SEL: Business Operational Explanation

According to the Financial Statement QIII/2011, profit after tax decreased over 10% in compare to QIII/2010. Song Da 11 Thang Long JSC (HNX: SEL) explained the decrease as follows:

The revenue of QIII/2011 increased by 38.91% compared to QIII/2010. Cost of goods sold increased 49.36%, rate of Cost of goods sold/ Revenue of QIII/2010 was 80.77% and Cost of goods sold/ Revenue of QIII/2011 was 86.85%. Therefore, profit after tax decreased 57.93% because:

- Due to the world’s and Vietnam’s economic crisis, beside of high inflation in first 9 months of 2011, which affected the cost of material increased to 6,08%;

- The Company are operating in construction, which needs long – period of capital. Interest for bank loan was high 20 – 25%/year, interest expenses in QIII/2011 was VND million 3.095, increase to 82.61% compared to QIII/2010.

HNX

>   HU3: Explanation for business results in QIII/2011 (09/11/2011)

>   ELC: Explanation for business results in QIII/2011 (09/11/2011)

>   IMP: Explanation for business results in QIII/2011 (09/11/2011)

>   TLH: Resolution of the Board of Directors (11/11/2011)

>   UDC: Record date for consulting shareholders (09/11/2011)

>   BTP: Business operational explanation (08/11/2011)

>   DQC: Resolution of the BOD (08/11/2011)

>   SBT: Resolution of the BOD (08/11/2011)

>   TIE: Business operational explanation (08/11/2011)

>   MAFPF1: NAV from 27 Oct 2011 to 03 Nov 2011 (08/11/2011)