true gold fears no fire

Transcription

TRUE GOLD
FEARS NO FIRE
ANNUAL REPORT 2015
In 2015, accepting the difficulty as the control, the
challenge as the opportunity, PNJ was always stable
and brilliant, showing the strength and bravery to
reach new pinnacle.
If the challenge time is Fire,
the will, the enthusiasm, and
the passion are Gold
CONTENTS
OVERVIEW
OPERATION HISTORY
PRODUCTS & SERVICES
PERSONNEL ORGANIZATION &
CORPORATE GOVERNANCE
REPORT OF THE BOARD OF
DIRECTORS AND
BOARD OF MANAGEMENT
FINANCIAL REPORT
PNJ’S MILESTONES 2015
DISTRIBUTION CHANNEL
6
8
11
13
Typical Figures of 2015
Outstanding Events
Vision – Mission – Core Values
The Chairwoman’s message
16 Milestones of Establishment & Development
22 PNJ GOLD
23 PNJ SILVER
24 CAO FINE
25JEMMA
26 Corporate Gifts
27 Diamond, Gemstones, Precious Metals Testing Service
30
32
34
35
TRUE GOLD
FEARS NO FIRE
Board of Directors
Board of Management
Supervisory Committee
Situation of Corporate Governance
42 Report of the Board of Directors
46 Report of the Supervisory Committee
50 Report of the Board of Management
65 Independent Audit Report
66 Consolidated Balance Sheet
74 Description of Consolidated Financial Report
108 Significant Achievements
112 The journey of firm steps to conquer the top
116 The strength of sharing
120 PNJ jewelry Distribution Channel
ANNUAL REPORT 2015
TYPICAL FIGURES
OF 2015
newly
opened stores
Total revenue was
billion VND
194
10 years of establishment
of PNJ Charity Fund with
the total contributed
amount over
billion VND
Jewelry Shopping Centers in
45 provinces and Cities nationwide
1.138
Gross profit was
The trading of gold jewelry
accounted for
billion VND
of total revenue
6 Annual report PNJ - 2015
Typical numbers 7
OUTSTANDING
EVENTS
Top
Received the award “Employer of
the Year” - JNA Awards 2015 offered
by Jewellery News Asia magazine.
Phoenix Ao Dai made of gold by PNJ was recorded
by Vietnam Record Center as “Ao Dai with biggest
golden Phoenix icon” and was named to the World
Unique Collection recognized by the World Unique
Creativity Academy
100
Vietnam best workplaces
consecutive years receiving
the title of High Quality
Vietnamese Goods
The Jewelry collection “Spring of Peace” won at the
regional selection round of Creative Asean Design
Competition 2015.
PNJ houses were built by PNJ
Charity Fund for the poor
nationwide.
Vietnam best listed companies in 2015
Vietnam most valuable brands,
PNJ was the only jewelry
company in this List
Outstanding events 9
VISION
BECOMING THE LEADING JEWELRY PROCESSOR
AND RETAILER IN ASIA MARKET AND SECURING
THE NUMBER ONE POSITION IN THE SEGMENT OF
MEDIUM AND HIGH CLASS JEWELRY IN VIETNAM.
MISSION
PNJ BRINGS CUSTOMERS THE PRIDE WITH
SOPHISTICATED,
OUTSTANDING,
QUALITY
JEWELRY PRODUCTS.
CORE VALUES
HONESTY
QUALITY
RESPONSIBILITY
INNOVATION
CREATIVITY
Vision, Mission, Core Values 11
THE CHAIRWOMAN’S
MESSAGE
vision
Affirming the
“Becoming the leading jewelry manufacturer and
retailer in Asia market”
Dear Valued Shareholders and Partners,
I
n 2015, we continued to witness the world economy’s
picture that has not really been prosperous as expected.
The growth rate was only 2.4% according to the World
Bank’s data. The economic growth in many countries of
regions remained unequal, unstable and unsustainable.
However, according to the evaluation of Bloomberg that the
emerging markets in Asia such as Vietnam made a surprise
positively. Based on the results of the General Statistics Office
of Vietnam announced in late 2015, we can see that the gross
domestic product (GDP) in 2015 increased 6.68% compared
to that of 2014, the highest increase during the last 5 years.
According to the State Bank of Vietnam, the domestic gold
market in 2015 was stable, there was balance between the
supply and demand, the domestic gold price was not much
affected by the factors such as the fluctuation in the world’s
gold price and the fluctuation of the exchange rate between
USD and VND.
However, the growth figure of Vietnam economy in 2015 did
not fully reflect the difficulties faced by domestic companies
due to the changes in finance, market; the business activities of
the economic sectors were sometimes exposed to the unstable
hazards. In the gold jewelry business, the quality management
and the equity in trading are always concerned. Until now
there is not any organization or mechanism that can manage
the transparency of products’ quality as well as the financial
obligations of the free gold jewelry market.
Despite of many difficulties, thanks to the internal power
and the agility to seize opportunities, PNJ ship was stable
overcoming every challenge in such a powerful and confident
way, making ‘a year marking PNJ characteristics’ on the way of
27 years of development. We conquered the new milestones
and pinnacles, quickly developed the distribution system
of products and services nationwide, the reputation of PNJ
brand reached the world’s market. All was proved by the results
and achievements that PNJ gained in various fields. PNJ
excellently achieved and exceeded the targets as compared to
the plan: the total revenue was 7,697 billion VND, an increase
of 7% compared to that of 2014; the gross profit was 1,138
billion VND, an increase of 44% compared to that of 2014.
The milestone of PNJ in 2015 was the story about the
journey of overcoming the challenge, touching the success,
consolidating the leading position of PNJ in the market.
With 194 Jewelry Shopping Centers in 45 provinces and
Cities nationwide by the end of 2015, PNJ currently owns
the largest jewelry distribution system in Vietnam. Also in
the past year, PNJ was named in the roll of honor of national
and international prestigious awards. It was voted as “Top
100 Vietnam best workplaces”; excellently received the award
“Employer of the Year” offered by JNA Awards 2015; ranked
in the “Top 50 Vietnam most valuable brands”. The Southeast
Asia jewelry design award and the jewelry masterpieces of
PNJ created strong mark in the market, especially creating the
Message from the Chairwoman 13
reputation in Vietnam International Fashion Week 2015. The
milestones that PNJ achieved in 2015 continues to strengthen
PNJ brand name, affirm the vision “Becoming the leading
jewelry manufacturer and retailer in Asia market”.
Especially, the 2015 milestone of PNJ also shown in the
promotion of cultural identity “common house”, flexibly
applied the 5 core values “Responsibility, Honesty, Quality,
Innovation, Creativity” on the business activities as well as the
efforts to show the social responsibility. The PNJ humanistic
values constantly spread through the community activities
with great significance about people’s welfare. Typically, the
program of building PNJ houses for the poor nationwide and
the achievements of 10 years of PNJ Charity Fund in many
practical programs for the community.
To the year 2016, PNJ shall continue with the positive growth
and impressive position of 2015, continue to have a positive
year ahead. The key measures like investment, selective
expansion of retail system throughout the country, market
development, improvement of customer service quality,
investment in hi-tech jewelry machines and production lines...
are the commitments showing the strong ambition for PNJ to
implement the orientations and objectives of 2016.
According to experts’ forecasts, in 2016, thanks to the steady
growth of the economy of Asia - Pacific and the continuous
dominance compared to other regions in the world, the
investment activities in the region are very promising. In
Vietnam market, the 2016 macroeconomic situation is
expected to continue to improve, the total domestic demand
gradually increases thanks to the increase in investment and
personal consumption. The domestic gold jewelry trading
prospect shall grow fast. Especially, thanks to the positive basic
factors, the recently signed trade agreements like Trans-Pacific
Partnership (TPP), the establishment of ASEAN Economic
Community (AEC) – the worlds’ 7th largest market – since
the end of 2015, the domestic potential companies shall take
the large opportunity to reach out to the region and the world.
These events shall certainly have a significant impact to the
market as well as set new challenges for the adaptability of
dynamic companies, including PNJ at a large playground full
of fierce competition.
2016 is an important year, marking a 28-year milestone of
sustainable development of PNJ, and it is the fourth year
with vigorous change from the comprehensive restructuring
of the Company in the 10-year development strategy (from
2012 to 2022) of PNJ. We all believe that, with the strategy
focusing on the core production and trading activities; flexibly
deploying the methodical and steady business development
solutions; effective finance and risk management together
with the professional team full of desire to contribute, PNJ
shall continue to speed up for more development. From such
prospect, we commit to try to successfully implement the key
objectives of 2016 set at the General Meeting of Shareholders
to meet the expectations and beliefs from our valued
Shareholders, Partners, and Customers.
On behalf of PNJ’s Board of Directors, I would like to thank all
valued Shareholders, Partners, Customers and all Employees
of PNJ for supporting and companying, joining hand to create
success for PNJ in 2015. Let’s hope that PNJ shall promote
premises from the success of 2015 to continue to strongly
grow, conquer new pinnacles, and continue to shine in 2016
and the following years.
We wish our valued Shareholders, Partners, and Customers
health and success!
Chairwoman
Ms. CAO THI NGOC DUNG
The Jewelry collection “Spring of Peace” won at the regional selection round
of Creative Asean Design Competition 2015.
Message from the Chairwoman 15
MILESTONES OF
ESTABLISHMENT &
DEVELOPMENT
PNJ has a strong development and achieves positive results,
promising many surprising
feats in 2016.
______________________________________
1988-1992
______________________________________
2001 - 2004
2009- 2013
ESTABLISHMENT AND IDENTIFICATION OF
DEVELOPMENT STRATEGY
SPEEDED UP BRAND BUILDING AND
IMPLEMENTED EQUITIZATION
PNJ’S LISTING MADE PNJ BECOME A
PUBLIC COMPANY
On 28 April 1988, Phu Nhuan Jewelry Trading Store was
founded, under the People’s Committee of Phu Nhuan District
when the Vietnam Jewelry industry was still young, the market
still had many limits… Those were challenges that the 20 first
founders must overcome.
In 2001, PNJSilver was officially launched in order to meet the
demand of the young consumers who loved silver jewelries,
along with the continuous development PNJ Gold, through
big marketing campaigns which was under the the sponsor of
the World Gold Council.
In March 2009, PNJ’s shares were officially listed on HOSE,
the charter capital was increased to 400 billion VND. In August
2009 CAO Fashion Co., Ltd. was established. PNJ became
the jewelry sponsor for the Miss Earth 2010 held in Vietnam.
Determining the necessity for restructuring the strategy
and the operation mechanism for long lasting development,
in 2012, PNJ hired foreign consultants to standardize the
management system according to the international standards.
In 1992, PNJ was officially named Phu Nhuan Jewelry
Company after two times of changing name from Phu Nhuan
Jewelry Trading Store and Phu Nhuan Art Jewelry and Foreign
Exchange Company, as well as identified the development
strategy as a professional jewelry manufacturer and trader.
At this period of time, PNJ also expanded its operations by
establishing Dong A Bank with the contribution rate of 40%.
______________________________________
On 02 January 2004: PNJ officially implemented equalization,
transformed from state-run enterprise into Phu Nhuan Jewelry
Joint Stock Company. Also at this period, PNJ was awarded
Top 500 Leading Retailers in Asia Pacific and The First Class
Labor Medal.
On 18 October 2012, PNJ Jewelry Enterprise was opened
after 18 months of construction. With the total investment of
120 billion VND, the production capacity was over 4 million
products / year, PNJ Jewelry Enterprise was evaluated as one
of the biggest jewelry processing enterprises in Asia.
In 2015, PNJ opened lots of jewelry centers in the provinces
and Cities of Vietnam increasing the total number of jewelry
retail stores to 194 nationwide. PNJ position was raised with
domestic and foreign prestigious prizes such as Top 50 Vietnam
best listed companies in 2015 announced by Forbes magazine;
the Jewelry collection “Spring of Peace” won at the regional
selection round of Creative Asean Design Competition 2015;
the award “Employer of the Year” - JNA Awards 2015 offered
by Jewellery News Asia magazine. With steady steps along with
achievements, PNJ is gradually realizing the vision: Becoming
the leading jewelry processor and retailer in Asia market and
securing the number one position in the segment of medium
and high class jewelry in Vietnam.
1993 - 2000
QUICK EXPANSION OF THE DISTRIBUTION
NETWORK AND BUSINESS LINES
In 1994, PNJ Hanoi branch was established, starting the
expansion strategy of distribution network at big cities, such
as Danang in 1998, Can Tho in 1999, the PNJ distribution
network was constantly expanded.
This period was also the stamp of building PNJ as a proffesional
brand, PNJ jewelries started to be exported. Only after few
years of establishment, PNJ jewelry quickly dominated the
market, loved by consumers and initially achieved the typical
awards such as the“High Quality Vietnamese Goods”, the
Third Class Labor Medal, the Second Class Labor Medal,
PNJ was also awarded the Certificate of Quality Management
System by DNV organization according to ISO standard.
______________________________________
______________________________________
2005 - 2008
RE-LAUNCHED AND
DEVELOPED LUXURY BRAND
This was a strong development stage in all aspects of PNJ,
especially the development of new brands and products:
CAO Fine Jewellery – a luxury jewelry brand was officially
launched; PNJSilver re-launched with new images; PNJ was
the crown and jewelry sponsor for the Miss Universe 2008 held
in Vietnam. On 03 April 2008, in order to celebrate 20 years of
establishment and development, PNJ officially announced the
new logo which was more professional, modern and worthy
images for the new journey.PNJ became one of the 200 largest
companies in Vietnam as announced by UNDP and was
honored to receive the noble awarded by the President: the
Third Class Independence Medal.
______________________________________
Besides, PNJ continued to invest and upgrade the distribution
system scale, opened the offices and jewelry centers in Kien
Giang, Binh Duong, Bien Hoa, Hanoi, and Da Nang as the
largest jewelry stores in these areas. Especially, PNJ officially
launched the largest jewelry, diamond and watch center at
52A-52B Nguyen Van Troi street, Phu Nhuan district, Ho Chi
Minh City – this was also the head office and the first gold and
silver store of PNJ and it was one of the largest jewelry and
diamond centers in Vietnam market.
______________________________________
______________________________________
2013- 2015
RESTRUCTURING, SUSTAINABLE DEVELOPMENT
2013 was the year marking the significant events in the
brand development strategy of PNJ. On 10 September 2013,
PNJSilver officially repositioned the brand, launched the
new brand identify “Her world is shining” with fashionable
purple color and the breakthroughs in product and brand
development strategy. At the same time, PNJ gold jewelry
brand announced new message “Seeing the Quality in You” to
honor the values of “gold”, the noble qualities of women in the
modern society on the basis of inheriting harmoniously with
the traditional values of Vietnamese women.
Milestones of establishment & development 19
PRODUCTS AND SERVICES
THE MASTERPIECES HAVE
BROUGHT A NEW VALUE
TO GOLD TO HONOR
THE HUMAN BEAUTY.
Brand
Brand
PNJ GOLD JEWELRY BRAND
PNJ SILVER BRAND
Since its launch in 1988 until now, PNJ Gold Jewelry brand
always keeps innovating to continuously launch hundreds of
collections with diversified gold materials and abundant
gemstones with pioneering breakthrough designs,
contributing to honor the beauty, the elegance and rank of
Vietnamese consumers. The PNJ gold jewelry products
always have a harmonious combination between the elegance
and unique, fashion and modern, every detail is designed lively
by talented designers and skillful hands of skilled jewelers, to
ensure the high sophistication and high aesthetics to the
products, meeting the tastes of every customer.
Appearing in Vietnam jewelry market in 2001, until now
PNJSilver is like a modern young girl always leading the trend
with diversified and novel silver jewelry and accessories. With
fashionable and dynamic violet pink color, PNJSilver is proud
to be an easily identified jewelry brand at many shopping
centers in Vietnam, meeting the fashionable jewelry thirst
of the youth, the main group of customers that PNJSilver is
aiming at.
Especially, with the message of “Seeing the Quality in
You”, PNJ raises the value in each jewelry product, to not
only adorn the external beauty but also to honor the true
values, noble qualities of the owners. The wedding jewelry
collections like Hanh Phuc Vang, Hoang Gia, Phuong
Hoang, Mystery, Ngoc Bien, Ngu Hanh … takes turn to
be launched not only satisfies the beauty but also proves
the peak processing ability and affirms the mission of PNJ
gold jewelry brand when bringing the proud to customers
by fine jewelry with outstanding quality.
Each year, PNJSilver always knows how to refresh itself with
many lively and interesting aspects. PNJSilver constantly
updates the international fashion trends to design new
collections, suitable to the modern lifestyles such as “Ngau
hung kham pha”, “Ngau hung SHE” or “Destiny” along with
the media stories about the young way of life, premature
thinking of modern young girls. In addition to the continuous
development of fine products like Charm, Elegance, Baby
distributed by the system at 100 retail stores nationwide,
PNJSilver have been trying and constantly creating to aim at
becoming the leading silver jewelry and accessories brand for
the young people.
Products and services 23
Brand
Brand
CAO FINE JEWELLERY BRAND
JEMMA BRAND
Being launched in 2005, CAO Fine Jewellery gradually conquers
the high-end consumers by its uniques and differences.
Being inspired by the fashion accessories trend that is
animatedly in the world, Jemma is a high class jewelry
and accessories brand launched at the end of 2009. With
the development orientation of a high class and modern
jewelry, accessories brand, Jemma is a new option bringing
the elegance and nobleness to women. All Jemma products
are designed in a modern style, updating the latest fashion
trends with diversified materials from silver, high class alloy
and colorful semi-precious stones to create unique fashion
jewelry products, not only showing the class, fine taste but also
bringing the pride to the owners.
Each creations is crystalized from quintessences of our
best designers and craftsmens, both capturing the spirit
of mordern times, reinventing the sence of classic with
remarkable creations for timeless and effortless beauty.
Cao Fine Jewellery aims to choose the extraordinary stones
for its creations. We give our clients the most beautiful and
precious stones with special shapes and tones, of the best
quality, cut and origin. Each creations are unique about
design and quality
The launch of Thu Khoa Huan flagship at the most luxurious
shopping area of Saigon in 2013 shows a correct vision and
strategy of CAO Fine Jewellery onthe way to conquer the
high class customers as well as the direct competition with
the currently international jewelry brands in Vietnam.
Diamond, Gemstones,
Precious Metals Testing Service
Corporate
Gifts
With the strength of the design ability, processing technology and a team of skillful
craftsmen and jewelers, PNJ not only has the jewelry masterpieces honoring the
beauty, the pride of women, but also is one of the first brands developing the product
line of Gifts for Company.
The Gifts for Company field has 5 major product lines to help the companies have
more options to express the appreciation, gratitude or mark a development stage in
the history of the brand.
1. Honor Gifts
The messages and logos create the mark for each company
transmitted by PNJ jewelers in such a perfect way helping to
keep the long-lasting brand value.
2. Gift Cards
Gift cards have many kinds of face value, convenient for use,
helping the receivers have the opportunity to buy the jewelry
products that they like.
3. Jewelry Gifts
The diversity and sophistication in each PNJ jewelry product
shall make every one want to own it.
4. Fashion Gifts
The fashion accessories such as belt, brooches, and hairpin ...
create the luxury to the owners.
Through 20 years of operation in the field of testing service
with a team of experienced testing experts who regularly
update their knowledge, together with modern equipment and
technology, PNJ Lab established by PNJ has been confirming
its reputation to domestic and foreign customers. PNJ Lab is
one of the leading testing companies in Vietnam market.
The certificates of PNJ Lab are based on the strictest testing
standards of the world like the diamond testing based on the
standards of GIA – Gemological Institute of America.
and Technology) to identify the content of gold, gold jewelry,
and crafts ... of companies or individuals when there is any
dispute.
The existing services of PNJ Lab:
•
•
•
•
Testing, consulting on Diamond.
Testing, consulting on gemstones, semi-precious stones.
Testing, consulting on gold, silver, precious metals, colored metals.
Engraving letters on diamond as requested.
PNJ Lab is also one of the few companies licensed by
Directorate for Standards and Quality (Ministry of Science
5. Gift Masterpiece
The unique jewelry works like flowers, paintings, bandanna
... are considered as gift masterpieces created by PNJ jewelers
according to the request of customers.
6. Gold Bar and Ring
Made of 9999 gold, the products of PNJ Gold Bar and Ring
not only have material value but also have spirit significance
when letters or images can be designed on the products.
PERSONNEL ORGANIZATION &
CORPORATE GOVERNANCE
TIME MAY TRUE UP
LIFELESS STONE INTO
BRIGHT GEMSTONES
AND DEMONSTRATE THE
TRUE VALUES.
Mr. PHAN QUOC CONG
Member of BOD
BOARD OF
DIRECTORS
• Doctor of Business Administration (USA)
1995 - 1998: Sales Director, Electrolux
Vietnam Company
1998 - 2000: Director of consumer products
and non-prescription drug (Panadol), Smith
Kline Beecham Vietnam Company
2000 - 2004: Marketing Director of Nestle
Vietnam Company
2004 - December 2014: Co-founder of X-man
brand and General Director of International
Consumer Product Manufacturing Joint Stock
Company
From January 2004 to January 2015: Senior Vice
Chairman in Southeast Asia of Marico Group
From May 2015 until now: Chairman of
Saigon Food Joint Stock Company
Chairwoman
Mr. NGUYEN TUAN QUYNH
Member of BOD
• Bachelor of Economics and Commerce, Ho
Chi Minh City University of Economics
• Doctor of Business Administration,
Paramount University
1988 - 2003: Director of Phu Nhuan Jewelry
Company
1990: Director of Phu Gia Credit Center
1991 - 1992: Director of Phu Nhuan Trading
Company
1992 - 1997: Chairwoman of Dong A Bank
2003 - 2014: Chairwoman of Dong A Real
Estate Joint Stock Company
2005 - 2011: Chairwoman of Dai Viet Energy
Joint Stock Company
From 2004 until now: Chairwoman and
General Director of Phu Nhuan Jewelry Joint
Stock Company
2005 - 2007: Member of BOD – Vice General
Director of Saigon Gas
2007 - 2011: Vice Chairman of Dai Viet
Energy Joint Stock Company
2007 - 2010: Chairman of Hong Vina Gas
Cylinders Co., Ltd.
2007 - 2012: Vice General Director of Phu
Nhuan Jewelry Joint Stock Company
2008 - 18 April 2015: Chairman of Saigon
Fuel Joint Stock Company
2013 - 01 July 2015: Chairman and General
Director of Saigon Fuel Joint Stock Company
From 2012 until now: Vice Chairman of
Phuong Nam Culture Joint Stock Company
From 01 July 2015 until now: Vice Chairman
and General Director of Alpha Books
Ms. NGUYEN THI CUC
Member of BOD
Mr. NGUYEN VU PHAN
Vice Chairman
• Master of Business Administration, Ho Chi
Minh City University of Economics
• Master of Business Administration, Ho
Chi Minh City University of Technology
1988 - 1995: Chief Accountant of Phu
Nhuan Jewelry Company
1996 - 2003: Vice Director of Phu Nhuan
Jewelry Company
2007 - 2014: Head of
Supervisory
Committee, Dong A Bank
From 2004 until now: Member of BOD and
standing Vice General Director of Phu Nhuan
Jewelry Joint Stock Company
1996 - 1999: Vice Director of Garment
Enterprise of Binh Duong Production and
Import & Export Company
Jewelry Company
From 2004 until now: Vice Chairman and
Vice General Director of Phu Nhuan Jewelry
Joint Stock Company
Ms. PHAM VU THANH GIANG
Member of BOD
Ms. NGUYEN THI BICH HA
Member of BOD
• Doctor of Finance & Banking, University
of Applied Sciences Northwestern
Switzerland
• Master of Business Administration,
Vanderbilt University USA
2005 - 2006: Staff of Aon Vietnam
From 2007 until now: Investment Director of
Mekong Capital
1994 - 1999: Head of Sales Department of
Branch of Phu Yen Import Export Company
in Ho Chi Minh City
2000 - 2001: Vice Director of Saigon No. 1
Joint Stock Company
2001 - 2005: Research and Development
Director of Dong A Bank
2006 - 2008: Vice General Director of Dong
A Bank
2006 - 2009: Consultant, Member of BOD
of Binh Minh Community Development
Enterprise
2010 - 2012: Senior Consultant of CBAM
Business Training and Management School
From 2013 until now: Vice Director of Center
for Research and Consulting on Living Value
Board of Directors 31
BOARD OF
MANAGEMENT
General Director
Mr. LE HUU HANH
Vice General Director
Ms. PHAM THI MY HANH
• Bachelor of Economics and Commerce,
Ho Chi Minh City University of Economics
• Bachelor of Chemistry, Ho Chi Minh City
University of Technology; Diamond and
Gemstone Testing Expert
• Master of Business Administration,
National
Economics
University,
Washington State University
1992 - 2003:
- Director of PNJ Hanoi branch
- Vice Head of Sales Department; Head of
Sales Department of Phu Nhuan Jewelry
Joint Stock Company
From 2004 until now: Vice General Director
of Phu Nhuan Jewelry Joint Stock Company
1995 - 2003: Vice Head of Research and
Marketing Department, Head of Research
and Marketing Department of PNJ
- Director of Research and Marketing
Department
- Director of Cao System Management
Department
2009 - 2011: Director of CAO Fashion Co., Ltd.
From 2012 until now: Vice General Director
1988 - 2003: Director of Phu Nhuan Jewelry
Company
1990: Director of Phu Gia Credit Center
1991 - 1992: Director of Phu Nhuan Trading
Company
1992 - 1997: Chairwoman of Dong A Bank
2003 - 2014: Chairwoman of Dong A Real
Estate Joint Stock Company
2005 - 2011: Chairwoman of Dai Viet Energy
Joint Stock Company
From 2004 until now: Chairwoman and
General Director of Phu Nhuan Jewelry Joint
Stock Company
Ms. NGUYEN THI CUC
Mr. NGUYEN VU PHAN
• Master of Business Administration, Ho Chi
Minh City University of Economics
• Master of Business Administration, Ho
1988 - 1995: Chief Accountant of Phu
Nhuan Jewelry Company
Jewelry Company
2007 - 2014: Head of Supervisory
Committee, Dong A Bank
From 2004 until now: Member of BOD
and standing Vice General Director of Phu
Nhuan Jewelry Joint Stock Company
1996 - 1999: Vice Director of Garment
Enterprise of Binh Duong Production and
Import & Export Company
Jewelry Company
From 2004 until now: Vice Chairman
and Vice General Director of Phu Nhuan
Jewelry Joint Stock Company
Management Board 33
SUPERVISORY
COMMITTEE
THE CORPORATE
GOVERNANCE
- Listed company name:
-Head Office address: Tel: Fax:
Authorized capital: Securities code: Mr. TRAN VAN DAN
Ms. NGUYEN NGOC HUE
• Bachelor of Accounting, University of
Commerce
• Bachelor of Business Administration, Ho
• Bachelor of Commerce and Finance, Ho
Chi Minh City Finance and Accounting
University
Head of the Supervisory Committee
The working history at PNJ
2012: Head of Production Management
Committee, ERP-Xman Project
2013: Head of Management Division
– Strategy Management Department
(Production and Office)
2014: Vice Director – Effective Management
Department
2015: Head of Department – Quality
Control Department
Member of the Supervisory Committee
1998 - 1999: Chief Accountant of Compunet
Company, Ho Chi Minh City
2000 - 2010: Head of Accounting and
Payment Department of PNJ Company
From 2011 until now: Chief Accountant of
PNJ Laboratory Co., Ltd.
PHU NHUAN JEWELRY JOINT STOCK COMPANY
170E Phan Dang Luu Street, Ward 3, Phu Nhuan District, Ho Chi Minh City
(08) 3995 1703
(08) 3995 1702
982,745,770,000 VND
PNJ
ACTIVITIES OF THE BOARD OF DIRECTORS
1. Meetings of the Board of Directors:
MEMBERS OF THE
No. BOARD OF DIRECTORS TITLE
NUMBER OF
MEETINGS
ATTENDED
RATIO
1.
Cao Thi Ngoc Dung
Chairman
36
100%
2.
Nguyen Vu Phan
Vice Chairman
36
100%
3.
Nguyen Thi Cuc
Member
36
100%
4.
Nguyen Thi Bich Ha
Member
34
94%
5.
Nguyen Tuan Quynh
Member
35
97%
6.
Andy Ho (Ho An T)
Member
36
100%
7.
Pham Vu Thanh Giang
Member
36
100%
8.
Phan Quoc Cong
Member
21
81%
REASON FOR
BEING ABSENT
Appointed as member
of the Board of Directors
on 15/04/2015
2. The supervision activity of the Board of Directors
(BOD) to the General Director
Some members of the BOD have attended the weekly,
monthly and quarterly briefing meetings. The supervision of
Board of Directors to the Management Board is implemented
via monthly, quarterly, yearly report on operations.
3. Activities of the subcommittees of the Board of
Directors
Any subcommittees have not been setup by the Board of
Directors yet.
The Corporate Governance 35
THE RESOLUTIONS OF THE BOARD OF DIRECTORS:
No.
NO. OF RESOLUTION/
DECISION
DATE
CONTENT
No.
NO. OF RESOLUTION/
DECISION
DATE
1.
14/2015/NQ-HĐQT-CTY
06/01/2015
Report on the production and business results of 2014; Report
on the implementation of Key Performance Indicators of 2014;
Approval of the operation plan of 2015, Balance scorecard of 2015
20.
25/06/2015
Agreement on the Report on the performance results to stock
issuance for 2014 dividend payment by stock and stock issuance
to increase capital stock from owner’s equity.
2.
12/02/2015
Approval of the organization of the Annual General Meeting of
Shareholders 2015 of Phu Nhuan Jewelry Joint Stock Company;
Signing of a commercial contract with the organization who is
relevant to the members of the Board of Directors
21.
833/2015/QĐ-HĐQT-CTY
25/06/2015
Decision of the Board of Directors on the increase of authorized
capital (form: stock issuance for 2014 dividend payment by stock
and stock issuance to increase capital stock from owner’s equity
with the quantity of: 22,677,542 ordinary shares)
3.
379/2015/BB-HĐQT-CTY
09/03/2015
Borrowing from Bank
22.
01/07/2015
Increase of working capital
4.
09/03/2015
23.
07/07/2015
5.
18/03/2015
Approval of documents submitted at the Annual General
Meeting of Shareholders 2015
24.
07/07/2015
Buy land in Vinh Long town, Vinh Long City, Vinh Long province for
building branch head office, trading place and other purposes of PNJ
6.
01/04/2015
25.
17/07/2015
7.
14/04/2015
8.
543/2015/BB-ĐHĐCĐ-CTY
15/04/2015
Minutes of the 19th Annual General Meeting of Shareholders
– year 2015
Amendment of the Charter of Phu Nhuan Jewelry Joint Stock
Company due to the update of the authorized capital after the
stock issuance under the resolution of the 19th Annual General
Meeting of Shareholders – year 2015
26.
05/08/2015
Increase of working capital for jewelry business
9.
544/2015/NQ-ĐHĐCĐ-CTY
15/04/2015
Resolution of the 19th Annual General Meeting of Shareholders
– year 2015
27.
06/08/2015
Borrowing from Bank
10.
545/2015/QĐ-ĐHĐCĐ-CTY
15/04/2015
Decision on amending and supplementing the Charter of
organization and operation of Phu Nhuan Jewelry Joint Stock
Company
28.
06/08/2015
Adjustment of mortgaged assets for working capital borrowing
document for jewelry business
29.
14/08/2015
Credit limit at bank
CONTENT
11.
04/05/2015
Establishment of PNJ branch in Dak Nong
30.
24/08/2015
Borrowing from Bank
12.
04/05/2015
Selection of the right time for 2014 cash dividend, Stock
dividend and bonus share due to the increase in charter capital
from owner’s equity
31.
25/08/2015
Report on the operation, production and trading results of July 2015
32.
21/09/2015
Change and appointment of chief accountant of CAO Fashion
Co., Ltd.
33.
01/10/2015
Approval of the Report on the operation situation of the first 9 months
of 2015; Approval of the Report on the working capital of PNJ
34.
16/10/2015
Approval of the Report on the operation, production and trading
situation of the first 9 months of 2015; Approval of the operation,
production and trading plan of 2016; Approval of the temporary
stop deploying stock issuance plan to existing shareholders
to increase the charter capital from 982,745,770,000 VND to
1,179,293,510,000 VND under the resolution of the Board of
Directors no. 1319/2015/NQ-HDQT-CTY dated 01/10/2015;
Approval of the bond issuance plan of 2015
35.
28/10/2015
Full transfer of all shares of PNJ in Saigon M&C Real Estate Joint
Stock Company
36.
16/11/2015
37.
25/11/2015
House lease in Thuan An Town, Binh Duong Province
13.
04/05/2015
Buy a house in Tam Ky City, Quang Nam province with the usage
of a branch head office, trading place and other purposes of PNJ
14.
22/05/2015
The final registration date for implementing the 2014 dividend
payment right in cash, dividend payment by stock and bonus
stock payment thanks to the increase in capital stock from
owner’s equity; Adjustment of the establishment of PNJ branch
in Dak Nong
15.
01/06/2015
16.
16/06/2015
Report on the operation, production and trading situation of
the first 6 months of 2015; Approval of the action plan of the
last 6 months of 2015
17.
16/06/2015
Selection of auditing company for 2015 fiscal year
18.
24/06/2015
Appropriation of profit after the fulfillment of tax obligation and
other financial obligations of subsidiaries
19.
24/06/2015
Decision of the Board of Directors on deduction of profit after
the fulfillment of tax obligation and other financial obligations
of subsidiaries
39.
40.
41.
15/12/2015
The 1st temporary payment of dividend in cash in 2015
18/12/2015
Suspension of the operation of PNJ branch in Vinh Phuc and
its subsidiary business locations
31/12/2015
Appropriation of profit, bonus and welfare fund of subsidiaries
31/12/2015
Decision of the Board of Directors on the appropriation of
profit, bonus and welfare fund of subsidiaries
CHANGE IN LIST OF RELEVANT PARTIES TO THE
PUBLIC COMPANY AS STIPULATED IN CLAUSE 34,
ARTICLE 6 OF THE LAW ON SECURITIES:
- On 28/09/2015, Head of Supervisory Committee, Mr.
Pham Van Tan resigned due to his personal reasons and the
Supervisory Committee nominated Mr. Tran Van Dan as Head
of Supervisory Committee until the next General Meeting of
Shareholders appoints member of the Supervisory Committee.
TRANSACTIONS OF INTERNAL SHAREHOLDERS
AND RELEVANT PARTIES:
1. Stock transaction:
NUMBER
OF OWNED
STOCKS AT THE
BEGINNING OF
PERIOD
RELATIONSHIP
WITH INTERNAL
SHAREHOLDER
/ MAJOR
SHAREHOLDER
- On 15/04/2015, at the Annual General Meeting of
Shareholders in 2015, it was agreed to increase the number
of members of the Board of Directors from 7 to 8 people and
Mr. Phan Quoc Cong was appointed as member of the Board
of Directors for term 3 (2012-2017). His term is the remaining
time of term 3.
No. IMPLEMENTED BY
CONTENT
REASON FOR
INCREASE,
DECREASE (BUY,
SELL, CHANGE,
BONUS)
38.
DATE
2. Other transactions : (transactions of internal
shareholders / major shareholders and relevant parties to
the company)
NUMBER OF
OWNED STOCKS
AT THE ENDING
OF PERIOD
No.
NO. OF RESOLUTION/
DECISION
Number of
stocks
Ratio
Number of
stocks
Ratio
3,812,194
5,04%
3,924,400
5,19%
1,
Dragon Capital
Investment Fund
Major shareholder
2,
Nguyen Thien Tam
Relevant party of
the member of
Board of Directors
7,200
0,01%
0
0%
Sell
3,
LGM Investments Ltd
Major shareholder
3,768,188
4,98%
3,928,188
5,19%
Buy
4,
Pham Ngoc Lan
Relevant Party
of Board of
Management
80,626
0,08%
72,964
0,07%
Sell
No. IMPLEMENTED BY
RELATIONSHIP
WITH THE
COMPANY
TRANSACTION CONTENT
1.
Dong A Real Estate Joint Stock
Company
Relevant party of the
member of Board of
Directors
Sign a contract to build, renovate, repair, and
decorate the interior of office, factory, warehouse,
trading system
2.
Golden Mark CPM JSC
member of Board of
Directors
Sign a consulting, management, and supervision
contract
3.
Golden Space Corp.
member of Board of
Directors
Sign a contract of interior decoration – furniture
supply (supply, installation, warranty, repair
counters and cabinets) for office, production and
trading system
OTHER CONSIDERATIONS:
- Phu Nhuan Jewelry Joint Stock Company changed its Business
Registration Certificate no. 0300521758 issued by Ho Chi
Minh City Department of Planning and Investment, the first
issuance was on 02/01/2004 and the 21st change was made on
10/03/2015; the 22nd change was made on 10/07/2015.
- On 15/07/2015, Phu Nhuan Jewelry Joint Stock Company
changed the number of voting right shares (The certificate
of securities registration was changed for the fifth time no.
120/2008/GCNCP-VSD-5 dated 13/07/2015 of Vietnam
Securities Depository).
- On 12/11/2015, the Company successfully issued
corporate bonds.
ON BEHALF OF BOARD OF DIRECTORS
CHAIRWOMAN
Buy and sell
CAO THI NGOC DUNG
REPORT OF THE BOARD OF DIRECTORS AND
MANAGEMENT BOARD
PURSUE “5 CORE VALUES”
IN EVERY ACTION TO
CONQUER THE “VISION”
OF BECOMING THE
LEADER.
REPORT OF THE BOARD
OF DIRECTORS
I. EVALUATION OF THE BOARD OF
DIRECTORS ON THE OPERATION OF
THE COMPANY IN 2015
According to the set strategy, 2015 was a started year of PNJ’s
acceleration stage in both scale and business performance,
creating the momentum for a stronger development stage.
Last year achievements were the pride and the tremendous
momentum for Board of Directors’s efforts in the past years.
Although there was unexpected impacts from the investment in
Dong A Bank, this event did not affect the core business of PNJ.
1. EVALUATION ON THE BUSINESS RESULTS
In 2015, PNJ was successful in promoting the medium and
high class product lines, which is the company’s advantage as
compared to its competitors. This product lines not only brings
higher profit but also raise the brand of PNJ in Vietnam and
International jewelry market. Besides, the Board of Directors
(BOD) had advocated to reduce the proportion of gold bar in
the revenue to highlight the role of the core business- jewelry.
That was also the reason for continuously improvement of gross
profit margin over years, as gold bar was the lowest gross profit
margin segment.
In 2015, revenue increased 7%, while gold bar reduced 23%,
gold jewelry increased 19%, and silver increased 4%. Gross profit
increased 44%, exceeding 17% as planned. All significant norms
related to core business operation exceeded the plan. Profit
before tax was 200 billion VND, if excluding financial income
and provision, net profit before tax reached 514 billion VND,
increased of 72% compared to the same period.
Not only reaching the profit target, the Company also
successfully completed network expansion target with 48
newly opened and upgraded stores. With the policy of fast
retail network expansion, earning market shares, new opened
stores mainly had large scale, with strong media investment to
quickly dominate the target market.
Comprehensive strategy, together with suitable organizational
structure, thorough research on network expansion, as well as the
sharp branding strategy, PNJ is firmly on the way to conquer its
vision of “Becoming the leading jewelry processor and retailer in
Asia and securing the number one position in medium and high
class jewelry segments in Vietnam”.
2. IMPLEMENTATION RESULTS OF THE SET
ORIENTATIONS AND STRATEGIES
a. Create a platform to achieve outstanding dominance
on Human resources and organization:
Human resources is identified as a key factor creating the
difference and decision on the success of an institution, the
Board of Directors established human resources management
and training system based on the “Fairness – Reasonableness
– Efficiency – Sustainability”.
The salary and bonus policy was based on the performance with
KPI for each individual to ensure the fairness to the employee.
The capacity evaluation programs were performed periodically
to have suitable assigns as well as aspiration for employees. At the
same time, to improve the working efficiency and creating the
best foundation for sustainable growth , periodical and intensive
training programs were also carried out in 2015.
With comprehensive human resources policy, PNJ was proud
to be ranked in Top 100 Vietnam best working environment
2015 – announced by Nielsen and Anphabe Vietnam.
b. Strong development of retail network and
improvement of customers’ satisfaction, continuously
affirming the leading position in the core business field:
Not only expanding the distribution network, the company
also focused on improving the quality of products and services
to improve the customers’ satisfaction.
The design of products was invested from materials to style
and it was more and more diversified. PNJ customers not
only trusted in the quality but also being proud of owning an
exquisite and unique jewelry product that is not inferior to any
famous brand in the world. Besides, the quality of services was
also improved, from the consulting to after sale service which
helped to enhance customers’ satisfaction.
c. Consolidation and increase of production capacity:
Last year, the company imported machines with new modern
production process to produce Italian technology product lines;
At the same time, the existed production process was continuously
reviewed to improve and shorten the processing time.
Combining the technology and training for workers’ skill
improvement, now PNJ Jewelry Factory has increased the
proportion of high-end products, especially doubled the
productivity in some product lines compared to the same period.
Not only increasing the productivity, the wasted cost ratio also
decreased significantly and controlled at low level. Currently,
the wasted ratio at PNJ Jewelry Factory is at the lowest level
compared to its peers in the world.
3. IMPLEMENTATION OF 2015 ANNUAL GENERAL
MEETING RESOLUTIONS
Board of Directors, 3 term (2012 – 2017) officially started
on 14 April 2012 according to the Resolution of the Annual
General Meeting of Shareholders in 2012.
• In 2015, the Board of Directors held 36 periodical meetings,
issued 41 minutes, resolutions, and decisions on implementing
the tasks according to the resolutions of the General Meeting
of Shareholders / Board of Directors in 2015 as follows:
• Carry out the dividend payment by cash in 2014 (3%),
dividend payment by shares (10%) and payment of bonus
shares from the increase in owner’s equity (20%).
• Increase the charter capital from 755,970,350,000 VND
to 982,745,770,000 VND due to the dividend payment
by shares (10%) and payment of bonus shares from the
increase in owner’s equity (20%).
• Advance of dividend by cash for the 1st time in 2015 (5%)
and extract funds according to Article 5 of the Resolution of
the General Meeting of Shareholders.
• Choose Deloitte Vietnam Co., Ltd. as an auditing company the
fiscal year of 2015.
• Amend the Charter of organization and operation of Phu Nhuan
Jewelry Joint Stock Company to be suitable to the Enterprise
Law 2015 and suitable to the operation of the Company.
• On 15 April 2015, the Annual General Meeting of
Shareholders 2015 approved to increase the number of
the Board of Directors’ members from 7 to 8 people and
additionally elected Mr. Phan Quoc Cong to be member of
rd
•
•
•
•
•
•
the Board of Directors, term 3 (2012 – 2017). The term of
Mr. Phan Quoc Cong is the remaining time of term 3.
Dismissal of title of member of the Board of Directors
according to personal aspiration of Mr. Andy Ho and Mr.
Phan Quoc Cong; at the same time appointed Mr. Le Huu
Hanh and Mr. Le Quang Phuc to be members of the Board
of Directors of Phu Nhuan Jewelry Joint Stock Company
with the term of 5 years and shall submit to the latest General
Meeting of Shareholders for approval.
On 28 September 2015, Head of the Supervisory Committee,
Mr. Pham Van Tan resigned because of his personal reasons
and the Supervisory Committee nominated Mr. Tran Van
Dan to be Head of the Supervisory Committee until a new
member of the Supervisory Committee is nominated at the
latest General Meeting of Shareholders.
Successfully issue non-convertible bonds with guaranteed assets.
Dan to be Head of the Supervisory Committee until a new
member of the Supervisory Committee is nominated at the
latest General Meeting of Shareholders.
Successfully issue non-convertible bonds with guaranteed assets.
Although the norms of revenue and business profit exceeded,
due to the extraction of provision for finance investment, PNJ
did not carry out the issuance of shares for key leaders and
excellent employees according to Article 9 of the Resolution
of the General Meeting of Shareholders.
4. ORGANIZATION OF THE BOARD OF DIRECTORS’
MEETINGS
• In 2015, the Board of Directors held 36 meetings; issued
41 minutes, resolutions, and decisions of the Board of
Directors of the Company. The meetings were held in
accordance with the orders and procedures as stipulated by
the Enterprise Law and Charter of the Company.
• The meetings’ minutes of the Board of Directors were fully
prepared with the signatures of the attending members
of the Board of Directors, ensuring the correct forms as
stipulated by law; documents were fully sent to the members
of the Board of Directors for reference, and consideration as
stipulated in the Charter.
5. THE SUPERVISION RESULTS TO THE CEO AND
OTHER MANAGERS
• In 2015, the Board of Directors well implemented the supervision
to the management work of the CEO and Managers. The
members of the Board of Directors concurrently holding the
executive titles in the Management Board took responsibility
for attending the periodical meetings of the Management Board.
Then, the Board of Directors always clearly knew about the
operation situation of the Company and had a good coordination
with the Management Board to make the right policy decisions,
solve the difficulties, and try to achieve the set plans.
Report of The Board of Directors 43
• In general, the supervision to the CEO and other managers
was regularly and closely maintained, ensuring the stable
and safe operation of the company in accordance with the
law, to achieve the plan set by the Board of Directors and
General Meeting of Shareholders.
II. OPERATION, REMUNERATION AND
OPERATION EXPENSES OF THE BOARD
OF DIRECTORS
1. HUMAN RESOURCES OF THE BOARD OF
DIRECTORS
-On 15 April 2015, the 19th Annual General Meeting of
Shareholders – year 2015 was held, the Board of Directors
of 3rd term (2012 - 2017) had eight members, in which Ms.
Cao Thi Ngoc Dung was Chairwoman and Mr. Nguyen Vu
Phan is Vice Chairman of the Board of Directors.
2. OPERATION OF THE BOARD OF DIRECTORS
-The members of BOD has the spirit of solidarity, showing
the spirit of high responsibility and well implements the
rights, obligations of the members of the BOD as stipulated
in the Charter.
-During the term, the BOD had well implemented the
Annual General Meeting of Shareholders resolutions, rightly
implemented the rights and obligations of the BOD as
stipulated in the Charter of the Company and Enterprise Law.
3. OPERATION EXPENSES OF THE BOARD OF
DIRECTORS
-Chairman of the Board of Directors is 26,600,000 VND / month
-Vice Chairman of the Board of Directors is 20,600,000
VND / month
-Member of the Board of Directors is 16,600,000 VND / month
4. SALARY, BONUS OF MEMBERS OF THE BOARD
OF DIRECTORS CONCURRENTLY HOLDING
THE EXECUTIVE TITLES OF THE COMPANY
Currently, PNJ has three members of the Board of Directors
concurrently holding the executive titles of the Company:
• Chairwoman and CEO was paid 130,000,000 VND /
month and paid the bonus with the amount of 2.5 times of
monthly salary.
• Vice Chairman and Vice General Director is paid 79,800,000
VND / month and paid the bonus with the amount of 2.5
times of monthly salary.
• Member of the BOD and Standing Vice General Director is
paid 92,500,000 VND / month and paid the bonus with the
amount of 2.5 times of monthly salary.
In addition, the PNJ has no member of the Board of Directors
concurrently holding the executive title of subsidiaries. The
remaining members of the Board of Directors do not manage
the Company and the subsidiaries.
III. PLAN AND ORIENTATION OF THE
BOARD OF DIRECTORS IN 2016
2016 shall be a year of effective development from the stores
and program launched in 2015. The main objectives set by the
Board of Directors to the Management Board are as follows:
1.
CREATING THE FOUNDATION FOR
SUSTAINABLE DEVELOPMENT
Focusing on three main fields:
a. Ensuring the quality of human resources:
-Establish and control the individual KPI system associated
with the company targets, ensuring the fair evaluation of
staff capacity, optimizing the existing human resources.
-Fully and timely supplementing people for retail systems.
Ensuring that the Human resources meet the expertise,
attitude and skills through the specialize training courses.
b. Evaluation, measurement and improvement of the
procedures:
-Enhance the effectiveness of the procedure measurement
and improvement, associate the measurement activities,
improvement with the operational control of each departments.
-Improve the control of compliance at the units, help the system
to have a stable operation and close control under 2 levels.
- Apply the information technology as a lever for the development
of operation work, management of the Company through the
schedule promotion of projects: Business Intelligence (BI),
Management the design – modeling process, tools...
c. Completion and effective operation of SB software:
It is a software about integrated report, which help the leaders
easily monitoring the changes of each targeted data group.
2. CREATIING OUTSTANDING ADVANTAGES OF
PRODUCTION:
Including
a. Improving the production capacity: Through the effective
control of the production procedure and improve the skills of
employees; promote the production of strategic product lines.
b. Optimizing new technologies and equipment which was
imported in 2015.
c. Investing and developing the R&D activities to new products
and technologies.
3. IMPROVEMENT OF CUSTOMERS’ SATISFACTION
a. Increase the coverage of retail stores:
In 2016, 25 new stores shall be opened, mainly stores selling both
gold and silver. With the rapid expansion of network, the company
can quickly dominate the market in almost all provinces and Cities
nationwide and increase the brand identity level.
b. Increase the customers’ satisfaction ratio:
The evaluation reports on the customers’ satisfaction level shall
be made to measure the customers’ satisfaction. Besides, many
norms about successful purchase rate, rate that customers
come back are included in the study plan to have an overview
of customers’ attitude to the brand.
4. INCREASE OF FINANCIAL EFFICIENCY
-This is considered as an important objective, quantifying
the general efforts relating to the organization structure and
development strategy.
- Revenue is expected to increase 15% compared to the same
period, in which it focuses on gold jewelry retail group, the
gross profit increases 14%.
- The operation expenses continue to increase corresponding
to the investment in network development as well as
communication promotion and brand advertisement.
-The control of debt norm on owner’s equity, control of the
number of inventoried days of goods according to KPI.
-For the financial investment activities, a provision of 115
billion VND shall be extracted to the two investments
that are Dong A Bank and DAL. Find opportunity for
withdrawal of the investment at Dong A Real Estate Joint
Stock Company.
Unit: million VND
PERFORMANCE
2015
PLAN 2016
7,697,947
8,781,963
114%
1,138,350
1,296,376
114%
25,203
12,000
48%
Expenses of finance activities
430,803
229,000
53%
In which: Interest expenses
81,049
114,000
141%
Selling expenses
414,552
490,724
118%
G&A expenses
115,421
128,697
111.5%
Net profit from the operating activities
202,776
459,955
227%
Net Profit before tax
200,173
459,955
230%
Net Profit after tax
159,619
361,405
226%
15%
15%
2%
4%
15%
18%
NORMS
Net revenue
Gross profit from goods sale and service
supply
Revenue of finance activities
Gross profit / Revenue
Net Profit after tax / Revenue
Dividend
IV. CONCLUSION
According to the development created in 2015, 2016 is expected to
be an dynamic year of PNJ, especially the gold jewelry retail activity.
The Board of Directors shall closely supervise to ensure that
GROWTH (%)
the strategic objectives are going to be implemented by the
Management Board as well as ensure the implementation
schedule of these objectives. The Board of Directors trusts
in the correctness and conformity of the long term strategy
which is not only proved in the last years but also continues to
effectively promote in the future.
Report of The Board of Directors 45
REPORT OF THE
SUPERVISORY COMMITTEE
I. ACTIVITIES OF THE SUPERVISORY
COMMITTEE IN 2015
1. Supervise and check the legality and rationality of
the activities in the implementation of the business and
production plans of 2015 of the Board of Directors and
Management Board of according to the 2015 General
Meeting of Shareholders resolutions.
2. Check the rationality, honesty and carefulness in the
organization of the accounting system. Review the financial
statements performed by Deloitte auditing company.
3. Control the safety and efficiency of the information and activities
of the system. When PNJ was affected by negative external impacts
arising from Dong A Bank, the Supervisory Committee closely
monitored the reality with the efforts of the Board of Directors
and Management Board in focusing on solving the difficulties,
maintaining the growth and prestige of PNJ.
In the year, the Supervisory Committee approved resignation
letter of Mr. Pham Van Tan, Head of the Supervisory
Committee due to his personal reasons then assigned Mr.
Tran Van Dan to be Head of the Committee until the
additional election at the next Annual General Meeting.
Despite of the personnel change, from time to time, each
member of the Supervisory Committee well promoted the
independent working capacity, closely coordinated in tasks,
fulfilled the tasks of 2015.
II. OPERATION RESULTS
1. SUPERVISION OF THE MANAGEMENT AND
OPERATION ACTIVITY OF THE BOARD OF
DIRECTORS AND MANAGEMENT BOARD
In 2015, Board of Directors and Management Board led
and helped PNJ strongly increase the core resources follow
the company’s strategy; being suitable to the potential and
challenges of the current market and in the coming years;
implemented the resolution of the 2015 AGM, and the
important objectives of the term. The Board of Directors and
Management Board mainly focused on:
-Research and synchronously deploy the objectives and
solutions stipulated in the resolution of the term. Fully deploy
the issues stipulated in the resolution of the General Meeting
of Shareholders in 2015 to the actual operation of PNJ.
-The strategic vision, mission, and core values were
concretized into objectives, targets (annual) of company
level, strategic business unit level and functional level strategy.
The objectives, targets of the levels have a synchronous
attachment, supplementing each other.
-Fully review 7 key factors of the jewelry industry, made
decisions, actions in accordance with the market situation,
promoted the efficiency of PNJ’s resources with highly
competitive ability, thereby; PNJ brand was more trusted
by customers and society, increase the resources and
competitive ability in the industry, brought the competitive
advantage of PNJ to a higher level in Vietnamese market.
The specialized factors about Technology, Production,
Marketing, Distribution system, labor skills & creativity,
capacity of the organization and other factors that brought
the success to PNJ now was synchronously connected and
created the new attraction to both in and out of PNJ.
-Closely control the new investments in the production
capacity and distribution channels, the investments in 2015
quickly contributed to create the business results in 2015.
-Review the financial structure: In the year, the company
made provision for the investment at Dong A Bank
regarding to the accounting standards and regulations and
at the same time divested at Saigon MC and successfully
issued 300 billion bonds tosupplement to working capital
for network expansion.
-Profit before tax of the holding company reached 200 billion
VND, excluding financial income and provision, the core business
profit reached 514 billion VND, increased 72% compared to the
same period and exceeding 35% compared to annual target.
-The Supervisory Committee did not realize any unusual
sign in the activities of the Board of Directors and the
Management Board. The activities of PNJ Company were
fully and honestly reflected in the documents of PNJ,
suitable to the capacity and charter, regulation, resolution
of the General Meeting of Shareholders and the law. The
company fully complied with the regulations of the current
law on announcing information in the stock market.
-With the performance results of the norms in the financial
statements of 2015, the Board of Directors did not have
sufficient basis for implementing Article 9 of the resolution
of the General Meeting of Shareholders about the issuance
of shares according to program selected for the Employees.
2. VERIFICATION OF THE PROFIT DISTRIBUTION
PLAN IN 2014
For the Statement on Profit Distribution of 2015 of the Board
of Directors expected to be submitted to the General Meeting
of Shareholders, the Supervisory Committee judged that the
distribution profit plan of 2015 ensured the compliance with
the law and the charter of PNJ, dividend payment plan of 15%
/ per face value did not reach 20% of 2015 plan approved by
the General Meeting of Shareholders 2015 (less than 5%),
the reason was that PNJ had a big provision, this provision
was necessary and could reduce in the future, the amount of
provision helped PNJ reduce the regular loans to meet the
development of the distribution channels and production.
Profit distribution: 170,676,962,249 VND
In which:
• Dividend payment: 15% / per face value:
147,410,802,000 VND.
• Extraction for funds: 19,730,000,000 VND.
• Retained earnings: 3,536,160,249 VND.
3. FINANCIAL CONTROL
-Since 01 January 2015, the Company has applied Circular no.
200/2014/TT–BTC issued by the Ministry of Finance on 22
December 2014 (“Circular 200”), instructing the accounting
system for the companies. Accordingly, some figures in 2014
balance sheet and cash flow statement were reclassified to be
suitable to the comparison with this year’s figures.
-The Supervisory Committee has considered the reality about
the preparation, collection, keeping documents related to the
accounting figures, the financial situation of the company. The
Supervisory Committee evaluated the financial statements
of 2015 of the Company, considered the auditors’ report of
Deloitte Vietnam Co., the Supervisory Committee agreed
with figures of the consolidated financial statements of PNJ
Group and the audited financial statements of PNJ in 2015.
-In our opinion, the financial situation of PNJ Group in
general and PNJ in particular gave a true and fair view on the
key aspects in the related documents, followed Vietnamese
Accounting Standards, Accounting Regime and the legal
regulations related to the preparation and presentation of
financial statements.
3.1 The figures on capital and assets as of 31 December
2015 and the business results of PNJ were as follows:
Unit: million VND
PNJ
NORMS
YEAR 2015
PNJ GROUP
YEAR 2014
CIRCULAR COMPARISON
15/14 (%)
200
YEAR 2015
YEAR 2014
CIRCULAR COMPARISON
15/14 (%)
200
Total assets
2,957,600
2,813,188
105%
2,975,289
2,828,672
105%
Total source of capital
2,957,600
2,813,188
105%
2,975,289
2,828,672
105%
Profit before tax
200,173
326,790
61%
197,323
335,034
59%
Profit after corporate income tax
159,619
256,701
62%
152,303
255,872
60%
-About total assets: 2,975 billion and 289 million VND,
increased 5% compared to the same period. Total
assets of PNJ was 2,957 billion and 600 million VND,
an increase of 5% compared to the same period, the
strong increase and decrease were mainly at groups:
Inventory increased 16.4%, fixed assets increased
1.2% and the long term financial investment strongly
decreased 13% (due to provision).
- Total liabilites: 2,975 billion and 289 million VND,
increased 5% compared to the same period. Total
source of capital of PNJ was 2,957 billion and 600
million VND, an increase of 5% compared to the same
period. The strong increase and decrease were mainly
at groups: current debt increased 6%, owner’s equity
increased 8.4% and long term debt reduced 59.7%
(Due to the loan structure change).
-Owner’s equity: The owner’s equity of PNJ accounted
for 98.5% of total owner’s equity of the Group. In 2015,
the charter capital of PNJ increased from 755,970,350,000
VND to 982,745,770,000 VND, an increase of 30%
compared to the end of 2014 (implementing Article 8 of
the Resolution of the General Meeting of Shareholders).
Report of the Supervisory committee 47
Unit: million VND
PNJ GROUP
NO. NORMS
1
2
3
4
5
6
7
8
Net Profit After Tax/
Equity (ROE)
Net Profit After Tax
/ Charter Capital (1)
Net Profit After Tax /
Assets (ROA)
Net Profit After Tax /
Net Revenue
Gross Profit / Net
Revenue (2)
Total Assets Turnover
(3)
Inventory Turnover
(4)
Fixed Assets Turnover
(5)
PNJ
2014
2015
2015-2014
2014
2015
2015-2014
19.74%
10.92%
-8.82%
20.27%
11.63%
-8.64%
33.85%
15.50%
-18.35%
33.96%
16.24%
-17.71%
8.85%
5.12%
-3.93%
9.55%
5.53%
-4.02%
2.78%
1.98%
-0.80%
3.57%
2.08%
-1.48%
9.67%
15.18%
5.51%
10.98%
14.85%
3.87%
3.18
2.66
-0.52
2.68
2.66
-0.02
6.58
3.43
-2.59
4.86
3.46
-1.87
19.85
16.44
-3.43
16.22
16.37
0.16
54.16%
53.14%
-1.02%
54.97%
53.58%
-1.39%
9
Debts / Total Assets
10
Current ratio
1.30
1.51
0.21
1.28
1.50
0.22
11
Quick ratio (6)
0.10
0.09
-0.01
0.10
0.09
-0.19
Note:
(1) The charter capital is calculated on a weighted average.
(2) It is calculated separately for activities of goods sale and service supply.
(3) (Net revenue from goods sale and service supply) / (Total assets on average).
(4) Average inventory
(5) Average fixed asset
(6) If it is considered the characteristics of the inventory, the quick ratio may consists of the majority of the inventoried
gold, so in reality this ratio might be higher than the reported one.
Excluding the provision for devaluation of financial
investment, in our opinion, the evaluation norms of the core
business activity effectiveness of PNJ and PNJ Group in 2015
were safe and tended to be better, this was the achievement of
the strategic restructure process of the term resolved by the
General Meeting of Shareholders.
4. EVALUATION OF THE COORDINATION
BETWEEN THE SUPERVISORY COMMITTEE AND
BOARD OF DIRECTORS, GENERAL DIRECTOR
AND SHAREHOLDERS
-On the principle of full compliance with the stipulations
of the internal Regulation, the Company’s Charter and
the regulations of law, for the benefits of the Company, of
the shareholders and related parties. In 2015, there was a
close coordination between Supervisory Committee and
Board of Directors as well as CEO and other Managers,; the
Supervisory Committee received the favorable condition in
every activity.
-The Supervisory Committee regularly supervised and
checked the Company’s information disclosure to ensure
that information to shareholders and related parties are
complete, accurate, and timely as stipulated by law and
meeting the demand on information of the parties. The
Supervisory Committee received no requests or claims
from shareholders in 2015.
-The Supervisory Committee regularly supervised and
checked the Company’s information disclosure to ensure
that information to shareholders and related parties are
complete, accurate, and timely as stipulated by law and
meeting the demand on information of the parties. The
Supervisory Committee received no requests or claims
from shareholders in 2015.
III. CONCLUSION – SUGGESTION
The strategy for the whole term of the Board of Directors is well
executing by BOM and Managers , the organization of activities
of the Efficiency Management Department has helped the
BOD to closely monitoring strategy implementation.
The impact of the restructuring strategies for term 2012 –
2017 has decided on the development of PNJ in the next
coming years. Some strategies with norms exceeding the
expectation but there is still a long distance to reach PNJ’s
expectation. In the context of PNJ and the general situation
of the industry as well as the macroeconomic factors, the
Supervisory Committee suggests to the BOD and BOM with
following contents:
1. Suggestion to the Board of Directors
The Board of Directors should maintain the focus on
leadership and provide resources for PNJ to achieve the
strategic objectives about establishing the foundation and
backbone for the company operation; including:
- Complete the organization structure and human resources;
Take the priority for training employees of sales, marketing
and design departments.
--Invest, connect, integrate the intelligent management
information system (SB); ensure the safety to the information
system (including copyright), review the plan to respond to
potential major incidents.
- Select and develop the retail network; increase the number
of new stores at potential markets, adjust the business
scale of the existing stores according to market signals and
demand. Strongly invest in developing other sales channels.
Evaluate the market entry opportunities in TPP, control
the market development strategy about the demand and
financial results.
-Develop the production and supply capacity: continue
investing in the research and development resources of
new products – new technology, review the backward
integration strategy to put the input supply source regularly
to become the new advantage to the company (high value:
stones, secondary materials ...).
-Continue to lead and enrich the cultural characteristics of
PNJ as a responsible and creative company for humans and
better living environment.
2. Suggestion to the Board of Management:
-Systematize the risk management policies, review the risk
response plans.
-Improve the management efficiency of the supply chain
about: sales forecasts, ordering, improvement of the system
connection of production warehouse – supply – stores,
reduce over a half of the intermediary inventory costs and at
the stores.
-Improve the cost estimates. Carry out the internal
audit according to majors or functional areas, starting
with the Information Technology field (slowly meet
the development demand of the company). Apply the
measurement techniques and improve the process
increasing the effectiveness of each major process of PNJ.
-Research to supplement new products / services to more
effectively develop the retail system.
-Research the separation strategy of independent accounting
companies and give the self-determination right to the
companies with independent accounting and give the selfdetermination right to the strategic companies.
Above is the supervisory report of PNJ in 2015 of the
Supervisory Committee, we would like to submit to the
Annual General Meeting of Shareholders.
The Supervisory Committee would like to express our
gratitude to the value Shareholders, Board of Directors,
Management Board, companies directly under PNJ for your
trust and cooperation. The Supervisory Committee hopes to
continue having close cooperation in the future.
Report of the Supervisory committee 49
77%
80%
54%
19.0
20.9
China
Hong Kong
10.2
India
6.7
Malaysia
6.2
GOLD JEWELRY
CONSUMPTION / PERSON IN
2015 (USD)
Gold consumption /
person (USD)
Gold jewelry consumption /
total gold consumption
85.7
14%
Thailand
5.7
Vietnam
25%
263.9
67%
Singapore
66%
Indonesia
REPORT OF THE BOARD
OF MANAGEMENT
97%
(Source: World Bank)
18.2%
GDP & CPI GROWTH OF
VIETNAM OF THE YEARS
10.0%
8.6%
6.5%
5.8%
4.7%
6.6%
6.7%
5.6%
5.4%
4.1%
0.6%
2010
2011
2012
2013
2014
GDP
CPI (**)
2015
56,285
11%
AVERAGE GDP PER CAPITA
9%
40,170
5%
In 2015, Vietnam was considered as a rare bright spot in
bleak general picture of emerging countries as maintaining
the stable growth, and controlling the inflation rate at
a low level. (According to “Vietnam 2015 Economic
Update Report”- ANZ).
The GDP of Vietnam to 2015 achieved 31 consecutive
years of growth, which was only lower than the record of
39 years of China (Source: World Bank).
Singapore
GDP per capita (USD) 2014
CAGR (2010-2014)
VIETNAM JEWELRY MARKET – BIG
OPPORTUNITY FOR LEADING BRANDS
4%
11,307
Hong Kong
7,590
Malaysia
Vietnam
3%
China
2,052
5,977
Thailand
1,582
India
3%
4%
Compared with other countries in Southeast Asia and
some countries with similar culture of gold consumption,
the average growth of GDP per capita of Vietnam always
belonged to the leading group, and it was forecasted to
continue to grow rapidly in the future.
Along with the general development of the economy,
demand for beauty and beyond this demand is to show
personal social status, are increasingly interested by
Vietnamese consumers. Therefore, Vietnam is now
considered to be an attractive market for the medium and
high class retail brands, in which the gold jewelry brands
cannot be excluded.
It is not only promoted by the macroeconomic growth,
the jewelry shopping demand is derived from the culture
of “Gold reserve” from this generation to the other, and
this is an important factor stimulating the sustainable
development of the Vietnamese jewelry industry. The
factors advantageous for the growth potential of the
jewelry industry in general and PNJ in particular are:
a. Abundant source of customers
Vietnam is a country with more than 90 million people,
with 70% of the population aged from 15 to 64, being in the
working and consuming age. In which 51% of the population
is female, creating an abundant force of jewelry shopping.
b. The gold jewelry consumption per capita is low
compared to that of other countries in the region
According to calculation from the figures of the World Gold
Council (WGC), the gold jewelry value per capita of Vietnam
Nam in 2015 was 6.2 USD, only equal to 60% of Malaysia
and 7% of Singapore. Besides, the consumption ratio of gold
jewelry of Vietnam compared to the total gold consumption
only accounted for 25%, while this rate in other countries in
the region was over 50% (except Thailand: 14%).
the Government is always concerned to create conditions
for jewelry companies to have a favorable trading
environment. One of the recent actions from the
Government was Circular no. 22/2013/TT–BKHCN
stipulating the quality of gold jewelry, which was valid
from 01 June 2014. That the Circular no. 22 was issued
contributes to increase the awareness of Vietnamese
consumers on the quality of gold jewelry products.
Besides, the production and circulation of gold jewelry
is strictly controlled, ensuring the quality of gold jewelry
products circulated in the market and creating the
advantages for big and reputable brands.
d. The current Vietnamese jewelry market
The current Vietnamese jewelry market is highly fragmented
with the majority of market share belonging to small
companies who invested limitedly in brand as well as long
term orientation. Meanwhile, customers are more and more
fastidious, so the demand on prestigious brand is considered
to be indispensable, especially when the Vietnam’s economy
is developing rapidly as present.
Although Vietnam is one of 15 countries with most gold
consumption in the world, the majority of people in Vietnam
still have the habit of buying gold bar for speculation rather
than for beauty. However, along with the stability of the
economy, the trend to change from buying gold bar to gold
jewelry is significantly occurring.
Therefore, PNJ emerges as a pioneer, creating a difference
in brand and quickly has a firm foothold in the market. With
the premise of brand prestige and large scale production,
PNJ succeeds in the development of extensive network
nationwide, then PNJ rapidly increases its market shares
for several years. PNJ has proven the correctness of its
long term vision by impressive growth figures and it is
willing for the acceleration stage in the future.
The amount of gold jewelry consumed in Vietnam continued
to increase during the last 3 years, whereas the amount of
gold bar strongly decreased respectively 33% and 15% in
2014 and 2015. This is the inevitable trend, suitable with the
general development process of the country and it is also the
forecasted potential of the domestic jewelry industry.
The PNJ’s retail market share is now estimated to be 25%,
increased 4% compared to the same period which left its
rivals far behind. Not only that, PNJ is also evaluated to
be not inferior to any company in the region from the
production scale, products’ quality to the design and
quality of service.
c. It is an industry that needs the Government’s concern
Understanding the enormous potential of the industry,
Operation Management business report 51
With the great potential from the market and the available
advantages, PNJ will certainly continue to strongly
develop. And the most important thing is that the
company has fully equipped from the strategic orientation
to the management system to be able to easily turn the
advantages from the market into the growth launching
platform at present and in the future.
Year 2015 has closed the first stage of 10-year development
strategy with special events and impressive achievements
in all aspects of PNJ. If 2013 – 2014 was the period of
building up and consolidating management system as well
as distribution network expansion, 2015 was the year to
promote the strength from this innovation.
17,355
TOTAL REVENUE
(BILLION VND)
BUSINESS RESULTS OF 2015 – PERFORMANCE VS PLAN
PLAN 2015
PERFORMANCE
2015
PERFORMANCE
2014
+/-%
Yoy
PERFORMANCE
/ PLAN (%)
8,227,568
7,697,947
7,213,329
7%
94%
976,516
1,138,350
790,172
44%
117%
12,000
25,203
48,071
-48%
210%
Financial activities expenses
112,000
430,803
95,054
353%
385%
Selling expenses
373,676
414,552
310,940
33%
111%
Corporate management expenses
122,714
115,421
105,944
9%
94%
Net profit from business activity
380,126
202,776
326,306
-38%
53%
Total profit before tax
380,126
200,173
326,791
-39%
53%
Profit after tax
300,000
159,619
256,571
-38%
53%
35
48
18
67%
137%
NORMS
7,604
6,428
3,805
3,711
2011
2012
7,698
7,213
4,297
2013
6,036
5,275
2014
2015
1,138
1,122
Total revenue
Revenue from Jewelry
• Revenue increase of 7%
• Jewelry revenue increase of 18%
GROSS PROFIT (BILLION VND)
790 760
638
507
550
2011
508
2012
2013
Total gross profit
Jewelry gross profit
2014
2015
190
165
145
132
Total revenue
Gross profit from goods sale and
service supply
Revenue for financial activities
Development of retail system
600 574
• Gross profit increase of 44%%
• Jewelry gross profit increase of 46%
• Jewelry profit accounting for 99% of
Total gross profit
Note: Among 48 new stores, there were 18 upgraded stores and 5 closed stores
PROFIT BEFORE TAX OF CORE BUSINESS OUT
OF TOTAL PROFIT BEFORE TAX STRUCTURE
50.6
108
40.8
40.8
NUMBER OF RETAIL STORES
148
2011
2012
2013
2014
2015
-313.8
Core business activities
Financial income
2011
2012
2013
2014
2015
The number of stores excluding CAO Stores
• The number of stores increases 16 %
compared to the same period
Not only exceeding the revenue and gross profit target, the
company also successfully completed the network expansion
plan with 37% excess to the annual target. In addition, PNJ was
honored to be the first and only Vietnamese Jewelry Company
walking abreast with famous companies in the Asia about the
size, reputation as well as important contributions to the jewelry
industry of Vietnam, it was honored by the JNA prestigious award.
Due to the influence from the provisions for financial
investment, the profit before tax of the whole year of the
Company recorded 200 billion VND, decreased 39%
compared to the same period and it only reached 54% of the
annual plan.
Excluding provision and income from received dividend, the
profit before tax of core business of 2015 reached 514 billion
VND, an increase of 72% compared to the same period. This
growth rate not only reflected the impressive results of core
business, but also showed the cost management effectiveness
when the total operation costs only accounted for 53% of gross
profit instead of 62% of the same period 2014. In which, the
selling expenses increased 33% compared to the same period,
aligned with network expansion speed and it was much lower
than the growth of gross profit.
The maintaining of the growth of NPBT of the core business
activities in 2014 and 2015 was 50% and 72%, the Board
of Directors and Management Board has affirmed the
correctness in the strategic orientation, and this was also the
big achievement of the restructure process, paving the way for
a stronger and more drastic new development stage.
THE STRUCTURE OF REVENUE AND
GROSS PROFIT REFLECTED THE
STRONG GROWTH OF CORE BUSINESS
Revenue in 2015 reached 7,698 billion VND, an increase of
7% compared to that of 2014. However, the jewelry group
brought 99% of gross profit of the company, an increase of
18%; the gross profit exceeded the norms of the year’s plan.
19.9%
In the period from 2011 to 2015, there was a clear change to
the revenue structure. The revenue proportion of gold jewelry
was 21% (2011) and it continuously increased, by the end of
2015, it accounted for 80% of the total revenue. This structure
change explained the unstable growth of the total revenue,
even it was lower than the previous years, but the gross profit
still strongly increased, specially in 2015 the growth rate
reached 43% compared to the same period.
0.4%
Others
Good bar
The gross profit of the jewelry business activities accounted for
99% of the total gross profit of 2015, increasing from 79% in
2011. It can be said that the current growth rate of gross profit
was also the growth rate of the core business activities – jewelry.
The business result of 2015 once again affirmed the strong
message committed by the Management Board in the
previous years: “PNJ shall focus on the strong development
of core business activities, maintain its role as a pioneer, the
leading jewelry brand in Vietnam”. With the consistency to
pursue the set objectives and strategies, the achievements in
2015, especially the retail segment was not only the pride but
also the motivation to the managers and employees of PNJ
contributing for stronger development stage.
1. GOLD JEWELRY (PNJ GOLD): increased 19% of
revenue and 43% of gross profit thanks to the focus on retail
segment, network expansion, investment and production of
high class product lines to replace the imported products.
2.1%
Silver jewelry
REVENUE ACCORDING
TO TYPE OF
PRODUCT 2015
77.7%
The development of 3 sales channels including retail,
wholesale and export brought many advantages to PNJ.
However, retail was always identified as the key business
activity, concentrating many resources and being the long
term development objective of the company. The proportion
of retail revenue accounted for 55% of the total revenue of
Gold Jewelry (the proportion in 2014 was 45%) and it was
expected to continue to increase in the future.
Gold jewelry
1.1 The retail of Gold Jewelry:
In 2015, the retail activity had a superior growth about revenue
and the success in the orientation change to the development
of medium and high class product lines.
10%
1% 1%
Good bar
The retail revenue of gold jewelry increased 45%, in which the
current stores increased 21% compared to the same period.
Others
Silver jewelry
Supported by the general recovery of Vietnam’s jewelry market,
but it was undeniable that PNJ Gold Jewelry gained impressive
result, much exceeding the average growth rate of the industry.
This was not only the result of a foundation firmly built and
strengthened for several years, but also the reflection of the
strategic changes in the development objective of the company.
Instead of focusing on all product segments, since 2014, PNJ
Gold has emphasized the development objective of “being the
leading medium and high class jewelry brand of Vietnam”. This
was one of the main reasons making the retail revenue increase
in such an impressive way in 2014 and 2015, especially same
store sales always maintained at over 20% growth rate.
The changes helped PNJ Gold maintain the great growth
rate and immediately accelerate when the market tended to
recover:
• Diversified marketing strategy aiming at modern
customers:
PNJ used to aimed at traditional customers with the identify
image full of Asian characteristics, now the messages and
images were used in such a diversified way and arranged
according to customer channels, taste... to optimize the
marketing campaigns effectiveness.
Images of PNJ’ s brand ambassadors were fitted to the
brand characteristics which was loved by customers (about
the brand as well as the brand’s representative). There was
not only changes in image, but also the careful selection of
communication channels has helped to earn the highest
effectiveness for each program. Besides traditional channels,
the online channels were invested and developed, at the same
time we cooperated with domestic and foreign prestige brands
to increase brand identity.
The PR – Marketing campaigns focused on medium and high
class product lines in accordance with the strategic objective
proposed by the Management Board.
3,240
RETAIL REVENUE
OF GOLD JEWELRY
39%
2,230
GROSS PROFIT OF TYPE
OF PRODUCT 2015
50,6
1,609
1,550
13%
88%
4%
Retail gold jewelry
(billion VND)
Growth
-2%
Gold jewelry
2011
45%
2012
2013
2014
2015
• Product quality and design were the top priority
PNJ always led the domestic fashion trend with unique
collections both in style and processing technology.
In 2015, many large collections were launched with hundreds
of designs and A Guinness record was established, confirming
the superior advantage of creative capacity, products’ quality as
well as processing techniques of PNJ.
Not only being outstanding in the domestic market, the
designs of PNJ were welcomed by international markets,
proven by the first prize of national design in the contest of
ASEAN jewelry design 2015.
Apart from the design, products’ quality was considered as the
prerequisite factor creating the difference and reputation of
PNJ brand compared to its competitors. The raw materials for
production was carefully selected from big partners, modern
technology, combined with a team of skilled craftsmen were
the factors making PNJ jewelry products trusted by customers
during the past years.
• Standardization of service quality – focus on people:
Besides the products’ quality, the company gradually
normalized service quality from consulting stage to after sale
service.
To meet the network expansion speed from 20 to 40 stores each
year, which required a huge the workforce supplement of 200
to 400 employees for the whole system. So the standardization
of the service quality at all stores and branches was a major
challenge for most of retail companies and PNJ was not an
exception. However, by establishing the recruitment and
training procedure in such an appropriate way and completing
the KPI measurement standard for each individual, the
company was successful in establishing a professional staff
with even quality for the whole system.
was the favorable time for promoting the network expansion,
the Management Board decided to open 48 new stores at 25
provinces and Cities nationwide, exceeding 37% of the plan.
By the end of 2015, the whole system had 194 stores, including
125 gold stores, 65 silver stores and 4 CAO stores.
Last year was considered as the starting stage of the recovery of
the general economy and the retail sector in particular, so many
domestic and foreign brands were very active in competing and
searching good locations. In this context, PNJ still succeeded
in maintaining the stable network development speed and
it increased over the years thanks to the advantages from the
evaluation process of standardized selling points, combined with
the foundation about human resources and strong management
system built and strengthened for over the last 2 years.
1.2 Wholesale business activities: 2015 was an
unfavorable year for wholesale business when the revenue
decreased 3% compared to the same period. From the impact
of reducing the demand on gold bars of the gold market, more
and more companies were established specializing in trading
jewelry with flexible business mode, and increasingly fiercer
competition, although the revenue of the company decreased,
the gross profit increased 35% compared to the same period.
1.3 Export: Being similar to the retail segment, currently, the
export channel much focused on the high class product lines
with high processing price instead of spreading many product
lines as before. This orientation brought the export activities
the growth rate of 25% of the profit, although the revenue only
increased 3% compared to the same period.
2. SILVER JEWELRY: the revenue increased 4%, but the
gross profit increased 17% thanks to the pursuing on the high
class product lines with high gross profit ratio.
PNJ Standards – the service quality standard established
based on the international standards, focusing on customers,
providing enjoyable experience to customers from the time
coming to PNJ stores to the time customers own PNJ products,
was highly appreciated by domestic and foreign customers as
well as partners.
In 2015, PNJ Silver launched many unique product lines, using
new materials such as semi–precious stones, pearls combined
with the interesting story, topic, then it attracted the concern
of the young customers. After rebranding, PNJ Silver had
changed brand image and brought a certain business result.
The revenue maintained positive growth speed over the years,
thought it has not reached expectation, it showed a positive
change of the brand.
• Acceleration of the network development:
Although it was planned to open 35 new stores in 2015,
doubled the new stores opened in 2014, it was realized that this
Along with the efforts, PNJ Silver is believed to be quickly
successful in attracting fastidious customers and achieved the
high growth rate of revenue and gross profit.
THE FINANCIAL NORMS
NORMS
2015
(EXCLUDING
FINANCIAL
EXPENSES)
UNIT
2015
2014
Current ratio
Time
1.50x
1.29x
Debt on owner’s equity
Time
1.15x
1.22x
Turnover
3
4
Day
104
74
Gross profit margin / net revenue (GPM)
%
14.8%
10.9%
Net profit / revenue (ROS)
%
2%
6.7%
3.5%
Net profit / total assets (ROA)
%
5.5%
17.8%
9.5%
Net profit / owner’s equity (ROE)
%
12%
38.9%
20%
Solvency ratios
Inventory turnover
Inventory days
Operation efficiency ratios
• Norms about the current solvency were significantly
improved compared to the same period, mainly thanks to
the inventory increase and reduction of the loan. The strong
cash flow from business activities contributed to supplement
to the working capital and help the company not depending
on the loan although the inventory increased to 461 billion
VND, equivalent to 28% compared to the same period. By
the end of 2015, the rate of liability / equity of PNJ was 1.15
times, there was a reduction compared to the rate of 1.22
times of the same period of 2014.
• There was increase to the inventory days, reflecting the change
in the revenue structure when the jewelry group increasingly
accounted for high proportion. This was an inevitable trend
of the Retail Company in general and jewelry in particular.
The inventory days of each channel were strictly controlled
and were in the lower level compared to its peers in the world.
• The change in the structure of product lines as well as the
sales channels brought high gross profit ratios of 1.5 times
compared to the same period and it shall continue to grow
in the coming years.
• Though achieving impressive results about revenue and
gross profit, the norms of net profit in 2015 reduced
compared to the same period due to the impact from the
financial provision costs. If the financial provision costs
were excluded, ROS, ROA and ROE had an outstanding
growth compared to the same period. In which, ROE
reached 38.9%, an increase of 18.9% compared to 20% in
2014. These operation efficiency ratios clearly reflected the
acceleration in the core business activities of the Company.
FINANCIAL INVESTMENT AND THE
OPERATION OF SUBSIDIARIES
The book value of the current financial investment of PNJ was 166
billion VND, accounting for 34% of the initial investment value.
THE FINANCIAL INVESTMENT
VALUE OF PNJ AS OF 31
DECEMBER 2015
395
311
84
DONG A BANK
92
30 62
Total investment
capital
Provision
Remaining value
DONG A
REAL ESTATE
THE OPERATION OF THE SUBSIDIARIES
Cao Fine Jewelry: Its charter capital was 10 billion VND, the
revenue of the whole year was100 billion VND, an increase
of 144% compared to the same period, profit after tax was 10
billion VND. Though no new stores were opened, by its efforts,
the growth rate of CAO was doubled compared to the same
period. Realizing that this was the right time to strengthen the
high class jewelry product lines, the Management Board strongly
promoted the brand identity strategy as well as launched many
Marketing programs aiming at luxury segment. The achieved
result was the great motivation for the Management Board as
well as all employees of CAO in the way of conquering the high
class jewelry market in Vietnam.
PNJ Laboratory Co., Ltd. (PNJL): its charter capital was
also 10 billion VND, the revenue of PNJL was 14 billion VND,
increased 25% compared to the same period. Profit after tax was
6 billion VND, increased 23% compared to the same period.
It can be said that 2015 was a year full of success in all aspect
of PNJ, not only the increase in revenue and profit from the
business of the holding company, but also the outstanding
growth of PNJL and CAO, significantly contributed to the
cosolidated result.
FACTORS CREATING THE SUCCESS AND
THE SUSTAINABLE DEVELOPMENT OF
PNJ IN 2015
1. PRODUCTION CAPACITY
The production capacity was strongly invested both in
quantity and quality to bring more sophisticated products
to consumers.
With the strength of technology and skillful goldsmiths,
PNJ always led the market about product quality as well
as production capacity. Understanding the importance of
production, Board of Management always had the investment
strategy to further improve the capacity of PNJ Jewelry Factory.
• About the technology: in 2015, the company continued to
invest in modern machines to produce new product lines and
shorten processing time.
• The quality of human resources: apart from the internal
training programs, the senior staff of the Factory has attended
training courses abroad to update modern processing
techniques from leading experts in Europe. At the same
time, the Factory also officially received the technology
transfer from Italian partners, including intensive training
programs about production techniques.
• Production capacity: Every year, Jewelry Enterprise of PNJ
produced over 2 millions of products for both retail and
wholesale business. In which the high-end products like
diamond and gem-set jewelry required high processing
workmanship as well as longer time production because it
is passed more stages than. However, with the appropriate
investment strategy, in 2015, the Factory has increased 75%
of high-end jewelry capacity, this is also the key product
lines of the company in the future.
2. FOCUS ON INVESTING IN HUMAN RESOURCES
The human resources was recognized as the superior advantage of
the company during the past years, and especially reflected in 2015.
In 2015, PNJ was honored to be selected as Top 100 Vietnam best
working environment (evaluated by Nielsen & Anphabe).
• With the orientation of considering human as the foundation
for development, the Management Board established a
•
•
•
•
•
dynamic, professional, and inspiring working environment
for employees. The typical achievements gained last year
were as follows:
Complete the capacity dictionary for each position of
employees.
There was a comprehensive evaluation process about capacity
of employees to assign suitably and create opportunities for
the employees to promote their full capacity.
There was a good treatment policy, attracting and retaining
talents: The salary and bonus policy was considered
annually to ensure the suitability and competitiveness
compared to the general market.
Training was considered as an important activity helping
to develop and improve the capacity of employees.
The training programs were designed periodically or
unexpectedly according to the company’s demand, and
there was evaluation plan of the training program for
improvement in the next periods.
Create a professional and solidary working environment,
the company’s core value was considered as a striving
objective for each individual.
3. BRAND WITH INTERNATIONAL STATURE
Not only a successful year in domestic, PNJ also confirmed
its reputation in international market when becoming the
only brand representing Vietnamese jewelry industry to be
honored at the big and prestigious awards in the region.
• Within JNA Award 2015, PNJ has passed the caliber
companies like Chow Tai Fook, Golden Dew, Pandora ... to
win the award “Employer of the Year”. This award honors
companies with impressive development in recent years, and
had many contributions to jewelry industry of the country.
• Also in 2015, the products and designs of PNJ were honored
at the ASEAN Design Award, honoring the creativity and
skilled processing techniques of the employees of PNJ.
• Not only that, even in the domestic market, PNJ presented
the jewelry masterpiece “Phoenix Dress” – a new Guinness
record – to the international friends within Vietnam
International Fashion Week. This was also the focus of the
Fashion Week, creating a deep impression to the domestic
and foreign fashionista.
This masterpiece was made from 24 taels with more than
2,000 sophisticated details made by 30 jewelry artisans of PNJ
for 240 hours, it was made entirely by the manual method.
With the vision of “Becoming one of the leading jewelry
companies in Asia market”, with the achievements, PNJ was
proud to initially achieve its vision, create the prerequisite for
stronger development steps in the future.
4. RISK MANAGEMENT
Risk management to the quality of products and services:
To ensure that the product sold to consumers with best quality,
PNJ built a close quality control process controlled by PNJL
(PNJL was licensed by Directorate for Standards and Quality
for identifying the gold content).
The production stage was focused on investment in both
technology and workmanship of jewelry artisans: the
Management Board regularly updated the modern technology
trends of the world, and sent experts for training at the famous
markets about jewelry processing such as Italy, Germany.... to
apply and improve the production process.
For the team of jewelers, the training courses and competitions
were held regularly to evaluate their capacity. Through
these courses and competitions, the Company could find
outstanding employees timely encouragement and support.
Risk management to the quality of human resources
PNJ recruits from 200 to 300 new employees every year for
Jewelry Enterprise and the retail system nationwide. To ensure
the equal quality and meet the standards of staff, the Company
worked with many professional consultants to complete the
process of recruitment, training and capacity evaluation of
Employees. After nearly two years of application, this process
has shown the high efficiency when after the probation period,
all new employees meet the expected results.
Not only applied to new employees, during the time of working,
the company always has appropriate training programs to
improve the capacity of both old and new employees.
The 360–degree capacity evaluation was begun in the mid
2015 to help the Management Board have a comprehensive
view about the workforce to have an appropriate development
strategy. Besides, this project also helped employees to
judge their strengths and weaknesses to have orientation for
appropriate capacity practice.
Risk management to brain drain
Being the leading company in the industry and famous for
good training policy, that the employees of PNJ are always
welcomed by its rivals is inevitable. To limit the risk of brain
drain, the Company has had attractive salary and bonus policy,
ensuring the competitiveness and equality to the employees.
This policy is considered at the end of every year to ensure the
suitability for the next year.
The Management Board always cared for the spiritual life of
employees, through the union activities, family festivals, … At
jewelry enterprise, the company has invested the amusement
park, library, area for having a break for workers. In addition,
at the office of the Company there is gymnasium to serve the
demand of staff.
Risk management to finance
Credit risk:
The Company had suitable credit policies and regularly
supervised the fit situation to evaluate whether the Company
suffered from any credit risk or not.
The debt / equity ratio was controlled at a safe rate and it
tended to decrease.
The risk of gold price fluctuation:
PNJ controlled the average price of input and output in such
a flexible way, helping the company to control the gross profit
ratio at stable rate, according to the market demand and
production costs instead of raw material price fluctuation.
The focus on the brand strengths and the difference in
design also helped the company create higher surplus for the
products, and limit the risk of price fluctuation.
Along with the orientation strongly focusing on the medium
and high class segment, with the main product lines of diamond
and gemstone, the gold proportion to the gold product value
was likely to reduce because gemstone often had high value.
Gemstone was also considered to have a more stable price cost
price than gold.
CONCLUSION
The year 2015 ended with impressive achievements, we can
confirm the achieved objectives as follows:
Becoming the leading jewelry processor and retailer in Asia
market and securing the number one position in the segment
of medium and high class jewelry in Vietnam.
PNJ shall continue to develop in the coming years.
The corporate culture is also an important factor retaining
employees: PNJ is like a big family where the members not
only work but also have a close friendship, they jointly try for
the common objective. With the corporate culture of “big
family”, the working environment at PNJ is really an inspiring
place to help employees to best promote their capacity.
FINANCIAL REPORT
HONESTY IS THE
MEASUREMENT OF
THE TRANSPARENCY
IN EVERY ACTION,
A LEADING ETHICS
STANDARD THAT PNJ
COMMITS TO AIM AT.
STATEMENT OF THE
BOARD OF DIRECTORS
The Board of Directors of Phu Nhuan Jewelry Joint Stock
Company (the “Parent Company”) and subsidiaries (the
Parent Company and its subsidiaries are collectively referred
to as the “Company”) presents this report together with the
Company’s consolidated financial statements for the year
ended 31 December 2015.
THE BOARDS OF MANAGEMENT AND
DIRECTORS
The members of the Boards of Management and Directors of
the Company who held office during the year and to the date of
this report are as follows:
BOARD OF DIRECTORS
Ms. Cao Thi Ngoc Dung
Chairwoman
Mr. Nguyen Vu Phan
Vice Chairman
Ms. Nguyen Thi Cuc
Member
Mr. Nguyen Tuan Quynh
Member
Ms. Nguyen Thi Bich Ha
Member
Ms. Pham Vu Thanh Giang
Mr. Andy Ho
Member
Member
Mr. Pham Quoc Cong
(appointed on 15 April 2015)
Member
BOARD OF MANAGEMENT
Ms. Cao Thi Ngoc Dung
General Director
Mr. Le Huu Hanh
Deputy General Director
Ms. Nguyen Thi Cuc
Mr. Nguyen Vu Phan
Ms. Pham Thi My Hanh
INDEPENDENT
AUDIT REPORT
• Select suitable accounting policies and then apply them
consistently;
• Make judgments and estimates that are reasonable and
prudent;
• State whether applicable accounting principles have been
followed, subject to any material departures disclosed and explained in the consolidated financial statements;
• Prepare the consolidated financial statements on the going
concern basis unless it is inappropriate to presume that the
Company will continue in business; and
• Design and implement an effective internal control system
for the purpose of properly preparing and presenting the
consolidated financial statements so as to minimize errors
and frauds.
To:
The shareholders, Boards of Management and Directors
Deloitte Vietnam Company Limited
18th Floor, Times Square Building Tel: +84 8 3 9100 751
No. 22-36 Nguyen Hue Street,
Fax: +84 8 3 9100 750
District 1, Ho Chi Minh City
Email: [email protected]
We have audited the consolidated financial statements of Phu
Nhuan Jewelry Joint Stock Company and subsidiaries (the
“Company”), prepared on 01 March 2016 as set out from page
05 to page 35, which comprise the consolidated balance sheet
as at 31 December 2015, and the consolidated statement of
income, and consolidated statement of cash flows for the year
then ended, and a summary of significant accounting policies
and other explanatory information.
The Board of Directors is responsible for ensuring that proper
accounting records are kept, which disclose, with reasonable
accuracy at any time, the consolidated financial position of
the Company and that the consolidated financial statements
comply with Vietnamese Accounting Standards, accounting
regime for enterprises and legal regulations relating to financial
reporting. The Board of Directors is also responsible for
safeguarding the assets of the Company and hence for taking
reasonable steps for the prevention and detection of frauds and
other irregularities.
Management is responsible for the preparation and fair
presentation of these consolidated financial statements
in accordance with Vietnamese Accounting Standards,
accounting regime for enterprises and legal regulations relating
to consolidated financial reporting and for such internal
control as management determines is necessary to enable the
preparation of consolidated financial statements that are free
from material misstatement, whether due to fraud or error.
statements. The procedures selected depend on the auditors’
judgment, including the assessment of the risks of material
misstatement of the consolidated financial statements, whether
due to fraud or error. In making those risk assessments, the auditors
consider internal control relevant to the Company’s preparation
and fair presentation of the consolidated financial statements
in order to design audit procedures that are appropriate in the
circumstances, but not for the purpose of expressing an opinion
on the effectiveness of the Company’s internal control. An audit
also includes evaluating the appropriateness of accounting policies
used and the reasonableness of accounting estimates made by
management, as well as evaluating the overall presentation of the
consolidated financial statements.
The Board of Directors confirms that the Company has
complied with the above requirements in preparing these
consolidated financial statements.
For and on behalf of the Board of Directors,
BOARD OF DIRECTORS’ STATEMENT
OF RESPONSIBILITY
The Board of Directors of the Company is responsible for
preparing the consolidated financial statements, which give a
true and fair view of the consolidated financial position of the
Company and of its consolidated results and consolidated cash
flows for the year in accordance with Vietnamese Accounting
Standards, accounting regime for enterprises and legal
regulations relating to financial reporting. In preparing these
consolidated financial statements, the Board of Directors is
required to:
Cao Thi Ngoc Dung
General Director
01 March 2016
MANAGEMENT’S RESPONSIBILITY FOR
THE FINANCIAL STATEMENTS
AUDITORS’ RESPONSIBILITY
Our responsibility is to express an opinion on these financial
statements based on our audit. We conducted our audit in
accordance with Vietnamese Standards on Auditing. Those
standards require that we comply with ethical requirements and
plan and perform the audit to obtain reasonable assurance about
whether the consolidated financial statements are free from
material misstatement.
We believe that the audit evidence we have obtained is sufficient
and appropriate to provide a basis for our audit opinion.
OPINION
In our opinion, the consolidated financial statements give a
true and fair view of in all material respects, the consolidated
financial position of the Company as at 31 December 2015, and
its consolidated financial performance and its consolidated cash
flows for the year then ended in accordance with Vietnamese
Accounting Standards, accounting regime for enterprises and
legal regulations relating to consolidated financial reporting.
OTHER MATTER
An audit involves performing procedures to obtain audit evidence
about the amounts and disclosures in the consolidated financial
The Company’s consolidated financial statements for the
year ended 31 December 2014 were reviewed and audited by
another audit company. The independent auditors’ report dated
30 March 2015 expressed an unqualified opinion.
Vo Thai Hoa
Audit Practising Registration Certificate No. 0138-2013-001-1
Nguyen Trong The
Auditor
Audit Practising Registration Certificate No. 2649-2013-001-1
01 March 2016, Ho Chi Minh City, S.R. Vietnam
Financial report 63 CONSOLIDATED
BALANCE SHEET
CONSOLIDATED
BALANCE SHEET (Cont.)
As at 31 December 2015
Form B 01-DN/HN
Form B 01-DN/HN
Unit: VND
CODES ASSETS
100
A. CURRENT ASSETS
110
I. Cash and cash equivalents
111
120
123
130
1. Cash
II. Short-term financial investments
132
2. Short-term advances to suppliers
136
3. Other short-term receivables
137
4. Short-term doubtful debts
139
5. Deficits in assets awaiting solution
140
IV. Inventories
141
1. Inventories
150
V. Other short-term assets
151
1. Short-term prepayments
152
2. Value added tax deductibles
153
3. Taxes and other receivables from the State budget
200
210
B. NON-CURRENT ASSETS
I. Long-term receivables
216
1. Other long-term receivables
221
2,265,184,856,056
1,817,347,382,578
250
37,884,639,212
37,706,071,196
252
5
37,884,639,212
37,706,071,196
253
6
65,000,000
65,000,000
65,000,000
65,000,000
254
47,171,239,844
71,969,484,744
29,214,405,782
43,282,823,370
9,292,551,705
16,213,997,161
8,138,613,714
19,358,762,187
(35,327,600)
(7,787,546,259)
9
560,996,243
901,448,285
10
2,135,224,563,617
1,672,014,861,001
2,135,224,563,617
1,672,014,861,001
44,839,413,383
35,591,965,637
43,731,216,274
27,279,143,455
-
3,659,558,376
1,108,197,109
4,653,263,806
710,104,580,011
21,217,170,462
7
8
11
12
8
II. Fixed assets
1. Tangible fixed assets
222
- Cost
223
- Accumulated depreciation
227
31/12/2014
III. Short-term receivables
1. Short-term trade receivables
2. Intangible assets
13
14
166,666,261,924
531,799,217,588
16
81,974,511,924
81,456,342,588
17
395,271,613,400
460,651,988,400
6
(310,579,863,400)
(10,309,113,400)
29,839,176,730
13,468,610,732
IV. Long-term financial investments
1. Investments in associates
2. Equity invesments in other entities
3. Provision for impairment of long-term
financial investments
V. Other long-term assets
261
1. Long-term prepayments
11
27,342,224,660
12,547,147,880
262
2. Deferred tax assets
18
2,496,952,070
921,462,852
2,975,289,436,067
2,828,672,141,349
270
TOTAL ASSETS (270=100+200)
Unit: VND
CODES RESOURCES
31/12/2015
31/12/2014
300
C. LIABILITIES
1,580,939,890,550
1,532,149,329,780
310
I. Current liabilities
1,501,707,663,181
1,394,564,947,680
191,247,911,541
143,580,370,644
20,139,296,256
10,577,252,253
30,738,737,942
45,893,557,644
17,885,744,572
27,640,951,586
5,022,483,042
7,218,467,510
2. Short-term advances from customers
313
3. Taxes and amounts payable to the State budget
314
4. Payables to employees
1,011,324,758,771
13,588,573,996
315
5. Short-term accrued expenses
319
6. Other current payables
20
29,031,191,004
20,701,786,581
21,217,170,462
13,588,573,996
320
7. Short-term loans
21
1,189,260,458,896
1,131,686,128,041
486,102,562,173
451,729,266,255
322
8. Bonus and welfare funds
18,381,839,928
7,266,433,421
193,732,606,001
160,479,587,999
330
79,232,227,369
137,584,382,100
326,471,653,080
265,520,614,214
337
1. Other long-term payables
20
403,668,000
455,382,100
(132,739,047,079)
(105,041,026,215)
338
2. Long-term loans
22
72,388,000,000
137,129,000,000
292,369,956,172
291,249,678,256
342
3. Long-term provisions
23
6,440,559,369
-
1,394,349,545,517
1,296,522,811,569
1,394,349,545,517
1,296,522,811,569
982,745,770,000
755,970,350,000
982,745,770,000
755,970,350,000
-
105,021,650,000
293,121,956,571
229
- Accumulated depreciation
(3,375,410,399)
(1,872,278,315)
240
III. Long-term assets in progress
6,279,408,722
739,090,200
6,279,408,722
739,090,200
D. EQUITY
410
I. Owners’ equity
411
411a
19
12
II. Long-term liabilities
400
412
31/12/2014
312
295,745,366,571
15
31/12/2015
1. Short-term trade payables
- Cost
1. Long-term construction in progress
260
NOTES
311
228
242
CODES ASSETS
31/12/2015
1. Held-to-maturity investments
131
220
NOTES
Unit: VND
1. Owners’ contributed capital
- Ordinary shares carrying voting rights
2. Share premium
24
Financial report 65 CONSOLIDATED
BALANCE SHEET (Cont.)
CONSOLIDATED
INCOME STATEMENT
Form B 01-DN/HN
Unit: VND
CODES RESOURCES
31/12/2015
31/12/2014
(7,090,000)
(7,090,000)
Unit: VND
CODES ITEMS
2014
7,741,445,592,122
9,297,810,872,565
33,092,915,485
98,592,775,013
2. Deductions
202,732,850,786
10
27
7,708,352,676,637
9,199,218,097,552
39,660,441,986
37,575,928,291
3. Net revenue from goods sold and services
rendered (10=01-02)
152,302,812,748
165,156,922,495
11
4. Cost of goods sold and services rendered
28
6,537,985,006,949
8,309,982,541,638
2,975,289,436,067
2,828,672,141,349
20
5. Gross profit from goods sold and services
rendered (20=10-11)
1,170,367,669,688
889,235,555,914
21
6. Financial income
30
1,327,860,382
18,739,496,430
22
7. Financial expenses
31
430,803,003,461
90,254,654,225
81,048,729,469
79,682,197,799
4. Investment and development fund
219,647,610,783
232,805,050,783
421
5. Retained earnings
191,963,254,734
421a
- Retained earnings accumulated to the prior year end
421b
- Retained earnings of the current year
23
Dang Thi Lai
Chief Accountant
2015
02
418
Duong Quang Hai
Preparer
NOTES
1. Gross revenue from goods sold and services rendered
3. Treasury shares
TOTAL RESOURCES (440=300+400)
Form B 02-DN/HN
01
415
440
For the year ended 31 December 2015
Cao Thi Ngoc Dung
General Director
01 March 2016
In which: Interest expense
25
8. Selling expenses
32
423,930,312,468
354,954,031,945
26
9. General and administration expenses
33
117,548,223,185
129,618,733,552
30
10. Operating profit (30=20+(21-22)-(25+26))
199,413,990,956
333,147,632,622
31
11. Other income
1,626,760,778
2,661,863,738
32
12. Other expenses
4,235,541,568
1,579,562,479
40
13. (Loss)/profit from other activities (40=31-32)
(2,608,780,790)
1,082,301,259
45
14. Profit from associates
518,169,336
803,613,002
50
15. Accounting profit before tax (50=30+40+45)
197,323,379,502
335,033,546,883
51
16. Current corporate income tax expense
34
46,596,055,972
79,455,050,132
52
17. Deferred corporate income tax
18. Profit after corporate income tax
(60=50-51-52)
18
(1,575,489,218)
(293,307,944)
152,302,812,748
255,871,804,695
-
13,376,498,721
152,302,812,748
242,495,305,974
1,347
2,144
60
16
Attributable to:
61
- Non-controlling interest
62
- The Parent Company’s shareholders
70
19. Basic earnings per share
Duong Quang Hai
Preparer
35
Dang Thi Lai
Chief Accountant
Cao Thi Ngoc Dung
General Director
01 March 2016
Financial report 67 CONSOLIDATED CASH FLOW STATEMENT
CONSOLIDATED CASH FLOW STATEMENT (Cont.)
Form B 03-DN/HN
Form B 03-DN/HN
Unit: VND
Unit: VND
CODES ITEMS
2015
2014
CODES ITEMS
1, Profit before tax
197,323,379,502
335,033,546,883
2, Adjustments for:
1. Proceeds from borrowings
4.745.829.672.583
6.042.963.679.870
34
2. Repayments of borrowings
(4.752.996.341.728)
(5.915.061.935.454)
(22.678.897.800)
(241.907.534.200)
(29.845.566.945)
(114.005.789.784)
178.568.016
(470.115.673.988)
37.706.071.196
507.821.745.184
37.884.639.212
37.706.071.196
31,011,683,393
36
3. Dividends paid
292,518,531,341
468,396,300
40
286,018,688
-
50
Loss/(Gain) from investing activities
38,178,084,255
(16,087,701,495)
60
Net cash used in financing activities
Net increase/(decrease) incash
(50=20+30+40)
Cash at the beginning of the year
Interest expense
3, Operating profit before movements in
working capital
81,048,729,469
79,682,197,799
70
Cash at the end of the year (70=50+60)
639,805,779,034
430,108,122,880
31,791,940,883
(21,705,446,742)
(463,209,702,616)
(627,182,836,856)
Depreciation and amortization
03
Provisions
04
Foreign exchange loss arising from translating
foreign currency items
05
06
08
33
30,451,035,779
02
09
Decrease/(Increase) in account receivables
10
Increase in inventories
11
Increase in account payables
65,513,478,444
76,335,837,103
12
Increase in prepaid expenses
(31,247,149,599)
(6,200,444,610)
14
Interest paid
(80,553,486,249)
(79,682,197,799)
15
Corporate income tax paid
(67,771,689,466)
(79,187,348,685)
17
Other cash outflows
(20,624,506,660)
(45,574,805,295)
20
Net cash generated by/(used in) operating activities
73,704,663,771
(353,089,120,004)
II, CASH FLOWS FROM INVESTING
ACTIVITIES
21
1, Acquisition of fixed assets and other long-term assets
22
2, Proceeds from disposal of fixed assets
24
3, Cash recovered from lending, selling debt
instruments of other entities
27
4, Interest earned
30
Net cash used in investing activities
2014
III. CASH FLOWS FROM FINANCING
ACTIVITIES
I, CASH FLOWS FROM OPERATING
ACTIVITIES
01
2015
Duong Quang Hai
Preparer
Dang Thi Lai
Chief Accountant
Cao Thi Ngoc Dung
General Director
01 March 2016
(70,364,650,219)
(34,530,888,745)
301,946,364
642,272,726
26,152,150,000
9,149,322,084
230,025,045
21,718,529,735
(43,680,528,810)
(3,020,764,200)
Financial report 69 DESCRIPTION OF CONSOLIDATED
FINANCIAL REPORT
DESCRIPTION OF CONSOLIDATED
FINANCIAL REPORT
FINANCIAL REPORT (Cont.)
Form B 09-DN/HN
These notes are an integral part of and should be read in conjunction with the accompanying consolidated financial statements
1.GENERAL INFORMATION
Accounting Standards, accounting regime for enterprises and
legal regulations relating to financial reporting.
The Company has been listed on the Ho Chi Minh City
Stock Exchange (“HOSE”) since 23 March 2009 pursuant to
the Decision No.129/ĐKNY issued by the General Director
of HOSE on 26 December 2008.
Vinh Long Branch
• Branch of Phu Nhuan Jewelry Joint Stock CompanyNha Trang Branch
• Branch of Phu Nhuan Jewelry Joint Stock CompanyDa Nang Branch
• Branch of Phu Nhuan Jewelry Joint Stock CompanyHa Noi Branch
• Branch of Phu Nhuan Jewelry Joint Stock CompanyCan Tho Branch
• Branch of Phu Nhuan Jewelry Joint Stock CompanyTay Nguyen Branch
The number of employees as at 31 December 2015 was
3,274 (as at 31 December 2014: 2,494).
Disclosure of information comparability in the
consolidated financial statements
Operating industry and principal activities
The Company’s principal activities are to trade gold, silver,
jewelry and gemstones, and to import and export jewelry in
gold, silver and gemstones.
As stated in Note 3, since 1 January 2015, the Company
has adopted Circular No. 200/2014/TT-BTC issued by
the Ministry of Finance on 22 December 2014 (“Circular
200”) guiding the accounting regime for enterprises and
Circular No. 202/2014/TT-BTC issued by the Ministry of
Finance on 22 December 2014 (“Circular 202”) guiding
the preparation and presentation of consolidated financial
statements. Circular 200 supersedes the regulations for
accounting regime promulgated under Decision No.
15/2006/QD-BTC dated 20 March 2006 issued by the
Ministry of Finance and Circular No. 244/2009/TTBTC dated 31 December 2009 issued by the Ministry
of Finance. Circular 202 supersedes section XIII in
Circular No. 161/2007/TT-BTC dated 31 December
2007 of the Ministry of Finance guiding the preparation
and presentation of consolidated financial statements in
accordance with Vietnamese Accounting Standard No.
25 “Consolidated Financial Statements and Accounting
for Investments in Subsidiaries”. However, the adoption
of such circulars does not have significant impact on the
comparability of the figures in the Company’s consolidated
financial statements.
3. ADOPTION OF NEW ACCOUNTING GUIDANCE
New guidance on accounting regime for enterprises
On 22 December 2014, the Ministry of Finance issued
Circular No. 200/2014/TT-BTC (“Circular 200”) guiding
the accounting regime for enterprises and Circular No.
202/2014/TT-BTC (Circular 202) guiding the preparation
and presentation of consolidated financial statements.
These circulars are effective for financial years beginning
on or after 01 January 2015. Circular 200 supersedes the
regulations for accounting regime promulgated under
Decision No. 15/2006/QD-BTC dated 20 March
2006 issued by the Ministry of Finance and Circular No.
244/2009/TT-BTC dated 31 December 2009 issued
by the Ministry of Finance. Circular 202 will supersede
section XIII in Circular No. 161/2007/TT-BTC dated 31
December 2007 of the Ministry of Finance guiding the
preparation and presentation of consolidated financial
statements in accordance with Vietnamese Accounting
Standard No. 25 “Consolidated Financial Statements and
Accounting for Investments in Subsidiaries”. The Board of
Directors has adopted Circular 200 in the preparation and
presentation of the consolidated financial statements for
the year ended 31 December 2015.
2.
ACCOUNTING CONVENTION AND
FINANCIAL YEAR
4.
SUMMARY
OF
SIGNIFICANT
ACCOUNTING POLICIES
Accounting convention
The accompanying consolidated financial statements,
expressed in Vietnam Dong (“VND”), are prepared under the
historical cost convention and in accordance with Vietnamese
The significant accounting policies, which have been adopted
by the Company in the preparation of these consolidated
financial statements, are as follows:
Phu Nhuan Jewelry Joint Stock Company (the “Parent
Company”) was incorporated as a joint stock company
under the Business Registration Certificate No. 0300521758
dated 2 January 2004 issued by the Department of Planning
and Investment of Ho Chi Minh City, as amended.
Normal production and business cycle
The Company’s normal production and business cycle is
carried out for a time period of 12 months or less.
The Company’s structure
The Parent Company’s head office is located at 170 Phan
Dang Luu Street, Ward 3, Phu Nhuan District, Ho Chi
Minh City, Vietnam. In addition, the Company also has
one hundred and ninety-four (194) retail shops located in
various provinces and cities in Vietnam.
As at 31 December 2015, the Company’s subsidiaries and
associates were:
• CAO Fashion Company Limited – Subsiadiary
• PNJ Laboratory Company Limited – Subsiadiary
• Dong A Land Joint Stock Company– Associate
As at 31 December 2015, the Company also had fourty
one (41) branches located in various provinces and cities in
Vietnam, in which, the big branches were:
• Branch of Phu Nhuan Jewelry Joint Stock CompanyBien Hoa Branch
• Branch of Phu Nhuan Jewelry Joint Stock CompanyHue City
• Branch of Phu Nhuan Jewelry Joint Stock Company-
Form B 09-DN/HN
The accompanying consolidated financial statements are not
intended to present the financial position, consolidated results
of operations and consolidated cash flows in accordance
with accounting principles and practices generally accepted
in countries and jurisdictions other than Vietnam.
Financial year
The Company’s financial year begins on 1 January and ends
on 31 December.
Estimates
The preparation of financial statements in conformity with
Vietnamese Accounting Standards, accounting regime
for enterprises and legal regulations relating to financial
reporting requires the Board of Directors to make estimates
and assumptions that affect the reported amounts of assets,
liabilities and disclosures of contingent assets and liabilities
at the date of the consolidated financial statements and the
reported amounts of revenues and expenses during the
financial year. Although these accounting estimates are based
on the Board of Directors’ best knowledge, actual results may
differ from those estimates.
Basis of consolidation
The consolidated financial statements incorporate the
financial statements of the Parent Company and enterprises
controlled by the Parent Company (its subsidiaries) up
to 31 December each year. Control is achieved where
the Company has the power to govern the financial and
operating policies of an investee enterprise so as to obtain
benefits from its activities.
The results of subsidiaries acquired or disposed of during the
year are included in the consolidated income statement from
the effective date of acquisition or up to the effective date of
disposal, as appropriate.
Where necessary, adjustments are made to the financial
statements of subsidiaries to bring the accounting policies
used in line with those used by the Parent Company.
Intragroup transactions and balances are eliminated in full on
consolidation.
Non-controlling interests in the net assets of consolidated
subsidiaries are identified separately from the parent’s
ownership interests in them. Non-controlling interests consist
of the amount of those non-controlling interests at the date of
the original business combination (see below) and the noncontrolling interests’ share of changes in equity since the date
of the combination. Losses in subsidiaries are respectively
attributed to the non-controlling interests even if this results in
the non-controlling interests having a deficit balance.
Financial statements 73 DESCRIPTION OF CONSOLIDATED
Form B 09-DN/HN
Business combinations
On acquisition, the assets and liabilities and contingent
liabilities of a subsidiary are measured at their fair values at the
date of acquisition. Any excess of the cost of acquisition over the
fair values of the identifiable net assets acquired is recognised as
goodwill. Any deficiency of the cost of acquisition below the
fair values of the identifiable net assets acquired is credited to
profit and loss in the period of acquisition.
The non-controlling interests are initially measured at the
non-controlling shareholders’ proportion of the net fair value
of the assets, liabilities and contingent liabilities recognised.
Investments in associates
An associate is an entity over which the Parent Company has
significant influence and that is neither a subsidiary nor an
interest in joint venture. Significant influence is the power to
participate in the financial and operating policy decisions of
the investee but not control or joint control over those policies.
The results and assets and liabilities of associates are
incorporated in these consolidated financial statements using
the equity method of accounting. Interests in associates are
carried in the consolidated balance sheet at cost as adjusted
by post-acquisition changes in the Parent Company’s share
of the net assets of the associate. Losses of an associate in
excess of the Parent Company’s interest in that associate
(which includes any long-term interests that, in substance,
form part of the Company’s net investment in the associate)
are not recognised.
Where a group entity transacts with an associate of the Parent
Company, unrealised profits and losses are eliminated to the
extent of the Parent Company’s interest in the relevant associate.
Financial instruments
Initial recognition
Financial assets: At the date of initial recognition, financial
assets are recognised at cost plus transaction costs that are
directly attributable to the acquisition of the financial assets.
Financial assets of the Company comprise cash, trade and
other receivables, deposits and financial investments.
Financial liabilities: At the date of initial recognition financial
liabilities are recognised at cost plus transaction costs that
are directly attributable to the issue of the financial liabilities.
Financial liabilities of the Company comprise trade and
other payables, accrued expenses and borrowings.
Subsequent measurement after initial recognition
Currently, there are no requirements for the subsequent
measurement of the financial instruments after initial recognition.
Cash
Cash comprise cash on hand and demand deposits.
Financial investments
Trading securities
Trading securities are those the Company holds for trading
purpose. Trading securities are recognised from the date
the Company obtains the ownership of those securities and
initially measured at the fair value of payments made at the
transaction date plus directly attributable transaction costs.
In subsequent periods, investments in trading securities
are measured at cost less provision for impairment of such
investments.
Provision for impairment of investments in trading securities
is made in accordance with prevailing accounting regulations.
Held-to-maturity investments
Held-to-maturity investments comprise investments that
the Company has the positive intent or ability to hold to
maturity, including term deposits (commercial bills), bonds,
preference shares which the issuer shall redeem at a certain
date in the future, loans held to maturity to earn periodic
interest and other held-to-maturity investments.
Held-to-maturity investments are recognised on a trade
date basis and are initially measured at acquisition price
plus directly attributable transaction costs. Post-acquisition
interest income from held-to-maturity investments is
recognised in the consolidated income statement on accrual
basis. Pre-acquisition interest is deducted from the cost of
such investments at the acquisition date.
Form B 09-DN/HN
Held-to-maturity investments are measured at cost less
provision for doubtful debts.
Provision for doubtful debts relating to held-to-maturity
investments is made in accordance with prevailing
accounting regulations.
Other long-term investments
Other long-term investments are investments in other entities
which the Company owns less than 20% voting rights and
does not have significant influence, with maturity over 1 year.
Other long-term investments are recorded at the starting date
of acquisition and the initial value are determined based on
the cost and other cost related to the investments. In the next
fiscal years, the other long-term investments are determined
at cost less the impairment of investments.
Provisions for impairment of investments
Provisions for impairment of investments in subsidiaries, joint
ventures and associates are made in accordance with Circular
No. 228/2009/TT-BTC dated 7 December 2009 issued
by the Ministry of Finance on “Guiding the appropriation
and use of provisions for devaluation of inventories, loss of
financial investments, bad debts and warranty for products,
goods and construction works at enterprises”, Circular No.
89/2013/TT-BTC dated 28 June 2013 by the Ministry
of Finance amending and supplementing Circular No.
228/2009/TT-BTC and prevailing accounting regulations.
Receivables
Receivables represent the amounts recoverable from
customers or other debtors and are stated at book value less
provision for doubtful debts.
Provision for doubtful debts is made for receivables that
are overdue for six months or more, or when the debtor is
in dissolution, in bankruptcy, or is experiencing similar
difficulties and so may be unable to repay the debt.
Inventories
Inventories are stated at the lower of cost and net realisable
value. Cost comprises direct materials and where applicable,
direct labour costs and those overheads that have been
incurred in bringing the inventories to their present location
and condition. Cost is calculated using the weighted average
method. Net realisable value represents the estimated selling
price less all estimated costs to completion and costs to be
incurred in marketing, selling and distribution.
The evaluation of necessary provision for inventory
obsolescence follows current prevailing accounting
regulations which allow provisions to be made for obsolete,
damaged, or sub-standard inventories and for those
which have costs higher than net realisable values as at the
consolidated balance sheet date.
Tangible fixed assets and depreciation
Tangible fixed assets are stated at cost less accumulated
depreciation. The costs of purchased tangible fixed assets
comprise their purchase prices and any directly attributable
costs of bringing the assets to their working condition and
location for their intended use.
Tangible fixed assets are depreciated using the straight-line
method over their estimated useful lives as follows:
Years
Buildings and structures
03 - 25
Machinery and equipment
03 - 15
Motor vehicles
04 - 10
Office equipment
03 - 08
Loss or gain resulting from sales and disposals of tangible
fixed assets is the difference between profit from sales or
disposals of assets and their residual values and is recognised
in the consolidated income statement.
Leasing
Leases where substantially all the rewards and risks of
ownership of assets remain with the leasing company are
accounted for as operating leases. Rentals payable under
operating leases are charged to the income statement on a
straight-line basis over the term of the relevant lease.
Intangible assets and amortisation
Intangible assets represents the value of computer software
that is stated at cost less accumulated amortisation and is
amortized on the straight-line basis over their estimated
useful lives of 3 years.
Form B 09-DN/HN
Land use rights are recorded as an intangible asset in the
consolidated balance sheet when the Company received the
certificate of land use rights. The history cost of the land use
rights comprises all directly attributable costs of bringing the
land lot to the condition available for intended use and is not
amortized because the land use rights have long usage time.
Construction in progress
Properties in the course of construction for selling, are carried
at cost. Cost includes land use rights and construction cost for
trade centers and stores in accordance with the Company’s
accounting policy. Depreciation of these assets is applied on
the same basis as other assets, commences when the assets
are ready for their intended use.
Prepayments
Prepayments include short-term prepayments or long-term
prepayments in the consolidated balance sheet and are
amortised over the period for which the amounts are paid
or the period in which economic benefits are generated in
relation to these expenses.
Long-term prepaid expenses comprise:
• Prepaid rental which includes land and shop rental prepaid for
many years under operating leases contracts and is amortized
over the lease term;
• Tools and comsumables with large value issued in use which
can be used for more than one year; and
• Others which are amortized to the consolidated income
statement over 2 to 3 years.
Straight bond issued
The Company issues straight bonds for long-term loan
purposes to finance capital’s projects. Carrying value of
straight bonds is recorded on net basis, equal to bonds’
nominal amount.
Borrowing costs
Interest expense includes interest and other costs incurred
related to the loans of the Company and is recorded to the
expenses incurred during the year.
Revenue recognition
Revenue from the sale of goods is recognised when all five
(5) following conditions are satisfied:
(a) the Company has transferred to the buyer the significant
risks and rewards of ownership of the goods;
(b) the Company retains neither continuing managerial involvement to the degree usually associated with ownership
nor effective control over the goods sold;
(c) the amount of revenue can be measured reliably;
(d) it is probable that the economic benefits associated with the
transaction will flow to the Company; and
(e) the costs incurred or to be incurred in respect of the
transaction can be measured reliably.
Revenue of a transaction involving the rendering of services
is recognised when the outcome of such transactions can
be measured reliably. Where a transaction involving the
rendering of services is attributable to several years, revenue
is recognised in each period by reference to the percentage
of completion of the transaction at the consolidated balance
sheet date of that year. The outcome of a transaction can be
measured reliably when all four (4) following conditions
are satisfied:
(a) the amount of revenue can be measured reliably;
(b) it is probable that the economic benefits associated with
the transaction will flow to the Company;
(c) the percentage of completion of the transaction at the
consolidated balance sheet date can be measured reliably; and
(d) the costs incurred for the transaction and the costs to
complete the transaction can be measured reliably.
Interest income is accrued on a time basis, by reference to the
principal outstanding and at the applicable interest rate.
Dividend income from investments is recognised when the
Company’s right to receive payment has been established.
Severance allowance payable
The severance allowance for employees is accrued at the end of
each reporting period for all employees having worked at the
Company for full 12 months and above. Working time serving
as the basis for calculating severance allowance shall be the total
actual working time subtracting the time when the employees
have made unemployment insurance contributions as
prescribed by law, and the working time when severance
allowance has been paid to the employees. The allowance
made for each year of service equals to a half of an average
Form B 09-DN/HN
monthly salary under the Vietnamese Labour Code, Social
Insurance Code and relevant guiding documents. The average
monthly salary used for calculation of severance allowance
shall be adjusted to be the average of the 6 consecutive months
nearest to the date of the financial statements at the end of each
financial year. The increase or decrease in the accrued amount
shall be recorded in the income statement.
Foreign currencies
The Company applies the method of recording foreign
exchange differences in accordance with Vietnamese
Accounting Standard No. 10 (VAS 10) “Effects of changes
in foreign exchange rates” and Circular 200/2014/TTBTC (“Circular 200”) guiding accouting regime for
enterprises. Accordingly, transactions arising in foreign
currencies are translated at exchange rates ruling at
the transaction date. The balances of monetary items
denominated in foreign currencies as at the consolidated
balance sheet date are retranslated at the exchange rates
on the same date. Exchange differences arising from
the translation of these accounts are recognised in the
consolidated income statement. Unrealised exchange
gains as at the consolidated balance sheet date are not
treated as part of distributable profit to shareholders.
Payable provisions
Payable provisions are recognised when the Company has a
present obligation as a result of a past event, and it is probable
that the Company will be required to settle that obligation.
Provisions are measured at the management’s best estimate
of the expenditure required to settle the obligation as at the
balance sheet date.
carrying amounts of assets and liabilities in the consolidated
financial statements and the corresponding tax bases used in
the computation of taxable profit and is accounted for using
balance sheet liability method. Deferred tax liabilities are
generally recognised for all temporary differences and deferred
tax assets are recognised to the extent that it is probable that
taxable profit will be available against which deductible
temporary differences can be utilised.
Deferred tax is calculated at the tax rates that are expected to
apply in the period when the liability is settled or the asset
realised. Deferred tax is charged or credited to profit or loss,
except when it relates to items charged or credited directly to
equity, in which case the deferred tax is also dealt with in equity.
Deferred tax assets and liabilities are offset when there is a
legally enforceable right to set off current tax assets against
current tax liabilities and when they relate to income taxes
levied by the same tax authority and the Company intends to
settle its current tax assets and liabilities on a net basis.
The determination of the tax currently payable is based on
the current interpretation of tax regulations. However, these
regulations are subject to periodic variation and their ultimate
determination depends on the results of the tax authorities’
examinations.
Other taxes are paid in accordance with the prevailing tax
laws in Vietnam.
Taxation
Income tax expense represents the sum of the tax currently
payable and deferred tax
The tax currently payable is based on taxable profit for the
period. Taxable profit differs from net profit as reported in
the consolidated income statement because it excludes items
of income or expense that are taxable or deductible in other
periods (including loss carried forward, if any) and it further
excludes items that are never taxable or deductible.
Deferred tax is recognised on significant differences between
Financial statements 77 78 Annual report PNJ - 2015
Significant intra-group transactions during the year (Note 38).
Sai Gon M&C Real Estate Joint Stock Company
(310,579,863,400)
395,336,613,400
(310,579,863,400)
-
395,271,613,400
Dong A Joint Stock Commercial Bank (“DAB”) (*)
Finance dated 22 December 2014 with an amount of VND
234,599,264,879.
84,756,750,000
-
84,691,750,000
84,691,750,000
460,716,988,400
65,380,375,000
395,271,613,400
460,651,988,400
65,000,000
65,000,000
-
-
PROVISION
(10,309,113,400)
-
(10,309,113,400)
(10,309,113,400)
37,706,071,196
(310,579,863,400)
37,884,639,212
395,271,613,400
As at 31 December 2014, cash equivalents which are gold
are reclassified to inventories in accordance with guidance
of Circular No. 200/2014/TT-BTC of the Ministry of
65,000,000
65,000,000
FAIR VALUE
31/12/2014
VND
450,407,875,000
65,380,375,000
384,962,500,000
450,342,875,000
Form B 09-DN/HN
- Investments in other entities
1,801,316,000
b. Investments in other entities
2,078,947,000
65,000,000
Cash in transit
-
6,653,427,710
65,000,000
9,926,639,754
- Time deposit
Cash in bank
Short-term
29,251,327,486
65,000,000
25,879,052,458
-
Cash on hand
COST
31/12/2014
VND
FAIR VALUE
5.CASH
PROVISION
65,000,000
COST
31/12/2015
VND
31/12/2015
VND
a. Held-to-maturity investments
6. FINANCIAL INVESTMENTS
Form B 09-DN/HN
(*) On 14 August 2015, the State Bank of Vietnam decided to
put Dong A Joint Stock Commercial Bank under special control.
However, the Board of Directors believes that the Company
made provision for impairment of investments in this bank fully
and in accordance with current accounting regulations as at the
consolidated balance sheet date.
7. SHORT-TERM TRADE RECEIVABLES
FH Trautz GmBh
Others
31/12/2015
VND
31/12/2014
VND
362,078,769
13,274,137,702
6,531,852,825
4,084,326,480
22,320,474,188
25,924,359,188
29,214,405,782
43,282,823,370
8. OTHER RECEIVABLES
31/12/2015
VND
31/12/2014
VND
- Advances to employees
1,050,979,825
644,633,055
- Others
7,087,633,889
18,714,129,132
8,138,613,714
19,358,762,187
21,217,170,462
13,588,573,996
21,217,170,462
13,588,573,996
b. Long-term receivables
- Long-term deposits to rent the stores
31/12/2015
VND
31/12/2014
VND
9,502,592,792
608,973,823
Raw materials
91,664,955,905
100,732,561,181
Tools and supplies
20,813,328,324
19,923,350,233
Works in progress
131,664,308,110
147,201,507,351
Finished goods
134,240,935,308
129,280,128,300
1,736,881,061,410
1,258,766,029,857
10,457,381,768
15,502,310,256
2,135,224,563,617
1,672,014,861,001
Merchandise
Goods on consignment
As at 31 December 2015, inventories of VND 465,916,000,000
(as at 31 December 2014: VND 570,000,000,000) were used as
collateral for short-term loans obtained from commercial banks
(Note 21).
31/12/2014
VND
31/12/2015
VND
31/12/2014
VND
4,854,961,022
3,361,387,270
32,298,885,139
15,041,864,775
6,577,370,113
8,875,891,410
43,731,216,274
27,279,143,455
14,769,074,483
4,158,587,626
(a) Short-term prepayments
- Stores rental
- Tools and supplies
- Others
9. DEFICITS IN ASSSETS AWAITING SOLUTION
Others
31/12/2015
VND
11. PREPAYMENTS
a. Short-term receivables
Gold (3,75 gram)
10. INVENTORIES
Goods in transit
Total Gaz Vietnam Limited
Form B 09-DN/HN
b) Long-term prepayments
QUANTITY
AMOUNT
QUANTITY
AMOUNT
161.83
485,490,600
149.99
499,999,998
- Stores rental
3,341,918,467
3,198,215,073
-
75,505,643
-
401,448,287
- Tools and supplies
9,231,231,710
5,190,345,181
161,83
560,996,243
149,99
901,448,285
27,342,224,660
12,547,147,880
- Office and Stores renovation cost
Financial statements 81 - Personal income tax
- Others
45,893,557,644
4,525,720,813
(42,238,028,172)
38,595,803,733
883,496,374
- Import-export tax
53,542,993
(5,228,858,091)
5,363,199,865
187,884,767
- Others
74,000,000
(3,000,094,965)
2,962,910,933
36,815,968
4,653,263,806 (50,466,981,228)
46,921,914,531
1,108,197,109
b. Payables
- Value added tax
12,952,051,210
125,536,247,521
(119,661,326,281)
18,826,972,450
- Corporate income tax
32,257,181,576
46,551,388,848
(67,771,689,466)
11,036,880,958
684,324,858
8,542,584,405
(8,352,024,729)
874,884,534
523,721,605
(523,721,605)
-
181,153,942,379 (196,308,762,081)
30,738,737,942
-
Disposals
5,306,503,177
Charge for the year
66,296,567,555
46,771,123,056
103,840,411,870
104,258,887,525
14,727,971,401
4,101,557,199
20,018,423,208
(704,949,195)
7,299,515,685
13,423,856,718
34,746,394,609
(704,949,195)
17,925,929,887
17,525,413,917
VND
VND
8,867,655,175
5,348,020,219
5,568,236,150
(544,933,636)
1,023,736,044
5,089,433,742
14,435,891,325
(544,933,636)
4,543,371,000
The cost of tangible fixed assets as at 31 December 2015 comprises fully depreciated fixed assets which are still in use with the total amount of VND 61,407,021,450
(as at 31 December 2014: VND 45,923,225,781).
85,546,479,087
-
15,318,148,789
70,228,330,298
151,843,046,642
-
34,843,593,288
116,999,453,354
21,605,908,634
-
16,299,405,457
As at 01/01/2015
125,446,320,504
4,888,027,522
120,558,292,982
Additions
As at 31/12/2015
NET BOOK VALUE
As at 31/12/2015
As at 01/01/2015
VND
Disposals
VND
ACCUMULATED DEPRECIATION
VND
As at31/12/2015
VND
10,437,453,961
31/12/2015
VND
12. TAXES AND OTHER RECEIVABLES FROM/ PAYABLES TO THE STATE BUDGET
MOTOR
VEHICLES
VND
TOTAL
193,732,606,001
160,479,587,999
132,739,047,079
(1,249,882,831)
28,947,903,695
105,041,026,215
326,471,653,080
(1,249,882,831)
62,200,921,697
265,520,614,214
Form B 09-DN/HN
As at 01/01/2015
- Value added tax
RECEIVED/PAID
DURING
THE YEAR
OFFICE
EQUIPMENT
VND
a. Receivables
01/01/2015
RECEIVABLE/
PAYABLE
DURING
THE YEAR
BUILDINGS AND MACHINERY AND
STRUCTURES
EQUIPMENT
COST
13. INCREASES, DECREASES IN TANGIBLE FIXED ASSETS
Form B 09-DN/HN
Form B 09-DN/HN
14. INCREASES, DECREASES IN INTANGIBLE ASSETS
LAND USE
RIGHTS
COMPUTER
SOFTWARE
TOTAL
VND
VND
VND
COST
Dong A Land Joint Stock Company (“DAL”) was established
in Ho Chi Minh City with the charter capital of VND
300,000,000,000 according to the Business Registration
Certificate No. 4103001739 issued by the Department of
Planning and Investment of Ho Chi Minh City dated 24 July
2003. Total equity of the Company is VND 91,866,300,000,
equivalent to 30.62% of total capital. The principal activities
of DAL are providing design services, project management,
building service, providing advisory services and real estate
agents, business and home decoration.
Summary of financial information about associates is as follow:
As at 01/01/2015
Additions
As at 31/12/2015
285,183,268,988
7,938,687,583
293,121,956,571
2,623,410,000
-
2,623,410,000
287,806,678,988
7,938,687,583
295,745,366,571
Total assets
ACCUMULATED AMORTIZATION
31/12/2015
VND
31/12/2014
VND
1,191,136,152,238
1,128,023,303,265
As at 01/01/2015
-
1,872,278,315
1,872,278,315
Total liabilities
915,363,429,773
856,081,601,592
Charge for the year
-
1,503,132,084
1,503,132,084
Net assets
275,772,722,465
271,941,701,673
As at 31/12/2015
-
3,375,410,399
3,375,410,399
Parent Company’s share of associates’ net assets
84,441,607,619
83,268,549,052
As at 31/12/2015
287,806,678,988
4,563,277,184
292,369,956,172
As at 01/01/2015
285,183,268,988
6,066,409,268
291,249,678,256
2015
VND
2014
VND
42,611,150,530
104,623,587,893
1,692,141,742
2,624,470,941
518,169,336
803,613,002
31/12/2015
VND
31/12/2014
VND
NET BOOK VALUE
As presented in Note 21 and 22, the value of land use rights used
as collateral for the loans in commercial banks as at 31 December
2015 is VND 106,543,452,000 (as at 31 December 2014: VND
106,543,452,000).
The cost of intangible assets as at 31 December 2015 comprises fully
depreciated fixed assets which are still in use with the total amount of
VND 1,112,471,613 (as at 31 December 2014: Nil).
15. CONSTRUCTION IN PROGRESS
Store at Sunrise city mall
Construction expense of stores
Net profit
Parent Company’s share of associates’ net profit
17. EQUITY INVESTMENTS IN OTHER ENTITIES
31/12/2015
VND
31/12/2014
VND
5,540,318,522
-
Dong A Joint Stock Commercial Bank (“DAB”)
395,271,613,400
395,271,613,400
739,090,200
739,090,200
Sai Gon M&C Real Estate Joint Stock Company
-
65,380,375,000
6,279,408,722
739,090,200
395,271,613,400
460,651,988,400
Detailed information about these companies as at 31 December
2015 was as follow:
16. INVESTMENTS IN ASSOCIATES
31/12/2015
VND
31/12/2014
VND
Investments in associates
91,866,300,000
91,866,300,000
Share of post-acquisition loss
(9,891,788,076)
(10,409,957,412)
81,974,511,924
81,456,342,588
Net revenue
COMPANY NAME
Dong A Joint Stock Commercial Bank
(“DAB”)
PROPORTI PROPORTION
PLACE OF
ON OF OF VOTING
INCORPORATION OWNERSHIP
POWER
AND OPERATION INTEREST (%)
HELD(%)
Ho Chi Minh City
7.69
PRINCIPAL
ACTIVITY
Business
operations related
to financial
7.69 activities, banking
Form B 09-DN/HN
18. DEFERRED TAX
The deferred tax assets recorded by the Company and changes
of these items in this year and prior years are as follow:
20. OTHER PAYABLES
ACCRUALS AND
OTHER PROVISIONS
VND
As at 1 January 2014
628,154,908
Credit to the income statement
293,307,944
921,462,852
Credit to the income statement
1,575,489,218
2,496,952,070
19.SHORT-TERM TRADE PAYABLES
31/12/2015
AMOUNT ABLE
AMOUNT TO BE PAID OFF
VND
VND
Forte Jewellery (HK)
Limited Company
Sherenuj Fareast
Limited Company
Other suppliers
Form B 09-DN/HN
31/12/2014
AMOUNT ABLE
AMOUNT TO BE PAID OFF
VND
VND
13,580,648,775
13,580,648,775
18,437,084,070
18,437,084,070
12,596,607,000
12,596,607,000
-
-
165,070,655,766
165,070,655,766
125,143,286,574
125,143,286,574
191,247,911,541
191,247,911,541
31/12/2015
VND
31/12/2014
VND
- Surpluses in assets awaiting solution
29,031,191,004
666,637,223
20,701,786,581
-
- Trade union fee
2,679,311,205
4,912,336,783
- Social insurance
8,131,384
-
- Health insurance
309,565
198,471,280
- Unemployment insurance
615,766
272,373,838
803,029,644
804,402,000
- Payables to Board of Directors fund
6,071,220,092
6,653,120,092
- Payables to Trade union fund
4,241,530,139
4,276,739,004
- Dividends payable
8,318,214,645
18,824,540
- Others
6,242,191,341
3,565,519,044
403,668,000
455,382,100
403,668,000
455,382,100
29,434,859,004
21,157,168,681
a) Current payables
- Payables to Board of Management fund
b) Long-term payables
- Others
143,580,370,644 143,580,370,644
Financial statements 87 1,189,260,458,896
1,189,260,458,896
1,131,686,128,041
1,131,686,128,041
4,489,345,672,583 (4,431,771,341,728)
26,804,000,000
26,804,000,000
Current portion of bond liabilities
(see Note 22)
10,045,000,000
10,045,000,000
22,516,000,000
(5,757,000,000)
265,572,301,515
265,572,301,515
Other individuals
317,316,702,000
317,316,702,000
431,804,201,515
(483,548,602,000)
300,000,000,000
300,000,000,000
300,000,000,000
Orient Commercial Joint Stock Bank
(165,579,800,000)
165,579,800,000
ANZ Bank (Vietnam) Limited
(100,000,000,000)
100,000,000,000
-
(86,135,607,619)
86,135,607,619
-
(95,385,000,000)
80,000,000,000
15,385,000,000
15,385,000,000
-
Ho Chi Minh City Housing Development Commercial Joint Stock Bank
Vietnam Prosperity Joint Stock
Commercial Bank
Vietnam International Commercial
Joint Stock Bank
Vietnam Asian Commercial
Joint Stock Bank
15,900,000,000
15,900,000,000
341,460,000,000
(357,360,000,000)
60,267,509,526
60,267,509,526
Military Commercial Joint Stock Bank
20,393,013,713
20,393,013,713
326,569,133,751
(286,694,637,938)
60,000,000,000
60,000,000,000
Shinhan Bank Vietnam Limited
60,000,000,000
60,000,000,000
240,000,000,000
(240,000,000,000)
65,669,000,000
65,669,000,000
(195,000,000,000)
197,669,000,000
63,000,000,000
63,000,000,000
70,000,000,000
70,000,000,000
400,000,000,000
(470,000,000,000)
100,000,000,000
100,000,000,000
90,000,000,000
90,000,000,000
450,000,000,000
(440,000,000,000)
279,947,647,855
279,947,647,855
122,893,085,681
122,893,085,681
745,451,352,007
(588,396,789,833)
31,000,000,000
31,000,000,000
(499,613,904,338)
392,160,577,691
138,453,326,647
210,000,000,000
208,300,000,000
208,300,000,000
Asia Commercial Joint Stock Bank
Vietnam Joint Stock Commercial Bank
for Industry and Trade
Joint Stock Company Bank for Foreign
trade
Southeast Asia Commercial
Joint Stock Bank
Petrolimex Group Commercial
Joint Stock Bank
CTBC Bank Company Limited Ho Chi Minh Branch
138,453,326,647
-
AMOUNT
VND
INCREASE
VND
AMOUNT
VND
(418,300,000,000)
31/12/2015
AMOUNT ABLE
TO BE PAID OFF
VND
IN THE YEAR
DECREASE
VND
1/1/2015
AMOUNT ABLE
TO BE PAID OFF
VND
21. SHORT-TERM LOANS
Form B 09-DN/HN
Details of short-term loans at commercial banks with
floating interest rates to accommodate the Company’s
working capital are presented as follows:
BANK NAME
Vietnam Joint Stock
Commercial Bank for
Industry and Trade
Joint Stock Company Bank
for Foreign trade
31/12/2015
VND
31,000,000,000
279,947,647,855
MATURITY DATE
From 04 February 2016
to 05 February 2016
From 07 March 2016
to 28 June 2016
Southeast Asia
Commercial Joint Stock Bank
100,000,000,000
From 08 March 2016
to 25 March 2016
CTBC Bank Company Limited - Ho Chi Minh Branch
65,669,000,000
From 19 April 2016
to 24 May 2016
Shinhan Bank Vietnam
Limited
Military Commercial
Joint Stock Bank
Orient Commercial
Joint Stock Bank
Other individuals
Current portion of
long-term loans (see Note 23)
60,000,000,000
60,267,509,526
From 20 January 2016
to 02 March 2016
From 09 January 2016
to 29 February 2016
INTEREST
%/P.A
COLLATERAL
5.0
Inventories
5.5
Unsecured Loan
Inventories, Land use
rights and land-based
assets at 123 Hung
7.0
Vuong, Hai Chau
II Ward, Hai Chau
District, Da Nang
Inventories with the
6.0 - 6.4
value up to
USD 2,000,000
5.3 - 5.6
Inventories
5.0
Unsecured Loan
300,000,000,000
12 November 2016
8.5
The Company’s
Stock (*)
265,572,301,515
From 31 December 2015
to 30 December 2016
3.0 - 9.0
Unsecured Loan
26,804,000,000
1,189,260,458,896
(*) At 09 November 2015, the Company entered into the
contract with Orient Commercial Joint Stock Bank (“OCB”)
relating to the issue of 300,000 bonds at par value (1,000,000/
bond) to restructure the short-term loan and invest in the
expansion of the Company’s stores with 14,530,017 the
Company’s stocks as collateral asset. The period of the bond is
01 year from 12 November 2015 to 12 November 2016 with
fixed interest rate at 8.5% per annum. The shares are pledged by
the Company including 9,498,714 shares of Ms. Cao Thi Ngoc
Dung - General Director, 623,996 PNJ shares of Ms. Nguyen
Thi Cuc - Deputy General Director, 748,800 PNJ shares of Mr.
Le Huu Hanh - Deputy General Director , 1,610,106 PNJ shares
of PNJ Trade Union and 2,048,401 PNJ shares of Mrs. Pham
Thuy Lan Anh - Shareholder.
Financial statements 89 90 Annual report PNJ - 2015
137,129,000,000
137,129,000,000
Current portion of long-term liabilities
72,388,000,000
(26,804,000,000)
57,532,000,000
In which:
41,660,000,000
31/12/2015
VND
8.2%
6%
INTEREST
%
Terms and conditions of the loans and other long-term debt balance are detailed as follows:
-
59,001,000,000
78,128,000,000
01/01/2015
AMOUNT ABLE
TO BE PAID OFF
VND
-
59,001,000,000
Other individuals
78,128,000,000
AMOUNT
VND
22. LONG-TERM LOANS
-
46,018,000,000
-
(228,757,000,000)
(6,000,000,000)
2017
2020
MATURITY
DATE
Land use rights and land-based assets at 52A+52B Nguyen Van Troi
Street, Phu Nhuan District, Ho Chi Minh City (HCMC); 159A Phan
Dang Luu, Phu Nhuan District, HCMC; 577 Nguyen Kiem, Phu
Nhuan District, HCMC; 174 Le Thanh Ton, District 1, HCM City
Land use rights at 16-18 and 24/2Thu Khoa Huan Street, District 1,
Ho Chi Minh City
COLLATERAL
72,388,000,000
46,018,000,000
26,370,000,000
(86,468,000,000)
72,388,000,000
26,370,000,000
AMOUNT
VND
256,484,000,000 (321,225,000,000)
6,000,000,000
215,774,000,000
34,710,000,000
INCREASE
VND
31/12/2015
AMOUNT ABLE
TO BE PAID OFF
VND
IN THER YEAR
DECREASE
VND
Less: Amount due for settlement within 12 months (shown under Note 21)
Amount due for settlement after 12 months
Form B 09-DN/HN
Long-term liabilities are redeemable as the following schedule:
31/12/2015
VND
31/12/2014
VND
On demand or within one year
26,804,000,000
10,045,000,000
In the second year
28,194,000,000
78,128,000,000
In the third to fifth year inclusive
44,194,000,000
59,001,000,000
99,192,000,000
147,174,000,000
26,804,000,000
10,045,000,000
72,388,000,000
137,129,000,000
23. LONG-TERM PROVISIONS
Long-term provision was the severance allowance for
employees accrued at the end of each reporting period for
all employees who have worked at the Company before 31
December 2008.
Financial statements 91 1,394,349,545,517
191,963,254,734
219,647,610,783
(7,090,000)
According to the Resolution of the Annual General Meeting
of Shareholders No. 544/2015/NQ-ĐHĐCĐ-CTY
dated 15 April 2015, the Shareholders approved the plan to
distribute 2014 profit as below:
- 2014 dividends of VND 188,990,819,000 including VND
90,714,882,200 advanced in 2014, VND 75,596,330,000
paid by bonus shares and VND 22,678,897,800 paid in cash.
The declared dividends were paid in cash with an amount of
VND 22,678,897,800 during the year.
- Distribution to Investment and development fund, bonus
and, welfare funds and other funds with the amounts
of VND 33,000,000,000; VND 26,797,181,000, VND
5,000,000 respectively.
- The Shareholders also approved the issuance plan of
22,677,542 additional shares, in which 7,559,633 shares
equivalent to VND 75,596,330,000 were used to pay
dividends in 2014 and 15,119,265 shares equivalent to
VND 151,192,650,000 were from owner’s equity.
As at 31 December 2015, the Company has been in completing
increasing the owners’ equity. The increase in capital was
approved by Ho Chi Minh City Stock Exchange under Decision
No. 288/QD-SGDHCM dated 17 July 2015.
Shares - Ordinary shares
31/12/2015
NUMBER OF
SHARES
31/12/2014
NUMBER OF
SHARES
98,274,577
75,597,035
98,274,577
75,597,035
(709)
(709)
(709)
(709)
Shares in circulation
98,273,868
75,596,326
Ordinary shares
98,273,868
75,596,326
Ordinary shares
Treasury shares
-
982,745,770,000
An ordinary share has par value of VND 10,000.
Owners’ contributed capital As at 31 December 2015, the owners’ contributed capital
was fully contributed by the shareholders as follows:
Balance as at 31/12/2015
PER BUSINESS REGISTRATION
CERTIFICATE
Other profit appropriation
Transfer to bonus and welfare funds
Profit appropriation
Dividend declared
-
Ordinary shares
-
Form B 09-DN/HN
-
(5,000,000,000)
(5,000,000,000)
-
(26,797,181,000)
(26,797,181,000)
-
(33,000,000,000)
33,000,000,000
-
(22,678,897,800)
(22,678,897,800)
-
152,302,812,748
152,302,812,748
-
Shares issued and fully paid
Profit for the year
(75,596,330,000)
Capital increase
226,775,420,000
(105,021,650,000)
(46,157,440,000)
1,296,522,811,569
202,732,850,786
232,805,050,783
(7,090,000)
105,021,650,000
755,970,350,000
(22,285,541,431)
(22,285,541,431)
Transfer to bonus and welfare funds
(49,100,000,000)
49,100,000,000
Profit appropriation
(90,714,882,200)
(90,714,882,200)
Advanced 1st time dividends
(151,192,652,000)
(151,192,652,000)
Dividends declared
242,495,305,974
242,495,305,974
Profit for the year
1,318,220,581,226
183,705,050,783
(7,090,000)
755,970,350,000
105,021,650,000
273,530,620,443
TOTAL
VND
TREASURY
SHARES
VND
RETAINED
EARNINGS
VND
INVESTMENT
AND
DEVELOPMENT
FUND
VND
OWNERS’
CONTRIBUTED
CAPITAL
VND SHARE PREMIUM
24. OWNERS’ EQUITY
CONTRIBUTED CAPITAL
31/12/2015
31/12/2014
VND
%
VND
VND
99,667,140,000
10.14%
99,667,140,000
76,667,040,000
Nguyen Thi Cuc
9,424,960,000
0.96%
9,424,960,000
7,249,980,000
Nguyen Vu Phan
8,969,960,000
0.91%
8,969,960,000
6,899,980,000
864,683,710,000
87.99%
864,683,710,000
665,153,350,000
982,745,770,000
100%
982,745,770,000
755,970,350,000
Cao Thi Ngoc Dung
Other shareholders
Total
Form B 09-DN/HN
25. OFF BALANCE SHEET ITEMS
27. NET REVENUE FROM GOODS SOLD AND
SERVICES RENDERED
Foreign currencies:
UNIT
31/12/2015
31/12/2014
United States Dollar
USD
68,831
8,382
Australia Dollar
AUD
519
30,006
Singapore Dollar
SGD
174
-
Consignment goods for sale, goods held under
trust, pledged, mortgaged goods
Phu Nhuan Jewelry Joint Stock Company is receiving the
pledged, mortgaged gold jewelry and precious stones at 31
December 2015 with the value of VND 3,302,900,000 (as at
31 December 2014: VND 2,554,300,000).
2015
VND
2014
VND
7,823,457,981,256
7,293,513,471,782
-
1,968,961,904,427
Rendering services
23,491,258,304
20,613,001,351
Sales of accessories
19,285,807,269
14,722,495,005
(124,789,454,707)
(82,202,300,786)
Sales of goods, silver and jewelry
Sales of fuel
Value added tax applying direct method
7,741,445,592,122
Sales returned
Bad debts written off
During the year, the Board of Directors has evaluated the
recoverability and writen-off bad debts following:
2015
VND
Others
4,247,179,715
662,043,053
4,909,222,768
(16,390,474,227)
7,708,352,676,637
9,199,218,097,552
2015
VND
2014
VND
6,520,722,575,159
6,406,635,018,755
-
1,889,614,030,755
4,027,952,554
3,393,999,670
13,234,479,236
10,339,492,458
6,537,985,006,949
8,309,982,541,638
2015
VND
2014
VND
5,944,441,220,235
8,318,149,954,817
374,547,137,576
196,647,826,741
Depreciation and amortisation
30,451,035,779
31,011,683,393
Outside services expenses
54,414,467,861
45,085,470,406
Other monetary expenses
103,729,636,789
7,691,926,404
208,487,688,397
95,544,835,189
6,716,071,186,637
8,694,131,696,950
28. COST OF GOODS SOLD AND SERVICES RENDERED
Cost of goods, silver and jewelry
Cost of fuel
Cost of services rendered
Cost of accessories
26. BUSINESS AND GEOGRAPHICAL SEGMENTS
The principal activity of the Company is to trade gold, silver,
jewelry and gemstones. Additionally, the other activities
mainly are trading accessories, jewellery inspection services.
Revenue from the other operating activities merely accounts
for an immaterial rate in the total revenue, for year ended 31
December 2015 it is 1% (2014: 26%). Revenue and cost
of sales from operating activities are presented in Note 27
and Note 28 of the Notes to the consolidated financial
statements. In respect of geographical segments, the
Company merely operates within Vietnam (export activites
take up 0.03% of total revenue). Accordingly, the Board of
Directors assessed and believed that no segment reporting
in the consolidated financial statements for the year ended
31 December 2015 was in accordance with Vietnamese
Accounting Standard No. 28 - “Segment Reporting” and the
Company’s current operating situation.
9,215,608,571,779
(33,092,915,485)
Ho Van My
Bui Minh Ky
Form B 09-DN/HN
29. PRODUCTION AND OPERATING COST BY
NATURE
Raw materials
Labour cost
Form B 09-DN/HN
30. FINANCIAL INCOME
Dividends received
Interest income
Realized foreign exchange gain
Others
33. GENERAL AND ADMINATION EXPENSE
2015
VND
2014
VND
-
8,422,164,000
Management materials
230,025,045
9,907,458,935
Management staff
1,081,780,830
409,104,517
16,054,507
768,978
1,327,860,382
18,739,496,430
Office supplies
Taxes , fees and charges
Out-sourced services
31. FINANCIAL EXPENSE
2015
VND
2014
VND
81,048,729,469
79,682,197,799
300,270,750,000
7,949,553,178
39,228,225,000
-
Foreign exchange loss
9,253,442,646
964,406,647
Others
1,001,856,346
1,658,496,601
430,803,003,461
90,254,654,225
Interest expense
Provision for impairment of investments
Loss from disposal of investments
Form B 09-DN/HN
2015
VND
2014
VND
134,424,660
120,760,100
66,302,994,075
68,719,031,778
5,294,172,298
4,970,040,568
10,300,718,453
5,967,671,880
260,977,200
167,344,953
5,627,138,663
4,073,426,517
29,627,797,836
45,600,457,756
117,548,223,185
129,618,733,552
2015
VND
2014
VND
46,596,055,972
79,455,050,132
46,596,055,972
79,455,050,132
(1,575,489,218)
(293,307,944)
(1,575,489,218)
(293,307,944)
34. CURRENT CORPORATE INCOME TAX
EXPENSE
Corporate income tax expense
Corporate income tax based on taxable profit in the current period
Deferred corporate income tax expense
32. SELLING EXPENSE
2015
VND
2014
VND
21,656,836,175
10,290,686,002
180,521,472,970
141,725,007,574
28,524,688,354
19,952,029,634
4,039,449,304
3,174,188,316
Out-sourced services
93,457,335,542
92,462,542,845
95,730,530,123
87,349,577,574
423,930,312,468
354,954,031,945
Management materials
Management staff
Office supplies
Deferred corporate income tax expense incurred from taxable temporary
differences
The Company is obliged to pay corporate income tax at the
rate of 22% of its assessable income.
Form B 09-DN/HN
35. BASIC EARNINGS PER SHARE
The calculation of the basic earnings per share attributable to
the ordinary equity holders of the Company is based on the
data as below and the certain reclassification has been made
to the prior year’s figures in accordance with the guidance of
Circular 200 to enhance their comparability with the current
year’s presentation:
2015
VND
2014
VND
Earnings for the purposes of calculating basic earnings per share
152,302,812,748
242,495,305,974
Estimated management bonus and welfare fund; funds for board of management
(19,970,696,275)
(31,797,181,000)
Earnings for the purpose of calculating basic earnings per share
132,332,116,473
210,698,124,974
98,273,868
98,273,868
1,347
2,144
Weighted average number of ordinary shares for the purpose of
calculating basic earnings per share
Basis earnings per share
In 2015, the Company has issued 22,677,542 shares, increased
owners’ capital from other owners’ equity and retained earnings
led to a retrospective adjustment to the weighted average
number of ordinary shares of the year ended 31 December 2014
as following:
WEIGHTED AVERAGE NUMBER
OF ORDINARY
Under the financial statements for the year ended 31 Decemebr 2014
75,596,326
Change of increasing shares from retained earnings of previous year
22,677,542
Adjusted amount
98,273,868
36. OPERATING LEASE COMMITMENTS
Minimumleasepaymentsunderoperatingleasesrecognisedin the
consolidated income statement for the year
At the consolidated balance sheet date, the Company
had outstanding commitments under non-cancellable
operating leases, which fall due as follows:
Within one year
In the second to fifth year inclusive
After five years
Operating lease mainly includes rental related to 194 stores
which are currently operating in Vietnam.
Form B 09-DN/HN
2015
VND
2014
VND
68,388,253,744
37,340,047,682
37.FINANCIAL INSTRUMENTS
Capital risk management
The Company manages its capital to ensure that the Company
will be able to continue as a going concern while maximising
the return to shareholders through the optimisation of the
debt and equity balance.
Gearing ratio
The gearing ratio of the Company as at the consolidated
balance sheet date was as follows:
The capital structure of the Company consists of net debt
(borrowings as disclosed in Note 21 and 22, offset by cash)
and shareholders’ equity (comprising owners’ contributed
capital, reserves and retained earnings).
31/12/2015
VND
31/12/2014
VND
Borrowings
1,261,648,458,896
1,268,815,128,041
Less: Cash
(37,884,639,212)
(37,706,071,196)
Net debt
1,223,763,819,684
1,231,109,056,845
Equity
1,394,349,545,517
1,296,522,811,569
0.88
0.95
Net debt to equity ratio
Significant accounting policies
Details of the significant accounting policies and methods
adopted (including the criteria for recognition, the bases
Categories of financial instruments
of measurement, and the bases for recognition of income
and expenses) for each class of financial asset and financial
liability are disclosed in Note 4.
CARRYING AMOUNTS
31/12/2015
31/12/2014
VND
VND
Financial assets
31/12/2015
VND
31/12/2014
VND
61,519,354,281
50,895,130,269
162,681,151,732
120,774,255,680
84,933,286,000
61,506,640,000
309,133,792,013
233,176,025,949
Cash
37,884,639,212
37,706,071,196
Trade and other receivables
37,317,691,896
54,854,039,298
Short-term financial investments
65,000,000
65,000,000
Long-term financial investments
84,691,750,000
450,342,875,000
Deposits
21,217,170,462
13,588,573,996
181,176,251,570
556,556,559,490
1,261,648,458,896
1,268,815,128,041
212,364,555,900
164,718,714,785
5,022,483,042
7,218,467,510
1,479,035,497,838
1,440,752,310,336
Financial liabilities
Borrowings
Trade and other payables
Accrued expenses
Form B 09-DN/HN
The Company has not assessed fair value of its financial assets
and liabilities as at the consolidated balance sheet date since
there are no comprehensive guidance under Circular No.
210/2009/TT-BTC issued by the Ministry of Finance on 6
November 2009 (“Circular 210”) and other relevant prevailing
regulations to determine fair value of these financial assets
and liabilities. While Circular 210 refers to the application
of International Financial Reporting Standards (“IFRS”) on
presentation and disclosures of financial instruments, it did
not adopt the equivalent guidance for the recognition and
measurement of financial instruments, including application of
fair value, in accordance with IFRS.
Financial risk management objectives
The Company has set up risk management system to identify and
assess the risks exposed by the Company and designed control
policies and procedures to manage those risks at an acceptable level.
United States Dollar (USD)
Australia Dollar (AUD)
Hong Kong Dollar (HKD)
Euro (EUR)
Singapore Dollar (SGD)
Financial risks include market risk (including foreign currency
risk and interest rate risk), credit risk and liquidity risk.
Market risk
The Company’s activities expose it primarily to the financial
risks of changes in foreign currency exchange rates and
interest rates. The Company does not hedge these risk
exposures due to the lack of active market for the trading
activities of financial instruments.
Foreign currency risk management
The Company undertakes certain transactions denominated
in foreign currencies; consequently, exposures to exchange
rate fluctuations arise.
31/12/2014
31/12/2015
31/12/2014
VND
VND
VND
VND
11,531,962,091
10,281,528,188
27,715,094,254
124,890,783,407
17,660
543,430,896
1,469,232,815
543,153,309
-
2,825,400
-
-
817,969,786
1,200,157,800
258,738,849
34,954,365,219
2,900,352
-
-
-
The Company is mainly exposed to United States Dollar
and Euro.
The sensitivity rate used when analyzing foreign currency
sensitivity is 5% which is assessed to have significant effect on
monetary items denominated in foreign currency at the year
end by the Board of Directors.
For a 5% increase/decrease in the USD and EUR against
Interest rate sensitivity
The loan’s sensitivity to interest rate changes which may
arise at an appropriate level is presented in the following
table. Assuming all other variables were held constant, if
interest rates applicable to floating interest bearing loans
had been 200 basis points higher/lower, the Company’s
profit before tax for the year ended 31 December 2015
would have decreased/increased by VND 19,352,969,178
(2014: VND 25,376,302,560).
Credit risk
Credit risk refers to the risk that counterparty will default
on its contractual obligations resulting in financial loss to
the Company. The Company has a credit policy in place
and the exposure to credit risk is monitored on an on-going
basis. The Company does not have any significant credit
risk exposure to any counterparty because receivables
consist of a large number of customers, spread across
diverse industries.
LIABILITIES
31/12/2015
Foreign currency sensitivity analysis
Risk management system is reviewed on a regular basis to reflect
changes in market conditions and the Company’s operations.
The carrying amounts of the Company’s foreign currency
denominated monetary assets and monetary liabilities at the
end of the year are as follows:
ASSETS
Form B 09-DN/HN
VND, the profit before tax for the year ended 31 December
2015 would have decreased/increased by the amounts of
VND 781,617,144 (2014: VND 7,418,017,982) respectively.
Interest rate risk management
The Company has significant interest rate risks arising
from interest bearing loans which are arranged. The risk is
managed by the Company by maintaining an appropriate
level of borrowings and analysing market competition to
enjoy favourable interest rates from appropriate lenders.
Liquidity risk management
The purpose of liquidity risk management is to ensure the
availability of funds to meet present and future financial
obligations. Liquidity is also managed by ensuring that the
excess of maturing liabilities over maturing assets in any period
is kept to manageable levels relative to the amount of funds that
the Company believes can generate within that period. The
Company policy is to regularly monitor current and expected
liquidity requirements to ensure that the Company maintains
sufficient reserves of cash, borrowings and adequate committed
funding from its shareholders to meet its liquidity requirements
in the short and longer term.
The following table details the Company’s remaining
contractual maturity for its non-derivative financial assets and
financial liabilities with agreed repayment periods. The tables
have been drawn up based on the undiscounted cash flows
of financial assets and undiscounted cash flows of financial
liabilities based on the earliest date on which the Company
can be required to pay. The inclusion of information on nonderivative financial assets is necessary in order to understand
the Company’s liquidity risk management as the liquidity is
managed on a net asset and liability basis.
LESS THAN 1 YEAR
VND
FROM 1- 5 YEARS
VND
TOTAL
VND
Cash
37,884,639,212
-
37,884,639,212
37,317,691,896
-
37,317,691,896
65,000,000
-
65,000,000
-
84,691,750,000
84,691,750,000
Deposits
-
21,217,170,462
21,217,170,462
75,267,331,108
105,908,920,462
181,176,251,570
1,189,260,458,896
72,388,000,000
1,261,648,458,896
211,960,887,900
403,668,000
212,364,555,900
5,022,483,042
-
5,022,483,042
1,406,243,829,838
72,791,668,000
1,479,035,497,838
(1,330,976,498,730)
33,117,252,462
(1,297,859,246,268)
31/12/2015
Borrowings
Accrued expenses
Net liquidity gap
Form B 09-DN/HN
FROM 1- 5 YEARS
VND
TOTAL
VND
Cash
37,706,071,196
-
37,706,071,196
54,854,039,298
-
54,854,039,298
65,000,000
-
65,000,000
-
450,342,875,000
450,342,875,000
Deposits
-
13,588,573,996
13,588,573,996
92,625,110,494
463,931,448,996
556,556,559,490
1,131,686,128,041
137,129,000,000
1,268,815,128,041
164,263,332,685
455,382,100
164,718,714,785
7,218,467,510
-
7,218,467,510
1,303,167,928,236
137,584,382,100
1,440,752,310,336
(1,210,542,817,742)
326,347,066,896
(884,195,750,846)
Borrowings
Accrued expenses
Net liquidity gap
LESS THAN 1 YEAR
VND
31/12/2014
The Board of Directors assessed the liquidity risk at low
level because the Company has a quantity of inventories of
gold and jewelery with a high value and high liquidity. The
38.
RELATED PARTY TRANSACTIONS
BALANCES
List of related parties:
Board of Directors believes that the Company will be able to
generate sufficient funds to meet its financial obligations as
and when they fall due.
AND
RELATED PARTIES
RELATIONSHIP
Dong A Land Joint Stock Company
Associate
Related party
Form B 09-DN/HN
During the year, the Company entered into the following
significant transactions with its related parties:
2015
VND
2014
VND
423,080,075
436,992,956
3,499,947,727
5,313,662,665
-
7,699,250,000
6,500,000,000
-
Significant related party balances as at the consolidated
balance sheet date were as follows:
31/12/2015
VND
31/12/2014
VND
-
204,864,518
41,660,000,000
78,128,000,000
2015
VND
2014
VND
7,314,937,003
8,445,600,000
Short-term trade payable
Long-term loan
Remuneration paid to the Company’s Board of Directors
and Board of Management during the year was as follows:
Salaries and bonus
39.
SUPPLEMENTAL DISCLOSURES OF CASH
FLOW INFORMATION
Supplemental non-cash disclosures
Interest paid includes an amount of VND 3,751,936,495,
representing the interst expense incurred in 2014 and
excludes VND 4,247,179,715, representing the interst
expense incurred during the year that has not yet been
paid. Consequently, increase in accounts payable have been
adjusted by the same amount.
Cash outflows for dividends during the year include VND
22,678,897,800, representing the dividends incurred in
2014 and exclude VND 75,596,330,000, representing
dividends incurred in the year used to increase the capital.
40. COMPARATIVE FIGURES
As stated in Note 3, since 1 January 2015, the Company
has adopted Circular No. 200/2014/TT-BTC issued by
the Ministry of Finance on 22 December 2014 (“Circular
200”) guiding the accounting regime for enterprises and
Circular No. 202/2014/TT-BTC issued by the Ministry of
Finance on 22 December 2014 (“Circular 202”) guiding
the preparation and presentation of consolidated financial
statements. Accordingly, certain figures of the consolidated
balance sheet, the consolidated income statement and
consolidated cash flow statement of the previous year are
reclassified to be adopted to be comparability of the figures
of the current year.
Purchase of goods and services
Dividends received
Purchase of land use rights
Form B 09-DN/HN
CONSOLIDATED BALANCE SHEET
CODES ASSETS
100
A - CURRENT ASSETS
110
I. Cash and cash equivalents
112
120
123
1. Cash equivalents
II. Short-term receivable
1. Held to maturity investments
130
III. Short-term receivables
136
1. Other receivables (*)
139
2. Deficits in assets awaiting solution
Form B 09-DN/HN
CONSOLIDATED INCOME STATEMENT
REPORTED RECLASSIFICATION
AMOUNT AFTER
AMOUNT
BASED ON RECLASSIFICATION
31/12/2014
CIRCULAR 200
AS AT 31/12/2014
2,166,580,633,869
-
2,166,580,633,869
234,599,264,879
(234,599,264,879)
-
234,599,264,879
(234,599,264,879)
-
-
65,000,000
65,000,000
-
65,000,000
65,000,000
19,615,577,417
644,633,055
20,260,210,472
19,615,577,417
(256,815,230)
19,358,762,187
-
901,448,285
901,448,285
CODES ITEMS
REPORTED
AMOUNT YEAR
ENDED 2014
RECLASSIFICATION
UNDER CIRCULAR
200
AMOUNT AFTER
RECLASSIFICATION
FOR 2014
31
Other income
2,668,838,792
(6,975,054)
2,661,863,738
32
Other expenses
1,586,537,533
(6,975,054)
1,579,562,479
70
Basic earnings per share
3,208
(1,064)
2,144
REPORTED
AMOUNT YEAR
ENDED 2014
RECLASSIFICATION
UNDER CIRCULAR
200
AMOUNT AFTER
RECLASSIFICATION
FOR 2014
CONSOLIDATED CASH FLOW STATEMENT
CODES
I, CASH FLOWS FROM
OPERATING ACTIVITIES
140
IV. Inventories
1,437,415,596,122
234,599,264,879
1,672,014,861,001
141
1. Inventories
1,437,415,596,122
234,599,264,879
1,672,014,861,001
09
Increase in receivables
7,375,121,156
(29,080,567,898)
(21,705,446,742)
14,233,207,051
(14,233,207,051)
-
10
Increase in inventories
(200,616,510,016)
(426,566,326,840)
(627,182,836,856)
14,233,207,051
(14,233,207,051)
-
17
Other cash outflows
(16,901,659,736)
(28,673,145,559)
(45,574,805,295)
(89,466,539,837)
(263,622,580,167)
(353,089,120,004)
(35,309,851,585)
(434,805,822,403)
(470,115,673,988)
150
V. Other short-term assets
155
1. Other short term assets (*)
200
B - NON-CURRENT ASSETS
-
13,588,573,996
13,588,573,996
20
Net cash used in operating activities
210
I. Long-term receivables
-
13,588,573,996
13,588,573,996
50
Net decrease in cash
-
13,588,573,996
13,588,573,996
60
Cash at the beginning of the year
507,821,745,184
-
507,821,745,184
70
Cash at the end of the year
472,511,893,599
(434,805,822,403)
37,706,071,196
216
1. Other long-term receivables
250
I. Long-term financial investments
460,716,988,400
(65,000,000)
460,651,988,400
253
1. Equity invesments in other entities
460,716,988,400
(65,000,000)
460,651,988,400
RESOURCES
300
C - LIABILITIES
1,269,998,653,409
-
1,268,815,128,041
310
I. Current liabilities
1,131,686,128,041
-
1,131,686,128,041
1,131,686,128,041
(1,131,686,128,041)
-
-
1,131,686,128,041
1,131,686,128,041
138,312,525,368
-
137,129,000,000
137,129,000,000
(137,129,000,000)
-
-
137,129,000,000
137,129,000,000
311
1. Short-term loans and liabilities (*)
320
2. Short-term loans
330
II. Long-term liabilities
337
1. Long-term loans and liabilities (*)
338
2. Long-term loans (*)
400
D - EQUITY
232,805,050,783
-
232,805,050,783
410
I. Owners’ equity
232,805,050,783
-
232,805,050,783
66,734,153,783
(66,734,153,783)
-
166,070,897,000
66,734,153,783
232,805,050,783
415
1. Financial reserve fund
418
2. Investment and development fund
(*) These items were disclosed in the consolidated financial statements for the year ended 31 December 2014 under different codes
from those in the consolidated financial statements for the year ended 31 December 2015.
Duong Quang Hai
Preparer
Dang Thi Lai
Chief Accountant
Cao Thi Ngoc Dung
General Director
01 March 2016
Financial statements 105 SIGNIFICANT
ACHIEVEMENTS
BEFORE 2015
1. National Gold Quality Award 2011
2. National Brand 2009 – 2011 – 2013
3. High Quality Vietnamese Goods
Award for 19 consecutive years
4. Asia Pacific Quality Award 2011
5. Top 50 companies with the most
effective business in Vietnam
6. Top 500 leading Retailers in Asia
Pacific and Top 3 leading Retailers
in Vietnam 2003 – 2012
7. The only jewelry company of
Vietnam ranked the 16th in top 500
largest jewelry production and trading
companies in the world announced
by Plimsoll (UK) in 2012.
8. Powerful Brand Award
9. The best Vietnamese Brand Award
in 2007
Asia Pacific Quality Award
10.Vietnam Gold Star Award in 2003
– 2013
11.PNJ was established the Vietnam
record “The first company
investing in the most modern and
big jewelry production technology
in Vietnam – 2007
12.The Third Class Independence
Medal (12 June 2008)
13.The First, Second and Third Class
Labor Medals, (2003, 2000 and
1995)
14.The Government’s Emulation Flag
(2002)
15.Emulation Flag for 20 years of
construction and development
(1988 – 2008)
16.Emulation Flag “Powerful Grassroots
Level Party Organization” (1995 –
1999)
17.The Third Class Labor Medal
Top 500 leading Retailers in
Asia Pacific
18.Emulation Flag “Powerful and
Excellent Grassroots Level Union”
(2003)
19.Powerful Grassroots Level Union
(1997 – 2001)
20.The Annual Report of 2012 was
evaluated as the TOP 50 best annual
reports (7/2012)
21.Certificate of Merit from the Prime
Minister on the occasion of 25 years
of establishment (09/2013)
YEAR 2015
6. The award “Employer of the Year”
1. High Quality Vietnamese Goods
- JNA Awards 2015 offered by
Jewellery News Asia magazine (20
September 2015)
2. Top 100 Vietnam best workplaces
7. Top 500 leading Retailers in Asia
Award 2015 (1/2015)
in 2014 held by the professional
community network of management
level Anphabe.com coordinated with
Nielsen market research company
(3/2015)
3. Human Resources Director of PNJ
about the biggest golden bandanna
in Vietnam (10 November 2013)
– Nguyen Thi Ngoc Minh – won
the Human Resources Director
Award in 2015 announced by
Towers Watson Vietnam Consulting
Company (3/2015)
23.PNJ sponsored national gifts and
4. Top 50 best listed companies in
22.PNJ was established the record
exclusive Jewelry for Vietnamese
representative to attend the Miss
Universe 2013
24.Certificate of Merit from Minister
of Science & Technology about
the application of innovation in the
production and business activities.
National Brand
Vietnam 2015 announced by
Forbes magazine (17 August 2015)
Pacific 2015 selected by Retail Asia
Publishing (9/2015).
8. Top 50 greatest value Brands in
Vietnam 2015 announced by Brand
Finance (UK): PNJ was ranked the
20th and the only jewelry company
in this list (10/2015).
9. Phoenix Dress made of PNJ gold was
recorded by Vietnam Record Center
as “Vietnamese dress with biggest
gold Phoenix icon” and was named
to the World Unique Collection
recognized by the World Unique
Creativity Academy (11/2015)
5. The Jewelry collection “Spring of
Peace” won at the regional selection
round of Creative Asean Design
Competition 2015
Excellent Leader
Top 100 Vietnam best
workplaces
LEADERSHIP AWARD
1. Ms. Cao Thi Ngoc Dung – General
Director of PNJ was awarded the
First Class Labor Medal
Director of PNJ was the only
female entrepreneur in Top 5
entrepreneurs awarded the Ernst
& Young International Award, EY
Entrepreneur of the Year.
Director of PNJ received the
50 pioneers award selected by
VNExpress (16 October 2012)
Director of PNJ was one of 10 most
successful female entrepreneurs in
2013 selected by Forbes Magazine
Director of PNJ received the 50
company directors award selected
by Nhip Cau Dau Tu
Top 50 best listed companies
Employer of the Year
Award – JNA Awards
2015
Typical achievements 107
SIGNIFICANT ACHIEVEMENTS
THE EFFORTS IS LIKE
THE UNDERGROUND
WATER SOURCE,
SILENTLY MAKING
THE EARTH’S SURFACE
LUXURIANT
THE JOURNEY OF
FIRM STEPS TO
CONQUER THE TOP
Reached the milestone of 194 elegant stores in 45 provinces
and cities nationwide; honored in the Top 100 Vietnam
best workplaces by Anphabe and Nielsen; the only jewelry
company representing Vietnam to receive the prestigious award
“Employer of the Year” awarded by JNA Awards 2015 are the
significant milestones of PNJ in 2015.
With the exploit of spectacularly conquering the new pinnacles,
PNJ is rising to join in the list of big companies of the Continent
specializing in jewelry manufacturing and trading.
PNJ OWNS THE LARGEST JEWELRY
DISTRIBUTION SYSTEM IN VIETNAM
2015 marked the strong development of the retail distribution
system of PNJ, with the opening and putting into operation of
48 new stores, reached 140% of the plan. By the end of 2015,
PNJ had 194 stores with effective business in 45 provinces and
Cities nationwide, with the united identity image, luxury sales
space, creating the comfort to customers.
foundation of such house. During the time of 27 years of
development, PNJ builds a solid and strong foundation for
the PNJ house to be firm, beautiful and it sustainably develops
through the challenge and time. This is the premise for forming
the soft structure “general house” – considered as the unique
cultural identity of PNJ – always promotes PNJ team to be
ready to devote for the company, contributing to create the
position, sustainable strength of PNJ in the context of fierce
competition in the market.
Furthermore, PNJ is always the place inspiring the creative
ideas with breakthrough characteristics. This is explained
from the company’s characteristics that pursue the mission of
honoring the people’s beauty. The cultural environment is full
of humanity aiming to human, open, friendly and harmonious
between the benefits. This is a flourish land sprouting,
blooming the great achievements. The professional and
inspiring working environment for all members has created
a launching platform for the success and spectacular growth
of PNJ during the last nearly three decades. At the ceremony
honoring the “Top 100 Vietnam best workplaces in 2014”
held by Anphabe and Nielsen on 05 March 2015, PNJ was
honored to be ranked in the top 20 Vietnamese companies in
this list and ranked the 41st in the top 100 selected companies.
PNJ’s greatest Assets is the corporate culture, the strength
of PNJ Warrior team
With the development speed of convenient product and service
distribution system as present, PNJ shall continue to maximize the
route for retail network expansion in 2016. The Jewelry Centers
with PNJ brand located at favorable positions in the crowded
fashion centers of big cities of the country is the affirmation of the
leading jewelry company position in Vietnam.
HUMAN RESOURCES IS THE CORE
OF STRENGTH
“PNJ’s greatest assets is the corporate culture, the strength of
PNJ warrior team”. It is this philosophy that connects over
3,500 people at PNJ and forms a firm bloc. With a team of
professional and skillful human resources, the intelligent
strategic planning policies in the restructure stage, it actually
creates a new momentum to turn the human resources into a
“golden resource” at PNJ.
If PNJ is considered as a house, the human resources is the
The journey of firm steps to conquer the top 111
THE DOMESTIC AND INTERNATIONAL
PRIZES CREATING MORE STRENGTH
TO THE BRAND
In 2015, the convincing shine of PNJ in the market put PNJ brand
to a new pinnacle and contributed to honor the Vietnamese
jewelry industry on the way entering the world market.
At the honoring ceremony solemnly held at Regal Airport
Hotel, Hong Kong on 20 September 2015, PNJ was the
first jewelry company of Vietnam excellently received the
“Employer of the Year” award of JNA Awards 2015 – it is
compared as “Oscar award of the Asian jewelry industry”. It
was held and selected by JNA (Jewellery News Asia) through
an independent, explicit and close board of judges, the
“Employer of the Year” award was the most important category
of JNA Awards given to companies with comprehensively
outstanding achievements from production, retail to activities
aiming at developing human and society’s responsibility.
In October, Brand Finance (UK) announced a list of
Vietnam top 502 brands in 2015. In that list, PNJ was
ranked the 20th, it was the only jewelry company in this
list. At another remarkable event in August 2015, PNJ was
honored by Vietnam Forbes magazine the Top 50 listed
companies of Vietnam in 2015.
Apart from the awards about the brand, PNJ’s strength is also
shown by excellent processing ability recognized by the domestic
and foreign markets. The most prominent event is the jewelry
collection with the theme of “Spring of Peace” of PNJ won at the
regional selection round of Creative Asean Design Competition
2015 held by the EU-ASEAN Project on the Protection of
Intellectual Property Rights (ECAP III) in September 2015.
Thanks to the skillful jewelers of PNJ, the gems and pearls are
blown into the Spring of Peace jewelry masterpiece, conveying
an optimistic message about a better world.
JNA award is really a valuable recognition for
PNJ’s efforts during the time of realizing the
vision of becoming the leading jewelry processor
and retailer in Asia market.
The journey of firm steps to conquer the top 113
THE STRENGTH OF
SHARING
The tireless activities for the community at PNJ
show that PNJ not only pursues the mission
of honoring the human’s beauty but also
contributes to make life better and better. The
houses donated by PNJ to people who seem to
lose the opportunity of owning a house is like a
magic journey of the fairy tale in real life.
The strength of sharing 115
PNJ houses donated to people seemed to be that
they almost lose the opportunity “to live and
work in peace and contentment” is like a magic
journey of the real fairy tale of daily life.
A 10-YEAR JOURNEY OF PNJ CHARITY
FUND
Together with the objective for business development and
improvement of the employee living standard, PNJ positively
implements the activities of the society and community.
These activities not only show the social responsibility of
the Company but also evoke the spirit for community, the
compassion of all members of PNJ house. With the business
philosophy of “the community’s benefits and customers’
benefits are one of the company’s benefits”, during 27 years of
operation, PNJ has always excellently shown the company’s
responsibility to the society. On that foundation, established
since 2005, PNJ Charity Fund has been effectively managed.
To 2015, after 10 years of operation, PNJ Charity Fund
contributed to the society over 25 billion VND, to jointly
improve the lives of the poor and encourage the future talents
for the country.
The diversified activities of PNJ Charity Fund have been
deployed in many big programs with practical social meaning
such as house donation to the poor; scholarships to poor
students; offering the poor illness treatment and gifts;
contribution to the Association for Poor Patients; financing
the crafts villages, helping the poor to do business; relieving
the people suffering from natural disasters; building concrete
bridges in the countryside and the rural areas; supporting
Truong Sa – Hoang Sa fishermen ...
PNJ HOUSE: FAIRY TALE OF DAILY LIFE
Only during the last 4 months of 2015, 25 PNJ houses were
built nationwide, bringing great happiness about a peaceful
place for the poor in Ho Chi Minh City, the Central Highlands,
the West, the South East, and the North.
The journey of PNJ houses shall continue in 2016 with at
least 50 new houses built to donate to families with difficult
circumstances across the country. To be able to build these
houses, PNJ Charity Fund appeals to the contribution of
employees as well as partners and customers for “Pink Brick”
program with the message “With every 1,000 VND, you
contribute a brick to build the houses for the poor nationwide”,
the events, birthdays or Tet holidays celebration at PNJ
become more meaningful when all gifts are now contributed
to the “Pink Brick” .
The houses donated by PNJ to people who seem to lose the
opportunity of owning a house is like a magic journey of the
fairy tale in real life.
The strength of sharing 117
DISTRIBUTION
CHANNEL
HO CHI MINH CITY
District 1: PNJ Jewelry Center, 174 Le Thanh Ton Tel: (08) 382 48276
PNJ Jewelry Center, 292 Hai Ba Trung
Tel: (08) 382 09457
Vincom Dong Khoi (1st Floor) Tel: (08) 399 39123
Parkson Saigon Tourist, 35Bis–45 Le Thanh Ton Tel: (08) 352 10299
Nowzone, Ground Floor, 235 Nguyen Van Cu
Tel: (08) 393 81486
Co.opmart, 189C Cong Quynh Tel: (08) 392 55020
Phu Nhuan District:
PNJ Jewelry Center, 52A–52B Nguyen Van Troi Tel: (08) 384 43839
PNJ Jewelry Center, 159 Phan Dang Luu Tel: (08) 384 43636
Co.opmart, 571 Nguyen Kiem Tel: (08) 399 72467
Big C Hoang Van Thu, 202B Hoang Van Thu Tel: (08) 384 75176
District 2: Parkson Cantavil, Hanoi Highway Tel: (08) 374 02104
Vincom Thao Dien Tel: (08) 389 89889
District 3: PNJ Jewelry Center,
666 Nguyen Dinh Chieu Tel: (08) 383 09023
PNJ Jewelry Center, 123 CMT8 Tel: (08) 352 62825
Co.opmart, 168 Nguyen Dinh Chieu Tel: (08) 393 02382
District 5: PNJ Jewelry Center, 7 An Duong Vuong Tel: (08) 383 02957
Parkson 126 Hung Vuong Tel: (08) 222 20443
District 6: PNJ Jewelry Center, 255A – 255B
Hau Giang Tel: (08) 396 95630
PNJ Jewelry Center, Ba Hom Tel: (08) 375 59240
District 7: Lotte Mart, 469 Nguyen Huu Tho Tel: (08) 377 19600
Vivo City Shopping Center, 01–K2A SC Vivo City Tel: (08) 377 60261
District 9: Co.opmart, Hanoi Highway,
191 Quang Trung Tel: (08) 373 09606
District 10: Big C Mien Dong, 138A To Hien Thanh Tel: (08) 386 83698
District 11: PNJ Jewelry Center, 71 Ong Ich Khiem Tel: (08) 396 30151
Tan Binh District: PNJ Jewelry Center,
300 Hoang Van Thu Tel: (08) 381 21469
PNJ Jewelry Center, 510 Ly Thuong Kiet Tel: (08) 397 18967
PNJ Jewelry Center, 230B Le Van Sy Tel: (08) 399 13772
PNJ Jewelry Center, 923–925 CMT8 Tel: (08) 397 78232
PNJ Jewelry Center, 304 Truong Chinh Tel: (08) 384 25019
PNJ Jewelry Center, 142 Au Co Tel: (08) 997 44619
TTKH PNJ, 3/27 Quang Trung
Tel: (08) 3710 2208
Tan Son Nhat International Airport, International Terminal
Tan Phu District: PNJ Jewelry Center,
237 Nguyen Son Tel: (08) 397 22375
PNJ Jewelry Center, 206–208 Tan Huong
Tel: (08) 355 91119
Big C Phu Thanh, 53 Nguyen Son Tel: (08) 222 64463
Big C Pandora, 1/1 Truong Chinh Tel: (08) 543 86566
AEON Shopping Center, No. 30 Bo Bao Tan Thang Tel: (08) 384 70588
Binh Tan District: Big C An Lac Tel: (08) 375 62523
Go Vap District: PNJ Jewelry Center,
362A Nguyen Van Nghi Tel: (08) 389 54597
PNJ Jewelry Center, 21/3 Quang Trung Tel: (08) 358 94324
PNJ Jewelry Center, 403 Thong Nhat
Tel: (08) 389 48530
Vincom, 190 Quang Trung Tel: (08) 389 41417
Vincom Go Vap, 12 Phan Van Tri, Ward 7
Binh Thanh District: PNJ Jewelry Center,
127A Dinh Tien Hoang Tel: (08) 384 18456
PNJ Jewelry Center, 60 Xo Viet Nghe Tinh Tel: (08) 351 44002
Pearl Plaza Shopping Center,
561A Dien Bien Phu, Ward 25 Tel: (08) 389 83848
Thu Duc District: PNJ Jewelry Center,
141 Vo Van Ngan Tel: (08) 372 25494
Co.opXtra, Highway 1A, Linh Trung ward Tel: (08) 372 45550
Vincom Thu Duc, 216 Vo Van Ngan Tel: (08) 372 23409
Hoc Mon: PNJ Jewelry Center, 143/6 Nguyen Ai Thu Tel: (08) 371 80336
PNJ Jewelry Center, 3/27 Quang Trung Tel: (08) 371 02208
Cu Chi: Co.opmart Cu Chi, 357 Highway 22 Tel: (08) 379 02362
HANOI AND THE NORTH
Hai Ba Trung District: PNJ Jewelry Center,
6A Tran Nhan Tong Tel: (04) 627 80072
Vincom, 191 Ba Trieu Tel: (04) 222 00204
Hoan Kiem District: PNJ Jewelry Center, 83 Hang Gai Tel: (04) 392 89270
Cau Giay District: PNJ Jewelry Center, 334 Cau Giay Tel: (04) 379 39360
Big C Thang Long, 222 Tran Duy Hung Tel: (04) 378 31511
Dong Da District: PNJ Jewelry Center, 129 Chua Boc Tel: (04) 356 42024
PNJ Jewelry Center, 243 Xa Dan, O Cho Dua ward Tel: (04) 356 42024
Thanh Xuan District: Vincom, 172 Nguyen Trai Tel: (04) 666 45830
Long Bien District: Aeon Long Bien,
No. 8 Co Linh street
Tel: (04) 629 55811
Ba Dinh District: Vincom, 54A Nguyen Chi Thanh Tel: (04) 629 55811
HAI PHONG
18A Lach Tray, Hai Phong Tel: (031) 383 3328
Parkson – Thuy Duong Plaza Tel: (031) 372 2898
Big C Hai Phong, 1st floor, Le Hong Phong Tel: (031) 372 2980
___________________________________________________________________________________
THE CENTRAL
HUE
PNJ Jewelry Center, 10 Hung Vuong Tel: (054) 384 7588
Co.opmart Hue, 06 Tran Hung Dao, Phu Hoa ward Tel: (054) 357 2025
DA NANG
PNJ Jewelry Center, 70–72 Tran Phu Tel: (0511) 381 8667
PNJ Jewelry Center, 359 Phan Chu Trinh Tel: (0511) 366 4588
PNJ Jewelry Center, 691 Ton Duc Thang,
Lien Chieu District Tel: (0511) 361 8588
Big C Da Nang, 225 Hung Vuong Tel: (0511) 369 2036
Vincom Da Nang Tel: (0511) 398 1588
Da Nang International Airport
QUANG NAM
PNJ Jewelry Center, 633 Hai Ba Trung Tel: (0510) 391 9588
PNJ Jewelry Center, 461 Phan Chu Trinh, Tam Ky Tel: (0510) 391 9588
QUANG NGAI:
QUY NHON:
334–336 Tran Hung Dao Tel: (056) 381 2590
Big C, Green Urban Area, Vung Chua Tel: (056) 364 6588
Big C Bien Hoa, Long Binh Tan ward Vincom Bien Hoa, 1096 Pham Van Thuan BINH DUONG
PNJ Jewelry Center, 3A Hung Vuong PNJ Jewelry Center, 459 Binh Duong Avenue AEON Binh Duong, Highway 13, Vinh Phu BINH PHUOC
PNJ Jewelry Center, 874 Phu Rieng Do BA RIA
Co.opmart Ba Ria, Nguyen Huu Tho VUNG TAU
PNJ Jewelry Center, 380 Le Hong Phong Co.opmart Vung Tau, 36 Nguyen Thai Hoc TAY NINH
PNJ Jewelry Center, 877CMT8 Co.opmart Tay Ninh, 576 CMT8,
ward 3, Tay Ninh City
Tel: (061) 393 3177
Tel: (061) 368 0034
Tel: (0650) 385 5560
Tel: (0650) 629 0266
Tel: (0650) 652 2608
Tel: (0651) 386 5665
Tel: (064) 373 9377
Tel: (064) 385 5000
Tel: (064) 357 6234
Tel: (066) 363 1838
Tel: (066) 392 2247
___________________________________________________________________________________
CENTRAL HIGHLANDS & COASTAL AREAS
NHA TRANG
PNJ Jewelry Center, 19A Quang Trung BINH THUAN
PNJ Jewelry Center, 40 Nguyen Thi Minh Khai Co.opmart, 01 Nguyen Tat Thanh, Phan Thiet City LAM DONG
Co.opmart, Thap Nuoc, Tran Phu PNJ Jewelry Center, 08 Hoa Binh zone, Da Lat City DAK LAK
PNJ Jewelry Center, C1–C2 Dien Bien Phu,
Buôn Ma Thuot Co.opmart, BM Thuot, 71 Nguyen Tat Thanh GIA LAI
PNJ Jewelry Center, 14 Hoang Van Thu, Pleiku City Co.opmart Gia Lai, 21 CMT8 DAK NONG
Co.opmart street 23/3 Nghia Thanh ward
Tel: (058) 382 5889
Tel: (062) 653 5123
Tel: (062) 653 5123
Tel: (063) 375 7979
Tel: (063) 351 0863
Tel: (0500) 356 8989
Tel: (0500) 395 8997
Tel: (059) 382 5888
Tel: (059) 222 2477
Sense City Can Tho, 01 Hoa Binh Avenue PNJ Jewelry Center, 178 Tran Hung Dao,
An Nghiep ward LONG AN
PNJ Jewelry Center, 51 Truong Dinh Co.opmart Long An, Tan An City
TIEN GIANG
Co.opmart, 5 Ap Bac, My Tho City
PNJ Jewelry Center, No. 188 Ap Bac, My Tho City BEN TRE
Co.opmart, 26A Tran Quoc Tuan PNJ Jewelry Center,
58–62C Dong Khoi Avenue, Ben Tre T22 – Ground Floor of Sense City,
26 Tran Quoc Tuan AN GIANG
PNJ Jewelry Center, 63 Hai Ba Trung Co.opmart Long Xuyen, 12 Nguyen Hue L1–05B, Ground Floor Vincom Long Xuyen KIEN GIANG
PNJ Jewelry Center, 38 Hoang Hoa Tham VINH LONG
PNJ Jewelry Center, 1F Hoang Thai Hieu Co.opmart Vinh Long, 26 street 3/2 SOC TRANG
Counter 5, Co.opmart Soc Trang BAC LIEU
PNJ Jewelry Center, 165–167 Tran Phu DONG THAP
PNJ Jewelry Center, 86 Nguyen Hue PNJ Jewelry Center, 124 Hung Vuong,
Hamlet 1, Ward 2 CA MAU
PNJ Jewelry Center, 4A Hung Vuong Tel: (0710) 381 5305
Tel: (0710) 381 9875
Tel: (0723) 550 330
Tel: (0723) 526 171
Tel: (073) 386 7881
Tel: (073) 385 3703
Tel: (075) 355 4300
Tel: (075) 356 1890
Tel: (075) 355 4300
Tel: (076) 394 4168
Tel: (076) 394 0018
Tel: (076) 629 5386
Tel: (077) 396 2824
Tel: (070) 383 5111
Tel: (070) 383 6729
Tel: (079) 364 0979
Tel: (0781) 396 9995
Tel: (0673) 650 650
Tel: (0673) 688 866
Tel: (0780) 365 1666
___________________________________________________________________________________
Tel: (0501) 355 8889
___________________________________________________________________________________
By the end of 2015, the whole system had 194 stores including 123 gold
jewelry shops (standalone and sharing stores), 65 standalone silver jewelry
stores, 4 Cao Fine Jewellery stores
THE SOUTHWEST
CAN THO
PNJ Jewelry Center, 46 Ngo Quyen Tel: (0710) 381 1783
___________________________________________________________________________________
THE SOUTH EAST
BIEN HOA
PNJ Jewelry Center, 97 street 30/4 Tel: (061) 391 6819
PNJ Jewelry Center, 437 Pham Van Thuan, Tam Hiep Tel: (061) 381 2848
Distribution channel 119
Designed by Brandlab 03/2016
PNJ JEWELRY DISTRIBUTION CHANNEL
vinh phuc
ha noi
quang ninh
hai duong
hai phong
nam dinh
thanh hoa
vinh
ha tinh
binh phuoc
bien hoa
binh duong
tay ninh
ho chi minh
tien giang
long an
dong thap
ben tre
an giang
vinh long
can tho
soc trang
kien giang
bac lieu
ca mau
hue
da nang
quang nam
quang ngai
gia lai
binh đinh
dak nong
dak lak
nha trang
da lat
bao loc
phan thiet
vung tau
ba ria
tra vinh
Come to mountain to select stone
for gold testing, right testing
how much also buy
Folk-Song
PHU NHUAN JEWELRY JOINT STOCK COMPANY (PNJ)
170E Phan Dang Luu Street, Ward 3, Phu Nhuan District, HCMC
Phone: 08 3995 1703 - Fax: 08 3995 1702
www.pnj.com.vn

true gold fears no fire

Transcription

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