Final Results
Vietnam Opportunity Fund Limited
19 December 2006
Vietnam Opportunity Fund Limited (the 'Company')
Results for the year ended 30th June 2006
We are pleased to present the annual report for the Vietnam Opportunity Fund
Limited (AIM: VOF) and its subsidiaries for the year ended 30 June 2006.
Chairman's Statement
The past fiscal year was an excellent one for VOF, aided by the country's
positive economic growth, ongoing government reforms, and a steady pipeline of
investments.
Vietnam's Gross Domestic Product (GDP) continued its upward trajectory,
increasing by 7.4% in the first half of 2006. Industrial production, exports,
and retail sales are all surging, underpinning an economy which is acting as a
magnet for overseas investors. Foreign investors have been keen to pick up on
the investment opportunities afforded by such growth, as foreign direct
investment (FDI) surged over the last year. This 'second wave' of foreign
investments marks the end of the FDI lull following the Asian financial crisis
of the late nineties. The increased global interest in Vietnam was underscored
by a boom in tourism revenues, which are projected to outperform the 2006
target.
Government reforms played a key role in the favorable investment and political
climates that have characterized the past year. The new Unified Enterprise Law
and the Common Investment Law came into force, which represent major step toward
a level playing field for foreign and local investors. The 10th Party Congress
held in May has seen a change of leadership, ushering in an acceleration of the
reform program.
The country's positive economic developments have served the Company well, as
the fiscal year VOF bought growth in terms of committed capital and net asset
value per share. Over the fiscal year, the Company issued additional shares to
raise an additional US$76 million, and the latest round of fundraising in
November 2006 was several times over-subscribed. Since 30 June 2005, VOF's NAV
per share has increased from US$1.28 to US$2.00 (up 56%). The VOF portfolio has
expanded considerably since the end of the last fiscal year to include over 60
companies, including investments in over 50 listed and OTC companies, eight real
estate projects, and five private companies.
Given Vietnam's very strong economic performance, the Government's increasing
commitment to reforms, and unprecedented global interest in Vietnam, we believe
VOF will continue to perform well as the country moves forward.
Thank you for your continued interest and support.
Dr. Jonathan Choi
Chairman
Vietnam Opportunity Fund
18 December 2006
Consolidated Balance Sheet
Notes 30 June 2006 30 June 2005
US$ US$
ASSETS
Current
Cash and cash equivalents 32,706,460 52,417,520
Trade accounts receivable 2,951,140 320,979
Short-term deposits and other receivables 5,494,556 3,931,174
Inventories 4,319,823 -
Financial assets at fair value through profit or loss 4 164,789,232 30,118,442
Available-for-sale financial assets 5 9,183,209 -
219,444,420 86,788,115
Non-current
Loan receivable 19,659,480 -
Investment property 3,243,221 -
Investments in associates 7 23,844,581 9,854,600
Goodwill 6 1,719,231 -
Property, plant and equipment 8 6,480,177 -
Construction in progress 2,175,270 -
Other non-current assets 1,375,513 300,000
58,497,473 10,154,600
277,941,893 96,942,715
LIABILITIES AND SHAREHOLDERS' EQUITY
Liabilities
Current
Short-term borrowings 118,772 -
Trade accounts payable 17,476,172 -
Other payables 1,332,606 702,119
18,927,550 702,119
Shareholders' equity
Share capital 9 1,226,572 751,547
Additional paid in capital 9 164,950,181 91,634,442
Translation reserve (34,084) -
Retained earnings 78,787,207 3,854,607
Minority interest 14,084,467 -
259,014,343 96,240,596
277,941,893 96,942,715
Consolidated Statement of Income
Year ended Year ended
30 June 2006 30 June 2005
US$ US$
Incomes
Sales revenue 24,362,136 -
Financial incomes 72,985,939 4,228,564
Other income 14,167,754 164,025
Share of profit in associates 385,018 -
111,900,847 4,392,589
Expenses
Cost of sales (9,614,287) -
Administration expenses (26,343,605) (1,294,838)
Financial expenses (371,372) -
Other expenses (116,191) (227,340)
(36,445,455) (1,522,178)
Net profit 75,455,392 2,870,411
Attributable to shareholders 74,932,600 2,870,411
Attributable to minority interest 522,792 -
Consolidated statement of changes in shareholders' equity
Share Additional Translation Retained Minority Total Equity
capital paid-in reserve earnings interest
capital
US$ US$ US$ US$ US$ US$
Balance 1 July 2004 95,000 9,405,000 - 1,288,196 - 10,788,196
Issue of new shares 656,547 82,229,442 - - - 82,885,989
Profit for the year - - - 2,870,411 - 2,870,411
Dividend payment - - - (304,000) - (304,000)
Balance 30 June 2005 751,547 91,634,442 - 3,854,607 - 96,240,596
Balance 1 July 2005 751,547 91,634,442 - 3,854,607 - 96,240,596
Issue of new shares 475,025 73,315,739 - - 73,790,764
Acquisition of - - - - 13,561,675 13,561,675
subsidiaries
Currency translation - - (34,084) - - (34,084)
Profit for the year - - - 74,932,600 522,792 75,455,392
1,226,572 164,950,181 (34,084) 78,787,207 14,084,467 259,014,343
Consolidated statement of cash flows
Year ended 30 June Year ended 30 June
2006 2005
US$ US$
Cash flows from operating activities
Net profit before tax 75,455,392 2,870,411
Adjustment for:
Gain on financial assets at fair value through profit or loss (77,511,981) (1,333,352)
Gain on investment properties (404,399) -
Gain on sale of investment - (38,414)
Share of associate's profits (552,011) (1,478,086)
Negative goodwill (13,685,855) -
Unrealised foreign exchange losses 201,202 172,920
Interest and dividend incomes (4,664,935) (1,551,631)
Net loss before changes in working capital (21,162,587) (1,358,152)
Increase in accounts receivable (3,586,014) (3,451,604)
Increase in accounts payable 18,014,659 504,323
Net cash used in operating activities (6,733,942) (4,305,433)
Cash flows from investing activities
Interest received 1,579,775 300,255
Dividend received 2,477,631 1,066,189
Purchase of fixed assets and other non-current assets (2,175,270) -
Acquisition of investments (114,717,471) (39,742,964)
Investment in associate (1,392,461) -
Investment in subsidiaries (1,666,751) -
Proceeds from sale of investments 48,786,145 10,866,648
Loan issued (19,659,480) -
Net cash used in investing activities (86,767,882) (27,509,872)
Cash flows from financing activities
Proceeds from shares issued 73,790,764 82,885,989
Dividend paid - (304,000)
Net cash from financing activities 73,790,764 82,581,989
Net increase in cash and cash equivalents for the year (19,711,060) 50,766,684
Cash at the beginning of the year 52,417,520 1,650,836
Cash and cash equivalents at end of the year 32,706,460 52,417,520
Notes to the consolidated financial statements
1. Corporate information
Vietnam Opportunity Fund Limited was incorporated in the Cayman Islands as a
company with limited liability. The registered office of the Company is PO Box
309GT, Ugland House, South Church Street, George Town, Grand Cayman, Cayman
Islands. The Company has the following subsidiaries and associates:
Proportion of ownership interest held
Asia Value Investment Ltd 100%
Vietnam Enterprise Ltd 100%
Vietnam Investment Property Ltd 100%
Vietnam Investment Property Holdings Ltd 100%
Vietnam Investment Ltd 100%
Vietnam Ventures Ltd 100%
VOF Investment Ltd 100%
Indochina Building Supplies Pte Ltd 100%
Bivi Investment Corporation 100%
Indotel Limited 57.6%
Pegasus Leisure Limited 100%
Hung Vuong Corporation 30%
International School Ho Chi Minh City 35%
Kido's Ice Cream Corporation 30%
Kinh Do Property Limited 30%
Phong Phu Investment Development Ltd 30%
T.D Corporation 30%
S.E.M Thong Nhat Hotel Metropole 28.8%
AA Land Corporation Limited 29%
The principal activity of the Company is to invest in listed and unlisted
companies, debt instruments, assets and other opportunities in Vietnam and
surrounding countries with the objective of achieving medium to long-term
capital appreciation and providing investors with an attractive level of
investment income from interest and dividends.
2. Principal accounting policies
Basis of presentation
The financial statements have been prepared in accordance with International
Financial Reporting Standards (IFRS) as developed and published by the
International Accounting Standards Board (IASB). The financial statements have
been prepared on the historical cost convention, as modified by the revaluation
of land and buildings, available-for-sale financial assets, and financial assets
and financial liabilities at fair value through profit or loss.
The preparation of financial statements in accordance with IFRS requires the use
of certain accounting estimates and assumptions. Although these estimates are
based on management's best knowledge of current events and actions, actual
results may ultimately differ from those estimates.
Consolidation
Subsidiaries are all entities over which the Group has the power to control the
financial and operating policies. The Company obtains and exercises control
through voting rights. The consolidated financial statements of the Group
incorporate the financial statements of the parent company as well as those
entities controlled by the Group by full consolidation. In addition, acquired
subsidiaries are subject to application of the purchase method. This involves
the revaluation at fair value of all identifiable assets and liabilities,
including contingent liabilities of the subsidiary, at the acquisition date,
regardless of whether or not they were recorded in the financial statements of
the subsidiary prior to acquisition. On initial recognition, the assets and
liabilities of the subsidiary are included in the consolidated balance sheet at
their revalued amounts, which are also used as the bases for subsequent
measurement in accordance with the Group accounting policies. Goodwill
represents the excess of acquisition cost over the fair value of the Group's
share of the identifiable net assets of the acquired subsidiary at the date of
acquisition.
Entities whose economic activities are controlled jointly by the Group and by
other venturers independent of the Group are accounted for using equity
consolidation.
Associates are those entities over which the Group is able to exert significant
influence but which are neither subsidiaries nor interests in a joint venture.
Investments in associates are initially recognised at cost and subsequently
accounted for using the equity method. Acquired investments in associates are
also subject to purchase accounting. However, any goodwill or fair value
adjustment attributable to the share in the associate is included in the amount
recognised as investment in associates. All subsequent changes to the share of
interest in the equity of the associate are recognised in the Group's carrying
amount of the investment. Changes resulting from the profit or loss generated by
the associate are recorded in the Group's consolidated income statement and
therefore affect net results of the Group. These changes include subsequent
depreciation, amortisation or impairment of the fair value adjustments of assets
and liabilities. Items that have been directly recognised in the associate's
equity, for example, resulting from the associate's accounting for
available-for-sale securities, are recognised in consolidated equity of the
Group. Any non-income related equity movements of the associate that arise, for
example, from the distribution of dividends or other transactions with the
associate's shareholders, are charged against the proceeds received or granted.
No effect on the Group's net result or equity is recognised in the course of
these transactions. However, when the Group's share of losses in an associate
equals or exceeds its interest in the associate, including any other unsecured
receivables, the Group does not recognise further losses, unless it has incurred
obligations or made payments on behalf of the associate. Unrealised gains on
transactions between the Group and its associates are eliminated to the extent
of the Group's interest in the associates. Unrealised losses are also eliminated
unless the transaction provides evidence of an impairment of the asset
transferred. Accounting policies of associates have been changed where necessary
to ensure consistency with the policies adopted by the Group.
Functional and presentation currency
The financial statements are presented in United States Dollars ('the
presentation currency'). The currency of the primary economic environment in
which the Group operates ('the functional currency') is the Vietnamese Dong. The
reasons for using the United States Dollar as the presentation currency rather
than the functional currency are that the shareholders are more familiar with
the United States Dollar and certain transactions of the Group are in the United
States Dollar.
Foreign currency translation
For Group companies which maintain their accounting records in United States
Dollars, transactions in currencies other than the United States Dollar are
translated at the exchange rates that approximate those prevailing on
transaction dates. Monetary assets and liabilities denominated in currencies
other than the United States Dollar are translated at the balance sheet date
into United States Dollars at exchange rates that approximate those prevailing
on that date. All exchange gains and losses are recognized separately in the
statement of income.
For Group companies which maintain their accounting records and prepare their
financial statements in currencies other than the United States Dollars, items
in the income statement are translated at the exchange rates that approximate
those prevailing on transaction dates. Items in the balance sheet are translated
at the balance sheet date into United States Dollars at exchange rates that
approximate those prevailing on that date. All exchange gains and losses are
recorded directly into equity.
Financial assets
The Group's financial assets include cash and financial instruments. Financial
assets, other than hedging instruments, can be divided into the following
categories: loans and receivables, financial assets at fair value through profit
or loss, available-for-sale financial assets and held-to-maturity investments.
Financial assets are assigned to the different categories by management on
initial recognition, depending on the purpose for which the investments were
acquired. The designation of financial assets is re-evaluated at every reporting
date at which a choice of classification or accounting treatment is available.
All financial assets are recognised on their settlement date. All financial
assets that are not classified as at fair value through profit or loss are
initially recognised at fair value, plus transaction costs. Derecognition of
financial instruments occurs when the rights to receive cash flows from the
investments expire or are transferred and substantially all of the risks and
rewards of ownership have been transferred. An assessment for impairment is
undertaken at least at each balance sheet date whether or not there is objective
evidence that a financial asset or a group of financial assets is impaired.
Non-compounding interest and other cash flows resulting from holding financial
assets are recognised in profit or loss when received, regardless of how the
related carrying amount of financial assets is measured.
Held-to-maturity investments are non-derivative financial assets with fixed or
determinable payments and a fixed date of maturity. Investments are classified
as held-to maturity if it is the intention of the Company's management to hold
them until maturity. Held-to-maturity investments are subsequently measured at
amortised cost using the effective interest method. In addition, if there is
objective evidence that the investment has been impaired, the financial asset is
measured at the present value of estimated cash flows. Any changes to the
carrying amount of the investment are recognised in profit or loss.
Financial assets at fair value through profit or loss include financial assets
that are either classified as held for trading or are designated by the entity
to be carried at fair value through profit or loss upon initial recognition. In
addition, derivative financial instruments that do not qualify for hedge
accounting are classified as held for trading. Subsequent to initial
recognition, the financial assets included in this category are measured at fair
value with changes in fair value recognised in profit or loss. Financial assets
originally designated as financial assets at fair value through profit or loss
may not subsequently be reclassified.
Available-for-sale financial assets include non-derivative financial assets that
are either designated to this category or do not qualify for inclusion in any of
the other categories of financial assets. All financial assets within this
category are subsequently measured at fair value, unless otherwise disclosed,
with changes in value recognised in equity, net of any effects arising from
income taxes. Gains and losses arising from securities classified as
available-for-sale are recognised in the income statement when they are sold or
when the investment is impaired. In the case of impairment, any loss previously
recognised in equity is transferred to the income statement. Losses recognised
in the income statement on equity instruments are not reversed through the
income statement. Losses recognised in prior period income statements resulting
from the impairment of debt securities are reversed through the income
statement.
Loans and receivables are non-derivative financial assets with fixed or
determinable payments that are not quoted in an active market. They arise when
the Company provides money, goods or services directly to a debtor with no
intention of trading the receivables. Loans and receivables are subsequently
measured at amortised cost using the effective interest method, less provision
for impairment. Any change in their value is recognised in profit or loss. Trade
receivables are provided against when objective evidence is received that the
Company will not be able to collect all amounts due to it in accordance with the
original terms of the receivables. The amount of the write-down is determined as
the difference between the asset's carrying amount and the present value of
estimated future cash flows.
Property, plant and equipment
Buildings, equipment and machinery, vehicles, fixture and furniture, and other
classes of property, plant and equipment are carried at acquisition cost or
manufacturing cost less subsequent depreciation and impairment losses.
Depreciation is recorded on a straight-line basis over the estimated useful
lives of the assets, at the following annual rates:
Buildings and improvements 4% - 20%
Equipment and machinery 15% - 20%
Vehicles 15% - 16.67%
Fixture and furniture 15% - 25%
Others 10%
Cash and cash equivalents
Cash and cash equivalents include cash in bank and short-term, highly liquid
investments readily convertible to known amounts of cash and which are subject
to insignificant risk of changes in value.
Interest and dividend income
Interest income is recognized on an accrual or if applicable effective yield
basis. Dividend income is recorded when the stockholders' right to receive the
dividend is established.
Equity
Share capital is determined using the nominal value of shares that have been
issued. Additional paid-in capital includes any premiums received on the initial
issuing of the share capital. Any transaction costs associated with the issuing
of shares are deducted from additional paid-in capital.
Retained earnings include all current and prior period results as disclosed in
the income statement.
3. Risk management objectives and policies
The Group invests in listed and unlisted equity instruments, debt instruments,
assets and other opportunities in Vietnam and surrounding countries with the
objective of achieving medium to long-term capital appreciation and providing
investors with an attractive level of investment income from interest and
dividends.
The Group is exposed to a variety of financial risks which result from both its
operating and investing activities. The Group's risk management is coordinated
by its Investment Manager who manages the distribution of the assets to achieve
the investment objectives. The most significant financial risks to which the
Group is exposed are described below:
Foreign currency risk
While the Group seeks to make investments which are US Dollar based when
possible, the Group make investments in and earns income denominated in local
currencies. The Vietnamese Dong is not freely convertible into other currencies.
Exchange rate fluctuations and local currency devaluation could have a material
effect on the value of that portion of the Group's assets or liabilities
denominated in Vietnamese Dong. The Group may seek to hedge against a decline in
the value of the Group's Dong denominated investments resulting from currency
fluctuations but only when suitable hedging instruments are available on a
timely basis and on acceptable terms.
The Group's exposure to fluctuations in foreign currency exchange rates at the
balance sheet date was as follows:
30 June 2006 30 June 2005
US$ US$
Assets denominated in Vietnamese Dong 212,563,713 76,737,265
Liabilities denominated in Vietnamese Dong 13,332,952 5,474,265
Price risk
Price risk is the risk that the value of the instrument will fluctuate as a
result of changes in market prices, whether caused by factors specific to an
individual investment, its issuer or all factors affecting all instruments
traded in the market. As the majority of the Group's financial instruments are
carried at fair value with fair value changes recognised in the income
statement, all changes in market conditions will directly affect net investment
income. Price risk is mitigated by the Group's Investment Manager by
constructing a diversified portfolio of listed and unlisted instruments. In
addition, price risk may be hedged using derivative financial instruments such
as options or futures.
Credit risk
The carrying amounts of financial assets shown on the face of the balance sheet
best represent the maximum credit risk exposure at the balance sheet date. There
were no significant concentrations of credit risk to counter-parties at 30 June
2006.
The Group's trade and other receivables are actively monitored to avoid
significant concentrations of credit risk. In addition, for a significant
proportion of sales, advance payments are received to mitigate credit risk. The
Group has adopted a no-business policy with customers lacking an appropriate
credit history where credit records are available.
Cash flow and fair value interest rate risks
The majority of the Group's financial assets are non-interest-bearing. The Group
currently has no financial liabilities with floating interest rates. As a
result, the Group is subject to limited exposure to cash flow and fair value
interest rate risk. Cash flow and fair value interest rate risks are managed by
means of derivative financial instruments, where necessary, to ensure short- to
medium term liquidity.
4. Financial assets at fair value through profit or loss
30 June 2006 30 June 2005
US$ US$
Ordinary shares-listed 90,345,054 5,079,217
Ordinary share-unlisted 69,943,334 23,637,740
Government bonds 4,500,844 1,401,485
164,789,232 30,118,442
5. Available-for-sale financial assets
30 June 2006 30 June 2005
US$ US$
Non-listed equity shares 6,407,928 -
Convertible notes 2,022,242 -
Others 753,039 -
9,183,209 -
6. Acquisition of subsidiaries
During the year the Group acquired equity interests in the following entities,
with details as follows:
Indochina Building Supplies Pte Ltd
On 1 July 2005, the Group acquired 100% of the ordinary shares and redeemable
preference shares of Indochina Building Supplies Limited, which was incorporated
in Singapore. The principal activity of this company is to produce home
decorating products. The total cost of acquisition was US$3,434,929 and settled
in cash. At the date of acquisition the financial information for each class of
acquiree's assets, liabilities and contingent liabilities were not available.
Negative goodwill amounting to US$10,943,222 has been recognized in the income
statement for the year ended 30 June 2006.
BiVi Investment Corporation
On 1 July 2005, the Group acquired 100% equity interest in BiVi Corporation,
which was incorporated in Vietnam. The principal activity of this company is to
engage in property investment and development in Vietnam. At the date of
acquisition the entity had no assets, liabilities or contingent liabilities.
Indotel Limited
On 31 December 2005, the Group acquired 57.6% of the ordinary shares of Indotel
Limited which in turn owns 28.8% of the equity interest in S.E.M Thong Nhat
Hotel Metropole. Indotel Limited was incorporated in Hong Kong and S.E.M Thong
Nhat Hotel Metropole was incorporated in the Socialist Republic of Vietnam. The
total cost of acquisition was US$10,054,935 and settled in cash. The amounts
recognized for each class of acquiree's assets, liabilities at the acquisition
date are as follows:
Current assets US$ Current liabilities US$
Cash and cash equivalent 4,024,000
Trade and other receivable 500,000 Trade and other payables 92,000
4,524,000 92,000
Non-current assets Non-current liabilities
Investment in associates 13,767,000 Long term loans -
Other intangible assets 4,019,000 Other non-current liabilities -
17,786,000 -
22,310,000 92,000
Negative goodwill amounting to US$2,742,633 has been recognized in the income
statement for the year ended at 30 June 2006.
Pegasus Leisure Limited
The Company holds a 100% equity interest in Pegasus Leisure Limited which in
turn owns 70% of the equity interest in Saigon Water Park. Pegasus Leisure
Limited was incorporated in the British Virgin Islands and Saigon Water Park was
incorporated in Socialist Republic of Vietnam. The principal activity of these
companies is to engage in property development. The total cost of acquisition
was US$2,413,587 and settled in cash. At the date of acquisition the financial
information for each class of acquiree's assets, liabilities and contingent
liabilities were not available.
Goodwill in the amount of US$1,719,231 arises from the acquisition of Pegasus
Leisure Limited.
7. Investment in associates
2006 2005
US$ US$
Hung Vuong Corporation 2,209,663 1,530,000
International School of Ho Chi Minh City 1,601,666 2,074,064
Kido's Ice Cream Corporation 1,018,526 765,416
Kinh Do Property Limited 2,261,001 -
Phong Phu Investment Development Ltd 748,492 -
T.D Corporation 857,348 864,972
S.E.M Thong Nhat Hotel Metropole 14,622,000 -
Saigon Water Park Ltd - 2,413,587
A&B Tower - 1,050,000
AA Land Corporation Limited 525,885 525,885
Petrolimex Real Estate Joint Stock Co. - 630,676
23,844,581 9,854,600
Hung Vuong Corporation
The Company holds 30% equity interest in Hung Vuong Corporation, which was
incorporated in the Socialist Republic of Vietnam. The shares of Hung Vuong
Corporation are not publicly listed on a stock exchange and hence the fair value
of its shares cannot be determined. The investment is accounted for under the
equity method. Financial information of Hung Vuong Corporation can be summarized
as follows:
30 June 2006
US$
Assets 17,069,206
Liabilities 13,891,362
Revenues -
Loss (141,988)
Loss attributable to the Group (42,348)
International School Ho Chi Minh City
The Company holds 50% equity interest in Vanguard Era Investment Ltd, which
inter hold 70% equity interest in International School Ho Chi Minh City.
International School Ho Chi Minh was incorporated in the Socialist Republic of
Vietnam. The shares of International School of Ho Chi Minh City are not publicly
listed on a stock exchange and hence the fair value of its shares cannot be
determined. The investment is accounted for under the equity method. Financial
information of International School of Ho Chi Minh City can be summarized as
follows:
30 June 2006
US$
Assets 7,239,025
Liabilities 5,404,045
Revenues 9,682,121
Profit 1,195,531
Profit attributable to the Group 418,436
Kido's Ice Cream Corporation
The Company holds 30% equity interest in Kido's Ice Cream Corporation, which was
incorporated in the Socialist Republic of Vietnam. The shares of Kido's Ice
Cream Corporation are not publicly listed on a stock exchange and hence the fair
value of its shares cannot be determined. The investment is accounted for under
the equity method. Financial information of Kido's Ice Cream Corporation can be
summarized as follows:
30 June 2006
US$
Assets 5,391,522
Liabilities 2,160,118
Revenues 3,629,111
Profit 301,496
Profit attributable to the Group 166,844
Kinh Do Property Limited
The Company holds 30% equity interest in Kido's Property Limited, which was
incorporated in the Socialist Republic of Vietnam. The shares of Kido's Property
Limited are not publicly listed on a stock exchange and hence the fair value of
its shares cannot be determined. The investment is accounted for under the
equity method. Financial information of Kido's Property Limited can be
summarized as follows:
30 June 2006
US$
Assets 6,308,214
Liabilities 4,223
Revenues -
Profit 35,264
Profit attributable to the Group 10,579
Phong Phu Investment Development Ltd
The Company holds 30% equity interest in Phong Phu Investment Development Ltd,
which was incorporated in the Socialist Republic of Vietnam. The shares of Phong
Phu Investment Development Ltd are not publicly listed on a stock exchange and
hence the fair value of its shares cannot be determined. The investment is
accounted for under the equity method. Financial information of Phong Phu
Investment Development Ltd can be summarized as follows:
30 June 2006
US$
Assets 3,746,504
Liabilities 185,525
Revenues -
Net loss (7,330)
Loss attributable to the Group (1,649)
T.D Corporation
The Company holds 30% equity interest in T.D Corporation, which was incorporated
in the Socialist Republic of Vietnam. T.D Corporation is investing in a property
project named Nha Trang Hotel. The shares of T.D Corporation are not publicly
listed on a stock exchange and hence the fair value of its shares cannot be
determined. The investment is accounted for under the equity method. As at the
date of this financial statement the financial information of the associate as
at and for the year ended 30 June 2006 is not available.
AA Land Corporation Limited
The Company holds 29% equity interest in AA Land Corporation Limited, which was
incorporated in the Socialist Republic of Vietnam. The shares of AA Land
Corporation Limited are not publicly listed on a stock exchange and hence the
fair value of its shares cannot be determined. The investment is accounted for
under the equity method. As at the date of this financial statement the
financial information of the associate as at and for the year ended 30 June 2006
is not available.
8. Property, plant and equipment of subsidiaries
Buildings and Equipment and Vehicles Fixture and Others Total
improvements machinery
furniture
US$ US$ US$ US$ US$ US$
Historical cost
30 June 2006 9,562,966 15,363,165 416,172 351,287 5,754,035 31,447,625
Accumulated
depreciation
30 June 2006 (4,400,203) (15,090,972) (390,183) (298,633) (4,787,457) (24,967,448)
Net book value
30 June 2006 5,162,763 272,193 25,989 52,654 966,578 6,480,177
9. Paid-in capital
2006 2005
US$ US$
Share capital: ordinary shares with nominal value of US$0.01 1,226,572 751,547
per shares. Authorised 500,000,000 shares; issued 2006:
47,502,548 shares; 2005: 65,654,654 shares.
Additional paid-in capital 164,950,181 91,634,442
166,176,753 92,385,989
10. Related party transactions
During the period, the following transactions with related parties were
recorded:
Related party Relation Transaction US$
VinaCapital Investment Management Limited Investment manager Performance fee 15,396,334
Management fee 4,348,221
At 30 June 2006 the following balances were outstanding with related parties:
Related party Relation Payable
US$
VinaCapital Investment Management Limited Investment manager 15,932,387
The financial information set out in this announcement does not constitute the
Group's statutory accounts for the period ended 30 June 2006 but is derived from
those accounts. The full audited accounts of Vietnam Opportunity Fund Limited
for the year ended 30 June 2006 will be posted to shareholders shortly and will
be available for a period of one month to the public at the offices of
VinaCapital Investment Management Ltd, 17/F, Sun-Wah Tower, Ho Chi Minh City,
Vietnam , for a period of 30 days from the date of this announcement.
This information is provided by RNS
The company news service from the London Stock Exchange
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