PVFCCo ANNUAL REPORT 2023
EN
EN VN

STATEMENT OF THE EXECUTIVE BOARD

The Executive Board of PetroVietnam Fertilizer and Chemicals Corporation - JSC (the “Corporation”) presents this report together with the Corporation’s consolidated financial statements for the year ended 31 December 2023.

THE BOARD OF DIRECTORS, THE EXECUTIVE BOARD AND BOARD OF SUPERVISORS

The members of the Board of Directors, the Executive Board and Board of Supervisors of the Corporation during the year and to the date of this report are as follows:

Board of Directors

  • Mr. Hoang Trong Dung

    Chairman (resigned on 27 October 2023) Member

  • Mr. Nguyen Ngoc Anh

    Member in charge of BOD (appointed on 27 October 2023) Member (appointed on 27 June 2023)

  • Mr. Duong Tri Hoi

    Member

  • Mr. Trinh Van Khiem

    Member

  • Mr. Le Cu Tan

    Member (resigned on 27 June 2023)

  • Mr. Ho Quyet Thang

    Non-executive Member (appointed on 27 June 2023)

  • Mr. Louis T.Nguyen

    Non-executive Member (resigned on 27 June 2023)

Executive Board

  • Mr. Phan Cong Thanh

    Chief Executive Officer (appointed on 25 January 2024)

  • Mr. Le Cu Tan

    Chief Executive Officer (resigned on 27 October 2023)

  • Mr. Dao Van Ngoc

    Executive Officer in charge of Executive Board (appointed on 27 October 2023 and resigned on 25 January 2024)
    Executive Officer

  • Ms. Tran Thi Phuong Thao

    Executive Officer

  • Mr. Cao Trung Kien

    Executive Officer

  • Mr. Ta Quang Huy

    Executive Officer

  • Mr. Le Van Quoc Viet

    Executive Officer (retired on 05 May 2023)

  • Ms. Le Thi Thu Huong

    Executive Officer (resigned on 15 August 2023)

Board of Supervisors

  • Mr. Huynh Kim Nhan

    Head of Board of Supervisors

  • Mr. Luong Phuong

    Member

  • Ms. Tran Thi Phuong

    Member (appointed on 27 June 2023)

  • Mr. Le Vinh Van

    Member (resigned on 27 June 2023)

THE EXECUTIVE BOARD’S STATEMENT OF RESPONSIBILITY

The Executive Board of the Corporation is responsible for preparing the consolidated financial statements, which give a true and fair view of the consolidated financial position of the Corporation as at 31 December 2023, and its consolidated financial performance and its consolidated cash flows for the year then ended in accordance with Vietnamese Accounting Standards, accounting regime for enterprises and legal regulations relating to consolidated financial reporting. In preparing these consolidated financial statements, the Executive Board is required to:

  • select suitable accounting policies and then apply them consistently;
  • make judgments and estimates that are reasonable and prudent;
  • state whether applicable accounting principles have been followed, subject to any material departures disclosed and explained in the consolidated financial statements;
  • prepare the consolidated financial statements on the going concern basis unless it is inappropriate to presume that the Corporation will continue in business; and
  • design and implement an effective internal control system for the purpose of properly preparing and presenting the consolidated financial statements so as to minimize errors and frauds.

The Executive Board of the Corporation is responsible for ensuring that proper accounting records are kept, which disclose, with reasonable accuracy at any time, the consolidated financial position of the Corporation and that the consolidated financial statements comply with Vietnamese Accounting Standards, accounting regime for enterprises and legal regulations relating to consolidated financial reporting. The Executive Board is also responsible for safeguarding the assets of the Corporation and hence for taking reasonable steps for the prevention and detection of frauds and other irregularities.

The Executive Board confirms that the Corporation has complied with the above requirements in preparing these consolidated financial statements.

For and on behalf of the Executive Board,

Tran Thi Phuong Thao
Executive Officer

(According to the Authorization Letter of the Chief Executive Officer
No. 45/UQ-PBHC dated 07 March 2024)

08 March 2024
Ho Chi Minh City, S.R. Vietnam

INDEPENDENT AUDITORS’ REPORT

No:0495/VN1A-HN-BC

TO:

THE SHAREHOLDERS
THE BOARD OF DIRECTORS AND THE EXECUTIVE BOARD
PETROVIETNAM FERTILIZER AND CHEMICALS CORPORATION - JSC

We have audited the accompanying consolidated financial statements of PetroVietnam Fertilizer and Chemicals Corporation - JSC (the “Corporation”) prepared on 08 March 2024, as set out from page 112 to page 151, which comprise the consolidated balance sheet as at 31 December 2023, the consolidated statement of income, the consolidated statement of cash flows for the year then ended, and a summary of significant accounting policies and other explanatory information.

MANAGEMENT’S RESPONSIBILITY FOR THE CONSOLIDATED FINANCIAL STATEMENTS

Management is responsible for the preparation and fair presentation of these consolidated financial statements in accordance with Vietnamese Accounting Standards, accounting regime for enterprises and legal regulations relating to consolidated financial reporting and for such internal control as management determines is necessary to enable the preparation of the consolidated financial statements that are free from material misstatement, whether due to fraud or error.

AUDITORS’ RESPONSIBILITY

Our responsibility is to express an opinion on these consolidated 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 from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the consolidated financial statements. The procedures selected depend on the auditors’ judgment, including the assessment of the risks of material misstatement of the consolidated financial statements, whether due to fraud or error. In making those risk assessments, the auditors consider internal control relevant to the Corporation’s preparation and fair presentation of the consolidated financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Corporation’s internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by management, as well as evaluating the overall presentation of the consolidated financial statements.

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

OPINION

In our opinion, the consolidated financial statements present fairly, in all material respects, the consolidated financial position of the Corporation as at 31 December 2023, and its consolidated financial performance and its consolidated cash flows for the year then ended in accordance with Vietnamese Accounting Standards, accounting regime for enterprises and legal regulations relating to consolidated financial reporting.

Khuc Thi Lan Anh
Deputy General Director

Audit Practising Registration Certificate
No. 0036-2023-001-1

DELOITTE VIETNAM AUDIT COMPANY LIMITED

08 March 2024
Hanoi, S.R. Vietnam

Nguyen Thi Ngan
Auditor

Audit Practising Registration Certificate
No. 5248-2020-001-1

CONSOLIDATED BALANCE SHEET

As at 31 December 2023

FORM B 01-DN/HN

Issued under Circular No. 202/2014/TT-BTC dated 22 December 2014 of the Ministry of Finance

Unit: VND

ASSETS Codes Notes Closing balance Opening balance
A. CURRENT ASSETS 100 9,565,106,752,268 13,578,923,480,222
I. Cash and cash equivalents 110 4 1,241,561,362,115 2,083,841,053,069
1. Cash 111 574,781,435,783 307,981,912,328
2. Cash equivalents 112 666,779,926,332 1,775,859,140,741
II. Short-term financial investments 120 5,385,000,000,000 6,880,000,000,000
1. Held-to-maturity investments 123 5 5,385,000,000,000 6,880,000,000,000
III. Short-term receivables 130 642,215,358,351 458,327,989,385
1. Short-term trade receivables 131 6 432,251,479,566 234,657,477,739
2. Short-term advances to suppliers 132 7 56,288,686,447 90,137,615,251
3. Other short-term receivables 136 8 377,802,561,892 366,959,646,684
4. Provision for short-term doubtful debts 137 9 (224,127,369,554) (233,426,873,759)
5. Deficits in assets awaiting solution 139 - 123,470
IV. Inventories 140 10 1,910,840,607,214 3,871,453,604,350
1. Inventories 141 1,942,109,074,750 4,010,984,671,397
2. Provision for devaluation of inventories 149 (31,268,467,536) (139,531,067,047)
V. Other short-term assets 150 385,489,424,588 285,300,833,418
1. Short-term prepayments 151 11 33,978,366,057 20,104,181,210
2. Value added tax deductibles 152 310,224,881,046 256,414,054,424
3. Taxes and other receivables from the State budget 153 16 41,286,177,485 8,782,597,784
B. NON-CURRENT ASSETS 200 3,744,153,277,315 4,119,872,255,554
I. Long-term receivables 210 876,100,000 1,154,100,000
1. Other long-term receivables 216 8 876,100,000 1,154,100,000
II. Fixed assets 220 2,988,445,788,293 3,254,819,127,727
1. Tangible fixed assets 221 13 2,154,198,652,529 2,434,307,412,659
- Cost 222 11,574,815,724,954 11,487,943,997,171
- Accumulated depreciation 223 (9,420,617,072,425) (9,053,636,584,512)
2. Intangible assets 227 14 834,247,135,764 820,511,715,068
- Cost 228 1,182,099,652,534 1,156,764,897,293
- Accumulated amortisation 229 (347,852,516,770) (336,253,182,225)
III. Investment property 230 15 190,456,645,571 200,140,392,532
- Cost 231 317,953,542,202 317,953,542,202
- Accumulated depreciation 232 (127,496,896,631) (117,813,149,670)
IV. Long-term assets in progress 240 261,326,265,034 218,938,454,705
1. Construction in progress 242 17 261,326,265,034 218,938,454,705
V. Long-term financial investments 250 33,359,983,256 41,768,055,625
1. Investments in joint-ventures, associates 252 18 29,759,983,256 29,279,430,994
2. Equity investments in other entities 253 5 20,502,000,000 20,502,000,000
3. Provision for impairment of long-term financial investments 254 5 (16,902,000,000) (8,013,375,369)
VI. Other long-term assets 260 269,688,495,161 403,052,124,965
1. Long-term prepayments 261 11 57,616,661,429 41,988,497,354
2. Deferred tax assets 262 12 59,981,494,127 187,897,314,223
3. Long-term reserved spare parts 263 10 129,152,858,473 150,228,832,256
4. Other long-term assets 268 22,937,481,132 22,937,481,132
TOTAL ASSETS (270=100+200) 270 13,309,260,029,583 17,698,795,735,776
ASSETS Codes Notes Closing balance Opening balance
C. LIABILITIES 300 1,764,060,255,739 3,681,356,971,208
I. Current liabilities 310 1,484,492,945,240 2,995,517,551,891
1. Short-term trade payables 311 19 768,442,429,490 869,008,139,154
2. Short-term advances from customers 312 20 124,312,355,882 71,911,963,956
3. Taxes and amounts payable to the State budget 313 16 6,127,123,790 296,882,468,676
4. Payables to employees 314 164,498,016,812 219,267,116,813
5. Short-term accrued expenses 315 21 239,514,869,880 802,572,736,521
6. Short-term unearned revenue 318 18,181,819 18,181,819
7. Other current payables 319 22 71,840,876,194 69,965,282,982
8. Short-term loans and obligations under finance leases 320 35 - 202,043,481,704
9. Short-term provisions 321 23 8,176,000,000 375,437,729,910
10. Bonus and welfare funds 322 101,563,091,373 88,410,450,356
II. Long-term liabilities 330 279,567,310,499 685,839,419,317
1. Other long-term payables 337 22 2,219,808,500 3,385,964,000
2. VLong-term loans and obligations under finance leases 338 35 - 505,108,697,415
3. Deferred tax liabilities 341 132,540,000,000 132,540,000,000
4. Long-term provisions 342 23 102,177,312,389 -
5. Scientific and technological development fund 343 42,630,189,610 44,804,757,902
D. EQUITY 400 11,545,199,773,844 14,017,438,764,568
I. Owners' equity 410 24 11,545,199,773,844 14,017,438,764,568
1. Owners' contributed capital 411 3,914,000,000,000 3,914,000,000,000
- Ordinary shares carrying voting rights 411a 3,914,000,000,000 3,914,000,000,000
2. Share premium 412 21,179,913,858 21,179,913,858
3. Treasury shares 415 (2,296,824,120) (2,296,824,120)
4. Investment and development fund 418 4,599,179,502,370 3,497,039,984,859
5. Retained earnings 421 2,838,340,934,833 6,401,099,929,390
- Retained earnings accumulated to the prior year end 421a 2,435,451,267,470 962,657,286,718
- Retained earnings of the current year 421b 402,889,667,363 5,438,442,642,672
6. Non-controlling interests 429 174,796,246,903 186,415,760,581
TOTAL RESOURCES (440=300+400) 440 13,309,260,029,583 17,698,795,735,776
Tran Xuan Thao
Preparer
Vo Ngoc Phuong
Chief Accountant
Tran Thi Phuong Thao
Executive Officer

08 March 2024

CONSOLIDATED INCOME STATEMENT

For the year ended 31 December 2023

FORM B 02-DN/HN

Issued under Circular No. 202/2014/TT-BTC dated 22 December 2014 of the Ministry of Finance

Unit: VND

ITEMS Codes Notes Current year Prior year
1. Gross revenue from goods sold and services rendered 01 13,719,510,012,331 18,744,713,575,383
2. Deductions 02 150,324,493,920 117,534,031,118
3. Net revenue from goods sold and services rendered (10=01-02) 10 27 13,569,185,518,411 18,627,179,544,265
4. Cost of sales 11 27 11,917,438,631,877 10,788,959,662,813
5. Gross profit from goods sold and services rendered (20=10-11) 20 27 1,651,746,886,534 7,838,219,881,452
6. Financial income 21 29 457,576,170,227 365,063,532,585
7. Financial expenses 22 30 71,157,838,669 85,257,284,733
- In which: Interest expense 23 50,638,299,383 64,787,709,845
8. Share of net profit from joint-ventures, associates 24 2,664,912,263 2,662,097,523
9. Selling expenses 25 31 848,444,338,144 977,707,327,576
10. General and administration expenses 26 31 502,354,622,004 556,278,720,793
11. Operating profit (30=20+(21-22)+24-(25+26)) 30 690,031,170,207 6,586,702,178,458
12. Other income 31 11,025,864,376 21,118,924,268
13. Other expenses 32 10,090,505,890 2,239,166,716
14. Profit from other activities (40=31-32) 40 935,358,486 18,879,757,552
15. Accounting profit before tax (50=30+40) 50 690,966,528,693 6,605,581,936,010
16. Current corporate income tax expense 51 32 33,233,788,075 1,129,400,312,150
17. Deferred corporate tax expense/(income) 52 32 127,915,820,096 (108,709,662,383)
18. Net profit after corporate income tax (60=50-51-52) 60 529,816,920,522 5,584,891,286,243
In which:
18.1 Profit after tax attributable to Parent Company 61 519,466,561,842 5,564,877,377,993
18.2 Profit after tax attributable to non-controlling shareholders 62 10,350,358,680 20,013,908,250
19. Basic earnings per share 70 33 1,030 13,581
Tran Xuan Thao
Preparer
Vo Ngoc Phuong
Chief Accountant
Tran Thi Phuong Thao
Executive Office

08 March 2024

CONSOLIDATED CASH FLOW STATEMENT

For the year ended 31 December 2023

FORM B 03-DN/HN

Issued under Circular No. 202/2014/TT-BTC dated 22 December 2014 of the Ministry of Finance

Unit: VND

ITEMS Codes Current year Prior year
I. CASH FLOWS FROM OPERATING ACTIVITIES
1. Profit before tax 01 690,966,528,693 6,605,581,936,010
2. Adjustments for:
Depreciation and amortisation of fixed assets and investment properties 02 403,299,073,758 514,801,559,639
Provisions 03 (364,604,096,606) 329,374,106,479
Foreign exchange losses arising from translating foreign currency items 04 763,978,887 4,492,199,435
Gain from investing activities 05 (452,967,211,465) (330,771,138,384)
Interest expense 06 50,638,299,383 64,787,709,845
3. Operating profit before movements in working capital 08 328,096,572,650 7,188,266,373,024
Increase, decrease in receivables 09 (239,668,055,799) 80,003,832,513
Increase, decrease in inventories 10 2,089,951,570,430 (1,258,270,907,215)
Increase, decrease in payables (excluding accrued loan interest and corporate income tax payable) 11 (551,418,283,375) 516,135,552,056
Increase, decrease in prepaid expenses 12 (29,502,348,922) (21,066,197,693)
Interest paid 14 (76,374,372,520) (64,435,955,328)
Corporate income tax paid 15 (344,716,043,525) (1,209,088,866,037)
Other cash outflows 17 (231,522,416,705) (270,280,230,233)
Net cash generated by operating activities 20 944,846,622,234 4,961,263,601,087
II. CASH FLOWS FROM INVESTING ACTIVITIES
1. Acquisition and construction of fixed assets and other long-term assets 21 (240,758,232,062) (77,483,959,653)
2. Proceeds from sale, disposal of fixed assets and other long-term assets 22 906,078,161 2,494,306,734
3. Cash outflow for lending, buying debt instruments of other entities 23 (9,615,000,000,000) (11,790,000,000,000)
4. Cash recovered from lending, selling debt instruments of other entities 24 11,110,000,000,000 8,365,000,000,000
5. Interest earned, dividends and profits received 27 420,929,990,034 273,435,614,320
Net cash generated by/(used in) investing activities 30 1,676,077,836,133 (3,226,554,038,599)
III. CASH FLOWS FROM FINANCING ACTIVITIES
1. Proceeds from borrowings 33 - 1,059,193,105,000
2. Repayment of borrowings 34 (707,152,179,119) (1,258,761,624,358)
3. Dividends and profits paid 36 (2,755,413,813,475) (1,977,035,742,700)
Net cash used in financing activities 40 (3,462,565,992,594) (2,176,604,262,058)
Net decreases in cash (50=20+30+40) 50 (841,641,534,227) (441,894,699,570)
Cash and cash equivalents at the beginning of the year 60 2,083,841,053,069 2,524,115,312,966
Effects of changes in foreign exchange rates 61 (638,156,727) 1,620,439,673
Cash and cash equivalents at the end of the year (70=50+60+61) 70 1,241,561,362,115 2,083,841,053,069
Tran Xuan Thao
Preparer
Vo Ngoc Phuong
Chief Accountant
Tran Thi Phuong Thao
Executive Officer

08 March 2024

Vision - Mission
Chairman's message
Introduction of PVFCCo
2023 Performance and BOM assessment
Assessments of the BOD on PVFCCo's operations
Corporate governance
Sustainable development report
Financial statements
Download Chapter 6
Financial statements