STRENGTH

from the foundation

Our extensive experience, financial resources
and strong distribution channels are seen as core
strengths as well as the solid foundation for KIDO
growth & development in the future.

MARKETING

DISTRIBUTION
FI

AN
N

CIA
L R ES
OU
MAN RC
AG E
EM
S
EN
T
 CHAIRMANS STATEMENT
Our strong
financial position
Dear Shareholders,
combined, product
innovation and
T
he year 2016 marked our third consecutive
year of transition. Now, looking back on the
strong execution past few years, I am proud to report that we
have made significant progress in creating a new
platform remain the direction for our business.
core strengths
First, we successfully completed the Transformative
of KDC. Change which was about redefining, internally, how our
company operates and strengthening our platform for
growth. Building on our years of experience engaging
in the food business, we have been able to develop an
extraordinary range and depth of core competencies:
a deep understanding of what it means to orientate
a business around the customer, a relentless passion
about developing talent from within, and an effective
management who can lead through complex
operating environment with great team work.
Secondly, we embarked on an evolutionary change
which was about building business with unserved
or underserved customers under the simple, over-
arching Food & Flavor theme. This was achieved
through a channel-focused strategy in which organic
and inorganic initiatives were deployed. More
specifically, after over a decade of nurturing our ice
cream and yogurt business, we have been able to
develop a complete end-to-end cold chain system
that does not only help us dominate the ice cream
market but also allow us to extend into the frozen food
sector where Vietnamese customers are now coming
to realize the benefits of consuming readily available
frozen food. At the same time, we also strengthened
our position in the packaged food category through
the acquisitions of Tuong An (TAC) and Vocarimex
(VOC) - both top-tier edible oil companies in Vietnam.
KIDO GROUP
www.kdc.vn ANNUAL REPORT 2016
The successful evolution of ours were founded on a
disciplined approach of seeking opportunities for value-
enhancing growth and cost optimization through
capital investments. Our strong financial position
combined, product innovation and strong execution
platform remain the core strengths of KDC as well as the
primary source of my confidence in our future.
As I mentioned back in 2015, our strategic
orientation of moving towards a food conglomerate
inspired our strategic choice - shifting from Value
Conversation to Value Creation. This starts with
putting consumers at the heart of our operational
focus and revolves around realigning our channel
to deliver the right products to the right customers
in the right place at the right time. Being able
to do this will allow us to maximize value to our
shareholders. We measure our commitment to
shareholder value through total shareholder
return. This requires sales growth, margin
improvement, and increased asset efficiency.
We are making significant progress. By the end
of fiscal 2016, we managed to deliver over VND
2,238 billion in group sales, which is 24.3% ahead
of our initial target. We were also able to deliver a
1.7% improvement in gross margin of our frozen
food business. While these results are promising,
we know we can do more. Our business units will
be guided by disciplined strategies and operating
plans that focus on the most important choices for
creating value, ensuring that the optimum balance
is struck between short-term return and long-term
growth. We are committed to doing what it takes
to deliver our shareholders consistent, reliable and
sustainable returns over the long-run.
INTRODUCTION 6 7
 CHAIRMANS STATEMENT

The last few years have seen us successfully navigate It is clear that combining the two
through evolutionary changes, presenting us with businesses under one group creates
significant strategic optionality. We have expertise one of the largest consumer goods
and capital, both human and financial, which can be
companies in Vietnam and allows us to
leveraged beyond Vietnam, in different categories
of consumer products and through different realize our ambition to dominate the
channels. The development of these opportunities Vietnamese kitchens, from REFRIGERATORS
is truly fundamental to our long-term growth. With to cupboards.
the combination of our existing business and new
acquisitions, we have now secured the right scale
within two distinct distribution channels - frozen/
chilled and packaged.

In the frozen food business, while sustaining our Therefore, we have put forward what we term
leading position in the ice cream market, we Designing for Success which lays the foundation
have opportunities to build scale across adjacent of integrating the many different pathways across
categories. In the packaged food business, we the group and aligning both people and processes
are well-positioned to lead the edible oil market in preparation for sustainable growth. It is all this,
through a well-balanced product portfolio and taken together, that fuels my confidence in our
strong platform, driven by focused investments in companys future.
innovation and execution. It is clear that combining
the two businesses under one group creates the On behalf of the Board, I want to once again thank
potential for us to be one of the largest consumer you for another year of support and commitment. I
goods companies in Vietnam and allows us to realize want to especially thank our stakeholders, including
our ambition to dominate the Vietnamese kitchens, the consumer of our products, our business
from refrigerators to cupboards. More broadly, our partners, our team and our investors for their
goal is to fill our channels with a larger range of unwavering support of our Group. This support
products and provide the consumers with healthier, has emboldened us with confidence to continue
more nutritious, and more convenient choices. to execute the Food & Flavor strategy. We wish you

all a healthy and prosperous new year and look
In pursuing our goals, the most important resource forward to working with you all.
we have is our people. They are the ones who work
to anticipate and meet the needs of customers.
They bring tremendous experience and expertise
to every part of our business. They are committed
to win and they share the drive to create an impact Tran Kim Thanh
on consumers, which not only contributes to our Group Chairman
success but makes our company what it is. Through
the acquisition of TAC and VOC, our family has grown
larger in size and wider in experience; making us
much stronger and all the more passionate. While it
has been a demanding year and will continue to be
so as we integrate the different cultures and business
practices under one group, our future growth
continues to rely on our scale and agility, driven
by our talented team of professionals to design
processes and relationships to grow the business.

KIDO GROUP
www.kdc.vn ANNUAL REPORT 2016 INTRODUCTION 8 9
 vision mission

more flavor
to life
Create lifes flavors through
wholesome, healthy, and nutritious
products and be the most recognized
company in Vietnam and South East Asia
by all stakeholders.
CONSUMERS
To identify and produce affordable food, snacks, and beverages
to meet daily needs of consumers. Our products are pioneering,
market leading, healthy, satisfying and conveniently available to
our consumers.
PARTNERS
To create sustainable value for supply chain partners through
innovative food products that address consumer demand trends
and exceed their expectations. We aim to provide equitable
returns for all and contribute sustainable development.

To nurture and develop the skills and capabilities of our people

PEOPLE
to meet the professional demands of their work and satisfy their
personal needs. In this way we create a KIDO family that is home
to dynamic, creative, and innovative people. KIDO aims to be the
company that elevates an individuals ambitions and professional
skills, through a corporate culture based on teamwork and
mutual enrichment.

To contribute to the communities in which we operate through

COMMUNITY
sponsorship programs and community development activities.
We aim to be a leader of progress for Vietnamese society. Our
impact is not only commercial but we also embrace social
responsibility.

To allocate capital with the goal of maximizing shareholder value

INVESTORS
over the long-term and to manage risk in order to give certainty
and confidence that investment in our business can achieve our
shareholders goals.

KIDO GROUP
www.kdc.vn ANNUAL REPORT 2016 INTRODUCTION 12 13
 WHAT WE ARE (3p)
(3P)
We have made inroads into Vietnams cooking oil industry with our strategic
investment in Vietnam Vegetable Oils Industry Corporation (Vocarimex), a
market leader in producing and trading oil-based products and Tuong An
(TAC), the second-biggest cooking oil company in Vietnam. We are also the
leading ice cream business in Vietnam and continue to expand into frozen
food sector under KIDO Frozen Foods (KDF). Combined, this forms the basic
elements of who we are as an integrated consumer food company. While
the answer to who we are is as simple as that, what we are can have many
different answers. Over the years, we have defined ourselves in very simple
terms: People, Platform, Products. This has helped us navigate the dynamic
changes we have undergone internally and overcome the challenges of the
consumer markets externally. We continue to rely on our original definition,
which we believe has been and will continue to be the pillars of our success.

PEOPLE Centric Our business focuses on people. From the consumers we serve, to the team
that makes it all happen, to the business partners that support us, and to
the shareholders that invest with us. We believe in treating all stakeholders
consistently and with fairness. Having said that, our people is essential to our
success and is the core DNA that defines the Group. Having a good people
strategy is essential to our success. We have a strong mentorship mentality,
supporting the development of a whole new generation of leaders that will
PEOPLE begin to take on more independent and critical roles in the Group. We treat
Centric each of our senior managers as business owners and allow them to do what
is needed to create partnerships inside and outside the company to drive the
business forward.

Standardized PLATFORM In order to manage and integrate such a large range of business, we must
have well defined systems. The success of the business is defined by the
Standardized ability of teams to collaborate within companies and across the Group. This
PLATFORM requires clear procedures and intuitive processes that everyone can adopt and
understand when working together. This is made possible by our integrative
platform, which we have spent the 5 years perfecting. The organization
and operational platform serves to reinforce the culture of collaboration
and support the execution of strategy and initiatives that drive growth and
profitability.

Innovative
PRODUCTS
Innovative PRODUCTS Product capability is critical to our success and innovation is crucial to our
future. Our goal of dominating the kitchen of the Vietnamese consumer is
heavily dependent on us creating the right portfolio of products that meets the
dynamic demands of the consumer. We have leveraged our consumer insight
derived from the last two decades to create highly successful products and
brands. We are now driving one step further to design the right portfolio of the
products to deliver solutions and convenience to consumers. These products,
portfolios and brands are meant to be a reflection of our market knowledge and
also what we believe in: wholesome, healthy and nutritious products.

KIDO GROUP
www.kdc.vn ANNUAL REPORT 2016 INTRODUCTION 14 15
 BOARD OF
DIRECTORS
Mr. TRAN KIM THANH
Founder, Group Chairman
Mr. Thanh co-founded the KIDO Group (formerly Kinh
Do Corporation) and has been the key behind the
development strategy; leading KIDO to becoming
one of Vietnams largest food companies. He is a
veteran entrepreneur with a lifetime of experience in
management and business.
In addition to presiding over KIDO Groups board, Mr.
Thanh sits on various boards of other large Vietnamese
corporations, helping to contribute to the growth and
development of the private sector.
KIDO GROUP
www.kdc.vn ANNUAL REPORT 2016
Mr. TRAN LE NGUYEN
Co-Founder, Vice Chairman & Group CEO
An experienced entrepreneur with over 20 years of
experience in establishing and scaling profitable
businesses, Mr. Nguyen co-founded KIDO Group
(formerly Kinh Do Corporation). He has been
instrumental in the development of the business and
under his management, KIDO emerged as one of the
most well-known brands in Vietnam with a broad
portfolio of market dominating products that are the
best in their categories.
Mr. Nguyen is an active board director of the
Vietnam Chamber Commerce and Industry (VCCI)
and participates on the boards of several prominent
companies in Vietnam.
Ms. VUONG BUU LINH
Co-Founder, Board Director & Group Vice President
Ms. Linh is one of the founders and is currently a Board
Director and a Group Vice President of KIDO Group. She
led the Company through fast and solid expansion and
was part of the original team that helped build one of
the biggest food companies in Vietnam.
Ms. Linh oversees supply chain management and has
made substantial contributions in the development of
KIDO Group by managing costs, ensuring quality and
enhancing the Companys competitive advantage. Ms.
Linh was the primary architect in deploying the ERP
system by SAP in KIDO Group, effectively increasing the
Companys capability in making timely and accurate
decisions with the right information. In addition to her
contribution at KDC, Ms Linh is a experienced investor
in areas such as education.
Ms. VUONG NGOC XIEM
Co-Founder, Board Director & Group Vice President
Ms. Xiem is a co-founder of KIDO Group and is current
a Group Vice President. With more than 20 years of
experiences in managing retail chains and franchising
Kinh Do Bakery chain stores, she greatly contributed to
the Companys management and operation since the
very first day.
With her experience and hands-on approach, she
has been a key part of the management team and
contributed largely to the development of the
Company.
INTRODUCTION 16 17
 BOARD OF
DIRECTORS
Mr. WANG CHING HUA Mr. TRAN QUOC NGUYEN
Co-Founder, Board Director & Group Vice President Board Director, Group Vice President & CEO
of KIDO Frozen Food
Mr. Wang has over 23 years of experience in the food Mr. Nguyen has over 20 years of experience managing
manufacturing and processing industry and is one various companies within KIDO Group and is currently
of the original founders who helped set up KIDOs a Board Director and Group Vice President. He has held
manufacturing operations. various senior management positions throughout the
group and is currently the CEO of KIDO Frozen Food.
He has since helped develop the scale of KIDOs In this role, he has been critical to its expansion and
manufacturing footprint in Vietnam and currently is a development of the frozen food business. Mr. Nguyen
Group Vice President. was instrumental in the expansion of the product
portfolio from ice cream to include frozen foods, the
expansion of the distribution network to become the
number one frozen network in Vietnam and the driver
in creating two of Vietnams largest ice cream brands.
KIDO GROUP
www.kdc.vn ANNUAL REPORT 2016
Mr. NGUYEN GIA HUY CHUONG
Board Director
Mr. Chuong has been an independent
Board of Director at KIDO since 2013.
He holds a Master of Law at the
Law of Bristol (University of West
of England, the UK), specialized in
International Commercial Laws. He is
the co-founder of Phuoc & Partners,
being currently the Director cum
the Managing Partner of Phuoc and
Partners.
Mr. NGUYEN VAN THUAN
Board Director
Mr. Thuan is an independent
Board of Director at KIDO. He has
a Doctorate in Economics and is
currently the Dean of Taxation -
Customs department at University
of Finance - Marketing. He has over
31 years of experience as a lecturer
in the field of banking and finance.
Besides his academic work at Ho
Chi Minh Open University, he is also
a financial consultant and advisor
for many companies and foreign
organizations operating in Vietnam.
Mr. NGUYEN DUC TRI
Board Director
Mr. Tri has been an independent
Board of Directors of KIDO since
2013. He holds a PhD in Business
Management from Nanyang
Technological University - Singapore.
He has been working for a sugar
company under the Agricultural
Ministry and has taught at Trident
University (California, US), Faculty of
Economics - Risho University (Tokyo,
Japan), Ho Chi Minh Economic
University and other joint programs
in Vietnam. Since Sept 1st, 2016, he
has been appointed as Associate
Professor at Stenden University of
Applied Sciences, the Netherlands.
INTRODUCTION 18 19
 SUPERVISORY
BOARD

Mr. LUONG QUANG HIEN Ms. LUONG MY DUYEN Mr. VO LONG NGUYEN
Head of Supervisory Board Supervisory Board Member Supervisory Board Member

Mr. Hien has more than 16 years of
experience in finance, management,
and financial transactions. He
spent 13 years at KIDO between
1999 - 2011 during which he was
involved in financial management,
investor relations, and various M&A
transactions and restructuring
projects. In addition to his role in
the Supervisory Board of KIDO, Mr.
Hien sits on the boards of several
investment funds and companies
such as VEOF Fund, Savico, and
Tafoco.
Ms. Duyen has worked with KIDO
since 1993 and has held several key
positions, including Accountant,
Deputy Manager of the Accounting
Department and Chief Accountant
at KIDO. Since 2006, Ms. Duyen has
been the Chief Accountant at KIDO
Real Estate Joint Stock Company.
She holds a degree in Finance and
Accounting.
Mr. Nguyen holds a Bachelor of
Economics with a specialization
in Business Administration. He
is a certified Fund Manager with
a certificate issued by the State
Securities Commission of Vietnam.
He was one of first brokers of the
OTC market in Vietnam and has over
18 years of investment and finance
experience.

Mr. Hien is a graduate of Foreign

Trade University and holds an MBA
from Washington State University.

KIDO GROUP
www.kdc.vn ANNUAL REPORT 2016
 EXECUTIVE MANAGEMENT
COMMITTEE
Mr. KELLY WONG
Group CFO & Group Vice President
Mr. Wong has been with the KIDO group since 2011
and has held the post of Group CFO; managing the
Groups finance, accounting and investment activities.
He has lived and worked in Vietnam for over last
ten years in various finance roles. Mr. Wong holds a
Bachelors of Commerce degree from the University of
British Columbia in Vancouver, Canada and a Diploma
in Asia Pacific Management from the McRae Institute of
Management at Capilano University.
KIDO GROUP
www.kdc.vn ANNUAL REPORT 2016
Ms. NGUYEN THI XUAN LIEU
Group Vice President & General Director Vocarimex
Ms. Lieu is a Group Vice President and oversees the
cooking oil business as the General Director of Vietnam
Vegetable Oil Industry Corporation (Vocarimex). She
has over 30 years of work experience in the finance
and banking sector, with 21 years in senior positions at
Vietnam Bank for Industry and Trade.
Ms. Lieu graduated with honors from Ho Chi Minh
City University of Economics and has successfully
completed doctoral training at the school. In addition,
she was honored with the Certificate of Merit from the
Prime Minister in 2010 and 3rd rank Labor Medal of
Merit in 2012 among many others accolades.
Ms. NGUYEN THI HANH
Group Vice President
Ms. Hanh is a Group Vice President and also a board
member of Tuong An Vegtable Oil JSC. She has over 16
years of retail experiences and operations experience,
bringing a wealth of experience and commercial
know-how. Prior to joining KDC, Ms. Hanhs experience
ranged from roles as General Director at Saigon-Coop,
Chairwoman of the Board of Directors of SCID, Member
of the Board of Directors of Saigon Co-op FairPrice LLC,
and Member of the Board of Directors of Saigon Co-op
Mappletree LLC.
Through her various roles, Ms. Hanh has gained a
wealth of experience and reputation as a founding
figure in the Vietnamese retailing industry. Ms. Hanh
was granted with Vietnams second-class Labor Medal,
Vietnams Entrepreneur Award and Bong Hong Vang
Award.
Mr. MA THANH DANH
Group Vice President
Mr. Danh oversees risk management and the internal
control functions for the Group. He has over ten years
of experience in financial management, business
strategy, brand management consultancy and advisory
in mergers and acquisitions.
He holds a Bachelors of Science in Electrical
Engineering, a Degree in Business Administration from
the University of Economics, and a Masters of Business
Administration with a focus in International Business
Strategy and Brand Management from Belgium. Hes
also Chairman of CIB Consulting and Investment.
INTRODUCTION 22 23
 KEY PERFORMANCE
INDICATORS

OUR PROGRESS
Strategic: TSR provides a market-related measure of the Groups progress against our
objective of delivering long-term value for our shareholders. TSR measures
Total Shareholder the total return to KDCs shareholders, including both share price appreciation
Return and dividends paid.

Dividend-adjusted share pricing index (2012 = 100%)

% +320%
500.0
450.0
400.0
350.0
300.0
250.0
200.0
150.0
100.0
50.0
0.0
2012 2013 2014 2015 2016

KIDO Group Corporation (HOSE:KDC) - Dividiend Adjusted Share Pricing Source: Capital IQ

KIDO GROUP
www.kdc.vn ANNUAL REPORT 2016 STRATEGIC REPORT 26 27
 CHIEF EXECUTIVE
OFFICERS Letter
I am delighted to say
that underpinning
all of our drivers
of growth is the
strength and depth
of our leadership
team and quality of
people across the
Group.
KIDO GROUP
www.kdc.vn ANNUAL REPORT 2016
Dear Shareholders,
I
am pleased to have this opportunity to report on the past year,
during which we have taken some significant business decisions
in our transition into Food & Flavor. Looking at the wider context,
it has been clear for some time that we are seeing a reshaping of
the competitive environment. Expectations of KDC are changing
substantially as consumers embrace new trends, habits, and
lifestyles. We are on the brink of a societal transformation that will
be unlike anything we have experienced before in Vietnam.
Facing such uncertainty, it is more important than ever to stay
on course and remain committed to our strategy, driving short-
term performance while ensuring we make the right decisions to
deliver our long-term goals.
We took decisive steps to further our ambition to be one of
the largest food conglomerates in Vietnam. We began the year
continuing to grow our business organically with the Dai Gia
Dinh brands and were able to launch a series of additional oil
products into the market and progress in brand growth and
product penetration during the year. Towards the end of the
year, we completed the task on acquisition of TAC which will give
us a significant boost in the coming year and sets a clear path
forward in terms of our Food & Flavor strategy. Changes in VOC
are continuing to take shape and we are extremely pleased with
the teams hard work in delivering results. We expect to complete
the consolidation by the beginning of the 2Q2017. Combined,
we will now be one of the largest edible oil & fats companys in
Vietnam controlling over 30% of the market share directly.
These have laid the foundation for the future; a future in which we
will make sure that our capital and our human resources are put to
work where they benefit our customers most and as a result our
shareholders. Beyond the evolutionary changes of our business
and the integration of our packaged food business, we continue
to see strong underlying growth of our frozen foods business.
In 2016, we saw the business increase by 30.8%, driven by a
36.7% growth in ice cream, 11.7% growth in yogurts and the
entry of one of our first frozen food products. Revenue and
profitability reached all-time highs of VND1,397bn and VND143bn
respectively; representing a NPAT margin of 10.2%. Our market
share for ice cream continues to be strong with a leading
position of 35%. In anticipation of future growth, the frozen
food business inaugurated a brand new factory in the north of
Vietnam; completing the national production footprint we have
been targeting now for some time. This is critical to our continued
growth as we are now able to tackle the over-capacity issue in the
existing southern facility and unlock value-creating opportunities
through increased operating efficiencies.
With inclusion of all the businesses, there will be a significant
amount of re-alignment of resources that will need to happen in
the coming year. We will rely heavily on our three pillars People,
Platform and Product to ensure that the change management is
smooth. People, our biggest asset, will be the most critical thing we
get right. Our well established Platform will provide a frame work to
help integrate our new family members into our business processes.
Products alignment will also be critical in order to get efficiencies in
our portfolio and to ensure allocation of resources to the brands. In
addition, we have plans to continue down an aggressive path of new
product development which will have a significant impact on future
growth. Going forward, those three pillars will guide the formulation
of our growth strategy. Particularly, while we stay focused on our
existing markets, we also aim to expand to international markets,
seizing the opportunity to generate returns by using our skill and
scale in South-East Asian economies where consumption is robust
and economic outlooks are exciting, to build substantial market
positions. Fundamentally, our key initiatives of internationalization
will revolve around strategic partnerships and M&A activities. For the
foreseeable future, we are going to team up with our partners who
have complementary skills and experiences, enabling us to diversify
our product portfolio and improve our offer to our existing markets
so as to cater better to the needs of consumers. In addition, we are
also committed to disciplinarily pursuing strategic M&A transactions
which can help create market-access for our products and generate
profitable growth for the shareholders.
I am delighted to say that underpinning all of our drivers of
growth is the strength and depth of our leadership team and
quality of people across the Group. We have a collaborative work
environment and a mentorship culture where our colleagues are
encouraged to take risks and try new things. Thats why we call
the recent change evolutionary as we evolve by learning to be
better. Our people are a big part of this evolution and we value
their commitment and contribution to our success.
They will be a critical component in helping to integrate the
different business units and to seek efficiencies to improve the
quality of our profitability. Our executive committee draws on the
potential of the strongest, most experienced leaders within KDC,
complemented by some first-class external appointments in key
disciplines. I have no doubt that the team in place has the skills,
experience, creativity, and drive to deliver our strategic priorities. I
am therefore thankful for the contribution of our people for being
a part of our family.
Looking forward, I am confident that we are ready to tackle
whatever challenges lie ahead. The decisive action that we have
taken in the past year and the management changes which have
reinvigorated the KDC team have laid the ground for our future; a
future where we continue to pursue growth opportunities, both
organic and inorganic initiatives, to meet our strategic priority of
becoming a Food & Flavor business. As we embrace a new year, I
am confident about the companys growth prospects in the future
and have the utmost faith in our team and all the people who are
so dedicated to making KDC the unique entity that it is today.
Tran Le Nguyen
Group Chief Executive Officer
STRATEGIC REPORT 28 29
 CHIEF FINANCIAL
OFFICERS REVIEW

Vietnamese consumers continued to believe in a brighter

outlook for the economy as Vietnam surpassed the world
average and ranked as one of the top 10 most optimistic
countries in terms of consumer confidence index.

Vietnam managed
A
gainst the backdrop of geopolitical changes and global uncertainties,
the Vietnamese economy was relatively stable compared to the rest of
to grow at over the world. Vietnam managed to grow at over 6.0% in 2016 for the third
Our company operates in the fast moving consumer goods sector - a sector that
consecutive year. Manufacturing and service sectors remained key drivers,
6.0% in 2016 for the improving by 11.9% and 7.0% respectively. Agriculture was the weakest sector is subject to an array of different global pressure. Within Vietnam, we identify
two key forces that shape the landscape of our businesses. Rapid economic
growing at only 1.3% which was largely affected by unfavorable weather
third consecutive conditions. The Vietnamese Dong weakened by only 1.2% in 2016 compared development has led to the emergence of a new consumer class, particularly
in major urban centers, which has an interest in and can afford to participate in
year
to 5.0% in 2015. Trade balance ended the year at a surplus level of around
1.4% GDP after a long period of deficits since 2010. 12% modern consumption. This rise in purchasing power has triggered an increase
in consumer spending, which we expect to become more pronounced over
Globally, the year 2016 was wrought with challenges. The UKs surprising the next five years. In contrast to this, accelerating economic integration
vote to leave the European Union, (Brexit) roiled financial markets globally. has sent an influx of foreign brands into Vietnam, intensifying competition
The results were major volatility on the currency markets, where the GBP, EUR particularly in the urban centers. The top 25 Vietnamese FMCG companies
have a combined sales value of USD 14.8 billion, which represents a large
usd1.0 billion
and JPY all fell strongly against USD. The election of Donald Trump increases
the risks of rising protectionism which resulted in the USs withdrawal from and increasingly competitive landscape with the inclusion of more and more
the Trans-Pacific Partnership (TPP) which has put a damper on Vietnams The ice cream and frozen food sector foreign brands.
economic and trade prospects.

Commodity markets were also another victim of volatility. Oil prices witnessed
extreme fluctuations due to a combination of business cycles, geopolitical
factors, new field discoveries and technological changes. Unfavorable
weather conditions led to price hikes in sugar and raw milk, up by 10% and
50% respectively in 2016 compared to 2015. Palm oil prices also rose sharply
by 30%-40% during 2016 due to the decline in production following severe
droughts caused by El Nino and strong worldwide demand for vegetable oils.

Despite the macroeconomic challenges globally, Vietnams story remains

favorable. Lifting of restrictions on foreign investment will help attract further
FDI. Higher disposable income and increased urbanization are continuing to
create a growing consumer class, which supports growth in consumption.
Vietnamese consumers continued to believe in a brighter outlook for the
economy as Vietnam surpassed the world average and ranked as one of the
top 10 most optimistic countries in terms of consumer confidence index,
according to AC Nielsen.

KIDO GROUP
www.kdc.vn ANNUAL REPORT 2016 STRATEGIC REPORT 30 31
 CHIEF FINANCIAL
OFFICERS REVIEW

the ice cream, yogurt and frozen food sector continued to see
impressive growth of 12% over the 2014 - 2016 period, valued at
nearly USD1.0 Billion in 2016. Higher income and rising urbanization
are expected to drive consumption of indulgence (ice cream) and
convenience food (frozen products) in the future.

Against this dynamic and evolving economic landscape, our businesses

were shaped by a diverse set of dynamics. In terms of the edible oil markets,
the sector posted a y-o-y growth of 6.0% to reach over USD1.3 billion in
2016. Within oils and fats, the vegetable and seed oil remained the biggest
category, accounting for over 90% of the oil and fats category. We noted that
consumers in smaller cities and rural areas started to switch to vegetable and
seed oil versus then animal. Amongst the various products, olive oil enjoyed
the fastest growth thanks to increased consumers nutrition and health
consciousness. As there is still substantial room for improvement in per capita
consumption, the edible oil sector is set to maintain stable growth in the
medium and long term. Our current market position is strong and given the
large market share and portfolio of brands, we are well positioned to continue
to grow our business. The distribution capability of the Group will continue to
be a main competitive advantage; coupled with our marketing and branding
experience we will be able to leverage the acquisition of Vocarimex and
Tuong An in order to maintain steady growth.

Similarly, the ice cream, yogurt and frozen food sector continued to see
impressive growth of 12% over the 2014 - 2016 period, valued at nearly
USD1.0 billion in 2016. Higher income and rising urbanization are expected to
drive consumption of indulgence (ice cream) and convenience food (frozen
products) in the future. As growth potential of the sector proves to be large,
more competition is also expected enter the market. While domestic players
such us continued to lead sales in 2016, foreign companies like Unilever or
Nestle are increasingly pushing their presence in Vietnam through a wide range
of brands, especially in major cities such as Hanoi, Ho Chi Minh and Da Nang
where consumers have the highest purchasing power. Despite this, our leading
position continues to be secure as we have a several key advantages. The first
is our locally focused portfolio of products that have a high level of preference
with Vietnamese consumers. Second is our nation-wide distribution capability
for both chilled and frozen products that allows us to access a larger proportion
of the Vietnamese consumers through general trade.

KIDO GROUP
www.kdc.vn ANNUAL REPORT 2016
 CHIEF FINANCIAL
OFFICERS REVIEW
SPECIAL ITEMS
Meanwhile, apart from the sales of VND285 billion
from KDC-branded cooking oil products, the Group
also recorded over VND420 billion in sales by Tuong
An during the last month of 2016.
N
CAPITAL STRUCTURE
REVENUE et sales decreased by 28.7% from VND3,140 billion in 2015
to VND2,238 billion in 2016. On a like-for-like basis, net sales
increased by 43.2 %, driven by continued sales growth in
ice cream business and aided by significant contributions from
VND2,238 billion the addition of Tuong Ans cooking oil business which began
43,2%
in December 2016. Specifically, the ice cream and frozen food
business delivered VND1,400 billion to KDCs consolidated topline,
reflecting 30.7% annual growth. Meanwhile, apart from the sales
of VND285 billion from KDC-branded cooking oil products, the
Group also recorded over VND420 billion in sales by Tuong An
during the last month of 2016.
S
GROSS PROFIT imilarly, while gross profit, in absolute terms, decreased
from VND1,175 billion in 2015 to VND881 billion in 2016,
it grew sharply by 37.6 % if we exclude the effects of the
VND881 billion divested business lines. As a percentage of net sales, gross profit
37,6%
also improved by nearly 2% thanks to enhanced economies
of scale and efficiencies achieved by the ice cream business,
coupled with effective control of input prices through hedging
initiatives and improved pricing schemes of cooking oil products.
SHAREHOLDER RETURN
T
OPERATING EXPENSES otal operating expenses for the year amounted to
VND 950 billion, up 27.2% compared to the previous year on a
like-for-like basis. Marketing, sales infrastructure and
distribution costs were VND 520 billion, up 10% compared to 2015,
resulted from ramp-up activities of the frozen foods expansion.
There was also some one time restructuring and integration costs
for the cooking oil business.
I
CAPITAL INVESTMENTS n 2016, we continued to seek out and expand opportunities
for value-enhancing growth and cost optimization through a
combination of capital investments and acquisitions. By year-end
2016, we completed the acquisition of TAC, the second-largest
cooking oil company in Vietnam, strengthening our product
portfolio and deepening our cooking oil value chain further.
We also inaugurated our second ice cream factory in the north,
expanding our geographic reach and enabling us to achieve
more operating efficiencies.
KIDO GROUP
www.kdc.vn ANNUAL REPORT 2016
I
n 2016, there was a special item that we believe should be separately
disclosed to assist in the understanding of our underlying financial
performance. Specifically, it was the extraordinary income of VND1,300 billion
from transferring the remaining 20% stake in confectionery business.
W
e aim to manage our cost of capital by maintaining an appropriate
capital structure, with a balance between equity and debt. The
primary sources of the Groups debt include our VND 1,000 billion
bond issuance and over VND840 billion credit facilities from both local and
foreign banks. This was in line with the Groups intention to leverage its
balance sheet to finance Group working capital needs and capital expenditure,
including construction of the ice cream plant in the North. As a result, interest
expense increased from VND21.8 billion in 2015 to VND38.7 billion in 2016 but
the average effective interest rate was similar to the previous year (2015: 2.1%),
reflecting our strong financial position and also prudent use of debt.
Cash position as of year-end 2016 was reported at VND 2,333 billion, down by
VND723 billion compared to 2015, due to capital investments and acquisitions.
While the ice cream business was intrinsically cash positive, it is largely offset
by capital expenditure and acquisitions. While pursuing growth opportunities,
we are committed to maintaining discipline with regards to cash flow priorities
which revolve around seizing M&A-led growth opportunities that add
long-term value and cash flows back to our business and maximizing
shareholder returns.
U
nderlying the Groups strategy is the commitment to offering
shareholders sustainable returns. It was reflected by the Groups
dividend policy over the past 5 years with dividend per share nearly
tripling from VND833 in 2012 to VND2,400 in 2016. This was highlighted by
the special dividend of VND20,000 per share in 2015 which was paid out as
a result of the extraordinary financial gains made from the divestment of the
confectionary business. The Group from time to time repurchases shares of
common stock under a share repurchase programs approved by shareholders
and authorized by the Board of Directors. Such programs are reviewed regularly
in consideration of several factors including, among other things, current cash
needs, capacity for leverage, cost of borrowings, our results of operations
and the market price of our common stock. To date, the Group have already
bought back 52 million common stocks (25% of our total outstanding shares).
Kelly Wong
Group Chief Financial Officer
STRATEGIC REPORT 34 35
 CORPORATE
strategy

CATEGORY we now begin looking at different ways to expand

into new categories that fit with Consumer &
Convenience.

T
COUNTRY
he importance of cross channel coordination and efficiency
will begin to become more and more important in our
ability to increase the Groups efficiency. The addition of
With Food & Flavor and the platform as the everage,
the Group will use daily products to connect with
more consumers, more often beyond Vietnam.

W
Tuong An and Vocarimex into our business will make this more
e will drive efficiency in our channel centric organization
critical.
and keep product portfolio selection at the top of our
agenda. With the rapid integration of regional markets,
As we look towards the future, we recognize the dynamics of the
and reduction in tariffs, we recognize the inevitable competition
Vietnamese consumer have changed and will continue to change
that is targeted at Vietnams large consumer population.
as the country evolves. Given the importance of the consumers,
we have expanded our Product Strategy to include the next
With the creation of close knit markets and better integration,
level of products that target Consumer & Convenience. This
the Group must adjust its world view. The consumer market of
will be better defined in the coming years but as we achieve the
Vietnam estimates at 94.4 million Vietnamese consumers of
completion of Food & Flavor, we now begin looking at different
which we are targeting to service 80.2 million of them through
ways to expand into new categories that fit with Consumer &
our products and platform, but with lower tariffs and closer
Convenience.
market integration, competitive pressures will create a market of
over 600 million consumers covering all of South East Asia. With
We have already begun to do so with the extension of our
Food & Flavor and the platform as the leverage, the Group will
frozen food into meal replacements and meal solutions. We
use daily products to connect with more consumers, more often
have an aggressive launch schedule of new products targeted at
beyond Vietnam.
leveraging our existing platform in order to increase our touch
points with consumers.

CHANNEL our platform is about delivery

CAPITAL A big part of gaining so much ground so quickly
and execution. was due to M&A opportunities and as a result

W
capital allocation decision.
hile the business model is consumer centric, our

E
platform is about delivery and execution. The entire
stablishing ourselves in the Food & Flavor industry has
platform still centred on Strategic Business Units (SBU)
been a significant milestone for us. A big part of gaining
which define the categories we compete in but broader than
so much ground so quickly was due to M&A opportunities
that, we are prioritizing our resources around our channels. These
and as a result capital allocation decision. We have successfully
include four different primary distribution channels that are
evolved away from a seasonal business into one that connects
responsible for handling packaged food, frozen/chilled products,
with consumers daily. With this as a base, we continue to target
retail, and export. These channels currently cover all of Vietnam,
opportunities to connect with consumers in new ways and
and support our consumer goal of delivering daily products, to
through capital allocation improve returns on investment and
more consumers more often.
leverage our operating cash flows.

KIDO GROUP
www.kdc.vn ANNUAL REPORT 2016 STRATEGIC REPORT 38 39
BUSINESS MODEL
VALUE CREATION

Value Conversion Value Creation Focus

Process: Manufacturing Process: Internally Centralized Process: Externally Customized

Processing Purchasing (RM) Warehousing & Logistics Retailer

&
Packaging Supply Planning Demand Planning

Finishing Research & Development Distribution Management Consumer

Marketing & Branding Sales

Part of the value chain is more or less
flexible in either completing in house or
out sourcing to preferred partners. Creates
flexibility in launching new products,
entering new categories to accommodate
shifting consumer demand.
Daily connectivity
with the market and
Centralized process that seeks efficiencies Integrated process focused around direct selling
in raw material levels, finished goods levels and distribution management that curates the
and production planning. products by sales territory and customizes sales
approaches to fit retailers (and consumers)
consumers through
Marketing, branding and R&D is centrally needs. direct contact with
coordinated to prevent duplication and
focus on resource allocation. retailers.

STRATEGIC REPORT 44 45
 RISK
MANAGEMENT

STRATEGIC
RISKS

Risk factors are

key risk
categorized through a
factors grading system from
Unlikely to Highly Probably
and scored against
COMMODITY
PRICE RISK OPERATIONAL
potential impact that
FINANCIAL
RISK
RISKS
ranges from Marginal
to Major with potential
monetary values assigned.
If a potential risk factor
is identified to have the
INTERNAL CONTROL PROCESS
likelihood of Probable

T
he SBUs and BUs conduct ongoing risk
identification which is then consolidated at the
Risk Management Sub-Committee to monitor risks
across the Group.
These reports are presented to the EMC who discusses
and deliberates on the potential impact and probability
in order to determine which ones need to be addressed.
Control to come up with a control activity to
monitor and mitigate the risk. For all risk and
impact levels that have control activities created
around them, they are returned to the SBUs
and BUs to continue to monitor the situation to
ensure that any increase or change is promptly
reported to the Sub-Committee.
On an annual basis, controls and risk
and with a potential impact
management monitoring systems are audited of Significant, it is sent to
by internal control and any changes needed are
implemented following the audit. Post reviews, the Risk Management Sub-
new policies are adopted and implemented
and the cycle starts again to ensure that risk Committee to work with
Internal Control to come
management is active vs. passive in nature
which is more suitable for a dynamic business

Risk factors are categorized through a grading system
from Unlikely to Highly Probably and scored against
potential impact that ranges from Marginal to Major
with potential monetary values assigned. If a potential
risk factor is identified to have the likelihood of Probable
and with a potential impact of Significant, it is sent to the
Risk Management Sub-Committee to work with Internal
These policies and procedures are updated into
environment like Vietnam.
up with a control activity
our management system and made available on the to monitor and mitigate
Group intranet. The Internal Control department
will follow up to audit the process and review its
the risk.
implementation on a regular basis.

KIDO GROUP
www.kdc.vn ANNUAL REPORT 2016 CORPORATE GOVERNANCE 50 51
 RISK
MANAGEMENT
STRATEGIC RISKS A big part of gaining so much ground so quickly was due
to M&A opportunities and as a result capital allocation
decision.
Macro-economic, Socio-political and Regulatory Risks
Economic downturns and socio-political issues negatively impact
consumer spending as individuals reduce discretionary spending. The
Group monitors the regional economic and socio-political environment
closes to anticipate changes in consumer sentiment. We also maintain
conservative policies in product purchasing, working capital management
and cost controls to ensure sensitivity to demand changes are minimized.
Dependency Risk
Risk associated with a dependence on a particular supplier, customer,
business partner, or product. An over reliance on a particular supplier,
customer or product makes KDC vulnerable to sales reduction and margin
pressures. To mitigate this risk, the Group works with a broad network of
suppliers, both domestically and internationally, to ensure not only stability
in the supply chain but also the best quality. The Group manages the
distribution network in the same manner, ensuring that no one customer
group in any geography is over 10% of our total sales volume.
Execution Risk
The recent shift of the Groups strategic direction has the potential to
increase execution risk as we add new products and also processes to
deliver those products to market. The mitigation here is that we have
created a robust platform that we believe has the ability to plug and play.
Consumer Demand Risk
Being able to anticipate changes in consumer sentiment and demand is
a critical success factor and failure to do so represents a significant risk to
the Group. In order to mitigate this, the Group leverages its Value Creation
process in order to proactively manage the feedback process thus minimize
the risk of consumer demand risk.
In addition, the strength and loyalty of our networks have given us the
ability to minimize the execution risk in and around new product/category
launches.
Having strong retailer and distributor relationships is a critical success factor
for ensuring product reach, penetration and sales growth.
KIDO GROUP
www.kdc.vn ANNUAL REPORT 2016
OPERATIONAL RISKS A big part of gaining so much ground so quickly was due
to M&A opportunities and as a result capital allocation
decision.
Customer Relationship Risk
Failure to maintain these relationships represents a potential risk factor to
the Group and in order to mitigate this, we are committed to delivering
outstanding customer service which is supported by our technological
infrastructure that enables us to connect closer to our value chain
downstream. This includes the ability to monitor inventory levels, sales
process, and also consumer feedback; creating a robust system that
enhances customer relationships.
Volatility of Raw Material Prices
Changes in raw material prices pose a significant risk to our profitability
and margins.
In order to mitigate this risk, we share the responsibility of managing this
risk with our suppliers. We provide them with a clear forward-looking
materials demand plan and secure fixed pricing for a period of time in order
to have stability and certainty in our production costs.
COMMODITY PRICE A big part of gaining so much ground so quickly was due
to M&A opportunities and as a result capital allocation
RISK FINANCIAL RISK
decision.
Currency Risks
Currency risks are a direct result of our foreign exchange inflows and also
foreign exchange denominated borrowing. To the extent possible, we
ensure a natural hedge to ensure that the inflows are sufficient to cover the
outflows of US dollar in order to mitigate the currency risks. When that is
not possible, the Group will hedge USD exposure as it is created.
Changes in the global and regional financial markets may have a significant
impact on interest rates, which may lead to risks associated to profitability,
liquidity and financing. In order to mitigate this risk, we actively monitor the
markets and also the duration of our debt positions to ensure that we have
enough cash flows and cash balances to meet our obligations.
Financing and Liquidity Risks
In the event that markets contract and liquidity is scarce, causing rates to
rise, we reduce our debt positions using our cash balances and supplement
working capital financing with cash on hand.
CORPORATE GOVERNANCE 52 53
 BOARD MEETINGS
& RESOLUTIONS

ACTIVITIES OF BOARD MEETINGS OF THE BOARD OF DIRECTORS resolutions/decisions STT Resolution No. Date Content
OF DIRECTOR AND of the bod (biannual Record date for shareholder
SUPERVISORY BOARD NO. DATE MEETING AGENDA
reportS) 1. 01/2016/NQ-HQT 09/05/2016
list for holding the 2016
Approve the record date for shareholder list for annual general meeting of
1 09/05/2016 holding the 2016 annual general meeting of shareholders.
shareholders.
Second payment of 2014
2 18/05/2016 Approve the second payment of 2014 dividend 2. 02/2016/NQ-HQT 18/05/2016
dividend
Approve the meeting agenda for the 2016 annual
3 02/06/2016 Meeting agenda for the 2016
general meeting of shareholders
3. 03/2016/NQ-HQT 02/06/2016 annual general meeting of
4 26/08/2016 Approve the payment of 2015 dividend shareholders
Approve the public tender offer for Tuong An
5 01/09/2016 4. 05/2016/NQ-HQT 26/08/2016 Payment of 2015 dividend
Vegetable Oil JSC.
Approve the rising of tender offer bid price and extent
Public tender offer for Tuong
6 26/10/2016 the purchase time for Tuong An Vegetable Oil JSC. 5. 38.16/NQ-HQT/KDC 01/09/2016
An Vegetable Oil JSC.
share
Rising of tender offer bid price
and extent the purchase time
No. Board Director Position Attendance % Attendance 6. 06/2016/NQ-HQT 26/10/2016
for Tuong An Vegetable Oil JSC.
1. Tran Kim Thanh Chairman 6/6 100% share

2. Tran Le Nguyen Vice chairman 6/6 100%

3. Wang Ching Hua Member 6/6 100%
4. Vuong Buu Linh Member 6/6 100%
5. Nguyen Gia Huy Chuong Member 6/6 100%

6. Vuong Ngoc Xiem Member 6/6 100%
7. Tran Quoc Nguyen Member 6/6 100%
8. Nguyen Van Thuan Member 6/6 100%
9. Nguyen Duc Tri Member 5/6 83%

BOARD OF DIRECTORSS ACTIVITIES TOWARD BOARD OF

MANAGEMENT

The Board of Director closely supervised the management through quarterly

report of Board of Management in quarterly meeting.

BOARD OF DIRECTORS COMMITTEE ACTIVITIES

Until the end of 2015, KIDO Group has not formed any board committee.

KIDO GROUP
www.kdc.vn ANNUAL REPORT 2016 CORPORATE GOVERNANCE 54 55
 CORPORATE
SOCIAL RESPONSIBILITY

Our
Such efforts have been manifested in our safe and high-quality products, dedicated, and trustworthy sales
Throughout the history of the Group, we have
service, as well as timely support for natural disaster victims, sponsoring eye surgeries and health insurance
considered corporate social responsibility as one of
cards for the poor, Tet gifts to the orphans, support for educational programs and talent development, the
our core values.

vision
Vision
list goes on. All of these are proof of our strong commitment to the community and society, which has
Our entire team has put forward our best efforts to helped us establish trust with our partners, improve customer satisfaction, maintain solid relation with
achieve this in all of our day-to-day operations, from suppliers and gain consumers confidence.
manufacturing, product development, to employee
welfare and social contribution.

KIDO GROUP
www.kdc.vn ANNUAL REPORT 2016 FINANCIAL STATEMENTS 58 59
 CORPORATE
SOCIAL RESPONSIBILITY

SUSTAINABILITY

OUR
our
We believes that an organization will only be able to have sustainable growth when
operating in a sustainable environment. We have always emphasized awareness in
abiding by the requirements for producing environmentally-friendly products. Our effort

COMMITMENTS
commitments
in protecting the environment has been recognized and praised by the local authorities
and the local community.

Operations management in accordance with international standards such as ISO

14001:2005, OHSAS 18001:2008, ISO 9001:2008, ISO 22000:2010...

Aligning environmental protection standards to the KPIs of each individuals; regular

training for employees to develop awareness about the environment and practice
environmental incidents response drills.

Strictly observing environmental protection regulations and standards (maintaining

grade-A wastewater, good environmental monitoring, eco-friendly fuel such as diesel
or natural gas with low levels of pollutants, investing in inverters for high-power
PRODUCT QUALITY equipment, replacing lighting equipment by solar-powered LED lights, reducing
wastewater and reusing processed wastewater, etc.)

To our company, the definition of product

quality entails producing not only tasty but
also healthy products for consumers. By
continuously searching for stable sources
of raw materials that are safe and of high KD WAREHOUSE

quality, as well as putting investment in

R&D, we have been making many new
outstanding products that are delicious,
healthy and nutritious to meet and exceed
the rising expectations of consumers.

SOCIAL CONTRIBUTION

Success of KDC is reflected not only in the positive financial

performance with sustainable growth but also in being able to
create a positive impact on society, having ongoing trust and
support from partners, shareholders, consumers and employees
throughout our journey.

Consumers trust and use our products because we have always

proved ourselves to be committed to quality, and societal
responsibility through our active participation in community
service.

KIDO GROUP
www.kdc.vn ANNUAL REPORT 2016 FINANCIAL STATEMENTS 60 61
 Kido Group Corporation
Consolidated Financial Statements

31 December 2016

CONTENTS

Pages

General information 66 - 67

Report of the management 68

Independent auditors report 69

Consolidated balance sheet 70 - 71

Consolidated income statement 72

Consolidated cash flow statement 73 - 74

Notes to the consolidated financial statements 75 - 112

KIDO GROUP
www.kdc.vn ANNUAL REPORT 2016 Consolidated financial statements 64 65
 GENERAL INFORMATION

THE COMPANY LEGAL REPRESENTATIVE

Kido Group Corporation (the Company) is a shareholding company incorporated under the Law on Enterprise of The legal representative of the Company during the year and at the date of this report is Mr Tran Kim Thanh.
Vietnam pursuant to the Business Registration Certificate (BRC) No. 4103001184 issued by the Department of Planning
and Investment (DPI) of Ho Chi Minh City on 6 September 2002 and the subsequent amended BRCs. Mr Tran Le Nguyen is authorized by Mr Tran Kim Thanh to sign the accompanying consolidated financial statements for
The Companys shares were listed on the Ho Chi Minh Stock Exchange in accordance with the License No. 39/UBCK- the year ended 31 December 2016.
GPNY issued by the State Securities Commission on 18 November 2005.
The current principal activities of the Company are to wholesale of food products; sell and purchase agricultural AUDITORS
products and foods.
The auditor of the Company is Ernst & Young Vietnam Limited.
The Companys registered head office is located at No. 138 - 142 Hai Ba Trung, Da Kao Ward, District 1, Ho Chi Minh City,
Vietnam.
BOARD OF DIRECTORS
Members of the Board of Directors during the year and at the date of this report are:

Mr Tran Kim Thanh Chairman

Mr Tran Le Nguyen Vice Chairman
Mr Wang Ching Hua Member
Ms Vuong Buu Linh Member
Ms Vuong Ngoc Xiem Member
Mr Tran Quoc Nguyen Member
Mr Nguyen Van Thuan Member
Mr Nguyen Gia Huy Chuong Member
Mr Nguyen Duc Tri Member
BOARD OF SUPERVISION
Members of the Board of Supervision during the year and at the date of this report are:

Mr Luong Quang Hien Head

Ms Luong My Duyen Member
Mr Vo Long Nguyen Member
MANAGEMENT
Members of the management during the year and at the date of this report are:

Mr Tran Le Nguyen General Director

Ms Vuong Buu Linh Deputy General Director
Ms Vuong Ngoc Xiem Deputy General Director
Mr Wang Ching Hua Deputy General Director
Mr Nguyen Xuan Luan Deputy General Director
Mr Mai Xuan Tram Deputy General Director
Mr Bui Thanh Tung Deputy General Director
Mr Tran Quoc Nguyen Deputy General Director
Mr Tran Quoc Viet Deputy General Director
Mr Tran Tien Hoang Deputy General Director
Mr Kelly Yin Hon Wong Deputy General Director
Mr Ma Thanh Danh Deputy General Director
Ms Nguyen Thi Xuan Lieu Deputy General Director
Ms Nguyen Thi Hanh Deputy General Director appointed on 20 October 2016

KIDO GROUP
www.kdc.vn ANNUAL REPORT 2016 Consolidated financial statements 66 67

REPORT OF MANAGEMENT
Management of Kido Group Corporation (the Company) is pleased to present its report and the consolidated financial
statements of the Company and its subsidiaries (the Group) for the year ended 31 December 2016.
MANAGEMENTS RESPONSIBILITY IN RESPECT OF THE CONSOLIDATED FINANCIAL STATEMENTS
Management is responsible for the consolidated financial statements of each financial year which give a true and
fair view of the consolidated financial position of the Group and of the consolidated results of its operations and its
consolidated cash flows for the year. In preparing those consolidated financial statements, management 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 standards have been followed, subject to any material departures disclosed
and explained in the consolidated financial statements; and
prepare the consolidated financial statements on the going concern basis unless it is inappropriate to presume that
the Group will continue its business.
Management is responsible for ensuring that proper accounting records are kept which disclose, with reasonable
accuracy at any time, the consolidated financial position of the Group and to ensure that the accounting records comply
with the applied accounting system. It is also responsible for safeguarding the assets of the Group and hence for taking
reasonable steps for the prevention and detection of fraud and other irregularities.
Management confirmed that it has complied with the above requirements in preparing the accompanying consolidated
financial statements.
STATEMENT BY MANAGEMENT
Management does hereby state that, in its opinion, the accompanying consolidated financial statements give a true
and fair view of the consolidated financial position of the Group as at 31 December 2016, and of the consolidated results
of its operations and its consolidated cash flows for the year then ended in accordance with Vietnamese Accounting
Standards, Vietnamese Enterprise Accounting System and the statutory requirements relevant to preparation and
presentation of the consolidated financial statements.
For and on behalf of management:
Tran Le Nguyen
General Director
Ho Chi Minh City, Vietnam
28 March 2017
KIDO GROUP
www.kdc.vn ANNUAL REPORT 2016
Reference: 60752643/18592293-HN
INDEPENDENT AUDITORS REPORT
To: The Shareholders of Kido Group Corporation
We have audited the accompanying consolidated financial statements of Kido Group Corporation (the Company)
and its subsidiaries (the Group) as prepared on 28 March 2017 and set out on pages 6 to 47, which comprise the
consolidated balance sheet as at 31 December 2016, and the consolidated income statement and the consolidated cash
flow statement for the year then ended and the notes thereto.
Managements responsibility
The Companys management is responsible for the preparation and fair presentation of the Groups consolidated
financial statements in accordance with Vietnamese Accounting Standards, Vietnamese Enterprise Accounting System
and the statutory requirements relevant to preparation and presentation of the consolidated financial statements, and
for such internal control as management determines is necessary to enable the preparation and presentation 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 auditor considers internal control relevant to the Groups 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 Groups 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 give a true and fair view, in all material respects, of the consolidated
financial position of the Group as at 31 December 2016, and of the consolidated results of its operations and its
consolidated cash flows for the year then ended in accordance with Vietnamese Accounting Standards, Vietnamese
Enterprise Accounting System and the statutory requirements relevant to preparation and presentation of the
consolidated financial statements.
Ernst & Young Vietnam Limited
Hang Nhat Quang Luong Kim Dien An
Deputy General Director Auditor
Audit Practicing Registration Certificate Audit Practicing Registration Certificate
No. 1772-2013-004-1 No. 2736-2014-004-1
Ho Chi Minh City, Vietnam
28 March 2017
Consolidated financial statements 68 69
 CONSOLIDATED BALANCE SHEET CONSOLIDATED BALANCE SHEET (continued)
as at 31 December 2016 B01 - DN/HN as at 31 December 2016 B01 - DN/HN

VND VND
Code ASSETS Notes Ending balance Beginning balance Code RESOURCES Notes Ending balance Beginning balance
100 A. CURRENT ASSETS 5,055,634,211,130 4,093,457,988,546 300 C. LIABILITIES 2,643,350,702,455 1,358,536,776,057
110 I. Cash and cash equivalents 5 1,683,337,775,577 1,151,036,779,095 310 I. Current liabilities 1,605,193,733,300 1,302,221,009,501
111 1. Cash 165,334,267,283 120,536,779,095 311 1. Short-term trade payables 14 348,434,636,059 148,144,817,026
112 2. Cash equivalents 1,518,003,508,294 1,030,500,000,000 312 2. Short-term advances from customers 27,503,484,462 4,272,596,174
120 II. Short-term investments 13.1 653,503,729,901 1,908,782,914,101
313 3. Statutory obligations 15 104,158,920,838 862,351,636,378
121 1. Held-for-trading securities 3,949,434,564 3,953,207,644
314 4. Payables to employees 97,082,897,135 28,315,019,674
122 2. Provision for diminution in value of held-for-trading securities (445,704,663) (268,293,543)
315 5. Short-term accrued expenses 16 146,768,677,940 100,106,352,319
123 3. Held-to-maturity investments 650,000,000,000 1,905,098,000,000
318 6. Short-term unearned revenues 666,666,672 742,424,242
130 III. Current accounts receivable 6 1,954,490,525,510 893,540,890,433
131 1. Short-term trade receivables 406,023,133,056 239,150,094,374 319 7. Other short-term payables 17 30,938,632,294 16,419,606,267

132 2. Short-term advances to suppliers 74,347,949,755 78,210,591,658 320 8. Short-term loans 18 843,698,690,786 116,390,507,109
135 3. Short-term loan receivables 8,000,000,000 8,000,000,000 322 9. Bonus and welfare fund 5,941,127,114 25,478,050,312
136 4. Other short-term receivables 1,477,765,348,246 591,097,167,264 330 II. Non-current liabilities 1,038,156,969,155 56,315,766,556
137 5. Provision for doubtful short-term receivables (11,645,905,547) (22,916,962,863) 337 1. Other long-term liabilities 17,360,374,664 10,190,291,846
140 IV. Inventories 7 667,967,089,904 94,935,620,376 338 2. Long-term loans 18 997,954,021,856 36,500,000,000
141 1. Inventories 678,008,300,538 95,435,479,673 342 3. Long-term provisions 22,842,572,635 9,625,474,710
149 2. Provision for obsolete inventories (10,041,210,634) (499,859,297) 400 D. OWNERS EQUITY 6,205,669,487,523 5,365,572,266,330
150 V. Other current assets 96,335,090,238 45,161,784,541
410 I. Capital 6,205,669,487,523 5,365,572,266,330
151 1. Short-term prepaid expenses 8 13,568,506,662 7,682,949,541
411 1. Share capital 19.1 2,566,533,970,000 2,566,533,970,000
152 2. Value-added tax deductible 81,928,436,425 36,547,776,266
411a - Shares with voting rights 2,566,533,970,000 2,566,533,970,000
153 3. Tax and other receivables from the State 15 838,147,151 931,058,734
412 2. Share premium 19.1 3,192,083,261,700 3,192,083,261,700
200 B. NON-CURRENT ASSETS 3,793,385,978,848 2,630,651,053,841
414 3. Other owners capital 19.1 159,680,000,000 -
210 I. Long-term receivables 9 27,806,169,630 27,173,813,506
212 1. Long-term advances to supplier 18,454,707,562 19,604,707,562 415 4. Treasury shares 19.1 (1,959,484,318,538) (1,958,652,945,062)
216 2. Other long-term receivable 9,351,462,068 7,569,105,944 418 5. Investment and development fund 19.1 51,162,916,267 51,162,916,267
220 II. Fixed assets 1,193,317,322,407 662,259,512,810 420 6. Other funds belonging to owners equity 19.1 15,909,752,661 15,909,752,661
221 1. Tangible fixed assets 10 786,125,639,533 260,223,477,234 421 7. Undistributed earnings 19.1 1,908,706,588,263 1,398,947,279,604
222 Cost 1,385,808,777,176 434,244,877,646 421a - Undistributed earnings up to prior year-end 733,551,955,291 -
223 Accumulated depreciation (599,683,137,643) (174,021,400,412) 421b - Undistributed earnings of current year 1,175,154,632,972 1,398,947,279,604
227 2. Intangible fixed assets 11 407,191,682,874 402,036,035,576 429 8. Non-controlling interests 19.6 271,077,317,170 99,588,031,160
228 Cost 457,079,992,725 439,243,824,854
440 TOTAL LIABILITIES AND OWNERS EQUITY 8,849,020,189,978 6,724,109,042,387
229 Accumulated amortization (49,888,309,851) (37,207,789,278)
240 III. Long-term assets in progress 51,194,729,721 86,912,543,211
242 1. Construction in progress 12 51,194,729,721 86,912,543,211
250 IV. Long-term investments 1,634,742,246,014 1,740,600,933,084
252 1. Investments in associates and a jointly controlled entity 13.2 1,634,742,246,014 1,736,233,933,084
253 2. Investment in other entity - 4,367,000,000
260 V. Other long-term assets 886,325,511,076 113,704,251,230
261 1. Long-term prepaid expenses 8 141,883,545,324 83,911,151,926
262 2. Deferred tax assets 27.3 35,285,374,122 29,793,099,304
269 3. Goodwill 4.3 709,156,591,630 - Tran Minh Nguyet Ngyen Thi Oanh Tran Le Nguyen
Preparer Chief Accountant General Director
270 TOTAL ASSETS 8,849,020,189,978 6,724,109,042,387

28 March 2017

KIDO GROUP
www.kdc.vn ANNUAL REPORT 2016 Consolidated financial statements 70 71
 CONSOLIDATED INCOME STATEMENT CONSOLIDATED CASH FLOW STATEMENT
for the year ended 31 December 2016 B02 - DN/HN for the year ended 31 December 2016 B03 - DN/HN

VND VND
Code ITEMS Notes Current year Previous year Code ITEMS Notes Current year Previous year
01 1. Revenue from sale of goods and rendering of services 20.1 2,272,416,116,876 3,234,107,464,606 I. CASH FLOWS FROM OPERATING ACTIVITIES
02 2. Deductions 20.1 (33,640,684,377) (93,982,717,729) 01 Accounting profit before tax 1,507,194,470,664 6,682,302,151,470
10 3. Net revenue from sale of goods and rendering of services 20.1 2,238,775,432,499 3,140,124,746,877 Adjustments for:
11 4. Cost of goods sold and services rendered 21 (1,364,532,605,025) (1,964,677,341,321) 02 Depreciation and amortization 78,616,411,814 174,976,445,311
20 5. Gross profit from sale of goods and rendering of services 874,242,827,474 1,175,447,405,556 03 Provisions 8,539,336,884 12,072,052,844
21 6. Finance income 20.2 1,548,026,247,947 6,706,586,247,768 Foreign exchange differences arisen from revaluation of
04 (64,865,953) (226,608,917)
22 7. Finance expenses 22 (95,709,391,246) (90,894,051,049) monetary accounts denominated in foreign currency

23 In which: Interest expense (38,641,296,719) (21,787,939,086) 05 Profits from investing activities (1,623,505,934,924) (6,800,099,171,435)

24 8. Shares of profit of joint venture and associates 13.2 129,662,518,424 132,729,226,486 06 Interest expense 38,901,077,541 21,787,939,086

25 9. Selling expenses 23 (717,930,249,544) (897,210,836,169) 08 Operating profit before changes in working capital 9,680,496,026 90,812,808,359

26 10. General and administrative expenses 24 (255,381,906,668) (350,964,178,986) 09 Increase in receivables (9,912,711,111) (271,186,392,163)

30 11. Operating profit 1,482,910,046,387 6,675,693,813,606 10 (Increase) decrease in inventories (6,090,533,688) 31,715,749,858

31 12. Other income 26 38,601,764,837 11,148,941,897 11 (Decrease) increase in payables (25,434,497,464) 127,127,690,448

32 13. Other expenses 26 (14,317,340,560) (4,540,604,033) 12 (Increase) decrease in prepaid expenses (3,646,729,300) 2,848,141,549

40 14. Other profit 26 24,284,424,277 6,608,337,864 13 Decrease (increase) in held-for-trading securities 3,773,080 (3,944,908,501)

50 15. Profit before tax 1,507,194,470,664 6,682,302,151,470 14 Interest paid (28,273,393,656) (23,078,866,372)

51 16. Current income tax expense 27.1 (328,256,661,438) (1,414,098,973,037) 15 Corporate income tax paid (35,950,245,559) (81,862,133,219)

52 17. Deferred tax income 27.1 4,945,622,907 1,479,650,345 17 Other cash outflows for operating activities (31,132,135,681) (27,085,699,862)

60 18. Net profit after tax 1,183,883,432,133 5,269,682,828,778 20 Net cash flows used in operating activities (130,755,977,353) (154,653,609,903)

19. Net profit after tax attributable to shareholders II. CASH FLOWS FROM INVESTING ACTIVITIES
61 1,175,154,632,972 5,269,944,960,501
of the parent 21 Purchase and construction of fixed assets (549,476,541,544) (226,856,370,191)
20. Net profit (loss) after tax attributable to 22 Proceeds from disposals of fixed assets 2,239,699,660 13,361,223,668
62 19.6 8,728,799,161 (262,131,723)
non-controlling interests 23 Loans to other entities and term bank deposits (50,000,000,000) (1,935,000,000,000)

70 21. Basic earnings per share 19.5 5,714 22,581 24 Collections from borrowers and term bank deposits 1,305,098,000,000 730,000,000,000
71 22. Diluted earnings per share 19.5 5,714 22,581 25 Payments for investment in other entities (1,566,054,371,341) (93,020,570,683)
26 Proceeds from sale of investments in other entities 1,667,648,000,400 7,299,890,797,742
Tax paid for disposal of investments (1,057,762,085,703) (500,000,000,000)
27 Dividends and interest received 117,434,411,810 177,726,288,982
30 Net cash flows (used in) from investing activities (130,872,886,718) 5,466,101,369,518

Tran Minh Nguyet Ngyen Thi Oanh Tran Le Nguyen

Preparer Chief Accountant General Director

28 March 2017

KIDO GROUP
www.kdc.vn ANNUAL REPORT 2016 Consolidated financial statements 72 73
 CONSOLIDATED CASH FLOW STATEMENT (continued) NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
for the year ended 31 December 2016 B03 - DN/HN as at and for the year ended 31 December 2016 B09 - DN/HN

VND 1. CORPORATE INFORMATION

Code ITEMS Notes Current year Previous year
The Group consists of Kido Group Corporation (KDC or the Company) and its subsidiaries, associates and a
III. CASH FLOWS FROM FINANCING ACTIVITIES
jointly controlled entity as follows:
32 Purchase of treasury shares (831,373,476) (1,322,183,110,162)
33 Borrowings received 2,824,865,891,612 1,783,168,184,628 Company
34 Borrowings repaid 18 (1,536,346,509,254) (2,153,596,169,230)
Kido Group Corporation, is a shareholding company incorporated under the Law on Enterprise of Vietnam
36 Dividends paid to equity holder of the parent company 19.4 (493,745,506,850) (4,935,049,035,030) pursuant to the Business Registration Certificate (BRC) No. 4103001184 issued by the Department of Planning
Dividends paid to non-controlling interests 19.6 (16,503,600) (92,001,259) and Investment (DPI) of Ho Chi Minh City on 6 September 2002 and the subsequent amended BRCs.
40 Net cash flows from (used in) financing activities 793,925,998,432 (6,627,752,131,053)
The Companys shares were listed on the Ho Chi Minh Stock Exchange in accordance with the License
50 Net increase (decrease) in cash and cash equivalents 532,297,134,361 (1,316,304,371,438) No. 39/UBCK-GPNY issued by the State Securities Commission on 18 November 2005.
60 Cash and cash equivalents at beginning of year 5 1,151,036,779,095 2,467,177,548,607
61 Impact of exchange rate fluctuation 3,862,121 163,601,926 The current principal activities of the Group are to wholesale food products; sell and purchase agricultural
products and foods, industrial products, and fabric; produce and trade all kinds of food and drink products such
70 Cash and cash equivalents at end of year 5 1,683,337,775,577 1,151,036,779,095 as ice, ice cream, milk and other dairy products; cooking oil and to operate in the real estate industry.

The Companys registered head office is located at No. 138 - 142 Hai Ba Trung, Da Kao Ward, District 1, Ho Chi
Minh City, Vietnam.

The number of the Groups employees as at 31 December 2016 was 2,480 (31 December 2015: 1,293).

Subsidiaries

KIDO Frozen Foods Joint Stock Company (KDF)

KDC holds a 99.80% equity interest in KDF, formerly known as Kido Company Limited, which is currently a joint
stock company incorporated under the Law on Enterprise of Vietnam pursuant to the BRC No. 4103001557 issued
Tran Minh Nguyet Ngyen Thi Oanh Tran Le Nguyen by the Ho Chi Minh City Department of Planning and Investment on 14 April 2003 and the subsequent amended
Preparer Chief Accountant General Director BRCs. The registered head office and factory of KDF are located at Cu Chi Northwest Industrial Park, Cay Sop
Village, Tan An Hoi Ward, Cu Chi District, Ho Chi Minh City, Vietnam.
28 March 2017
Tan An Phuoc Company Limited (TAP)

KDC holds a 80% equity interest in TAP which is a limited liability company with two and more members
incorporated under the Law on Enterprise of Vietnam pursuant to the BRC No. 0309403269 issued by the DPI
of Ho Chi Minh City on 24 September 2009. The registered office of TAP is located at No. 6/134 National Road
No. 13, Hiep Binh Phuoc Ward, Thu Duc District, Ho Chi Minh City, Vietnam.

Hanoi Trading and International Cooperation (HTIC)

KDC holds a 75.73% equity interest in HTIC which is a shareholding company incorporated under the Law on
Enterprise of Vietnam pursuant to the BRC No. 0103000347 issued by the DPI of Ha Noi City on 11 May 2001. The
registered office of HTIC is located at No. 534 - 536, Bach Mai Street, Truong Dinh Ward, Hai Ba Trung District, Ha
Noi, Vietnam.

KIDO Trading and Service Company Limited (KTS)

KDC holds a 100% equity interest in KTS which is a one-member limited liability company incorporated under
the Law on Enterprise of Vietnam pursuant to the BRC No. 0313172800 issued by the DPI of Ho Chi Minh City
on 23 March 2015. The registered head office of KTS is located at 11th Floor, Empress Tower, No. 138 - 142 Hai Ba
Trung, Da Kao Ward, District 1, Ho Chi Minh City, Vietnam.

KIDO GROUP
www.kdc.vn ANNUAL REPORT 2016 Consolidated financial statements 74 75
 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued) NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued)
as at and for the year ended 31 December 2016 B09 - DN/HN as at and for the year ended 31 December 2016 B09 - DN/HN

1. ORPORATE INFORMATION (continued) 2. Basis of preparation

Subsidiaries (continued) 2.1 Accounting standards and system

Kido Food Company Limited (KIDOFOOD)
KDC holds a 100% equity interest in KIDOFOOD, which is a one member limited liability incorporated under
the Law on Enterprise of Vietnam pursuant to the BRC No. 0106681285 issued by the DPI of Hanoi City on 3
November 2014 and the subsequent amended BRCs. The registered head office of KIDOFOOD is located at 10th
Floor, Vinaconex Tower, No. 34 Lang Ha, Lang Ha Ward, Dong Da District, Hanoi, Vietnam.
Tuong An Vegetable Oil Joint Stock Company (Tuong An)
KDC holds a 65% equity interest in Tuong An, is a joint stock company, which is originally established from the
equitization of Tuong An Vegetable Oil Factory under Vietnam Cosmetic Flavour and Vegetable Oil Company
(currently known as Vietnam Vegetable Oils Industry Corporation) according to the Decision No. 42/2004/Q-BCN
issued by the Ministry of Industry (currently known as Ministry of Industry and Trade) on 4 June 2004. Tuong
An is currently operating pursuant to the BRC No. 4103002698 dated 27 September 2004 and the subsequent
amendments. The registered head office of Tuong An is located at No. 48/5 Phan Huy Ich Street, Ward 15, Tan
Binh District, Ho Chi Minh City, Vietnam.
Associates
Vietnam Vegetable Oils Industry Corporation (Vocarimex)
KDC holds a 24% equity interests in Vocarimex, originally a State-owned enterprise established pursuant to
the Decision No. 452/CN-TCLD dated 6 June 1992 issued by the Ministry of Industry (i.e. currently known as
Ministry of Industry and Trade), is currently a shareholding company incorporated under the Law on Enterprise
of Vietnam pursuant to the BRC No. 0300585984 issued by the DPI of Ho Chi Minh City on 31 December 2014. Its
current principal activities are to produce and trade all kinds of vegetables and animal oils and fats, essential oils,
aromas, cosmetics, toiletries, coconut shell charcoal and products from oil plants. The registered head office of
Vocarimex is located at No. 58 Nguyen Binh Khiem, Da Kao Ward, District 1, Ho Chi Minh City, Vietnam.
Phong Thinh Investment Development Joint Stock Company (Phong Thinh)
KDC holds a 34% equity interests in Phong Thinh, which is a joint stock company incorporated under the Law on
Enterprise of Vietnam pursuant to the BRC No. 0314098268 issued by the DPI of Ho Chi Minh City on 5 November
2016. Its principal activities are to operate in the real estate and construction industry. The registered head office
of Phong Thinh is located at No. 436 - 438 No Trang Long Street, Ward 13, Binh Thanh District, Ho Chi Minh City,
Vietnam.
Jointly controlled entity
The consolidated financial statements of the Group, expressed in Vietnam dong (VND), are prepared in
accordance with Vietnamese Enterprise Accounting System and Vietnamese Accounting Standards issued by
the Ministry of Finance as per the:
Decision No. 149/2001/QD-BTC dated 31 December 2001 on the Issuance and Promulgation of Four
Vietnamese Accounting Standards (Series 1);
Decision No. 165/2002/QD-BTC dated 31 December 2002 on the Issuance and Promulgation of Six
Vietnamese Accounting Standards (Series 2);
Decision No. 234/2003/QD-BTC dated 30 December 2003 on the Issuance and Promulgation of Six
Vietnamese Accounting Standards (Series 3);
Decision No. 12/2005/QD-BTC dated 15 February 2005 on the Issuance and Promulgation of Six Vietnamese
Accounting Standards (Series 4); and
Decision No. 100/2005/QD-BTC dated 28 December 2005 on the Issuance and Promulgation of Four
Vietnamese Accounting Standards (Series 5).
Accordingly, the accompanying consolidated financial statements, including their utilization are not designed for
those who are not informed about Vietnams accounting principles, procedures and practices and furthermore
are not intended to present the consolidated financial position and consolidated results of operations and
consolidated cash flows in accordance with accounting principles and practices generally accepted in countries
other than Vietnam.
2.2 Applied accounting documentation system
The Groups applied accounting documentation system is the General Journal system.
2.3 Fiscal year
The Groups fiscal year applicable for the preparation of its consolidated financial statements starts on 1 January
and ends on 31 December.
2.4 Accounting currency
The consolidated financial statements are prepared in VND which is also the Groups accounting currency.
2.5 Basis of consolidation
The Groups consolidated financial statements comprise the financial statements of the Company (the parent
company) and the financial statements of its subsidiaries for the year ended 31 December 2016.
Subsidiaries are fully consolidated from the date of acquisition, being the date on which the Group obtains
control, and continues to be consolidated until the date that such control ceases.

Lavenue Investment Corporation (Lavenue)
KDC holds a 50% equity interest in Lavenue, which is a shareholding company incorporated under the Law on
Enterprise of Vietnam pursuant to the BRC No. 0310306044 issued by the DPI of HCM City on 10 September
2010. The principal activity of Lavenue is to operate in the real estate industry. The registered office of Lavenue is
located at 3rd Floor, May Flower Tower, No. 12 Le Thanh Ton, District 1, Ho Chi Minh City, Vietnam.
The financial statements of the subsidiaries are prepared for the same reporting year as the parent company,
using consistent accounting policies.
All intra-company balances, income and expenses and unrealized gains or losses result from intra-company
transactions are eliminated in full.
Non-controlling interests represent the portion of profit or loss and net assets not held by the Group and are
presented separately in the consolidated income statement and within equity in the consolidated balance sheet,
separately from parent shareholders equity.

Impact of change in the ownership interest of a subsidiary, without a loss of control, is recorded in undistributed
earnings/accumulated loss.

KIDO GROUP
www.kdc.vn ANNUAL REPORT 2016 Consolidated financial statements 76 77
 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued)
as at and for the year ended 31 December 2016 B09 - DN/HN
3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
3.1 Cash and cash equivalents
Cash and cash equivalents comprise cash on hand, cash in banks and short-term, highly liquid investments with
an original maturity of less than three months that are readily convertible into known amounts of cash and that
are subject to an insignificant risk of change in value.
3.2 Inventories
Inventories are stated at the lower of cost incurred in bringing each product to its present location and condition,
and net realizable value.
Net realizable value represents the estimated selling price in the ordinary course of business less the estimated
costs to complete and the estimated costs necessary to make the sale.
The perpetual method is used to record inventories, which are valued as follows:
Raw materials, consumables and - actual cost on a weighted average basis.
goods for resale.
Finished goods and work in process. - cost of direct materials and labor plus attributable overhead
based on the normal level of activities.
Provision for obsolete inventories
An inventory provision is created for the estimated loss arising due to the impairment (through diminution,
damage, obsolescence, etc.) of raw materials, finished goods, and other inventories owned by the Group,
based on appropriate evidence of impairment available at the balance sheet date. Increases or decreases to the
provision balance are recorded into the cost of goods sold account in the consolidated income statement.
3.3 Receivables
Receivables are presented in the consolidated financial statements at the carrying amounts due from customers
and other debtors, after provision for doubtful receivables.
The provision for doubtful receivables represents amounts of outstanding receivables at the balance sheet date
which are doubtful of being recovered. Increases or decreases to the provision balance are recorded into general
and administration expense account in the consolidated income statement.
3.4 Tangible fixed assets
Tangible fixed assets are stated at cost less accumulated depreciation.
The cost of a tangible fixed asset comprises its purchase price and any directly attributable costs of bringing the
tangible fixed asset to working condition for its intended use. Expenditures for additions, and improvements are
added to the carrying amount of the assets and expenditures for maintenance and repairs are charged to the
consolidated income statement as incurred.
When tangible fixed assets are sold or retired, any gain or loss resulting from their disposal (the difference
between the net disposal proceeds and the carrying amount) is included in the consolidated income statement.
KIDO GROUP
www.kdc.vn ANNUAL REPORT 2016
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued)
as at and for the year ended 31 December 2016 B09 - DN/HN
3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
3.5 Intangible fixed assets
Intangible fixed assets are stated at cost less accumulated amortization.
The cost of an intangible fixed asset comprises its purchase price and any directly attributable costs of preparing the
intangible fixed asset for its intended use. Expenditures for additions, and improvements are added to the carrying
amount of the assets and other expenditures are charged to the consolidated income statement as incurred.
When intangible fixed assets are sold or retired, any gain or loss resulting from their disposal (the difference
between the net disposal proceeds and the carrying amount) is included in the consolidated income statement.
Land use rights
Land use rights are recorded as intangible fixed assets representing the value of the right to use the lands
acquired or leased by the Group. The useful lives of land use rights are assessed as either finite or indefinite.
Accordingly, land use rights with finite lives representing the land lease are amortized over the term of lease
while the land use rights with indefinite useful lives are not amortized.
The advance payment for land rental, of which the land lease contracts have effectiveness prior to 2003 and land
use right certificate being issued, are recorded as intangible fixed asset according to Circular No. 45/2013/TT-BTC
issued by the Ministry of Finance on 25 April 2013 guiding the management, use and depreciation of fixed assets
(Circular 45).
3.6 Depreciation and amortization
Depreciation of tangible fixed assets and amortization of intangible fixed assets are calculated on a straight-line
basis over the estimated useful life of each asset as follows:
Buildings and structures 10 years
Machinery and equipment 5 - 10 years
Means of transportation 6 - 10 years
Office equipment 3 - 5 years
Land use rights 46 years
Brand name 10 years
Computer software 3 - 12 years
Customer relationship 16 years
3.7 Construction in progress
Construction in progress represents tangible fixed assets under construction and is stated at cost. This includes
costs of construction of plant, installation of equipment and other direct costs. Construction in progress is not
depreciated until such time as the relevant assets are completed and put into use.
3.8 Borrowing costs
Borrowing costs consist of interest and other costs that the Group incurs in connection with the borrowing of
the fund and are recorded as expense during the year in which they are incurred, except to the extent that they
are capitalised as explained in the following paragraph.
Borrowing costs that are directly attributable to the acquisition, construction or production of an asset that
necessarily take a substantial period of time to get ready for its intended use or sale are capitalised as part of the
cost of the respective asset.
Consolidated financial statements 78 79
 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued)
as at and for the year ended 31 December 2016 B09 - DN/HN
3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
3.9 Prepaid expenses
Prepaid expenses are reported as short-term or long-term prepaid expenses on the consolidated balance sheet
and amortized over the period for which the amounts are paid or the period in which economic benefits are
generated in relation to these expenses.
Prepaid land rental
Prepaid land rental represents the unamortized balances of advanced payments made in accordance with lease
contract for a period from 30 to 42 years. Such prepaid rental is recognized as a long-term prepaid expense for
allocation to the consolidated income statement over the remaining lease period according to Circular 45.
3.10 Business combination and goodwill
Business combinations are accounted for using the purchase method. The cost of an acquisition is measured
as the fair value of the assets given, equity instruments issued and liabilities incurred or assumed at the date
of exchange, plus costs directly attributable to the acquisition. Identifiable assets acquired and liabilities and
contingent liabilities assumed in a business combination are measured initially at fair values at the date of
business combination.
Goodwill is initially measured at cost being the excess of the cost of the business combination over the Groups
share in the net fair value of the acquirees identifiable assets, liabilities and contingent liabilities. If the cost of
acquisition is less than the fair value of the net assets of the subsidiary acquired, the difference is recognized
directly in the consolidated income statement. After initial recognition, goodwill is measured at cost less
accumulated amortization. Amortization of goodwill is calculated on a straight-line basis over ten (10) years
during which the source embodying economic benefits are recovered by the Group. The parent company
conducts the periodical review for impairment of goodwill of investment in subsidiaries. If there are indicators
of impairment loss incurred is higher than the yearly allocated amount of goodwill on the straight-line basis, the
higher amount will be recorded in the consolidated income statement.
3.11 Investments
Investment in associates
The Groups investment in its associates is accounted for using the equity method of accounting. An associate is
an entity in which the Group has significant influence and which is neither a subsidiary nor a joint venture. The
Group generally deems they have significant influence if they have at least 20% of the voting rights.
Under the equity method, the investment is carried in the consolidated balance sheet at cost plus post acquisition
changes in the Groups share of net assets of the associates. Goodwill arising on acquisition of the associate is
included in the carrying amount of the investment. Goodwill is not amortized and subject to annual review for
impairment. The consolidated income statement reflects the share of the post-acquisition results of operation
of the associate.
The share of post-acquisition profit (loss) of the associates is presented on the face of the consolidated income
statement and its share of post-acquisition movements in reserves is recognized in reserves. The cumulative
post-acquisition movements are adjusted against the carrying amount of the investment. Dividend or profit
sharing received or receivable from associates reduce the carrying amount of the investment.
The financial statements of the associates are prepared for the same reporting period and use the same
accounting policies as the Group. Where necessary, adjustments are made to bring the accounting policies in
line with those of the Group.
KIDO GROUP
www.kdc.vn ANNUAL REPORT 2016
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued)
as at and for the year ended 31 December 2016 B09 - DN/HN
3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
3.11 Investments (continued)
Investment in jointly controlled entity
The Groups investment in jointly controlled entity is accounted for using the equity method of accounting.
Under the equity method, the investment is carried in the consolidated balance sheet at cost plus post joint
venture changes in the Groups share of net assets of the jointly controlled entity. The consolidated income
statement reflects the share of the post-acquisition results of operation of the jointly controlled entity.
The share of profit (loss) of the jointly controlled entity is presented on face of the consolidated income
statement and its share of post-acquisition movements in reserves is recognized in reserves. The cumulative
post-acquisition movements are adjusted against the carrying amount of the investment. Dividend or profit
sharing received or receivable from jointly controlled entity reduces the carrying amount of the investment.
The financial statements of the jointly controlled entitiy are prepared for the same reporting period and use the
same accounting policies as the Group. Where necessary, adjustments are made to bring the accounting policies
in line with those of the Group.
Held-for-trading securities and investment in other entity
Held-for-trading securities and investment in other entity are stated at their acquisition costs.
Provision for diminution in value of investments
Provision for any diminution in value of the held-for-trading securities and investment in capital of other entity
at the balance sheet date is made in accordance with the guidance under Circular No. 228/2009/TT-BTC dated 7
December 2009 and Circular No. 89/2013/TT-BTC dated 28 June 2013 issued by the Ministry of Finance. Increases
and decreases to the provision balance are recorded into finance expense account in the consolidated income
statement.
Held-to-maturity investments
Held-to-maturity investments are stated at their acquisition costs. After initial recognition, held-to-maturity
investments are measured at recoverable amount. Any impairment loss incurred is recognized as finance
expenses in the consolidated income statement and deducted against the value of such investments.
3.12 Payables and accruals
Payables and accruals are recognized for amounts to be paid in the future for goods and services received,
whether or not billed to the Group.
3.13 Accrual for severance pay
The severance pay to employee is accrued at the end of each reporting year for all employees who have
been in service for more than 12 months up to the balance sheet date at the rate of one-half of the average
monthly salary for each year of service up to 31 December 2008 in accordance with the Labour Code and related
implementing guidance. The average monthly salary used in this calculation will be revised at the end of each
reporting year following the average monthly salary of the 6-month period up to the reporting date. Increases
or decreases to the accrued amount other than actual payment to employee will be taken to the consolidated
income statement.
This accrued severance pay is used to settle the termination allowance to be paid to employee upon termination
of their labor contracts following Article 48 of the Labor Code.
Consolidated financial statements 80 81
 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued) NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued)
as at and for the year ended 31 December 2016 B09 - DN/HN as at and for the year ended 31 December 2016 B09 - DN/HN

3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) 3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)

3.14 Foreign currency transactions 3.18 Appropriation of net profit (continued)

Transactions in currencies other than the Groups reporting currency of VND are recorded at the actual transaction Bonus and welfare fund
exchange rates at transaction dates which are determined as follows:
This fund is set aside for the purpose of pecuniary rewarding and encouragement, common benefits and
- Transactions resulting in receivables are recorded at the buying exchange rates of the commercial banks improvement of the employees benefits, and presented as a liability on the consolidated balance sheet.
designated for collection; and
Dividends
- Transactions resulting in liabilities are recorded at the selling exchange rates of the commercial banks
designated for payment. Final dividends proposed by the Groups Board of Directors are classified as a separate allocation of undistributed
earnings within the equity section of the consolidated balance sheet, until they have been approved by the
At the end of the year, monetary balances denominated in foreign currencies are translated at the actual
shareholders at the Annual General Meeting. When these dividends have been approved by the shareholders
transaction exchange rates at the balance sheet date which are determined as follows:
and declared, they are recognized as a liability in the consolidated balance sheet.
- Monetary assets are translated at buying exchange rate of the commercial bank where the Group conducts
3.19 Revenue recognition
transactions regularly; and
Revenue is recognized to the extent that it is probable that the economic benefits will flow to the Group and
- Monetary liabilities are translated at selling exchange rate of the commercial bank where the Group conducts
the revenue can be reliably measured. Revenue is measured at the fair value of the consideration received or
transactions regularly.
receivable, excluding trade discount, rebate and sales return. The following specific recognition criteria must also
All exchange differences incurred during the year and arising from the revaluation of monetary accounts be met before revenue is recognized:
denominated in foreign currency at year-end are taken to the consolidated income statement.
Sale of goods
3.15 Treasury shares
Revenue is recognized when the significant risks and rewards of ownership of the goods have passed to the
Own equity instruments which are reacquired by the Group (treasury shares) are recognized at cost and buyer, usually upon the delivery of the goods.
deducted from equity. No gain or loss is recognized in profit or loss upon purchase, sale, re-issue or cancellation
Rendering of services
of the Groups own equity instruments.
Revenue is recognized when service is rendered and completed.
3.16 Earnings per share
Basic earnings per share is computed by dividing net profit after tax for the year attributable to ordinary Interest
shareholders (after adjusting for the bonus and welfare fund) by the weighted average number of ordinary Revenue is recognized as the interest accrues (taking into account the effective yield on the asset) unless
shares outstanding during the year.
collectability is in doubt.
Diluted earnings per share amounts are calculated by dividing the net profit after tax attributable to ordinary Dividends
equity holders of the Group (after adjusting for interest on the convertible preference shares) by the weighted
average number of ordinary shares outstanding during the year plus the weighted average number of ordinary Income is recognized when the Groups entitlement as an investor to receive dividends is established.
shares that would be issued on conversion of all the dilutive potential ordinary shares into ordinary shares.
3.20 Taxation
3.17 Segment information
Current income tax
A segment is a component determined separately by the Group which is engaged in providing products or
related services (business segment) or providing products or services in a particular economic environment Current income tax assets and liabilities for current and prior years are measured at the amount expected to be
(geographical segment), that is subject to risks and returns that are different from those of other segments. recovered from or paid to the taxation authorities. The tax rates and tax laws used to compute the amount are
those that are enacted as at the balance sheet date.
3.18 Appropriation of net profit
Current income tax is charged or credited to the consolidated income statement, except when it relates to items
Net profit after tax is available for appropriation to shareholders after approval in the shareholders meeting, recognized directly to equity, in which case it is also dealt with in the equity account.
and after making appropriation to the reserve funds in accordance with the Companys charter and Vietnamese
regulatory requirements. Current income tax assets and liabilities are offset when there is a legally enforceable right for the Group to set
off current tax assets against current tax liabilities and when the Group intends to settle its current tax assets and
The Group maintains the following reserve funds which are appropriated from its net profit after tax as proposed liabilities on a net basis.
by the Board of Directors and subject to approval by shareholders at the Annual General Meeting:
Investment and development fund
This fund is set aside for use in the Groups expansion of its operations or in-depth investments.

KIDO GROUP
www.kdc.vn ANNUAL REPORT 2016 Consolidated financial statements 82 83
 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued) NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued)
as at and for the year ended 31 December 2016 B09 - DN/HN as at and for the year ended 31 December 2016 B09 - DN/HN

3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) 4. BUSINESS COMBINATION AND GOODWILL

3.20 Taxation (continued) 4.1 Changes in investment in KIDO Frozen Foods Joint Stock Company (KDF)

Additional capital contribution in KDF

Deferred tax
Deferred tax is provided using the liability method on temporary differences at the balance sheet date between
the tax base of assets and liabilities and their carrying amount for financial reporting purpose.
Deferred tax liabilities are recognized for all taxable temporary differences, except:
where deferred tax liability arises from the initial recognition of an asset or liability in a transaction which at
the time of the transaction affects neither the accounting profit nor taxable profit or loss;
in respect of taxable temporary differences associated with investments in subsidiaries and associates, and
interests in joint ventures where timing of the reversal of the temporary difference can be controlled and it
is probable that the temporary difference will not reverse in the foreseeable future.
Deferred tax assets are recognized for all deductible temporary differences, carried forward unused tax credit and
unused tax losses, to the extent that it is probable that taxable profits will be available against which deductible
temporary differences, carried forward unused tax credit and unused tax losses can be utilized, except:
where deferred tax asset in respect of deductible temporary difference which arises from the initial
recognition of an asset or liability which at the time of the related transaction, affects neither the accounting
profit nor taxable profit or loss;
in respect of deductible temporary differences associated with investments in subsidiaries and associates,
and interests in joint ventures, deferred tax assets are recognized only to the extent that it is probable that
the temporary difference will reverse in the foreseeable future and taxable profits will be available against
which the temporary differences can be utilized.
In 2016, the Group approved the increase in charter capital of KDF, the Groups subsidiary, to VND 400,000,000,000.
As at 28 August 2016, the capital contribution by cash was completed.
Disposals of equity interest in KDF
Along with the transformation of KDFs ownership into a joint stock company, the Group transferred 0.2% equity
interests in KDF to the individuals on 23 September 2016. The transfer reduced the ownership of the Group in
KDF from 100% to 99.8%. Accordingly, the losses of VND 533,373,430 from the said transfer has been recognised
as a deduction to undistributed earnings in the consolidated balance sheet (Note 19.1).
Increase in share capital of KDF from undistributed earnings
In accordance with the Meeting Minutes of the General Shareholders Meeting dated 30 November 2016,
the KDFs shareholders approved the increase in the KDFs charter capital from VND 400,000,000,000 to VND
560,000,000,000. The increase in capital would be sourced from undistributed earnings amounting to VND
160,000,000,000. Accordingly, the share capital increased correspondingly to the Groups ownership in KDF
amounting to VND 159,680,000,000 which has been recognised into the other owners capital account in
consolidated balance sheet (Note 19.1).
4.2 Acquisition of Tuong An Vegetable Oil Joint Stock Company (Tuong An)
On 24 November 2016, the Group acquired 12,337,130 shares of Tuong An for a consideration of VND
1,014,939,750,898, equivalent to 65% ownership. Accordingly, Tuong An became the Companys subsidiary.
The provisional fair values of the identifiable assets and liabilities of Tuong An as at the acquisition date were as follows:

The carrying amount of deferred tax assets is reviewed at each balance sheet date and reduced to the extent Provisional fair value
that it is no longer probable that sufficient taxable profit will be available to allow all or part of deferred tax asset recognized on acquisition
to be utilized. Previously unrecognized deferred tax assets are re-assessed at each balance sheet date and are VND
recognized to the extent that it has become probable that future taxable profit will allow the deferred tax assets Assets
to be recovered. Cash and cash equivalents 350,733,059,557
Accounts receivable 88,501,433,301
Deferred tax assets and liabilities are measured at the tax rates that are expected to apply in the year when the Inventories 573,356,820,995
asset is realized or the liability is settled based on tax rates and tax laws that have been enacted at the balance Tangible fixed assets 128,256,244,223
sheet date. Intangible fixed assets 10,261,984,800
Construction in progress 2,165,436,275
Deferred tax is charged or credited to the consolidated income statement, except when it relates to items Other assets 45,558,491,855
recognized directly to equity, in which case it is also dealt with in the equity account. 1,198,833,471,006
Liabilities
Deferred tax assets and liabilities are offset when there is a legally enforceable right for the Group to set off Current liabilities 325,352,054,233
current tax assets against current tax liabilities and when they relate to income taxes levied by the same taxation Short-term loans 399,983,042,353
authority on either the same taxable entity or when the Group intends to either settle current tax liabilities and Non-current liabilities 12,230,897,222
assets on a net basis or to realize the assets and settle the liabilities simultaneously, in each future year in which 737,565,993,808
significant amounts of deferred tax liabilities or assets are expected to be settled or recovered. Total net assets 461,267,477,198
Total net assets acquired, 65% 299,823,860,179
Goodwill arising on acquisition 715,115,890,719
Consideration 1,014,939,750,898

KIDO GROUP
www.kdc.vn ANNUAL REPORT 2016 Consolidated financial statements 84 85
 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued) NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued)
as at and for the year ended 31 December 2016 B09 - DN/HN as at and for the year ended 31 December 2016 B09 - DN/HN

4. BUSINESS COMBINATION AND GOODWILL (continued) 6. CURRENT ACCOUNTS RECEIVABLE

4.2 Acquisition of Tuong An Vegetable Oil Joint Stock Company (Tuong An) (continued) VND
Ending balance Beginning balance
From the date of acquisition, Tuong An has contributed revenue and net profit before tax to the revenue
and net profit before tax of the Group for the year ended 31 December 2016 by VND 492,745,557,207 and Short-term trade receivables 406,023,133,056 239,150,094,374
VND 26,326,037,299, respectively. In which:
Due from related parties (Note 28) 3,983,439 13,266,679,104
The accounting recognised in the consolidated financial statements for the year ended 31 December 2016 was Dat Toan Phu Company Limited 157,381,334,279 115,760,235,352
based on a provisional assessment of fair values of Tuong Ans net assets as the Group is seeking an independent Dat Toan Phat Company Limited 103,214,102,460 90,194,488,110
valuation. Accordingly, the result of this valuation has not been received at the date of the consolidated financial Other customers 145,423,712,878 19,928,691,808
statements. Short-term advances to suppliers 74,347,949,755 78,210,591,658
In which:
4.3 Goodwill Quoc Thuan Phat Company Limited 64,221,407,955 16,862,488,213
Other suppliers 10,126,541,800 61,348,103,445
Goodwill is amortized on a straight line basis over ten (10) years from acquisition date. Details were as follows: Short-term loan receivables - TRIBECO Binh Duong Company Limited 8,000,000,000 8,000,000,000
Other short-term receivables 1,477,765,348,246 591,097,167,264
VND In which:
Advance for investment in targeted shares (*) 852,000,000,000 -
Cost Advance for investment in Vocarimex (**) 480,746,591,000 473,750,573,417
Beginning balance 2,647,317,929 Receivables from disposal of an investment 112,675,000,000 -
Increase due to acquisition of a subsidiary (Note 4.2) 715,115,890,719 Interest receivable 15,066,402,780 27,793,194,444
Ending balance 717,763,208,648 Advance for re-structuring and investment consulting services 8,857,022,417 62,685,833,794
Others 8,420,332,049 26,867,565,609
Accumulated amortization
In which:
Beginning balance 2,647,317,929 Due from related parties (Note 28) 1,222,639,391,000 205,469,318,824
Amortization for the year 5,959,299,089 Due from third parties 255,125,957,246 385,627,848,440
Ending balance 8,606,617,018 Provision for doubtful short-term receivables (11,645,905,547) (22,916,962,863)

Net carrying amount NET 1,954,490,525,510 893,540,890,433

Beginning balance -
(*) This ending balance represents the advances made to Rong Viet Securities Corporation (VDS) for the
Ending balance 709,156,591,630 acquisition of the targeted shares.

5. CASH AND CASH EQUIVALENTS (**) In accordance with the Extraordinary General Meeting (EGM) Resolution dated 1 December 2014, the
Companys shareholders approved a plan for purchasing shares to increase the Companys ownership
VND rate in Vocarimex up to more than 51%. The ending balance represents the advances made for the said
additional purchase. Details are as follows:
Ending balance Beginning balance
Cash on hand 1,473,358,888 1,414,888,014 VND
Cash in banks 163,860,908,395 119,121,891,081
Ending balance Beginning balance
Cash equivalents 1,518,003,508,294 1,030,500,000,000
VDS 370,639,391,000 187,635,222,000
TOTAL 1,683,337,775,577 1,151,036,779,095
VP Bank Securities Company Limited 110,107,200,000 110,107,200,000
Vien Dong Securities Corporation - 134,743,665,932
Cash equivalents represented term deposits at the commercial banks with the original maturity of less than
three (3) months and earned the interest at the rates ranging from 4.0% to 5.5% per annum. Others - 41,264,485,485
TOTAL 480,746,591,000 473,750,573,417

KIDO GROUP
www.kdc.vn ANNUAL REPORT 2016 Consolidated financial statements 86 87
 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued) NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued)
as at and for the year ended 31 December 2016 B09 - DN/HN as at and for the year ended 31 December 2016 B09 - DN/HN

6. CURRENT ACCOUNTS RECEIVABLE (continued) 8. PREPAID EXPENSES

The short-term trade receivables of the Group with carrying amount of VND 35,645,290,670 were placed as VND
collateral for the Groups short-term loans from the bank (Note 18.1).
Ending balance Beginning balance
Details of movement of provision for doubtful short-term receivables: Short-term
Insurance fees 5,811,831,560 4,415,355,154
VND
Tools and equipment 4,152,375,224 2,850,293,320
Current year Previous year Rental fees 1,456,312,379 -
Beginning balance 22,916,962,863 11,217,586,213 Others 2,147,987,499 417,301,067
Provision created during the year 11,645,905,547 22,916,962,863 13,568,506,662 7,682,949,541
Utilization and reversal of provision Long-term
(22,916,962,863) (11,217,586,213)
during the year
Prepaid land rental 117,852,461,261 59,697,963,166
Ending balance 11,645,905,547 22,916,962,863 Tools and equipment 18,345,761,246 20,599,004,714
Others 5,685,322,817 3,614,184,046
7. inventories
141,883,545,324 83,911,151,926
VND TOTAL 155,452,051,986 91,594,101,467
Ending balance Beginning balance
The land use rights of the Group with carrying amounts of VND 10,932,449,206 and VND 48,988,236,576 were
Raw materials 433,462,737,554 34,045,311,297 placed as collateral for the Groups short-term loans (Note 18.1) and long-term loans (Note 18.2) from the bank,
Finished goods 161,414,040,613 28,065,993,519 respectively.
Work in process 49,445,059,020 -
9. LONG-TERM RECEIVABLES
Tools and supplies 22,440,699,391 20,524,083,515
Merchandise goods 5,577,904,169 10,661,923,380 VND
Others 5,667,859,791 2,138,167,962
Ending balance Beginning balance
TOTAL 678,008,300,538 95,435,479,673
Long-term advance to supplier
Provision for obsolete inventories (10,041,210,634) (499,859,297)
Advance to Hoang Trieu Company Limited for office rental 18,454,707,562 19,604,707,562
NET 667,967,089,904 94,935,620,376
Other long-term receivable

The inventories of the Group with a value of VND 83,411,920,393 were placed as collateral for the Groups Long-term deposits 9,351,462,068 7,569,105,944
short-term loans from the bank (Note 18.1). TOTAL 27,806,169,630 27,173,813,506

Details of movement of provision for obsolete inventories:

VND
Current year Previous year
Beginning balance 499,859,297 11,431,307,218
Increase due to acquisition of a subsidiary 3,125,466,182 -
Provision created during the year 8,309,967,302 3,615,519,634
Reversal of provision during the year (1,894,082,147) (11,431,307,218)
Disposal of subsidiaries - (3,115,660,337)
Ending balance 10,041,210,634 499,859,297

KIDO GROUP
www.kdc.vn ANNUAL REPORT 2016 Consolidated financial statements 88 89
 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued)
as at and for the year ended 31 December 2016 B09 - DN/HN

10. TANGIBLE FIXED ASSETS

VND
Buildings and structures Machinery and equipment Means of transportation Office equipment Total
Cost
Beginning balance 73,900,290,879 237,197,706,733 100,013,680,700 23,133,199,334 434,244,877,646
New purchase 152,696,657,613 194,855,723,989 27,193,802,353 5,543,676,127 380,289,860,082
Transfer from construction
22,974,143,468 57,164,733,186 - - 80,138,876,654
in progress
Increase due to acquisition of a subsidiary 177,507,984,981 304,751,499,588 9,895,632,136 2,534,895,071 494,690,011,776
Reclassifications 63,082,390 106,922,339 (24,741,200) (145,263,529) -
Disposal during the year - (1,347,116,737) (1,245,655,395) (962,076,850) (3,554,848,982)
Ending balance 427,142,159,331 792,729,469,098 135,832,718,594 30,104,430,153 1,385,808,777,176
In which:
Fully depreciated 22,160,815,188 92,488,796,180 15,272,645,360 11,880,394,715 141,802,651,443
Accumulated depreciation
Beginning balance 18,628,745,248 100,408,180,625 40,791,965,675 14,192,508,864 174,021,400,412
Depreciation for the year 7,286,239,750 35,637,154,441 14,685,518,016 3,329,042,096 60,937,954,303
Increase due to acquisition of a subsidiary 111,639,162,522 245,717,261,553 6,943,967,687 2,133,375,791 366,433,767,553
Disposal during the year - (271,580,719) (772,967,425) (665,436,481) (1,709,984,625)
Ending balance 137,554,147,520 381,491,015,900 61,648,483,953 18,989,490,270 599,683,137,643
Net carrying amount
Beginning balance 55,271,545,631 136,789,526,108 59,221,715,025 8,940,690,470 260,223,477,234
Ending balance 289,588,011,811 411,238,453,198 74,184,234,641 11,114,939,883 786,125,639,533

The buildings and structures, machinery and equipment, and office equipment of the Group with carrying
amounts of VND 162,303,128,657, VND 261,451,653,755 and VND 90,916,235 were placed as collateral for the
Groups short-term loans (Note 18.1) and long-term loans (Note 18.2) from the banks, respectively.

11. INTANGIBLE FIXED ASSETS
VND

Brand name Land use rights Computer software Customer relationship Total
Cost
Beginning balance 16,591,966,348 350,000,648,050 50,063,419,682 22,587,790,774 439,243,824,854
New purchase - - 3,644,243,540 - 3,644,243,540
Increase due to acquisition of a subsidiary - 13,671,924,331 520,000,000 - 14,191,924,331
Ending balance 16,591,966,348 363,672,572,381 54,227,663,222 22,587,790,774 457,079,992,725
In which:
Fully amortized - - 789,695,060 - 789,695,060
Accumulated amortization
Beginning balance 8,295,983,174 148,130,847 21,704,990,641 7,058,684,616 37,207,789,278
Amortization for the year 1,659,196,635 - 5,679,647,484 1,411,736,923 8,750,581,042
Increase due to acquisition of a subsidiary - 3,409,939,531 520,000,000 - 3,929,939,531
Ending balance 9,955,179,809 3,558,070,378 27,904,638,125 8,470,421,539 49,888,309,851
Net carrying amount
Beginning balance 8,295,983,174 349,852,517,203 28,358,429,041 15,529,106,158 402,036,035,576
Ending balance 6,636,786,539 360,114,502,003 26,323,025,097 14,117,369,235 407,191,682,874

KIDO GROUP
www.kdc.vn ANNUAL REPORT 2016 Consolidated financial statements 90 91
 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued) NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued)
as at and for the year ended 31 December 2016 B09 - DN/HN as at and for the year ended 31 December 2016 B09 - DN/HN

12. CONSTRUCTION IN PROGRESS 13.2 Investments in associates and a jointly controlled entity

VND Name of associates and jointly controlled Carrying value

Ending balance Beginning balance entity
Interest Ending balance Interest Beginning balance
Construction of new plants 15,556,141,796 58,982,459,761 % VND % VND
Installation of machinery 14,942,594,328 26,927,666,141 Lavenue 50.00 1,075,599,228,708 50.00 1,041,034,233,886
Warehouse and canteen 12,131,555,667 - Vocarimex 24.00 557,143,017,306 24.00 481,798,294,599
Software development 6,975,639,040 - Phong Thinh 34.00 2,000,000,000 - -
Others 1,588,798,890 1,002,417,309 MKD - - 20.00 213,401,404,599
TOTAL 51,194,729,721 86,912,543,211 TOTAL 1,634,742,246,014 1,736,233,933,084

The Group has pledged the assets to be formed in future estimated at VND 6,461,521,476 as collateral for the
Groups long-term loans from the banks (Note 18.2).

13. INVESTMENTS

13.1 Short-term investments

Ending balance Beginning balance

Amount Amount
Number Number
VND VND
Held-for-trading securities, net 3,503,729,901 3,684,914,101

Listed shares 129,601 3,949,434,564 124,285 3,953,207,644

Provision for diminution in value of

(445,704,663) (268,293,543)
held-for-trading securities
Held-to-maturity investments 650,000,000,000 1,905,098,000,000

Short-term deposits at Vietnam Export

650,000,000,000 1,905,000,000,000
Import Commercial Joint Stock Bank

Others - 98,000,000

NET 653,503,729,901 1,908,782,914,101

KIDO GROUP
www.kdc.vn ANNUAL REPORT 2016 Consolidated financial statements 92 93
 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued) NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued)
as at and for the year ended 31 December 2016 B09 - DN/HN as at and for the year ended 31 December 2016 B09 - DN/HN

13. INVESTMENTS (continued)

13.2 Investments in associates and a jointly controlled entity (continued)

Details of the carrying values of these investments in associates and a jointly controlled entity as at 31 December
2016 were as follows:
VND
Lavenue Vocarimex Phong Thinh MKD Total
Cost of investment
Beginning balance 1,050,000,000,000 421,505,599,984 - 131,999,106,614 1,603,504,706,598
Increase 37,500,000,000 - 2,000,000,000 - 39,500,000,000
Disposals of associate - - - (131,999,106,614) (131,999,106,614)
Ending balance 1,087,500,000,000 421,505,599,984 2,000,000,000 - 1,511,005,599,984

Accumulated share in post-acquisition profit (loss)

of the associates and a jointly controlled entity
Beginning balance (8,965,766,114) 60,292,694,615 - 81,402,297,985 132,729,226,486
Share in post-acquisition profit (loss) for the year (2,935,005,178) 75,344,722,707 - 57,252,800,895 129,662,518,424
Disposals of associate - - - (138,655,098,880) (138,655,098,880)
Ending balance (11,900,771,292) 135,637,417,322 - - 123,736,646,030
Carrying amount
Beginning balance 1,041,034,233,886 481,798,294,599 - 213,401,404,599 1,736,233,933,084
Ending balance 1,075,599,228,708 557,143,017,306 2,000,000,000 - 1,634,742,246,014

On 22 August 2016, the Group has completed the transfer of the remaining 22,883,510 shares of Mondelez Kinh
Do Vietnam Joint Stock Company (MKD), formerly known as Binh Duong Kinh Do Corporation, to Mondelez
International AMEA Pte. Ltd under the sale and purchase agreement dated 10 November 2014.

14. SHORT-TERM TRADE PAYABLES

VND
Ending balance Beginning balance
Due to related parties (Note 28) 190,974,077,818 23,784,848,083

WPP Media Company Limited - 42,143,562,686

Other suppliers 157,460,558,241 82,216,406,257

TOTAL 348,434,636,059 148,144,817,026

KIDO GROUP
www.kdc.vn ANNUAL REPORT 2016 Consolidated financial statements 94 95
 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued) NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued)
as at and for the year ended 31 December 2016 B09 - DN/HN as at and for the year ended 31 December 2016 B09 - DN/HN

15. STATUTORY OBLIGATIONS

VND
Beginning Increase due to acquisition of a Payable for Payment made Ending
balance subsidiary the year in the year balance
Corporate income tax 857,214,406,252 1,294,738,253 328,256,661,438 (1,093,712,331,262) 93,053,474,681

Value-added tax 2,958,016,360 - 138,146,183,355 (141,094,055,228) 10,144,487

Other taxes 1,248,155,032 95,316,192 63,291,602,587 (54,377,919,292) 10,257,154,519

TOTAL 861,420,577,644 1,390,054,445 529,694,447,380 (1,289,184,305,782) 103,320,773,687

In which:

Tax overpaid (931,058,734) (838,147,151)

Tax payables 862,351,636,378 104,158,920,838

16. SHORT-TERM ACCRUED EXPENSES 18. LOANS

VND VND
Ending balance Beginning balance Ending balance Beginning balance
Marketing expenses 70,798,343,979 45,786,222,262 Short-term loans
Consulting fees 43,199,629,782 6,712,164,896 Loans from banks 645,853,690,786 116,390,507,109
13th month salary and bonus 16,185,629,622 9,023,620,580 Current portion of long-term bond 197,845,000,000 -
Interest expense 10,458,036,289 90,133,226 843,698,690,786 116,390,507,109
Transportation fees 705,379,460 759,827,047 Long-term loans
Tax on changing of purpose for use of land - 34,594,000,000 Loans from banks 206,314,241,034 36,500,000,000
Others 5,421,658,808 3,140,384,308 Domestic straight bonds 791,639,780,822 -
TOTAL 146,768,677,940 100,106,352,319 997,954,021,856 36,500,000,000
TOTAL 1,841,652,712,642 152,890,507,109
17. OTHER SHORT-TERM PAYABLES

VND Movements of loans are as follows:

Ending balance Beginning balance
VND
Dividends payable 5,426,334,300 5,516,049,750
Social, health and unemployment insurance 4,325,640,574 2,292,784,980
Short-term loans Long-term loans
Beginning balance 116,390,507,109 36,500,000,000
Others 21,186,657,420 8,610,771,537
Increase due to acquisition of a subsidiary 399,983,042,353 -
TOTAL 30,938,632,294 16,419,606,267
Drawdown of borrowings 1,651,226,650,578 1,173,639,241,034
In which: Transfer of current portion of long-term loans 212,445,000,000 (212,445,000,000)
Due to related parties (Note 28) - 4,064,093,052 Allocation of bond issuance expenses - 259,780,822
Repayment of borrowings (1,536,346,509,254) -
Others 30,938,632,294 12,355,513,215
Ending balance 843,698,690,786 997,954,021,856

KIDO GROUP
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 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued) NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued)
as at and for the year ended 31 December 2016 B09 - DN/HN as at and for the year ended 31 December 2016 B09 - DN/HN

18. LOANS (continued) 18. LOANS (continued)

18.1 Short-term loans

Details of short-term loans from banks to finance for working capital requirements are as follows:
Bank
Joint Stock Company
Bank for Foreign Trade of 272,523,774,208
Vietnam
Military Commercial
Joint Stock Bank - Ho Chi 137,400,529,244
Minh City Brand
Vietnam Joint Stock
Commercial Bank for
Industry and Trade
Bank for Investment and
Development of Vietnam
Vietnam International
Bank
CTBC Bank Co., Ltd. - Ho
Chi Minh City Branch
Hong Kong and Shang-
hai Banking Corporation
TOTAL 645,853,690,786
18.2 Long-term loans
18.3 Domestic straight bonds
Details of these bonds as at 31 December 2016 are as follows:
Interest
Ending balance Maturity date rate Collateral
VND (% p.a) Arrangement organization Date of issuance Amount
VND
From 10 January 2017
4.3 - 4.9 Unsecured Vietnam International Commercial Joint Stock Bank - District 1 Branch (VIB) 18 November 2016 1,000,000,000,000
to 15 March 2017
Bond issuance expenses (10,515,219,178)
Buildings and structures, machinery and
equipment belong to Phu Dong Project valued TOTAL 989,484,780,822
at VND 33,516,043,128 and VND 86,399,246,036, In which:
respectively (Note 10); land use right at Tay Bac Cu
From 17 January 2017 Current portion of long-term bond 197,845,000,000
5.4 Chi Industrial Zone with carrying amount of
to 25 June 2017
VND 10,932,449,206 (Note 8); inventories at Cu Chi Non-current portion of long-term bond 791,639,780,822
warehouse valued at VND 83,411,920,393 (Note 7);
and account receivables amounting to
VND 35,645,290,670 (Note 6)
On 18 November 2016, the Group issued bonds with total value of VND 1,000 billion (the par value per bond is
From 7
VND 1 billion) which was bought by VIB.
78,000,000,000 January 2017 to 26 3.5 - 5.0 Unsecured
March 2017
These bonds will be repaid after five (5) years from the date of issuance with an interest rate of 8.5% per annum
From 15 February
74,017,493,031 6.2 - 6.5 Unsecured for the first six-month period and the interest rate for the subsequent six-month periods is the average interest
2017 to 24 April 2017
rate of individual saving deposit in VND with the term of twelve (12) months announced by four banks: Joint
From 15 February
44,695,600,597 6.3 Unsecured Stock Commercial Bank for Foreign Trade of Vietnam (VCB), Vietnam Joint Stock Commercial Bank for Industry
2017 to 24 April 2017
and Trade (Vietinbank), Joint Stock Commercial Bank for Investment and Development of Vietnam (BIDV) and
From 17 January 2017 VIB plus margin of 2.5% per annum. The Company has the obligation to repurchase these bonds before maturity
24,767,518,906 5.5 Unsecured
to 8 March 2017
date from date of issuance as follows:
From 7 January 2017
14,448,774,800 4.2 Unsecured
to 22 February 2017 -- minimum 20% of the issued bond value on the date-end of twelve (12)-month period from the issuance date;
-- minimum 40% of the issued bond value on the date-end of twenty four (24)-month period from the
issuance date;

The Company obtained long-term loans from banks for the purpose of financing its purchase and installation of -- minimum 60% of the issued bond value on the date-end of thirty six (36)-month period from the issuance date;
machinery and construction of new plant in Bac Ninh with ending balances as follows: -- minimum 80% of the issued bond value on the date-end of forty eight (48)-month period from the issuance
date; and
Interest
Name of bank Ending balance Maturity date Description of collateral -- the remaining value of issued bond value on the date-end of sixty (60)-month period from the issuance date.
rate
VND (% p.a.) The proceeds from the bonds were used for the purpose of supplementing the Groups capital for business and
Buildings and structures, machinery and production activities. As at 31 December 2016, the bonds are owned by VIB.
equipment, office equipment of Bac Ninh
Factory valued at VND 128,787,085,529;
Military Commercial The bonds are secured by some shares of the Groups certain subsidiaries.
From 12 January 2021 VND 117,306,090,838 and VND 90,916,235;
Joint Stock Bank - Ho Chi 184,414,241,034 6.5
to 25 October 2021 respectively (Note 10), construction in progress
Minh City Branch
amounting to VND 6,461,521,476 (Note 12); and
land use rights in VSIP Bac Ninh with carrying
amount of VND 48,988,236,576 (Note 8)
From 12 February
CTBC Bank Co., Ltd., - Ho 21,900,000,000 Machinery and equipment valued at
2018 to 30 December 6.5 - 7.0
Chi Minh City Branch VND 57,746,316,881 (Note 10)
2018
TOTAL 206,314,241,034

KIDO GROUP
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 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued)
as at and for the year ended 31 December 2016 B09 - DN/HN

19. OWNERS EQUITY

19.1 Increase and decrease in owners equity

VND
Issued Investment and development Other funds belonging to Undistributed
share capital Share premium Other owners capital Treasury shares fund owners equity earnings Total
Previous year:
Beginning balance 2,566,533,970,000 3,274,294,092,589 - (805,826,191,900) 51,162,916,267 15,909,752,661 1,084,533,422,015 6,186,607,961,632
Purchase of
- - - (1,152,826,753,162) - - - (1,152,826,753,162)
treasury shares
Disposal of subsidiaries - (82,210,830,889) - - - - - (82,210,830,889)
Net profit for the year - - - - - - 5,269,944,960,501 5,269,944,960,501
Dividends declared - - - - - - (4,938,383,961,000) (4,938,383,961,000)
Transferred to funds - - - - - - (6,285,141,912) (6,285,141,912)
Board of Directors allowance - - - - - - (10,862,000,000) (10,862,000,000)
Ending balance 2,566,533,970,000 3,192,083,261,700 - (1,958,652,945,062) 51,162,916,267 15,909,752,661 1,398,947,279,604 5,265,984,235,170
Current year:
Beginning balance 2,566,533,970,000 3,192,083,261,700 - (1,958,652,945,062) 51,162,916,267 15,909,752,661 1,398,947,279,604 5,265,984,235,170
Purchase of
- - - (831,373,476) - - - (831,373,476)
treasury shares
Net profit for the year - - - - - - 1,175,154,632,972 1,175,154,632,972
Disposal of a subsidiary - - - - - - (533,373,430) (533,373,430)
Board of Directors allowance - - - - - - (11,595,212,483) (11,595,212,483)
Dividends declared - - - - - - (493,586,738,400) (493,586,738,400)
Increase in capital of subsidiary sourced by its
- - 159,680,000,000 - - - (159,680,000,000) -
undistributed earnings (Note 4.1)

Ending balance 2,566,533,970,000 3,192,083,261,700 159,680,000,000 (1,959,484,318,538) 51,162,916,267 15,909,752,661 1,908,706,588,263 5,934,592,170,353

19.2 Capital transactions with owners 19.4 Dividends

VND VND
Current year Previous year Current year Previous year
Issued share capital Dividends declared during the year 493,586,738,400 4,938,383,961,000
Beginning and ending balances 2,566,533,970,000 2,566,533,970,000 (i) Dividends for 2015: VND 1,400 per share 205,661,141,000 -
(ii) Dividends for 2014: VND 1,000 per share
19.3 Shares (Interim dividends for 2014: VND 1,000 per shares)
287,925,597,400 235,161,141,000

Share (iii) Special dividend: VND 20,000 per share - 4,703,222,820,000

Ending balance Beginning balance Dividends paid to equity holders of the parent company 493,745,506,850 4,935,049,035,030

Ordinary shares authorized to be issued 256,653,397 256,653,397

Ordinary shares issued and fully paid 256,653,397 256,653,397
Treasury shares held by the Group (50,992,335) (50,992,335)
In which: held by the Company (50,992,256) (50,992,256)
Ordinary outstanding shares 205,661,062 205,661,062

KIDO GROUP
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 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued) NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued)
as at and for the year ended 31 December 2016 B09 - DN/HN as at and for the year ended 31 December 2016 B09 - DN/HN

19. OWNERS EQUITY (continued) 20. REVENUES (continued)

19.5 Earnings per share 20.2 Finance income

Basic and diluted earnings per share are calculated as follows: VND
Current year Previous year
Current year Previous year
Net profit attributable to the Companys shareholders (VND) 1,175,154,632,972 5,269,944,960,501
Gains from disposal of investments 1,435,823,509,528 6,523,061,602,306
Less: Bonus and welfare fund (VND) - (6,285,141,912)
Interest income 104,419,054,812 176,753,273,339
Net profit after tax attributable to ordinary shares (VND) 1,175,154,632,972 5,263,659,818,589
Weighted average number of ordinary shares 205,661,062 233,105,116 Foreign exchange difference gains 7,419,475,750 6,460,697,985
Basic earnings per share 5,714 22,581 Others 364,207,857 310,674,138
Diluted earnings per share 5,714 22,581 TOTAL 1,548,026,247,947 6,706,586,247,768

(Par value: VND 10,000 per share) 21. COST OF GOODS SOLD AND SERVICES RENDERED
There are no potential dilutive ordinary shares as at the balance sheet date.
VND
19.6 Non-controlling interests
Current year Previous year
VND Cost of finished goods sold 1,052,496,316,315 1,526,676,879,150
Current year Previous year Cost of merchandise sold 301,302,471,763 432,392,992,690
Beginning balance 99,588,031,160 101,083,227,966 Provision (reversal of provision) for obsolete inventories 10,574,789,160 (7,815,787,584)
Increase due to acquisition of a subsidiary 161,443,617,019 - Others 159,027,787 13,423,257,065
Profit (loss) during the year 8,728,799,161 (262,131,723)
TOTAL 1,364,532,605,025 1,964,677,341,321
Disposals of a subsidiary 1,333,373,430 (1,141,063,824)
Dividends paid (16,503,600) (92,001,259)
22. FINANCE EXPENSES
Ending balance 271,077,317,170 99,588,031,160
VND
20. REVENUES
Current year Previous year
20.1 Revenue from sale of goods and rendering of services Financial consulting fees 47,082,548,477 51,609,786,406
Loan interest 38,641,296,719 21,787,939,086
VND
Foreign exchange difference losses 8,581,216,450 14,337,635,683
Current year Previous year Others 1,404,329,600 3,158,689,874
Gross revenue 2,272,416,116,876 3,234,107,464,606
TOTAL 95,709,391,246 90,894,051,049
In which:
Sale of finished goods 1,932,133,357,111 2,598,063,094,381
23. SELLING EXPENSES
Sale of merchandise goods 339,740,601,173 631,411,708,473
Rendering of services 542,158,592 4,632,661,752
VND
In which:
Sales to related parties 728,094,524 392,634,524 Current year Previous year
Sales to other parties 2,271,688,022,352 3,233,714,830,082 Advertising and promotion 279,018,248,262 299,559,730,302
Less (33,640,684,377) (93,982,717,729)
Labor cost 218,279,098,679 272,010,578,232
In which:
Sales discounts (17,106,354,538) (68,213,415,455) External services 166,792,324,116 158,286,853,600
Sales returns (16,534,329,839) (25,769,302,274) Depreciation and amortisation 15,291,153,766 38,844,551,267
NET REVENUE 2,238,775,432,499 3,140,124,746,877 Trademark license fees - 60,404,832,599
Others 38,549,424,721 68,104,290,169
TOTAL 717,930,249,544 897,210,836,169

KIDO GROUP
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 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued) NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued)
as at and for the year ended 31 December 2016 B09 - DN/HN as at and for the year ended 31 December 2016 B09 - DN/HN

24. GENERAL AND ADMINISTRATIve EXPENSES 27. CORPORATE INCOME TAX

VND During the year, the Company and its subsidiaries have the obligation to pay corporate income tax (CIT) at the
rate of 20% of taxable profits (2015: 22%), except for thetaxable profits from ice-cream and yogurt of Phu Dong
Current year Previous year
II project according to the Investment Certificate No. 41221000330 issued by the DPI of Ho Chi Minh City on 28
Labor cost 113,664,540,325 120,295,832,495 December 2010, as amended, which is entitled to an exemption from CIT for two (2) years from 2016, and a 50%
External services 74,563,922,442 71,172,395,743 reduction of the applicable CIT tax rate for four (4) years thereafter.
Maintenance and rental fees 28,630,710,679 44,390,199,645
The tax returns filed by the Company and its subsidiaries are subject to examination by the tax authorities.
Depreciation and amortization 24,088,829,728 82,617,380,977 Because the application of tax laws and regulations to many types of transactions is susceptible to varying
Provision for doubtful receivables 4,008,896,485 18,263,938,891 interpretations, amounts reported in the consolidated financial statements could change at a later date upon
Others 10,425,007,009 14,224,431,235 final determination by the tax authorities.
TOTAL 255,381,906,668 350,964,178,986 27.1 CIT expense

25. PRODUCTION AND OPERATING COSTS VND

VND Current year Previous year

Current CIT expense 327,210,557,812 1,397,629,407,050
Current year Previous year
Under-accrued CIT in previous years 1,046,103,626 16,469,565,987
Raw materials cost 748,263,591,397 1,340,474,918,160
Deferred tax income (4,945,622,907) (1,479,650,345)
External services 448,577,957,008 541,844,193,320
TOTAL 323,311,038,531 1,412,619,322,692
Labor costs 393,711,294,258 574,035,172,194
Cost of merchandise goods 309,794,184,108 432,392,992,690
Reconciliation between the CIT expense and accounting profit multiplied by CIT rate is presented below:
Depreciation and amortization 75,647,834,434 174,976,445,311
Others 361,849,900,032 149,128,634,801 VND
TOTAL 2,337,844,761,237 3,212,852,356,476 Current year Previous year
Accounting profit before tax 1,507,194,470,664 6,682,302,151,470
26. OTHER INCOME AND EXPENSES
At CIT rate of 20% (2015: 22%) 301,438,894,133 1,470,106,473,323
VND Adjustments:
Non-deductible expenses 36,904,440,244 18,237,110,235
Current year Previous year
Amortization of goodwill 1,191,859,818 4,533,999,926
Other income 38,601,764,837 11,148,941,897
Amortization of revalued intangible fixed assets 614,186,712 2,693,514,181
Reversal tax on changing of the using
34,594,000,000 - Shares of profit of joint venture and associates (25,932,503,685) (29,200,429,827)
purpose of land
Gains on disposal of fixed assets 394,835,303 3,007,653,736 Stock dividends from a subsidiary - (44,000,000,000)
Others 3,612,929,534 8,141,288,161 Others 8,048,057,683 (26,220,911,133)
Other expenses (14,317,340,560) (4,540,604,033) CIT expense during the year 322,264,934,905 1,396,149,756,705
Land rental fee (8,318,467,544) - Under-accrued CIT in previous years 1,046,103,626 16,469,565,987
Others (5,998,873,016) (4,540,604,033) CIT expense 323,311,038,531 1,412,619,322,692
NET 24,284,424,277 6,608,337,864
27.2 Current tax

The current CIT payable is based on taxable profit for the current year. Taxable profit differs from profit as
reported in the consolidated income statement because it excludes items of income or expense that are taxable
or deductible in other years and it further excludes items that are not taxable or deductible. The Groups liability
for current tax is calculated using tax rates that have been enacted by the balance sheet date.

KIDO GROUP
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 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued)
as at and for the year ended 31 December 2016 B09 - DN/HN

27. CORPORATE INCOME TAX (continued) 28. TRANSACTIONS WITH RELATED PARTIES (continued)

27.3 Deferred tax Significant transactions of the Group with its related parties during the year were as follows:
VND
The following are deferred tax assets and deferred tax liabilities recognized by the Group, and the movements
Related party Relationship Transaction Current year Previous year
thereon, during the current and previous years:
VND VDS Related party Advance for investments (1,604,843,336,480) -
Consolidated balance sheet Consolidated income statement Collection 566,990,569,980 -

Ending Beginning Current Previous Securities transaction fee (3,529,423,751) -

balance balance year year
Vocarimex Associate Purchase of raw materials and (418,845,202,870) (165,583,676,230)
Accrued expense 25,910,560,390 26,181,389,754 744,495,934 3,850,261,468 merchandise
Severance allowance 4,561,852,378 1,925,094,942 2,636,757,436 (1,625,797,704) Processing fees (8,006,306,748) (6,158,610,410)
Provision for
1,600,000,000 1,600,000,000 - (160,000,000) Golden Hope Nha Be Related party Purchase raw materials (50,896,235,501) (73,215,544,000)
short-term loan receivables
Cooking Oil Co. (GHC)
Others 3,212,961,354 86,614,608 1,564,369,537 (584,813,419)
Processing fees (2,560,831,264) (2,164,329,253)
TOTAL 35,285,374,122 29,793,099,304 4,945,622,907 1,479,650,345
Purchase merchandise - (3,236,511,446)
Details of movement of deferred tax assets during the year: Kido Land Corporation Related party Office rental income 2,560,606,060 2,227,272,727
(KDL)
VND
Phong Thinh Associate Capital contribution (2,000,000,000) -
Current year Previous year
North Kinh Do Co., Ltd. Former associate Purchase of finished goods (484,235,625) (27,107,324,069)
Beginning balance 29,793,099,304 35,823,601,560 (NKD)
Increase due to acquisition of a subsidiary 546,651,911 - Vegetable Oil Packing Related party Purchase oil packing (374,427,860) -
Disposal of a subsidiary - (7,510,152,601) Joint Stock Company
(VMPACK)
Deferred tax income during the year 4,945,622,907 1,479,650,345
Ending balance 35,285,374,122 29,793,099,304 Kido Investment Co., Related party Trademark license fees - (60,077,763,508)
Ltd. (KDI)

28. TRANSACTIONS WITH RELATED PARTIES MKD Former associate Rental and maintenance fees - 2,411,371,893

Terms and conditions of transactions with related parties

Related party transactions include all transactions undertaken with other companies to which the Group is
related, either through the investor, investee relationship or because they share a common investor and thus are
considered to be a part of the same corporate company. Sales and purchases to/from related parties are made
on the basis of negotiated contracts. Outstanding balances at the year-end are unsecured and interest free and
settlement occurs in cash.

KIDO GROUP
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 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued) NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued)
as at and for the year ended 31 December 2016 B09 - DN/HN as at and for the year ended 31 December 2016 B09 - DN/HN

28. TRANSACTIONS WITH RELATED PARTIES (continued) 28. TRANSACTIONS WITH RELATED PARTIES (continued)

Amounts due from and due to related parties at the balance sheet date were as follows: Remuneration to members of the Board of Directors, management and the Board of Supervision during the year
was as follows:
VND VND
Related party Relationship Transaction Ending balance Beginning balance Current year Previous year
Short-term trade receivables Salary and benefit in kind 36,007,932,759 28,994,381,810
Vocarimex Associate Sale of materials 3,423,419 -
GHC Related party Sale of materials 560,020 -
29. COMMITMENTS

Kido Saigon Bakery Joint Related party Sale of finished goods, materials Operating lease commitment
Stock Corporation (KDS) and supplies - 13,237,762,029
NKD Former associate Sale of finished goods - 28,917,075 The Group leases land, offices and warehouses under operating lease arrangements. The minimum lease
commitment as at the balance sheet date under the operating lease agreements is as follows:
3,983,439 13,266,679,104
VND
Other short-term receivables
Ending balance Beginning balance
VDS Related party Advances for investments 1,222,639,391,000 187,635,222,000
Within 1 year 91,479,199,984 56,889,724,624
KDS Related party Payment on behalf - 16,462,654,547
From 1 to 5 years 181,063,246,696 125,387,350,339
MKD Former associate Disposal of fixed assets - 910,644,505
More than 5 years 82,289,121,475 67,052,173,336
Payment on behalf - 460,247,772
TOTAL 354,831,568,155 249,329,248,299
NKD Former associate Payment on behalf - 550,000
Capital contribution obligation
1,222,639,391,000 205,469,318,824
Short-term trade payables As at the balance sheet date, the Group had outstanding capital contribution obligation to subsidiaries
amounting to VND 164,500,000,000.
Vocarimex Associate Purchase of raw materials (190,540,650,040) (11,627,814,504)
VMPACK Related party Purchase of packaging (411,870,646) -
KDL Related party Office rental (19,800,000) -
GHC Related party Purchase of raw materials and (1,757,132) (6,886,916,908)
processing fees
NKD Former associate Purchase of merchandise (5,177,066,842)
-
KDS Related party Purchase of finished goods (90,721,430)
-
MKD Former associate Purchase of finished goods - (2,328,399)
(190,974,077,818) (23,784,848,083)
Other short-term payables
KDI Related party Trademark license fees - (3,081,651,684)
MKD Former associate Payment on behalf - (982,441,368)

- (4,064,093,052)

KIDO GROUP
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 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued) NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued)
as at and for the year ended 31 December 2016 B09 - DN/HN as at and for the year ended 31 December 2016 B09 - DN/HN

30. SEGMENT INFORMATION 30. SEGMENT INFORMATION (continued)

The Groups principal activities are to process agricultural products, foods and cooking oil which include purified The following tables present revenue, profit and certain asset information regarding the Groups geographical
drinks and dairy products. The Group views these activities as a business segment. However, the Group manages segments: (continued)
its geographical segments based on the location of the Groups assets. Sales to external customers disclosed in
geographical segments are based on the geographical location of its customers. VND
South segment North segment Total
The Groups geographically segments comprise South and North of Vietnam. The following tables present
revenue, profit and certain asset information regarding the Groups geographical segments: Previous year
Segment revenue
VND
Sales to external customers 2,006,613,807,372 1,227,493,657,234 3,234,107,464,606
South segment North segment Total Sales deductions (59,858,341,957) (34,124,375,772) (93,982,717,729)
Current year Inter-segment sales 510,821,332,656 3,550,161,529 514,371,494,185
Segment revenue 2,457,576,798,071 1,196,919,442,991 3,654,496,241,062
Sales to external customers 1,951,880,777,166 320,535,339,710 2,272,416,116,876 Reconciliation:
Sales deductions (21,029,870,888) (12,610,813,489) (33,640,684,377) Elimination of
(514,371,494,185)
Inter-segment sales 303,446,150,897 67,272,727 303,513,423,624 inter-segment sales

2,234,297,057,175 307,991,798,948 2,542,288,856,123 Revenue for the year 3,140,124,746,877

Reconciliation: Segment results 6,452,866,767,550 95,079,140,238 6,547,945,907,788

Elimination of Reconciliation:
(303,513,423,624)
inter-segment sales Interest income 176,753,273,339
Revenue for the year 2,238,775,432,499 Interest expense (21,787,939,086)
Segment results 1,535,170,009,952 (87,793,998,292) 1,447,376,011,660 Amortization of goodwill (20,609,090,571)
Reconciliation: Profit before tax 6,682,302,151,470
Interest income 104,419,054,812 Other segment information
Interest expense (38,641,296,719) Depreciation and amortization 145,995,554,660 28,980,890,651 174,976,445,311
Amortization of goodwill (5,959,299,089) (Reversal of provision) provision for doubtful
18,292,158,022 (28,219,131) 18,263,938,891
Profit before tax 1,507,194,470,664 receivables

Other segment information (Reversal of provision) provision for obsolete

(7,320,572,518) (495,215,066) (7,815,787,584)
inventories
Depreciation and amortization 75,312,078,901 335,755,533 75,647,834,434
Reversal of provision for investments diminution 262,700,000 - 262,700,000
Reversal of provision for doubtful receivables (11,115,463,447) (155,593,869) (11,271,057,316)
Segment assets 6,906,919,650,333 2,049,213,908 6,908,968,864,241
Provision for obsolete inventories 6,415,885,155 - 6,415,885,155
Reconciliation:
Provision for investments diminution 177,411,120 - 177,411,120
Elimination of inter-segment receivables (184,859,821,854)
Segment assets 8,465,283,147,659 2,112,668,031 8,467,395,815,690
Total assets 6,724,109,042,387
Reconciliation:
Segment liabilities 1,358,157,500,528 185,239,097,383 1,543,396,597,911
Elimination of
(327,532,217,342) Reconciliation:
inter-segment receivables
Unallocated assets 709,156,591,630 Elimination of
(184,859,821,854)
inter-segment payables
Total assets 8,849,020,189,978
Total liabilities 1,358,536,776,057
Segment liabilities 2,643,204,513,909 327,678,405,888 2,970,882,919,797
Reconciliation:
Elimination of
(327,532,217,342)
inter-segment payables
Total liabilities 2,643,350,702,455

KIDO GROUP
www.kdc.vn ANNUAL REPORT 2016 Consolidated financial statements 110 111
 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued)
as at and for the year ended 31 December 2016 B09 - DN/HN

31. OFF BALANCE SHEET ITEMS

Ending balance Beginning balance

Foreign currencies:
- United States dollar (USD) 68,249 89,808
- Chinese Yuan Renminbi (CNY) 23,200 -
- Euro (EUR) 2,710 -
Bad debts written off (VND) 11,029,828,811 -

32. EVENTS AFTER THE BALANCE SHEET DATE

There has been no significant event occurring after the balance sheet date which would require adjustments or
disclosures to be made in the consolidated financial statements.

KIDO GROUP
www.kdc.vn ANNUAL REPORT 2016