NKD: Explanation for business result in Q2/2010

North Kinhdo Food Joint Stock Company has explained business result in Q2/2010 as follows:

* Pre-tax profit in Q2/2009: VND24.6 billion

* Pre-tax profit in Q2/2010: VND1.4 billion, decreasing VND23.2 billion or 94%

* Reasons:

* Financial income declined from VND17.64 billion in Q2/2009 to VND8.22 billion in Q2/2010, or decrease of VND9.4 billion (53%). It was because the securities market in 2010 sharply decreased in comparison in 2009.

* Financial expenses in Q2/2010 rapidly rose from VND4.1 billion in Q2/2009 to VND13.7 billion in Q2/2010, or increase of VND9.6 billion (237%). The company had to deduct for provision of financial investment. In addition, loan interest in 2009 was lower and the company also belonged to the group of being supported interest rate. In 2010, interest rate is generally higher and the company is no longer supported interest rate by the government.

* Selling expenses increased because the company held many promotion programs to expand the market.

hose

>   SMC: Explanation for business result in 6 months 2010 (02/08/2010)

>   DHG: Trading result of inside shareholder (02/08/2010)

>   HRC: Trading result of affiliated person (02/08/2010)

>   HSI: Transaction of inside shareholder (02/08/2010)

>   IMP: Trading result of inside shareholder (02/08/2010)

>   MPC: Trading result of major shareholder (02/08/2010)

>   MTG: Trading result of major shareholder (02/08/2010)

>   SAV: Trading result of major shareholder (02/08/2010)

>   SAV: Transaction of major shareholder (02/08/2010)

>   SSC: Trading result of major shareholder (02/08/2010)