Maic Restaurant Company Limited: Audited Financial Statements For The Fiscal Year Ended 31 December 2019

MAIC RESTAURANT COMPANY LIMITED
Audited Financial Statements

for the fiscal year ended 31 December 2019
Address: 107 Ton Dat Tien, Tan Phu Ward, District 7, Ho Chi Minh City, Viet Nam
CONTENTS
Trang
1. Report of the Board of General Directors 2-4
2. Independent Auditor’s Report 5-6
3. Audited Financial Statements
- Balance sheet 7-8
- Income statement 9
- Cash flow statement 10
- Notes to Financial statements 11 - 25
1
REPORT OF THE BOARD OF GENERAL DIRECTORS

The fiscal year ended 31 December 2019
The Board of General Directors of MAIC Restaurant Company Limited (hereinafter called "the
Company") presents this report together with the accompanying financial statements of the
Company for the fiscal year ended 31 December 2019 and the Independent Auditor's Report
thereon.
1. General information
MAIC Restaurant Company Limited (hereinafter called "the Company") has been operating
in accordance with the Business Registration Certificate No.0310000345 first issued on 15
June 2010, the latest amendment (7th) on 31 July 2019 issued by the Department of
Planning and Investment of Ho Chi Minh City.
Legal capital of the company on 31 December 2019 is VND 26.000.000.000
Main operations:
- Restaurants and mobile food service activities. Detail: Restaurant;
- Wholesale of food;
- Provision of food services based on contractual arrangements with the customer;
- Beverage serving activities (except taverns and bars);
- Retail sale of tobacco products in specialized stores (according to Decision No.
64/2009/QD-UBND issued on 31 July 2009 and Decision No.79/2009/QD-UBND issued
on 17 October 2009 by People’s Committee of Ho Chi Minh City about zoning
agricultural and food bussiness in Ho Chi Minh City);
- Retail sale of beverages in specialized stores.
2. The Board of Directors and the Management

Members of the Board of Directors of the Company until the fiscal year ended and until this
report was issued are as follows:
Full name: Position:
- Mr.Mai Duc Bao Chairman
- Mr.Nguyen Trinh Hien Member
The Management of the Company until the fiscal year ended and until this Report was
issued is Mr.Mai Duc Bao (legal representative).
3. Head office
The head office is located at 107 Ton Dat Tien, Tan Phu Ward, District 7, Ho Chi Minh City,
Viet Nam.
4. Financial position and business results

The financial position as of 31 December 2019, the business results and the cash flows for
the fiscal year then ended of the Company have been expressed in the accompanying
Audited Financial Statement.
.
2
REPORT OF THE BOARD OF GENERAL DIRECTORS (Cont.)

5. Subsequent events
There have been no events from the date of these financial statements which have not
been considered for adjustments on the figures or the disclosures in the accompanying
Audited Financial Statements.
6. Auditor
PKF Viet Nam Company Limited has performed the audit on the Company’s Financial
Statements for the fiscal year ended 31 December 2019.
7. Confirmation of the Board of General Directors

The Board of General Directors of the Company is responsible for the preparation of the
financial statements to give a true and fair view on the financial position as of 31 December
2019, the business results and the cash flows for the fiscal year then ended. To prepare
these financial statements, the Board of General Directors of the Company is required to:
- Establish and maintain the internal control as The Board of General Directors
determine necessary to enable the preparation and presentation of the financial
statements to be free from material misstatements due to fraud and error;
- Select suitable accounting policies and then apply them consistently;
- Make judgments and estimates that are reasonable and prudent;
- Announce the accounting standards to be followed for the material issues to be
disclosed and explained in the financial statements;
- Prepare and present the financial statements based on compliance with accounting
standards, accounting regulations and legal provisions related to the preparation and
presentation financial statements;
- Prepare the financial statements of the Company based on the going-concern
assumption, except for the cases that the going-concern assumption is considered
inappropriate.
The Board of General Directors hereby ensures that all the requirements above have been
followed when the financial statements are prepared, and noticed no unusual problem
occurs that can affect the ability of the business to continue as a going concern.
The Board of General Directors is responsible for ensuring that all the accounting books
have been completely recorded and have given a true and fair view of the financial position
of the Company and that all the financial statements have been prepared in compliance
with the prevailing Vietnamese Accounting System and Standards as well as other related
regulation of preparation of the financial statements.
The Board of General Directors of the Company is also responsible for protecting the
Company’s assets and consequently has taken appropriate measures to prevent and
detect fraud and other irregularities.
The Board of General Directors confirms that the financial statements for the fiscal year
ended 31 December 2019 of the Company have been prepared in accordance with the
above requirements.
3
REPORT OF THE BOARD OF GENERAL DIRECTORS (Cont.)

8. Opinion of the Board of General Directors

In the opinion of the Board of General Directors of the Company, the audited financial
statements (attached) have given a true and fair view on the financial position of the
Company as at 31 December 2019, the business results and the cash flows for the fiscal
year then ended 31 December 2019 in compliance with the prevailing Vietnamese
Accounting System and Standards as well as other related regulations for the preparation
and presentation of financial statements.
Ho Chi Minh City, Dated February 2020
GENERAL DIRECTOR
Mai Đuc Bao
4
No: …/2020/BCKT-PKF.HCMC Ho Chi Minh City, February 2020
INDEPENDENT AUDITOR’S REPORT
Kính gửi: SHAREHOLDERS, THE BOARD OF DIRECTORS AND THE MANAGEMENT

We have audited the accompanying Financial Statements for the fiscal year ended 31 December
2019 of MAIC Restaurant Company Limited, which were prepared on February 2020 from page
07 to 28, included: the Balance Sheet as at 31 December 2019, the Income Statement, the Cash
Flow Statement and the Notes to the Financial Statements for the fiscal year ended 31 December
2019.
The audited financial statements are not intended to reflect the financial position, the income
statement and the cash flows in accordance with accounting principles and general routines
accepted in other countries outside Vietnam.
The Board of General Directors’ responsibility

The Board of General Directors of Nori Vietnam Company Limited is responsible for the
preparation, true and fair presentation of the financial statements in accordance with the
Vietnamese accounting standards and system as well as the legal regulations related to the
preparation and presentation of the financial statements; and responsible for the internal control
as The Board of General Directors determine necessary to enable the preparation and
presentation of the financial statements to be free from material misstatements due to frauds and
errors.
Auditor’s responsibility
Our responsibility is to express an opinion on the 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 standards and requirements, plan and perform the audit to
obtain reasonable assurance about whether the financial statements of Terraco Vietnam
Company Limited are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and
disclosures in the financial statements. The procedures selected depend on the auditor’s
judgment, including the assessment of the risks of material misstatement of the financial
statements, whether due to fraud or error. In making those risk assessments, auditor considers
internal control relevant to the Company’s preparation of the financial statements to design audit
procedures that are appropriate in the circumstances but not for expressing an opinion on the
effectiveness of the Company’s internal control. An audit also includes evaluating the
appropriateness of accounting policies and the reasonableness of accounting estimates made by
The Board of General Directors, as well as evaluating the overall presentation of the financial
statements.
5
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a
basis for our audit opinion.
Auditor’s opinion
In our opinion, the Financial Statements referred to above give a true and fair view at Financial
situations as at December 31, 2019, the Income statement and The Cash flow statement as the
fiscal year ended of Nori Vietnam Company Limited, and be prepared in accordance with Viet
Nam Accounting Standards, Enterprise accounting regime applicable Vietnam and the legal
provisions relating to the preparation and presentation of Financial Statements.
Other issues
Company’s financial statement on 31 December 2018 is not audited.
For and on behalf ofPKF Vietnam Company Limited.
Truong Quang Trung Nguyen Thi Hoang Van

Branch Director Auditor
Audit Certificate No. 1752-2018-242-1 Audit Certificate No. 1561-2017-242-1
6
BALANCE SHEET
December 31, 2019 Currency unit: VND
ASSETS Code Note 31/12/2019 01/01/2019
SHORT-TERM ASSETS 100 2.834.552.823 7.606.249.737

Cash and cash equivalents 110 5.1 2.138.567.921 6.865.825.853
Cash 111 2.138.567.921 6.865.825.853
Cash equivalents 112 - -
Short-term receivables 130 81.916.750 91.087.342
Short-term receivables from customers 131 18.480.000 6.720.012
Short-term prepayments to suppliers 132 5.2 48.852.000 3.750.000
Other short-term receivables 136 5.3a 14.584.750 80.617.330
Provision for uncollectible short-term
137
receivables (*) - -
Inventories 140 434.610.224 433.793.535
Inventories 141 5.4 434.610.224 433.793.535
Provision against devaluation of goods in
149
stock (*) - -
Other short-term assets 150 179.457.928 215.543.007
Short-term prepaid expenses 151 5.5a 179.457.928 215.543.007

LONG-TERM ASSETS 200 4.850.742.999 1.723.198.724
Long-term receivables 210 903.291.075 903.291.075
Long-term receivables from customers 216 5.3b 903.291.075 903.291.075
Provision for doubtful long-term receivables
219
(*) - -
Fixed assets 220 3.933.988.652 773.977.505
Tangible fixed assets 221 5.6 3.933.988.652 773.215.810
- Costs 222 21.803.489.731 17.600.137.789
- Value of accumulated depreciation (*) 223 (17.869.501.079) (16.826.921.979)
Intangible fixed assets 227 5.7 - 761.695
- Costs 228 137.848.872 137.848.872
- Value of accumulated depreciation (*) 229 (137.848.872) (137.087.177)
Other long-term assets 260 13.463.272 45.930.144
Long-term prepaid expenses 261 5.5b 13.463.272 45.930.144

TOTAL ASSETS 270 7.685.295.822 9.329.448.461
This report must be read together with Notes to the Separate Financial Statements. 7
BALANCE SHEET (Cont.)

December 31, 2019 Currency unit: VND
LIABILITIES AND OWNER’S EQUITY Code Note 31/12/2019 01/01/2019
LIABILITIES 300 3.807.977.944 2.367.611.443

Short-term debt 310 3.378.484.396 2.367.611.443
Short-term supplier payables 311 5.8 968.592.144 1.699.255.406
Short-term prepayments from customers 312 18.480.000 2.876.225
Taxes and other payables to State Budget 313 5.9 421.352.109 332.867.322
Payables to employees 314 378.521.761 283.873.959
Short-term accrued expenses 315 5.10 116.577.966 42.243.531
Other short-term payables 319 5.11a 1.474.960.416 6.495.000
Long-term liabilities 330 429.493.548 -
Other long-term payables 337 5.11b 429.493.548 -

OWNERS’ EQUITY 400 3.877.317.878 6.961.837.018
Owner’s equity 410 5.12 3.877.317.878 6.961.837.018
Contributions from owners 411 26.000.000.000 30.000.000.000
Undistributed post-tax profits 421 (22.122.682.122) (23.038.162.982)
- Undistributed post-tax profits accumulated
421a
by the end of the previous period (23.038.162.982) (21.500.331.688)
- Undistributed post-tax profits of current
421b
period 915.480.860 (1.537.831.294)
TOTAL 440 7.685.295.822 9.329.448.461
Ho Chi Minh City, February 2020
PREPAPER CHIEF ACCOUNTANT GENERAL DIRECTOR
Mai Duc Bao
INCOME STATEMENT
The fiscal year ended December 31, 2019 Currency unit: VND
ITEMS Code Note 2019 2018
Revenue of goods and services 01 6.1 24.162.124.749 21.123.280.348

Sale deductions 02 - -
Net sales from provision of goods or
services 10 6.1 24.162.124.749 21.123.280.348
Costs of goods sold 11 6.2 13.136.068.340 11.382.814.992
Gross profit/loss 20 11.026.056.409 9.740.465.356
Financial income 21 6.3 3.419.697 1.813.809
Financial expenses 22 - 3.240.000
In which: Loan interest expenses 23 - -
Selling expenses 25 6.4 7.771.385.101 10.265.738.465
Administrative overheads 26 6.5 2.501.571.315 1.213.179.023
Net operating profit 30 756.519.690 (1.739.878.323)
Other income 31 6.6 158.961.268 202.050.644
Other expenses 32 98 3.615
Other profit 40 158.961.170 202.047.029
Total accounting profit/(loss) before tax 50 915.480.860 (1.537.831.294)
Current corporate income tax 51 6.8 - -
Deferred corporate income tax 52 - -
Profit/(loss) after tax 60 915.480.860 (1.537.831.294)
Mai Duc Bao
CASH FLOW STATEMENT (Indirect method)

The fiscal year ended 31 December 2019 Currency unit: VND
ITEMS Code 2019 2018
CASH FLOWS FROM OPERATING ACTIVITIES

Earning before tax 01 915.480.860 (1.537.831.294)
Adjustments for items
- Depreciation and investment real estate 02 1.043.340.795 2.172.636.855
- Gains and losses from investment activities 05 (3.419.697) (1.813.809)
Profit from operating activities before changes in
working capital 08 1.955.401.958 632.991.752
- Increase or decrease in receivables 09 9.170.592 5.700.514.792
- Increase or decrease in inventories 10 (816.689) (69.307.180)
- Increase or decrease in payables (excluding
interest payable, income taxes payable enterprise) 11 (2.559.633.499) (296.854.315)
- Increase or decrease the prepaid expenses 12 68.551.951 21.683.095
Net cash flow from operating activities 20 (527.325.687) 5.989.028.144
CASH FLOWS FROM INVESTING ACTIVITIES
Expenditures for purchase, construction of fixed
assets and other long-term assets 21 (4.203.351.942) (79.051.650)
Sums received from loan interest, dividends and
profits shared 27 3.419.697 1.813.809
Net cash flow from investment 30 (4.199.932.245) (77.237.841)
CASH FLOWS FROM FINANCING ACTIVITIES
Net cash flow from financial activities 40 - -
NET CASH FLOWS IN THE PERIOD 50 (4.727.257.932) 5.911.790.303
Cash and cash equivalents at beginning of
period 60 6.865.825.853 954.035.550
Influence of exchange rate changes in foreign
currency conversion 61 - -
Cash and cash equivalents at the end of the
period 70 2.138.567.921 6.865.825.853
Mai Duc Bao
NOTES TO THE SEPARATE FINANCIAL STATEMENTS

1 OPERATION FEATURES
Structure of ownership
MAIC Restaurant Company Limited (hereinafter called "the Company") has been operating
in accordance with the Business Registration Certificate No.0310000345 first issued on 15
June 2010, the latest amendment (7th) on 31 July 2019 issued by the Department of
Planning and Investment of Ho Chi Minh City.
Legal capital of the company on 31 December 2019 is VND 26.000.000.000.
Main operations
Main operations:
- Restaurants and mobile food service activities. Detail: Restaurant;
- Wholesale of food;
- Provision of food services based on contractual arrangements with the customer;
- Beverage serving activities (except taverns and bars);
- Retail sale of tobacco products in specialized stores (according to Decision No.
64/2009/QD-UBND issued on 31 July 2009 and Decision No.79/2009/QD-UBND issued
on 17 October 2009 by People’s Committee of Ho Chi Minh City about zoning
agricultural and food bussiness in Ho Chi Minh City);
- Retail sale of beverages in specialized stores.
During the fiscal year ended at 31 December 2019, restaurants and mobile food service
activities affect the financial position and results of operations of the Company.
Normal operating cycle

Company’s normal operating cycle is generally within 12 months.
Company structure
The Company head office is located at 107 Ton Dat Tien, Tan Phu Ward, 7 Ward, Ho Chi
Minh City, Viet Nam.
Company’s sub unit until 31 December 2019 is:
Name Address
Boo Ma Rang Restaurant 107 Ton Dat Tien, Tan Phu Ward, 7 Ward, Ho Chi Minh
Single Share-holder City, Viet Nam
Limited Company
These notes form an integral part of and should be read in conjunction with the accompanying Financial Statements 11
NOTES TO THE SEPARATE FINANCIAL STATEMENTS (Cont.)

2 BASICS OF PREPARATION
Statement of compliance
The Company complies with the Vietnamese Accounting System for Enterprises issued
under Circular No. 200/2014/TT-BTC on 22 December 2014 by the Minister of Finance,
and Circular No. 53/2016/TT-BTC on 21 March 2016 providing Amendments and
Supplements to certain articles in Circular No. 200/2014/TTBTC on the Vietnamese
Accounting System for Enterprise.
3 FISCAL YEAR AND STANDARD CURRENCY USED IN ACCOUNTING

The fiscal year of the Company is from 01 January of a calendar year to 31 December of
the following year.
The standard currency unit used is Vietnam Dong (VND).
4 ACCOUNTING POLICIES
The accounting policies applied in the presentation of these financial statements are
consistent with the accounting policies applied to present the financial statements for the
year ended 31 December 2018 of the Company.
4.1. Accounting convention

The preparation and presentation of the financial statements for the year ended 31
December 2019 of the Company are in accordance with Vietnamese Accounting
Standards, the Board of General Directors' estimates and assumptions that affect to the
report of amounts of assets, liabilities at the end of the fiscal year and revenues and
expenses throughout the fiscal year. Actual results may be different from estimates and
assumptions of the Board of General Directors.
4.2. Cash and cash equivalents

Cash includes cash on hand and cash in bank (demand deposits).
Cash equivalents include short-term investments of which the due dates cannot exceed 3
months from the dates of the investments and the convertibility into cash is easy, and which
do not have a lot of risks in the conversion into cash.
4.3. Foreign currency transactions

Transactions in currencies other than Vietnam dong (VND) are translated into VND at the
actual exchange rates ruling at the date of the transaction. Foreign exchange differences
arising in the fiscal year are included in financial expenses or revenue in the financial year
The difference in the issue price will be revalued at the balance sheet date, which is
recorded as a detailed account or a revenue account in the fiscal year.

4.4. Trade receivables and other receivables

Trade receivables and other receivables are presented in the Financial Statements at the
carrying amounts due from customers of the Company and other receivables plus provision
for bad debts. At the time of reporting:
- Receivables with a recovery period of less than 1 year (or within a manufacturing
business cycle) are classified as short-term assets;
- Receivables with a recovery period of more than one year (or out of a manufacturing
business cycle) are classified as long-term assets;
The provision for doubtful debts represents the estimated loss due to non-payment arising
on receivables outstanding at the end of the fiscal year.
Provision for bad receivable debts means the provision for the lost value of overdue
receivable debts and undue receivable debts which are likely to become possibly
irrecoverable due to insolvency of debtors. (Do not include customers with accounts that
are overdue but are making payments or have committed to pay in the near future).
4.5. Inventories
Inventories are valued according to their original prices. Where the net realizable value is
lower than the original price, they must be valued according to the net realizable value.
The original price of inventories consists of the purchasing cost, processing cost and other
directly-related costs incurred for having the inventories stored in the present place and
conditions.
Net realizable value is measured by the estimated selling price of inventories in a normal
production and business period minus (-) the estimated cost for completing the products
and the estimated cost needed for their consumption.
The Company uses periodic inventory system to record the inventories :
- Raw materials inventory Weighted average method
- Work in process Cost of materials actual using
4.6. Fixed assets and depreciation

Fixed assets are stated at cost less accumulated depreciation.
Tangible fixed assets

Historical costs of purchased tangible fixed assets include: purchase prices (deducted from
trade discounts or rebates), taxes (excluding refundable taxes) and any directly-attributable
expenses of putting such assets into ready-for-use state, such as site preparation, initial
delivery and material handling, installation or testing costs (deducted (-) from any
recoverable values on products or scraps from testing), professional fees and any other
directly-attributable expenses. The interest cost from loans for purchase of completed fixed
assets (fixed assets available for immediate use without construction investment) shall not
be capitalized on historical costs of fixed assets.
Tangible fixed asset depreciation is estimated on a straight-line method, which applied to
all tangible fixed assets with calculated depreciation rate, attributed over their estimated
useful lives, in accordance with Circular No. 45/2013/TT-BTC of April 25, 2013, guiding

regulation on management, use and depreciation of fixed assets; Circular No.

147/2016/TT-BTC dated October 13, 2016 on amending and supplementing some articles
of Circular No. 45/2013/TT/BCT dated April 25, 2013 of the Ministry of Finance guiding
regulation on management, use and depreciation of fixed assets and Circular No.
28/2017/TT-BTC to amend and supplement a number of articles of Circular No.
45/2013/TT-BTC dated April 25, 2013 and Circular No. 147/2016/TT-BTC dated 13 October
2016 guiding on management, use and depreciation of fixed assets.
The tangible fixed asset depreciation years applied are as follows:
- Building and structures 08 years
- Machinery and equipment 07 - 08 years
- Vehicles 03 years
- Office and adminstrative equipments 05 - 08 years
Intangible fixed assets
The costs of purchased intangible fixed assets comprise their purchase prices and any
directly attributable costs of bringing the assets to their working condition and location for
their intended use. Expenditures on upgrading intangible fixed assets are capitalized as an
additional cost of intangible fixed assets; while expenditures on maintenance and repair are
charged to the income statement. When intangible fixed assets are sold or disposed, their
cost and accumulated amortization are removed from the balance sheet and any gain or
loss resulting from their disposal is recognized as income or expense in the income
statement.
Intangible fixed assets are amortized using the straight-line method, applicable for all
intangible assets at the rate to be calculated to allocate the cost over estimated useful lives
in accordance with Circular No. 45/2013/TT-BTC dated 25 April 2013 issued by the Ministry
of Finance guiding the management, use and depreciation/ amortization of fixed assets.
Circular No. 147/2017/TT-BTC dated 13 October 2017 amending and supplementing a
number of articles of Circular No. 45/2013/TT-BTC.
The depreciation period for intangible fixed assets of the company is as follows:
- Software 08 years
4.7. Prepaid expenses

Prepaid expenses comprise small tools, spare parts and net book value of assets ineligible
for the primary price of fixed assets and prepaid land lease expenses. They are allocated
over the period for which the amounts are paid or the period in which economic benefits is
generated in relation to these expenses.
4.8. Payables
Payables presented in the Separate Financial Statements under the book value of the
Company’s trade payables and other payables, which are monitored Separately for each
object. At the time of reporting, if:
- The remaining payment term is within 1 year (or within a normal operating cycle), the
receivable is classified as Current liabilities;
- The remaining recovery term is more than 1 year (or more than a normal operating
cycle), the receivable is payment as Long-term liabilities.

4.9. Accrued expenses

Accrued expenses include expenses which are charged to the income statement for the
fiscal year but not yet paid to help avoid the fluctuation of operating cost and comply with
matching principle. When expenses incur, if there is any difference from the amounts
previously accrued, those expense shall be increased or decreased by the corresponding
amount.
4.10. Owners’ equity

Owners’ equity is recognized according to the actual capital contributed by the owners.
Funds are extracted and used in accordance with the articles of association of the Company.
4.11. Revenues
Doanh thu được ghi nhận khi kết quả giao dịch được xác định một cách đáng tin cậy và
Công ty có khả năng thu được lợi ích kinh tế từ giao dịch này.
(i) Revenue from services provided is recognized when significant risks and rewards of
ownership of the goods have passed to the buyer, which coincides with the delivery of
goods and acceptance by customers.
(ii) Financial income includes incomes from bank interest, borrowings interest, gain from
foreign exchange difference and other financial income. Interest income is recognized on
an accrual basis, using the effective interest method.
4.12. Taxes
Value added tax (VAT):
The remaining domestic services are subject to a tax rate of 10%.
Corporate Income Tax (CIT):

The Company's income is taxed at a CIT rate of 20%.
Corporate income tax ("CIT") during the year, if any, includes current income tax and
deferred income tax.
Current income tax is the tax charged on a taxable income for the year, using tax rates
enacted in the financial year. Taxable income differs from accounting profit due to the
adjustment of temporary differences between tax accounting and financial accounting, as
well as adjustments of non-taxable or non-taxable income or expenses or nondeductible.
Deferred tax is the amount of enterprise income tax payable or receivable in respect of the
temporary difference between the carrying amount of assets and liabilities for financial
reporting purposes and the amounts used for taxation purposes. Deferred tax liabilities are
recognized for all taxable temporary differences. Deferred tax assets are recognized only to
the extent that it is probable that future taxable profits will be available against which
deductible temporary differences can be deductible.
Other taxes: According to current regulations of Vietnam.

4.13. Related parties

The disclosure of relationships with related parties and transactions between related parties
is conducted in accordance with Vietnamese Accounting Standard No. 26 "Related Party
Information" issued and published. Decision No. 234/2003 / QD-BTC dated December 31,
2003 of the Minister of Finance and Circular 161/2007/TT-BTC guiding the implementation
of sixteen (16) accounting standards issued under Decision No. 149/2001/QD-BTC of
December 31, 2001, Decision No. 165/2002/QD-BTC of December 31, 2002 and Decision
No. 234/2003/QD-BTC of December 30, 2003 issued by the Minister of Finance on 31
December 2007, specifically:
Related parties are considered to be related if one party has the ability to control the other
party or exercise significant influence over the other party in the decision-making process of
the financial and operating policies. Related parties are parties to the following
transactions: Entities - including parent companies, subsidiaries, associates - individuals,
directly or indirectly through one or more intermediaries, have control over the Company.
Under the control of the Company, or jointly control the Company. Associates, individuals
directly or indirectly voting on the voting power of the Company that gives them significant
influence over the enterprise, key management personnel such as the Board of General
Directors and officers of the Company, the close family members of these individuals or
affiliates or associates with these individuals are also referred to related parties.
In considering the relationship of each related parties, the nature of the relationship is noted
rather than the legal form.
5 ADDITIONAL INFORMATION ON THE ITEMS OF THE BALANCE SHEET
5.1 Cash and cash equivalents

31/12/2019 01/01/2019
(VND) (VND)
Cash on hand 114.738.622 5.881.209.530
Cash in bank 1.929.268.074 882.002.946
Cash in transit 94.561.225 102.613.377
Total 2.138.567.921 6.865.825.853
5.2 Short-term prepayments to suppliers

31/12/2019 01/01/2019
(VND) (VND)
- Mai Nguyen Joint Stock Company (*) 26.352.000 -
- Other suppliers 22.500.000 3.750.000
Total 48.852.000 3.750.000
(*) Related party.

5.3 Other receivables

a. Other short-term receivables
31/12/2019 01/01/2019
(VND) (VND)
Value Provision Value Provision
- Advances - - 19.010.000 -
- Short-term collateral &
deposit 10.774.000 - 15.774.000 -
- Other recievables 3.810.750 - 45.833.330
Total 14.584.750 - 80.617.330 -
b. Other long-term receivables

31/12/2019 01/01/2019
(VND) (VND)
Value Provision Value Provision
Long-term collateral &
deposit 903.291.075 - 903.291.075 -
Phu My Hung
Development Company
Limited (i) 903.291.075 903.291.075
Total 903.291.075 - 903.291.075 -
(i) The deposit from Renting Contract No.PMH/CR2/03,04 on 01 May 2010.
5.4 Inventories
31/12/2019 01/01/2019
(VND) (VND)
Historical cost Provision Historical cost Provision
Raw materials 411.307.458 - 425.994.681 -
Work in process 23.302.766 - 7.798.854 -
Total 434.610.224 - 433.793.535 -
5.5 Prepaid expenses

a. Short-term prepaid expenses
Increase during Allocation during
01/01/2019 the year the year 31/12/2019
(VND) (VND) (VND) (VND)
External service
expense 60.456.999 82.505.568 (108.025.356) 34.937.211
Instrument &
tools using 155.086.008 243.215.193 (253.780.484) 144.520.717
Total 215.543.007 325.720.761 (361.805.840) 179.457.928

b. Long-term prepaid expenses

Increase during Allocation during
01/01/2019 the year the year 31/12/2019
(VND) (VND) (VND) (VND)
External service
expense 26.375.979 2.644.545 (25.740.191) 3.280.333
Instrument &
tools using 19.554.165 - (9.371.226) 10.182.939
Total 45.930.144 2.644.545 (35.111.417) 13.463.272
5.6 Increases/decreases oftangible fixed assets
Machinery Office and

Buildings and and adminstrative
structures equipment Vehicles equipments Cộng
Historical costs
01/01/2019 14.287.145.136 3.095.158.843 - 217.833.810 17.600.137.789
Increase during the
year - - 3.933.215.579 270.136.363 4.203.351.942
31/12/2019 14.287.145.136 3.095.158.843 3.933.215.579 487.970.173 21.803.489.731
In which:
- Fully depreciated
assets but being still in
use 14.287.145.136 2.918.017.934 - 138.782.160 17.343.945.230
Depreciation
01/01/2019 13.782.021.714 2.894.260.353 - 150.639.912 16.826.921.979
Increase during the
year 505.123.422 148.053.539 324.243.577 65.158.562 1.042.579.100
31/12/2019 14.287.145.136 3.042.313.892 324.243.577 215.798.474 17.869.501.079
Net book values
01/01/2019 505.123.422 200.898.490 - 67.193.898 773.215.810
31/12/2019 - 52.844.951 3.608.972.002 272.171.699 3.933.988.652
5.7 Increase/decreases of intangible fixed assets

Softwares
Historical costs Depreciation Net book values

01/01/2019 137.848.872 137.087.177 761.695
Increase during the year - 761.695
Decrease during the year - -
31/12/2019 137.848.872 137.848.872 -
At the end of fiscal year, Intagible fixed assets are fully depriciated but being still in use.

5.8 Short-term supplier payables

31/12/2019 01/01/2019
(VND) (VND)
Capable Capable
payment payment
Original cost amount Original cost amount
- Ngoc Suong Company
Limited 149.367.030 149.367.030 478.091.200 478.091.200
- Xuan Tho Food
Company Limited 100.467.000 100.467.000 97.993.000 97.993.000
- Dai Tan Viet Joint
Stock Company 85.455.122 85.455.122 89.626.188 89.626.188
- Hao Private Enterprise 76.033.750 76.033.750 100.999.500 100.999.500
- Nguyen Ha Food
Company Limited 72.993.541 72.993.541 118.930.644 118.930.644
- Phu My Hung
Development
Company Limited - - 447.923.423 447.923.423
- Other suppliers 484.275.701 484.275.701 365.691.451 365.691.451
Total 968.592.144 968.592.144 1.699.255.406 1.699.255.406
5.9 Taxes and other payables to the State Budget

31/12/2019 01/01/2019
(VND) (VND)
Capable Capable
payment payment
Original cost amount Original cost amount
- VAT on local sales 395.752.853 395.752.853 314.788.354 314.788.354
- Personal income tax 25.599.256 25.599.256 18.078.968 18.078.968
Total 421.352.109 421.352.109 332.867.322 332.867.322
Situation of fluctuation of Taxes and other obligations to the State Budget as follows
01/01/2019 Incurred during the year 31/12/2019
(VND) (VND) (VND)
Amount Amount Amount Amount Amount Amount
payable receivable payable receivable payable receivable
VAT on local sales 314.788.354 - 1.388.259.597 (1.307.295.098) 395.752.853 -
Personal income tax 18.078.968 - 108.889.742 (101.369.454) 25.599.256 -
Other taxes - - 3.000.000 (3.000.000) - -
Total 332.867.322 - 1.500.149.339 (1.411.664.552) 421.352.109 -
The Company's tax finalizations are subject to examination by the tax authorities. Since the
application of tax laws and regulations to a variety of transactions can be explained in
different ways, the amounts reported in the Financial Statements are subject to change at
the discretion of the regulator.

5.10 Short-term accrued expenses

31/12/2019 01/01/2019
(VND) (VND)
External service expense 116.577.966 42.243.531
Total 116.577.966 42.243.531
5.11 Other payables

a. Other short-term payables
31/12/2019 01/01/2019
(VND) (VND)
Other payables related parties 1.468.465.416 -
- Mr. Mai Duc Bao 1.468.465.416 -
Other payables third parties 6.495.000 6.495.000
- Other payables to the external parties 6.495.000 6.495.000
Total 1.474.960.416 6.495.000
b. Other long-term Payables

31/12/2019 01/01/2019
(VND) (VND)
Short-term receving deposits 429.493.548 -
- An Gia Thinh Food Trading Joint Stock
Company(i) 429.493.548 -
Cộng 429.493.548 -
(i) The receving deposit from Business Cooperation Contract No.01/2019/HTKD and
Tripartite Contract about transferring Bussiness Cooperation Contract No.01/19-HĐCG on
01 August 2019.
5.12 Owner’s equity

Statement of fluctuations in owner’s equity
Retained
Owner’s capital earning Total
(VND) (VND) (VND)
01/01/2018 30.000.000.000 (21.500.331.688) 8.499.668.312
Lost during the year - (1.537.831.294) (1.537.831.294)
31/12/2018 30.000.000.000 (23.038.162.982) 6.961.837.018
01/01/2019 30.000.000.000 (23.038.162.982) 6.961.837.018

Decreased capital during the
year (4.000.000.000) (4.000.000.000)
Profit during the year - 915.480.860 915.480.860
31/12/2019 26.000.000.000 (22.122.682.122) 3.877.317.878

Capital transactions with owners and distribution of dividends, profits

2019 2018
(VND) (VND)
Owners’ equity
Beginning balance 30.000.000.000 30.000.000.000
Increases during the year - -
Decreases during the year (4.000.000.000) -
Ending balance 26.000.000.000 30.000.000.000
Dividend, profit that distributed - -
Details owner’s equity:

31/12/2019
Percent of
Shareholders Investment investment
MAIC F&B Joint Stock Company 25.740.000.000 99,00%
Mai Duc Bao - 0,00%
Nguyen Trinh Hien 260.000.000 1,00%
Total 26.000.000.000 100,00%
6 ADDITIONAL INFORMANTION ON THE ITEMS OF THE INCOME STATEMENT

6.1. Revenue of goods and services
2019 2018
(VND) (VND)
Total revenues 24.162.124.749 21.123.280.348
Revenue from restaurant 24.162.124.749 21.123.280.348
Net revenues 24.162.124.749 21.123.280.348
6.2. Cost of goods sold and services provided

2019 2018
(VND) (VND)
Cost of services provided at restaurant 13.136.068.340 11.382.814.992
Total 13.136.068.340 11.382.814.992
(*) Details
2019 Năm 2018
(VND) (VND)
Direct materials cost 8.234.221.989 7.984.575.906
Direct labour cost 3.428.499.638 3.080.997.378
General overhead cost: 1.473.346.713 317.241.708
+ Instrument & tools 174.703.654 317.241.708
+ Depreciation expense 1.298.643.059 -
Cost of services provided 13.136.068.340 11.382.814.992

6.3. Finance income

2019 2018
(VND) (VND)
Bank deposit interest 3.419.697 1.633.809
Gains on foreign exchange - 180.000
Total 3.419.697 1.813.809
6.4. Selling Expenses

2019 2018
(VND) (VND)
Expenses for employees 1.622.799.971 2.057.234.078
Materials expense 219.786.026 262.808.002
Depreciation of fixed assets 543.631.869 1.838.164.035
External service rendered 5.347.061.418 6.079.475.004
Other expenses 38.105.817 28.057.346
Total 7.771.385.101 10.265.738.465
6.5. Administrative overheads
2019 2018
(VND) (VND)
Expenses for employees 1.763.950.945 888.748.438
Stationery & Office Supplies 12.822.440 18.275.266
Tax and fees 325.005.272 17.231.112
Provisions 7.944.514 (13.783.030)
External service rendered 190.058.438 229.194.383
Other expenses 201.789.706 73.512.854
Total 2.501.571.315 1.213.179.023
6.6. Other incomes
2019 2018
(VND) (VND)
Incomes from selling equipments 19.090.909 -
Income from selling supports and bonus
from suppliers 121.920.719 200.560.741
Other incomes 17.949.640 1.489.903
Total 158.961.268 202.050.644
6.7. Cost for production business in elements

Năm 2019 Năm 2018
(VND) (VND)
Materials expenses 8.234.221.989 7.984.575.906
Tool and instrument expenses 232.608.466 281.083.268
Labour expenses 6.815.250.554 6.026.979.894
Depriciation expenses 1.043.340.795 2.172.636.855
External services expenses 6.835.762.915 6.308.669.387
Other expenses 247.840.037 87.787.170
Total 23.409.024.756 22.861.732.480

6.8. Current corporate income tax

2019 2018
(VND) (VND)
Tax expenses in respect of the current
year taxable profit - -
Total - -
Estimated current corporate income tax during this period is as follows:
2019 2018
(VND) (VND)
Total accounting profit before tax 915.480.860 (1.537.831.294)
Increase/(decrease) of accounting profit
to determine profit subject to corporate
income tax: (915.480.860) 1.003.614
Increase adjustment 198.410.244 1.003.614
+ Unrealized loss from foreign exchange
difference, costs without invoice,
vouchers and penalties 198.410.244 1.003.614
Decrease adjustment (1.113.891.104) -
+ Lost transfer from the past years (1.113.891.104) -
Taxable income - -
Corporation income tax rate 20% 20%
Current corporate taxable income - -
7 ADDITIONAL INFORMANTION ON THE ITEMS OF THE CASHFLOW STATEMENT

7.1. Non-money transactions
Non-money transactions during the year are:
2019
(VND)
Returning investment for shareholders by
clearing debts 4.000.000.000
8 OTHER INFORMATIONS
8.1. Contingent liabilities, Commitments and other financial information: None
8.2. Subsequent events

There has been no event from the date of the end of the year, December 31, 2019, which
have not considered for adjustments on the figures or the disclosures in the financial
statements.

8.3. Transactions with related parties and affiliate members

Transactions with affiliate members and related persons
Affiliate members and related persons are members of Board of members, General
Director, Chief Accountant and family-related to these persons.
Affiliate members incomes
2019
(VND)
Affiliate members incomes 448.119.661
Total 448.119.661
Transactions with affiliate members during fiscal year are:
Năm 2019
(VND)
Advances 5.531.534.584
Returning investment 4.000.000.000
At the end of the fiscal year, receivables, payables of the Company and affiliate members
are shown as follows:
31/12/2019 01/01/2019
(VND) (VND)
Other payables 1.468.465.416 -
Payables 1.468.465.416 -
Related parties
The parties are considered related parties if one party has the ability to control the other
party or exercise significant influence generated by the other party in financial decisions
and business, In the financial year and at the end of the financial year, the following are
identified as related parties of the Company:
Related Parties Relationship

- Maic F&B Joint Stock Company Holding company
- Nori Vietnam Company Limited Company in the same Group
- Mai Nguyen Joint Stock Company Company in the same Group
- Maic Interior and Construct Company Limited Company in the same Group
- Sitcomasia Vina Company Limited Company in the same Group
- Vietcomindo Company Limited Company in the same Group
- Viet First Telecom Company Limited Company in the same Group

Transactions with related parties

Transactions with related parties during fiscal year are:
2019
(VND)
Nori Vietnam Company Limited
Services provided 4.620.000
Mai Nguyen Joint Stock Company
Selling equiments 19.090.909
Renting e-mails, servers, consulting fees 103.011.401
Maic Interior and Construct Company Limited
Buying fixed assets, equiments 92.000.000
Sitcomasia Vina Company Limited
Vietcomindo Company Limited
Viet First Telecom Company Limited
Balances with related parties
At the end of the fiscal year, receivables, payables of the Company and related parties are
shown as follows:
31/12/2019 01/01/2019
(VND) (VND)
Prepayments to suppliers 26.352.000 -
Mai Nguyen Joint Stock Company 26.352.000 -
Recievebales 26.352.000 -
8.4. Comparative information

Comparative figures are the financial statements for the year ended 31 December 2018 of
the Company which have not been audited.
8.5. Going-concern information
There are no events that cause a great deal of suspicion about the possibility of continuing
operations and the Company has no intention or obligation to cease operations or
substantially reduce the scope of its activities.
Mai Duc Bao

Maic Restaurant Company Limited: Audited Financial Statements For The Fiscal Year Ended 31 December 2019

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MAIC RESTAURANT COMPANY LIMITED

Audited Financial Statements

1. Report of the Board of General Directors 2-4

2. Independent Auditor’s Report 5-6

3. Audited Financial Statements

- Balance sheet 7-8

- Cash flow statement 10

- Notes to Financial statements 11 - 25

REPORT OF THE BOARD OF GENERAL DIRECTORS

2. The Board of Directors and the Management

4. Financial position and business results

REPORT OF THE BOARD OF GENERAL DIRECTORS (Cont.)

7. Confirmation of the Board of General Directors

REPORT OF THE BOARD OF GENERAL DIRECTORS (Cont.)

8. Opinion of the Board of General Directors

Ho Chi Minh City, Dated February 2020

Mai Đuc Bao

INDEPENDENT AUDITOR’S REPORT

Kính gửi: SHAREHOLDERS, THE BOARD OF DIRECTORS AND THE MANAGEMENT

The Board of General Directors’ responsibility

For and on behalf ofPKF Vietnam Company Limited.

Truong Quang Trung Nguyen Thi Hoang Van

ASSETS Code Note 31/12/2019 01/01/2019

SHORT-TERM ASSETS 100 2.834.552.823 7.606.249.737

BALANCE SHEET (Cont.)

LIABILITIES AND OWNER’S EQUITY Code Note 31/12/2019 01/01/2019

LIABILITIES 300 3.807.977.944 2.367.611.443

TOTAL 440 7.685.295.822 9.329.448.461

Ho Chi Minh City, February 2020

PREPAPER CHIEF ACCOUNTANT GENERAL DIRECTOR

Mai Duc Bao

ITEMS Code Note 2019 2018

Revenue of goods and services 01 6.1 24.162.124.749 21.123.280.348

Ho Chi Minh City, February 2020

PREPAPER CHIEF ACCOUNTANT GENERAL DIRECTOR

Mai Duc Bao

CASH FLOW STATEMENT (Indirect method)

ITEMS Code 2019 2018

CASH FLOWS FROM OPERATING ACTIVITIES

Ho Chi Minh City, February 2020

PREPAPER CHIEF ACCOUNTANT GENERAL DIRECTOR

Mai Duc Bao

NOTES TO THE SEPARATE FINANCIAL STATEMENTS

Normal operating cycle

NOTES TO THE SEPARATE FINANCIAL STATEMENTS (Cont.)

3 FISCAL YEAR AND STANDARD CURRENCY USED IN ACCOUNTING

4.1. Accounting convention

4.2. Cash and cash equivalents

4.3. Foreign currency transactions

NOTES TO THE SEPARATE FINANCIAL STATEMENTS (Cont.)

4.4. Trade receivables and other receivables

4.6. Fixed assets and depreciation

Tangible fixed assets

NOTES TO THE SEPARATE FINANCIAL STATEMENTS (Cont.)

regulation on management, use and depreciation of fixed assets; Circular No.

4.7. Prepaid expenses

NOTES TO THE SEPARATE FINANCIAL STATEMENTS (Cont.)

4.9. Accrued expenses

4.10. Owners’ equity

Corporate Income Tax (CIT):

NOTES TO THE SEPARATE FINANCIAL STATEMENTS (Cont.)

4.13. Related parties

5 ADDITIONAL INFORMATION ON THE ITEMS OF THE BALANCE SHEET