VINAMILK 2023 ANNUAL REPORT CARE TO CHANGE 107

FINANCIAL STATEMENTS
Financial Statements Under VAS 108
Financial Statements Under IFRS 171
108 VINAMILK 2023 ANNUAL REPORT CARE TO CHANGE

CONSOLIDATED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2023
PREPARED IN ACCORDANCE WITH VIETNAMESE ACCOUNTING STANDARDS (VAS)

VIETNAM DAIRY PRODUCTS JOINT STOCK COMPANY

AND ITS SUBSIDIARIES
Corporate Information
Business Registration 4103001932 20 November 2003
Certificate No.
0300588569 6 December 2022

The Company’s business registration certificate has been amended several times,
the most recent of which is by the Business Registration Certificate No. 0300588569
dated 6 December 2022. The business registration certificate and its updates were
issued by Ho Chi Minh City Planning and Investment Department.

Board of Directors Mr. Nguyen Hanh Phuc Chairman

Mdm. Mai Kieu Lien Member
Mr. Lee Meng Tat Member
Ms. Dang Thi Thu Ha Member
Mr. Le Thanh Liem Member
Mr. Michael Chye Hin Fah Member
Mr. Do Le Hung Member
Mr. Alain Xavier Cany Member
Ms. Tieu Yen Trinh Member
Mr. Hoang Ngoc Thach Member

Board of Management Mdm. Mai Kieu Lien Chief Executive Officer

Executive Director – Human Resource
Ms. Bui Thi Huong
– Administration and Public Relation
Mr. Le Thanh Liem Executive Director – Finance
Mr. Nguyen Quang Tri Executive Director – Marketing
Mr. Le Hoang Minh Executive Director – Production
Executive Director – Research and
Mr. Nguyen Quoc Khanh
Development
Acting Executive Director – Raw
Mr. Doan Quoc Khanh Materials Development (from 1
September 2023)

Executive Director – Raw Materials

Mr. Trinh Quoc Dung
Development (until 1 August 2023)

Registered Office 10 Tan Trao, Tan Phu Ward, District 7, Ho Chi Minh City, Vietnam

Auditor KPMG Limited Vietnam

VINAMILK 2023 ANNUAL REPORT CARE TO CHANGE 109

Statement of the Board of Management

Statement of the responsibility of the Board of Management in respect of the consolidated financial statements

The Board of Management is responsible for the consolidated financial statements of Vietnam Dairy Products Joint Stock
Company (“the Company”) and its subsidiaries (together referred to as “the Group”) which give a true and fair view of
the consolidated financial position of the Group as at 31 December 2023 and of the consolidated results of operations
and consolidated cash flows for the year then ended. In preparing these consolidated financial statements, the Board of
Management is required to:

• select suitable accounting policies and then apply them consistently;

• make judgments and estimates that are reasonable and prudent; and

• prepare the consolidated financial statements on a going concern basis unless it is inappropriate to presume that
the Group will continue in business.

The Board of Management is responsible for ensuring that proper accounting records are maintained, which disclose, with
reasonable accuracy at any time, the consolidated financial position of the Group and which enable these consolidated
financial statements to be prepared which comply with Vietnamese Accounting Standards, the Vietnamese Accounting
System for enterprises and the relevant statutory requirements applicable to financial reporting. The Board of Management
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.

Approval of the consolidated financial statements

We hereby approve the accompanying consolidated financial statements set out on pages 111 to 170 which give a true
and fair view, in all material respects, of the consolidated financial position of the Group as at 31 December 2023, and of
the consolidated results of operations and cash flows for the year then ended in accordance with Vietnamese Accounting
Standards, the Vietnamese Accounting System for enterprises and the relevant statutory requirements applicable to
financial reporting.

On behalf of the Board of Management

Mai Kieu Lien

Chief Executive Officer

Ho Chi Minh City, 27 February 2024

110 VINAMILK 2023 ANNUAL REPORT CARE TO CHANGE

KPMG Limited Branch

10th Floor, Sun Wah Tower
115 Nguyen Hue Street, Ben Nghe Ward
District 1, Ho Chi Minh City, Vietnam
+84 (28) 3821 9266 | kpmg.com.vn

INDEPENDENT AUDITOR’S REPORT

To the Shareholders
Vietnam Dairy Products Joint Stock Company and its subsidiaries
We have audited the accompanying consolidated financial statements of Vietnam Dairy Products Joint Stock Company (“the
Company”) and its subsidiaries (together referred to as “the Group”), which comprise the consolidated statement of financial
position as at 31 December 2023, the consolidated statements of income and cash flows for the year then ended and the
explanatory notes thereto which were authorised for issue by the Company’s Board of Management on 27 February 2024, as
set out on pages 111 to 170.

Management’s Responsibility

The Company’s Board of Management is responsible for the preparation and fair presentation of these consolidated financial
statements in accordance with Vietnamese Accounting Standards, the Vietnamese Accounting System for enterprises and
the relevant statutory requirements applicable to financial reporting, and for such internal control as the Board of Management
determines is necessary to enable the preparation of the consolidated financial statements that are free from material
misstatement, whether due to fraud or error.

Auditor’s Responsibility

Our responsibility is to express an opinion on these consolidated financial statements based on our audit. We conducted
our audit in accordance with Vietnamese Standards on Auditing. Those standards require that we comply with ethical
requirements and plan and perform the audit to obtain reasonable assurance about whether the consolidated financial
statements are free of material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial
statements. The procedures selected depend on the auditor’s judgement, including the assessment of the risks of material
misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor
considers internal control relevant to the Company’s preparation and fair presentation of the 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 Company’s internal control. An audit also includes evaluating the appropriateness of accounting policies
used and the reasonableness of accounting estimates made by the Company’s Board of Management, as well as evaluating
the overall presentation of the financial statements.

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

Auditor’s Opinion

In our opinion, the consolidated financial statements give a true and fair view, in all material respects, of the consolidated
financial position of Vietnam Dairy Products Joint Stock Company and its subsidiaries as at 31 December 2023 and of their
consolidated results of operations and their consolidated cash flows for the year then ended in accordance with Vietnamese
Accounting Standards, the Vietnamese Accounting System for enterprises and the relevant statutory requirements applicable
to financial reporting.

KPMG Limited’s Branch in Ho Chi Minh City, Vietnam

Audit Report No.: 22-01-00293-23-6

Nelson Rodriguez Casihan Ha Vu Dinh

Practicing Auditor Registration Practicing Auditor Registration
Certificate No. 2225-2023-007-1 Certificate No. 2225-2023-007-1
Deputy General Director
Ho Chi Minh City, 27 February 2024
VINAMILK 2023 ANNUAL REPORT CARE TO CHANGE 111

VIETNAM DAIRY PRODUCTS JOINT STOCK COMPANY AND ITS SUBSIDIARIES

CONSOLIDATED STATEMENT OF FINANCIAL POSITION Form B 01 – DN/HN

AS AT 31 DECEMBER 2023 (Issued under Circular No. 202/2014/TT-BTC
dated 22 December 2014 of the Ministry of Finance)

31/12/2023 1/1/2023
Code Note VND VND

ASSETS

Current assets
(100 = 110 + 120 + 130 + 140 + 150) 100 35,935,879,621,477 31,560,382,174,201

Cash and cash equivalents 110 V.1 2,912,027,359,925 2,299,943,527,624

Cash 111 1,025,487,470,250 1,327,429,518,437

Cash equivalents 112 1,886,539,889,675 972,514,009,187

Short-term financial investments 120 20,137,243,800,460 17,414,055,328,683

Trading securities 121 V.4(a) 1,193,065,962 1,159,355,253

Allowance for diminution in the value of 122 V.4(a) (822,663,402) (689,745,197)

trading securities

Held-to-maturity investments 123 V.4(b) 20,136,873,397,900 17,413,585,718,627

Accounts receivable – short-term 130 6,529,705,184,034 6,100,402,870,854

Accounts receivable from customers 131 4,808,183,557,645 4,633,942,510,271

Prepayments to suppliers 132 655,619,313,409 589,439,884,812

Other short-term receivables 136 V.3(a) 1,080,803,411,003 890,466,200,571

Allowance for doubtful debts 137 V.2 (14,901,098,023) (13,445,724,800)

Inventories 140 V.5 6,128,081,805,088 5,537,563,396,117

Inventories 141 V.5 6,165,935,294,543 5,560,169,453,504

Allowance for inventories 149 V.5 (37,853,489,455) (22,606,057,387)

Other current assets 150 228,821,471,970 208,417,050,923

Short-term prepaid expenses 151 V.11(a) 82,860,441,483 97,570,693,043

Deductible value added tax 152 99,428,954,456 89,204,099,539

Taxes receivable from State Treasury 153 46,532,076,031 21,642,258,341

The
The accompanying
accompanying notes
notes are
are an
an integral
integral part
part of
of these
these consolidated
consolidated financial
financial statements
statements
112 VINAMILK 2023 ANNUAL REPORT CARE TO CHANGE

VIETNAM DAIRY PRODUCTS JOINT STOCK COMPANY AND ITS SUBSIDIARIES

CONSOLIDATED STATEMENT OF FINANCIAL POSITION Form B 01 – DN/HN

AS AT 31 DECEMBER 2023 (CONTINUED) (Issued under Circular No. 202/2014/TT-BTC
dated 22 December 2014 of the Ministry of Finance)
31/12/2023 1/1/2023
Code Note VND VND

Long-term assets
(200 = 210 + 220 + 230 + 240 + 250 +260) 200 16,737,491,482,983 16,922,282,062,019

Accounts receivable – long-term 210 16,131,990,975 38,422,722,715

Other long-term receivables 216 V.3(b) 16,131,990,975 38,422,722,715

Fixed assets 220 12,689,652,377,511 11,903,207,642,940

Tangible fixed assets 221 V.6 11,688,520,305,045 10,860,366,507,422

Cost 222 31,109,174,369,693 28,502,157,270,867

Accumulated depreciation 223 (19,420,654,064,648) (17,641,790,763,445)

Intangible fixed 227 V.7 1,001,132,072,466 1,042,841,135,518

Cost 228 1,366,405,903,459 1,353,423,614,905

Accumulated amortisation 229 (365,273,830,993) (310,582,479,387)

Investment property 230 V.8 55,594,154,394 57,593,807,783

Cost 231 98,822,678,885 98,822,678,885

Accumulated depreciation 232 (43,228,524,491) (41,228,871,102)

Long-term work in progress 240 936,923,649,898 1,805,129,940,386

Long-term work in progress 241 V.9 381,979,710,802 334,547,387,349

Construction in progress 242 V.10 554,943,939,096 1,470,582,553,037

Long-term financial investments 250 831,227,597,345 742,670,306,431

Investments in associates, joint venture 252 V.4(c) 602,591,028,932 664,302,778,018

Equity investments in other entities 253 V.4(c) 101,975,059,081 101,950,219,081

Allowance for diminution in the value of long- 254 V.4(c) (23,582,690,668) (23,582,690,668)
term financial investments

Held-to-maturity investments 255 V.4(b) 150,244,200,000 -

Other non-current assets 260 2,207,961,712,860 2,375,257,641,764

Long-term prepaid expenses 261 V.11(b) 871,585,543,337 772,804,663,141

Deferred tax assets 262 V.12(a) 14,448,509,586 34,985,203,461

Goodwill 269 V.13 1,321,927,659,937 1,567,467,775,162

TOTAL ASSETS (270 = 100 + 200) 270 52,673,371,104,460 48,482,664,236,220

The accompanying notes are an integral part of these consolidated financial statements
VINAMILK 2023 ANNUAL REPORT CARE TO CHANGE 113

VIETNAM DAIRY PRODUCTS JOINT STOCK COMPANY

CONSOLIDATED STATEMENT OF FINANCIAL POSITION Form B 01 – DN/HN

AS AT 31 DECEMBER 2023 (CONTINUED) (Issued under Circular No. 202/2014/TT-BTC
dated 22 December 2014 of the Ministry of Finance)
31/12/2023 1/1/2023
Code Note VND VND

RESOURCES

LIABILITIES (300 = 310 + 330) 300 17,647,627,338,990 15,666,145,881,135

Current liabilities 310 17,138,689,974,862 15,308,423,081,524

Accounts payable to suppliers 311 V.14 3,805,885,429,198 4,284,158,390,163

Advances from customers 312 164,712,782,108 161,708,567,120

Taxes payable to State Treasury 313 V.16 967,878,916,785 598,135,128,295

Payables to employees 314 289,224,237,367 287,914,221,269

Accrued expenses 315 V.17 1,910,204,625,860 1,620,874,538,443

Short-term unearned revenue 318 263,912,729 4,161,405,120

Other short-term payables 319 V.18 1,193,900,858,465 3,055,541,590,234

Short-term borrowings 320 V.15(a) 8,217,757,172,267 4,867,129,839,103

Provision 321 V.19 16,770,514,285 26,635,759,312

Bonus and welfare fund 322 V.20 572,091,525,798 402,163,642,465

Long-term liabilities 330 508,937,364,128 357,722,799,611

Other long-term payables 337 V.18 1,063,378,252 3,711,780,002

Long-term borrowings 338 V.15(b) 238,476,074,100 66,028,725,000

Deferred tax liabilities 341 V.12(b) 269,397,911,776 287,982,294,609

EQUITY (400 = 410) 400 35,025,743,765,470 32,816,518,355,085

Owners’ equity 410 V.21 35,025,743,765,470 32,816,518,355,085

Share capital 411 V.22 20,899,554,450,000 20,899,554,450,000

Share premium 412 34,110,709,700 34,110,709,700

Other capital 414 499,080,803,215 202,658,418,215

Foreign exchange differences 417 174,100,152,253 92,498,048,227

The accompanying notes are an integral part of these consolidated financial statements
114 VINAMILK 2023 ANNUAL REPORT CARE TO CHANGE

VIETNAM DAIRY PRODUCTS JOINT STOCK COMPANY AND ITS SUBSIDIARIES

CONSOLIDATED STATEMENT OF FINANCIAL POSITION Form B 01 – DN/HN

AS AT 31 DECEMBER 2023 (CONTINUED) (Issued under Circular No. 202/2014/TT-BTC
dated 22 December 2014 of the Ministry of Finance)

31/12/2023 1/1/2023
Code Note VND VND

Investment and development fund 418 6,163,736,586,996 5,266,761,584,973

Retained profits 421 3,926,232,003,987 3,353,468,092,666

- Retained profits brought forward 421a 1,068,453,760,015 2,682,865,082,625

- Profit for the current year 421b 2,857,778,243,972 670,603,010,041

Non-controlling interest 429 3,328,929,059,319 2,967,467,051,304

TOTAL RESOURCES (440 = 300 + 400) 440 52,673,371,104,460 48,482,664,236,220

27 February 2024

Prepared by Approved by:

Le Thanh Liem Mai Kieu Lien

Executive Director – Finance Chief Executive Officer

cum Chief Accountant

The accompanying notes are an integral part of these consolidated financial statements
VINAMILK 2023 ANNUAL REPORT CARE TO CHANGE 115

VIETNAM DAIRY PRODUCTS JOINT STOCK COMPANY AND ITS SUBSIDIARIES

CONSOLIDATED STATEMENT OF INCOME Form B 02 – DN/HN
(Issued under Circular No. 202/2014/TT-BTC
FOR THE YEAR ENDED 31 DECEMBER 2023 dated 22 December 2014 of the Ministry of Finance)

2023 2022
Code Note VND VND

Revenue from sales of goods and 01 VI.1 60,478,912,566,740 60,074,730,223,299

provision of services

Revenue deductions 02 VI.1 109,997,055,235 118,483,025,881

Net revenue (10 = 01 - 02) 10 VI.1 60,368,915,511,505 59,956,247,197,418

Cost of sales 11 VI.2 35,824,183,896,095 36,059,015,690,711

Gross profit (20 = 10 - 11) 20 24,544,731,615,410 23,897,231,506,707

Financial income 21 VI.3 1,716,367,576,333 1,379,904,407,740

Financial expenses 22 VI.4 503,122,771,214 617,537,182,995

In which: Interest expense 23 354,094,837,255 166,039,091,744

Share of loss in associates and joint venture 24 V.4(c) (80,631,298,646) (24,475,976,403)

Selling expenses 25 VI.5 13,018,093,111,879 12,548,212,246,871

General and administration expenses 26 VI.6 1,755,619,128,197 1,595,845,681,078

Net operating profit

30 10,903,632,881,807 10,491,064,827,100
{30 = 20 + (21 - 22) + 24 - (25 + 26)}

Other income 31 VI.7 353,408,891,551 289,021,799,127

Other expenses 32 VI.8 289,142,381,872 284,551,949,482

Results of other activities (40 = 31 - 32) 40 64,266,509,679 4,469,849,645

Profit before tax (50 = 30 + 40) 50 10,967,899,391,486 10,495,534,676,745

Income tax expense – current 51 VI.10 1,948,363,404,628 1,956,248,296,285

Income tax expense/(benefit) – deferred 52 VI.10 181,821,807 (38,288,939,248)

Net profit after tax (60 = 50 - 51 - 52)

60 9,019,354,165,051 8,577,575,319,708
(carried forward to next page)

The accompanying notes are an integral part of these consolidated financial statements
116 VINAMILK 2023 ANNUAL REPORT CARE TO CHANGE

VIETNAM DAIRY PRODUCTS JOINT STOCK COMPANY AND ITS SUBSIDIARIES

CONSOLIDATED STATEMENT OF INCOME Form B 02 – DN/HN
(Issued under Circular No. 202/2014/TT-BTC
FOR THE YEAR ENDED 31 DECEMBER 2023 dated 22 December 2014 of the Ministry of Finance)

2023 2022
Code Note VND VND

Net profit after tax (60 = 50 - 51 - 52)

60 9,019,354,165,051 8,577,575,319,708
(brought forward from previous page)

Attributable to:

Equity holders of the Company 61 8,873,812,416,864 8,516,023,694,342

Non-controlling interest 62 145,541,748,187 61,551,625,366

Basic earnings per share 70 VI.11 3,796 3,632

27 February 2024

Prepared by Approved by

Le Thanh Liem Mai Kieu Lien

Executive Director – Finance Chief Executive Officer

cum Chief Accountant

The accompanying notes are an integral part of these consolidated financial statements
VINAMILK 2023 ANNUAL REPORT CARE TO CHANGE 117

VIETNAM DAIRY PRODUCTS JOINT STOCK COMPANY AND ITS SUBSIDIARIES

CONSOLIDATED STATEMENT OF CASH FLOWS Form B 03 – DN/HN
(Issued under Circular No. 202/2014/TT-BTC
FOR THE YEAR ENDED 31 DECEMBER 2023 dated 22 December 2014 of the Ministry of Finance)
(INDIRECT METHOD)

2023 2022
Code Note VND VND

CASH FLOWS FROM OPERATING ACTIVITIES

Profit before tax 01 10,967,899,391,486 10,495,534,676,745

Adjustments for

Depreciation and amortisation 02 2,054,586,864,472 2,095,449,858,677

Amortisation of goodwill 02 V.13 245,540,115,225 245,540,115,225

Allowances and provisions 03 26,862,358,183 (4,572,925,078)

Exchange losses arising from revaluation

of monetary items denominated in foreign 04 7,448,121,735 3,222,766,873
currencies

Losses on disposals/written off of fixed assets 05 65,791,983,817 88,472,438,579

and construction in progress

Dividends, interest income and other gain from

05 (1,543,397,439,960) (1,210,689,718,561)
investment activities

Share of loss in associates and joint venture 05 80,631,298,646 24,475,976,403

Interest expense 06 VI.4 354,094,837,255 166,039,091,744

Operating profit before changes in

08 12,259,457,530,859 11,903,472,280,607
working capital

Change in receivables 09 (244,987,138,316) (288,077,307,677)

Change in inventories 10 (1,021,313,389,573) 851,263,069,739

Change in payables and other liabilities 11 (443,378,131,758) (386,032,574,554)

Change in prepaid expenses 12 7,868,182,212 (73,120,062,114)

Interest paid 14 (302,707,839,570) (141,304,083,849)

Income tax paid 15 V.16 (1,564,073,949,237) (1,975,289,763,439)

Other payments for operating activities 17 (803,441,702,254) (1,063,638,382,197)

Net cash flows from operating activities 20 7,887,423,562,363 8,827,273,176,516

The accompanying notes are an integral part of these consolidated financial statements
118 VINAMILK 2023 ANNUAL REPORT CARE TO CHANGE

VIETNAM DAIRY PRODUCTS JOINT STOCK COMPANY AND ITS SUBSIDIARIES

CONSOLIDATED STATEMENT OF CASH FLOWS Form B 03 – DN/HN
(Issued under Circular No. 202/2014/TT-BTC
FOR THE YEAR ENDED 31 DECEMBER 2023 dated 22 December 2014 of the Ministry of Finance)
(INDIRECT METHOD - CONTINUED)

2023 2022
Code Note VND VND

CASH FLOWS FROM INVESTING ACTIVITIES

Payments for additions to fixed assets and other

21 (1,579,637,140,762) (1,456,914,052,616)
long-term assets

Receipts from disposals of fixed assets and

22 104,880,785,286 137,125,557,857
construction in progress

Payments for term deposits 23 (2,856,303,791,352) -

Receipts from term deposits 24 - 3,634,715,046,607

Payments for investments in other entities 25 (35,769,832,735) (43,175,000,000)

Collections from investments in other entities 26 10,570,000,000 -

Receipts of interest and dividends 27 1,367,711,469,062 1,201,019,963,250

Net cash flows from investing activities 30 (2,988,548,510,501) 3,472,771,515,098

CASH FLOWS FROM FINANCING ACTIVITIES

Proceeds from capital contribution by non-

31 489,787,009,008 338,100,000,000
controlling interest to a subsidiary

Capital refunded to a non-controlling interest of

32 (142,548,827,636) -
a dissolved subsidiary

Proceeds from borrowings 33 11,788,416,965,803 6,257,530,054,586

Payments to settle loan principals 34 (8,276,832,556,495) (10,789,019,801,789)

Payments of dividends 36 (8,046,328,463,250) (8,046,328,463,250)

Payments of dividends of subsidiaries to non-

36 (105,267,788,700) (120,571,155,470)
controlling interest

Net cash flows from financing activities 40 (4,292,773,661,270) (12,360,289,365,923)

The accompanying notes are an integral part of these consolidated financial statements
VINAMILK 2023 ANNUAL REPORT CARE TO CHANGE 119

VIETNAM DAIRY PRODUCTS JOINT STOCK COMPANY AND ITS SUBSIDIARIES

CONSOLIDATED STATEMENT OF CASH FLOWS Form B 03 – DN/HN
(Issued under Circular No. 202/2014/TT-BTC
FOR THE YEAR ENDED 31 DECEMBER 2023 dated 22 December 2014 of the Ministry of Finance)
(INDIRECT METHOD – CONTINUED)

2023 2022
Code Note VND VND

Net cash flows during the year

50 606,101,390,592 (60,244,674,309)
(50 = 20 + 30 + 40)

Cash and cash equivalents

60 2,299,943,527,624 2,348,551,874,348
at the beginning of the year

Effect of exchange rate fluctuations

61 (673,070,965) (1,729,154,879)
on cash and cash equivalents

Currency translation differences 62 6,655,512,674 13,365,482,464

Cash and cash equivalents

70 V.1 2,912,027,359,925 2,299,943,527,624
at the end of the year (70 = 50 + 60 + 61 + 62)

27 February 2024

Prepared by Approved by

Le Thanh Liem Mai Kieu Lien

Executive Director – Finance Chief Executive Officer

cum Chief Accountant

The accompanying notes are an integral part of these consolidated financial statements
120 VINAMILK 2023 ANNUAL REPORT CARE TO CHANGE

VIETNAM DAIRY PRODUCTS JOINT STOCK COMPANY AND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS Form B 09 – DN/HN
FOR THE YEAR ENDED 31 DECEMBER 2023 (Issued under Circular No. 202/2014/TT-BTC
dated 22 December 2014 of the Ministry of Finance)

These notes form an integral part of and should be read in conjunction with the accompanying consolidated
financial statements.

I. CORPORATE INFORMATION

1. Ownership structure

Vietnam Dairy Products Joint Stock Company (“the Company”) is incorporated as a joint stock company in Vietnam.

Major milestones related to the establishment and development of the Company and its subsidiaries (collectively referred
to as “the Group”) are achieved as follows:

20 August 1976 The Company was established on the basis of three dairy factories: Thong Nhat Dairy Factory,
Truong Tho Dairy Factory, Dielac Powdered Milk Factory.

29 April 1993 Vietnam Dairy Products Company was established according to Decision No. 420/CNN/TCLD
issued by the Ministry of Light Industry in form of a State-owned Enterprise.

1 October 2003 The Company was equitised from a State-owned Enterprise of the Ministry of Industry
according to Decision No. 155/2003/QĐ-BCN.

20 November 2003 The Company was registered as a joint stock company and began operating under Enterprise
Laws of Vietnam and its Business Registration Certificate No. 4103001932 was issued by Ho
Chi Minh City Planning and Investment Department.

28 December 2005 The State Securities Commission of Vietnam issued Listed Licence No.42/UBCK-GPNY.

19 January 2006 The Company’s shares were listed on Ho Chi Minh City Stock Exchange.

14 December 2006 Vietnam Dairy Cow One Member Limited Company was established in accordance with the
Business License No. 150400003 issued by the Department of Planning and Investment of
Tuyen Quang Province.

21 October 2013 Thong Nhat Thanh Hoa Dairy Cow Limited Company was established in accordance to Business
Registration Certificate No. 2801971744 issued by the Department of Investment and Planning
of Thanh Hoa Province.

6 December 2013 The Company received Foreign Investment Certificate No. 663/BKHĐT-ĐTRNN issued by
the Ministry of Investment and Planning, investing in Driftwood Dairy Holding Corporation in
California, the United States of America. As at 31 December 2013, the Company completed a
transfer of its investment of USD7 million and held 70% of ownership in Driftwood Dairy Holding
Corporation.

6 January 2014 The Company received Foreign Investment Certificate No. 667/BKHĐT-ĐTRNN issued by the
Ministry of Investment and Planning, investing in Angkor Dairy Products Co., Ltd. in Phnom
Penh, Cambodia with 51% of ownership.

30 May 2014 The Company received Foreign Investment Certificate No. 709//BKHĐT-ĐTRNN issued by the
Ministry of Investment and Planning, to establish Vinamilk Europe sp.z.o.o in Poland with 100%
of ownership.
VINAMILK 2023 ANNUAL REPORT CARE TO CHANGE 121

VIETNAM DAIRY PRODUCTS JOINT STOCK COMPANY AND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS Form B 09 – DN/HN
FOR THE YEAR ENDED 31 DECEMBER 2023 (CONTINUED) (Issued under Circular No. 202/2014/TT-BTC
dated 22 December 2014 of the Ministry of Finance)

19 May 2016 The Company received Foreign Investment Certificate No. 201600140 issued by the Ministry
of Investment and Planning, approved additional investment in Driftwood Dairy Holding
Corporation amounted to USD3 million. As at 30 June 2016, the Company completed a transfer
of its investment of USD3 million, bringing the total investment to USD10 million and increased
ownership percentage in Driftwood Dairy Holding Corporation from 70% to 100%.

31 July 2017 On 23 March 2017, the Company received its first revised offshore investment registration
certificate dated 10 March 2017 issued by the Ministry of Planning and Investment of Vietnam,
in relation to Angkor Dairy Products Co., Ltd. (“Angkormilk”). Accordingly, the Company’s total
investment capital increased from USD10,210,000 to USD20,995,390. The reason of capital
increase was to purchase the entire capital contribution of the local partner in Angkormilk. As at
31 July 2017, the Company completed the transfer of its investment, bringing the total investment
to USD20.9 million and increased ownership percentage in Angkormilk from 51% to 100%.

21 October 2017 On 30 September 2017, the Company entered into an agreement to acquire the remaining
3.89% of its equity interest in Thong Nhat Thanh Hoa Limited Company from non-controlling
shareholders. The transaction was completed on 21 October 2017.

1 November 2017 On 25 October 2017, the Company entered into an agreement to purchase newly issued shares
of Khanh Hoa Sugar Joint Stock Company and took 65% equity interest. The transaction
was completed on 1 November 2017. From 14 November 2017, Khanh Hoa Sugar Joint Stock
Company changed its name to Viet Nam Sugar Joint Stock Company.

23 November 2018 In July 2018, the Company entered into an agreement to acquire 51% equity interest of Lao-
Jagro Development Xiengkhouang Co., Ltd to develop a high-tech beef – dairy farm complex.
The transaction was completed on 23 November 2018. On 29 January 2019, the Company
invested VND51,547 million representing its percentage of equity interest in this entity following
the shareholders’ decision. On 1 April 2019 and 15 July 2021, the Company paid VND154,391
million and VND20,790 million, respectively, to the former owners according to the Share
Purchase Agreement.

23 November 2018 In July 2018, the Company entered into an agreement to acquire 51% equity interest of Lao-
Jagro Development Xiengkhouang Co., Ltd to develop a high-tech beef – dairy farm complex.
The transaction was completed on 23 November 2018. On 29 January 2019, the Company
invested VND51,547 million representing its percentage of equity interest in this entity following
the shareholders’ decision. On 1 April 2019 and 15 July 2021, the Company paid VND154,391
million and VND20,790 million, respectively, to the former owners according to the Share
Purchase Agreement.

12 September 2019 The Company received the second revised Oversea Investment Registration Certificate no.
201600140 in which the Company’s investment in its 100% owned subsidiary named Driftwood
Dairy Holding Corporation in California, United States increased from USD10 million to USD20
million. As at 30 September 2019, the Company completed the transfer of its investment.

19 December 2019 The Company completed its acquisitions of 75% of equity interest of GTNFoods Joint Stock
Company through various acquisition transactions.

10 August 2020 The Company received the first amendment of the foreign Investment Registration Certificate
dated 10 August 2020 from the Ministry of Planning and Investment to increase the Company’s
investment capital in Lao-Jagro from USD25,411,924 to USD66,413,630.

19 November 2020 The Company’s Board of Directors approved the resolution to close the subsidiary Vinamilk
Europe Spóstka Z Ograniczona Odpowiedzialnoscia. In November 2021, the Company collected
VND42,195 million from the dissolution. The dissolution was completed in 2022.
122 VINAMILK 2023 ANNUAL REPORT CARE TO CHANGE

VIETNAM DAIRY PRODUCTS JOINT STOCK COMPANY AND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS Form B 09 – DN/HN
FOR THE YEAR ENDED 31 DECEMBER 2023 (CONTINUED) (Issued under Circular No. 202/2014/TT-BTC
dated 22 December 2014 of the Ministry of Finance)

1 March 2021 Vibev Food and Beverage Joint Venture Company Limited, 51% owned subsidiary, was
established in accordance with the Business License No. 0316724859 issued by the Ho Chi
Minh City Planning and Investment Department. On 9 April 2021 and 10 June 2021, the Company
contributed capital amounting to VND51,000 million and VND153,000 million, respectively, to
Vibev Food and Beverage Joint Venture Company Limited for the establishment of this subsidiary.

19 April 2021 On 19 April 2021 and 29 December 2021, the Company contributed capital amounting
to VND328,578 million and VND11,232 million, respectively, to Lao-Jagro Development
Xiengkhouang Co., Ltd.

27 September 2021 Japan Vietnam Livestock Company Limited, 51% owned subsidiary of Vietnam Livestock
Corporation – Joint Stock Company, was established in accordance with the Business License
No. 0109752537 issued by the Ha Noi City Planning and Investment Department. Vietnam
Livestock Corporation – Joint Stock Company contributed capital amounting to VND23,460
million to Japan Vietnam Livestock Company Limited for the establishment of this subsidiary.

9 March 2022 The Company contributed additional capital amounting to USD8,220,273 (equivalent to
VND188,902 million) to Lao-Jargo Development Xiengkhouang Co., Ltd.

14 March 2022 The entire shares of GTNFoods Joint Stock Company owned by the Company were swapped
with 117,187,500 shares of Vietnam Livestock Corporation – Joint Stock Company. Thereafter,
GTNFoods Joint Stock Company was merged into Vietnam Livestock Corporation – Joint Stock
Company.

30 November 2022 The Company’s Board of Directors approved the resolution to dissolve Vibev Food and
Beverage Joint Venture Company Limited. During the second quarter of 2023, the dissolution
was completed.

22 December 2022 Vietnam Livestock Corporation – Joint Stock Company contributed additional capital amounting
to VND351,900 million to Japan Vietnam Livestock Company Limited.

21 March 2023 The Company contributed additional capital amounting to VND11,875 million (equivalent to
USD500,000) to Del Monte – Vinamilk Dairy Phillipines, Inc.

18 May 2023 The Company contributed additional capital amounting to VND59.6 million (equivalent to
USD2,521) to Angkor Dairy Products Co., Ltd.

28 June 2023 Vietnam Livestock Corporation – Joint Stock Company contributed additional capital amounting
to VND351,900 million to Japan Vietnam Livestock Company Limited.

22 August 2023 The Company contributed additional capital amounting to VND23,895 million (equivalent to
USD999,993) to Del Monte – Vinamilk Dairy Phillipines, Inc.

28 August 2023 The Company purchased 29,296,875 additional shares in total of 40,145,438 shares issued
by Vietnam Livestock Corporation – Joint Stock Company for a consideration of VND410,156
million. As the result, the Company’s ownership in Vietnam Livestock Corporation – Joint Stock
Company, Moc Chau Dairy Cattle Breeding Joint Stock Company, and Japan Vietnam Livestock
Company Limited has increased.
VINAMILK 2023 ANNUAL REPORT CARE TO CHANGE 123

VIETNAM DAIRY PRODUCTS JOINT STOCK COMPANY AND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS Form B 09 – DN/HN
FOR THE YEAR ENDED 31 DECEMBER 2023 (CONTINUED) (Issued under Circular No. 202/2014/TT-BTC
dated 22 December 2014 of the Ministry of Finance)

2. Principal activities

The principal activities of the Group are to:

• Process, manufacture and distribute milk cake, soya milk, fresh milk, refreshment drinks, bottled milk, powdered milk,
nutritious powder and other products from milk;

• Trade in food technology, spare parts, equipment, materials and chemicals;

• Trade in real estate, own or lease land use rights (according to Article no. 11.3 of 2014 Real Estate Law);

• Trade in warehouse, yards;

• Provide internal transportation by cars for manufacturing and consuming Company’s products;

• Manufacture, sell and distribute beverages, grocery and processing foods, roasted-ground-filtered and instant coffee
(not manufacturing and processing at the head office);

• Manufacture and sell plastic, packaging (not at the head office);

• Provide healthcare clinic services (not at the head office);

• Raise cattle, cultivation;

• Retail sugar, milk and products from milk, bread, jam, candy and products processed from cereal, flour, starch and other food;

• Retail alcoholic drinks, non-alcoholic drinks (carbonated and non-carbonated soft drinks), natural mineral water, low-
alcoholic or non-alcoholic wine and beer;

• Manufacture and trade products from tea and wine; and

• Manufacture, breed, process and trade cattle and poultry products and premix products for livestock.

3. Normal operating cycle

The normal operating cycle of the Company is generally within 12 months.

124 VINAMILK 2023 ANNUAL REPORT CARE TO CHANGE

VIETNAM DAIRY PRODUCTS JOINT STOCK COMPANY AND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS Form B 09 – DN/HN
FOR THE YEAR ENDED 31 DECEMBER 2023 (CONTINUED) (Issued under Circular No. 202/2014/TT-BTC
dated 22 December 2014 of the Ministry of Finance)

4. Group structure

As at 31 December 2023, the Group had 9 subsidiaries and 8 associates, 1 joint venture and dependent units (1/1/2023:10
subsidiaries, 8 associates, 1 joint venture and dependent units) as follows:

(a) Subsidiaries
Economic interest
Name Location Principal activities
31/12/2023 1/1/2023

Directly owned subsidiaries

Vietnam Dairy Cow One 10 Tan Trao, Tan Phu Ward, District
Dairy cow raising 100.00% 100.00%
Member Limited Company 7, Ho Chi Minh City

Thong Nhat Thanh Hoa

Ward 1, Thong Nhat Town, Yen Milk production and
Dairy Cow One Member 100.00% 100.00%
Dinh District, Thanh Hoa Province cattle raising
Limited Company

No, 10724, Street Lower Azusa and

Driftwood Dairy Holding
El Monte Boulevards Intersection, Milk production 100.00% 100.00%
Corporation
California 91731-1390, United States

Lot P2-096 and P2-097, Phnom

Penh Special Economic Zone
Angkor Dairy Products
(PPSEZ), National Highway 4, Khan Milk production 100.00% 100.00%
Co,, Ltd,
Posenchey, Phnom Penh, Kingdom
of Cambodia

Thuy Xuong Village, Suoi Hiep

Vietnam Sugar Joint Stock Sugar producing
Commune, Dien Khanh District, 65.00% 65.00%
Company and refining
Khanh Hoa Province

Dairy cow raising and

Lao-Jagro Development Boungvene Village, Paek District,
agricultural products 87.32% 87.32%
Xiengkhouang Co,, Ltd, Xiengkhouang Province, Lao PDR
trading

Manufacturing,
Vietnam Livestock
519 Minh Khai, Vinh Tuy Ward, Hai breeding, processing
Corporation – Joint Stock 68.94% 68.00%
Ba Trung District, Ha Noi City and trading of cattle
Company (**)
and poultry products

Vietnam Livestock
10 Tan Trao, Tan Phu Ward, District Producing ice cream
Corporation – Joint Stock - 51.00%
7, Ho Chi Minh City and beverages
Company (**)

Indirectly owned subsidiaries through Vietnam Livestock Corporation – Joint Stock Company

Moc Chau Dairy Cattle Km194 Moc Chau Farm Town,

Processing of milk and
Breeding Joint Stock Phieng Luong, Moc Chau District, 49.73% 49.17%
dairy products
Company (**) Son La Province

Importing, processing
Japan Vietnam Livestock 519 Minh Khai, Vinh Tuy Ward, Hai
and trading beef 35.16% 34.68%
Company Limited (**) Ba Trung District, Ha Noi City
products
VINAMILK 2023 ANNUAL REPORT CARE TO CHANGE 125

VIETNAM DAIRY PRODUCTS JOINT STOCK COMPANY AND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS Form B 09 – DN/HN
FOR THE YEAR ENDED 31 DECEMBER 2023 (CONTINUED) (Issued under Circular No. 202/2014/TT-BTC
dated 22 December 2014 of the Ministry of Finance)

(*) On 30 November 2022, the Company’s Board of Directors approved the resolution to dissolve this subsidiary. During the
second quarter of 2023, the dissolution was completed.

(**) On 28 August 2023, The Company purchased 29,296,875 additional shares in total of 40,145,438 shares issued by Vietnam
Livestock Corporation – Joint Stock Company for a consideration of VND410,156 million. As the result, the Company’s ownership in
Vietnam Livestock Corporation – Joint Stock Company, Moc Chau Dairy Cattle Breeding Joint Stock Company, and Japan Vietnam
Livestock Company Limited has increased.

(b) Associates, joint venture

Economic interest
Name Location Principal activities
31/12/2023 1/1/2023

Directly owned associates, joint venture

Miraka Holdings Limited 108 Tuwharetoa, Taupo, New

Milk production 13.55% 16.96%
(*) Zealand

No. 18A, VSIP II-A, 27 Street, Viet

Nam – Singapore II-A Industrial Food raw materials
APIS Corporation 20.00% 20.00%
Zone, Vinh Tan Ward, Tan Uyen trading
District, Binh Duong Province

Giao Long Industrial Zone, Phase II, Coconut-based

Asia Coconut Processing
An Phuoc Commune, Chau Thanh products manufacturing 24.96% 24.96%
Joint Stock Company
District, Ben Tre Province, Vietnam and trading

JV Campos Centre, 9th Avenue

Del Monte -Vinamilk Dairy Importing and trading
corner, 30th Street, Bonifacio 50.00% 50.00%
Philippines, Inc. milk and dairy products
Global City, Taguig City, Philippines

(*) In 2023, Miraka Holdings Limited has increased its capital. Other investors have contributed additional capital to this entity;
however, the Company did not contribute additional capital accordingly. As a result, the Company’s ownership in this entity has decreased
from 16.96% to 13.55%. Miraka Holdings Limited is still considered as an associate of the Company because the Company has significant
influence over the financial and operation activities of this entity through the right to appoint a member in the Board of Directors of this
entity.

Indirectly owned associates through Vietnam Livestock Corporation – Joint Stock Company

As at 31 December 2023 and 1 January 2023, there were 5 associates indirectly owned through Vietnam Livestock
Corporation – Joint Stock Company.
126 VINAMILK 2023 ANNUAL REPORT CARE TO CHANGE

VIETNAM DAIRY PRODUCTS JOINT STOCK COMPANY AND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS Form B 09 – DN/HN
FOR THE YEAR ENDED 31 DECEMBER 2023 (CONTINUED) (Issued under Circular No. 202/2014/TT-BTC
dated 22 December 2014 of the Ministry of Finance)

(c) Dependent units

Sales branches:

1. Vietnam Dairy Products Joint Stock Company’s Branch in Ha Noi – 11th Floor, Tower B, Handi Resco Building, 521 Kim
Ma, Ngoc Khanh Ward, Ba Dinh District, Ha Noi City.

2. Vietnam Dairy Products Joint Stock Company’s Branch in Da Nang – 7th Floor, Danang Post Office Tower, 271 Nguyen
Van Linh, Vinh Trung Ward, Thanh Khe District, Da Nang City.

3. Vietnam Dairy Products Joint Stock Company’s Branch in Can Tho – 77-77B Vo Van Tan, Tan An Ward, Ninh Kieu District,
Can Tho City.

Manufacturing factories:

1. Thong Nhat Dairy Factory – 12 Dang Van Bi, Thu Duc District, Ho Chi Minh City.

2. Truong Tho Dairy Factory – 32 Dang Van Bi, Thu Duc District, Ho Chi Minh City.

3. Dielac Dairy Factory – Bien Hoa I Industrial Park, Dong Nai Province.

4. Can Tho Dairy Factory – Tra Noc Industrial Park, Can Tho City.

5. Sai Gon Dairy Factory – Tan Thoi Hiep Industrial Park, District 12, Ho Chi Minh City.

6. Nghe An Dairy Factory – Sao Nam Street, Nghi Thu Commune, Cua Lo Town, Nghe An Province.

7. Binh Dinh Dairy Factory – 87 Hoang Van Thu, Quang Trung Ward, Quy Nhon City, Binh Dinh Province.

8. Vietnam Beverage Factory – My Phuoc II Industrial Park, Binh Duong Province.

9. Tien Son Dairy Factory – Tien Son Industrial Park, Bac Ninh Province.

10. Da Nang Dairy Factory – Hoa Khanh Industrial Park, Da Nang City.

11. Vietnam Powdered Milk Factory – 9 Tu Do Boulevard – Vietnam-Singapore Industrial Park, Thuan An District, Binh
Duong Province.

12. Vietnam Dairy Factory – My Phuoc II Industrial Park, Binh Duong Province.

13. Lam Son Dairy Factory – Le Mon Industrial Zone, Thanh Hoa City, Thanh Hoa Province.

Warehouses:

1. Ho Chi Minh Logistic Enterprise – 32 Dang Van Bi, Thu Duc District, Ho Chi Minh City.

2. Hanoi City Logistic Enterprise – Km 10 Highway 5, Duong Xa Commune, Gia Lam District, Ha Noi City.
VINAMILK 2023 ANNUAL REPORT CARE TO CHANGE 127

VIETNAM DAIRY PRODUCTS JOINT STOCK COMPANY AND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS Form B 09 – DN/HN
FOR THE YEAR ENDED 31 DECEMBER 2023 (CONTINUED) (Issued under Circular No. 202/2014/TT-BTC
dated 22 December 2014 of the Ministry of Finance)

Clinic:

1. An Khang Clinic – 184-186-188 Nguyen Dinh Chieu, Ward 6, District 3, Ho Chi Minh City.

Raw milk center:

1. Branch of Vietnam Dairy Products Joint Stock Company’s – Cu Chi Raw Milk Center - Lot B14-1, B14-2 D4, Dong Nam
Industrial Zone, Hoa Phu Commune, Cu Chi District, Ho Chi Minh City.

As at 31 December 2023, the Group had 9,877 employees (1/1/2023: 9,506 employees).

II. ACCOUNTING PERIOD AND ACCOUNTING CURRENCY

1. Annual accounting period

The annual accounting period of the Group is from 1 January to 31 December.

2. Accounting and presentation currency

The Company’s accounting currency is Vietnam Dong (“VND”), which is also the currency used for consolidated financial
statement presentation purpose.

III. ACCOUNTING STANDARDS AND SYSTEM

1. Statement of compliance

The consolidated financial statements have been prepared in accordance with Vietnamese Accounting Standards, the
Vietnamese Accounting System for enterprises and the relevant statutory requirement applicable to financial reporting.

2. Basis of measurement

The consolidated financial statements, except for the consolidated statement of cash flows, are prepared on the accrual
basis using the historical cost concept. The consolidated statement of cash flows is prepared using the indirect method.
128 VINAMILK 2023 ANNUAL REPORT CARE TO CHANGE

VIETNAM DAIRY PRODUCTS JOINT STOCK COMPANY AND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS Form B 09 – DN/HN
FOR THE YEAR ENDED 31 DECEMBER 2023 (CONTINUED) (Issued under Circular No. 202/2014/TT-BTC
dated 22 December 2014 of the Ministry of Finance)

IV. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

The following significant accounting policies have been adopted by the Group in the preparation of these consolidated
financial statements.

The accounting policies that have been adopted by the Group in the preparation of these consolidated financial statements
are consistent with those adopted in the preparation of the latest consolidated annual financial statements.

1. Basis of consolidation

(a) Subsidiaries

Subsidiaries are those entities in which the Group has control over the financial and operating policies, generally evidenced
by holding more than half of voting rights. In assessing control, exercisable potential voting rights are taken into account.
The financial statements of the subsidiaries are included in the consolidated financial statements from the date that control
commences until the date that control ceases.

(b) Non-controlling interests

Non-controlling interests (“NCI”) are measured at their proportionate share of the acquiree’s identifiable net assets at date
of acquisition.

Changes in the Group’s interest in a subsidiary that do not result in a loss of control are accounted for as transactions with
owners. The difference between the change in the Group’s share of net assets of the subsidiary and any consideration
paid or received is recorded directly in retained profits under equity.

(c) Loss of control

When the Group losses control over a subsidiary, it derecognises the assets and liabilities of the subsidiary, and any related
NCI and other components of equity. Any resulting gain or loss is recognised in the consolidated statement of income. Any
interest retained in the former subsidiary when control is lost is stated at the carrying amount of the retained investment
in the consolidated financial statements adjusted for appropriate shares of changes in equity of the investee since the
acquisition date, if significant influence in the investee is maintained, or otherwise stated at cost.

(d) Associates and joint venture

financial and operating policies. Joint ventures are those entities over whose activities the Group has joint control,
established by contractual agreement and requiring unanimous consent for strategic financial and operating decisions.
Associates and joint ventures are those entities in which the Group normally hold 20% to 50% of voting rights in these
entities.

Associates and joint ventures are accounted for using the equity method. The consolidated interim financial statements
include the Group’s share of the income and expenses of the associates and joint ventures after adjustments to align
the accounting policies with those of the Group, from the date that significant influence commences until the date that
significant influence ceases.
VINAMILK 2023 ANNUAL REPORT CARE TO CHANGE 129

VIETNAM DAIRY PRODUCTS JOINT STOCK COMPANY AND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS Form B 09 – DN/HN
FOR THE YEAR ENDED 31 DECEMBER 2023 (CONTINUED) (Issued under Circular No. 202/2014/TT-BTC
dated 22 December 2014 of the Ministry of Finance)

When the Group’s share of losses exceeds its interest in an associate or joint venture, the carrying amount of that interest
(including any long-term investments) is reduced to nil and the recognition of further losses is discontinued except to the
extent that the Group has an obligation or has made payments on behalf of the associate or joint venture.

(e) Transactions eliminated on consolidation

Intra-group balances, transactions and any unrealised income and expenses arising from intra-group transactions, are
eliminated in preparing the consolidated financial statements. Unrealised gains and losses arising from transactions with
associates, joint venture are eliminated against the investment to the extent of the Group’s interest in the associate or
joint venture.

(f) Business combination

Business combinations are accounted for using the acquisition method as at the acquisition date, which is the date on
which control is transferred to the Group. Control exists when the Group has the power to govern the financial and operating
policies of an entity so as to obtain benefits from its activities. In assessing control, potential voting rights that presently
are exercisable are taken into account.

2. Foreign currency

(a) Foreign currency transactions

Transactions in currencies other than VND during the year have been translated into VND at actual rates of exchange ruling
at the transaction dates.

Monetary assets and liabilities denominated in currencies other than VND are translated into VND at the account transfer
buying rate and account transfer selling rate, respectively, at the end of the annual accounting period quoted by the
commercial bank where the Company and its subsidiaries most frequently conduct transactions and has the largest
outstanding balance of foreign currencies at the end of the annual accounting period.

All foreign exchange differences are recorded in the consolidated statement of income.

(b) Foreign operations

The assets and liabilities of foreign operations, including goodwill and fair value adjustments arising on acquisition, are
translated to VND at exchange rates at the end of the annual accounting period. Income and expenses of foreign operations
are translated to VND at average exchange rates of the year.

Foreign currency differences arising from the translation of foreign operations are recognised in the consolidated statement
of financial position under the caption “Foreign exchange differences” in equity.
130 VINAMILK 2023 ANNUAL REPORT CARE TO CHANGE

VIETNAM DAIRY PRODUCTS JOINT STOCK COMPANY AND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS Form B 09 – DN/HN
FOR THE YEAR ENDED 31 DECEMBER 2023 (CONTINUED) (Issued under Circular No. 202/2014/TT-BTC
dated 22 December 2014 of the Ministry of Finance)

3. Cash and cash equivalents

Cash comprises cash balances and call deposits. Cash equivalents are short-term highly liquid investments that are
readily convertible to known amount of cash, are subject to an insignificant risk of changes in value, and are held for the
purpose of meeting short-term cash commitments rather than for investment or other purposes.

4. Investments

(a) Trading securities

Trading securities are those held by the Group for trading purpose, include those with maturity periods more than 12
months that are purchased for resale with the aim of making profits. Trading securities are initially recognised at cost
which include purchase price plus any directly attributable transaction costs. Subsequent to initial recognition, they are
measured at cost less allowance for diminution in value.

Trading securities shall be recorded when the Group acquires the ownership, in particular:

• Listed securities are recognised at the time of matching (T+0).

• Unlisted securities are recognised at the time the ownership is acquired as prescribed in the Vietnamese laws and
regulations.

An allowance is made for diminution in value of trading securities if market price of the securities item falls below its
carrying amount. The allowance is reversed if there is evidence that the market price subsequently increases after the
allowance was recognised. An allowance is reversed only to the extent that the securities’ carrying amount does not
exceed the carrying amount that has been determined if no allowance had been recognised.

(b) Held-to-maturity investments

Held-to-maturity investments are those that the Group’s management has intention and ability to hold until maturity.
Held-to-maturity investments include term deposits at bank. These investments are stated at costs less allowance for
diminution in the value.

Held-to-maturity investments classified as monetary items denominated in foreign currencies are revaluated at actual
exchange rate at the reporting date.

(c) Loans receivable

Loans receivable are loans granted under an agreement between parties but not being traded as securities in the market.
Allowance for doubtful loans receivable is made for each of the doubtful debt based on overdue days in payment of
principals according to initial debt commitment (exclusive of the debt rescheduling between contractors), or based on the
estimated possible loss that may arise.
VINAMILK 2023 ANNUAL REPORT CARE TO CHANGE 131

VIETNAM DAIRY PRODUCTS JOINT STOCK COMPANY AND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS Form B 09 – DN/HN
FOR THE YEAR ENDED 31 DECEMBER 2023 (CONTINUED) (Issued under Circular No. 202/2014/TT-BTC
dated 22 December 2014 of the Ministry of Finance)

(d) Investment in equity instruments of other entities

Investment in equity instruments of other entities is initially recognised at cost which include purchase price plus any directly
attributable transaction costs. Subsequent to initial recognition, these investments are stated at cost less allowance for
diminution in value. An allowance is made for diminution in investment value if the investee has suffered a loss which
may cause the Group to lose their invested capital, unless there is evidence that the value of the investment has not been
diminished. The allowance is reversed if the investee subsequently made a profit that offsets the previous loss for which
the allowance had been made. An allowance is reversed only to the extent that the investment’s carrying amount does not
exceed the carrying amount that would have been determined if no allowance had been recognised.

5. Accounts receivable

Accounts receivable are monitored in detail of receivable terms, receivable parties, original currency and other factors
depending on the Group’s managerial requirements. Accounts receivable from customers include trade receivables
arising from buying-selling transactions. Other receivables include non-trade receivables, not related to buying-selling
transactions. Accounts receivable are classified as short-term and long-term in the consolidated statement of financial
position based on the remaining period of these receivables at the reporting date.

Trade and other receivables are stated at cost less allowance for doubtful debts. Allowance for doubtful debts is made for
each doubtful debt based on overdue days in payment of principals according to initial debt commitment (exclusive of the
debts rescheduling between contracting parties), or based on expected loss that may arise.

Trade and other receivables classified as monetary items denominated in foreign currencies are revaluated at actual
exchange rate at the reporting date.

6. Inventories

Inventories are stated at the lower of cost and net realisable value. Cost is determined on a weighted average basis and
includes all costs incurred in bringing the inventories to their present location and condition. Cost in the case of finished
goods and work in progress includes raw materials, direct labour and attributable manufacturing overheads. Net realisable
value is the estimated selling price of inventory items, less the estimated costs of completion and estimated costs to sell.

The Group applies the perpetual method of accounting for inventories.

132 VINAMILK 2023 ANNUAL REPORT CARE TO CHANGE

VIETNAM DAIRY PRODUCTS JOINT STOCK COMPANY AND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS Form B 09 – DN/HN
FOR THE YEAR ENDED 31 DECEMBER 2023 (CONTINUED) (Issued under Circular No. 202/2014/TT-BTC
dated 22 December 2014 of the Ministry of Finance)

7. Tangible fixed assets

(a) Cost

Tangible fixed assets are stated at cost less accumulated depreciation. The initial cost of a tangible fixed asset comprises
its purchase price, including import duties, non-refundable purchase taxes and any directly attributable costs of bringing
the asset to its working condition for its intended use, and the costs of dismantling and removing the asset and restoring
the site on which it is located. Expenditure incurred after tangible fixed assets have been put into operation, such as repair
and maintenance and overhaul cost, is charged to the consolidated statement of income in the year in which the costs are
incurred. In situations where it can be clearly demonstrated that the expenditure has resulted in an increase in the future
economic benefits expected to be obtained from the use of tangible fixed assets beyond their originally assessed standard
of performance, the expenditure is capitalised as an additional cost of tangible fixed assets.

(b) Depreciation

Depreciation is computed on a straight-line basis over the estimated useful lives of tangible fixed assets. The estimated
useful lives are as follows:

• buildings and structures 5 – 50 years

• machinery and equipment 2 – 20 years

• motor vehicles 4 – 10 years

• office equipment 2 – 12 years

• livestock 6 years

• others 3 – 20 years

8. Intangible fixed assets

(a) Land use rights

Definite life land use rights are stated at cost less accumulated amortisation. The initial cost of land use rights comprises its
purchase price and any directly attributable costs incurred in conjunction with securing the land use rights. Amortisation
is computed on a straight-line basis over the valid term of land use rights certificate.

Indefinite life land use rights are stated at cost and not amortised.

Land lease right acquired through business combination are initially recognised at fair value and amortised on a straight-
line basis over the term of the lease.
VINAMILK 2023 ANNUAL REPORT CARE TO CHANGE 133

VIETNAM DAIRY PRODUCTS JOINT STOCK COMPANY AND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS Form B 09 – DN/HN
FOR THE YEAR ENDED 31 DECEMBER 2023 (CONTINUED) (Issued under Circular No. 202/2014/TT-BTC
dated 22 December 2014 of the Ministry of Finance)

(b) Trademark

Trademark acquired through business combinations are initially recognised at fair value and amortised on a straight-line
basis over 20 years.

(c) Raw material area

Raw material area acquired through business combination are initially recognised at fair value and amortised on a straight-
line basis over 18 years.

(d) Raw material area

Raw material area acquired through business combination are initially recognised at fair value and amortised on a straight-
line basis over 18 years.

(d) Software

Cost of acquiring of new software, which is not an integral part of the related hardware, is capitalised and treated as an
intangible asset. Software is amortised on a straight-line basis over 2 – 8 years.

(e) Others

Other intangible assets are amortised on a straight-line basis over 4 – 10 years.

9. Investment property

(a) Cost

Investment property held to earn rental is stated at cost less accumulated depreciation. The initial cost of an investment
property held to earn rental comprises its purchase price, cost of land use rights and any directly attributable expenditure of
bringing the property to the condition necessary for it to be capable of operating in the manner intended by management.
Expenditure incurred after the investment property held to earn rental has been put into operation, such as repair and
maintenance, is charged to the consolidated statement of income in the year in which the expenditure is incurred. In
situations where it can be clearly demonstrated that the expenditure has resulted in future economic benefits in excess of
the originally assessed standard of performance of the existing investment property held to earn rental, the expenditure is
capitalised as an additional cost of the investment property.
134 VINAMILK 2023 ANNUAL REPORT CARE TO CHANGE

VIETNAM DAIRY PRODUCTS JOINT STOCK COMPANY AND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS Form B 09 – DN/HN
FOR THE YEAR ENDED 31 DECEMBER 2023 (CONTINUED) (Issued under Circular No. 202/2014/TT-BTC
dated 22 December 2014 of the Ministry of Finance)

(b) Depreciation

Depreciation is computed on a straight-line basis over the estimated useful lives of investment property held to earn rental.
The estimated useful lives are as follows:

• definite life land use rights 13 – 50 years

• infrastructure 8 – 10 years

• buildings 6 – 50 years

Indefinite life land use rights are not amortised.

10. Construction in progress

Construction in progress represents the costs of tangible and intangible fixed assets which have not been fully completed
or installed. No depreciation is provided for construction in progress during the period of construction and installation.

11. Prepaid expenses

(a) Prepaid land costs

Prepaid land costs comprise prepaid land lease rentals, including those for which the Group obtained land use rights
certificate but are not qualified as intangible fixed assets under prevailing laws and regulations, and other costs incurred
in conjunction with securing the use of leased land. These costs are recognised in the consolidated statement of income
on a straight-line basis over the term of the lease.

(b) Tools and instruments

Tools and instruments include assets held for use by the Group in the normal course of business whose costs of individual
items are less than VND30 million and therefore not qualified for recognition as fixed assets under prevailing regulation.
Costs of tools and instruments are amortised on a straight-line basis over 1 – 5 years.

(c) Others

Others are recorded at cost and amortised on a straight-line basis over their economic useful lives of 1 –3 years.
VINAMILK 2023 ANNUAL REPORT CARE TO CHANGE 135

VIETNAM DAIRY PRODUCTS JOINT STOCK COMPANY AND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS Form B 09 – DN/HN
FOR THE YEAR ENDED 31 DECEMBER 2023 (CONTINUED) (Issued under Circular No. 202/2014/TT-BTC
dated 22 December 2014 of the Ministry of Finance)

12. Goodwill

Goodwill arises on the acquisition of subsidiaries, associates and joint venture. Goodwill is measured at cost less
accumulated amortisation. Cost of goodwill represents the excess of the cost of the acquisition over the Group’s interest in
the net fair value of the identifiable assets, liabilities and contingent liabilities of the acquiree. When the excess is negative
(gain from bargain purchase), it is recognised immediately in the consolidated statement of income.

Goodwill arising on acquisition of a subsidiary is amortised on a straight-line basis over 10 years. Carrying value of goodwill
arising on acquisition of a subsidiary is written down to recoverable amount as management determines that it is not fully
recoverable.

In respect of equity accounted investees, the carrying amount of goodwill is included in the carrying amount of the
investment and is not amortised.

13. Trade and other payables

Accounts payable are monitored in details by payable terms, payable parties, original currency and other factors depending
on the Group’s managerial requirements. Accounts payable to suppliers include trade payables arising from transaction
of buying-selling transactions and payables for import through entrustees (in import entrustment transactions). Other
payables include non-trade payables, not related to buying-selling transactions. Accounts payable are classified as short-
term and long-term in the consolidated statement of financial position based on the remaining period of these payables at
the reporting date.

Trade and other payables are stated at their cost. Trade and other payables classified as monetary items denominated in
foreign currencies are revaluated at actual exchange rate at the reporting date.

14. Accrued expenses

Accrued expenses include those made for goods, services received from suppliers in the annual accounting period but
not yet paid due to the lack of receipts or supporting documents, are recognised in the reporting period based on the term
stated in the respective contracts.
136 VINAMILK 2023 ANNUAL REPORT CARE TO CHANGE

VIETNAM DAIRY PRODUCTS JOINT STOCK COMPANY AND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS Form B 09 – DN/HN
FOR THE YEAR ENDED 31 DECEMBER 2023 (CONTINUED) (Issued under Circular No. 202/2014/TT-BTC
dated 22 December 2014 of the Ministry of Finance)

15. Provisions

A provision is recognised if, as a result of a past event, the Group has a present legal or constructive obligation that can
be estimated reliably, and it is probable that an outflow of economic benefits will be required to settle the obligation.
Provisions are determined by discounting the expected future cash flows at a pre-tax rate that reflects current market
assessments of the time value of money and the risks specific to the liability.

Severance allowance

Under the Vietnamese Labour Code, when an employee who has worked for 12 months or more (“the eligible employees”)
voluntarily terminates his/her labour contract, the employer is required to pay the eligible employee severance allowance
calculated based on years of service and employee’s compensation at termination. Provision for severance allowance has
been provided based on employees’ years of service and their average salary for the six-month period prior to the end of
the annual accounting period. For the purpose of determining the number of years of service by an employee, the period
for which the employee participated in and contributed to unemployment insurance in accordance with prevailing laws and
regulations and the period for which severance allowance has been paid by the Company are excluded.

16. Share capital

(a) Ordinary shares

Ordinary shares are stated at par value. Excess of cash received from share issues over par value is recorded as share
premium. Incremental costs directly attributable to the issue of shares, net of tax effects, are recognised as a deduction
from share premium.

(b) Repurchase and reissue of ordinary shares (treasury shares)

Treasury shares are recognised only in respect of repurchased shares which are aggregated fractions of share arising
when the company issues shares to pay dividends or issues shares from equity reserves in accordance with an approved
issuance plan, or repurchased odd-lots of shares as requested by the shareholders. In all other cases, when shares
recognised as equity are repurchased, their par value amount is recognised as a reduction to share capital. The difference
between the par value and the amount of the consideration paid, which includes directly attributable costs, net of tax
effects, is included in share premium.
VINAMILK 2023 ANNUAL REPORT CARE TO CHANGE 137

VIETNAM DAIRY PRODUCTS JOINT STOCK COMPANY AND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS Form B 09 – DN/HN
FOR THE YEAR ENDED 31 DECEMBER 2023 (CONTINUED) (Issued under Circular No. 202/2014/TT-BTC
dated 22 December 2014 of the Ministry of Finance)

17. Taxation

Income tax on the consolidated profit or loss for the year comprises current and deferred tax. Income tax is recognised in
the consolidated statement of income except to the extent that it relates to items recognised directly to equity, in which
case it is recognised in equity.

Current tax is the expected tax payable on the taxable income for the year, using tax rates enacted at the end of the annual
accounting period, and any adjustment to tax payable in respect of previous years.

Deferred tax is provided using the balance sheet method, providing for temporary differences between the carrying
amounts of assets and liabilities for financial reporting purposes and the amounts used for taxation purposes. The amount
of deferred tax provided is based on the expected manner of realisation or settlement of the carrying amount of assets and
liabilities using the tax rates enacted or substantively enacted at the end of the annual accounting period.

A deferred tax asset is recognised only to the extent that it is probable that future taxable profits will be available against
which the temporary differences can be utilised. Deferred tax assets are reduced to the extent that it is no longer probable
that the related tax benefit will be realised.

18. Revenue and other income

(a) Goods sold

Revenue from the sale of goods is recognised in the consolidated statement of income when significant risks and rewards
of ownership have been transferred to the buyer. No revenue is recognised if there are significant uncertainties regarding
recovery of the consideration due or possible return of goods. Revenue on sales of goods is recognised at the net amount
after deducting sales discounts stated on the invoice.

(b) Services rendered

Revenue from services rendered is recognised in the consolidated statement of income in proportion to the stage of
completion of the transaction at the end of the annual accounting period. The stage of completion is assessed by reference
to surveys of work performed. No revenue is recognised if there are significant uncertainties regarding recovery of the
consideration due.

(c) Rental income

Rental income from leased property is recognised in the consolidated statement of income on a straight-line basis over the
term of the lease. Lease incentives granted are recognised as an integral part of the total rental income.

(d) Interest income

Interest income is recognised on a time proportion basis with reference to the principal outstanding and the applicable
interest rate.
138 VINAMILK 2023 ANNUAL REPORT CARE TO CHANGE

VIETNAM DAIRY PRODUCTS JOINT STOCK COMPANY AND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS Form B 09 – DN/HN
FOR THE YEAR ENDED 31 DECEMBER 2023 (CONTINUED) (Issued under Circular No. 202/2014/TT-BTC
dated 22 December 2014 of the Ministry of Finance)

(e) Dividend income

Dividend income is recognised when the right to receive dividend is established.

(f) Income from disposal of short-term and long-term financial investments

Income from disposal of short-term and long-term financial investments is recognised in the consolidated statement of
income when significant risks and rewards of ownership have been transferred to the buyer. Significant risks and rewards
of ownership have been transferred upon the completion of the trading transaction (for listed securities) or the completion
of the agreement on transfer of assets (for non-listed securities).

19. Revenue deductions

Revenue deductions include sales discounts, sales allowances and sales returns.

In case goods were sold or services were provided during the reporting period but the related sales discounts, sales
allowances or sales returns occur in the following period, revenue deductions are recognised in the reporting period only
if such payments occur prior to the issuance of the consolidated financial statements.

20. Cost of sales

Cost of sales comprise the cost of products, goods and services provided during the year and is recognised corresponding
to revenue. For cost of direct raw materials consumed which is over the normal level, labour cost and manufacturing
overheads not allocated to finished goods are recorded directly into the cost of sales (after deducting compensations, if
any) even if products and goods are not yet determined to be consumed.

21. Operating lease payments

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

22. Borrowing costs

Borrowing costs are recognised as an expense in the year in which they are incurred, except where borrowing costs relate
to borrowings in respect of the construction of qualifying assets, in which case the borrowing costs incurred during the
period of construction are capitalised as part of the cost of the assets concerned.
VINAMILK 2023 ANNUAL REPORT CARE TO CHANGE 139

VIETNAM DAIRY PRODUCTS JOINT STOCK COMPANY AND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS Form B 09 – DN/HN
FOR THE YEAR ENDED 31 DECEMBER 2023 (CONTINUED) (Issued under Circular No. 202/2014/TT-BTC
dated 22 December 2014 of the Ministry of Finance)

23. Dividend distribution

The Group’s net profit after tax is available for appropriation to shareholders as dividends after approval by shareholders
at the Company’s Annual General Meeting and after making appropriation to reserve funds in accordance with the
Company’s Charter.

Dividends are declared and paid based on the estimated earnings of the year. Final dividends are declared and paid
in the following year from undistributed earnings based on the approval of shareholders at the Company’s Annual
General Meeting.

24. Funds

Appropriation to funds is made in accordance with the Company’s Charter as follows:

• Bonus and welfare fund 10% of profit after tax

• Investment and development fund 10% of profit after tax

Utilisation of the above funds requires approval of the shareholders, the Board of Directors or the Chief Executive Officer,
depending on the nature and magnitude of the transactions involved as stated in the Company’s Charter.

25. Earnings per share

The Group presents basic and diluted earnings per share (EPS) for its ordinary shares. Basic EPS is calculated by dividing
the profit or loss attributable to the ordinary shareholders of the Company (after appropriation to bonus and welfare fund
for the annual accounting period) by the weighted average number of ordinary shares outstanding during the year. Diluted
EPS is determined by adjusting the profit or loss attributable to the ordinary shareholders and the weighted average
number of ordinary shares outstanding for the effect of all dilutive potential ordinary shares, which comprise convertible
bonds and share options.

26. Segment reporting

A segment is a distinguishable component of the Group that is engaged either in providing related products or services
(business segment), or in providing products or services within a particular economic environment (geographical segment),
which is subject to risks and rewards that are different from those of other segments. The Group’s primary format for
segment reporting is based on geographical segments.
140 VINAMILK 2023 ANNUAL REPORT CARE TO CHANGE

VIETNAM DAIRY PRODUCTS JOINT STOCK COMPANY AND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS Form B 09 – DN/HN
FOR THE YEAR ENDED 31 DECEMBER 2023 (CONTINUED) (Issued under Circular No. 202/2014/TT-BTC
dated 22 December 2014 of the Ministry of Finance)

27. Related parties

Enterprises and individuals that directly, or indirectly through one or more intermediaries, control or are controlled by,
or under common control with, the Group, including holding companies, subsidiaries and fellow subsidiaries are related
parties of the Group. Associates and individuals owning, directly or indirectly, an interest in the voting power of the Group
that gives them significant influence over the enterprises, key management personnel, including directors and officers
of the Group and close members of the family of these individuals and companies associated with these individuals also
constitute related parties.

28. Comparative information

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

V. SUPPLEMENTARY INFORMATION TO ITEMS DISCLOSED

IN THE CONSOLIDATED STATEMENT OF FINANCIAL POSITION

1. Cash and cash equivalents

31/12/2023 1/1/2023
VND VND

Cash on hand 1,545,332,918 1,715,151,072

Cash in bank 1,023,942,137,332 1,325,714,367,365

Cash equivalents 1,886,539,889,675 972,514,009,187

2,912,027,359,925 2,299,943,527,624
VINAMILK 2023 ANNUAL REPORT CARE TO CHANGE 141

VIETNAM DAIRY PRODUCTS JOINT STOCK COMPANY AND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS Form B 09 – DN/HN
FOR THE YEAR ENDED 31 DECEMBER 2023 (CONTINUED) (Issued under Circular No. 202/2014/TT-BTC
dated 22 December 2014 of the Ministry of Finance)

2. Allowance for doubtful debts

Movements of allowance for doubtful debts during the year were as follows:

2023 2022
VND VND

Opening balance (13,445,724,800) (12,257,493,261)

Increase in allowance during the year (1,341,171,676) (1,656,841,857)

Allowance utilised during the year - 527,606,281

Allowance written back during the year 10,157,000 42,363,959

Currency translation differences (124,358,547) (101,359,922)

Closing balance (14,901,098,023) (13,445,724,800)

3. Other receivables

(a) Other short-term receivables

31/12/2023 1/1/2023
VND VND

Interest income and dividends 648,530,799,521 457,294,545,422

Receivables from employees 2,394,598,623 1,169,913,026

Short-term deposits 831,361,730 905,426,334

Import tax refundable 2,932,592,308 2,555,575,760

Rebate income receivable from suppliers 260,752,709,014 214,341,684,142

Others 165,361,349,807 214,199,055,887

1,080,803,411,003 890,466,200,571

(b) Other long-term receivables

31/12/2023 1/1/2023
VND VND

Collateral, deposits 14,431,990,975 35,422,722,715

Others 1,700,000,000 3,000,000,000

16,131,990,975 38,422,722,715
142 VINAMILK 2023 ANNUAL REPORT CARE TO CHANGE

VIETNAM DAIRY PRODUCTS JOINT STOCK COMPANY AND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS Form B 09 – DN/HN
FOR THE YEAR ENDED 31 DECEMBER 2023 (CONTINUED) (Issued under Circular No. 202/2014/TT-BTC
dated 22 December 2014 of the Ministry of Finance)

4. Investments

(a) Trading securities

31/12/2023 1/1/2023

Allowance for Allowance for

Carrying amount Fair value diminution Carrying amount Fair value diminution
VND VND in value VND VND in value
VND VND

Short-term
investments 1,193,065,962 370,411,840 (822,663,402) 1,159,355,253 469,610,056 (689,745,197)
in shares

(b) Held-to-maturity investments

31/12/2023 1/1/2023
VND VND

Held-to-maturity investments – short-term

• term deposits 20,136,873,397,900 17,413,585,718,627

Held-to-maturity investments – long-term

• term deposits 150,244,200,000 -

VINAMILK ANNUAL REPORT 2023 CARE TO CHANGE 143

VIETNAM DAIRY PRODUCTS JOINT STOCK COMPANY AND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS Form B 09 – DN/HN
(Issued under Circular No. 202/2014/TT-BTC dated
FOR THE YEAR ENDED 31 DECEMBER 2023 (CONTINUED) 22 December 2014 of the Ministry of Finance)

(c) Investments in other entities

31/12/2023 1/1/2023

% of % of
equity equity
owned Equity accounted/ Fair Allowance for owned Equity accounted/ Fair Allowance for
and voting cost value diminution in value and voting cost value diminution in value
rights VND VND VND rights VND VND VND

Investments in associates, joint venture

Miraka Holdings Limited 13.55% 219,850,964,979 (*) - 16.96% 287,362,154,997 (*) -

APIS Corporation 20.00% 46,117,513,009 (*) - 20.00% 39,499,496,146 (*) -

Asia Coconut Processing Joint Stock

24.96% 163,183,742,194 (*) - 24.96% 150,355,490,875 (*) -
Company

Del Monte - Vinamilk Dairy Philippines, Inc. 50.00% 317,355,090 (*) - 50.00% 593,854,138 (*) -

Indirectly owned associates through Vietnam

173,121,453,660 (*) - 186,491,781,862 (*) -
Livestock Corporation –Joint Stock Company

602,591,028,932 - 664,302,778,018 -

Equity investments in other entities

Asia Saigon Food Ingredients Joint Stock

14.71% 69,261,607,154 (*) - 14.71% 69,261,607,154 (*) -
Company

An Khang Clinic – Pharmacy 300,000,000 (*) - 300,000,000 (*) -

Others 32,413,451,927 (*) (23,582,690,668) 32,388,611,927 (*) (23,582,690,668)

101,975,059,081 (23,582,690,668) 101,950,219,081 (23,582,690,668)

704,566,088,013 (23,582,690,668) 766,252,997,099 (23,582,690,668)

(*) At the reporting date, the Group has not determined fair values of these financial instruments for disclosure in the consolidated financial statements because information about their market
prices is not available and there is currently no guidance on determination of fair value using valuation techniques under the Vietnamese Accounting Standards or the Vietnamese Accounting System for
enterprises. The fair values of these financial instruments may differ from their carrying amounts.
144 VINAMILK 2023 ANNUAL REPORT CARE TO CHANGE

VIETNAM DAIRY PRODUCTS JOINT STOCK COMPANY AND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS Form B 09 – DN/HN
FOR THE YEAR ENDED 31 DECEMBER 2023 (CONTINUED) (Issued under Circular No. 202/2014/TT-BTC
dated 22 December 2014 of the Ministry of Finance)

Movements of equity investments in associates, joint venture during the year were as follows:

2023 2022
VND VND

Opening balance 664,302,778,018 661,023,754,422

Investments 35,769,832,735 43,175,000,000

Dividends received (16,850,283,175) (15,420,000,001)

Share of loss in associates and joint venture (80,631,298,646) (24,475,976,403)

Closing balance 602,591,028,932 664,302,778,018

Movements in the allowance for diminution in the value of trading securities during the year were as follows:

2023 2022
VND VND

Opening balance (689,745,197) (666,201,430)

Increase in allowance during the year (111,064,553) -

Currency translation differences (21,853,652) (23,543,767)

Closing balance (822,663,402) (689,745,197)

Movements in the allowance for diminution in the value of long-term financial investments during the year were as follows:

2023 2022
VND VND

Opening balance (23,582,690,668) (19,082,789,672)

Increase in allowance during the year - (4,499,900,996)

Closing balance (23,582,690,668) (23,582,690,668)

VINAMILK 2023 ANNUAL REPORT CARE TO CHANGE 145

VIETNAM DAIRY PRODUCTS JOINT STOCK COMPANY AND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS Form B 09 – DN/HN
FOR THE YEAR ENDED 31 DECEMBER 2023 (CONTINUED) (Issued under Circular No. 202/2014/TT-BTC
dated 22 December 2014 of the Ministry of Finance)

5. Inventories

31/12/2023 1/1/2023

Cost Allowance Cost Allowance

VND VND VND VND

Goods in transit 578,543,057,199 - 812,950,683,637 -

Raw materials 3,861,882,734,602 (33,506,836,040) 3,365,992,574,670 (20,772,142,150)

Tools and supplies 91,789,869,431 (293,843,525) 93,825,867,140 (374,613,608)

Work in progress 318,473,606,136 - 199,435,483,074 -

Finished goods 1,126,529,387,840 (4,052,809,890) 1,024,111,382,368 (1,459,301,629)

Merchandise inventories 143,368,330,354 - 37,037,692,091 -

Goods on consignment 45,348,308,981 - 26,815,770,524 -

6,165,935,294,543 (37,853,489,455) 5,560,169,453,504 (22,606,057,387)

Movements in the allowance for inventories during the year were as follows:

2023 2022
VND VND

Opening balance (22,606,057,387) (47,414,757,653)

Increase in allowance during the year (25,317,858,957) (13,343,747,910)

Allowance written back during the year 5,955,466,553 35,616,693,471

Allowance utilised during the year 4,114,960,336 3,403,318,819

Currency translation differences - (867,564,114)

Closing balance (37,853,489,455) (22,606,057,387)

146 VINAMILK ANNUAL REPORT 2023 CARE TO CHANGE

VIETNAM DAIRY PRODUCTS JOINT STOCK COMPANY AND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS Form B 09 – DN/HN
(Issued under Circular No. 202/2014/TT-BTC
FOR THE YEAR ENDED 31 DECEMBER 2023 (CONTINUED) dated 22 December 2014 of the Ministry of Finance)

6. Tangible fixed assets

Buildings and Machinery and Office
Motor vehicles VND Livestock VND Others VND Total VND
structures VND equipment VND equipment VND

Cost
Opening balance 5,881,016,519,630 19,147,322,394,005 1,352,376,250,283 726,486,499,666 1,384,952,238,165 10,003,369,118 28,502,157,270,867
Additions 18,596,108,995 147,829,404,772 14,993,421,110 27,773,093,813 409,550,000 - 209,601,578,690
Transfer from construction in
974,878,011,908 1,357,435,907,645 16,430,863,910 16,572,434,035 - 6,588,055,679 2,371,905,273,177
progress
Transfer from inventories - - - - 416,186,659,149 - 416,186,659,149
Disposals/write off (10,684,285,402) (51,697,319,778) (10,759,517,242) (3,709,052,418) (294,991,923,230) - (371,842,098,070)
Reclassification 3,879,675,585 11,827,294,003 695,000,000 (213,954,386) - (16,188,015,202) -
Other decreases - - - (105,315,998) (79,329,636,722) - (79,434,952,720)
Currency translation differences 17,567,148,642 36,451,491,787 2,803,123,756 807,480,203 2,959,670,852 11,723,360 60,600,638,600
Closing balance 6,885,253,179,358 20,649,169,172,434 1,376,539,141,817 767,611,184,915 1,430,186,558,214 415,132,955 31,109,174,369,693
Accumulated depreciation
Opening balance 2,646,881,495,495 13,051,279,679,438 940,586,878,125 578,470,807,234 417,804,067,701 6,767,835,452 17,641,790,763,445
Charge for the year 316,567,038,523 1,305,672,484,634 92,088,160,866 49,669,070,177 234,252,916,255 658,437,805 1,998,908,108,260
Disposals/write off (7,148,644,988) (49,647,927,103) (9,540,020,008) (3,648,342,074) (137,671,998,878) - (207,656,933,051)
Reclassification 3,458,747,906 3,490,668,899 266,416,574 (14,135,723) (1,229) (7,201,696,427) -
Other decreases - - - (40,956,221) (39,070,772,386) - (39,111,728,607)
Currency translation differences 3,223,852,780 20,552,979,113 2,035,303,544 668,240,118 237,379,436 6,099,610 26,723,854,601
Closing balance 2,962,982,489,716 14,331,347,884,981 1,025,436,739,101 625,104,683,511 475,551,590,899 230,676,440 19,420,654,064,648
Net book value
Opening balance 3,234,135,024,135 6,096,042,714,567 411,789,372,158 148,015,692,432 967,148,170,464 3,235,533,666 10,860,366,507,422
Closing balance 3,922,270,689,642 6,317,821,287,453 351,102,402,716 142,506,501,404 954,634,967,315 184,456,515 11,688,520,305,045

Included in the cost of tangible fixed assets were assets costing VND10,297,816 million which were fully depreciated as at 31 December 2023 (1/1/2023: VND6,688,784 million), but
which are still in active use.
VINAMILK ANNUAL REPORT 2023 CARE TO CHANGE 147

VIETNAM DAIRY PRODUCTS JOINT STOCK COMPANY AND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS Form B 09 – DN/HN
(Issued under Circular No. 202/2014/TT-BTC dated
FOR THE YEAR ENDED 31 DECEMBER 2023 (CONTINUED) 22 December 2014 of the Ministry of Finance)

7. Intangible fixed assets

Land use rights Trademark Raw material area Software Others Total
VND VND VND VND VND VND

Cost

Opening balance 718,445,333,194 276,413,594,392 164,964,058,635 142,106,529,396 51,494,099,288 1,353,423,614,905

Additions - - - 543,775,644 524,680,003 1,068,455,647

Transfer from construction in

- - - 4,167,497,814 - 4,167,497,814
progress

Other decreases - - - (307,150,000) - (307,150,000)

Currency translation differences 6,358,151,991 - - 198,033,123 1,497,299,979 8,053,485,093

Closing balance 724,803,485,185 276,413,594,392 164,964,058,635 146,708,685,977 53,516,079,270 1,366,405,903,459

Accumulated amortisation

Opening balance 67,527,156,566 48,778,869,598 32,992,811,727 126,400,541,507 34,883,099,989 310,582,479,387

Charge for the year 16,641,051,184 16,259,623,199 10,997,603,909 9,748,147,088 32,677,443 53,679,102,823

Other decreases - - - (132,622,221) - (132,622,221)

Currency translation differences - - - 130,571,010 1,014,299,994 1,144,871,004

Closing balance 84,168,207,750 65,038,492,797 43,990,415,636 136,146,637,384 35,930,077,426 365,273,830,993

Net book value

Opening balance 650,918,176,628 227,634,724,794 131,971,246,908 15,705,987,889 16,610,999,299 1,042,841,135,518

Closing balance 640,635,277,435 211,375,101,595 120,973,642,999 10,562,048,593 17,586,001,844 1,001,132,072,466

148 VINAMILK 2023 ANNUAL REPORT CARE TO CHANGE

VIETNAM DAIRY PRODUCTS JOINT STOCK COMPANY AND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS Form B 09 – DN/HN
FOR THE YEAR ENDED 31 DECEMBER 2023 (CONTINUED) (Issued under Circular No. 202/2014/TT-BTC
dated 22 December 2014 of the Ministry of Finance)

8. Investment property

Land use rights Infrastructure Buildings Total

VND VND VND VND

Cost

Opening balance and closing

39,821,793,375 982,364,064 58,018,521,446 98,822,678,885
balance

Accumulated depreciation

Opening balance 8,073,602,099 982,364,064 32,172,904,939 41,228,871,102

Charge for the year 865,672,679 - 1,133,980,710 1,999,653,389

Closing balance 8,939,274,778 982,364,064 33,306,885,649 43,228,524,491

Net book value

Opening balance 31,748,191,276 - 25,845,616,507 57,593,807,783

Closing balance 30,882,518,597 - 24,711,635,797 55,594,154,394

The Group’s investment property represented land use rights, buildings and infrastructure held for earning rental income.

At the reporting date, the Group has not determined fair values of investment property held to earn rental for disclosure in
the consolidated financial statements because there is currently no guidance on determination of fair value using valuation
techniques under the Vietnamese Accounting Standards or the Vietnamese Accounting System for enterprises. The fair
values of investment property held to earn rental may differ from its carrying amounts.

Included in the cost of investment property held to earn rental was assets costing VND17,887 million which were fully
depreciated as at 31 December 2023 (1/1/2023: VND17,421 million), but which are still in active use.

9. Long-term work in progress

Long-term work in progress represented cows under 16 months of age, which will be transferred to tangible fixed assets
under livestock category at the end of the sixteen-month period, when the cows are ready for milk production.
VINAMILK 2023 ANNUAL REPORT CARE TO CHANGE 149

VIETNAM DAIRY PRODUCTS JOINT STOCK COMPANY AND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS Form B 09 – DN/HN
FOR THE YEAR ENDED 31 DECEMBER 2023 (CONTINUED) (Issued under Circular No. 202/2014/TT-BTC
dated 22 December 2014 of the Ministry of Finance)

10. Construction in progress

2023 2022
VND VND

Opening balance 1,470,582,553,037 834,818,937,515

Additions 1,487,548,286,549 1,306,831,083,954

Transfer to tangible fixed assets (2,371,905,273,177) (631,395,331,094)

Transfer to intangible fixed assets (4,167,497,814) (1,209,641,917)

Transfer to inventories (4,575,021,837) (36,472,947,276)

Transfer to short-term prepaid expenses (2,552,422,365) (3,782,041,938)

Transfer to long-term prepaid expenses (85,247,510,077) (9,167,551,229)

Disposals (7,080,258,629) -

Other increases/(decreases) 61,113,706,898 (6,645,721,227)

Currency translation differences 11,227,376,511 17,605,766,249

Closing balance 554,943,939,096 1,470,582,553,037

Major constructions in progress by the entities within the Group were as follows:

31/12/2023 1/1/2023
VND VND

Vietnam Livestock Corporation – Joint Stock Company 228,445,553,623 95,736,189,738

Vietnam Dairy Products Joint Stock Company 130,281,080,219 431,377,363,957

Lao-Jagro Development Xiengkhouang Co., Ltd. 77,258,335,440 723,078,016,500

Driftwood Dairy Holding Corporation 61,418,839,680 51,400,010,550

Others 57,540,130,134 168,990,972,292

554,943,939,096 1,470,582,553,037
150 VINAMILK 2023 ANNUAL REPORT CARE TO CHANGE

VIETNAM DAIRY PRODUCTS JOINT STOCK COMPANY AND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS Form B 09 – DN/HN
FOR THE YEAR ENDED 31 DECEMBER 2023 (CONTINUED) (Issued under Circular No. 202/2014/TT-BTC
dated 22 December 2014 of the Ministry of Finance)

11. Prepaid expenses

(a) Short-term prepaid expenses

31/12/2023 1/1/2023
VND VND

Software deployment and networks maintenance 22,041,172,498 8,657,427,608

Advertising 3,363,522,669 173,480,476

Operating lease 5,518,303,363 3,473,362,556

Tools and supplies 16,531,463,632 12,657,028,624

Renovation and repair 3,008,408,082 1,997,822,909

Cows isolated for testing and bovine semen used for insemination 2,999,754,749 1,492,271,346

Other short-term prepaid expenses 29,397,816,490 69,119,299,524

82,860,441,483 97,570,693,043

(b) Long-term prepaid expenses

Prepaid land costs Tools and instruments Others Total

VND VND VND VND

Opening balance 408,918,954,639 303,805,593,530 60,080,114,972 772,804,663,141

Additions 53,144,371,595 148,411,200,729 67,176,504,062 268,732,076,386

Transfer from construction

70,705,669,904 9,095,164,050 5,446,676,123 85,247,510,077
in progress

Amortisation for the year (15,958,262,615) (180,128,442,891) (44,555,480,407) (240,642,185,913)

Other decreases (5,721,900,586) (635,045,091) (13,225,688,929) (19,582,634,606)

Reclassification 251,748,756 - (251,748,756) -

Currency translation
4,300,487,104 17,570,719 708,056,429 5,026,114,252
differences

Closing balance 515,641,068,797 280,566,041,046 75,378,433,494 871,585,543,337

VINAMILK 2023 ANNUAL REPORT CARE TO CHANGE 151

VIETNAM DAIRY PRODUCTS JOINT STOCK COMPANY AND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS Form B 09 – DN/HN
FOR THE YEAR ENDED 31 DECEMBER 2023 (CONTINUED) (Issued under Circular No. 202/2014/TT-BTC
dated 22 December 2014 of the Ministry of Finance)

12. Deferred tax assets and liabilities

(a) Deferred tax assets

31/12/2023 1/1/2023
VND VND

Deferred tax assets

Foreign exchange differences (78,070,334) 1,170,509,495

Accrued expenses and provisions and fixed assets 14,526,579,920 33,814,693,966

14,448,509,586 34,985,203,461

(b) Deferred tax liabilities – net

31/12/2023 1/1/2023
VND VND

Deferred tax assets

Tax losses carry forwards 40,600,398,960 48,654,734,310

Accrued expenses 6,894,864,900 7,671,837,810

Accounts receivable 1,066,909,800 839,069,070

Others 4,312,401,060 3,596,732,370

Total deferred tax assets 52,874,574,720 60,762,373,560

Deferred tax liabilities

Fixed assets (286,678,468,838) (293,266,548,176)

Others (35,594,017,658) (55,478,119,993)

Total deferred tax liabilities (322,272,486,496) (348,744,668,169)

Net deferred tax liabilities (269,397,911,776) (287,982,294,609)

Deferred tax assets have been recognised on taxable temporary differences and tax losses incurred at Driftwood Dairy
Holding Corporation, a subsidiary incorporated and operating in the United States of America, using its effective tax rate.
152 VINAMILK 2023 ANNUAL REPORT CARE TO CHANGE

VIETNAM DAIRY PRODUCTS JOINT STOCK COMPANY AND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS Form B 09 – DN/HN
FOR THE YEAR ENDED 31 DECEMBER 2023 (CONTINUED) (Issued under Circular No. 202/2014/TT-BTC
dated 22 December 2014 of the Ministry of Finance)

13. Goodwill

2023 2022
VND VND

Opening balance 1,567,467,775,162 1,813,007,890,387

Charge for the year (245,540,115,225) (245,540,115,225)

Closing balance 1,321,927,659,937 1,567,467,775,162

14. Accounts payable to suppliers

Accounts payable to related parties

31/12/2023 1/1/2023
VND VND

Associates

APIS Corporation 55,564,491,035 84,876,556,696

Asia Coconut Processing Joint Stock Company 3,329,504,399 2,503,728,482

Miraka Holdings Limited - 133,471,803,087

VINAMILK ANNUAL REPORT 2023 CARE TO CHANGE 153

VIETNAM DAIRY PRODUCTS JOINT STOCK COMPANY AND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS Form B 09 – DN/HN
(Issued under Circular No. 202/2014/TT-BTC dated
FOR THE YEAR ENDED 31 DECEMBER 2023 (CONTINUED) 22 December 2014 of the Ministry of Finance)

15. Borrowings

(a) Short-term borrowings

1/1/2023 Incurred Paid Reclassification Currency translation 31/12/2023

VND VND VND VND differences VND
VND

Short-term borrowings 4,848,264,489,103 17,757,986,246,045 (14,520,711,699,741) (18,109,929,817) (9,332,701,623) 8,058,096,403,967

Current portion of
18,865,350,000 - (21,116,856,754) 159,129,653,319 2,782,621,735 159,660,768,300
long-term borrowings

4,867,129,839,103 17,757,986,246,045 (14,541,828,556,495) 141,019,723,502 (6,550,079,888) 8,217,757,172,267

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

Lenders Note Currency 31/12/2023 1/1/2023

VND VND

Joint Stock Commercial Bank for Foreign Trade of Vietnam, Ho Chi

(i) VND 4,899,840,000,000 2,260,267,036,000
Minh City Branch

Sumitomo Mitsui Banking Corporation, Ho Chi Minh City Branch (i) USD 1,716,480,000,000 1,150,000,000,000

Vietnam Joint Stock Commercial Bank For Industry And Trade (i) VND 750,000,000,000 -

DBS Bank, Singapore (i) USD 476,800,000,000 1,137,500,000,000

HSBC Bank (Vietnam) Limited, Ho Chi Minh City Branch (i) VND 98,279,506,500 126,080,577,000

Lao-Viet Bank Co., Ltd, XiengKhouang Branch (i) USD 12,210,000,000 -

ANZ Bank Laos (i) USD - 17,883,094,110

HSBC Bank USA (ii) USD 104,486,897,467 156,533,781,993

8,058,096,403,967 4,848,264,489,103

(i) These borrowings were unsecured.

(ii) This borrowing was secured by assets with carrying amount of VND798,112 million as at 31 December 2023 (1/1/2023: VND896,805 million).
154 VINAMILK ANNUAL REPORT 2023 CARE TO CHANGE

VIETNAM DAIRY PRODUCTS JOINT STOCK COMPANY AND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS Form B 09 – DN/HN
(Issued under Circular No. 202/2014/TT-BTC
FOR THE YEAR ENDED 31 DECEMBER 2023 (CONTINUED) dated 22 December 2014 of the Ministry of Finance)

(b) Long-term borrowings

1/1/2023 Addition Paid Reclassification Currency translation 31/12/2023

VND VND VND VND differences VND
VND

Long-term borrowings 84,894,075,000 308,830,719,757 - (3,006,926,937) 7,418,974,580 398,136,842,400

Current portion of
(18,865,350,000) - 21,116,856,754 (159,129,653,319) (2,782,621,735) (159,660,768,300)
long-term borrowings

66,028,725,000 308,830,719,757 21,116,856,754 (162,136,580,256) 4,636,352,845 238,476,074,100

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

Lenders Note Currency Year of 31/12/2023 1/1/2023

maturity VND VND

ANZ Bank Laos (i) USD 2026 299,176,892,520 -

Saigon Thuong Tin Lao Bank Limited, Lane Xang

(i) USD 2030 31,011,299,880 -
Branch

HSBC Bank USA (ii) USD 2027 67,948,650,000 84,894,075,000

398,136,842,400 84,894,075,000

(i) This borrowing was unsecured.

(ii) This borrowing was secured by the same pledge assets of the borrowing in note 15(a)(ii).
VINAMILK ANNUAL REPORT 2023 CARE TO CHANGE 155

VIETNAM DAIRY PRODUCTS JOINT STOCK COMPANY AND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS Form B 09 – DN/HN
(Issued under Circular No. 202/2014/TT-BTC dated
FOR THE YEAR ENDED 31 DECEMBER 2023 (CONTINUED) 22 December 2014 of the Ministry of Finance)

16. Taxes payable to State Treasury

1/1/2023 Incurred Paid Currency translation 31/12/2023

VND VND VND differences VND
VND

Value added tax 165,355,742,040 2,171,093,386,508 (2,184,051,394,802) 80,158,653 152,477,892,399

Corporate income tax 418,101,152,888 1,948,363,404,628 (1,564,073,949,237) 914,807,614 803,305,415,893

Personal income tax 6,551,877,381 189,538,233,025 (187,470,005,234) 18,255,971 8,638,361,143

Import tax 7,577,932,115 69,493,983,354 (74,779,512,432) 66,249,595 2,358,652,632

Other taxes 548,423,871 94,240,390,383 (93,672,627,629) (17,591,907) 1,098,594,718

598,135,128,295 4,472,729,397,898 (4,104,047,489,334) 1,061,879,926 967,878,916,785

156 VINAMILK 2023 ANNUAL REPORT CARE TO CHANGE

VIETNAM DAIRY PRODUCTS JOINT STOCK COMPANY AND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS Form B 09 – DN/HN
FOR THE YEAR ENDED 31 DECEMBER 2023 (CONTINUED) (Issued under Circular No. 202/2014/TT-BTC
dated 22 December 2014 of the Ministry of Finance)

17. Accrued expenses

31/12/2023 1/1/2023
VND VND

Sale incentives, promotion 1,016,334,580,951 886,202,042,098

Advertising expenses 408,562,094,734 339,732,444,471

Transportation expenses 77,820,389,375 80,876,367,744

Expenses for outsourced employees 56,467,494,627 46,939,692,451

Interest expenses 111,297,320,193 59,910,322,507

Repair and maintenance expenses 20,595,436,109 15,984,085,729

Rental fees 15,573,513,957 18,623,204,640

Fuel expenses 8,167,978,703 7,712,203,638

Others 195,385,817,211 164,894,175,165

1,910,204,625,860 1,620,874,538,443

18. Other payables

31/12/2023 1/1/2023
VND VND

Insurance and trade union fees 2,278,679,336 3,656,536,904

Dividend payables 1,045,146,142,230 2,926,103,293,830

Others 147,539,415,151 129,493,539,502

1,194,964,236,717 3,059,253,370,236

Of which:

Short-term 1,193,900,858,465 3,055,541,590,234

Long-term 1,063,378,252 3,711,780,002

VINAMILK 2023 ANNUAL REPORT CARE TO CHANGE 157

VIETNAM DAIRY PRODUCTS JOINT STOCK COMPANY AND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS Form B 09 – DN/HN
FOR THE YEAR ENDED 31 DECEMBER 2023 (CONTINUED) (Issued under Circular No. 202/2014/TT-BTC
dated 22 December 2014 of the Ministry of Finance)

19. Provision

31/12/2023 1/1/2023
VND VND

Provision for severance allowance (*) 9,078,184,525 8,096,601,309

Others 7,692,329,760 18,539,158,003

16,770,514,285 26,635,759,312

(*) Movements of provision for severance allowance during the year as follows:

2023 2022
VND VND

Opening balance 8,096,601,309 6,438,083,860

Increase in provision during the year 6,184,981,104 11,600,758,238

Provision utilised during the year (5,076,303,334) (9,927,124,140)

Provision written back during the year (127,094,554) (15,116,649)

Closing balance 9,078,184,525 8,096,601,309

20. Bonus and welfare fund

This fund is established by appropriating amounts from retained profits as approved by shareholders at shareholders’
meeting. This fund is used to pay bonus and welfare to the Company’s and subsidiaries’ employees in accordance with the
Company’s bonus and welfare policies.

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

2023 2022
VND VND

Opening balance 402,163,642,465 507,365,624,913

Appropriation (Note V.21) 968,335,437,517 948,573,877,583

Other increases 3,300,000 11,920,000

Utilisation (798,410,854,184) (1,053,787,780,031)

Closing balance 572,091,525,798 402,163,642,465

158 VINAMILK ANNUAL REPORT 2023 CARE TO CHANGE

VIETNAM DAIRY PRODUCTS JOINT STOCK COMPANY AND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS Form B 09 – DN/HN
(Issued under Circular No. 202/2014/TT-BTC
FOR THE YEAR ENDED 31 DECEMBER 2023 (CONTINUED) dated 22 December 2014 of the Ministry of Finance)

21. Changes in owners’ equity

Foreign
Share Other exchange Investment and Retained Non-controlling
Share capital premium capital differences development fund profits interest Total
VND VND VND VND VND VND VND VND

As at
20,899,554,450,000 34,110,709,700 202,658,418,215 253,569,601 4,352,441,335,060 7,594,260,378,375 2,766,835,388,433 35,850,114,249,384
1 January 2022

Contributed capital to
- - - - - - 338,100,000,000 338,100,000,000
subsidiaries

Net profit for the year - - - - - 8,516,023,694,342 61,551,625,366 8,577,575,319,708

Appropriation to
- - - - 914,320,249,913 (914,320,249,913) - -
equity funds

Appropriation to
bonus and welfare - - - - - (924,627,242,747) (23,946,634,836) (948,573,877,583)
fund (Note V.20)

Merger of two
- - - - - 54,397,598,859 (54,397,555,359) 43,500
subsidiaries

Dividends - - - - - (10,972,266,086,250) - (10,972,266,086,250)

Dividends of a
subsidiary to non- - - - - - - (120,675,772,300) (120,675,772,300)
controlling interest

Currency translation
- - - 92,244,478,626 - - - 92,244,478,626
differences

As at
20,899,554,450,000 34,110,709,700 202,658,418,215 92,498,048,227 5,266,761,584,973 3,353,468,092,666 2,967,467,051,304 32,816,518,355,085
1 January 2023
VINAMILK ANNUAL REPORT 2023 CARE TO CHANGE 159

VIETNAM DAIRY PRODUCTS JOINT STOCK COMPANY AND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS Form B 09 – DN/HN
(Issued under Circular No. 202/2014/TT-BTC dated
FOR THE YEAR ENDED 31 DECEMBER 2023 (CONTINUED) 22 December 2014 of the Ministry of Finance)
Foreign Investment
Share Other exchange and development Retained Non-controlling
Share capital premium capital differences fund profit interest Total
VND VND VND VND VND VND VND VND

As at
20,899,554,450,000 34,110,709,700 202,658,418,215 92,498,048,227 5,266,761,584,973 3,353,468,092,666 2,967,467,051,304 32,816,518,355,085
1 January 2023

Capital contributed
by non-controlling
- - - - - (2,244,994,800) 492,032,003,810 489,787,009,010
interest to a
subsidiary

A subsidiary
converting retained
- - 296,422,385,000 - - (296,422,385,000) - -
profits to capital
contribution

Capital refunded to
a non-controlling
- - - - - - (142,548,827,636) (142,548,827,636)
interest of a dissolved
subsidiary

Net profit for the year - - - - - 8,873,812,416,864 145,541,748,187 9,019,354,165,051

Appropriation to
- - - - 896,975,002,023 (896,975,002,023) - -
equity funds

Appropriation to
bonus and welfare - - - - - (940,037,560,976) (28,297,876,541) (968,335,437,517)
fund (Note V.20)

Dividends - - - - - (6,165,368,562,744) - (6,165,368,562,744)

Dividends of a
subsidiary to
- - - - - - (105,265,039,805) (105,265,039,805)
non-controlling
interest

Currency translation
- - - 81,602,104,026 - - - 81,602,104,026
differences

As at
20,899,554,450,000 34,110,709,700 499,080,803,215 174,100,152,253 6,163,736,586,996 3,926,232,003,987 3,328,929,059,319 35,025,743,765,470
31 December 2023
160 VINAMILK 2023 ANNUAL REPORT CARE TO CHANGE

VIETNAM DAIRY PRODUCTS JOINT STOCK COMPANY AND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS Form B 09 – DN/HN
FOR THE YEAR ENDED 31 DECEMBER 2023 (CONTINUED) (Issued under Circular No. 202/2014/TT-BTC
dated 22 December 2014 of the Ministry of Finance)

22. Share capital

The Company’s authorised and issued share capital are:

31/12/2023 and 1/1/2023

Number of shares VND

Authorised share capital 2,089,955,445 20,899,554,450,000

Issued shares

Ordinary shares 2,089,955,445 20,899,554,450,000

Shares currently in circulation

Ordinary shares 2,089,955,445 20,899,554,450,000

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

Details of share capital:

31/12/2023 and 1/1/2023

VND %

The State Capital Investment Corporation 7,524,766,020,000 36.00%

Other shareholders’ capital 13,374,788,430,000 64.00%

20,899,554,450,000 100.00%

23. Dividends

For the year ended 31 December 2023: Annual General Meeting of the Company resolved to distribute dividends in cash
amounting to at least 50% of consolidated net profit after tax attributable to equity shareholders of the Company. Total
dividends distributed from retained profits for the fiscal year 2023 were VND4,179,911 million (VND1,500 per share for the
first advance distribution for the fiscal year 2023 and VND500 per share for the second advance distribution for the fiscal
year 2023), remaining dividends distributed from 2023 retained profits will be announced in 2024 after approved by the
Annual General Meeting.

For the year ended 31 December 2022: Annual General Meeting of the Company resolved to distribute dividends in cash
amounting to VND3,850/share (38.5%). Total dividends distributed from retained profits for the fiscal year 2022 were
VND8,046,328 million (VND1,500/share for the first advance distribution for the fiscal year 2022, VND1,400 per share for
the second advance distribution for the fiscal year 2022 and VND950 per share for the remaining distribution for the fiscal
year 2022).
VINAMILK 2023 ANNUAL REPORT CARE TO CHANGE 161

VIETNAM DAIRY PRODUCTS JOINT STOCK COMPANY AND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS Form B 09 – DN/HN
FOR THE YEAR ENDED 31 DECEMBER 2023 (CONTINUED) (Issued under Circular No. 202/2014/TT-BTC
dated 22 December 2014 of the Ministry of Finance)

24. Off balance sheet items

(a) Leases

The future minimum lease payments under non-cancellable operating leases were:

31/12/2023 1/1/2023
VND VND

Within one year 83,065,632,575 70,716,169,179

Within two to five years 218,760,285,511 219,329,158,109

More than five years 928,708,804,943 788,339,947,001

1,230,534,723,029 1,078,385,274,289

(b) Foreign currencies

31/12/2023 1/1/2023
VND VND

Original currency Equivalent VND Original currency Equivalent VND

▪ USD 6,488,710 156,248,127,650 1,949,585 45,639,789,532

▪ EUR 4,402 116,076,654 33,756 829,950,721

156,364,204,304 46,469,740,253

(c) Capital commitments

At the reporting date, the Group had following outstanding capital commitments approved but not provided for in the
balance sheet:

31/12/2023 1/1/2023
VND VND

Approved and contracted 2,481,883,242,541 2,542,718,016,426

162 VINAMILK 2023 ANNUAL REPORT CARE TO CHANGE

VIETNAM DAIRY PRODUCTS JOINT STOCK COMPANY AND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS Form B 09 – DN/HN
FOR THE YEAR ENDED 31 DECEMBER 2023 (CONTINUED) (Issued under Circular No. 202/2014/TT-BTC
dated 22 December 2014 of the Ministry of Finance)

VI. SUPPLEMENTARY INFORMATION TO ITEMS DISCLOSED IN THE CONSOLIDATED

STATEMENT OF INCOME

1. Revenue from sales of goods and provision of services

Total revenue represented the gross value of goods sold and services rendered exclusive of value added tax.

Net revenue comprised:

2023 2022
VND VND

Total revenue

• Sales of finished goods 56,958,465,910,163 56,583,366,266,697

• Sales of merchandise goods 3,257,277,347,350 3,218,309,235,889

• Services rendered 50,208,997,764 39,602,107,343

• Rental income from investment property 7,939,153,750 7,706,976,033

• Others 205,021,157,713 225,745,637,337

60,478,912,566,740 60,074,730,223,299

Less revenue deductions

• Sale discounts 21,886,839,948 68,389,179,115

• Sale returns 88,110,215,287 50,093,846,766

109,997,055,235 118,483,025,881

Net revenue 60,368,915,511,505 59,956,247,197,418

In which revenue from sales to related parties were as follows:

2023 2022
VND VND

Associates and joint venture

Del Monte - Vinamilk Dairy Philippines, Inc. 49,872,454,133 74,571,387,027

APIS Corporation 21,913,383,080 567,188,980

Asia Coconut Processing Joint Stock Company 299,107,953 -

VINAMILK 2023 ANNUAL REPORT CARE TO CHANGE 163

VIETNAM DAIRY PRODUCTS JOINT STOCK COMPANY AND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS Form B 09 – DN/HN
FOR THE YEAR ENDED 31 DECEMBER 2023 (CONTINUED) (Issued under Circular No. 202/2014/TT-BTC
dated 22 December 2014 of the Ministry of Finance)

2. Cost of sales

2023 2022
VND VND

Total cost of sales

• Finished goods sold 31,878,227,167,382 32,305,714,096,438

• Merchandise goods sold 3,157,232,797,730 3,061,626,272,799

• Cost of promotional goods 591,024,042,719 581,247,707,149

• Operating costs of investment property 600,352,722 1,643,358,171

• Services rendered 3,702,842,022 1,033,584,784

• Allowance for inventories 19,362,392,404 (22,272,945,561)

• Other cost of sales 174,034,301,116 130,023,616,931

35,824,183,896,095 36,059,015,690,711

3. Financial income

2023 2022
VND VND

Interest income from deposits 1,539,726,844,807 1,198,974,626,506

Foreign exchange gains 121,381,710,729 117,613,345,537

Dividend income 6,319,678,399 11,715,092,058

Others 48,939,342,398 51,601,343,639

1,716,367,576,333 1,379,904,407,740
164 VINAMILK 2023 ANNUAL REPORT CARE TO CHANGE

VIETNAM DAIRY PRODUCTS JOINT STOCK COMPANY AND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS Form B 09 – DN/HN
FOR THE YEAR ENDED 31 DECEMBER 2023 (CONTINUED) (Issued under Circular No. 202/2014/TT-BTC
dated 22 December 2014 of the Ministry of Finance)

4. Financial expenses

2023 2022
VND VND

Interest expense on borrowings 354,094,837,255 166,039,091,744

Interest expense on deposits received 726,308,496 841,917,041

Foreign exchange losses 111,371,755,094 279,985,584,683

Allowance for diminution in value of financial investments 111,064,553 4,499,900,996

Payment discounts for customers 22,001,462,878 17,601,776,691

Others 14,817,342,938 148,568,911,840

503,122,771,214 617,537,182,995

5. Selling expenses

2023 2022
VND VND

Promotion, product display expenses,

9,005,381,916,807 8,687,031,912,675
support and commission expenses for distributors

Advertising and market research expenses 1,329,025,364,599 1,222,454,841,064

Staff costs 777,084,993,899 742,460,039,515

Transportation expenses 722,193,280,346 883,656,485,446

Outside service expenses 816,827,999,117 680,085,111,139

Tools and supplies expenses 148,065,816,520 132,514,400,886

Materials expenses 75,985,132,066 83,709,353,015

Depreciation expenses 54,713,406,500 52,720,135,277

Warranty expenses 88,815,202,025 63,579,967,854

13,018,093,111,879 12,548,212,246,871
VINAMILK 2023 ANNUAL REPORT CARE TO CHANGE 165

VIETNAM DAIRY PRODUCTS JOINT STOCK COMPANY AND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS Form B 09 – DN/HN
FOR THE YEAR ENDED 31 DECEMBER 2023 (CONTINUED) (Issued under Circular No. 202/2014/TT-BTC
dated 22 December 2014 of the Ministry of Finance)

6. General and administration expenses

2023 2022
VND VND

Staff costs 659,676,401,612 556,391,771,664

Outside service expenses 377,778,489,701 348,107,136,538

Depreciation expenses 82,056,476,612 83,005,211,618

Per-diem allowances 52,930,561,888 41,199,620,502

Materials expenses 48,077,797,836 54,565,711,147

Transportation expenses 56,168,322,985 46,648,088,480

Loading expenses 28,123,310,636 18,149,433,658

Office supplies 22,927,334,344 22,520,219,758

Taxes, fees and duties 51,505,132,433 62,163,438,673

Bank charges 13,435,942,836 11,980,489,731

Provision expenses 7,388,901,226 13,200,119,487

Goodwill amortisation 245,540,115,225 245,540,115,225

Others 110,010,340,863 92,374,324,597

1,755,619,128,197 1,595,845,681,078

7. Other income

2023 2022
VND VND

Rebate income from suppliers 124,916,695,382 117,059,705,435

Proceeds from disposals of fixed assets and

105,622,930,546 137,273,416,582
construction in progress

Compensations received from other parties 8,982,254,515 10,250,458,524

Others 113,887,011,108 24,438,218,586

353,408,891,551 289,021,799,127
166 VINAMILK 2023 ANNUAL REPORT CARE TO CHANGE

VIETNAM DAIRY PRODUCTS JOINT STOCK COMPANY AND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS Form B 09 – DN/HN
FOR THE YEAR ENDED 31 DECEMBER 2023 (CONTINUED) (Issued under Circular No. 202/2014/TT-BTC
dated 22 December 2014 of the Ministry of Finance)

8. Other expenses

2023 2022
VND VND

Net book value of fixed assets and construction in

171,265,423,648 225,597,996,436
progress disposed/written off

Others 117,876,958,224 58,953,953,046

289,142,381,872 284,551,949,482

9. Production and business costs by element

2023 2022
VND VND

Raw material costs included in production costs 27,814,583,335,708 28,249,917,380,052

Labour costs and staff costs 2,859,550,156,264 2,584,010,369,890

Depreciation and amortisation 2,042,424,361,116 2,081,613,738,006

Outside services 3,254,256,874,931 3,251,372,183,016

Other expenses 11,986,221,166,984 11,445,742,902,357

10. Income tax

(a) Recognised in the consolidated statement of income

2023 2022
VND VND

Current tax expense 1,948,363,404,628 1,956,248,296,285

In which: current tax (income)/expense relating to

(28,127,282,701) 17,586,208,221
taxable income of prior years

Deferred tax expense/(benefit)

Origination and reversal of temporary differences 181,821,807 (38,288,939,248)

Income tax expense 1,948,545,226,435 1,917,959,357,037

VINAMILK 2023 ANNUAL REPORT CARE TO CHANGE 167

VIETNAM DAIRY PRODUCTS JOINT STOCK COMPANY AND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS Form B 09 – DN/HN
FOR THE YEAR ENDED 31 DECEMBER 2023 (CONTINUED) (Issued under Circular No. 202/2014/TT-BTC
dated 22 December 2014 of the Ministry of Finance)

(b) Reconciliation of effective tax rate

2023 2022
VND VND

Accounting profit before tax 10,967,899,391,486 10,495,534,676,745

Tax at the Company’s tax rate 2,193,579,878,298 2,099,106,935,349

Tax rate differential applied to Company’s

(76,642,661,751) (97,579,560,790)
subsidiaries, branches and factories

Tax exempt income (1,263,935,680) (2,343,018,412)

Non-deductible expenses 14,305,648,993 10,833,816,918

Tax incentives (262,068,460,614) (181,818,411,414)

Changes in deferred tax assets not recognised 108,762,039,890 72,173,387,165

Current tax (income)/expense relating to taxable

(28,127,282,701) 17,586,208,221
income of prior years

Income tax expense 1,948,545,226,435 1,917,959,357,037

(c) Applicable tax rates

The companies in the Group are required to pay income tax at rates ranging from 10% to 21%, depending on principal activities
of their factories and branches, on taxable profits. The Company and its subsidiaries incurred the income tax charges.

(d) Global minimum top-up tax

On 29 November 2023, the National Assembly of Vietnam passed a resolution to introduce Income Inclusion Rule (“IIR”)
and Qualified Domestic Minimum Top-up Tax (“QDMTT”), which broadly align with Pillar Two of the Global Anti-Base
Erosion Model Rules of the OECD with effect from 1 January 2024. The resolution requires large multi-national enterprises
to pay a global minimum corporate income tax of 15% on profit in each jurisdiction in which they operate.
168 VINAMILK 2023 ANNUAL REPORT CARE TO CHANGE

VIETNAM DAIRY PRODUCTS JOINT STOCK COMPANY AND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS Form B 09 – DN/HN
FOR THE YEAR ENDED 31 DECEMBER 2023 (CONTINUED) (Issued under Circular No. 202/2014/TT-BTC
dated 22 December 2014 of the Ministry of Finance)

11. Basic earnings per share

The calculation of earnings per share for the year ended 31 December 2023 was based on the profit attributable to
ordinary shareholders after deducting the amounts appropriated to bonus and welfare fund and a weighted average
number of ordinary shares outstanding, calculated as follows:

(a) Net profit attributable to ordinary shareholders

2023 2022
VND VND

Net profit for the year – attributable to ordinary

shareholders before appropriation to bonus and 8,873,812,416,864 8,516,023,694,342
welfare fund

Appropriation to bonus and welfare fund – attributable

(940,037,560,976) (924,627,242,747)
to ordinary shareholders

Net profit for the year attributable to ordinary

shareholders after appropriation to bonus and 7,933,774,855,888 7,591,396,451,595
welfare fund

(b) Weighted average number of ordinary shares

31/12/2023 1/1/2023

Number of shares Number of shares

Issued ordinary shares at the beginning of the

year and weighted average number of ordinary 2,089,955,445 2,089,955,445
shares during the year

As at 31 December 2023, the Group did not have potentially dilutive ordinary shares.

VII. OTHER INFORMATION

1. Significant transactions with related parties

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

2023 2022
Related party Relationship Nature of transaction VND VND

Purchases of goods 229,220,379,225 231,425,301,017

Miraka Holdings Limited Associate
Sales of goods - 103,180,923

Purchases of goods 285,921,912,107 471,997,298,179

APIS Corporation Associate Other income 120,834,000 -

Dividends received 1,300,000,000 -

VINAMILK 2023 ANNUAL REPORT CARE TO CHANGE 169

VIETNAM DAIRY PRODUCTS JOINT STOCK COMPANY AND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS Form B 09 – DN/HN
FOR THE YEAR ENDED 31 DECEMBER 2023 (CONTINUED) (Issued under Circular No. 202/2014/TT-BTC
dated 22 December 2014 of the Ministry of Finance)

2023 2022
Related party Relationship Nature of transaction VND VND

Purchases of goods 33,001,762,718 37,370,417,796

Asia Coconut Processing
Associate Purchase of shares - 30,900,000,000
Joint Stock Company
Dividends received 9,270,000,000 12,360,000,000

Del Monte - Vinamilk Dairy Capital contribution 35,769,832,735 12,275,000,000

Joint venture
Philippines, Inc. Other income 210,511,364 -

The State Capital

Shareholder Dividends 2,219,805,975,900 2,897,034,917,700
Investment Corporation

Key management personnel compensation

2023 2022
VND million VND million

Board of Directors members

Total fees

Mr. Nguyen Hanh Phuc – Chairman 3,123 1,720

Mdm. Le Thi Bang Tam – Chairwoman 262 1,837

Mdm. Mai Kieu Lien – Member (i) 1,969 2,067

Mr. Lee Meng Tat – Member 2,283 2,398

Ms. Dang Thi Thu Ha – Member 2,283 2,398

Mr. Le Thanh Liem – Member (ii) 867 931

Mr. Michael Chye Hin Fah – Member 2,500 2,646

Mr. Do Le Hung – Member 2,283 2,398

Mr. Alain Xavier Cany – Member 2,520 2,646

Ms. Tieu Yen Trinh – Member 1,811 1,734

Mr. Hoang Ngoc Thach – Member 2,520 2,411

Chief Executive Officer

Average salary per month

Mdm. Mai Kieu Lien 404 366

Other key management personnel

Average salary per month per person

Executive Directors 242 167

(i) Board of Directors member cum Chief Executive Officer.

(ii) Board of Directors member cum Executive Director – Finance.

170 VINAMILK ANNUAL REPORT 2023 CARE TO CHANGE

VIETNAM DAIRY PRODUCTS JOINT STOCK COMPANY AND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS Form B 09 – DN/HN
(Issued under Circular No. 202/2014/TT-BTC
FOR THE YEAR ENDED 31 DECEMBER 2023 (CONTINUED) dated 22 December 2014 of the Ministry of Finance)

2. Segment information

Segment information is presented in respect of the Group’s primary segment, which is the geographical segment.

Segment results include items directly attributable to a segment as well as those that can be allocated on a reasonable basis. Unallocated items comprise assets and liabilities,
financial income and expenses, selling expenses, general and administration expenses, other gains or losses, and corporate income tax.

Geographical segments

In presenting information on the basis of geographical segments, segment revenue is based on the geographical location of customers, which is located in Vietnam (“Domestic”) or
countries other than Vietnam (“Overseas”). Segment assets and capital expenditure are not presented since most of assets and production facilities are in Vietnam.

Domestic Overseas Total

(Customers located in Vietnam) (Customers located in countries other than Vietnam)

2023 2022 2023 2022 2023 2022

VND VND VND VND VND VND

Net revenue 50,617,453,566,955 50,704,403,447,753 9,751,461,944,550 9,251,843,749,665 60,368,915,511,505 59,956,247,197,418

Cost of sales (29,723,643,941,157) (30,148,858,565,457) (6,100,539,954,938) (5,910,157,125,254) (35,824,183,896,095) (36,059,015,690,711)

Segment gross
20,893,809,625,798 20,555,544,882,296 3,650,921,989,612 3,341,686,624,411 24,544,731,615,410 23,897,231,506,707
profit

27 February 2024
Prepared by Approved by

Le Thanh Liem Mai Kieu Lien

Executive Director – Finance Chief Executive Officer
cum Chief Accountant
Vietnam Dairy Products Joint Stock Company
10 Tan Trao, Tan Phu Ward, Dicstrict, Ho Chi Minh City
Tel: (+84. 28) 54 155 555
Fax: (+84. 28) 54 161 226
Email: vinamilk@vinamilk.com.vn
www.vinamilk.com.vn