure Regulation of the Ho Chi Minh City
Stock Exchange, and at the same time, the Company always provides Investor Newsletters, updated With the motto: “Innovation as the foundation, digital transformation as a tool to create a competitive
quarterly business and investment situation, organize investor meeting, ... factor, sustainable development of the company”, the application of digital transformation to
PC1 Group is an indispensable requirement, creating a new impetus to create a breakthrough
development, leading the Group to proactively adapt to new economic conditions, gain a worthy
position in the national and international digital space. Within the framework of the workshop,
PC1 Group and VIDTI have awarded and received the signing of a digital transformation consulting
contract. This will certainly be a big step in the Group’s journey to affirm its position and sustainable
development.

In addition, in 2021, the Group also organized training programs and seminars to improve
management qualifications and expertise in: Project Management, GWO Occupational Safety,
Circular Economy, Training integration, etc. for the staff to improve their knowledge and skills to
ensure good job needs.
78 PC1 Group Joint Stock Company Annual Report 2021 79

Human resources management:

Enhancing 1. The Group has successfully applied the new salary regulation, closely associated with production
and business efficiency and increased income, creating motivation for employees.

Corporate governance 2. Operate the new organizational chart effectively according to the corporation model, towards
professionalism and high specialization, the goal is that all employees understand the functions,
tasks, work flow, and scope of responsibility and coordinate and limit problems arising in the
production and business process.
3. In 2021, the Group will continue to improve the salary and bonus regime, supplement the
Investor Relations continuous creation process, deploy and operate modern human resource management
Continuing to comply and update software (HRM).
regulations on corporate governance
such as disclosing information on the
stock market or organizing the General
Meeting of Shareholders.

Improving the quality of Annual

reports both in content and form
to better information transmission
to shareholders and the investor
community.

Issuing the Investor Newsletter

quarterly to transmit timely and
accurate information about the
production and business activities of
the Group.

Improve corporate governance efficiency

Financial - accounting management
Information system administration 1. The Group and its subsidiaries consistently use one accounting software to facilitate accounting,
1. In 2021, PC1 Group operated an intelligent management information system - Business reporting and data consolidation. Apply digital technology to the accounting system of the Group
Intelligence. The goal of the project is to build a centralized data warehouse according to the and all member companies to provide accurate and timely analysis for the Executive Board.
Group’s strategy, in line with the policy of digitizing operations in the 2021-2025 period. 2. By 2021, the Group has completed upgrading its accounting software to speed up processing
2. With some characteristics of the construction industry, the project demonstrates the determination and improve its ability to respond to big data.
and investment of PC1 Group’s leadership in the global digitalization challenge, suitable for the 3. Develop long-term, medium-term and short-term financial plans, from which, develop an
situation that the country is innovating in information technology. The system will ensure the appropriate financial plan to meet capital needs for production and business in the next stages
demand such as providing timely and direct information to the Executive Board, Managing the in the Group’s development strategy.
results of professional departments including market, bidding, contract, construction, capital 4. In 2021, PC1 Group held a workshop to standardize accounting documents for all employees
recovery, financial analysis; Data is imported into the system from the source, directly at the of the Group’s departments and divisions to improve their skills in preparing and handling the
construction site or specialized departments, and aggregated online into the management Group’s accounting documents.
reporting system, helping to avoid loss and reduce errors; Reduces manual reporting time and
incurs no additional resources.
Customer relationship management:
Quality Management: 1. PC1 Group creates high trust with customers, including traditional customers and new customers.
1. Well perform awareness training and staff training on digital transformation through a series of PC1 Group has strict customer management processes, from search to sales and after sales.
training programs. 2. Digital transformation has been researched and applied in customer relationship management,
2. Successfully applied management and digitization software to improve system administration creating a competitive advantage for the Group. In 2021, CRM software will be put into use to
capacity and also increase business efficiency. improve customer service and market efficiency
80 PC1 Group Joint Stock Company Annual Report 2021 81

BUSINESS PERFORMANCE
IN THE YEAR 2021

4 82

83
96
100
Overview of Vietnam’s economy and electricity
industry
Investment and business performance in 2020
Financial situation
Report of the Executive Board
114 Report of the Board of Directors
82 PC1 Group Joint Stock Company Annual Report 2021 83

Investment and production

activities in 2021

Revenue

Overview of the
9,828 Profit after tax
billion VND
Vietnamese economy
and the general
Vietnam’s economy in the first 5 months of 2021 showed signs Exceeded the 764
of prosperity and positive growth again after a recession due to plan by 23% billion VND
situation of the the impact of the Covid epidemic. However, due to the impact of
the 4th wave of Delta mutations that broke out in the southern Exceeding the
electricity industry in provinces, especially heavy damage in Ho Chi Minh City, Binh plan by 50%
2021 Duong and neighboring provinces from the end of May to October
15, 2021, all trade activities were almost stopped, the growth in the
third quarter of 2021 was negative. With the close management and direction of the Government
and ministries, the vaccination of the entire population is prioritized, by the fourth quarter of 2021;
the epidemic situation is basically under control. According to the new normal scenario, the GDP Proportion 2021
Criteria 2017 2018 2019 2020 2021
growth rate for the whole year is 2.58%. Despite low inflation, the industrial production price index in 2021 /2020
increased by 2.9% and the price index of raw materials and fuel for production increased by 5.51%
Total revenue 3,212 5,160 5,891 6,744 10,175 151%
compared to 2020. The rapid recovery of the economy between the 2 waves of epidemics has
shown the internal strength and development potential of the economy. Revenue 3,161 5,084 5,845 6,679 9,828 96.5% 147%
The power industry is a low-risk industry, operating continuously despite the economic cycle. The
Financial income 11 28 38 37 319 3% 862%
impact of epidemic in 2021 will slow down the economy’s growth, but the power industry has a
positive recovery prospect thanks to the continued high demand for electricity. Vietnam’s electricity Other income 41 47 8 28 28 0.5% 100%
industry is currently facing a shortage when the growth of electricity consumption is faster than the
growth of electricity output. Electricity supply in Vietnam is still heavily dependent on traditional Total expenses 2,926 4,538 5,402 6,040 9,364 155%
power sources such as hydroelectricity and thermal power. Therefore, in the coming time, Vietnam’s
Cost of goods sold 2,679 4,219 5,026 5,517 8,673 93% 157%
electricity industry will continue to be attractive to power source investors, especially in the field
of renewable energy, because the load demand is still forecasted to grow high to meet the socio- Financial expenses 103 150 172 244 359 4% 147%
economic development. Chart Title
Operating expenses 143 161 202 268 296 2.6% 110%
12000
10.168 Other expenses 1 8 2 11 36 0.4% 327%
10000
Profit before tax 303 579 433 652 896 137%
8000 Net profit from operating
6.744 263 540 427 635 905 101% 143%
5.891 activities
6000 5.160
Other profits 40 39 6 17 (8)
4000 3.212
Profit after tax 256 491 376 544 764 140%
2000
491 544 764
256 376
0
2017 2018 2019 2020 2021

Tổng revenue
Total doanh thu Profit
Lợi aftersau
nhuận tax thuế

Total revenue and profit after tax of PC1 Group in the period of 2017 - 2021
84 PC1 Group Joint Stock Company Annual Report 2021 85

SOME MAJOR INDICATORS BUSINESS RESULTS AT SUBSIDIARIES AND ASSOCIATES

In 2021, the Group’s total revenue reached
VND 10,175 billion and pre-tax profit was
VND896 billion while the Group’s total

10,175
Performance in 2020 (VND Performance in 2021 (VND Performance in 2021 /
expenses stood at VND 9,364 billion. The
Total revenue financial ratios of the Group ROE and ROA No. Subsidiaries
billion) billion) Performance in 2020 (times)

billion VND in 2021 reached 13.8% and 5.2% respectively in 2021. Total
Revenue Profit
Total
Revenue Profit
Total
Revenue Profit
Asset Asset Asset

Total revenue from sales and service provision Mien Nam- No. 1
in 2021 reached VND 9,813 billion, increased 1 Power Construction 229 344 0.13
185 445 0.44 0.81 1.29 3.31
Co., Ltd
47% over the previous year and reached 123%
9,364 Total expenses of the year plan. Revenue growth mainly comes
from PC1 Group’s core business, especially 2
My Dinh- No. 1
Power Construction 185 344 1.30
billion VND in 2021 the revenue of EPC general contractor for
Co., Ltd
246 541 4.82 1.33 1.57 3.70

wind power projects; revenue from electricity Mien Bac- No. 1

sales and trade in goods grew by 24% and 3 Power Construction 154 199 1.95
148 394 2.56 0.96 1.98 1.31
Co., Ltd
21% respectively compared to 2020.

896
Tu Liem- No. 1
Profit before tax Financial costs increased due to the increase 4 Power Construction 93 179 0.13
58 126 (4.24) 0.62 0.70
N/A

billion VND in 2021 in loans to expand the scale of production

Co., Ltd

and business. Dai Mo- No. 1

5 Power Construction 81 131 0.66
95 204 1.07 1.17 1.55 1.63
Co., Ltd
Profit from associates in PC1 Group’s business
Ha Dong- No. 1

5.2%
results is 85.7 billion dong, coming from Cao
6 Power Construction 48 240 1.12
ROA Bang Iron and Steel Joint Stock Company’s
Co., Ltd
47 205 0.17 0.98 0.86 0.15
2021 profit after tax, reaching 342 billion
dong. Hoang Mai- No. 1
7 Power Construction 110 153 1.88
113 293 3.60 1.02 1.92 1.91
Co., Ltd
As a result, the consolidated profit after tax in

13.8% 2021 reached VND 764 billion increased 40% Ninh Binh- No. 1
ROE 8 Power Construction 46 106 1.64
compared to the previous year and reached Co., Ltd
61 189 2.84 1.34 1.79 1.73
150% of the year plan.
Nang Huong- No. 1
9 Power Construction 5 23 -0.02 N/A
8 27 0.75 1.59 1.18
Co., Ltd
86 PC1 Group Joint Stock Company Tổng Tài sản Annual Report 2021 87

2500 2.206
2.168 2.156
BUSINESS RESULTS AT SUBSIDIARIES AND ASSOCIATES
2000

Performance in 2020 (VND Performance in 2021 (VND Performance in 2021 / 1500

billion) billion) Performance in 2020 (times)
No. Subsidiaries
Total Total Total
Revenue Profit Revenue Profit Revenue Profit
Asset Asset Asset
1000
809 826
Dong Anh Steel 725
10 434 834 36.28
Tower Co., Ltd 809 1,034 39.27 1.86 1.24 1.08
529
Vietnam Industrial
11 29 33 1.05 500
Erection., JSC 28 58 1.29 0.97 1.76 1.22
246 197
185 148 165 165 151
12
My Dinh Real
190 10 9.15 58 95 47 113 61 9 105 124 56
Estate., JSC 105 14 5.33 0.55 1.48 0.58 28 35 13
0
Hoa Binh CT
TNHH
CT CT CT
TNHH TNHH TNHH TNHH TNHH
CT CT CT CT CT
TNHH TNHH TNHH TNHH Lắp
CT CTCP CTCP
Đầu tư
CTCP CTCP CTCP CTCP CTCP CTCP CTCP CTCP
Cơ khí Đầu tư Thủy Đầu tư Thủy Điện Điện gió Điện
CTCP CTCP
Đầu Khoáng
CTCP CTCP CTCP CTCP
Thủy Thiết bị Thí Cột

13 Automobile 325 836 175.67 MTV MTV MTV MTV MTV MTV MTV MTV MTV Chế máy Địa ốc Ô tô Thương điện Năng điện gió Liên Phong gió tư và sản Tấn điện Thương nghiệm thép
Xây lắp Xây lắp Xây lắp Xây lắp Xây lắp Xây lắp Xây lắp Xây lắp tạo Cột Công Mỹ Đình Trung lượng Dịch vụ Phát
164 73 22.15 0.50 0.09 0.13
Xây lắp Hòa mại Bảo Lập Nguyên Phong Sông mại điện mạ kẽm
điện điện điện điện điện điện điện I - điện điện I thép nghiệp Bình Tiến Thu Miền Lâm Huy công Gâm PC1- Thái
Mechanical., JSC I - Miền
Nam
I - Mỹ I - Miền I - Từ I - Đại I - Hà
Đình Bắc Liêm Mỗ Đông
Hoàng I - Ninh - Nàng Đông Việt
Mai Bình Hương Anh Nam
Bộ Bắc nghệ ETICH Nguyên

Tien Bo Investment
14
Trading., JSC
122 0 2.29
124 - 2.10 1.02 0.92 Tổng Doanh
Total assets thu and associates (Billion VND)
of subsidiaries
Trung Thu 1200
15 767 141 48.70
Hydropower., JSC 725 126 43.04 0.95 0.89 0.88 1.034
Northern Energy 1000
16 894 127 13.50
Investment., JSC 826 131 22.77 0.92 1.03 1.69
Bao Lam Energy., 800
17 52 57 1.66
JSC 165 244 10.21 3.15 4.29 6.17
Lien Lap Wind 600 541
18 353 - - N/A N/A
Power., JSC 2,206 64 13.26 6.25 445
387
Phong Nguyen 400
19 355 - - N/A N/A 293
Wind Power., JSC 2,168 82 32.90 6.10 244 251
204205 189
Phong Huy Wind 200 126 126131 64
20 351 0 0.00 N/A N/A 82 97
Power., JSC 2,156 70 19.80 6.14 58 73 70
27 14 0 0 0 4 7
Investment and 0
21 Technology 37 79 3.66 CT CT CT CT CTCP CTCP
56 251 14.04 1.54 3.17 3.84 CT CT CT CT CT CT CTCP CTCP CTCP CTCP CTCP CTCP CTCP CTCP CTCP CTCP CTCP CTCP CTCP CTCP
TNHH TNHH TNHH TNHH TNHH TNHH TNHH TNHH TNHH Lắp Đầu tư Cơ khí Đầu tư Thủy Đầu tư Thủy Điện Điện gió Điện Đầu Khoáng Thủy Thiết bị Thí
Service., JSC
TNHH Cột
MTV MTV MTV MTV MTV MTV MTV MTV MTV Chế máy Địa ốc Ô tô Thương điện Năng điện gió Liên Phong gió tư và sản Tấn điện Thương nghiệm thép
Xây lắp Xây lắp Xây lắp Xây lắp Xây lắp Xây lắp Xây lắp Xây lắp Xây lắp tạo Cột Công Mỹ Đình Hòa mại Trung lượng Bảo Lập Nguyên Phong Dịch vụ Phát Sông mại điện mạ kẽm
điện điện điện điện điện điện điện I - điện điện I thép nghiệp Bình Tiến Thu Miền Lâm Huy công Gâm PC1- Thái

Tan Phat Minerals., I - Miền I - Mỹ I - Miền I - Từ I - Đại I - Hà Hoàng I - Ninh - Nàng Đông Việt Bộ Bắc nghệ ETICH Nguyên

22 - - - N/A N/A Nam Đình Bắc Liêm Mỗ Đông Mai Bình Hương Anh Nam

JSC 530 - -
Song Gam Total revenue ofLợi
subsidiaries
nhuận and associates (Billion VND)
23 - - N/A N/A
Hydropower., JSC 35 - -
50
Holding 43.04
24 Commercial - - - N/A N/A 39.12
151 4 0.33 40
Equipment., JSC
PC1-Etich Electrical 30 23.83
25 - - - N/A N/A 22.77
Experiment., JSC 13 7 (1.40)
20
Thai Nguyen
26 Galvanized Steel - - - N/A N/A 10 4.81 4.77
197 97 0.65 2.56 3.6 2.84 2.1
Tower., JSC 0.44 1.07 0.17 0.75 1.32
0
CT CT CT
TNHH TNHH TNHH CTCP CTCP CTCP CTCP CTCP CTCP
CT CT CT CT CT CT CT
-10
MTV
Xây lắp
MTV
Xây lắp
MTV
Xây lắp -4.24
TNHH
MTV
TNHH
MTV
TNHH
MTV
TNHH
MTV
TNHH
MTV
TNHH
MTV
TNHH
Chế
Lắp
máy
Đầu tư
Địa ốc
Cơ khí
Ô tô
Đầu tư
Thương
Thủy
điện
Đầu tư
Năng
điện điện điện Công Mỹ Đình Hòa mại Trung lượng
I - Miền I - Mỹ I - Miền Xây lắp Xây lắp Xây lắp Xây lắp Xây lắp Xây lắp tạo Cột
nghiệp Bình Tiến Thu Miền
Nam Đình Bắc điện điện điện điện I - điện điện I thép
Việt Bộ Bắc
I - Từ I - Đại I - Hà Hoàng I - Ninh - Nàng Đông
Nam
Liêm Mỗ Đông Mai Bình Hương Anh

Profits of subsidiaries and associates (Billion VND)

88 PC1 Group Joint Stock Company Annual Report 2021 89

Revenue structure by 2020 Proportion 2021 Proportion Growth

sector Net sales of goods sold and service rendered 6,679 9,828 47%

General contractor of Electrical works 3,061 46% 6,714 68% 119%

Industrial Manufacturing 826 12% 650 7% -21%

Real Estates 856 13% 106 1% -88%

9,828 Net sales of goods

sold and service
In 2021, the general contractor for electrical
works is still the business segment that brings
Energy investment 748 11% 928 9% 24%

Billion VND Other business 1,188 18% 1,431 15% 20%

rendered in 2021 the largest revenue and cash flow for the Group Cost of goods sold 5,517 8,673 57%
with an increase of 119% over the same period
General contractor of Electrical works 2,753 50% 6,253 72% 127%
and accounts for the largest proportion- 68%
Industrial Manufacturing 743 13% 556 6% -25%
in the revenue structure. Electricity sales grew
by 24% due to the gradual increase in the
8,673
Real Estates 577 10% 67 1% -88%
Cost of goods sold number of plants as well as power generation Energy investment 297 5% 399 5% 34%
in 2021 capacity according to PC1 Group’s energy
Billion VND Other business 1,147 21% 1,398 16% 22%
investment development strategy. At the Gross profit 1,162 1,156 -1%
same time, merchandise trade revenue grew
General contractor of Electrical works 307 26% 461 40% 50%
by 21% compared to 2020; while industrial
Industrial Manufacturing 83 7% 94 8% 13%
production and real estate fell. The real estate

1,156
segment recorded a decline because there Real Estates 279 24% 39 3% -86%
Gross profit were no projects handed over in 2021. PC1 Energy investment 452 39% 530 46% 17%

Billion VND Group’s real estate project handover cycle is Other business 41 4% 33 3% -20%
currently at ~1.5 projects/year. Gross profit margin
General contractor of Electrical works 10.0% 6.9%
Industrial Manufacturing 10.0% 14.4%

Real Estates 32.6% 36.4%

Energy investment 60.4% 57.1%

Other business 3.5% 2.3%
90 PC1 Group Joint Stock Company Annual Report 2021 91

General contractor of electrical works In the field of electrical construction,

PC1 Group has tradition, capacity
Revenue of general electrical works contractors and reliability to carry out large-scale
in 2021 reached VND 6,714 billion, increased projects, special projects to supply
119% over the same period and reached 145% electricity for sea island, high-tech
of the year plan, affirming the leading position bridgehead projects. Power projects
and capacity in the field of electrical construction that are performed in 2021: supplying
general contractors. power to the sea island, the EPC general
The big growth mainly comes from the acceptance contractor of the 220KV transmission
of wind power plants. Projects that PC1 Group line Kien Binh, Phu Quoc- the investor
performed as the general contractor (IA Bang Southern Power Corporation; 220KV-
1, Tan Phu Dong 2, Lien Lap, Phong Huy, Phong 500KV transformer station and
Nguyen) are timely COD to enjoy FIT prices before transmission line; EPC general contractor
October 31, 2021. The total capacity of wind of Vinh Chau 220KV substation and
power plants that PC1 Group performs to COD connection with construction time
services completion is nearly 600MW, accounting Tan Phu Dong Wind Power Plant – PC1 Group as EPC
General Contractor Tan Phu Dong Wind Power Plant – PC1 Group as EPC of 100 days, exceeding the contract
for about 20% of the total capacity already COD. schedule, increasing the capacity of
General Contractor
More than 50% of revenue is from PC, 220kV transmission lines Viet Tri - Vinh
EPC contracts, in addition, accelerating the Yen - Soc Son, Yen Bai - Viet Tri, Bac
construction progress to keep up with COD and Giang, Thai Nguyen. The project has a
increasing prices of materials, labor, installation, record-fast progress- the EPC general
transportation, and the impact of the covid contractor for the substation and
epidemic have reduced gross profit margin to connection lines 220kV and 500kV lines
6.9%. was completed in 9 months, becoming
Typical EPC general contractor projects of wind one of the fastest progressing projects
power plants, PC1 Group has been successful in the country.
with EPC wind power plant projects which have
been completed in a very short time, affirming Underground cable construction:
the outstanding capacity of PC1 Group. Tan project of 110kV underground cable
Phu Dong 2 wind power plant with a capacity of line, 110kV substation project of Kien
50MW in Tien Giang province, construction time Giang port and connection,
IA Bang Wind Power Plant- IA Wind Power Joint Stock
Company – PC1 Group as EPC general contractor is 7 months, exceeding contract requirements.
Pioneering in research and application
IA bang 1 wind power plant has the capacity of 50MW in Gia Lai province with the investor Thanh Dak Doa 1,2 Wind power plant - PC1 Group is the EPC gener- of technology and innovation, PC1
Thanh Cong Group. 3 wind power projects Lien Lap, Phong Huy, Phong Nguyen in Quang Tri province al contractor for the substation and transmission line. Group has synchronously equipped a
have a total capacity of 144MW. EPC general contractor connects and releases capacity of Phu Lac 2 large synchronous crane system from 800-1200 tons to serve wind power construction. Successfully
wind power plant, BIM 88MW wind power, Hung Hai wind power, and Hoa Binh 2 wind power. manufacturing and operating the undersea cable construction system brings outstanding
Moreover, PC1 Group also provides synchronous solutions for partners and customers for high- advantages to PC1 Group. The synchronous and advanced equipment, construction and installation
tech, environmentally friendly electrical projects through protective panel capacitors, synchronous of directional drilling robots, hot air balloons and flycam pull ropes across rivers, forests and seas.
automation technical control system connecting the power system from factories to the national Group.
power system. The Group has carried out merger and commercial operation procedures for power
plants in both construction, completion and COD recognition In 2022, it is expected that the output will reach VND 6,300 billion, revenue will reach VND 6,000
billion, and new contracts will be signed at the value of VND 7,500 billion.
Business results
Kết quả kinh of general
doanh Khối contractor
tổng thầufor electrical
công works2020-2021
trình điện 2020-2021(Tỷ
(Billion
đồng)VND)

8000 7.379 12% Kế hoạch

Business kinh
plan for doanh
general khốiofTổng
contractor thầu
electrical Công
works 2022 trình
(Billion điện
VND) 2022
7000 6.714 (Tỷ đồng)
10% 10%
6000 8000 7.379
8% 7000 6.714
5000 6.300
6.000
3.790 6000
4000 6.70% 6%
3.061 5000
3000
4% 4000
2000 3000
2%
1000 2000

0 0% 1000
2020
Năm 2020 20212021
Năm
0
Output
Sản lượng Revenue The gross profitgộp
margin 20202021
Năm 20212022
Năm
Doanh thu Biên lợi nhuận
Output
Sản lượng Revenue
Doanh thu
92 PC1 Group Joint Stock Company Annual Report 2021 93

Energy Investment Hydroelectricity

In 2021, overcoming challenges in all socio-economic fields, PC1 Group has succeeded and is very In 2021, hydropower plants were operated
proud in the field of zero-emission green energy. The mark is that in October 2021 wind becomes in unfavorable climatic and hydrological
the power source; PC1 Group has successfully generated 36 wind turbines in Quang Tri on the conditions to ensure maximum output.
national power grid with the investment of the Group and participation of Renova Japan. The project However, in the last months of 2021 and the
is funded by the Asian Development Bank with a value of USD 173 million and is certified green by the beginning of 2022, the hydrological situation
international climate bonds initiative. This is also the first direct loan of a Vietnamese enterprise for was favorable again.
a wind energy project sponsored by ADB and parallel lenders including the Export Finance Australia
(EFA) and the Japan international cooperation agency (JICA). 03 projects are evaluated as examples The gross profit margin of electricity sales
of renewable energy investment in Vietnam and successful lessons in cooperation with many remained high (57%) due to:
international partners. With 10 renewable energy power plants in operation, PC1 Group contributes - Electricity selling price: all hydropower
to reducing nearly 500,000 tons of CO2 per year. plants of PC1 are applied the avoidable tariff
for small hydroelectricity, this price is higher
than the contract purchase price (PPA -
Bao Lam 3A Hydropower Plant
Power Purchase Agreement) of hydropower
Kết quảresults
Business kinhofdoanh bán
electricity salesđiện năm
in 2021 2021
(Billion VND)(tỷ đồng) with large capacity (over 30 MW) about 20-
1000 928 61% 30%.
900 60% 60% - CIT incentives: Small hydropower projects
800 748 60% are entitled to the tax rate of 10% for the first
700 59% 15 years, tax exemption for the first 4 years
600 529 59% from the date of taxable income, and a 50%
500 452 58% reduction for the next 9 years (equivalent to
400 58% tax rate of 5%).
300 57% 57% - - Good project construction investment
200 57% management helps control low investment
100 56% costs, high commercial power output,
0
20202020 2021 2021
56% factories are operating at full capacity and
Năm Năm
professionally and optimally managed by a
Revenue Gross profitgộp The gross profitgộp
margin
Doanh thu Lợi nhuận Biên lợi nhuận
subsidiaries of PCC1. Regarding investment
Bao Lam 3 Hydropower Plant
plan for construction of Bao Lac A hydropower
Lũy kế công
Accumulation xuất theo
of capacity by timethời điểm
of power phát điện
generation in the giai đoạn
period 2016 -2016 -
2022 (MW)
Plant: technical design, capital arrangement
2022F (MW) and basic site clearance shall be completed
in 2022 to be ready for construction in 2023.
350
Wind power, solar power
300

250
- In 2021, PC1 Group has successfully
144 144
completed the investment in a cluster
200
of 03 wind power plants in Quang Tri. In
150 October 2021, PC1 Group officially put into
100 commercial operation a cluster of wind
169 169 169
50 114 114 114 power plants in Quang Tri, eligible to sell
60 electricity at FiT price, financed by syndicated
0
2016 2017 2018 2019 2020 2021 2022F
loans from ADB, JICA, and EFA at low finance
cost.
Thủy điện
Hydroelectric Điệnelectricity
Wind gió
- The Group has well implemented the
preparation for operation at Lien Lap,
Phong Huy, and Phong Nguyen factories
In 2021, PC1 Group’s revenue results in the energy sector recorded a growth of 24% while gross
- Cooperated with Vestas, the Investor in
profit remained high. Hydrology in the first months of the year was not as favorable as in previous
COD testing of wind turbines. Operational
years, leading to a decrease in the output of hydroelectric power plants, while 3 wind power plants PC1 Group - investor of 03 wind power plants Lien Lap personnel have been trained and certified
operating from October 2021 brought in revenue of 217 billion VND (exceeding the year plan). - Phong Huy - Phong Nguyen according to regulations, and transferred
In the last months of 2021 and the beginning of 2022, the hydrological situation has been favorable
realistic technology at the Control Rooms of
again. Energy revenue plan in 2022 is nearly 1,700 billion VND (in which electricity sales revenue is
the wind power plant.
1,665 billion VND).
- Regarding the investment plan for wind power and solar power: PC1 Group continues to research
and invest in onshore, offshore, and solar power projects at Trung Thu hydropower reservoir and
new projects. The expected time of implementation is from 2023.
94 PC1 Group Joint Stock Company Annual Report 2021 95

Industrial Production
Real estate investment and business
Revenue in 2021 reached VND 650 billion, equal to 96% of the year plan mainly due to fierce
competition in prices, raw material prices and high transportation charges. Synchronizing with the
Real estate investment business results (Billion VND) general contractor for electrical work, the revenue in 2021 mainly came from wind power plants
Kết quả kinh doanh đầu tư bất động sản (tỷ đồng) (about 60%), from EVN (about 35%) which created an outstanding competitive advantage.
856
900 40%
In return, new contracts signed at a high level, reaching 973 billion VND, equal to 135% of the year
800 39% 39%
plan. The international market expands, in 2021, 14 Monopole telecommunications columns have
700 38%
been exported to Australia and order production for many more columns is implementing in 2022.
37%
600
Kết quả kinh results
Business doanhin năm2021 2021 Two member companies of
36%
500
35% 900 16.00%
PC1 Group which are Dong
826
400
33% 34% 800 14.60% Anh Steel Tower Co., Ltd and
279 14.00%
300
33%
Thai Nguyen Galvanized Steel
700 634
200 32%
12.00% Tower Joint Stock Company,
600
100
100
39 31%
10.03% 10.00% have synchronously
500
0 30% 8.00% invested in production lines,
2020
Năm 2020 2021
Năm 2021 400 successfully designed and
6.00%
Doanh thu
Revenue Lợi nhuận
Gross profitgộp Biên lợi nhuận
The gross profitgộp
margin
300 manufactured high-voltage
4.00%
200 tower and put into use in
83 93
100 2.00% a number of projects as a
0 0.00% premise for the provision of
• In 2021, the issuance of investment policies and the start of housing projects have been delayed, 2020 2021
Năm 2020 Năm 2021 new, effective and superior
leading to failure of the plan. The main reason is due to problems with the state’s policies related Revenue
Doang thu Gross profitgộp
Lợi nhuận Biên lợi nhuận
The gross profitgộp
margin solutions for many 220kV
to the Investment Law, and the inconsistency between laws related to real estate investment has and 500kV power projects of
not been resolved. Kế hoạch năm(Billion
Plan in 2022 2022 (tỷ đồng)
VND) Vietnam’s electricity industry
• In 2022, PC1 Group plans to start and complete residential real estate projects; revenue in 2022
1200 in the coming time.
973 Thai Nguyen galvanized steel
will be more than 1,000 billion VND, profit after tax / revenue will reach 15%. 1000
878 tower factory project with
• PC1 Group and its affiliate company Western Pacific have been investing in industrial park real 800
790
a capacity of 20,000 tons/
estate development in the northern provinces (Bac Ninh, Ha Nam, etc.) and accompanying utilities 634 year, located at Diem Thuy
600 B Industrial Park, Diem Thuy
until 2025, developing many new industrial park projects with modern design in the next phase,
commune, Phu Binh district,
bringing high value to investors. 400
Thai Nguyen province
• Expecting implementation time of upcoming real estate projects such as Green home Thanh 200 started in March 2021,
Xuan, Park view Gia Lam, PC1 Thang Long, PC1 Vinh Hung and other larger-scale projects in the formerly known as branch
0
Implementation 2021 Plan 2022 of Power Construction Joint
future, promising products quality, convenience and attractiveness in the coming time. Thực hiện 2021 Kế hoạch 2022
Stock Company No.1 - Yen
Doanh thu
Revenue Newlyđồng
Hợp signed
ký contract
mới (gồm(including
VAT) VAT)
Estimated
Thuong Steel Structure
Building Expected open Factory has officially come
No. Name of Project Start Completion revenue in 2022
permit for sales
(VND bn) into operation since October 2021 and has been operating stably and efficiently.
In the coming years, the Group will focus on market work, planned bidding in the country (EVN and
1 Project PC1 Gia Lam Q2/2022 Q2/2022 Q4/2022 Q3/2022 193 (100%)
outside EVN) and abroad, and at the same time, promote the search for new customers and new
2 Project PC1 Dinh Cong Q3/2022 Q3/2022 Q4/2022 Q3/2022 783 (78%) markets in the country and abroad through AG and other partners

Project PCC1 Vinh

3 Q3/2022 Q3/2022 Q4/2023 Q4/2022 0
Hung
Low-rise:
Project PCC1 Thang Q3/2023
4 Q1/2023 Q1/2023 Q1/2023 0
Long High-rise:
Q3/2024

Groundbreaking ceremony of Thai Nguyen steel Production technology of single-body steel

column factory columns by PC1 Group
96 PC1 Group Joint Stock Company Annual Report 2021 97

Financial situation
2021

PROFITABILITY
PROFITABILITY 2017 2018 2019 2020 2021

Net profit margin 8.1% 9.7% 6.4% 8.1% 7.8%

Gross profit margin 15.2% 17.0% 14.0% 17.4% 11.8%

LIQUIDITY RATIO

Return on assets (ROA) 4.8% 7.7% 5.0% 5.7% 5.2% LIQUIDITY 2017 2018 2019 2020 2021

Return on equity (ROE) 10.5% 16.1% 10.8% 12.9% 13.8% Current ratio 1.69 1.81 1.66 1.53 1.14

In 2021, due to the increase in proportion of EPC contracts in total revenue, while the high prices Quick ratio 1.07 1.35 1.04 1.32 0.96
of materials, labor, and transportation also affected business efficiency. Hydrological conditions in
the first months of 2021 are not as favorable as in previous years, which also reduces profits from Times interest earned 4.17 4.92 3.53 3.69 3.84
hydropower plants, leading to a decrease in profit margin to 7.8% and 11.8%, respectively. In return,
the return on equity is significantly improved compared to 2020.
PC1 Group’s solvency is secure with the current ratio and even the quick ratio is always close to
1, which means that PC1 Group is able to pay its short-term debts. As of December 31, 2021, PC1
Group increased loans to increase production and business scale, leading to a decrease in quick
OPERATING CAPACITY INDICATOR ratio and times interest earned compared to 2020. Debt/Equity ratio of the Group from 2016-
2021 is relatively stable in the range of 0.5 to 0.56. This ratio helps the Group ensure a balance in
the process of raising capital and investing in its projects.
OPERATING CAPACITY 2017 2018 2019 2020 2021

Customer receivable
3.77 5.33 5.22 4.70 5.01
turnover

Average collection period 95 68 69 77 72

Inventory turnover 3.31 4.57 4.58 5.10 10.62

Age of Inventory 109 79 79 71 34

The improvement in customer receivables turnover compared to 2020, means that the average
collection period decreased from 77 days to 72 days, which is a positive sign in sales and debt
collection of the Group. In 2021, the inventory was rotated quickly, the number of age of inventory
decreased sharply by only ½ of the previous year because many general contractor projects for
large power projects were completed and accepted before October 31, 2021.
98 PC1 Group Joint Stock Company Annual Report 2021 99

Property structure Capital structure

Property structure
Capital structure
Liabilities have increased relatively
Short-term assets in 2021 will reach
strongly after years of growth in scale.
approximately VND 6,600 billion,
PC1 Group’s liabilities are mainly
an increase of 15% compared to
payables to sellers and bank loans.
2020. Contribution to this increase
Total loans accounted for 66% of
of short-term assets mainly comes
total capital. In the loan structure,
from an increase of VND 900 billion
30% are short-term loans to create
in cash and deposits, equivalent
working capital for regular production
to 55% increase over the prior
and business, the remaining 70%
year. In addition, the value of
are long-term loans for power plant
inventory also contributed to this
investment with a term of 10 years
increase when reaching more than
and preferential interest rates.
900 billion VND in 2021, mainly
coming from the Group buying
Ratio of short-term assets Ratio of long-term assets In addition, equity in 2021 reached
more materials for its ongoing and
over VND 6,280 billion, increase 32%
upcoming projects. . Ratio of liabilities Equity ratio
compared to 2020.
In particular, the Group’s long-term assets at the end of 2021 witnessed an increase of nearly
1.5 times compared to 2020, reaching VND 12,100 billion. This sudden increase is mainly due to
a sharp increase in the value of fixed assets, from 3,800 billion to approximately 10,200 billion in
2021. This has led to long-term assets accounting for the majority, nearly 65% of total assets.
100 PC1 Group Joint Stock Company Annual Report 2021 101

REPORT OF THE EXECUTIVE

BOARD
102 Results of the implementation of the business plan
and the investment situation in 2021
110 Objectives, Tasks and Plan for the year 2022
102 PC1 Group Joint Stock Company Annual Report 2021 103

• The Group has adjusted the organization

REPORT OF chart of the whole company according to the Improvements

THE EXECUTIVE BOARD

group model, towards professionalism and high
and results in
specialization, in accordance with the actual
operation of PC1 Group and legal regulations, in organization
accordance with the law. in line with the process and
of interaction in international integration and management
cooperation, in line with PC1’s strategic orientation
from 2021-2025 with a vision to 2030. Accordingly,
it is necessary to clearly define the mission and
strategic goals of the Blocks and the subsidiaries;
Functions and duties of each Department.
· State-level emulation and commendation:
Following the roadmap to recognize the title of
First-class Independence Medal for the second
9,828 764 time in 2022. Major awards won during the year:
Emulation flag of the City People’s Committee
NET REVENUE CONSOLIDATED PROFIT AFTER TAX Hanoi in 2020; First-class emulation flag of the
(billion VND) (billion VND) People’s Committee of Quang Tri Province; “Top
50 Vietnam The Best in 2021”; and continues
to maintain the position of “Top 500 Largest
Enterprises in Vietnam”.
Results achieved in management and in business • Effectively operating the 3Ps salary
and production activities regulation, in which the reasonable adjustment
of coefficients for employees is in line with
the Group’s development strategy and has
contributed to improving employees’ incomes,
• PC1 Group’s Executive Board has assigned
creating cohesion with the Group and motivate
specific tasks to each member, consistently and in
Results in employees.
solidarity to continue affirming the leadership role in
• In 2021, the Group has recruited additional
leadership and leading production and business activities to overcome PC1 Group appoints General Director
qualified and professional personnel. In addition, and the Heads
administration difficulties and challenges in 2020, especially difficulty
the Business Blocks have also actively searched
in the economy affected by the Covid-19 pandemic
and recruited more than 120 short-term experts
to achieve positive results of the whole company, to
to serve the special urgent progress requirements
control business and investment activities well, and to
of projects.
continue asserting prestige and capacity of PC1 with
• Training on international occupational
partners, customers and the market.
safety certification for GWO wind power projects,
• Leaders and managers of the Departments
other domestic certification training activities.
and the Group have tried their best and creatively
• Implement company legal documents on
implemented solutions to cope with difficult
schedule, actively participate in negotiation and
developments, non-aggressive arising of the market,
finalization of credit and international cooperation
and promote company resources, closely follow and
contracts, large value contracts, M&A transactions
successfully complete the business and investment PC1 Group reached the Top 500 fastest
actively contribute to legal compliance and
targets in the very difficult conditions of 2021. growing enterprises in Vietnam in 2021
business risk management. Actively participate in
• The Executive Board and management team of
the company’s business and investment activities.
the member units have tried to overcome difficulties,
• Promote company brand and Marketing
unite in the system, take advantage of the Group’s
new product lines: Wind power projects
strengths, prevent the Covid-19 epidemic to protect
are certified Green by the Global Emissions
the health of employees, production and business
Certification Authority. The EPC General Contractor
activities in 2021 to create momentum for the success
Division has completed and put into operation
of the Group’s strategy for the period 2021-2025.
the website promoting a number of product lines
• Being consistent and determinate to act
of EPC General Contractor, Trading in Materials
according to the Group’s strategic goals, for the
and Equipment, and Technical Services.
sustainable development of PC1 Group.
PC1 Group received a certificate of
merit from the city. Hanoi in the fight against
Covid-19
104 PC1 Group Joint Stock Company Annual Report 2021 105

REPORT OF General
contractor of

THE EXECUTIVE BOARD electrical works

Block

Bidding and marketing work

• Special attention has been paid to marketing
work, the Block promotes in-depth development of
General
analytical capabilities: Customer analysis; product Project management and administration
contractor of analysis and target products; Competitor analysis; • Affirming the ability to operate a professional power plant general contractor,
electrical works Product cost analysis; Researching new products, flexibly and proactively coordinate resources, develop scenarios to prevent risks from
Block new markets,... Continuing to affirm to be a reliable epidemics, delay delivery of goods; New and special work items are being controlled
partner for customers in the EVN system, private and implemented according to the plan such as: Construction of offshore foundations,
investors, budget investors in Hanoi and Ho Chi preparation of equipment for pulling and spreading submarine cables; Construction
Minh City. For customers other than EVN, we have and installation of wind turbines, completion of all energizing procedures, factory COD...
proactively approached, grasped the trend of changing • Applying project management software in the management of projects of the
management and operation methods of customers, Management Board, operating according to PMI standards.
grasped the policies, tastes and actions of customers to
have appropriate plans to meet customer satisfaction. Technical management, Occupational Safety and Health (OSH) and machinery
Proactively propose overall solutions to customers, investment
creating a premise for customers to proactively choose • Technical management, OSH and investment in machinery of the Management
packages suitable to the requirements of each investor Board, electrical control are well done on the construction sites.
and each investment stage. Target customer care • Successfully invested in and manufactured a system of machinery for undersea
has been raised to a new level, creating a long-term cable construction and put into operation Tan Phu Dong 2 Wind Power Plant Project.
cooperation relationship as well as a bridge to new • The OSH system of the projects is strictly and effectively implemented to ensure
potential investors, through the good judgment and labor safety and prevent epidemics in peak periods.
evaluation by investors that PC1 has cooperated with.
• Update and customer management: Has been Procurement and management of materials and equipment
improved, has a dedicated department to implement - Procurement and management of materials and equipment: (i) Basically ensure
each business segment, in December 2021, PC1 Group the progress of supplying materials and equipment for contracts. (ii) Gradually building
used CRM software to improve customer service and the advantages of buyers with large equipment manufacturers.
efficiency of marketing.

• · Ancillary businesses continue to do well on

their mission: Adding services to contribute to PC1’s
synchronous solution to meet high customer demand,
while promoting the strengths of the PC1 ecosystem, Production and
Planning and contract management improve competitiveness and also increase overall
• The ability to manage general contractor contracts continues to be improved and profit.
Trade of New
enhances the position of the Group against new and traditional competitors. Competen- materials Block
cy records to meet participation in the EPC substation and 500kV transmission bidding, • sSuccessfully implementing the target of
the level of management staff has achieved new steps, actively control the progress, sup- consuming output products and supplying input
port the Investor to urge the parties, handle timely situations to ensure that the project’s materials for Cao Bang Iron and Steel Joint Stock
objectives are completed on time. Company, Completing the negotiation and signing of
• Basically completed Phase 1 of BI intelligent reporting application software and the exclusive contract of Kyoei steel distribution in the
will synchronize with the “Digital Transformation” program to upgrade to phase 2 in 2022. first quarter of the year 2022; Develop a new product
development plan.
106 PC1 Group Joint Stock Company Annual Report 2021 107

REPORT OF

THE EXECUTIVE BOARD

Business and Marketing
New project development
• Dong Anh Steel Tower Co., Ltd (DAST) signed an
The Real Estate Investment Management Board
order to export Monopole telecommunications poles
researched new projects in the direction of investment
Industrial to Australia, has already exported 14 columns and is
cooperation with strong partners, oriented to invest in
Production Block implementing orders for many columns in 2022. Real Estate
medium and large-scale projects, expanding into the
• Thai Nguyen Galvanized Steel Tower Joint Stock
Company (TNST): Construction started on March 11,
real estate sector. industrial and logistics products, Business &
2021, and officially came into operation in October
river ports, seaports. Investment
2021. The company was transferred from Yen Thuong
Investment preparation work
Branch. The factory has just been put into operation
Carrying out the investment preparation work of 04
but has been very active in market work and has initially
projects:
achieved positive results.
• PC1 Gia Lam Project (Yen Thuong): Implement
• Project management ensures quality and
the project on the land of Yen Thuong steel structure
schedule, meeting customer requirements.
factory;
• PC1 Dinh Cong Project: Completed the M&A
of Commercial Equipment Joint Stock Company and
Design and Engineering: started preparing for the project investment at the
• Proactively calculate, estimate materials, issue drawings in a timely manner, land area No. 1, Lane 120 Dinh Cong, Phuong Liet
contributing to completing the delivery schedule of key projects, requiring urgent delivery ward, Thanh Xuan, Hanoi;
schedule. • PCC1-Vinh Hung Project: The project started
• Coordinate with consulting units to participate in designing many projects of single behind schedule due to legal barriers that have not
electric steel poles to facilitate market access, proactively prepare materials for key projects been removed, obstacles in applying for investment
with urgent progress. policy;
• Urging the implementation of safety work: periodical training, retraining on OSH for • PCC1-Thang Long Project: has completed site
employees; Prepare periodic reports as required. clearance for the land owned by households and
• Effective application of CNC cutting and data making software for shaped steel tower. continues to work with relevant departments and
Putting into use a monopole design drawing software. agencies to propose the appropriate planning for the
project.
Production work
• Satisfy the delivery schedule of the projects. Developing and implementing a plan to Project management
ensure production safety in order to realize the dual goal of “both production and epidemic • PCC1 Thanh Xuan project: Completed 100% of
prevention”, at some point of time, DAST has to perform “3 on-site” in order not to break the the sales of project apartments in the first quarter;
production chain. export. Complete 100% grant of house ownership certificates
• Maintain and improve the efficiency of management and use of human resources to customers who have submitted documents,
and machinery in production. Completed signing of electricity and water purchase
• The investment equipment is all promoting good efficiency, there are many initiatives and sale contracts.
in the manufacture of specialized equipment: pipe straightening machines, pipe fixing • The area/assets left from the projects are
machines... exploited, the rent is adjusted appropriately during
the epidemic situation to maintain a stable income
Product quality management during the year.
• Maintain quality control from purchase of materials to delivery to the construction
site, improve quality supervision at all stages, especially packaging.

Purchasing, transporting goods, managing materials:

• Actively research the market of materials and auxiliary materials to proactively
procure and coordinate materials to ensure quality and progress for projects.
108 PC1 Group Joint Stock Company Annual Report 2021 109

REPORT OF

THE EXECUTIVE BOARD The implementation project

• Successfully completed the investment in 3
wind power projects in Quang Tri, put into operation
before October 31, 2021, ensuring the conditions to
apply the electricity selling price (FIT) 8.5 Us cent.
Investment in
Capital arrangement
- The loan appraisal and approval process wind power
Results in the field of energy investment
according to high international requirements has been project
successfully implemented. The project appraisal units
are large international consulting firms, including:
engineering (Afry); financial modeling (Pwc); insurance
and risk assessment (Marsh); project legal (Mayer
The implementation project Brown); environmental and social impact assessment
• Initially, procedures have been carried out to (ERM).
prepare for Bao Lac A hydropower investment. - In May 2021, the Asian Development Bank
Investment in (ADB), the Australian export credit institution (EFA),
Operational management the Japan International Cooperation Agency (JICA)
hydropower and the co-financing banks officially signed a contract
• In 2021, hydroelectric power plants operated provide credit for wind power projects.
projects in unfavorable climatic and hydrological conditions - Complete the loan disbursement in two
to ensure maximum output. However, power plants phases in August 2021 and December 2021.
ensured stable, safe and efficient operation, exploited
well water resources, especially in the dry season Operational management
• Well implemented the preparation for
months. operation at Lien Lap, Phong Huy, Phong Nguyen
• Power plants always actively coordinate with factories - Coordinate with Vestas and the Investor in
dispatching units A1, A0 and other plants on the COD testing of wind turbines. Operational personnel
same ladder system in reservoir operation and power have been trained and certified according to
generation. regulations, and transferred practical technology at
the Control Rooms of the Wind Power Plant.
• The flood control and reduction work is well • Additional training on Safety - Environment
done, ensuring absolute safety for the project, the - Society in operation management, meeting the
downstream area of the factory as well as ensuring the requirements of lenders (ADB, JICA, EFA).
optimal transmission time of each unit.
• The Operational Management Unit (BLEC)
has also coordinated with the Owners of the plants
to complete the installation of the Hydrological
Monitoring Systems connected to the Water Resources
Management Department according to Circular
Financial situation
47/2017/TT -BTNMT, rain measurement systems at
hydroelectric power plants fully meet the requirements
as prescribed.
• The use of software to support the operation Completing the plan to increase the Group’s charter capital in 2021 from VND
of power units has been more effective in power 1,912 billion to VND 2,352 billion through paying a share dividend at the rate of
generation. 20% according to the Resolution of the General Meeting of Shareholders in 2021
and issuing shares under the Employee Stock Option Program (ESOP).

The Group has healthy finances, always growing in terms of assets, capital, and
revenue. Along with the expansion of investment scale, the debt value also
increased, but the Group always calculates and well control financial risks such as
liquidity risk, interest rate risk, exchange rate... The Group’s liquidity ratio is always
safe and at a good level compared to other enterprises in the same field. As of
December 31, 2021, the value of bad debts and inventories to be provisioned for
was only 0.05% of the total asset value.
110 PC1 Group Joint Stock Company Annual Report 2021 111

Industrial Production Block

2
REPORT OF
· Focusing on domestic (EVN and outside EVN) and international marketing, planned

THE EXECUTIVE BOARD

bidding.
· Searching for new customers and new markets in the country and abroad through AG
and other partners.
· Highly active in marketing, promoting market development for tubular steel poles and
bringing tubular steel poles into EVN’s projects.
· Monitoring and ensuring the quality of the Monopole project exported to Australia as
Plan for 2022 a premise for negotiating the next orders.

Facing interwoven opportunities and challenges in 2022, the Executive Board has set targets
for production and business plans for 2022 in accordance with the market reality as well as the
development strategy of the Group, as follows: Energy Investment
3
· Bao Lac A hydropower project: Implement site clearance and prepare auxiliary works.
Construction is expected to start in the third quarter of 2023.
· Power generation plants: Manage and operate 07 hydropower plants, 03 wind power
plants safely and effectively.
· Bao Lam 3, Bao Lam 3A, Bao Lam 1, Trung Thu hydropower projects: Completing
the restoration and dredging work after 5 years of operation to ensure safe operation and
improve power generation efficiency projects in the first quarter of 2022.

11,003 657
· Continue to research and invest in onshore, offshore, solar power projects at Trung Thu
hydropower reservoir and new projects. The expected time of investment implementation is
NET REVENUE FROM SALES from 2023.
CONSOLIDATED AFTER TAX
OF GOODS AND PROVISION · Research and develop new projects, prepare investment procedures and prepare
PROFIT resources to properly deploy investment opportunities in terms of electricity purchase price
OF SERVICES (Billion VND)
(Billion VND) policy, electricity planning. Concentrate and actively seek opportunities to reduce electricity
production costs.

Real estate block

4
Specific tasks in 2022 by Block In 2022, the Real Estate Block will focus heavily on implementing ongoing projects, ensuring
the business goals of the year and the period of 2022-2025. In there:

General contractor of electrical works In which:

1 Criteria UNIT Total value PC1 Gia PC1 Dinh PCC1

PCC1
Thang Others
Lam Cong Vinh Hung
The slogan of 2022 is: “Professional - Creative - Effective” Long
“Building the foundation - Reaching out” Construction
VND
investment 444.92 76.46 186.27 106.38 75.81
billion
The core missions of the Block output
• Implement annual goals according to block’s strategy and corporate strategy 2021- Total project VND
192.87 1,001.57 744.73 1,935.88
2025. revenue billion
• Complete the production and business plan targets in 2022.
• Growth and enhancement of market share in EVN; promote market advantages for Sales completion
% 100% 80% 10%
rate
existing private investors, capital market for budget investment in Hanoi and Ho Chi Minh City
and industrial zone market that PC1 Group is investing. Revenue of the VND
• Continue to improve the efficient operation apparatus, successfully apply digital 1,027.87 192,87 782,93 0 0 52,08
reporting period billion
transformation into production and business activities. VND
Profit after tax 153.19 25.22 120.72 7.25
billion
112 PC1 Group Joint Stock Company Annual Report 2021 113

General management
7
REPORT OF
· Emulation and commendation at the state level: Striving and determined to win the

THE EXECUTIVE BOARD award of First Class Independent Medal to celebrate the 60th anniversary of the Group’s
establishment. Implement well the internal emulation and commendation activities and strive
to achieve a number of individual titles at the State level in the Group.
· Internal communication: Improve the efficiency of internal communication, programs/
projects, cultural events, exchange programs, internal newsletters, PC1 magazine to convey
Specific tasks in 2022 by Block strategies, core values, spreading the spirit of solidarity, initiative, creativity and trust to create
cohesion among employees. Strongly implement movement and collective activities, in 2022
(in case the epidemic is still complicated, it will be strongly deployed on digital platforms),
Personnel organization work objectives: Building a strong company culture, strengthen solidarity and mutual support and
5 effective internal communication. Coordinate with the Digital Transformation Department to
apply digital platforms in marketing activities inside and outside the Group.
· Operate the new organizational chart effectively, the goal is that all employees understand · Social responsibility: Continuing to effectively implement social programs in the areas
the functions, tasks, work flow, scope of responsibility and coordination, limiting problems where the Group has production and business activities, in order to enhance the Group’s
arising in the business process; social responsibility, the sense of responsibility for the community of each employee.
· Recruiting to complete the middle management apparatus and have enough personnel · Coordinate with consultants, experts, domestic and foreign technology companies to
to meet the business development goals at high speed. complete the Group’s digital transformation roadmap to 2025, in which to accelerate the
· Develop a policy framework, plan and implement long-term training programs towards implementation of digital transformation projects in 2022 approved by the Corporation’s
the goal of raising the level of human resources, training effective successors, adding new Digital Transformation Council or the competent authority.
business knowledge according to the trends of digital economy, digital company by 2025.
Effective management and implementation of training programs in 2022, especially knowledge
training on digital business, digital products and company digitization roadmap.
· Synchronously and effectively operate additional welfare programs and policies,
programs to encourage and motivate employees, combine emulation and reward, and other
collective activities to create an dynamic, creative, open and friendly working environment.
· Coordinate and implement the application of digitalization of human resource
organization according to the Digital Transformation roadmap of the Group. Especially put
into operation effectively the HRM software developed in 2021

Finance and accounting work

6
· Deploying tasks in 2022 and the 2021-2025 plan with big strategic goals, rapidly
increasing capital demand and cash flow management, requiring human resources to
do finance & accounting work at the parent company and subsidiaries to improve their
professional qualifications and management capacity through supplementing, arranging and
better training human resources to meet the Group’s development needs.
REPORT OF THE BOARD OF
DIRECTORS
116 Assessment of the Board of Directors on the Group’s
activities in 2021
117 Forecast of economic situation in 2022
119 Key objectives of the plan year 2022
116 PC1 Group Joint Stock Company Annual Report 2021 117

Objectives, Tasks and plan In 2022

REPORT OF In 2022, the second year implementing the strategy for the period 2021-2025 with a vision to

THE BOARD OF DIRECTORS

2035 with a new look: PC1 has changed its name to PC1 Group Joint Stock Company vwith
a new brand identity which is: international, dynamic, modern, cohesive, hopeful and
breakthrough, long lasting development.

Launching the 2022 plan with the Workshop: Innovation and digital transformation, with the
Assessment of the Board of Directors on the Group’s activities in 2021 high determination of the Board of Directors, the Board of Management; the Company’s goals of
activities will be fully synchronized on digital platforms by 2025. .
PC1 implemented the 2021 plan based on the Group’s strategic goals for the period of 2021 - 2025,
closely followed the actual market and social situation, and maximized the Group’s resources in Forecast of economic situation in 2022
the context of the Covid-19 pandemic outbreaks again have profoundly and seriously affected the
The difficult recovery of the global economy in the post-Covid period, serious effects from political
overall socio-economic in Vietnam and the world. With the opportunities and challenges intertwined,
conflicts between great powers, international factions, and wars between nations are happening.
with the efforts, creativity and determination of the Executive Board of the Company, leaders of
In 2022, Vietnam is facing great and difficult-to-quantify challenges due to the post-pandemic
the Departments, the efforts of member companies throughout promoting the strengths and
effects and the great influence of global economic difficulty. The socio-economic development
distinctive capacity of PC1, effective and timely response solutions, PC1 has continued to affirm its
target in 2022 is approved by the National Assembly, in which GDP should increase from 6.0-6.5%,
prestige and position, overcome difficulties and challenges. The Group’s business results in 2021
GDP per capita reaches 3,900 USD, average growth rate of consumer price index (CPI) around
exceeded the plan in extremely difficult conditions and had a positive growth in both revenue and
4.0%.
profit.
Vietnam’s electricity industry is currently meeting the load demand, but the power system is facing
In 2021, the Company received honorary awards to recognize business results and social and
major challenges: i- Imbalance of power sources; ii- The transmission capacity between power
community activities such as “Top 50 excellent profitable enterprises in Vietnam in 2021” and
source areas to the unresponsive power areas; iii- Challenges of the Government’s commitment to
continued to maintain its position “Top 500 Largest Enterprises in Vietnam”, FAST 500, Top 50 Best
reduce emissions; iv- The master plan is difficult to respond to the actual economic development
Growth Enterprises in Vietnam; Emulation flag of Hanoi People’s Committee in 2020, First-class
of the regions, difficult to quantify the fluctuation of input fuel for different types of power plants;
emulation flag of Quang Tri Provincial People’s Committee, Certificate of Merit of Vietnam General
v- The risk of power shortage in the years after 2023 without specific solutions; vi- The policies
Confederation of Labor, Certificate of Hanoi People’s Committee in contributing to the prevention
related to the development of the electricity industry are still inadequate.
of COVID-19 -19 etc.
Factors that positively affect business activities in 2021: The residential real estate market, industrial real estate is on the rise and has attracted a large
investment of domestic and foreign capital. New draft laws to be passed by the National Assembly
- The Group’s timely and effective response to complex and difficult developments caused by the are expected to remove barriers for many projects and the supply of real estate is expected to
Covid-19 pandemic on a large scale with many specific, practical and effective solutions for each increase.
investment and production activity business. The stock market is forecasted to have many fluctuations, great influence from the world economy,
- The creative and drastic management of the Executive Board, the operating system, the efforts and will continue to attract investment, with a positive growth trend.
and hard work of all employees of the Group to overcome difficulties and challenges.
- Continue to promote and develop prestige, human resource strength in governance, financial Macroeconomic opportunities:
resources, strength in technology and construction machinery and equipment of PC1, the trust of
partners, customers in investment activities, EPC general contractor, Electrical works construction - Resolution No.01/NQ-CP of the Government has shown high determination in socio-economic
and installation, industrial production and equipment and materials trading; recovery and pandemic response. The Government sets a target of GDP growth of 6-6.5% in 2022;
- Actively seize opportunities to invest in wind power plants and in the Group’s business activities. focuses on disbursing 100% of the public investment capital plan; approves the economic recovery
support package of nearly 350 thousand billion VND; targets to reduce lending interest rates by
Some factors that negatively affect business activities in 2021: 0.5-1% in 2 years, 2022 and 2023.
- Foreign direct investment (FDI) has an opportunity to increase in 2022 and the following years,
- The serious re-emergence of the Covid-19 epidemic has disrupted and stalled all activities globally, this is an opportunity for PC1 to increase revenue and develop business pillars.
and Vietnam’s economic growth has dropped deeply. PC1’s business areas around electricity - Capital and financial markets: The domestic financial and monetary policies are favorable and
industry, real estate industry have faced many great difficulties and challenges. stable. The responsiveness of the capital market and reasonable costs from domestic and foreign
- Prices and costs of input materials and equipment, fluctuated logistics, trading, transportation, arrangements are favorable to enterprises.
acceptance and delivery of products faced many difficulties; lack of labor force, lack of foreign
experts for many projects.
- Investment plans for many key power grid projects of the power sector continued to be started
and completed slowly, highly competitive and complex.
- The leadership and management capacity of a few member units is limited, unable to adapt to
the difficulties and fluctuations, as well as speed of technology integration and application and the
increasing level of market competition.
118 PC1 Group Joint Stock Company Annual Report 2021 119

Main objectives of the 2022 plan year

REPORT OF 2022 is a key year that plays an important
role in the success of the Group Strategy
657
THE BOARD OF DIRECTORS for the period of 2021 - 2025 with the
determination to innovate and develop.
CONSOLIDATED AFTER
Key tasks: TAX PROFIT
(Billion VND)
- Adjusting the Company Strategy for the
period of 2021-2025 according to actual
Objectives, Tasks and plan In 2022 developments; Effectively operating
the Group’s organizational chart with
the new name PC1 Group Joint Stock
Company - developing a new, successful
Opportunities for PC1’s business pillars

11.003
and reliable PC1 brand identity.
- Electricity planning VIII is expected to be approved in mid-2022; accordingly, the Government’s
policies will prioritize the development of RE, wind power, transmission grid investment in the - Deploying the first year of the Group’s 11,003
digital transformation roadmap with NET REVENUE FROM SALES OF
form of BOO. This is PC1’s strategic investment opportunity, investment cooperation with energy
fast progress, through strong resource GOODS AND PROVISION
projects and electricity transmission grid. investment with right and correct steps. OF SERVICES
- According to the forecast of EVN, commercial electricity 2022 shall increase 7.6% and EVN (Billion VND)
disbursements shall increase by over 9% compared to 2021, in the following years, the demand
for loads shall continue to increase according to the growth rate of GDP. This is opportunity for Energy Investment Block: Efficiently operating 10 power plants that are generating electricity. Designing,
PC1 to invest in power and EPC general contractor growth for grid works, general contractor investing and operating the OCC-PC1 Center to improve the efficiency of power generation, modernizing
the operation according to the remote control center, with the goal of providing OCC operation services to
opportunities for RE power plants, offshore wind projects, LNG plants.
customers who are investors. Reviewing and making investment plan of factory projects already planned.
- There is still a lot of potential in the Vietnamese real estate market, PC1 has prepared new Promoting cooperation with reputable and foreign partners to develop large-scale power source projects,
projects for investment, and policies will be dismantled for PC1’s projects that are in trouble in the preparing for effective investment in energy development to 2030.
coming time. Opportunity to develop small and medium scale projects in the future. EPC general contractor block: Continuing to invest in developing the scale, reputation and capacity of EPC
- The world color metal market has a high price increase; this is opportunity for PC1 when general contractor at the international level of renewable energy power plant projects.
completing mining and mineral processing projects. Improving the capacity of providing synchronous solutions for customers with smart and efficient electrical
works, in order to create the power, difference, and reliability of PC1;
Investing to catch opportunities with trending and high potential projects in the coming period;
Challenges for PC1 in 2022
Promoting research and investment in new technologies, new construction machinery and equipment,
- The world economy, Vietnam’s economy in the post-Covid recovery period; political conflicts technological products and digital translation according to competitive strategic goals.
between factions, countries around the world are increasing tensions with large scale that greatly Electrical Construction and installation block: Improving management and operation capacity; continuing
affects economic growth of the world and Vietnam. The challenge for PC1’s business areas will be to maintain its leading position in the EPC, PC, underground cable and construction and installation of special
dependent on erratic, slow, high input costs and logistics, adversely affecting investment activities, power grid projects with high technical requirements;
investment cooperation, equipment and machine import, export of PC1. Successfully implementing industrial park infrastructure projects, expanding new market segments, developing
electricity business opportunities and providing high-quality industrial utility services.
- The strategic target of PC1 for the period 2021-2025 is high growth, while in the general context,
Industrial Production Block: Synchronously and effectively operating the organizational chart under the
Vietnam’s GDP growth in the 5-year plan is low at 6.5% but it is difficult to achieve. The industry’s new management model, maintaining the leading position in the steel tower design and manufacturing
load growth electricity also slows down the GDP decline in the whole 5-year period. market in Vietnam;
- The low construction unit price policy of the electricity industry, the entry of new domestic and Successfully developing new products into large projects of EVN; Continuing to closely monitor and expand
international competitors will also be challenges for the Power Construction General Contractor markets and products for export to other countries; Researching to expand the scale of industrial production
Block and the Manufacturing Block in the current period. to other products and market segments with advantages in the product ecosystem of PC1.
Continuing to promote the capacity of innovation initiatives in design, technology and production machinery,
- Policies on emission reductions, on new electricity prices, investor selection policies of the
increasing competitive advantage, and improving production efficiency.
Government, Ministries and sectors, together with competition from international corporations
Real Estate Investment Block: Highly focusing on completing investment procedures for projects planned
with strong financial potential, cheap capital, and experience in investing in large-scale renewable to be completed in 2022. Continuing to complete licensing of ongoing projects. Developing new projects
energy projects are challenges for PC1’s energy investment goals. according to market trends.
- The real estate sector is operating according to the trend of large-scale projects with full of New materials production and trade block: Highly focusing on completing the construction and reliable
functions and utilities, high level of investment competition with large domestic and foreign operation of the Nickel-Copper Cao Bang factory. Implementing legal procedures for unfinished projects.
corporations, requiring investors of the projects to have large human and financial resources are Implementing professional commercial business development projects with existing and new products;
Researching to invest in production of new products that revolve around the business pillars PC1 and have
a challenge for PC1 currently.
high demand in the market, with investment advantages of PC1.
- In addition, the challenges of climate change, natural disasters, and policy adjustments with Other products, services, and consulting in order to add value to the Group’s ecosystem should focus
high requirements on environmental protection; the trend of 4.0 technology application and on improving management capacity associated with Digital Transformation to provide smart products and
digitization, competition with international competitors are also concerns that need practical and utilities together with business pillars providing synchronous solutions, contributing to satisfying the needs
effective solutions from PC1’s leadership, executive board and member units to handle. of customers.
 SUSTAINABLE DEVELOPMENT

5 122
125
126
Sustainable development message
Sustainable development orientations
Sustainable development indicators
122 PC1 Group Joint Stock Company Annual Report 2021 123

Dear shareholders and stakeholders!

PC1 Group Joint Stock Company with nearly 60 years of construction

and development, always making impressive breakthroughs, has

SUSTAINABLE
been mastering advanced scientific and technical technology as
a prestigious EPC general contractor, capacity is demonstrated
through super high voltage power transmission projects and
DEVELOPMENT MESSAGE renewable energy plants with products with preeminent and
world-class features, affirming to be one of the leading companies

“
in Vietnam in EPC general contractor for high voltage and super
Introduction high voltage electrical works.
Sustainable Development Report 2021 of PC1 Group Joint Stock Company is
We know that the progress of our business depends greatly on
incorporated in the Annual Report 2021 to avoid duplication of information, the well-being of the communities we serve. For that reason,
and to provide quality information with brief and concise content for from the very first day of its establishment, PC1 Group has made
shareholders and relevant parties. The purpose of Sustainable Development constant efforts to bring the highest value to everyone from
Report is to provide information on the orientation, development policies of PC1 Group family members to familiar partners and the social
the Group, policies related to environment, society, community, employees community. PC1 Group has been implementing domestic and
and other relevant parties. foreign projects, satisfying customers’ needs with smart projects
and products, green and environmentally friendly projects, for a
sustainable development of Vietnam.
Target

Sustainable development report is an important part of the Annual Report to Climate change is affecting human lives more and more deeply
help investors, shareholders and stakeholders access information about the and seriously. The world is moving towards clean energy sources,
renewable energy. Vietnam is not an exception to that trend. The
development strategy and business activities of PC1 Group in the sustainable
Government has been committed to a priority policy for renewable
development aspect. The content of report will summarize and evaluate energy development, with the goal of reducing emissions to
sustainable development activities of the Group. zero by 2050. PC1 Group Joint Stock Company is confident to
successfully implement zero-emission power plant projects.
Scope
PC1 Group Joint Stock Company is currently the investor of 10 renewable energy plants that meet
This report is made within the operation scope of the Group, its subsidiaries
international standards in terms of social environment, contributing to reducing nearly 500,000
and within territory of Vietnam. The data in the report is updated for the fiscal
tons of CO2 per year. PC1 Group aims to have a generating capacity of 700 MW connected to
year 2021, starting from January 1, 2021 to December 31, 2021. the national grid by 2025, actively contributing to ensuring energy security and clean electricity in
Vietnam.

Basic for making report We believe that sustainable development is not inseparable from the business operations of the
enterprise but actually derived from the way the business operates. In the long-term development
The report is made based on the guidance of making Annual Report in strategy of PC1 Group, the goals of sustainable development will be Lodestar for company to go on
Circular No. 96/2020/TT-BTC; based on the standard guidelines of the Global the right path - the path to success, to build a good and civilizing society. With the goal of becoming a
Reporting Initiative (GRI); leading company in the field of general contractor for electrical works, renewable energy investment
and expanding to other fields, PC1 always concentrates and pays attention to building company in
the direction of stability, sustainability, bringing the highest satisfaction for shareholders, creating
Contact address a professional and safe working environment for employees, ensuring harmony of interests for
stakeholders and actively contributing to the development of community.
PC1 Group makes all effort to meet the expectations of its stakeholders by
transparency of information, sustainable growth, and showing corporate
Today, sustainable development has become the journey of all PC1 Group employees. This journey
responsibility to the social community. We are therefore looking forward requires every employee to have new thinking, creative spirit to create different values for the
to receiving your comments. If you have any feedback about sustainable community and the desire to turn water into electricity of PC1 Group staffs. And the Board of
development, please send it to: Directors commits to do its best to ensure that the Group will continue on the path of sustainable
PC1 Group Joint Stock Company development.
Address: CT2, PCC1 Nang Huong Building, No. 583 Nguyen Trai - Thanh Xuan
- Hanoi On behalf of the Board of Directors and the Executive Board, I would like to sincerely thank you for
your concern for The Group!
Phone: 02438456329 Fax: 0243823997
Chairman of the Board of Directors

MR. TRINH VAN TUAN

 Annual Report 2021 125

SUSTAINABLE DEVELOPMENT ORIENTATIONS

Sustainable development model Shareholders
Employees
Community
The Group always attaches a sustainable development
strategy to the overall development strategy of the enterprise The State
to ensure long-term growth. In addition, the Group wishes to
create values for society and environment, meet expectations
and fulfill obligations and rights of related parties. Since then,
action plans are based on proactive and positive sharing from
stakeholders in order to quickly identify issues that need to be
changed and developed in order to better improve policies of
the Group. Environment
Customer-
Partners

BOARD OF DIRECTORS
- General orientation and strategy of the Group
and its subsidiaries. I. Customers - Partners IV. Employees
- The joint action programs. - For customers, PC1 Group puts prestige - Developing effective and reasonable
and quality on top, in order to bring the highest remuneration policy with competitive income.
values and satisfaction to customers. - Building working environment to create
- For partners: PC1 Group aims at the trust conditions for workers to maximize their capacity.
EXECUTIVE BOARD and respect of each other, cooperating with mutual - Taking care of spiritual life for employees
- Orienting and directing in general Sustainable benefit and accompanying to bring good values to and creating corporate culture.
Development of the Group and its subsidiaries. society.
- Approving goals and action plans. II. Shareholders V. Community
- Associating the sustainable development of
- Associating the development of PC1 Group
PC1 Group with long-term interests of shareholders
with the development of localities where the Group
and investors through;
FUNCTION PARTS UNDER THE GROUP has production and business activities.
- Disclosing information sufficiently,
- Developing and submitting specific plans and - Supporting the difficult circumstances
accurately and timely;
actions to the Executive Board. through volunteer programs.
- Governing The Group transparently and
- Deploying, guiding subsidiaries to implement,
effectively; VI. Environment
monitoring the plans and actions approved by
- Developing stable dividend policy, towards
the Executive Board.
sustainable development; - Complying with the regulations of the law
- Building and strengthening investors’ on the environment.
confidence in PC1 brand and stock. - Using resources efficiently.
- Researching the potential of renewable
III. The State energy sources to invest and minimizing negative
EXECUTIVE BOARD OF SUBSIDIARIES
- PC1 Group ensures strict adherence to the impacts on the environment.
- Deploying, supervising the implementation of
plans and actions at subsidiaries. State’s policies in all its production and business
- Evaluating the performance and making activities.
evaluation reports to submit to the Executive - Contributing to the process of building
Board. infrastructure for the development of the country.
- Ensuring the fulfillment of tax obligations
and contributions to the State budget.
126 PC1 Group Joint Stock Company Annual Report 2021 127

SUSTAINABLE DEVELOPMENT INDICATORS

Responsibility for
environment

Recognizing the role of the environment in production activities and aiming at the goal of sustainable development,
PC1 Group strives to implement solutions to effectively use resources, comply with environmental protection
regulations. , studying the potential of renewable energy sources to invest and minimize negative impact on the
environment.
Investment in the development of renewable energy sources

At the 26th United Nations Climate Change Conference (COP26) in Glasgow, Scotland, Prime Minister of Vietnam
- Pham Minh Chinh - once again pledged that Vietnam would join the global climate change solution. Vietnam
aims to increase the share of clean energy in the total primary energy supply to at least 20% by 2030 and 30% by
2045, and commits to gradually phase out coal-fired power generation and achieve net zero emissions by 2050.
Trade could be an important part of the solution to the climate change problem that Vietnam is experiencing and
will need to be addressed in the coming years. Green trade – or cleaner trade, trade in environmental goods, The signing ceremony took place online to prevent and control Covid-19.
eco-friendly goods – can help Vietnam achieve its climate commitments and ambitions to become a high-income
economy by 2045 as outlined in the Socio-Economic Development Strategy 2021-2030.

In 2021, the world has experienced a period of terrible crisis and unprecedented losses in all socio-economic -
human fields. Overcoming that challenge, PC1 Group has succeeded and is very proud in the field of green, zero- “This is the first time we have directly
emission energy. The mark is that in October 2021, wind power becomes electricity; PC1 Group has successfully cooperated with a group of international
generated 36 wind turbines in Quang Tri on the national grid invested by the Group with the cooperation of financial institutions and commercial banks
RENOVA Japan. The project is funded by the Asian Development Bank (ADB), the Export Finance Australia (EFA),
in the field of renewable energy investment
and the Japan International Cooperation Agency (JICA) with a value of USD 173 million. This is ADB’s first grant
for a wind power project in Vietnam, and has been certified as a “green” loan by the Climate Bonds Initiative-
through a project finance loan with limited
management unit of International Climate Bond Certification and Standards Program. recourse right without any government
guarantee. The successful cooperation with
At the same time, the Projects have also carried out Reports on Initial Environmental and Social Assessment (IESA) ADB, JICA, EFA and international financial
to assess the impacts related to the Project in terms of environmental and social aspects in accordance with the institutions has affirmed PC1 Group’s position,
ADB’s Safeguard Policy Statement, (2009), ADB Social Protection Strategy (2001), ADB Gender and Development prestige and financial capacity in both
Policy (1998), JICA’s Environmental and Social Guidelines and associated World Bank Environmental, Health and domestic and international markets.”
Safety (EHS) Guidelines). The IESE reports have been approved by ADB, EFA and JICA and published on ADB’s
Mr. Trinh Van Tuan - Chairman of the Board of
website.
Directors of PC1 Group
128 PC1 Group Joint Stock Company Annual Report 2021 129

SUSTAINABLE DEVELOPMENT INDICATORS

Use of energy
Responsibility for
environment For office block

the Group always adheres strictly and regularly

Investment in the development of renewable energy sources
updates the provisions of the environmental law.
Lien Lap, Phong Huy and Phong Nguyen Wind Power Plant Projects are jointly invested and operated by Therefore, the Group has never been sanctioned
PC1 Group and Renova Company with a total generating capacity of 422 GWH per year. The cluster of 03 in environmental issues.
factories will contribute to reducing emissions of 162,430 tons of CO2 per year. Together with 07 operating Trung Thu, Bao Lam 1, Bao Lam 3 and Bao Lam 3A
renewable energy plants, on average, PC1 Group will contribute to reducing more than 500,000 tons of CO2 hydropower plants have applied 5S method with
each year. In addition, during construction and operation, factories comply with international environmental the aim of improving the working environment
and social standards, and at the same time, actively contribute to the improvement of livelihoods and gender in scientific, neat, clean, beautiful, comfortable,
equality, as well as the development of local socio-economic development. healthy and safe manners for employees of the
Group.
At the same time, the Group regularly organizes
propaganda and education classes to raise
awareness about Environmental Protection,
compliance with the regulations on outside waste
collection and treatment
For production block

5S standard is the basic foundation for

implementing quality assurance system from the
point of view: If working in a healthy, clean, airy and
convenient environment, the spirit will be more
comfortable, the labor productivity will be higher
and there have conditions for the application of
a more effective quality management system.
The 5S method was invented by the Japanese
and they are also very proud when the whole
world applies their method. 5S is the first letter
of the Japanese words: “SERI”; “SEITON”; “SEISO”;
“SEIKETSU” and “SHITSUKE”.

Use of water, wastewater and waste

For a common goal of global environmental protection, PC1 Group constantly sets out policies
to maintain the assessment of the water used; the impact of waste water on the environment
through the control of input (water). and outputs (emissions from operating activities of office
sector and especially the industrial production sector).Types of waste and garbage likely to harm
the environment are actively handled by PC1 Group in 2021.
Water saving measures used by the Group:
- Using water-saving toilets (automatic shut-off faucet, automatic flush tank, ...)
- Regularly conducting activities to check for leaking water and take timely remedies.
- Reusing water for other activities of the Group and factory.
- Not using toilet water for other purposes.

Report on assessment of the operating environment of 3 wind power projects invested by

PC1 Group
130 PC1 Group Joint Stock Company Annual Report 2021 131

SUSTAINABLE DEVELOPMENT INDICATORS

Responsibility for Dong Anh Steel Tower Factory and
environment Thai Nguyen Galvanized Steel Tower
QUALITY OBJECTIVES, ENVIRONMENT AND IMPLEMENTA-
TION MEASURES
Factory

Performance
Other environmental activities
In the process of investing in wind power projects of Lien Lap, Phong Huy and Phong Nguyen in the area of TARGETS ACTIONS Schedule Responsibility Document
Huong Hoa district, Quang Tri province, PC1 Group has carried out local environmental activities, specifically:
Strategic goal implementation
- Control processes Continously Departments report, Remedy & improvement
• Supporting bore well in localities: Gifting bore wells to people in Huong Tan, Tan Lap, Tan Lien, report
Huong Phung communes with a quantity of 15 wells and total amount of about 450 million VND.
• Tree planting program to create landscape, ecological environment: PC1 Group implements the - Implement corrective QA Department
Maintain actions in time, not to cause Daily and related Remedy & improvement report
planting of Avocado, Betel tree (20 million / ha) (10 ha) (density of about 300 trees / ha), planting alternately
the rate of mass failures. Departments
with coffee trees in the first stage and planting Acacia (25 million / ha) and tending for the first 5 years ( 20
ha) (density 2500-3000 trees/ha) which grows fast, early create forest canopy in the next period, for a period unsuitable - Control products from
defective QA Department
from 2020 to 2024 at the temporary land use of wind power factories. the stage of importing raw Input check slips and working
products below Daily and related
materials until delivery to minutes
Associate production with environmental protection 0.2% Departments
customers

Dong Anh steel tower factory received two certificates of ISO 9001: 2015 on February 28, 2018 and ISO According
14001: 2015 on April 9, 2018 by AFNOR - a member of one of the largest certification organization recognized to training
- Training Departments Training records
plan of
internationally recognized.
departments

In 2019, the Group issued many decisions related to quality management, environment and specific - Control of product QA Department,
Product inspection report,
implementation measures for Dong Anh Steel Tower Factory. Since then, Dong Anh Steel Tower Manufacturing quality of Factory and Daily Manufacturing and
working minutes
Co., Ltd. has always maintained good quality and environmental management. subcontractors Sales Department
Assure 100% Production
In addition, Thai Nguyen Galvanized Steel Tower Factory, after officially going into operation from October Assure 100% delivery
satisfaction of Daily Department, Sales Production progress report
progress of projects
2021, has also completed the ISO 9001: 2015 Quality Management Certificate and the Environmental customers Department
Management System Certification. ISO 14001:2015, issued by the certification organization Universal GmbH
Sales Department
- DAkkS of the Federal Republic of Germany, which is one of the three most prestigious certification marks Customer service Often and related
Report handling customers'
globally. queries and complaints if any
departments
- Control the waste
Daily Departments Inspection records
classification process
100% of all
Production
wastes are
- Contract with functional Department,
classified, Continously Contracts, lists of waste volume
units to treat waste Administration
collected and
Department
treated as
prescribed - Training for new employees, When there
Administration
people who have not are new Training records
Department
performed well employees

Mechanical
- Maintain safety equipment
Maintenance and electrical
at the machines, inspect
and inspection workshop, Equipment records
equipment with strict labor
plan Technical and
safety requirements
Design Department

Administration,
Create a
Thai Nguyen Galvanized Steel Column Factory was granted ISO 9001:2015 Quality Management Certificate Production, Monitoring Record on
safe working - Equip labor protection
Continously Supplies, protection equipment
and ISO 14001:2015 Environmental Management System Certification. environment, equipment for workers
Purchasing allocation
prevent serious
Departments
occupational
accidents Safety Officer,
- Training on occupational According to
Administration Training records
safety the year plan
Department
Production,
- Periodically train emergency
According to Administration Training plan and training
response (Fire, explosion
the year plan Department, safety results
etc.)
staffs
132 Annual Report 2021 133

II. Policy for employees

Responsibility for Working regime
employees Working time: the Group organizes to work 8 hours / day, 5 days / week, lunch break 1.5 hours.
Saturdays and Sundays are days off. When there is a request for business progress, the employees
of the Group are responsible for working overtime and the Group has regulations to ensure the
rights of employees in accordance with the State regulations and appropriate remuneration for
employees. The indirect division works according to working hours, the direct division is arranged
to work in shifts.
I. Personnel structure Working conditions: The working office is spacious and airy. The direct labor force is fully equipped
NumberSốoflượng
employees
nhân viêningiai
theđoạn
period 2017
2017 - 2021
- 2021 (person)
(người) with working facilities and tools and labor hygiene.
1,440 1,425
1,420
1,400
1,380 1,369
1,360 1,348
1,340 1,334

1,320 1,310
1,300
1,280
1,260
1,240
2017 2018 2019 2020 2021

Average income of employees in the period 2017-2021

Thu nhập bình quân của người lao động trong giai đoạn 2017-2021
25,000,000

19,420,000
20,000,000
Million VND/person/year
Triệu đồng/ người/ năm

15,850,000 15,980,000
15,000,000
12,100,000 12,590,000

10,000,000

5,000,000 Some pictures of PC1 Group’s office

- Recruitment policy
2017
Năm 2017 2018
Năm 2018 2019
Năm 2019 2020
Năm 2020 2021
Năm 2021 The recruitment objective of the Group is to attract competent employees to work for the Group,
Năm
and satisfy the needs of expanding production and business. The managerial positions are given
Labor
Cơ cấustructure
lao động theoby
độage
tuổi high recruitment criteria by the Group to meet the qualifications and experience required by the
7,16%
job.
17,75% In 2021, the Group recruited 54/61 additional qualified and qualified personnel to meet the
development needs of the Departments and Departments, in line with the Group’s long-term
development strategic orientation.

40,35% Employee training and development policy

34,74% the Group focuses on promoting training and retraining activities, especially on professional skills
for professional staffs. Training at the Group is conducted as follows:
For direct laborers: open on-the-spot training classes to improve the qualifications and understanding
Từ 18-25
18-25 tuổi
years old Từ 26-35
26-35 tuổi
years old 36-45 years
Từ 36-45 old
tuổi Over
Trên 45
45 years
tuổi old
of laborers. the Group conducts training and retraining to improve the labor efficiency of existing
Labor
Cơ cấustructure
lao đông theoby labor
trình độ laoskills
động laborers. Laborers are also encouraged and facilitated to attend training courses to improve their
professional skills to meet new requirements in their work.
For employees of professional departments: the Group always facilitates them to participate
courses with professional occupations in accordance with job requirements, and attend short-term
44.35% professional training courses on regimes, State policy.
45.68% In 2021, the Group has organized training programs and seminars to improve management
qualifications and expertise in: Project Management, GWO Occupational Safety, Circular Economy,
Integration Training, Innovation and Digital Transformation, Standardization of accounting
documents, etc. The combination of online and offline organization creates favorable conditions for
all employees of the Group to attend.
9.96%

Trình độ Đại họcand

Undergraduate và trên đại học
graduate Professional
Trình độ cao college and intermediate
đẳng, trung level
cấp chuyên nghiệp Trình độ level
Another khác
degrees
134 PC1 Group Joint Stock Company Annual Report 2021 135

Responsibility for
Policy to ensure health and safety
employees
PC1 Group has carried out periodic health checks for all employees, especially during the Covid
19 epidemic period, the Group organized to give 2 full vaccinations to employees of Group and
subsidiaries. Currently, the 3rd booster injection has been performed for all employees.
Salary and bonus policy

The average employee income of the whole

Group in 2021 reached 19.42 million VND/ III. Ensure gender equality
person/month, increase 22% over the
previous year. Salaries are paid in a timely The Group always focuses on gender equality issues – protection of female employees’ rights,
manner. In addition, in order to encourage with the following specific evidence:
staff and employees in the Group to increase
contribution efficiency, increase productivity
- Above 18% of PC1 Group’s staffs are female.
and work completeness, quarterly, annually,
- The percentage of female employees has gradually increased over the years, many female
the Group organizes voting, evaluating,
praising and honoring individuals and leaders hold key positions in the Group, showing the attention and focus of the Group’s Executive
collectives who have many contributions to Board in promoting gender equality.
the Group as well as initiatives to increase job - The average salary of female employees is equivalent to the average salary of male employees.
PC1 Group honors collectives and individuals who
performance. - Female employees do not face any barriers in their work or career development.
have successfully completed tasks in 2021
Insurance and welfare policy - Every year, the Group has programs for women on occasions such as International Women’s Day
08/03 and Vietnamese Women’s Day 20/10.
The deduction and payment of social insurance, health insurance and unemployment insurance
are deducted by the Group in accordance with the provisions of current law. The Group implements The Group organized the “Miss Ao Dai PC1 Group 2021” program on the occasion of Vietnamese
social security regimes for employees according to the Labor Law and Labor Regulations. The Women’s Day with the enthusiastic support of all employees in the Group. The program aims
Group is always interested in living and improving conditions for employees. The Group always
to honor PC1 Group Women “Being capable of national affairs and duteous at housework” and
focuses on occupational safety for workers directly in production. The insurance regimes for
employees are fully implemented by the Group in accordance with the Labor Law. On holidays, grateful for the enthusiastic contributions to the Group’s development from steel roses during
New Year,... The Group always organizes periodic trips and vacations for employees in the Group. the past time.

In addition, the Group also pays attention, visits and gives gifts on Children’s Day and Mid-Autumn
Festival to the children of its employees and at the same time regularly organizes birthdays for
employees.

PC1 Group congratulates International Women’s PC1 Group celebrates Vietnamese Women’s Day
Day 8/3 October 20

PC1 organizes birthday party for employees Sports activities at the wind power site
IV. Trade Union activities for employees

the Group trade union consists of 12 grassroots trade unions, affiliated divisions with more than
1,500 union members. Over the past years, the Leaders, the Party Committee and the Trade Union
have always paid attention to the material and spiritual life of the officers and employees, especially
the union members in difficult circumstances. These are the employees who encounter misfortunes
in their life. ; or have severe illness, frequent illness, need to be treated in the long time and costly
while family conditions also very difficult; or are main labors in large family with loved ones bearing
serious illness, fatal disease, and expensive monthly expenses ...

Room picture at the wind power site PC1 Group injects 2 vaccines for employees
136 PC1 Group Joint Stock Company Annual Report 2021 137

2
PC1 Group contributes 2 billion VND to the Covid 19 vaccine fund
Responsibility to local
community
On June 19, 2021, the City Party Committee,
People’s Council, and Vietnam Fatherland Front
Committee of Hanoi city successfully organized the
program “Hanoi join hands to repel covid 19” at the
Vietnam-Soviet Friendship Labor Cultural Palace.
About 60 years of construction and development, with the Attending this special program, Mr. Vu Van Tu,
main task of constructing national electricity transmission Deputy General Director of PC1 Group Joint Stock
works, PC1 Group Joint Stock Company (PC1 Group) is Company also donated 2 billion VND to the Covid
increasingly proving its capacity and affirming its position, 19 vaccine fund.
PC1 Group is determined - united with the whole country
not only in the domestic arena, but also reaching out to to fight against covid 19
the region, not only constructing and installing electrical PC1 Group is also one of the pioneering enterprises
projects but also becoming a reputable investor in the field to effectively implement social security programs Thanks to the Group’s efforts and positive
of energy and real estate. and especially join hands and share with the contributions, in 2021 PC1 Group was awarded a
In the field of energy investment, PC1 Group has Government and the community in the prevention, Certificate of Merit by the Hanoi People’s Committee
demonstrated the ability of a professional and reputable control and control of the COVID-19 epidemic. 19. for its achievements in epidemic prevention and
investor with impressive results. The hydropower projects The first outbreak of the epidemic in Vietnam, PC1 control and participation in supporting and helping
built by PC1 Group Joint Stock Company (PC1 Group) are Group has contributed and supported the heavily to prevent and control the Covid epidemic. 19 at
not only doing a good job of exploiting and efficiently using affected provinces and cities as well as supported the “Conference to summarize the front work
water resources, ensuring national energy but also making the epidemic prevention activities of the Health in 2020, deploy the tasks in 2021 of the Vietnam
a significant contribution to the State and local budgets, sector.ngành Y tế. Fatherland Front Committee of Hanoi City”

3 4
thereby changing the face of technical infrastructure,
PC1 Group donates VND 500 million to the PC1 Group held a donation ceremony to
promoting socio-economic development of the province.
Covid-19 Prevention Fund in Tien Giang support the Covid 19 Vaccine Fund
province
BEING ACTIVE AND DETERMINED IN THE PRE- In the face of complicated developments of the Facing the complicated developments of the
VENTION AND CONTROL OF COVID-19 Covid-19 epidemic in the South, where is also the Covid-19 epidemic occurring in Vietnam and around
site of many key projects of PC1 Group, the Group the world, promoting the spirit of solidarity, mutual

1
has donated to the Tien Giang Center for Disease love; on June 11, 2021, PC1 Group held a Donation
PC1 Group presents Covid prevention materials
Control (CDC) an amount of 100 million VND and Ceremony to support Covid 19 vaccine fund with
in Gia Lai
thank you to the Board of Directors, and all CDC the proceeds of 2 billion VND, of which nearly 300
staff who have directly worked in the prevention of million are donated by employees of the whole
During the complicated situation of the Covid-19 epidemic Covid-19 epidemic. In addition to supporting the Group and more than 1.7 billion are deducted from
in many provinces including Gia Lai, PC1 Group Joint Stock CDC, PC1 Group also supported the Department the welfare fund of the Group.
Company together with the investors IA Pet Dak Doa Wind of Industry and Trade; Go Cong Town People’s
Power Plant Number 1 Joint Stock Company and IA Pet Committee; Go Cong Tay; Go Cong Dong, Tien Giang At the ceremony, the Group’s Trade Union also
Dak Doa Wind Power Plant Number 2 Joint Stock Company province, each place 100 million VND to support presented the member units with artifacts including
participate in contributing resources to prevent and repel poor households affected by the Covid-19 pandemic masks, antiseptic water and a part of cash for the
the epidemic. PC1 Group Joint Stock Company has donated with the total amount up to 500 million VND. units to more widely deploy the 5K slogans.
30 sets of DNA/RNA extraction kits using magnetic particle
technology and other supporting equipment with a total
value of VND 269 million.

Specialist doctor 2 Le Dang Ngan, Deputy Director of Some pictures at the ceremony
CDC received support from Mr. Pham Tung Lam, Project
Manager of Tan Phu Dong 2 Wind Power Plant Project
138 PC1 Group Joint Stock Company Annual Report 2021 139

Responsibility to local
2
PC1 Group enjoys the Mid-Autumn Festival with children in the mountainous area of Huong
Hoa, Quang Tri
community
Not only contributing to the state budget and solving labor for the province, PC1 Group also carries out a lot
of activities to support and care for the community in the areas where the factory is located as well as the
PROMOTE LOCAL ECONOMY AND SOCIAL SECURITY ESPECIALLY IN FACTORY AREAS Group’s site.
In 2021, Lien Lap - Phong Huy - Phong Nguyen Wind Power Joint Stock Company (PC1 Group) organized a Mid-

1
Autumn Festival and presented over 800 gifts to pupils and teachers’ children of Huong Phung kindergarten
PC1 Group accompanies the organization of Charity House giving program in Long An and the children of Comrade soldiers of Huong Phung border station. At the same time, at Huong Tan Primary
School, PC1 Group awarded 30 scholarships to encourage children with extremely difficult circumstances
and high academic achievements. The total value of the program is over 100 million VND.
On the occasion of the 46th anniversary of the Liberation of the South and reunification of the country; On
the morning of April 29, 2021, PC1 Group Joint Stock Company (PC1 Group) together with Southern Electricity
Corporation and Long An Power Company, People’s Committee of Tan Thanh District, Long An Province
organized to donate 3 charity houses for families in Tan Thanh district, Long An province.

The delegation moved by motorbike to Mrs. Bui Thi Dan’s household, Hai Hung hamlet, Tan Lap commune,
Tan Thanh district, a poor and difficult household of the district. On an area of 75m2, the house with brick
wall, corrugated iron roof has just been completed with a total value of 90 million VND, of which 50 million
VND is sponsored by PC1 Group Joint Stock Company. In addition to the money supported to build the
house, Mr. Vo Hong Quang, Deputy General Director of PC1 Group Joint Stock Company also gave cash to
household to stabilize their lives.

Some pictures of PC1 Group enjoying the Mid-Autumn Festival with children
On the same day, the delegation also visited and met two families in Tan Thanh and Nhon Hoa Lap communes,
both in Tan Thanh district. PC1 Group is the main sponsor for 03 charity houses with a total amount of VND

3
150 million deducted from the Group’s welfare fund.
PC1 Group sponsors and gives social security houses and Tet gifts to poor households in the
area where the wind power project IA Pet - Dak Doa 1-2 (Gia Lai province) is implemented.

In order to express gratitude to the local support, as well as to carry out social security work in the
implementation area of the IA Pet - Dak Doa 1-2 wind power project, IA Pet Dak Doa Wind Power Plant
Number 1 Joint Stock Company and IA Pet Dak Doa Wind Power Plant Number 2 Joint Stock Company (Project
investors) coordinated with the forces to organize the program of giving social security houses and giving Tet
gifts to the poor in 6 communes including Glar, Trang, Ia Pet, Ia Bang, Adok, and Ia Kenh.
Accordingly, each commune is given a charity house worth VND 50 million and 50 gifts - each worth VND 1
million. The total value of the program is up to 600 million VND.
As a contractor in the project, PC1 Group has contributed 120 gifts to support and accompany the investors
in performing local charity work.
Presenting a house to the household of Mrs. Vo Thi Cac, Dream of a peaceful home of Mrs. Bui Thi Dan’s family
Bui Thang Hamlet, Nhon Hoa Lap Commune, Tan Thanh has come true with the companionship of Southern
District, Long An Province (Mr. Vo Hong Quang - Deputy Electricity Corporation, Power Construction Joint Stock
General Director of PC1 Group, blue shirt - 4th from left) Company No.1 and authorities at all levels.

PC1 Group presents social security houses for the poor in PC1 Group presents Tet gifts to poor households in the
Gia Lai province area where the wind power project IA Pet - Dak Doa 1-2 -
Gia Lai province is implemented
 CONSOLIDATED FINANCIAL
STATEMENTS

6
142
143
144
146
150
Corporate Information
Statement of the Board of General Directors
Independent Auditor’s Report
Consolidated balance
Consolidated statement of income
152 Consolidated statement of cash flows
154 Notes to the consolidated financial statements
6
Corporate Information Statement of the Board of General
Directors
Enterprise Registration The Board of General Directors of PC1 Group Joint Stock Company (formerly known as Power
Certificate No. 0100100745 2 March 2022 Construction Joint Stock Company No. 1) (“the Company”) presents this statement and the
Consolidated Financial Statements for the year ended 31 December 2021

accompanying consolidated financial statements of the Company for the year ended 31 December
The Company’s Enterprise Registration Certificate has been 2021.
amended several times, the most recent of which is dated
2 March 2022. The Enterprise Registration Certificate was The Company’s Board of General Directors is responsible for the preparation and fair presentation
issued by Hanoi Department of Planning and Investment. of the consolidated financial statements in accordance with Vietnamese Accounting Standards,
the Vietnamese Accounting System for Enterprises and the relevant statutory requirements
Board of Management Mr. Trinh Van Tuan Chairman applicable to financial reporting. In the opinion of the Company’s Board of General Directors:
Mr. Vu Anh Duong Member
Mr. Vo Hong Quang Member
Mr. Nguyen Minh De Member (a) The consolidated financial statements set out on pages 5 to 65 give a true and fair view of
Mr. Mai Luong Viet Member the consolidated financial position of the Company and its subsidiaries as at 31 December 2021,
and of their consolidated results of operations and consolidated cash flows for the year then
ended in accordance with Vietnamese Accounting Standards, the Vietnamese Accounting System
Board of General Directors Mr. Vu Anh Duong General Director (from for Enterprises and the relevant statutory requirements applicable to financial reporting; and
1/12/2021)
Deputy General Director (b) at the date of this statement, there is no reason to believe that the Company will not be
(until 30/11/2021) able to pay its debts as and when they fall due.
Mr. Trinh Van Tuan General Director
(until 30/11/2021) The Board of General Directors has, on the date of this statement, authorised the accompanying
Mr. Dang Quoc Tuong Deputy General Director consolidated financial statements for issue.
Mr. Vo Hong Quang Deputy General Director
Mr. Nguyen Nhat Tan Deputy General Director
Mr. Nguyen Minh De Deputy General Director On behalf of the Board of General Directors,
Mr. Vu Van Tu Deputy General Director
(until 28/1/2022)
Mr. Le Thanh Nghi Deputy General Director
(from 1/3/2021 to 30/10/2021)

Supervisory Board Ms. Nguyen Thi Hai Ha Head of Supevisory Board

Mr. Hoang Van Cuong Member
Mr. Hoang Van Sang Member

Registered Office No. 18 Ly Van Phuc Vu Anh Duong

Cat Linh Ward, Dong Da District General Director
Hanoi, Vietnam
Hanoi, 29 March 2022

Auditors KPMG Limited Vietnam

142
6
INDEPENDENT AUDITOR’S REPORT

To the Shareholders and Board of Management PC1 Group Joint Stock Company
Consolidated Financial Statements for the year ended 31 December 2021

(formerly known as Power Construction Joint Stock Company No. 1)

We have audited the accompanying consolidated financial statements of PC1 Group Joint Stock Auditor’s Opinion
Company (formerly known as Power Construction Joint Stock Company No. 1) (“the Company”), which
comprise the consolidated balance sheet as at 31 December 2021, the consolidated statements In our opinion, the consolidated financial statements give a true and fair view, in all material respects,
of income and cash flows for the year then ended and the explanatory notes thereto which were of the consolidated financial position of PC1 Group Joint Stock Company as at 31 December 2021
authorised for issue by the Company’s Board of General Directors on 29 March 2022, as set out on and of its consolidated results of operations and its consolidated cash flows for the year then
pages 5 to 65. ended in accordance with Vietnamese Accounting Standards, the Vietnamese Accounting System
for Enterprises and the relevant statutory requirements applicable to financial reporting.
Management’s Responsibility
Other Matter
The Company’s Board of General Directors is responsible for the preparation and fair presentation
of these consolidated financial statements in accordance with Vietnamese Accounting Standards, The consolidated financial statements of the Company for the year ended 31 December 2020 were
the Vietnamese Accounting System for Enterprises and the relevant statutory requirements audited by another firm of auditors whose report dated 29 March 2021 expressed an unqualified
applicable to financial reporting, and for such internal control as the Board of General Directors opinion on those statements.
determines is necessary to enable the preparation of consolidated financial statements that are
free from material misstatement, whether due to fraud or error.

Auditor’s Responsibility

Our responsibility is to express an opinion on these consolidated financial statements based on

our audit. We conducted our audit in accordance with Vietnamese Standards on Auditing. Those
standards require that we comply with ethical requirements and plan and perform the audit to
obtain reasonable assurance about whether the consolidated financial statements are free of
material misstatement.
_______________________________ ______________________________
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures Wang Toon Kim Đàm Xuân Lâm
in the financial statements. The procedures selected depend on the auditor’s judgement, including Wang Toon Kim Dam Xuan Lam
the assessment of the risks of material misstatement of the financial statements, whether due to Practicing Auditor Registration Practicing Auditor Registration
fraud or error. In making those risk assessments, the auditor considers internal control relevant Certificate No. 0557-2018-007-1 Certificate No. 0861-2018-007-1
to the Company’s preparation and fair presentation of the financial statements in order to design Deputy General Director
audit procedures that are appropriate in the circumstances, but not for the purpose of expressing
an opinion on the effectiveness of the Company’s internal control. An audit also includes evaluating Hanoi, 29 March 2022
the appropriateness of accounting policies used and the reasonableness of accounting estimates
made by the Company’s Board of General Directors, as well as evaluating the overall presentation
of the financial statements.

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

144
6 Consolidated balance
sheet as at 31 December 2021 (Unit: VND)

CODE ASSETS NOTE 31/12/2021 1/1/2021

CODE ASSETS NOTE 31/12/2021 1/1/2021

100 Current assets 6,589,439,946,263 5,715,231,571,853
110 Cash and cash equivalents 6 2,291,977,758,704 1,475,766,385,890 200 Long-term assets 12,097,595,471,264 5,006,436,521,265
Consolidated Financial Statements for the year ended 31 December 2021

111 Cash 794,977,758,704 262,766,385,890 210 Accounts receivable – long-term 8,295,573,500 87,445,733,500
112 Cash equivalents 1,497,000,000,000 1,213,000,000,000 216 Other long-term receivables 11(b) 8,295,573,500 87,445,733,500
120 Short-term financial investments 144,291,658,746 62,891,072,771 220 Fixed assets 10,160,398,968,606 3,803,690,935,125
123 Held-to-maturity investments 7(a) 144,291,658,746 62,891,072,771 221 Tangible fixed assets 14 9,205,307,914,600 3,801,798,536,255
130 Accounts receivable – short-term 3,123,796,576,209 3,389,788,585,449 222 Cost 10,224,992,854,472 4,538,353,290,429
131 Accounts receivable from customers 8 2,288,896,283,193 1,634,984,030,338 223 Accumulated depreciation (1,019,684,939,872) (736,554,754,174)
132 Prepayments to suppliers 9 362,986,950,991 1,182,343,615,572 227 Intangible fixed assets 15 955,091,054,006 1,892,398,870
Receivables on construction contracts ac- 228 Cost 981,273,899,230 2,987,207,819
134 10 15,502,374,676 55,349,000,880
cording to stages of completion
229 Accumulated amortisation (26,182,845,224) (1,094,808,949)
135 Loans receivable – short-term 2,886,249,280 -
230 Investment property 16 221,087,291,258 221,255,062,764
136 Other receivables 11(a) 461,446,671,449 525,660,659,893
231 Cost 276,243,994,329 264,880,188,533
137 Allowance for doubtful debts 12 (7,921,953,380) (8,548,721,234)
232 Accumulated depreciation (55,156,703,071) (43,625,125,769)
140 Inventories 13 903,574,118,319 729,554,191,462
240 Long-term work in progress 379,876,492,995 378,813,660,882
141 Inventories 904,903,028,469 731,040,064,869
242 Construction in progress 17 379,876,492,995 378,813,660,882
149 Allowance for inventories (1,328,910,150) (1,485,873,407)
250 Long-term financial investments 638,667,149,476 81,344,573,396
150 Other current assets 125,799,834,285 57,231,336,281
252 Investments in associates 7(b) 426,443,764,437 78,175,694,461
151 Short-term prepaid expenses 18(a) 9,032,926,084 2,881,129,291
253 Equity investments in other entities 7(c) 214,821,770,000 4,821,770,000
152 Deductible value added tax 113,347,823,373 53,928,240,881
Allowance for diminution in the value of
Taxes and others receivable from 254 (2,598,384,961) (1,652,891,065)
153 23 3,419,084,828 421,966,109 long-term financial investments
State Treasury
260 Other long-term assets 689,269,995,429 433,886,555,598
261 Long-term prepaid expenses 18(b) 400,788,211,984 136,406,946,486
262 Deferred tax assets 19 23,247,747,020 13,597,369,411
269 Goodwill 20 265,234,036,425 283,882,239,701
270 TOTAL ASSETS 18,687,035,417,527 10,721,668,093,118

146
6 Consolidated balance
sheet as at 31 December 2021 (Unit: VND)

CODE RESOURCES NOTE 31/12/2021 1/1/2021

CODE RESOURCES NOTE 31/12/2021 1/1/2021

400 EQUITY 6,280,836,042,239 4,769,526,002,313

300 LIABILITIES 12,406,199,375,288 5,952,142,090,805
410 Owners’ equity 29 6,280,836,042,239 4,769,526,002,313
310 Current liabilities 5,798,709,308,694 3,743,819,472,629
Consolidated Financial Statements for the year ended 31 December 2021

411 Share capital 30 2,351,596,490,000 1,911,881,590,000

311 Accounts payable to suppliers 21 1,756,355,852,050 1,100,061,504,655
411a -Ordinary shares with voting rights 2,351,596,490,000 1,911,881,590,000
312 Advances from customers 22 61,565,293,438 485,944,936,229
412 Share premium 711,136,556,786 711,136,556,786
313 Taxes and others payable to State 23 57,875,464,313 146,366,280,970
Treasury 414 Other capital 22,906,800,000 22,906,800,000

314 Payables to employees 73,644,686,355 83,281,029,274 415 Treasury shares - (4,320,000)

315 Accrued expenses 24 803,547,487,900 165,534,227,533 416 Differences upon asset revaluation 708,285,511 708,285,511

318 Unearned revenue – short-term 837,788,869 852,893,750 418 Investment and development fund 244,289,305,040 166,923,134,253

319 Other payables – short-term 25(a) 94,096,679,867 58,498,493,653 420 Other equity funds 65,313,759,426 65,266,052,360

320 Short-term borrowings 26(a) 2,799,553,623,583 1,586,448,058,089 421 Retained profits 1,305,280,035,901 1,108,616,654,270

321 Provisions – short-term 27 16,403,173,920 870,431,400 421a - Retained profits brought forward 610,259,788,653 516,324,575,071

322 Bonus and welfare fund 28 134,829,258,399 115,961,617,076 421b - Profit for the current year 695,020,247,248 592,292,079,199
330 Long-term liabilities 6,607,490,066,594 2,208,322,618,176 429 Non-controlling interest 1,579,604,809,575 782,091,249,133
336 Long-term unearned revenue 459,722,104 - 440 TOTAL RESOURCES 18,687,035,417,527 10,721,668,093,118
337 Other payables – long-term 25(b) 4,272,392,275 4,638,703,453

338 Long-term borrowings 26(b) 6,237,700,383,328 2,171,328,298,868

341 Deferred tax liabilities 19 325,819,782,115 14,586,747,574

342 Provisions – long-term 27 39,237,786,772 17,768,868,281

Pham Thi Thanh Binh Tran Thi Minh Viet Vu Anh Duong
Preparer Chief Accountant General Director

Hanoi, Vietnam
148 29 March 2022
6
Consolidated statement of income
for the year ended 31 December 2021 (Unit: VND)

CODE NOTE 31/12/2021 1/1/2021 CODE NOTE 31/12/2021 01/01/2021

01 Revenue from sales of goods and 32 9,828,463,180,375 6,678,600,581,343 50 Accounting profit before tax 896,472,801,794 651,811,909,223
provision of services
Consolidated Financial Statements for the year ended 31 December 2021

51 Income tax expense – current 41 66,688,019,076 121,451,737,943

11 Cost of sales 33 8,672,928,765,697 5,516,946,091,407

52 Income tax expense/(benefit) – deferred 41 65,494,816,128 (13,721,486,446)

20 Gross profit 1,155,534,414,678 1,161,654,489,936

60 Net profit after tax 764,289,966,590 544,081,657,726

21 Financial income 34 319,482,922,820 37,255,892,764

61 Ordinary shareholders of the Company 695,020,247,248 512,806,303,331

22 Financial expenses 35 359,192,614,340 243,840,926,915

62 Non-controlling shareholders 69,269,719,342 31,275,354,395

23 In which: Interest expense 315,449,056,943 242,367,390,588

70 Basic earnings per share 42 2,858 2,065

24 Share of profit in associates 85,597,674,855 18,043,746,585

25 Selling expenses 36 55,977,596,827 70,552,235,921

26 General and administration 37 240,797,400,424 267,722,567,030

expenses

30 Net operating profit 904,647,400,762 634,838,399,419

Pham Thi Thanh Binh Tran Thi Minh Viet Vu Anh Duong
Preparer Chief Accountant General Director
31 Other income 38 28,041,497,714 28,329,992,990

Hanoi, Vietnam
32 Other expenses 39 36,216,096,682 11,356,483,186 29 March 2022

40 Results of other activities (8,174,598,968) 16,973,509,804

150
6 Consolidated statement of cash flows
for the year ended 31 December 2021 (Unit: VND)

CODE 31/12/2021 01/01/2021 CODE 31/12/2021 01/01/2021

CASH FLOWS FROM OPERATING ACTIVITIES 25 Payments for investments in other entities (925,126,863,980) (461,568,151,925)

01 Profit before tax 896,472,801,794 651,811,909,223

Consolidated Financial Statements for the year ended 31 December 2021

26 Collections on investments in other entities - 375,104,955,112

Adjustments for:
27 Receipts of interests, dividends and profits 44,927,852,386 41,096,395,643
02 Depreciation and amortisation 364,222,728,433 279,792,813,355
30 Net cash flows from investing activities (4,949,433,406,797) (856,371,026,578)
03 Allowances and provisions 37,163,423,796 9,681,387,550
CASH FLOWS FROM FINANCING ACTIVITIES
04 Exchange gains arising from revaluation of 6,083,202,886 1,137,063,333
monetary items denominated in foreign 31 Proceeds from equity issued 422,296,570,000 437,081,060,000
currencies
32 Payments for capital refunds to non-controlling (488,000,000) -
05 Profits from investing activities (385,940,659,421) (55,386,679,228) shareholders

06 Interest expense 315,449,056,943 242,367,390,588 33 Proceeds from borrowings 15,587,203,590,097 4,925,061,932,116

08 Operating profit before changes in 1,233,450,554,431 1,129,403,884,821 34 Payments to settle loan principals (10,303,208,194,278) (4,214,088,545,612)
working capital
36 Payments of dividends (23,706,105,067) (15,052,826,432)
09 Change in receivables (28,296,022,714) (1,450,565,866,192)
40 Net cash flows from financing activities 5,682,097,860,752 1,133,001,620,072
10 Change in inventories (172,787,706,909) 707,980,466,046
50 Net cash flows during the year 825,905,221,899 909,250,992,727
11 Change in payables and other liabilities (407,840,147,940) 583,846,492,231
60 Cash and cash equivalents at the beginning 1,475,766,385,890 567,652,456,496
12 Change in prepaid expenses (67,693,052,675) (1,614,229,561) of the year

14 Interest paid (306,385,526,351) (245,293,521,634) 61 Effect of exchange rate fluctuations on (9,693,849,085) (1,137,063,333)
cash and cash equivalents
15 Income tax paid (136,603,949,376) (64,182,629,362)
70 Cash and cash equivalents at the end 2,291,977,758,704 1,475,766,385,890
17 Other payments for operating activities (20,603,380,522) (26,954,197,116) of the year
20 Net cash flows from operating activities 93,240,767,944 632,620,399,233

CASH FLOWS FROM INVESTING ACTIVITIES

21 Payments for additions to fixed assets and (3,991,157,635,137) (932,673,645,400)

other long-term assets

22 Proceeds from disposals of fixed assets and 3,323,825,909 2,560,492,763

other long-term assets

23 Payments for granting loans and placing (293,247,266,517) (119,517,828,822)

deposits with terms of more than 3 months
Pham Thi Thanh Binh Tran Thi Minh Viet Vu Anh Duong
24 Receipts from collecting loans and with- 211,846,680,542 238,626,756,051 Preparer Chief Accountant General Director
drawing deposits with terms of more than 3
months Hanoi, Vietnam
152
29 March 2022
6
Notes to the consolidated financial

% OF VOTING RIGHTS AND % OF EQUITY

01/01/2021
statements

90.00%
100%

100%

100%

100%

100%

100%

100%

100%

100%
for the year ended 31 December 2021

OWNED
1. REPORTING ENTITY

31/12/2021

90.00%
100%

100%

100%

100%

100%

100%

100%

100%

100%
Consolidated Financial Statements for the year ended 31 December 2021

a) Ownership structure

PC1 Group Joint Stock Company (formerly known as Power Construction Joint Stock Company
No. 1) (“the Company”), formerly known as Line and Substation Installation Company, was

Ho Chi Minh City

established on 2 March 1963. The Company was officially transformed into a joint stock company
operating under the Business Registration Certificate No. 01001000745 issued for the first time

Ninh Binh
ADDRESS
by the Hanoi Authority for Planning and Investment on 20 July 2005 and amended for the 22nd

Hanoi

Hanoi

Hanoi

Hanoi

Hanoi

Hanoi

Hanoi

Manufacturing galvanized steel columns, steel struc- Hanoi

on 2 March 2022.

b) Principal activities

ture, related accessories, galvanizing services; Trading

steel, zinc, materials for production, manufacturing
steel structure; Trading electrical equipment and
The principal activities of the Company and its subsidiaries are as follows:
- Trading in real estate, land use rights of land owners, land users or land lessees, including:
investment in the creation of houses, construction works for sale, lease, or lease purchase;
purchase houses, construction works for sale, lease, lease purchase; rent houses and
construction works for sublease; invest in and improve land and invest in infrastructure facilities
on leased land to lease land with infrastructure; receive the transfer of land use rights, invest in
infrastructure facilities for transfer or lease; rent land use rights with infrastructure for sublease;
- Consulting, brokerage, real estate auction, land use right auction: real estate consulting
services, real estate brokerage services, real estate valuation services, real estate trading floor
services, real estate advertising services, real estate management services; provide management,

PRINCIPAL ACTIVITIES

Provision of services
Power construction

Power construction

Power construction

Power construction

Power construction

Power construction

Power construction

Power construction
operation and exploitation services for urban areas and multi-story apartment buildings;
- Producing and fabricating steel columns, hot-dip galvanizing and metal structures for civil and
industrial facilities;
- Construction of other civil engineering works: construction and installation of power

materials
transmission lines and transformer stations, power source facilities, industrial and civil works,
infrastructure engineering, traffic, irrigation , post and telecommunication facilities;
- Electricity production, transmission and distribution: electricity production;
- Import and export of goods under the Company’s business scope;

Hoang Mai – No. 1 Power Construction Installation

- Surface preparation;

Ninh Binh – No. 1 Power Construction Installation

Nang Huong – No. 1 Power Construction Co., Ltd.
Mien Bac – No. 1 Power Construction Installation
- Installation of electrical systems;

Dong Anh Steel Tower Manufacturing Co., Ltd.

Ha Dong – No. 1 Power Construction Co., Ltd.
My Dinh – No. 1 Power Construction Co., Ltd.

Tu Liem – No. 1 Power Construction Co., Ltd.

Mien Nam No. I Power Construction Co., Ltd.
- Measuring cadastral maps, clearing land plots, extracting and measuring land plots for land

Dai Mo – No. 1 Power Construction Co., Ltd.

compensation purposes;
- Wholesale of metals and metal ores; and
- Producing metal structures; forging, stamping, pressing and rolling metal; metal powder
smelting.

c) Normal operating cycle

The normal operating cycle of the Company and its subsidiaries is generally within 12 months.
Tier 1 subsidiaries
COMPANY NAME

d) Company structure

154 As at 31 December 2021, the Company had 24 tier 1 subsidiaries and 2 tier 2 subsidiaries

Co., Ltd.

Co., Ltd.

Co., Ltd.
(1/1/2021: 21 tier 1 subsidiaries and 1 tier 2 subsidiary) as follows:
 6
Consolidated Financial Statements for the year ended 31 December 2021

156
COMPANY NAME PRINCIPAL ACTIVITIES ADDRESS % OF VOTING RIGHTS AND % OF EQUITY
OWNED
31/12/2021 01/01/2021

Trung Thu Hydropower JSC Generating and trading power electricity Dien Bien 60.00% 60.00%

My Dinh Real Estate Investment JSC Real estate investment and trading Hanoi 99.39% 99.39%

Vietnam Industrial Erection JSC Installation of machinery and industrial equipment Hanoi 51.00% 51.00%

Hoa Binh Automobile Mechanical JSC Investment and trading in real estate Hanoi 99.83% 99.88%

Bao Lam Energy JSC Post-investment management of hydropower and Cao Bang 99.90% 99.90%
wind power

Northern Energy Investment JSC Producing and trading in electricity Cao Bang 51.00% 51.00%

Tien Bo Investment Trading JSC Investment and trading in real estate Hanoi 99.95% 99.95%

Lien Lap Wind Power Joint Stock Company Producing electricity from wind energy Quang Tri 55.54% 55.54%

Phong Huy Wind Power JSC Producing electricity from wind energy Quang Tri 54.70% 54.70%

Phong Nguyen Wind Power JSC Producing electricity from wind energy Quang Tri 54.73% 54.73%

Investment and Energy Technology Service JSC Supply of materials, equipment and electrical system Hanoi 51.00% 51.00%
configuration

COMPANY NAME PRINCIPAL ACTIVITIES ADDRESS % OF VOTING RIGHTS AND % OF

EQUITY OWNED

31/12/2021 01/01/2021

Tan Phat Mineral JSC Mining Cao Bang 57.27% 33.92%

Song Gam Hydropower JSC (*) Power production Cao Bang 99.00% -

Holding Commercial Equipment Company (**) Workshop leasing Hanoi 99.75% -

Tier 2 subsidiaries

Thai Nguyen Galvanized Steel Tower JSC Producing all kinds of galvanized steel columns Thai Nguyen 90.00% 90.00%

PC1 – ETICH Electrical Experiment JSC (***) Inspection, testing and calibration of electrical equip- Hanoi 51.00% -
ment and instruments with voltage up to 110 kV

(*) During the year, the Company contributed capital for establishment of this company.

(**) On 11 August 2021, Holding Commercial Equipment Company became a subsidiary of the Company after the Company had completed the
purchase of 290,323 shares (equivalent to 98,74% of ownership) of this company. Subsequently, the Company additionally purchased 1,205,970 shares
in accordance with the newly registered charter capital, which increases the Company’s percentage of voting rights and equity owned at this company to
99.75%.

(*)Trong năm,
(***) On Công góp vốn thành
1tyJune 2021,lập công
Myty này.
Dinh - No.1 Power Construction Company Limited, a subsidiary of the Company, acquired 51% of shares of PC1 – ETICH
(**) Ngày 11 tháng 8 năm 2021, Công ty Cổ phần Thiết bị Thương mại trở thành công ty con của Công ty sau khi Công ty hoàn thành việc mua lại 290.323 cổ phần (tương đương 98,74% quyền sở hữu) tại công ty này. Sau đó, Công ty góp thêm 1.205.970 cổ phần theo số vốn điều
Electrical Experiment JSC for the amount of VND2,550 million and accordingly, PC1 – ETICH Electrical Experiment JSC became a tier 2 subsidiary of the
lệ mới đăng ký của Công ty và nâng tỷ lệ sở hữu và quyền biểu quyết của Công ty tại Công ty này lên 99,75%.
Company.
(***) Ngày 1 tháng 6 năm 2021, Công ty TNHH MTV Xây lắp Điện 1 – Mỹ Đình, một công ty con của Công ty, mua lại 51% cổ phần của Công ty Cổ phần Thí nghiệm Điện PC1 - ETICH với số tiền là 2.550 triệu VND và qua đó Công ty Cổ phần Thí nghiệm Điện PC1 - ETICH trở thành
công ty con cấp 2 của Công ty.
As at 31 December 2021, the Company had 2 associates (1/1/2021: 2 associates) as listed in Note 7(b).
Tại ngày 31 tháng 12 năm 2021, Công ty có 2 công ty liên kết (1/1/2021: 2 công ty liên kết) được liệt kê trong Thuyết minh 7(b).

Tại ngày 31 tháng 12 năm 2021, Công ty và các công ty con có 1.497 nhân viên (1/1/2021: 1.395 nhân viên).
As at 31 December 2021, the Company and its subsidiaries had 1,497 employees (1/1/2021: 1,395 employees).
6 2. BASIS OF PREPARATION Unrealised gains and losses arising from transactions with associates are eliminated against the
investment to the extent of the Company’s interest in the associates.
a) Statement of compliance
(v) Business combination
The consolidated financial statements have been prepared in accordance with Vietnamese
Business combinations are accounted for using the acquisition method as at the acquisition date,
Accounting Standards, the Vietnamese Accounting System for Enterprises and the relevant
which is the date on which control is transferred to the Company. Control exists when the Company
statutory requirements applicable to financial reporting.
has the power to govern the financial and operating policies of an entity so as to obtain benefits from
its activities. In assessing control, potential voting rights that presently are exercisable are taken into
b) Basis of measurement account.
The consolidated financial statements, except for the consolidated statement of cash flows, are
prepared on the accrual basis using the historical cost concept. The consolidated statement of Under the acquisition method, the assets and liabilities of the acquired entity are consolidated using
Consolidated Financial Statements for the year ended 31 December 2021

cash flows is prepared using the indirect method. their fair values upon consolidation. Cost of a business combination (cost of the acquisition) is the
aggregate amount of the fair values, at the date of exchange, of assets given, liabilities incurred or
c) Annual accounting period assumed, and equity instruments issued by the acquirer in the acquisition in exchange for control
The annual accounting period of the Company and its subsidiaries is from 1 January to 31 of the acquiree and any costs directly attributable to the business combination. Identifiable assets
December. acquired, identifiable liabilities and contingent liabilities assumed in a business combination are
recognised at fair value at the acquisition date.
d) Accounting and presentation currency
The Company’s and its subsidiaries’ accounting currency is Vietnam Dong (“VND”), which is also Any goodwill that arises representing the excess of the cost of the acquisition over the Company’s
the currency used for presentation of consolidated financial statements. interest in the net fair value of the identifiable assets, liabilities and contingent liabilities of the
acquiree is recognised in consolidated balance sheet, then amortised through to the consolidated
statement of income. When the excess is negative (gain from bargain purchase), it is recognised
3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES in the consolidated statement of income for the current year after a reassessment has been
The following significant accounting policies have been adopted by the Company and its performed to ensure that the measurement of identifiable assets acquired, liabilities and contingent
subsidiaries in the preparation of these consolidated financial statements. liabilities assumed and the cost of the business combination appropriately reflects consideration of
all available information as of the acquisition date.
a) Basis of consolidation
If the initial accounting for a business combination is incomplete by the end of the reporting
(i) Subsidiaries
period in which the combination occurs as the result of fair values of acquiree’s identifiable assets,
Subsidiaries are entities controlled by the Company. The financial statements of the subsidiaries liabilities or contingent liabilities or the cost of the combination being only provisionally determined,
are included in the consolidated financial statements from the date that control commences the Company shall account for such business combination at provisional amounts. During twelve
until the date that control ceases. months from the acquisition date (i.e. the measurement period), the Company shall retrospectively
adjust the provisional amounts recognised at the acquisition date.
(ii) Non-controlling interests
Non-controlling interests (“NCI”) are measured at their proportionate share of the acquiree’s Transaction costs, other than those associated with the issue of debt or equity securities, that the
identifiable net assets at date of acquisition. Company incurred in connection with business combinations included any costs directly attributable
to the combination, such as professional fees paid to accountants, legal advisers, valuers and other
Changes in the Group’s interest in a subsidiary that do not result in a loss of control are consultants to affect the combination. Transaction costs are capitalised into the cost of business
accounted for as transactions with owners. The difference between the change in the Group’s combination. General administrative costs and other costs that cannot be directly attributed to a
share of net assets of the subsidiary and any consideration paid or received is recorded directly particular combination being accounted for are not included in the cost of the combination; they are
in retained profits under equity. recognised as an expense when incurred.

(iii) Associates b)Foreign currency transactions

Associates are those entities in which the Company has significant influence, but not control, Transactions in currencies other than VND during the year have been translated into VND at rates
over their financial and operating policies. Associates are accounted for using the equity approximating actual rates of exchange ruling at the transaction dates.
method. The consolidated financial statements include the Company’s share of the income and
expenses of the associates, after adjustments to align the accounting policies with those of the Monetary assets and liabilities denominated in currencies other than VND are translated into VND
Company, from the date that significant influence commences until the date that significant at the account transfer buying rates (for assets) and account transfer selling rates (for liabilities),
influence ceases. When the Company’s share of losses exceeds its interest in an associate, the respectively, at the end of the annual accounting period quoted by the commercial bank where the
carrying amount of that interest (including any long-term investments) is reduced to nil and Company and its subsidiaries most frequently conduct transactions.
the recognition of further losses is discontinued except to the extent that the Company has an
obligation or has made payments on behalf of the associate. All foreign exchange differences are recorded in the consolidated statement of income.

(iv) Transactions eliminated on consolidation c) Cash and cash equivalents

158
Intra-group transactions, balances and any unrealised income and expenses arising from Cash comprises cash balances and call deposits. Cash equivalents are short-term highly liquid
intra-group transactions, are eliminated in preparing the consolidated financial statements. investments that are readily convertible to known amounts of cash, are subject to an insignificant
risk of changes in value, and are held for the purpose of meeting short-term cash commitments
6 rather than for investment or other purposes. (i) Land use rights
Land use rights are stated at cost less accumulated amortisation. The initial cost of a land use rights
d) Investments comprises its purchase price and any directly attributable costs incurred in conjunction with securing
(i) Held-to-maturity investments the land use rights. No amortisation is computed for indefinite land use rights.
Held-to-maturity investments are those that the Company’s or its subsidiaries’ Board of General
Directors has the intention and ability to hold until maturity. Held-to-maturity investments (ii) Software
include term deposits at banks and loans receivable held to maturity. These investments are Cost of acquiring new software, which is not an integral part of the related hardware, is capitalised
stated at costs less allowance for doubtful debts. and treated as an intangible asset. Software cost is amortised on a straight-line basis over 3 to 5
years.
(ii) Equity investments in other entities
Investments in equity instruments of other entities are initially recognised at cost which include (iii) Mining rights
Consolidated Financial Statements for the year ended 31 December 2021

purchase price plus any directly attributable transaction costs. Subsequent to initial recognition, Mining rights represent the value of mineral reserves in copper and nickel mines of Tan Phat Mineral
these investments are stated at cost less allowance for diminution in value. An allowance is Joint Stock Company, a subsidiary of the Company. Mining rights are amortized to the consolidated
made for diminution in investment values if the investee has suffered a loss which may cause the statement of income on a straight-line basis over the expected exploitation period.
Company to lose its invested capital, unless there is evidence that the value of the investment
has not been diminished. The allowance is reversed if the investee subsequently made a profit i ) Investment property held to earn rental
that offsets the previous loss for which the allowance had been made. An allowance is reversed (i) Cost
only to the extent that the investment’s carrying amount does not exceed the carrying amount Investment property held to earn rental is stated at cost less accumulated depreciation. The initial
that would have been determined if no allowance had been recognised. cost of an investment property held to earn rental comprises its purchase price, cost of land use rights
and any directly attributable expenditures of bringing the property to the condition necessary for it
e) Accounts receivable to be capable of operating in the manner intended by the Board of General Directors. Expenditure
Trade and other receivables are stated at cost less allowance for doubtful debts. incurred after the investment property held to earn rental has been put into operation, such as
repairs and maintenance, is charged to the consolidated statement of income in the year in which the
f) Inventories expenditure is incurred. In situations where it can be clearly demonstrated that the expenditure has
Inventories are stated at the lower of cost and net realisable value. Costs of raw materials, resulted in future economic benefits in excess of the originally assessed standard of performance of
tools and supplies are determined on a weighted average basis and includes all costs incurred the existing investment property held to earn rental, the expenditure is capitalised as an additional
in bringing the inventories to their present location and condition. Costs of work in progress, cost of the investment property.
finished goods and merchandise inventories are determined on an identification basis. Cost
in the case of finished goods and work in progress includes raw materials, direct labour and (ii) Depreciation
attributable manufacturing overheads. Net realisable value is the estimated selling price of Depreciation is computed on a straight-line basis over the estimated useful lives of investment
inventory items, less the estimated costs of completion and estimated costs to sell. property. The estimated useful lives are as follows:

The Company and its subsidiaries apply the perpetual method of accounting for inventories.  Buildings and structures 5 – 25 years

g) Tangible fixed assets j ) Construction in progress

(i) Cost Construction in progress represents the costs of tangible and intangible fixed assets which have not
Tangible fixed assets are stated at cost less accumulated depreciation. The initial cost of a tangible been fully completed or installed. No depreciation is provided for construction in progress during
fixed asset comprises its purchase price, including import duties, non-refundable purchase taxes the period of construction and installation.
and any directly attributable costs of bringing the asset to its working condition for its intended
use. Expenditure incurred after tangible fixed assets have been put into operation, such as k ) Contract work in progress
repair, maintenance and overhaul cost, is charged to the consolidated statement of income Contract work in progress is stated at cost plus attributable profits earned to date. Cost represents
in the year in which the cost is incurred. In situations where it can be clearly demonstrated directly attributable and chargeable costs in accordance with the underlying contract. Surplus
that the expenditure has resulted in an increase in the future economic benefits expected to or deficit of contract work in progress over progress billings and advances from customers are
be obtained from the use of tangible fixed assets beyond their originally assessed standard of presented as receivables or payables on construction contracts according to stages of completion.
performance, the expenditure is capitalised as an additional cost of tangible fixed assets.
l) Long-term prepaid expenses
(ii) Depreciation (i) Tools and instruments
Depreciation is computed on a straight-line basis over the estimated useful lives of tangible Tools and instruments include assets held for use by the Company and its subsidiaries in the normal
fixed assets. The estimated useful lives are as follows: course of business whose costs of individual items are less than VND30 million and therefore not
qualified for recognition as fixed assets under prevailing regulations. Cost of tools and instruments
 buildings and structures 3 – 30 years are amortised on a straight-line basis over a period ranging from 2 to 3 years.
 plant and equipment 3 – 20 years
 motor vehicles 5 – 10 years (ii) Site clearance expenses of hydropower plants
 office equipment 3 – 10 years Site clearance expenses of hydropower plants represent the compensation for site clearance of
160
 other tangible fixed assets 3 – 5 years the hydropower projects Bao Lam 1, 3, 3A, Bao Lac B, Song Nhiem 4, Trung Thu, Mong An. Site
clearance expenses are recognised at cost and deducted from the Company’s annual land rental
h) Intangible fixed assets payable according to the notices of the Cao Bang Provincial Department of Tax, Ha Giang Provincial
6 Department of Tax and Dien Bien Provincial Department of Tax. shares as requested by the shareholders. In all other cases, when shares recognized as equity are
repurchased, their par value amount is recognized as a reduction to share capital. The difference
(iii) Site clearance expenses of wind power plants between the par value and the amount of the consideration paid, which includes directly attributable
Site clearance expenses of wind power plants represent the compensation for site clearance costs, net of tax effects, is included in share premium.
of the wind power projects which are recognised in the statement of income on a straight-
line basis over the operating periods of Lien Lap, Phong Nguyen and Phong Huy wind power This change in accounting policy has been applied prospectively from 1 January 2021 due to change
projects. in applicable laws and regulations on buying back shares.

(iv) Land use rights over the land area at 120 Dinh Cong p) Taxation
Land use rights over the land area at 120 Dinh Cong comprise the price to purchase land use Income tax on the consolidated profit for the year comprises current and deferred tax. Income tax
right over the land area at 120 Dinh Cong. This cost is recognised in the consolidated statement is recognised in the consolidated statement of income except to the extent that it relates to items
Consolidated Financial Statements for the year ended 31 December 2021

of income on a straight-line basis over the term of the land use right of 50 years. recognised directly to equity, in which case it is recognised in equity.

(v) Infrastructure rental costs Current tax is the expected tax payable on the taxable income for the year, using tax rates enacted
Infrastructure rental costs for project connection are recognised at cost and amortized on a at the end of the annual accounting period, and any adjustment to tax payable in respect of previous
straight-line basis over a period of 48 years. years.

(vi) Other long-term prepaid expenses Deferred tax is provided using the balance sheet method, providing for temporary differences
Other long-term prepaid expenses comprise expenses for assets renovation and repair, between the carrying amounts of assets and liabilities for financial reporting purposes and the
consulting fee and other expenses, which are recognised at cost and amortised on a straight- amounts used for taxation purposes. The amount of deferred tax provided is based on the expected
line basis over a period ranging from 2 to 5 years. manner of realisation or settlement of the carrying amounts of assets and liabilities using the tax
rates enacted or substantively enacted at the end of the annual accounting period.
m) Trade and other payables
Trade and other payables are stated at their cost. A deferred tax asset is recognised only to the extent that it is probable that future taxable profits will
be available against which the temporary difference can be utilised. Deferred tax assets are reduced
n) Provision to the extent that it is no longer probable that the related tax benefit will be realised.
A provision is recognised if, as a result of a past event, the Company and its subsidiaries have a
present legal or constructive obligation that can be estimated reliably, and it is probable that an q) Revenue and other income
outflow of economic benefits will be required to settle the obligation. Provisions are determined (i) Goods sold
by discounting the expected future cash flows at a pre-tax rate that reflects current market Revenue from the sale of goods is recognised in the consolidated statement of income when the
assessments of the time value of money and the risks specific to the liability. significant risks and rewards of ownership have been transferred to the buyer. No revenue is
recognised if there are significant uncertainties regarding recovery of the consideration due or the
Warranties possible return of goods. Revenue on sales of goods is recognised at the net amount after deducting
The provision for warranties relates mainly to goods sold and construction works completed sales discounts.
during the annual accounting period. The provision is based on estimates derived from historical
warranty data associated with similar products and services within the most recent three years. (ii) Services rendered
Revenue from services rendered is recognised in the consolidated statement of income in proportion
o) Share capital to the stage of completion of the transaction. The stage of completion is assessed by reference to
(i) Ordinary shares surveys of work performed. No revenue is recognised if there are significant uncertainties regarding
Ordinary shares are recognised at par value. The excess of proceeds from share issuance recovery of the consideration due.
over the par value of shares issued is recorded as share premium. Incremental costs directly
attributable to the issue of shares, net of tax effects, are recognised as a deduction from share (iii) Construction contracts
premium. Revenue from construction contracts is recognised in the consolidated statement of income in
proportion to the stage of completion of the contract when the outcome of a construction contract
(ii) Repurchase and reissue of ordinary shares (treasury shares) can be estimated reliably. The stage of completion is assessed by reference to surveys of work
Before 1 January 2021 performed. No revenue is recognized if there are significant uncertainties regarding recovery of the
When shares recognized as equity are repurchased, the amount of the consideration paid, which consideration due.
includes directly attributable costs, net of tax effects, is recognized as a reduction from equity.
Shares repurchased are classified as treasury shares under equity. When treasury shares are (iv) Rental income
sold for reissue subsequently, cost of the reissued shares is determined on a weighted average Rental income from property under operating leases is recognised in the consolidated statement of
basis. Any difference between the amount received and the cost of the shares reissued is income on a straight-line basis over the term of the lease. Lease incentives granted are recognised
presented within share premium. as an integral part of the total rental income.

From 1 January 2021 (v) Electricity sold

162
Treasury shares are recognised only in respect of repurchased shares which are aggregated Revenue from sale of electricity is recognised in the consolidated statement of income in accordance
fractions of share arising when the company issues shares to pay dividends or issues shares with electricity meter minutes and selling prices as stipulated in the power purchase Agreement
from equity reserves in accordance with an approved issuance plan, or repurchased odd-lots of signed with Vietnam Electricity Corporation. No revenue is recognised if there are significant
6 uncertainties regarding recovery of the consideration due. Company and its subsidiaries comprise the following main business segments:

(vi) Interest income • Construction;

Interest income is recognised on a time proportion basis with reference to the principal • Industrial production;
outstanding and the applicable interest rate. • Real estate;
• Energy;
(vii) Dividend income • Sales of goods; and
Dividend income is recognised when the right to receive dividend is established. • Others.
The Company does not present geographical segment because the Board of General Directors
r) Leases determines that the Company and its subsidiaries currently operate in a sole geographical segment
Operating lease payments mainly which is Vietnam.
Consolidated Financial Statements for the year ended 31 December 2021

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

s) Borrowing costs
Borrowing costs are recognised as an expense in the year in which they are incurred, except
where the borrowing costs relate to borrowings in respect of the construction of qualifying
assets, in which case the borrowing costs incurred during the period of construction are
capitalized as part of the cost of the assets concerned.

(t) Earnings per share

The Company presents basic earnings per share for its ordinary shares. Basic earnings per
share is calculated by dividing the profit or loss attributable to the ordinary shareholders (after
deducting any amounts appropriated to bonus and welfare fund for the annual accounting
period) of the Company by the weighted average number of ordinary shares outstanding during
the year.

During the year ended 31 December 2021, the Company had no potential ordinary shares and
therefore does not present diluted earnings per share.

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

v) Comparative information
Comparative information in these consolidated financial statements is presented as
corresponding figures. Under this method, comparative information for the prior year is
included as an integral part of the current year’s financial statements and is intended to be read
only in relation to the amounts and other disclosures relating to the current year. Accordingly,
the comparative information included in these consolidated financial statements is not intended
to present the Company’s consolidated financial position, results of operation or cash flows for
the prior year.

4. SEGMENT REPORTING BY BUSINESS SECTORS

A segment is a distinguishable component of the Company and its subsidiaries that is engaged
either in providing related products or services (business segment), or in providing products
164 or services within a particular economic environment (geographical segment), which is subject
to risks and rewards that are different from those of other segments. The Company and its
subsidiaries’ primary format for segment reporting is based on business segments. The
 6
Consolidated Financial Statements for the year ended 31 December 2021

166
INDUSTRIAL
CONSTRUCTION REAL ESTATE ENERGY SALES OF GOODS OTHERS CONSOLIDATION
PRODUCTION

For the year ended 31 December 2021

Segment consolidat-
ed revenue 6,713,974,535,864 649,719,442,242 105,998,735,394 928,088,201,316 1,376,706,321,870 53,975,943,689 9,828,463,180,375

Segment cost of
(6,253,028,942,081) (555,946,582,984) (67,440,540,062) (398,533,773,753) (1,350,852,113,935) (47,126,812,882) (8,672,928,765,697)
sales

Segment results
460,945,593,783 93,772,859,258 38,558,195,332 529,554,427,563 25,854,207,935 6,849,130,807 1,155,534,414,678

Selling expenses
(55,977,596,827)

General and adminis-

(240,797,400,424)
tration expenses

Financial income
319,482,922,820

Financial expenses
(359,192,614,340)

Share of profit in
associates and joint 85,597,674,855
ventures

Results from other

(8,174,598,968)
activities

Income tax expense

(132,182,835,204)

Net profit after tax

764,289,966,590

INDUSTRIAL
CONSTRUCTION REAL ESTATE ENERGY SALES OF GOODS OTHERS CONSOLIDATION
PRODUCTION

For the year ended 31 December 2020

Segment consolidat-
ed revenue 3,060,741,678,342 825,757,109,539 856,093,531,787 748,112,842,891 1,121,778,208,590 66,117,210,194 6,678,600,581,343

Segment cost of
(2,753,270,380,528) (742,930,173,126) (577,424,760,957) (296,465,086,448) (1,096,148,207,293) (50,707,483,055) (5,516,946,091,407)
sales

Segment results
307,471,297,814 82,826,936,413 278,668,770,830 451,647,756,443 25,630,001,297 15,409,727,139 1,161,654,489,936

Selling expenses
(70,552,235,921)

General and adminis-

(267,722,567,030)
tration expenses

Financial income
37,255,892,764

Financial expenses
(243,840,926,915)

Share of profit in
18,043,746,585
associates

Results from other

16,973,509,804
activities

Income tax expense

(107,730,251,497)

Net profit after tax

544,081,657,726
 6
Consolidated Financial Statements for the year ended 31 December 2021

168
INDUSTRIAL
CONSTRUCTION REAL ESTATE ENERGY SALES OF GOODS OTHERS CONSOLIDATION
PRODUCTION

As at 31 December 2021

Segment assets
2,360,048,868,270 684,594,105,888 467,836,869,912 10,475,574,057,746 445,059,547,639 1,511,432,400,237 15,944,545,849,692

Unallocated assets
2,742,489,567,835

Total assets
18,687,035,417,527

Segment liabilities
1,788,238,949,161 582,456,354,996 62,957,951,578 7,286,214,138,065 272,085,175,511 161,811,228,106 10,153,763,797,417

Unallocated liabilities
2,252,435,577,871

Total liabilities
12,406,199,375,288

For the year ended 31 December 2021

Capital expenditure
15,279,399,616 10,250,570,188 11,363,805,796 5,434,531,262,369 - 9,785,297,222 5,481,210,335,191

Depreciation of tangi-
4,657,993,397 3,903,117,443 635,178,715 279,438,298,293 - 18,412,450 288,653,000,298
ble fixed assets

Amortization of in-
249,331,504 243,314,830 - - - 24,570,162,056 25,062,808,390
tangible fixed assets

Amortization of in-
- - 11,531,577,302 - - - 11,531,577,302
vestment property

INDUSTRIAL
CONSTRUCTION REAL ESTATE ENERGY SALES OF GOODS OTHERS CONSOLIDATION
PRODUCTION

As at 1 January 2021

Segment assets
2,747,635,183,789 382,181,121,963 532,302,566,298 4,852,295,487,841 262,440,973,882 44,689,061,418 8,821,544,395,191

Unallocated assets
1,900,123,697,927

Total assets
10,721,668,093,118

Segment liabilities
1,352,106,317,365 318,892,507,133 128,851,311,553 2,568,030,849,953 180,555,233,006 24,862,208,233 4,573,298,427,243

Unallocated liabilities
1,378,843,663,562

Total liabilities
5,952,142,090,805

For the year ended 31 December 2020

Capital expenditure
8,947,567,027 4,118,338,453 63,259,899,984 829,088,243,908 - 260,000,000 905,674,049,372

Depreciation of tangi-
6,363,340,842 7,810,067,495 - 175,423,699,103 - - 189,597,107,440
ble fixed assets

Amortization of in-
148,832,874 243,792,684 - - - - 392,625,558
tangible fixed assets

Amortization of in-
- - 10,054,834,827 - - - 10,054,834,827
vestment property
6 5. BUSINESS COMBINATION

On 16 June 2021, the Company acquired 2,912,000 shares of Tan Phat Mineral Joint Stock Company On 11 August 2021, the Company acquired 98.74% shares of Holding Commercial Equipment
(“Tan Phat”) for the amount of VND232,960 million; accordingly, the share capital of Tan Phat held Company for the amount of VND191,059 million. Holding Commercial Equipment Company’s
by the Company after this transaction increased from 33.92% to 57.27%. Tan Phat Mineral Joint principal activity is workshop leasing. From 11 August 2021 to 31 December 2021 the acquired
Stock Company’s principal activity is mining. From 16 June 2021 to 31 December 2021, the acquired business has contributed revenue of VND3,726 million and profit of VND331 million to the
business has not yet contributed revenue and profit to the Company’s business results because Company’s results.
this subsidiary is still in the construction phase.
The acquisition had the following effect on the Company’s assets and liabilities on acquisition date:
The acquisition had the following effect on the Company’s assets and liabilities on acquisition date:
PRE-ACQUISITION
Consolidated Financial Statements for the year ended 31 December 2021

RECOGNISED VALUE ON
FAIR VALUE ADJUSTMENTS
CARRYING AMOUNTS ACQUISITION
PRE-ACQUISITION RECOGNISED VALUE ON
FAIR VALUE ADJUSTMENTS
CARRYING AMOUNTS ACQUISITION Cash and cash equivalents 5,261,637 - 5,261,637

Cash and cash equivalents 7,458,106,015 - 7,458,106,015 Accounts receivable –

short-term 25,062,895,433 - 25,062,895,433

Accounts receivable –
short-term 59,911,052,945 - 59,911,052,945
Inventories 263,824,048 - 263,824,048

Other current assets 9,841,485,019 - 9,841,485,019 Other current assets 226,571,557 - 226,571,557
Tangible fixed assets 619,613,950 - 619,613,950
Tangible fixed assets 5,946,109,505 - 5,946,109,505

Intangible fixed assets - 977,536,296,866 977,536,296,866

Long-term prepaid ex-
- 202,549,187,157 202,549,187,157
penses
Long-term work in prog-
241,529,406,987 - 241,529,406,987
ress Other non-current assets 53,359,089 - 53,359,089

Long-term prepaid ex-

- 353,720,477 353,720,477 Current liabilities
penses (2,538,690,035) - (2,538,690,035)

Current liabilities
(203,145,664,916) - (203,145,664,916) Long-term liabilities
- (40,509,837,400) (40,509,837,400)

Long-term liabilities
- (195,578,003,373) (195,578,003,373) Net identifiable assets and
29,019,331,234 162,039,349,757 191,058,680,991
liabilities

Net identifiable assets and

116,214,000,000 782,312,013,970 898,526,013,970 Goodwill on acquisition
liabilities 2,405,571,778

Goodwill on acquisition
17,858,669,371 Considerations transferred
191,055,469,517

Considerations transferred
232,960,000,000 Cash acquired
5,261,637

Cash acquired
7,458,106,015 Net cash outflow
191,050,207,880

Net cash outflow

225,501,893,985

170
 6
Consolidated Financial Statements for the year ended 31 December 2021

172
(*)

(*)
TOTAL

Company
Company
Cash in banks
Cash on hand

Term deposits

Stock Company
Cash equivalents

7. INVESTMENTS

COST

Cao Bang Cast Iron and Steel Joint

CT2 Real Estate Investment Joint Stock

Tan Phat Mineral Joint Stock Company

Cao Bang Cast Iron and Steel Joint Stock
a) Held-to-maturity investments
6. CASH AND CASH EQUIVALENTS

144,291,658,746
31/12/2021

% OF
b) Investments in associates (Unit: VND)

OWNED
% OF EQUITY

49.00%
25.09%

33.92%
25.09%
FAIR VALUE

% OF

% OF
144,291,658,746

VOTING RIGHTS

49.00%
25.09%

EQUITY OWNED VOTING RIGHTS

33.92%
25.09%
31/12/2021

2,291,977,758,704
1,497,000,000,000
777,623,393,618
17,354,365,086

COST

31/12/2021

01/01/2021
62,891,072,771

Company’s ownership and voting rights in this company from 33.92% to 57.27%.
01/01/2021

CARRYING AMOUNT

CARRYING AMOUNT
UNDER EQUITY METHOD

UNDER EQUITY METHOD

426,443,764,437
300,000,000,000
126,443,764,437

78,175,694,461
37,329,604,878
40,846,089,583
FAIR VALUE

FAIR
VALUE

FAIR
VALUE
62,891,072,771

Company after the Company completed the acquisition of 2,912,000 shares and raised the
On 16 June 2021, Tan Phat Mineral Joint Stock Company became a subsidiary of the
Unit: VND
Unit: VND

(**)
(**)
01/01/2021

1,475,766,385,890
1,213,000,000,000
237,164,256,049
25,602,129,841

(**)
(**)
c) Equity investments in other entities
Unit: VND

31/12/2021

ALLOWANCE FOR

NUMBER OF % OF EQUITY % OF VOTING DIMINUTION IN

SHARES OWNED RIGHTS COST VALUE FAIR VALUE

Joint stock Commercial Bank for Investment and De- 46,431 0.00115% 0.00115% 821,770,000 - 1,722,590,100
velopment of Viet Nam

Vinaincon Centrifugal Concrete Joint Stock Company 400,000 10.00% 10.00% 4,000,000,000 (2,598,384,961) (**)

Western Pacific Joint Stock Company 7,000,000 7.00% 7.00% 210,000,000,000 - (**)

214,821,770,000 (2,598,384,961)

01/01/2021

ALLOWANCE FOR

NUMBER OF % OF EQUITY % OF VOTING DIMINUTION IN

SHARES OWNED RIGHTS COST VALUE FAIR VALUE

Joint stock Commercial Bank for Investment and De- 46,431 0.00136% 0.00136% 821,770,000 - 2,224,044,900
velopment of Viet Nam

Vinaincon Centrifugal Concrete Joint Stock Company 400,000 10.00% 10.00% 4,000,000,000 (1,652,891,065) (**)

4,821,770,000 (1,652,891,065)

(**) The Company and its subsidiaries have not determined fair values of these investments for disclosure in the consolidated financial statements
because information about their market prices is not available and there is currently no guidance on determination of fair value using valuation techniques
under the Vietnamese Accounting Standards or the Vietnamese Accounting System for Enterprises. There fair values of these investments may differ from
their carrying amounts.
6 8. ACCOUNTS RECEIVABLE FROM CUSTOMERS
Unit: VND 31/12/2021 01/01/2021

31/12/2021 01/01/2021 Tra Vinh Wind Power Farm - Vestas Wind Technology Viet- 15,502,374,676 35,158,965,918
nam LLC

Vietnam Electricity Corporation 238,160,507,412 - Ia Pet - Dak Doa 1 Wind Power Plant Project, Ia Pet - - 20,190,034,962
Dak Doa 2 Wind Power Plant Project – IA Pet Dak Doa 1
Tien Giang Wind Power Joint Stock Company 223,104,376,619 - Wind Power Joint Stock Company and IA Pet Dak Doa 2
Wind Power Joint Stock Company
Consolidated Financial Statements for the year ended 31 December 2021

The Central Vietnam Power Project Management Board 203,741,139,244 78,536,533,528

TOTAL 15,502,374,676 55,349,000,880
Thai Hung Trading Joint Stock Company 132,568,743,164 106,856,248,004

Hanwha - BCG Bang Duong Energy Joint Stock Company 74,005,473,583 107,857,590,257 11. OTHER RECEIVABLES
a) Other short-term receivables
Northern Power Corporation 71,446,815,248 134,982,321,012 Unit: VND

Clean Energy Vision Development Joint Stock Company 29,070,558,738 101,453,631,016

31/12/2021 01/01/2021

AMEC Mechanical Construction Joint Stock Company - 108,132,656,568

Accrued interest income from deposits and loans 1,929,801,481 582,739,726
Others 1,316,798,669,185 997,165,049,953
Advances of compensation for site clearance (*) 258,000,222,223 201,290,874,356
TOTAL 2,288,896,283,193 1,634,984,030,338
Advances 74,429,859,924 128,449,505,051

Advances made to works steering teams 46,862,250,044 100,152,235,991

9. PREPAYMENTS TO SUPPLIERS
Receivables from Phong Lieu Wind Power Joint Stock Company 16,043,406,311 -
Unit: VND (**)

31/12/2021 01/01/2021 Deposits, mortgages 430,957,368 37,638,311,759

Gia Loc Phat Joint Stock Company 95,988,840,482 82,998,837,129 Loan receivables – short-term (***) 57,631,000,000 -

Vestas Wind Technology Vietnam LLC 69,918,260,478 139,640,072,625 Others 6,119,174,098 57,546,993,010

Vestas Asia Pacific A/S - 442,064,452,457 TOTAL 461,446,671,449 525,660,659,893

Hoang Ngoc Phat Transport Trading Company Limited - 64,500,490,714 (*) These are advances to pay compensation at construction works, which will be returned by the
investor and advances to pay compensation for real estate and energy projects.
Others 197,079,850,031 453,139,762,647 (**) This represents the capital contribution under the business cooperation contract dated 23 December
2020 between the Company’s two subsidiaries, namely Phong Huy Wind Power Joint Stock Company, Phong
Nguyen Wind Power Joint Stock Company, and Phong Lieu Wind Power Joint Stock Company, in which Phong
TOTAL 362,986,950,991 1,182,343,615,572 Lieu Wind Power Joint Stock Company is the focal point to implement the project for investment in construction
and operation of infrastructure connecting Phong Huy, Phong Nguyen and Phong Lieu Wind Power Projects
to the national power system. The parties will contribute capital based on the committed rate of contribution,
which is proportional to the capacity of each wind power plant. All interests of the parties to the yields,
profits and value of the common property shall be divided according to the actual capital contribution ratio.
10. RECEIVABLES ON CONSTRUCTION CONTRACTS ACCORDING TO STAGES OF The capital contribution is divided into 4 instalments, the balance as of 31 December 2021 reflects the total
COMPLETION contributed capital of 4 instalments of Phong Huy Wind Power Joint Stock Company and Phong Nguyen Wind
Unit: VND Power Joint Stock Company, less the assets formed from the business cooperation contract handed over
174 between the parties at Phong Huy Wind Power Joint Stock Company and Phong Nguyen Wind Power Joint
Stock Company.
(***) Loan receivables – short-term represent receivables from an individual which earns interest rate at
3.5% per annum, are unsecured and receivable on 31 December 2022.
6 b) Other long-term receivables 01/01/2021
Unit: VND OVERDUE RECOVERABLE
COST ALLOWANCE AMOUNT
PERIOD
31/12/2021 01/01/2021
Overdue debts
Deposits, mortgages 8,295,573,500 8,295,573,500
Receivable from Tran Nhung 2,151,632,200 (2,151,632,200) - -
Receivables from Phong Lieu Wind - 79,150,160,000 (Construction Team 3)
Power Joint Stock Company
Receivable from Phan Ngoc 418,555,690 (418,555,690) - -
Tien (Construction Team 1)
Consolidated Financial Statements for the year ended 31 December 2021

TOTAL 8,295,573,500 87,445,733,500

Receivable from Nachi Inter- 101,292,413 - 101,292,413 101.292.413

national JSC

12. BAD AND DOUBTFUL DEBTS Receivable from Investment - - - -

and Industrial Development
Unit: VND Joint Stock Corporation
31/12/2021
Receivables from customers – 6,026,750,539 (5,978,533,344) 48,217,195 48.217.195
OVERDUE PERIOD COST ALLOWANCE RECOVERABLE short-term
AMOUNT
TOTAL 8,698,230,842 (8,548,721,234) 149,509,608
Overdue debts
Of which: Allowance for (8,548,721,234)
Receivable from Tran Over 3 years 2,151,632,200 (2,151,632,200) - doubtful debts – short-term
Nhung (Construction Team
3)
13. INVENTORIES
Receivable from Phan Ngoc Over 3 years 418,555,690 (418,555,690) -
Unit: VND
Tien (Construction Team 1)
31/12/2021 01/01/2021
Receivable from Nachi From 1 to 2 years 101.292.413 (50.646.207) 50.646.206
International JSC Cost Allowance Cost Allowance

Receivable from Investment Under 1 year 101,292,413 (50,646,207) 50,646,206

and Industrial Development Goods in transit 23,992,304,622 - 9,744,223,016 -
Joint Stock Corporation
Raw materials 347,131,204,835 (1,328,910,150) 171,432,370,331 (1,485,873,407)
Receivables from custom- From 2 to over 3 8,365,642,492 (4,870,703,283) 3,494,939,209
ers – short-term years Tools and supplies 1,608,619,714 - 1,942,980,053 -

TOTAL 11,652,002,795 (7,921,953,380) 3,730,049,415 Work in progress (*) 495,633,807,594 - 468,867,078,164 -

Of which: Allowance for (7,921,953,380) Finished goods - - 2,560,576,471 -

doubtful debts – short-term
Merchandise inventories 18,224,310,299 - 3,053,270,713 -

Merchandise real estate (**) 18,312,781,405 - 73,439,566,121 -

TOTAL 904,903,028,469 (1,328,910,150) 731,040,064,869 (1,485,873,407)

At 31 December 2021 inventories with a carrying value of VND60,288 million (1/1/2021: Nil) were
176 pledged with banks as security for loans granted to the Company and its subsidiaries (Note 26(a)).
6 (*) Work in progress comprised:
Unit: VND Unit: VND

31/12/2021 01/01/2021 31/12/2021 01/01/2021

Real estate business project: Industrial production activities:

PCC1 Vinh Hung office, commercial and apartment complex 13,296,604,679 11,418,803,712 Van Phong - Vinh Tan Project 68,220,473,791 -

G5-CT2 and G8-CT3 Residential Area for sale Project (formerly Van Phong connection project 29,688,621,885 -
7,656,880,962 7,193,310,713
known as Bac Co Nhue – Chem Residential Area Project)
Consolidated Financial Statements for the year ended 31 December 2021

110kV Da Nhi - Ha Song Pha - Ninh Son - Thap Cham - 11,786,282,511

PCC1 Thanh Xuan Project - 8,598,455,090
Others 13,090,095,290 27,236,290,660
Construction activities and electrical equipment:
Other work in progress 8,525,854,779 7,316,314,869
Supply of reactor 110kV-40MVar: 220kV Tuong Duong
46,185,724,831 -
Transformer station and connection Project TOTAL 495,633,807,594 468,867,078,164

Package 4 – Construction of transmission line from starting

point to G7 – Song Hau – Duc Hoa 500 kV Transmission Line 20,132,443,575 20,852,581,298
Project
(**) Merchandise real estate comprised:
Contract Package 03: Construction of transmission line 110kv- Unit: VND
15,806,384,441 924,607,063
Ba Che – Nui Mot 110kv transmission line improvement Project
31/12/2021 01/01/2021
Contract Package: EPC for Transformer station and 220kV
13,769,238,589 -
Transmission Line – Hung Hai Gia Lai Wind Power Plant Project My Dinh Plaza 2 Trade Center and Housing 15,303,502,311 18,907,137,529

Construction of transmission line and 110kV Nam Tra My PCC1 Thanh Xuan Project - 45,049,157,190
11,413,756,524 23,213,803,558
Transformer station
Others 3,009,279,094 9,483,271,402
Contract Package CPC - CTS-PC01: Supply of materials,
equipment, construction and calibration testing for 110kV
- 39,181,270,500 TOTAL 18,312,781,405 73,439,566,121
underground cable line for Project of 110kV transformer station
of Tien Sa Port and Dau Noi

Package DEP - HNPC-PX-W01 construction works under

Sub-project for construction of new 110kV transformer station
- 17,348,739,676
of Phu Xuyen, 110kV transmission line supplied power to the
transformer station

Construction of 110kV Quoc Vinh – Soc Trang transmission line - 14,863,737,338

EPC for electrical system of BIM Wind Power Project - 11,188,414,493

220kV Muong La transformer station - 8,494,160,256

Others 247,847,728,248 259,250,306,427

178
 6
Consolidated Financial Statements for the year ended 31 December 2021

180
14. TANGIBLE FIXED ASSETS
Unit: VND
BUILDINGS AND STRUC- PLANT AND EQUIPMENT MOTOR VEHICLES OFFICE EQUIPMENT OTHERS TOTAL
TURES

Cost

Opening balance 2,210,049,813,606 2,105,034,406,816 210,450,217,343 11,165,327,522 1,653,525,142 4,538,353,290,429

Additions 85,000,000 20,006,497,590 12,451,026,504 1,862,642,932 151,600,000 34,556,767,026

Transfer from 1,051,737,901,312 4,590,998,122,129 9,138,438,091 154,930,213 - 5,652,029,391,745

construction in progress 14,784,636,855 1,526,026,880 - - - 16,310,663,735

Increase due to acquisition of 1,137,504,195

- 674,090,909 76,800,000 - 1,888,395,104
a subsidiary

Increase due to conversion of (5,705,914,976)

(5,754,800,644) (4,506,535,208) (106,150,000) (57,566,398) (16,130,967,226)
associates into subsidiaries

Disposals (943,094,045) (1,071,592,296) - - - (2,014,686,341)

Written off (3,199,898,892) 14,949,317,295 (11,639,369,379) (167,615,422) 57,566,398 -

Closing balance 3,266,759,558,192 6,726,874,367,633 216,567,868,260 12,985,935,245 1,805,125,142 10,224,992,854,472

Accumulated depreciation

Opening balance 254,394,798,010 383,062,783,522 89,369,673,577 8,743,857,385 983,641,680 736,554,754,174

Charge for the year 88,062,875,386 178,863,567,674 20,523,335,793 951,337,648 251,883,797 288,653,000,298

Increase due to acquisition of

8,887,734,368 1,019,325,420 - - - 9,907,059,788
a subsidiary

Increase due to conversion of

- 690,392,003 501,589,151 76,800,000 - 1,268,781,154
associates into subsidiaries

Disposals (5,754,800,644) (4,978,211,881) (4,506,535,208) (90,466,049) (54,742,242) (15,384,756,024)

Written off (646,992,630) (664,500,639) - - - (1,311,493,269)

Reclassification (3,201,918,534) 11,266,745,786 (8,088,853,719) (13,267,894) 37,294,361 -

Others - - - - (2,406,249) (2,406,249)

Closing balance 341,741,695,956 569,260,101,885 97,799,209,594 9,668,261,090 1,215,671,347 1,019,684,939,872

Net book value

Opening balance 1,955,655,015,596 1,721,971,623,294 121,080,543,766 2,421,470,137 669,883,462 3,801,798,536,255

Closing balance 2,925,017,862,236 6,157,614,265,748 118,768,658,666 3,317,674,155 589,453,795 9,205,307,914,600

Included in tangible fixed assets were assets costing VND161,955 million which were fully depreciated as of 31 December 2021 (1/1/2021: VND175,387
million), but which are still in active use.
As at 31 December 2021, tangible fixed assets with a net book value of VND8,940,852 million (1/1/2021: VND3,670,163 million) were pledged with banks
as security for loans granted to the Company and its subsidiaries (Note 26(b)).
 6
Consolidated Financial Statements for the year ended 31 December 2021

182
15. INTANGIBLE FIXED ASSET
Unit: VND

MINING RIGHTS LAND USE RIGHTS SOFTWARE OTHERS TOTAL

Cost

Opening balance - 1,108,070,000 1,773,806,000 105,331,819 2,987,207,819

Additions - - 758,500,000 - 758,500,000

Increase due to conversion of - - -

977,536,296,866
associates into subsidiaries 977,536,296,866

Increase due to acquisition of a -

- - 41,894,545 41,894,545
subsidiary

Written off - - (50,000,000) - (50,000,000)

Closing balance 977,536,296,866 1,108,070,000 2,482,306,000 147,226,364 981,273,899,230

Accumulated amortisation

Opening balance - - 1,032,667,983 62,140,966 1,094,808,949

Charge for the year 24,627,852,440 - 409,272,303 25,683,647 25,062,808,390

Increase due to acquisition of a

- - - 41,894,545 41,894,545
subsidiary

Written off - - (16,666,660) - (16,666,660)

Closing balance 24,627,852,440 - 1,425,273,626 129,719,158 26,182,845,224

Net book value

Opening balance - 1,108,070,000 741,138,017 43,190,853 1,892,398,870

Closing balance 952,908,444,426 1,108,070,000 1,057,032,374 17,507,206 955,091,054,006

Included in intangible fixed assets were assets costing VND1,041 million which were fully amortised as of 31 December 2021 (1/1/2021: VND279 million),
but which are still in use.
 264,880,188,533

11,363,805,796

276,243,994,329

43,625,125,769

11,531,577,302

55,156,703,071

221,255,062,764

221,087,291,258
TOTAL
6 17. CONSTRUCTION IN PROGRESS
Unit: VND
Unit: VND

31/12/2021 01/01/2021

Opening balance 378,813,660,882 1,178,758,313,911

63,259,899,984

11,363,805,796

74,623,705,780

1,265,198,000

2,757,672,116

4,022,870,116

61,994,701,984

70,600,835,664
OFFICE AREA AT
PCC1 THANH XUAN
APARTMENT

Additions 5,434,531,262,369 842,829,059,944

Consolidated Financial Statements for the year ended 31 December 2021

Increase due to acquisition of a subsidiary 241,529,406,987 -

Transfer to tangible fixed assets (5,652,029,391,745) (1,627,641,032,830)

Transfer to long-term prepaid expenses (12,777,371,500) (14,318,294,366)

75,796,415,530

75,796,415,530

7,563,878,679

3,031,856,624

10,595,735,303

68,232,536,851

65,200,680,227
MY DINH PLAZA 2

-
OFFICE AREA AT

APARTMENT

Transfer to short-term prepaid expenses (408,056,128) -

Reclassified to inventories - (1,375,760,643)

Other movements (9,783,017,870) 561,374,866

Closing balance 379,876,492,995 378,813,660,882

24,269,520,970

24,269,520,970

4,375,162,943

970,780,835

5,345,943,778

19,894,358,027

18,923,577,192
-
OFFICE AREA AT
PCC1 HA DONG
APARTMENT

Major constructions in progress were as follows:

31/12/2021 01/01/2021

Capital construction

Niken – Copper Open Pit Mining Project 316,686,044,938 -

90,477,826,874

90,477,826,874

26,319,172,775

4,372,488,545

30,691,661,320

64,158,654,099

59,786,165,554
-
OFFICE AREA AT
MY DINH PLAZA
APARTMENT

Bao Lac A Hydropower Project 12,705,738,317 -

Lien Lap Wind Power Plant Project - 153,254,278,611

16. INVESTMENT PROPERTY HELD TO EARN RENTAL

Phong Huy Wind Power Plant Project - 84,869,299,901

Phong Nguyen Wind Power Plant Project - 126,941,143,043

11,076,525,175

11,076,525,175

4,101,713,372

398,779,182

4,500,492,554

6,974,811,803

6,576,032,621
-
OFFICE AREA AT
NANG HUONG
APARTMENT

Others 43,296,484,554 12,001,607,457

Machinery purchases

Purchase of fixed assets, construction tools 1,200,000,000 -

Major overhaul of fixed assets

Accumulated depreciation

Others 5,988,225,186 1,747,331,870

Charge for the year
Opening balance

Opening balance

Opening balance
Closing balance

Closing balance

Closing balance

379,876,492,995 378,813,660,882
Net book value

184
Additions

At 31 December 2021 constructions in progress with a carrying value of VND316,686 million (1/1/2021: Nil)
were pledged with banks as security for loans granted to the Company and its subsidiaries (Note 26(b)).
Cost

During the year, borrowing costs capitalised into construction in progress amounted to VND27,760 million.
6 18. PREPAID EXPENSES
Unit: VND
a) Short-term prepaid expenses

31/12/2021 01/01/2021

Tools and supplies issued for use 2,114,714,239 878,583,701

Other short-term prepaid expenses 6,918,211,845 2,002,545,590

Consolidated Financial Statements for the year ended 31 December 2021

9,032,926,084 2,881,129,291

b) Long-term prepaid expenses

TOOLS AND ASSET REPAIR PREPAID LAND SITE CLEARANCE SITE CLEARANCE LAND USE RIGHT INFRASTRUCTURE OTHERS TOTAL
INSTRUMENTS EXPENSES RENTAL EXPENSES OF EXPENSES OF OVER THE LAND RENTAL COST
HYDROPOWER WIND POWER AREA AT 120 DINH
PLANTS (*) PLANTS CONG

Opening balance 4,382,167,502 4,252,155,940 2,806,530,165 124,044,228,976 - - - 921,863,903 136,406,946,486

Additions 5,975,428,287 8,215,417,396 - - - - 37,493,636,364 9,802,674,819 61,487,156,866

Increase due to conver- - - 353,720,477 - - - - - 353,720,477

sion of associates into
subsidiaries

Increase due to acquisi- - - - - - 202,549,187,157 - - 202,549,187,157

tion of
a subsidiary

Transfer from construc- 22,834,500 - 241,969,000 - 12,512,568,000 - - - 12,777,371,500

tion in progress

Written off and disposals (29,187,097) - - - - - - (1,677,493,379) (1,706,680,476)

Amortisation for the year (4,204,380,795) (2,446,719,154) (62,898,018) (1,724,777,355) - (1,519,118,905) (261,085,824) (1,309,090,064) (11,528,070,115)

Others 491,207,738 (42,627,649) - - - - - - 448,580,089

Closing balance 6,638,070,135 9,978,226,533 3,339,321,624 122,319,451,621 12,512,568,000 201,030,068,252 37,232,550,540 7,737,955,279 400,788,211,984

(*) Compensation for site clearance of the hydropower projects Bao Lam 1, 3, 3A, Bao Lac B,
Song Nhiem 4, Trung Thu, Mong An shall be deducted from the annual land rental payable according
to the notices of the Cao Bang Provincial Department of Tax, Ha Giang Provincial Department of
Tax and Dien Bien Provincial Department of Tax. Details are as follows:

186
 NOTICES DEDUCTIBLE 20. GOODWILL
6 PROJECTS
AMOUNT (VND) Unit: VND

Bao Lam 1 Hydropower Project Notice No. 892/TB-CT dated 24/11/2016 11,413,476,782 Opening balance 400,217,808,018

Bao Lam 3 Hydropower Project Notice No. 849/TB-CT dated 21/8/2017 10,061,418,000 Additions 20,264,241,149

Bao Lam 3A Hydropower Project Notice No. 798/TB-CT dated 7/8/2017 668,410,942 Closing balance 420,482,049,167

Bao Lac B Hydropower Project Notice No. 1216/TB-CT dated 10/12/2019 7,806,445,192 Accumulated amortization
Consolidated Financial Statements for the year ended 31 December 2021

Notice No. 1150/TB-CT dated 11/11/2019 787,719,391 Opening balance 116,335,568,317

Song Nhiem 4 Hydropower Project Decision No. 373/QD-CT dated 3/6/2020 549,384,183 Charge for the year 38.912.444.425

Decision No. 569/QD-CT dated 3/8/2020 5,174,745,600 Closing balance 155,248,012,742

Trung Thu Hydropower Project Notice No. 1091/TB-STC dated 30/6/2016 70,790,693,435 Net book value

Mong An Hydropower Project Notice No. 1217/TB-CT dated 10/12/2019 21,334,749,436 Opening balance 283,882,239,701

Total land rental offset in prior years is VND4,542,813,985.

Closing balance 265,234,036,425

19. DEFERRED TAX ASSETS AND LIABILITIES

Recognised deferred tax assets and liabilities
21. ACCOUNTS PAYABLE TO SUPPLIERS
Unit: VND
31/12/2021 01/01/2021
COST AND AMOUNT WITHIN PAYMENT CAPACITY
Deferred tax assets: SỐ CUỐI NĂM SỐ ĐẦU NĂM

Fixed assets 23,120,788,729 -

Vestas Asia Pacific A/S 239,713,062,923 -
Unearned profit in construction in progress 126,958,291 13,597,369,411
Vinacomin – Minerals Holding Corporation 125,192,185,800 57,259,004,836
Total deferred tax assets 23,247,747,020 13,597,369,411
Duc Giang Trading Co., Ltd 112,758,129,401 42,766,126,563
Deferred tax liabilities:
Song Da 5 Joint Stock Company 71,878,835,080 -
Fixed assets (233,211,768,496) 2,053,016,766
Viet Phat Import-Export Trading Investment 66,264,776,820 94,553,670,578
Joint Stock Company
Gain from revaluation of fair value upon (52,402,000,000) -
increase of capital for becoming a subsidiary
from an associate Vietnam International Commercial Joint Stock Bank 49,976,168,550 -
– Transaction Office (*)
Long-term prepaid expenses (40,206,013,619) -
LS VINA Cable & System JSC - 52,238,601,517
Allowance for long-term investments in - (16,639,764,340)
associates Dongfang Electric International Corporation - 43,383,114,988

Total deferred tax liabilities (325,819,782,115) (14,586,747,574) Others 1,090,572,693,476 809,860,986,173

188 (302,572,035,095) (989,378,163) 1,756,355,852,050 1,100,061,504,655

(*) This is the amount that the bank paid for the purchase of goods through opening of LC UPAS.
 6
Consolidated Financial Statements for the year ended 31 December 2021

190
Board

TOTAL
tion (AIT)

Company
Company

Other customers
Project Management Board

IA Bang Wind Power Joint Stock Company

Power Development Project Management

IA Pet – Dak Doa 2 Wind Power Joint Stock

IA Pet – Dak Doa 1 Wind Power Joint Stock
Advanced Information Technologies Corpora-

Nam Tu Liem District Construction Investment

22. SHORT-TERM ADVANCES FROM CUSTOMERS

-
-
-
31/12/2021

61,565,293,438
19,235,870,204
7,048,288,000
7,109,775,474
28,171,359,760
Unit: VND

-
-
-
01/01/2021

485,944,936,229
154,516,614,210
108,446,126,693
111,491,097,663
111,491,097,663

23. TAXES AND OTHERS RECEIVABLE FROM AND PAYABLE TO STATE TREASURY
Unit: VND

1/1/2021 31/12/2021

PAID/ INCREASE DUE TO

RECEIVABLE PAYABLE INCURRED NET-OFF ACQUISITION OF RECEIVABLE PAYABLE
A SUBSIDIARY

Value added tax (*) - 48,999,915,393 407,309,538,023 (427,320,143,875) (200,531,098) 92,100,000 28,880,878,443

Import-export tax - - 761,924,668 (2,114,924,668) - 1,353,000,000 -

Corporate income tax 122,678,842 91,633,391,147 66,688,019,076 (136,603,949,376) (1,732,906) 1,043,518,596 22,636,567,695

Personal income tax - 573,696,965 12,542,372,909 (12,489,390,975) - 104,432,520 731,111,419

Natural resource taxes - 1,660,464,742 47,787,196,393 (47,334,738,920) - - 2,112,922,215

Land and housing taxes, and land -

299,103,572 5,541,467,988 (6,068,398,128) - 826,033,712 -
rental

Other taxes 183,695 34,469,305 6,045,304,750 (5,943,555,465) - - 136,034,895

Fees, charges and other taxes 3,464,343,418 18,862,908,747 (18,949,302,519) - - 3,377,949,646

-

TOTAL 421,966,109 146,366,280,970 565,538,732,554 (656,824,403,926) (202,264,004) 3,419,084,828 57,875,464,313

(*) This represents the total value added tax amount payable after being offset with input value added tax each month.
 (b) Other payables – long-term (Unit: VND)
6 24. ACCRUED EXPENSES – SHORT-TERM 31/12/2021 01/01/2021
Unit: VND
Long-term deposits and collaterals received 4,272,392,275 4,638,703,453

31/12/2021 01/01/2021

Interest expense 25,548,614,330 16,009,300,312 25. BORROWINGS

(a)Short-term borrowings
Accrued expenses for construction and industrial production 19,142,083,155 17,908,952,119
works
Consolidated Financial Statements for the year ended 31 December 2021

01/01/2021 MOVEMENT DURING THE YEAR 31/12/2021

Accrued expenses for completed hydropower and wind power 747,327,902,136 87,848,116,426
projects CARRYING AMOUNT CARRYING AMOUNT
AND AMOUNT WITHIN ADDITION DECREASE AND AMOUNT WITHIN
Accrued real estate trading expenses 3,521,399,981 42,549,395,799 REPAYMENT CAPACITY REPAYMENT CAPACITY

Others 8,007,488,298 1,218,462,877

Short-term 1,436,680,058,089 11,018,930,420,762 (9,996,734,342,231) 2,458,876,136,620
borrowings
TOTAL 803,547,487,900 165,534,227,533
Current portion 149,768,000,000 340,677,486,963 (149,768,000,000) 340,677,486,963
of long-term
25. OTHER PAYABLES borrowings
(a) Other payables – short-term
1,586,448,058,089 11,359,607,907,725 (10,146,502,342,231) 2,799,553,623,583

Unit: VND
Terms and conditions of outstanding short-term borrowings were as follows: (Unit: VND)
31/12/2021 01/01/2021 31/12/2021 01/01/2021

Interest expense - 475,783,426 Vietnam Joint Stock Commercial Bank for Industry and Trade 722,015,730,585 537,601,979,089

Trade union fees 2,679,707,879 2,237,423,806 Vietnam Joint Stock Commercial Bank for Industry and Trade (*) 10,891,350,830 -

Social insurance, health insurance, unemployment insurance 3,034,396,658 1,557,745,155 Joint Stock Commercial Bank for Investment and Development of Vietnam 659,516,860,825 369,040,452,802

Short-term deposits and collaterals received 9,920,970,426 1,903,907,427 BNP Paribas Bank 497,843,841,474 257,303,208,754

Payables to construction teams and project steering boards 9,772,179,862 6,248,761,839 HSBC Bank (Vietnam) Ltd. 308,994,286,515 -

Payables for maintenance of real estate project 29,075,522,927 27,459,574,184 Joint Stock Commercial Bank for Foreign Trade of Vietnam 81,499,557,236 162,006,531,008

Payables of site clearance compensation received from project 57,672,950 10,757,338,000 Renova Renewables Vietnam 1 Pte. Ltd. 77,346,563,931 -
owner
Military Commercial Joint Stock Bank 39,351,492,520 4,985,127,589
Short-term borrowings from individuals (*) 22,850,000,000 -
Shinhan Bank Vietnam Limited 38,832,286,311 63,726,327,474

Others 16,706,229,165 7,857,959,816

Orient Commercial Joint Stock Bank - 282,757,373
TOTAL 94,096,679,867 58,498,493,653
Individuals 22,584,166,393 41,733,674,000

192 (*) These short-term borrowings from individuals are interest free, unsecured, with a term of 9
months. 2,458,876,136,620 1,436,680,058,089

The short-term borrowings have the terms from 6 to 12 months and are unsecured. (*) Short-term
borrowings from Vietnam Joint Stock Commercial Bank for Industry and Trade are secured over
inventories with a carrying amount of VND60,288 million (1/1/2021: Nil) (Note 13).
 6
Consolidated Financial Statements for the year ended 31 December 2021

194
(b) Long-term borrowings

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

CURRENCY ANNUAL INTEREST RATE YEAR OF MATURITY COLLATERALS 31/12/2021 01/01/2021

Joint Stock Commercial Interest rate on savings deposit in VND All assets of Bao
Bank for Foreign Trade of VND with term of 12 months plus interest 2030 Lam 3 Hydropower 394,709,898,607 442,709,898,607
Vietnam margin Project

Joint Stock Commercial Preferential interest from supportive funds

All assets of Trung Thu
Bank for Investment and VND of Renewable Energy Development Program 2029 359,104,000,000 403,992,000,000
Hydropower Project
Development of Vietnam (REDP) of World Bank plus interest margin

Joint Stock Commercial Interest rate on savings deposit in VND with All assets of Song
Bank for Investment and VND term of 12 months plus interest margin 2033 Nhiem 4 Hydropower 158,384,664,979 158,384,664,979
Development of Vietnam Project

Joint Stock Commercial 8.8%, revised every 6 months

800 ton crane ZC-
Bank for Investment and VND 2028 70,412,926,452 -
C9800W
Development of Vietnam

Vietnam Joint Stock Preferential interest from supportive funds

All assets of Bao Lam 1
Commercial Bank for VND of Renewable Energy Development Program 2030 451,968,395,700 463,568,395,700
Hydropower Project
Industry and Trade (REDP) of World Bank

Vietnam Joint Stock Interest rate on savings deposit in VND with

All assets of Mong An
Commercial Bank for VND term of 12 months plus interest margin 2032 489,060,000,000 540,540,000,000
Hydropower Project
Industry and Trade

Vietnam Joint Stock Interest rate on savings deposit in VND with

All assets of Bao Lam 3A
Commercial Bank for VND term of 12 months plus interest margin 2030 159,212,523,972 55,339,170,283
Hydropower Project
Industry and Trade

Vietnam Joint Stock Interest rate on savings deposit in VND with

All assets of Bao Lac 3B
Commercial Bank for VND term of 12 months plus interest margin 2032 335,145,172,810 256,562,169,299
Hydropower Project
Industry and Trade

Vietnam Joint Stock VND Interest rate on savings deposit in VND with All assets of Nickel-Cop-
Commercial Bank for term of 12 months plus interest margin 2032 per Ore Extraction Plant 132,911,049,670 -
Industry and Trade Project

Vietnam Joint Stock All assets of Thai Nguy- 43,582,519,431 -

Interest rate on savings deposit in VND with
Commercial Bank for VND 2028 en Galvanizing Plant
term of 12 months plus interest margin
Industry and Trade Project

Shinhan Bank Vietnam Interest rate on savings deposit in VND with 2026 Ford Everest car 809,836,070 -
VND
Limited term of 12 months plus interest margin

Asian Development Bank 2036 All assets of Lien Lap, 805,824,828,525 -

- A Loan Floating interest rate: Libor 3 month plus Phong Huy, Phong
USD
interest margin Nguyen Wind Power
Projects

Asian Development Bank 2036 All assets of Lien Lap, 2,114,733,634,725 -

- B Loan Floating interest rate: Libor 3 month plus Phong Huy, Phong
USD
interest margin Nguyen Wind Power
Projects

Export Finance Australia 2036 All assets of Lien Lap, 486,929,292,300 -

Floating interest rate: Libor 3 month plus Phong Huy, Phong
USD
interest margin Nguyen Wind Power
Projects

Japan International 2036 All assets of Lien Lap, 575,589,127,050 -

Cooperation Agency Floating interest rate: Libor 3 month plus Phong Huy, Phong
USD
interest margin Nguyen Wind Power
Projects

6,578,377,870,291 2,321,096,298,868

Amount repayable within (340,677,486,963) (149,768,000,000) (340.677.486.963) (149.768.000.000)

12 months

Amount repayable after 6,237,700,383,328 2,171,328,298,868 6.237.700.383.328 2.171.328.298.868

12 months

Long-term borrowings from banks were secured over tangible fixed assets with a net book value of VND8,940,852 million (1/1/2021: VND3,670,163
million) (Note 14), construction in progress with a carrying value of VND316,686 million (1/1/2021: Nil) (Note 17).
6

Unit: VND

3,694,780,662,417

503,696,060,000

544,081,657,726

(36,047,429,204)
27. PROVISIONS

79,485,775,868
(296,000,000)
Movement of provisions during the year were as follows:

TOTAL

-
Unit: VND

NON-CONTROLLING
PROVISION FOR PROVISION FOR TOTAL

256,845,751,933

503,696,060,000

31,275,354,395
(296,000,000)
PRODUCT WARRANTY CONSTRUCTION WARRANTY

INTEREST

-
Opening balance 11,377,620,968 7,261,678,713 18,639,299,681
Consolidated Financial Statements for the year ended 31 December 2021

RETAINED PROFITS

(318,638,930,000)
Provision made 39,614,026,800 5,686,782,000 45,300,808,800

933,063,484,397

512,806,303,331

(35,779,161,016)

(36,047,429,204)

(17,889,580,508)

79,485,775,868
during the year

-
Provision used during (5,352,172,939) - (5,352,172,939)
the year

22,906,800,000 (4,320,000) 708,285,511 129,678,219,448 47,203,224,342

17,889,580,508
OTHER EQUITY
Provision reversed (55,448,200) (2,891,526,650) (2,946,974,850)
during the year

FUNDS

-
Closing balance 45,584,026,629 10,056,934,063 55,640,960,692

DIFFERENCES INVESTMENT AND

35,779,161,016
DEVELOPMENT
In which:

FUND

-
Current 16,403,173,920 - 16,403,173,920

Non-current 29,180,852,709 10,056,934,063 39,237,786,772

REVALUATION
UPON ASSET
TOTAL 45,584,026,629 10,056,934,063 55,640,960,692

-
TREASURY
SHARES

-
28. BONUS AND WELFARE FUNDS
This fund is established by appropriating from retained profits as approved by shareholders

OTHER CAPITAL
at shareholders’ meeting. This fund is used to pay bonus and welfare to the Company’s and
subsidiaries’ employees in accordance with the Company’s and subsidiaries’ bonus and welfare

-
policies. Movements of bonus and welfare fund during the year were as follows:

Unit: VND

CAPITAL SURPLUS

1,593,242,660,000 711,136,556,786
31/12/2021 01/01/2021

--
-

-
29. CHANGES IN OWNERS’ EQUITY
Opening balance 115,961,617,076 100,571,406,917

Appropriation 39,471,021,845 36,047,429,204

318,638,930,000
SHARE CAPITAL
Utilisation (20,603,380,522) (20,657,219,045)

-
Closing balance 134,829,258,399 115,961,617,076

bonus and welfare

development fund

Gains from divest-

Decreases for the

Net profit for the

Increases for the

dends in form of

Appropriation to

Appropriation to

Appropriation to

plement charter
Payment of divi-

investment and

reserve to sup-

ment of partial
196

investment
Balance at
1/1/2020

shares

capital
funds
year

year

year
 6
Consolidated Financial Statements for the year ended 31 December 2021

198
DIFFERENCES INVESTMENT AND
TREASURY OTHER EQUITY NON-CONTROLLING
SHARE CAPITAL CAPITAL SURPLUS OTHER CAPITAL UPON ASSET DEVELOPMENT RETAINED PROFITS TOTAL
SHARES FUNDS INTEREST
REVALUATION FUND

Profit distribution
- - - - - 1,468,273,789 173,247,510 (7,167,231,822) (15,905,585,319) (21,431,295,842)
at subsidiaries

Combination of
- - - - - - - - 6,184,383,607 6,184,383,607
subsidiaries

Changes in interest
percentage in sub- - - - - - - (52,672,358) 52,672,358 -
sidiaries

Other decreases - - - - - (2,520,000) - (1,163,904,418) 238,612,159 (927,812,259)

Balance at
1,911,881,590,000 711,136,556,786 22,906,800,000 (4,320,000) 708,285,511 166,923,134,253 65,266,052,360 1,108,616,654,270 782,091,249,133 4,769,526,002,313
1/1/2021

DIFFERENCES INVESTMENT AND

TREASURY OTHER EQUITY NON-CONTROLLING
SHARE CAPITAL CAPITAL SURPLUS OTHER CAPITAL UPON ASSET DEVELOPMENT RETAINED PROFITS TOTAL
SHARES FUNDS INTEREST
REVALUATION FUND

Balance at
1,911,881,590,000 711,136,556,786 22,906,800,000 (4,320,000) 708,285,511 166,923,134,253 65,266,052,360 1,108,616,654,270 782,091,249,133 4,769,526,002,313
1/1/2021

Payment of divi-
dends in form of 382,369,490,000 - - - - - - (382,369,490,000) - -
shares (i)

Increases in capital
contribution in - - - - - - - - 364,946,840,000 364,946,840,000
subsidiaries

Captial increases
57,345,410,000 - - 4,320,000 - - - - - 57,349,730,000
under ESOP (ii)

Decreases for the

- - - - - - - - (488,000,000) (488,000,000)
year

Net profit for the

- - - - - - - 695,020,247,248 69,269,719,342 764,289,966,590
year

Appropriation to
bonus and welfare - - - - - - - (38,932,069,415) (538,952,430) (39,471,021,845)
funds

Appropriation to
investment and - - - - - 77,380,070,787 - (77,380,070,787) - -
development fund

Appropriation to
reserve to sup-
- - - - - - 47,707,066 (47,707,066) - -
plement charter
capital

Profit distribution,
dividends payment - - - - - - - - (25,022,805,067) (25,022,805,067)
at subsidiaries
 6
Consolidated Financial Statements for the year ended 31 December 2021

200
DIFFERENCES INVESTMENT AND
TREASURY OTHER EQUITY NON-CONTROLLING
SHARE CAPITAL CAPITAL SURPLUS OTHER CAPITAL UPON ASSET DEVELOPMENT RETAINED PROFITS TOTAL
SHARES FUNDS INTEREST
REVALUATION
FUND

Changes in interest
percentage in sub- - - - - - - - - 387,174,185,564 387,174,185,564
sidiaries

Increase due to
acquisition of a - - - - - - - - 2,408,783,220 2,408,783,220
subsidiary

Other increases/
- - - - - (13,900,000) - 372,471,651 (236,210,187) 122,361,464
decreases

Balance at
2,351,596,490,000 711,136,556,786 22,906,800,000 - 708,285,511 244,289,305,040 65,313,759,426 1,305,280,035,901 1,579,604,809,575 6,280,836,042,239
31/12/2021

(i) In accordance with its Resolution dated 24 April 2021, the Annual General Meeting of Shareholders resolved to distribute dividends in the form of shares at the rate of 20% of the
charter capital from retained profit attributable to the Shareholders of the Company in the consolidated financial statements at 31 December 2020, equivalent to VND382,369,490,000.

(ii) During the year, the Company completed the issuance of new shares to employees under the Employee Stock Ownership Plan (“ESOP”), accounting for 3% of total number of outstanding
shares. Details are as follows:

• Total value of issued share at par value: VND57,349,730,000

• New shares: VND57,345,410,000

• Reissued treasury shares: VND4,320,000

• Offer price: VND10,000 per share

• Target of issuance: in accordance with the ESOP Regulations issued by the Company’ s Board of Management

• Criteria for determining eligible employees, method for determining number of allocated shares to each target of issuance: in accordance with the ESOP Regulations issued by the
Company’ s Board of Management

• Restriction of transfer: shares issued to employees under ESOP shall be restricted from transfer for 2 years from the completion date of treasury share selling/new share issuance
(from 13 November 2021 to 12 November 2023)

• Plan on use of capital obtained from offering treasury shares and new shares under ESOP: to supplement the Company’s working capital.
(a)

(b)

USD
TOTAL
Lease

Within one year

Ordinary shares
Ordinary shares
Ordinary shares

Treasury shares

More than five years

Issued share capital

Shares in circulation

Within two to five years

30. SHARE CAPITAL

Authorised share capital

Foreign currencies
31. OFF BALANCE SHEET ITEMS
-
Number of shares

Original currency

16,646,907
The Company’s authorised and issued share capital are:

31/12/2021

equivalent
VND
31/12/2021
-

235,159,649 2,351,596,490,000
235,159,649 2,351,596,490,000
235,159,649 2,351,596,490,000

375,334,407,252
31/12/2021

66,415,673,279
36,780,381,984
22,449,293,436
7,185,997,859
VND Number of shares

(432)

Original currency

3,458,232
shares bought back by the Company, all rights are suspended until those shares are reissued.
VND
01/01/2021

(4,320,000)

191,187,727 1,911,877,270,000
191,188,159 1,911,881,590,000
191,188,159 1,911,881,590,000

ordinary shares are ranked equally with regard to the Company’s residual assets. In respect of
of the Company. Shareholders are entitled to receive dividend as declared from time to time. All
All ordinary shares have a par value of VND10,000. Each share is entitled to one vote at meetings

equivalent
VND
01/01/2021

79,602,891,081
01/01/2021

52,951,721,359
22,563,956,484
23,542,757,900
6,845,006,975
 (c) Bad debts written off
33. COST OF SALES
6
31/12/2021 01/01/2021
Unit: VND
Cost of construction and electrical equipment 6,253,028,942,081 2,753,270,380,528

REASON FOR WRIT- WRITTEN OFF 31/12/2021 SỐ ĐẦU NĂM

Cost of industrial production 556,103,546,241 742,930,173,126
ING OFF IN YEAR

Cost of investment of properties 14,370,665,863 8,644,604,521

DHT Vietnam Investment and Unrecoverable 1/1/2021
1,396,500,000 -
Development JSC
Cost of transfer of real estate 53,069,874,199 568,780,156,436
Consolidated Financial Statements for the year ended 31 December 2021

Phu Giang Services Company Unrecoverable 2021 Cost of sale of electricity 398,533,773,753 296,465,086,448
216,700,000 -
Limited
Cost of sale of goods 1,350,852,113,935 1,096,148,207,293
AG Ajikawa Corporation Unrecoverable 2006 12,373,726,137 12,373,726,137
Others 47,126,812,882 52,607,408,399
Others Unrecoverable 2007 1,285,920,000 1,285,920,000
Reversal of allowance for inventories (156,963,257) (1,899,925,344)
TOTAL 15,272,846,137 13,659,646,137
TOTAL 8,672,928,765,697 5,516,946,091,407

32. REVENUE FROM SALES OF GOODS AND PROVISION OF SERVICES 34. FINANCIAL INCOME
Total revenue represents the gross value of goods sold and services rendered exclusive of value 31/12/2021 01/01/2021
added tax. Net revenue comprised:
Gains from revaluation of investments upon increasing capital of 262,010,000,000 -
associate to become subsidiary
31/12/2021 01/01/2021
Interest income from deposits and loans 46,237,769,341 34,595,710,712
Revenue from construction and electrical equipment 6,713,974,535,864 3,060,741,678,342
Realised foreign exchange gains 10,972,803,896 1,789,269,593
Revenue from industrial production 649,719,442,242 825,757,109,539
Unrealised foreign exchange gains 77,859,201 10,350,375
Revenue from investment of properties 27,392,240,837 21,647,943,808
Dividends and profit 37,144,800 -

Revenue from transfer of real estate 78,606,494,557 834,445,587,979

Interest from credit sales and early payment discounts received - 860,562,084

Revenue from sale of electricity 928,088,201,316 748,112,842,891

Other financial income 147,345,582 -

Revenue from sale of goods 1,376,706,321,870 1,121,778,208,590

TOTAL 319,482,922,820 37,255,892,764

Others 53,975,943,689 66,117,210,194

35. FINANCIAL EXPENSES
31/12/2021 01/01/2021
TOTAL 9,828,463,180,375 6,678,600,581,343

Interest expense 315,449,056,943 242,367,390,588

Realised foreign exchange losses 31,115,523,477 136,361,267

Unrealised foreign exchange losses 6,161,062,087 1,147,413,708

Allowance for diminution of investments 945,493,896 -

202
Other financial expenses 5,521,477,937 189,761,352

TOTAL 359,192,614,340 243,840,926,915

 36. SELLING EXPENSES
6 31/12/2021 01/01/2021 39. OTHER EXPENSES
31/12/2021 01/01/2021
Raw material costs 38,405,299 25,884,659
Amortisation of mining rights 24,627,852,440 -
Labour costs and staff costs 1,838,132,125 2,190,445,958
Amortisation of land use rights over the land area at 120 1,519,118,905 -
Outside services 35,704,678,192 50,277,679,683 Dinh Cong

Other cash expenses 12,856,605,686 7,543,071,637 Others 10,069,125,337 11,356,483,186

Consolidated Financial Statements for the year ended 31 December 2021

Changes in provision for product warranty 5,539,775,525 10,515,153,984 TOTAL 36,216,096,682 11,356,483,186

TOTAL 55,977,596,827 70,552,235,921 40. PRODUCTION AND BUSINESS COSTS BY ELEMENT

31/12/2021 01/01/2021

Raw material costs 2,980,234,041,687 1,219,256,951,526

37. GENERAL AND ADMINISTRATION EXPENSES
31/12/2021 01/01/2021 Labour costs and staff costs 491,812,062,492 346,409,592,147

Raw material costs 7,237,578,934 4,404,837,578 Depreciation and amortisation 364,222,728,433 279,792,813,355

Labour costs and staff costs 130,142,331,152 126,161,951,000 Provisions 36,509,030,665 15,231,639,533

Depreciation and amortisation 44,909,465,951 85,316,698,553 Outside services 3,358,021,712,088 2,079,180,840,746

Provisions 804,352,473 4,716,485,549 Other cash expenses 183,895,392,144 145,845,698,376

Tax, fee and charge 2,581,526,475 3,918,402,772 TOTAL 7,414,694,967,509 4,085,717,535,683

Outside services 22,968,433,439 19,780,363,856

41. INCOME TAX
Chi phí khác bằng tiền 32.153.712.000 23.423.827.722
a) Recognised in the consolidated statement of income
TOTAL 240,797,400,424 267,722,567,030
31/12/2021 01/01/2021

Current tax expense

38. OTHER INCOME
31/12/2021 01/01/2021 Current year 64,058,982,457 121,451,737,943

Compensation received from other entities 7,306,178,148 20,902,711,736 Under provision in prior years 2,629,036,619 -

Gain from disposal, write-off of fixed assets 1,841,088,295 1,134,154,157 TOTAL 66,688,019,076 121,451,737,943

Gain from disposal of tools and supplies - 1,163,663,779

Gain from bargain purchase in consolidation - 1,613,067,774 Deferred tax expense/(benefit)

Other income 18,894,231,271 3,516,395,544 Origination and reversal of temporary differences 65,494,816,128 (13,721,486,446)
204
TOTAL 28,041,497,714 28,329,992,990 TOTAL 132,182,835,204 107,730,251,497
6 b) Reconciliation of effective tax rate the Company to be exempt from income tax for 4 years (from 2020 to 2023) and entitled to a 50%
reduction in income tax for the 9 succeeding years (from 2024 to 2032).

31/12/2021 01/01/2021 - For Lien Lap, Phong Nguyen, Phong Huy Wind Power Projects, Lien Lap Wind Power Joint
Stock Company, Phong Nguyen Wind Power Joint Stock Company, Phong Huy Wind Power Joint
Accounting profit before tax 896,472,801,794 651,811,909,223 Stock Company, subsidiaries of the Company, are subject to income tax at the rate of 10% of
taxable profits for the first 15 years starting from the first year of operation and standard rate
Tax at the Company’s tax rate 179,294,560,359 130,362,381,845 for succeeding years. The current tax regulations allow these subsidiaries to be exempt from
income tax for 4 years (from 2022 to 2025) and entitled to a 50% reduction in income tax for the 9
succeeding years (from 2026 to 2034).
Tax exempt income (7,428,960) -
Consolidated Financial Statements for the year ended 31 December 2021

Non-deductible expenses 2,869,427,356 350,401,850

42. BASIC EARNINGS PER SHARE
Effect of changes in unrecognised deferred tax assets (11,204,661,961) 26,528,629,187 The calculation of basic earnings per share for the year ended 31 December 2021 was based
on the profit attributable to ordinary shareholders after deducting the amounts appropriated to
Tax incentives (41,398,098,209) (49,511,161,385) Bonus and welfare funds for the annual accounting period and a weighted average number of
ordinary shares outstanding, calculated as follows:
Under provision in prior years 2,629,036,619 -
a) Basic earnings per share
TOTAL 132,182,835,204 107,730,251,497
31/12/2021 01/01/2021
RESTATED

c) Applicable tax rates

Net profit for the year (VND) 695,020,247,248 512,806,303,331

Estimated appropriation to Bonus and welfare funds (38,932,069,415) (38,932,069,415)

Under the terms of the current Income Tax Law, except for the following tax incentives, the
(VND)(*)
Company and its subsidiaries have an obligation to pay the government income tax at the
rate of 20% of taxable profits.
Net profit attributable to ordinary shareholders (VND) 656,088,177,833 473,874,233,916
- For Bao Lam 1 Hydropower Project, the Company is subject to income tax at the rate
of 10% for 15 years (from 2017 to 2031) and the standard rate for the succeeding years. The Weighted average number of ordinary shares for the year 229,550,734 229,424,676
current tax regulations allow the Company to be exempt from income tax for 4 years (from (number of shares)
2017 to 2020) and entitled to a 50% reduction in income tax for the 9 succeeding years (from
2021 to 2029). Basic earnings per share (VND/share) 2,858 2,065

- For Bao Lam 3 Hydropower Project and Bao Lam 3A Hydropower Project, the Company (*) As at 31 December 2021, the Company temporarily estimated the profit for the year ended 31
is subject to income tax at the rate of 10% for 15 years (from 2017 to 2031) and the standard December 2021 to be appropriated to Bonus and welfare funds the same as the amount appropriated for
rate for the succeeding years. The current tax regulations allow the Company to be exempt the year ended 31 December 2020.
from income tax for 4 years (from 2018 to 2021) and entitled to a 50% reduction in income
tax for the 9 succeeding years (from 2022 to 2030). b) Restatement of basic earnings per share for the year ended 31 December 2020

- For Bao Lac B Hydropower Project and Song Nhiem 4 Hydropower Project, the During the year, the Company and its subsidiaries appropriated VND38,932,069,415 from profit
Company is subject to income tax at the rate of 10% for 15 years (from 2020 to 2034) and the after tax attributable to ordinary shareholders of 2020 to Bonus and welfare funds. Therefore, net
standard rate for the succeeding years. The current tax regulations allow the Company to be profit attributable to ordinary shareholders for the year ended 31 December 2020 for calculation
exempt from income tax for 4 years (from 2021 to 2024) and entitled to a 50% reduction in of basic earnings per share was changed.
income tax for the 9 succeeding years (from 2025 to 2033).

- For Trung Thu Hydropower Project, Trung Thu Hydropower Joint Stock Company, a
subsidiary of the Company, is subject to income tax at the rate of 10% for 15 years (from 2017
to 2031) and the standard rate for the succeeding years. The current tax regulations allow the
Company to be exempt from income tax for 4 years (from 2017 to 2020) and entitled to a 50%
reduction in income tax for the 9 succeeding years (from 2021 to 2029).
206
-- For Mong An Hydropower Project, Northern Power Investment Joint Stock Company, a
subsidiary of the Company, is subject to income tax at the rate of 10% for 15 years (from 2020
to 2034) and the standard rate for the succeeding years. The current tax regulations allow
6 c) Weighted average number of ordinary shares
44. COMPARATIVE INFORMATION
31/12/2021 01/01/2021 Comparative information as at 1 January 2021 was derived from the balances and amounts
RESTATED reported in the Company’s consolidated financial statements for the year ended 31 December
2020.
Issued ordinary shares at the beginning of the year 191,188,159 159,324,266

Effect of treasury shares held - (432)

Effect of ordinary shares issued for payment of share - 31,863,893

dividends in the prior year
Consolidated Financial Statements for the year ended 31 December 2021

Effect of ordinary shares issued for payment of share 38,236,949 38,236,949

dividends in current year

Effect of ordinary shares issued under ESOP in current 125,626 -

year

Weighted average number of ordinary shares for the 229,550,734 229,424,676

year ended 31 December Pham Thi Thanh Binh Tran Thi Minh Viet Vu Anh Duong
Preparer Chief Accountant General Director

A comparison of basis earning per share previously reported and as restated is as follows: Hanoi, Vietnam
29 March 2022

2020

AS PREVIOUSLY RESTATEMENT AS RESTATED

REPORTED

Basic earnings per share 2,682 (617) 2,065

43. SIGNIFICANT TRANSACTIONS WITH RELATED PARTIES

In addition to related party balances disclosed in other notes to the consolidated financial
statements, the Company and its subsidiaries had the following significant transactions with
related parties during the year:

TRANSACTION VALUE

31/12/2021 01/01/2021

Board of Management (“BoM”) (5 members) 10,296,058,612 6,404,071,436

Salary, bonus and compensation

Board of General Directors who are not members of the 3,962,909,429 2,385,591,334
BoM
Salary and bonus

Supervisory Board and Chief Accountant (4 members) 2,598,811,390 2,003,492,066

Salary, bonus and compensation
208