THE REPORT OF PHU NHUAN JOINT STOCK COMPANY

THE REPORT OF
PHU NHUAN JOINT STOCK COMPANY
I. BASIC PROFILE OF PNJ COMPANY
1) Information about PNJ

Firm name : Phu NhuanJoint StockCompany( PNJ.,JSC)
Address : 170E Phan DangLuu – 3 Ward – Phu Nhuan Town – HoChi MinhCity –
Viet Nam
Contact : (84-28) 39951703 – Email :
Business registrationcertificate : 0300521758
Tax identification number : 0300521758
Legal representative : Mrs. Cao Thi Ngoc Dung – Chairman of the board of PNJ
Company
Charter capital : 1.621.393.240.000
VND The main operation scope :
Producing jewelry and fine gold. Processing gold jewelry and fine art..
Production of details in silver and gold with precious metals or base metals
plated with precious metals such as food, flatware, dishes, bowls, sanitary
details, office details, expenses religious use. Produce specifications or
experiments with precious metals: crucibles, shovel tables, metal anodes.
Precious metal watches, cuffs, watch straps, cigarette cases.
Export and import of gold jewelry, fine art articles in gold, silver, other
precious metals, diamonds, precious stones, semi-precious stones, gold bars
and raw material gold in the form of leaves, powder wires, blocks, ingots and

TIEU LUAN MOI download :


seeds , pieces. Export and import jewelry, imitation jewelry and related
details.
Service of inspection of diamonds, precious stones and precious metals

Real estate business
2) The process of formation and development

28/04/1988: Phu Nhuan Jewelry Shop was established, directly under the
People's Committee of Phu Nhuan District
1992: Officially named Phu Nhuan Jewelry Company after changing its
name from Phu Nhuan Jewelry and Gold Shop and Kieu Hoi Fine Jewelry
Company Phu Nhuan, at the same time identifying the development
strategy professional jewelry manufacturers; At this time, PNJ also
expanded its activities by founding Dong A Bank with a 40% stake
2001: PNJ Silver brand was officially born
02/01/2004: Equitized, transformed from a Party economic enterprise into
Phu Nhuan Jewelry Joint Stock Company
03/04/2008: PNJ officially changed the new logo to celebrate the 20th
anniversary of its establishment and development
03/2009: Stock of PNJ was officially listed on HOSE, increasing its
charter capital to 400 billion VND
08/2009: CAO Fashion Company Limited was established with the
addition of watch business of world famous brands at PNJ system
03/2011: PNJ started construction of PNJ Jewelry Factory, and at the same
time constantly upgraded the scale of distribution system, inaugurated the
headquarters and opened gold jewelry centers in many places.
18/10/2012: Inaugurated PNJ Jewelry Enterprise with total investment
capital of VND 120 billion and production capacity of over 4 million
products / year
11/2013: Increased charter capital to 755.97 billion VND
10/07/2015: Increased charter capital to 982, 745, 770,000 VND
02/02/2018: Increased charter capital to 1,081,020,340,000 VND

TIEU LUAN MOI download :

10/07/2018: Increasing charter capital to 1,621,393,240,000 VND
14/12/2018: Increased charter capital to 1,670,029,820,000 VND

3) Mission

Constantly mobilizing to achieve sustainable development in aglobal business
environment with scientific and advanced management systems, modern
machinery and equipment, skilled and dedicated workers to providing customers
with diverse products and services with the best quality and competitive prices

4) Business philosophy

Put customer benefits and social benefits into business benefits
5) Business operation status

PNJ participates in the main business activities as follows:
Trading in gold, silver and gemstones: PNJ is a gold and silver processing
enterprise, then resells to gold and silver business shops all over the
country with the main products being machine chains and gold casting
jewelry 58.5% and 68%. With a nationwide retail network, PNJ has
trademarked brands such as PNJ Gold, PNJ Silver, CAO Fine Jewelery,
Jeara, Yabling. Some brands are exported abroad. In April 2008, PNJ
cooperated with Dong A Bank to upgrade the production of Phuong Hoang
PNJ into Phuong Hoang PNJ – Dong A Bank brand and put it into
widespread consumption in the market. Gold piece products were created
to meet the demand of storing, exchanging and trading people.
Export activities: PNJ exports gold bars and jewelry to big and stable
markets. The company has just been operating since 2004 but has also

made great progress. By 2010, the company had export gold bars to
Denmark, Germany, America, Australia ..., most recently Japan and
Canada. Promote promotion and increase PNJ gold bar business revenue
with very positive results with pepper ratio PNJ gold bullion accounted for
74% of total gold bar consumption volume throughout the PNJ system

TIEU LUAN MOI download :


(up 22% compared to the same period in 2009), showing the liquidity and
reputation of gold bar brand Phuong Hoang PNJ - DongA Bank dated
more affirmation in domestic and world markets.
Financial investment activities: In addition to core business, PNJ also uses
its capital for financial investment activities through the forms of founding
shareholders, joint ventures, and capital contribution to the fields. Potential
areas to maximize profits for the company.
6) Some achievement of PNJ in 2016,2017,2018

Evidently, especially in the last 5 months in 2018, PNJ has a total revenue
of about 6.489 billion VND, up 34.1% compared to the same period. In
particular, retail sales reached 4.763 billion VND. Gross profit reached
more than 1.149 billion VND and reached 46.4% of the yearly plan. These
figures have contributed to bringing the total profit before tax of PNJ to
over VND 580 billion.
PNJ is constantly increasing its influence in Asia. On November 7,2018
PNJ and Swarovski Group signed a cooperation agreement on the cocreation and creation of PNJ Suncut product, exclusively for PNJ brand,
exclusively around the world.
Previously, PNJ was the first Vietnamese jewelry brand to sign a strategic
cooperation with this "Austrian jewel", so far, ECZ product line
(Excellent Cubic Zirconia) of PNJ combined with CZ of Swarovski

becomes into an important growth link of PNJ

PNJ vs Swarovski

TIEU LUAN MOI download :


2018 saw "an explosive PNJ". After marking the fourth consecutive year
honored in the Top 100 best working environments in Vietnam organized
by Anphabe and Nielsen at the end of March 2018, this jewelry business
conquered Vietnam HR Awards Appraisal Council to attend the Best
Companies to work for in Asia awards ceremony - Asia's best working
environment, held on September 14, 2018.
As of December 31, 2008, PNJ recorded 55 stores increased compared to
the end of 2017, including opening 61 and closing 6 stores, continuing to
maintain the system expansion at a rapid rate (2017, 50 store increased).
In 2017, consolidated pre-tax profit reached 908.11 billion, up 54% over
the same period and reached 121% of the plan. Total revenue of PNJ
reached VND 11,049 billion, an increase of 28% compared to 2016, retail
sales reached VND 5,780 billion, up 39% over the same period. At the
same time, gross profit reached nearly VND 1,912 billion, up 36%
compared to the same period last year.
7.2017, Forbes Vietnam published a ranking of "40 most valuable
company brands", of which PNJ brand was valued at nearly US $ 57
million. About PNJ, the magazine commented: PNJ is a national brand of
jewelry that holds a unique position in Vietnam's jewelry industry.
In 2017, PNJ is the company with the highest profit margin among 3
enterprises, PNJ, Doji and SJC, which are much higher in the market.
In 2017, PNJ revenue reached nearly VND 11,000 billion, only half of that
of SJC, but the gross profit of the company was VND 1,912 billion, 11

times higher than SJC, equivalent to 17.4% gross profit margin.
7) Competitors of PNJ

7.1 Doji Gem Silver Joint Stock Company
Doji Gemstone Gold Group was formerly known as TTD
Technology

and

Trade

Development

Company

(established

on

28/07/1994) having had two decades of business operation in the field of
hinges as Gold. Silver Gemstones and constantly expanding investment,
encroaching into the field of Business Services, Real Estate and Banking

TIEU LUAN MOI download :


and Finance. So far, Doji Gemstone Gold Group consists of 7 member
companies operating under the model of Parent-Child company, 4 jointventure companies and 13 branches.Being the only Vietnamese member of
the International Gemstone Association (ICA) and was named the King of
Ruby with Vietnam Ruby Star product "Vietnam Star Ruby - VSR", Doji

group has promoted and contacted advancing and exporting Ruby and
Ruby star stones to many international markets such as Japan, Thailand,
India, Hong Kong, Taiwan etc. are proud to affirm the names of
Vietnamese gemstones made by Vietnamese people in the village Map of
world gems.
Some achievements of Doji Joint Stock Company :
Vietnam National Brand ranked and selected by the Ministry of
Industry and Trade (From 2012-2016)
Acquired ISO 9001: 2008 Certification on Quality Management
System by UK SGS Group - the world's leading organization in the
field of inspection, testing, certification and verification (2012).
Ranking the largest private enterprise in Vietnam (According to
VNR 500): Top 5/500 (2010), Top 3/500 (2011) and 03 consecutive
years reaching the position of No. 1/500 Large private enterprise
most in Vietnam (2012, 2013 & 2014).
Some achievements of Doji Joint Stock Company in 2016,2017 and 2018
Doji is the largest revenue and gold enterprise with nearly VND
52,000 billion in 2017, equivalent to USD 2.2 billion.
Revenue in 2018 was over VND 60,000 billion, an increase of 13%
compared to 2017, specifically VND 52,000 billion.

7.2 Saigon Gemstone Gold and Silver Company Limited - SJC
Founded in 1988, after 22 years of operation with the name Saigon
Jewelry Company - SJC. A state-owned enterprise under the People's
Committee of Ho Chi Minh City, operating under the model of parent

TIEU LUAN MOI download :


company - subsidiary company as a multidisciplinary business group in

which gold production, trading and jewelry are the main business, the
party besides real estate, financial investment and services.After
September 16, 2010, Saigon Jewelry Company - SJC changed its name
with the new name Saigon Jewelry Company Limited (Saigon Jewelry
Company Limited). SJC aims to become a leading economic group in the
country within the next few years, developing gold and jewelry business
with the foundation of a national brand to become an international brand.
The company model includes parent company, 23 branches, 6 subsidiaries
and 6 associates, 13 enterprises with investment capital. Distribution
business network includes more than 200 stores, 43 official agents, over
3,000 retail outlets nationwide. Besides, SJC also has a concentrated
jewelry manufacturing factory, which has shipped more than 500,000
products a year.
Some achievements of Saigon Gemstone Gold and Silver Company
Limited – SJC:
National brand title in two consecutive terms from 2008 to 2010
Top 500 Retailers in Asia - Pacific region ( Silver) in 5
consecutive years from 2006 to 2010
The title of Vietnam Strong Brand, Top 10 from 2004 - 2011
Gold Star Award in Vietnam from 2007 - 2010
Top 500 Largest Enterprises in Vietnam
Famous brand in Vietnam from 2006 to 2010, topped the jewelry
industry
AI.

DATA ANALYSIS
1) Income Statement

1.1 Income Statement

TIEU LUAN MOI download :


1.2 Common-size Income Statement

2) Balance Sheet

TIEU LUAN MOI download :


2.1 The Balance Sheet

2.2 Common-size Balance Sheet

TIEU LUAN MOI download :


3) Statement Of Cash Flow

TIEU LUAN MOI download :


4) Financial Ratios

The table show some ratios of PNJ company from 2016 to 2018. As an overall trend, it
is clear that the ratios transformed very chaotically.
Current ratio =
used ratios; it is a measure of short-term liquidity. The higher the current ratio,
the more liquid the firm is considered to be.
Looking at the table, we see that there was a significant increase in the ratio

between 2016 and 2017, it rose by approximately 0.62. Between 2017 and
2018, this figure dropped dramatically to 2.01890737. That meant in 2017,
more liquid the firm is considered to be.

TIEU LUAN MOI download :


Quick ratio =
liquid current assets. It’s also the one for which the book values are least
reliable as measures of market value because the quality of the inventory isn’t
considered. A quick ratio of 1.0 or greater is occasionally recommended.
It is easy to see from the table that the quick ratios of 3 years is smaller than
1.0. The ratio was at its highest level in 2017, it was about 0.33194291. In
2016 and 2018, the ratios stood at approximately 0.15. This data shows that
the ability of enterprises to pay short-term loans immediately is not good.
Cash ratio =
dramatic growth in the ratio, it increased from 0.076841788 to 0.11768773. It
fell to 0.07721204 in 2018
Inventory turnover =
its inventory into sales
We see that PNJ sold off the entire inventory approximately 2.5 times in 2016.
The ratio rose steadily to 2.66460364 in 2017 and there was a slight decrease in
2018, it declined to 2.37353176.
Days’ sales in inventory =
We see that in 2016, inventory sat 145 days on average before it is sold.
Alternatively, assuming we have used the most recent inventory and cost figures,
it will take about 145 days to work off our current inventory. It reached a peak of
154 days in 2018 and felt to a low of only 137 days in 2017.
Profit margin =
profit margin.

In 2016, the ratio of profit margin is approximately 0.05. This tell us that PNJ,
in an accounting sense, generates a little less than 5 percent in profit for every
dollars in sales. Between 2017 and 2018, the ratio remained fairly static at
approximately 0.06
Receivable turnover =
turnover

TIEU LUAN MOI download :


Sales

Net working capital turnover =
NWC ; this ratio measures how muck “work”
they get out of their working capital.
The ratio was at its highest level in 2016, it was approximately 8. Between 2016
and 2017, this figure dropped dramatically to 4.58963951. It rose by 0.793 over
the next year.
Total asset turnover =
In other words, for every dollar in assets, PNJ generated 2.4 in sales in 2016. It
fluctuated for the following two years. In 2017, it was 2.45957691 and in 2018,
it was 2.28006178
Return on assets (ROA) =
investment by comparing its income to its assets; is a measure of profit per
dollar of assets.
In 2016, the ratio was 0.1215554541. From 2016 to 2017, it rose by 0.0358. The
ratio peaked at 0.16135725 in 2017, it was at its highest level. There was a slight
decrease in the ratio in 2018.
Net income

Return on equity =

Total equity ; is a measure of how the stockholders fared

during the year. Because benefiting shareholders is their goal, ROE is, in an
accounting sense, the true bottom-line measure of performance. The ratio was at
its highest level in 2016. It went up ( 0.24575166 ) and down(0.2563163
) widely over the next two years
Total debt ratio =
all debts of all maturities to all creditors.
In this case, we might say that PNJ uses 58 percent debt in 2016. It fell to a low
of only 34 percent in 2017. The period between 2017 and 2018 saw a dramatic
growth in the ratio.

TIEU LUAN MOI download :


TIEU LUAN MOI download :