TÔN VINH GIAÙ TRÒ ÑÍCH THÖÏC
SEEING THE QUALITY IN YOU
BÁO CÁO THƯỜNG NIÊN 2013 ANNUAL REPORT 2013 CONTENTS
5 VISION- MISSION - CORE VALUES 44 ORGANIZATION AND MANAGMENT STRUCTURE 46 PNJ’s organization chart 48 Board of directors CHAIRWOMAN'S MESSAGE 6 50 Board of management 52 Board of supervision 10 COMPANY INFORMATION 54 Corporate governance situation 12 MILESTONES OF ESTABLISHMENT & DEVELOPMENT 58 BRANDS PNJGOLD 16 CORPORATE REPORT 60 61 CAO FINE JEWELLERY 18 BOARD OF DIRECTOR'S REPORT 62 PNJSILVER 19 2013 Operation overview 63 JEMMA JEWELRY 20 Strategic orientation of the board of directors for the company operation in 2014
22 BOARD OF SUPERVISION'S REPORT 64 CORPORATE CULTURE 22 2013 Supervising report 66 Common home: PNJ culture 24 2014 Operational plan of board of supervision's report 68 2013 - PNJ’s marks on community 26 BOARD OF MANAGEMENT'S REPORT 72 Merits & Award 27 2013 Business performance 33 Subsidiaries performance 74 FINANCIAL STATEMENTS 2013 34 5 Key missions operating performance in 2013 36 Risk management 38 2013 Investor relations activities 122 PNJ DISTRIBUTION NETWORK 39 Conclusion
40 KEY ACTIVITIES OF HUMAN RESOURCES 2013
Cover pages: Golden lotus picture, designed & created by PNJ and sponsored as national gift for Note: 1 Board of Director : BOD 2 Board of Management : BOM 3 Board of Supervision : BOS Vietnamese candidate in Miss Universe 2013 VISION A leading jewelry manufacturer and retailer in Asia, maintaining leading position in every single market segment that PNJ has targeted in Vietnam.
MISSION PNJ brings customer pride with elegant, outstanding quality jewelry products.
CORE VALUES 1 HONESTY Honesty is the leading ethical standard in business and in life that every individual or organization aims to Legal profit and business ethics are the base for every activities Building credibility and transparency to earn trust Consistently fighting against all dishonest actions
2 QUALITY Quality is a solid basis to ensure survival and a measure of every individual or organization ‘s value Always guaranteeing the materials’ quality to make high quality products Every member commits to accomplish assigned tasks with the best quality and not to deliver substandard products to anyone else.
3 RESPONSIBILITY Taking responsibility as a motivation, a driving force for every activities. Put customers’ and social benefits into company’s. Every individual commits to live responsibly with himself, his family, the company and the community Carrying out excellently every task with voluntary, active, creative and dedicated spirit. Always pioneering in pursuing and realizing difficult tasks with the spirit to win
4 INNOVATION Innovation is the foundation of everlasting development in a company Do not be complacent with achievements. Be open, willing to learn and apply new knowledge, experience and skills. Constantly improving to optimize benefit for the company.
5 CREATIVITY Create to make significant differences and competitive advantages Meeting customers’ expectation is a base to orient creativity With responsible spirit and passion, every member of the company and the company itself commit to create continuously, offer breakthrough solutions, produce outstanding products and services VISION MISSION CORE VALUES ANNUAL REPORT 2013
CHAIRWOMAN’S MESSAGE
Dear Valued Shareholders,
The world’s economy in 2013 had been in an core business, building modern management unstable and complicated vulnerability. Even standards, attempting to lower production costs, though there were some positive signs showing improving employees’ performance, building and that economic activities had been recovering after implementing efficiently risk control mechanism. the recession but the global economic outlook Last year, the company had developed and carried was generally not stable, especially for developed out effectively solutions to maintain and develop a economies. Those disadvantaged factors from the stable and sustainable business operation, striving world market had continued to affect our country to fulfill business targets in 2013 which approved socio – economy. 2013’s gross domestic product by Shareholder Committee. (GDP) was estimated increasing by 5.42% comparing with 2012’s. Although this year’s 1. Finalizing and operating the suitable and growth rate was lower than the target of 5.5%, it effective human resource management system was higher than 2012’s growth rate of 5.25% and showing some signs of recovery. 2. Upgrading the information technology system to effectively serve the business operation and management The gold market had significant fluctuation, 2013’s 3. Improving and operating internal processing domestic gold price decreased by 21.7%, although system consistent with new management there remained gap, the domestic price had been process and controlling effectiveness aligned with international price. According to the latest announced report of the World Gold 4. Supplying fully requests of business Council, Vietnam was ranked 7th in the world partners with reasonable competitive cost. for gold demand in 2013. The government's new 5. Strongly innovating distribution system regulations on market management, measuring management in gold business, and gold jewelery quality had shown positive signs. A transparent From the very core and oriented operations as market would create more advantage for above, although annual target has been revised prestigious long-standing brands which PNJ is the due to reduction in financial income and gold leader now. bar revenue, thanks to great effort from Board of Management and entire employees, jewelry business – core business – had significant growth In the situation of both advantages and even in bad market situation. Besides, cutting cost challenges, the company’s core operations had solution and reducing selling price have improved been focusing on the organizational restructuring, business performance and future prospect.
Mrs. CAO THI NGOC DUNG Chairwoman - Director 6 SEEING THE QUALITY IN YOU
CHAIRWOMAN’S MESSAGE
Final result was: consolidated revenue was VND In progress of building a Vietnamese gold jewelry 8,974 billion, parent company's revenue was brand, PNJ has made a strong foothold in the VND 7,604 billion, reached planned target; consumer's mind and been ready to reach out consolidated NPAT was VND 169 billion, reached to the international market in the near future. It planned target. NPAT per equity was 12.8%, is the result of relentless work and creativity of ensuring dividend payment as approved. generations of PNJ’s employees and the support of valuable customers, shareholders and partners for PNJ. We are confident and committed to Entering 2014, the condition of macroeconomic attempt and successfully implement planned and industry growth are forecasted to continue business objectives to deserve the trust that to be difficult, the market’s purchasing power valued shareholders and customers have been – especially of luxury goods industry, has not and will continue to give PNJ. been able to thrive. In such conditions, PNJ continues to increase intrinsic value by increasing profitability in each business operation field. Each On behalf of PNJ’s Board of Directors, I am unit cautiously develops its own action programs grateful to the authorities, shareholders, partners, and business plan, reviews the prebuilt strategic customers and all staffs and workers of the objectives of the 2012 – 2022 period to keep company for supporting and companioning with, abreast of the practical situation. We believe attempting to create success for PNJ and we look that with the strategy to focus on core activities, forward to continue to receive the support and improving operational efficiency to sustainably cooperation in the coming time. Best wishes for develop in the business, controlling cost strictly, valued shareholders, customers and partners a always preparing to meet diverse needs of the 2014 year of health, wellbeing, prosperity and market and adding value to customers will be happiness. a solid foundation to help us achieve the goals set out in increasing revenue, expanding market share, increasing employees’ earning, increasing CHAIRWOMAN profit, increasing corporate value and dividend to Signed shareholders. CAO THI NGOC DUNG
9 COMPANY INFORMATION
Name of company : NHUAN JEWELRY JOINT STOCK COMPANY Abbreviation : PNJ Address : 170E Phan Dang Luu Street, Ward 3, Phu Nhuan District, HCMC Telephone : 08.3.9951703 - Fax: 08.3.9951702 Email : [email protected] Website : www.pnj.com.vn
Business : 0300521758 Registration License
Type of business : Joint stock company
LEGAL : Ms. Cao Thi Ngoc Dung – Position: Chairman, Chief Executive Officer REPRESENTATIVE
CHARTER CAPITAL : VND 755,970,355,000 (seven fifty five billion, nine seventy million, three hundred fifty five thousand)
Manufacturing and trading gold, silver, precious stones, accessories and souvenirs BUSINESS LINES Trading watches and gold bar Testing diamond, gemstone and precious metals House leasing base on Real Estate Business Law ANNUAL REPORT 2013 SEEING THE QUALITY IN YOU
1988 - 1992 1993 - 2000 2001 - 2004 ESTABLISHMENT AND IDENTIFYING QUICKLY EXPANDING THE BOOSTING BRAND-BUILDING AND DEVELOPMENT STRATEGY NETWORK AND BUSINESS FIELD IMPLEMENTING EQUITIZATION
MILESTONES OF ESTABLISHMENT & DEVELOPMENT
On 28/04/1988, Phu Nhuan Jewelry Sales In 1994, PNJ Hanoi branch was established, In 2001, PNJSilver brand name was officially Store was found, under the People's Committee opening the expanding system strategy in the launched to meet the needs of the young of Phu Nhuan District when the Vietnam jewelry provinces and large cities nationwide later as Da people who love jewelry along with continuously industry was still young, not yet developed, Nang branch (opened in 1998), Can Tho branch developing PNJ gold jewelry brand strongly with the market still had many limits… those were (opened 1999), PNJ distribution system had been many well-known marketing programs with the challenges that 20 founders of PNJ had to continuously expanded. auspice of the World Gold Council. pass. This phase was also a milestone in the work of On 01/02/2004: PNJ officially implemented In 1992, PNJ was officially named Phu Nhuan PNJ’s professional branding, PNJ jewelry began equalization, transformed from a public company Jewelry Company after two name changes to be exported. Only after several years from into Phu Nhuan Jewelry Joint Stock Company. from Phu Nhuan Jewelry Sales Store and Phu inception, PNJ jewelry brand had quickly Also during this time, PNJ was awarded the Top Nhuan Art Jewelry and Foreign Exchange dominated the market, been trusted by the 500 Leading Retailers in Asia - Pacific title and Company, as well as identified the development consumer and proved its prestige. With honors and received the 1st Rank Labor Medal. strategies to be a professional jewelry awards achieved: "High Quality Vietnamese Goods" manufacturer and trader. At this point, PNJ Title certification, 3rd Rank Labor Medal, 2nd also expanded its operations with the creation Rank Labor Medal … PNJ was also awarded of the Dong A Bank with 40% contributed DNV’s Certification of System Quality equity. Management according to ISO standards.
12 13 ANNUAL REPORT 2013 SEEING THE QUALITY IN YOU
2005 - 2008 2009 - 2013 BRAND RE-LAUNCH AND DEVELOPING LISTING STOCK, RESTRUCTURING HIGH CLASS BRAND NAME AND STRIVING TO SUSTANABLY DEVELOP
MILESTONES OF ESTABLISHMENT & DEVELOPMENT
This is a stage of strong development on all 3/2009, PNJ stock was officially listed on HOSE, largest Center of jewelry, diamonds and watches aspects of PNJ, especially in the development of increased its charter capital to 400 billion VND. on the system at 52A - 52B Nguyen Van Troi, Phu new brands and products, marked by the PNJSilver 8/2009, PNJ established CAO Fashion Limited Nhuan District, Ho Chi Minh city, which is also the new image re-launch event. CAO Fine Jewellery Company and added watch business with headquarters of PNJ - the first gold and silver store brand name was officially born. PNJ was the world-famous brands in PNJ system. PNJ became established nearly 25 years ago and considered one crown and jewels sponsor for the Miss Universe the jewelry sponsor for the Miss Earth 2010 held of the the largest diamond and jewelry center in 2008 held in Vietnam. And on 3/4/2008, PNJ in Vietnam. Vietnam market. officially announced the new logo change to celebrate 20 years of establishment and 18/10/2012, PNJ inaugurated PNJ Jewelry Factory 2013 marked a year of important events in PNJ development with a professional, more modern after nearly 18 months of construction. With a total brand development strategy. On 10/09/2013, image, worthy for a new way. investment of 120 billion VND, production capacity PNJSilver officially repositioned brand name, of over 4 million products a year, this factory was launched new brand identity system, opened up a PNJ had become one of the 200 largest rated as one of the biggest jewelry manufacturing "Her world is shining" with a fashionable enterprises in Vietnam as announced by UNDP factory in Asia. p u r ple color and breakthroughs in product and brand and honored to receive the prestigious title development strategy. In parallel, PNJ gold jewelry awarded by the President: 3rd Rank Independence Besides, PNJ had continued to upgrade and expand brand announced new message "Seeing the Quality Medal. the distribution system, inaugurated new branches in You” for the purpose of honoring the “golden” and opened new Jewelry Centers in Kien Giang, values, the noble qualities of women in modern day Binh Duong, Bien Hoa, Ha Noi, and Da Nang, society on the platform inherits harmoniously with turned these centers into largest jewelers in the the traditional values of Vietnamese women. area. Especially, PNJ has officially inaugurated the
14 15 CORPORATE REPORTS ANNUAL REPORT 2013 SEEING THE QUALITY IN YOU
BOARD OF DIRECTORS' REPORT
I. 2013 OPERATION OVERVIEW
Key goals of the year have been implemented simultaneously in accordance with the proposed policy of the Board
1. DEVELOPING AND OPERATING HUMAN 4. MANUFACTURING MEETS FULLY THE RESOURCES MANAGEMENT SYSTEM NEEDS OF BUSINESS PARTNERS WITH SUITABLY AND EFFICIENTLY REASONABLE COMPETITIVE COST
To better use the available human resources To meet the needs and improve the quality of and attract more qualified employees, products with reasonable price, market researching, the human resources management system has identifying needs, developing product been changed all sided. Supplementing vacancies, development strategy, design along with restructuring current positions to suit new improving production processes management development model. …, were deployed synchronously. The company has continuously researched to find out new The training of cognitive change directed by processing methods as well as advanced the BOD has made a psychological stability in technologies in order to improve product quality. In the organization, especially for the assignment 2013, total production increased by 35%, labor and rotation of management positions which no productivity/employee increased by 3%, while longer fit procedures and requirements of the the loss ratio decreased to 60%. new management system. 5. COMPLETING PLANNED TARGETS 2. BUILDING AN INFORMATION TECHNOLOGY PLATFORM TO EFFECTIVELY SUPPORT BUSINESS After re-evaluation, finding that it is not necessary OPERATION to open many shops while the demand is weak. The BOD has decided to focus on improving Infrastructure and management software have the efficiency of existing stores. There are only been invested properly, adequately and promptly. 6 newly opened stores in this year but all the ERP system was successful set up for all modules, stores have reached expected revenue in the For PNJ, 2013 is a remarkable milestone, marks the 25 years of establishment and development made the management easier and more accurately. short time of operation journey with many proud achievements. Not only that, it is also the year of realization of many strategic changes, overcoming the difficult macroeconomic situation, step by step preparing for 3. DEVELOPING AND OPERATING AN Revenue and gross profit respectively reached a new stage of faster development. INTERNAL PROCESS SYSTEM EFFECTIVELY 98% and 92% planned targets. If the price declining factor due to gold price declining is At the beginning of the year, the BOD has forecasted 2013 would be a challenging year, To match the new management system, processes excluded, estimated operating revenue exceeded together with economic difficulties, this is the year when the company has had to focus on have been synchronously developed, focused 11% compared with the proposed plan. implementation strategic projects, turned potential strength into practical results. By the end of on business processes (purchase, sales, order, warranty), design and manufacturing processes. the year, total revenue has reached 7,604 billion VND, increased 18%, gross profit reached 600 The new process ensures information updating fully billion VND, increased 9% comparing with the same period. Earning before tax was 240 billion and promptly on the system. Relevant units can VND, reached annual target. easily monitor job progress and performance in order to achieve planned targets.
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BOARD OF DIRECTORS' REPORT FIRST, human resources is still the key factor to clients with love and passion. Through it all create the company’s success. In 2014, PNJ PNJ employees commit to bring customers has focused on “enhancing human resources a professional service style with all the passion, efficiency” via key measures: each of PNJ products is made with all the heart, guaranteed to make unique, refined products with II. STRATEGIC ORIENTATION OF THE BOARD OF - Finalizing organizational structure and assigning PNJ style, to bring pride to each customer as a gift tasks suitably with company operational functions PNJ dedicates to its loved ones DIRECTORS FOR THE COMPANY OPERATION IN 2014 to employee level THIRD, using effectively PNJ sales system by According to the Asian Development Prospects report (ADB), in 2014 global GDP is forecasted to - Boosting training, enhancing PNJ’s employees’ “strengthening current system, developing new grow by 3.6% and Vietnam's GDP will grow by 5.8 % and 6 % in 2015. There’s a chance the professional skills to create professional style and system” to ensure a homogeneous sales system Trans-Pacific Partnership (TPP) will be signed in 2014 as well as the Japanese investors tend to shift environment. nationwide. It also aims to bring the best comforts capital from China, India to ASEAN countries, these are favorable conditions for attracting FDI into for customers, ensuring serving maximum needs Vietnam in 2014. That will lead to the positive growth rate in 2014 due to an improvement in SECOND, customer is the focus of the growth. PNJ of customers, committing to be the most reliable aggregate demand. will “raising customers’ satisfaction to a new jewelry company for customers nationwide. level”, considering clients as companions, serving As reported by the World Gold Council, total gold demand in Vietnam has been still on the rise. Demand increasing is mainly due to the price decline (over 20 % in 2013), has stimulated gold jewelry purchasing and hoarding, market jewelry demand in 2014 is forecasted to grow by ~ 14 %. 2. GROWTH TARGET At the same time private sector consumption is expected to improve compared to 2013. This is a positive sign for the jewelry retail market in general and for PNJ in particular in 2014. With three key objectives in 2014 as above, PNJ orients to increasing revenue and minimizing cost in 2014 as follows:
3. DEVELOPMENT
To reach 2014 target which directed by medium and long-term strategic plan, the company need more PNJ with potentials of staff, brand on the market as well as a modern distribution system, will surely investment on key segments: achieve a high growth rate than the industry’s growth rate and striving for growth rates of 20%. How- ever, to reach that expectation, the Board of Directors and all the PNJ’s staff as well as employees have - Production: Investing VND 25 bil for new machine to expand production scale and apply new technology. to prepare as well as clearly define for specific action programs in 2014. PNJ realizes that in the changing economic situation, the sustainable development is still best choice. Training skill for workers and at least 150 new joiners. To do this, the company need to build a solid operational system of enthusiast employees, improve - Distribution Network: Investing VND 15bil, upgrading existed stores and opening 12 new stores. the management system more professionally and modernly, consistent with the market situation and customers must be the foundation for the company development. With the above opinions, PNJ has Purchasing 3 new cars for reaching more wholesales customers purpose. oriented actions in 2014 with the following focuses: - Information technology: Investing VND 3.6 bil for upgrading IT, website and E-commerce. 1. KEY GOALS improve the management system more professionally - Actively looking for divestment opportunities in low profitable investment, especially real estate. and modernly, consistent with the market situation PNJ realizes that in the changing economic and customers must be the foundation for the With clear orientation and commitment, BOD believe that 2014 would witness strong development, situation, the sustainable development is still best company development. With the above opinions, affirming PNJ’s sustainable growth while reaching higer target. That result would be more valuable in choice. To do this, the company need to build a PNJ has oriented actions in 2014 with the following this difficult period of Vietnam and Global Economy. solid operational system of enthusiast employees, focuses:
20 21 ANNUAL REPORT 2013 SEEING THE QUALITY IN YOU
BOARD OF SUPERVISION'S REPORT
I. 2013 SUPERVISING REPORT 2.2 PRODUCTION – SUPPLYING OPERATION 2.3 BUSINESS OPERATION Building and applying “Xman” production Business system is synced with the sales on every In 2013, the Board of Supervision has taken supervisory functions with operations within authorities software, well managing potential risks, production channel (export, corporate customer, wholesale, under the plan; output increasing 36% compared to 2012 retail). Constantly improving customer service combining with supplying operation have well quality. Changing the product displays, reducing the Maintaining oversight of the company financial state, the legality of the operation. Supervising the met the business system. inventory, controling and managing the capital cooperation between BOS and BOD, BOM’s members and shareholders. more efficiently. Starting to develop e-commercial Supervising the implementation and results of the AGM Resolutions, Resolutions and other decisions Cost-management has carried out well as channel. Adjusting retail prices in time to maintain and directives of the Board. Monitoring the implementation of other PNJ’s charters. planned. Success in reducing cost contributed the competitive advantages. The most prominence Performing other functions and duties prescribed by law and regulations of PNJ. significantly to reducing price, raising competitive is more and more efficient operation of wholesale advantage of products. channel. We report general results as follows: Continue to review and improve processes, In 2013, Thu Khoa Huan Tourism Sale Center competence of the management team along was put into operation but still didn’t reach the 1. THE BOARD OF DIRECTORS’ OPERATION 2. BOARD OF MANAGEMENTS’ OPERATION with technical improvements, technology applications. planned target (plan: open 08 more gold jewelry Striving to improve on-time delivery rate, but stores and 06 more silver jewelry stores) Doesn’t stop at “One Term Thought”, the Board’s In 2013, PNJ’s Board of Managers have fully and not reaching the set targets. permanent objective is the sustainable development seriously carried out all General Meeting’s Resolutions, with high efficiency in the present and future of Board of Directors’ Resolutions and continued PNJ. Each Board member has brought into play all carrying out company restructuring, managed the his competence, combined solidarity with spirit, company actively and decisively, followed market dedication and highly responsible attitude, gradually signals closely, understood deeply every unit and key led PNJ to realize the vision and mission by promoting operation, strictly and fully abide PNJ’s charters and and constantly deepening the core values. the law.
The Board has seriously fully carried out matters outlined in 2013 AGM Resolution after considering 2.1 ADMINISTRATION – HUMAN RESOURCE all of the best alternatives and found out that some OPERATION important targets was not able to complete, the Board has consulted shareholders about 5 adjusted In 2013, the Board of Managers have focused on targets of revenue and profit and been accepted by restructuring the human resource management shareholders. system, with some functions of the human resource management system have been improved All major targets and core solutions of this term has (payroll calculation methods, unit performance been researched and applied into all level operations assessment based on KPIs, ...). Major objectives of the company. about human resource management that must also be continuously carried out in 2014 are one The Board has operated with detailed assignment of the critical areas for the restructuring to become to every Board’s member, each member has completed success. 2013 assigned tasks quite well, making a good preparation for PNJ in 2014 and the next years. The Board of Managers pursued promoting the Each issued resolution and directive, the Board has development of high quality human resources always strictly abided by PNJ’s charters and the law. which was initiated in 2012, challenging key personnel and orienting each unit’s function – mission adjustment. Implementing performance assessment through KPIs, although application in 2013 was still limited, it really brought pratical effect.
Completing 95% of planned training programs. The vacancies of key personnel are recruited and trained in accordance with the need of development.
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BOARD OF SUPERVISION'S REPORT
Brand positioning: repositioning PNJSilver brand. Independent internal supervising and auditing has been taken seriously and objectively, audit Managing brand and image recognition is becoming report or audit letter reflects the true state of the more professional. Authentic marketing programs financial situation of the company. connect branches between areas. Domestic customer demanding trend leading was shaped PNJ's financial situation is healthy, giving a true clearlier. and fair view in all important respects, fully compliant with the law as well as Vietnam accounting rules and PNJ’s charters. 2.4 ACCOUNTING – FINANCE AND INVESTMENT OPERATION
Managing tightly financial investment. Well managing debt, saving interest expense. Provisions and reversals of provision corresponding to market situation and consistent with possible risks.
II. / 2014 OPERATIONAL PLAN OF BOARD OF SUPERVISION
Implementing BOS’s responsibilities to shareholders and the company, to complete the statutory supervision task, according to the PNJ's charters and operation regulations of the BOS, the BOS proposes action plan in 2014 as follows:
Maintaining oversight of the company financial state, the legitimacy of the operation. Supervising the cooperation between BOS and Board of Directors, Board of Managers’ members and shareholders.
Supervising the implementation and results of the AGM Resolutions, Resolutions and other decisions and directives of the Board. Monitoring the implementation of other PNJ’s charters.
Enhancing analyzing competence, risk forecasting and better carrying out strategy in order to enhance competitive advantages for PNJ.
Performing other functions and duties prescribed by law and regulations of PNJ.
24 25 ANNUAL REPORT 2013 SEEING THE QUALITY IN YOU
BOARD OF MANAGEMENT'S REPORT
I. 2013 BUSINESS PERFORMANCE
GOLD PRICE 2013
Looking back on 2013, a year marked many 22/2010/TT-NHNN on 29/10/2010, strongly achievements in stabilizing macroeconomy, but reduced gold reserving, gold speculation in there are still many unresolved issues, especially people, contributing significantly to the the economy restructuring scheme, which has stabilization of gold demand - supply in the no significant progress, will affect the growth domestic market. Besides, gold price dropped rate of upcoming years. However, Vietnam's sharply, ending a bull market period lasted for economy has positive signs as the 2013 gross more than one decade. However, Government's domestic product (GDP) increased 5.42 % from new policy for effectively monitoring gold 5.3 % of 2012 and showed signs of recovery. market purpose, partially creating advantages and challenges for large and prestigious The gold market witnessed many changes, companies, which is indispensable PNJ - a leader especially changes in government policy on in the industry. market executive management as applying decree 24/2012/ND-CP from 3/4/2012, decree In Vietnam market, gold price fell 24 % 2013 parent company’s revenues reached 7,604 Despite lowering prices according to market compared with the end of 2012. billion VND, rose 18% YoY, reached 98% of the gold price decreasing, the company has plan. Gross profit rose by 9%, reached 92% of maintained revenue growth rate at 18%. the annual target. Earning before tax was 240 Eventhough the plan hasn’t been completed, but billion VND, completed the set targets. in a difficult situation as last year, this is still a positive sign that PNJ brand has built a strong foothold in consumers’ mind and a strategy to effectively reach customers.
26 27 ANNUAL REPORT 2013 SEEING THE QUALITY IN YOU
BOARD OF MANAGEMENT'S REPORT
2013 REVENUE STRUCTURE 1. GOLD JEWELRY
Gold jewelry is the mainstay business, contributing up to 55% of revenue. Despite the decline in selling price due to the gold price falling, PNJ gold jewelry revenue in % 2013 still increased 15%, reaching 4.185 billion VND (excluding price reduction, gold jewelry sales would increase 25%). In which wholesale business increased 22%, retail 55Total revenue increased 6%, export equivalent to 2012.
Revenue Gross profit margin GROWTH RATE PER SALES CHANNEL 2013
28 29 ANNUAL REPORT 2013 SEEING THE QUALITY IN YOU
BOARD OF MANAGEMENT'S REPORT
2. SILVER JEWELRY
Silver jewelry is the premium product line for customers, in Q4 silver jewelry business segments young customers which has been impacted achieved positive results. Q4 revenue rose 5%, significantly by bad economy in 2013. Total instead of negative growth of Q3, improving r e v enue reached 131 billion, decreased 15%. revenue decline from 17% of 9 first months to 16% at the end of the year. Along with this initial Despite not reaching target, in 2013 with the success, PNJ expected the year 2014 will bring appropriate strategy changes, relocating target changes clearer.
GOLD JEWELRY REVENUE 2009 - 2013
JEWELRY WHOLESALE
Jewelry wholesale business sector is one of Customers has been more and more preferring the activities that seen best growth in year, the high-end products with unique designs and with revenue increased 22%. In addition to sophisticated manufacturing, this is also a good the advantage of the brand as well as modern opportunities for PNJ to be outstanding production technology, in 2013 wholesale compared to competitors with our credible business module has been actively expanding quality, exquisite and diverse designs. When SILVER JEWELRY REVENUE 2009 - 2013 market, looking for more new partners in all customers are increasingly demanding more, provinces in the country. Besides products are these advantages will be the solid foundation for more diverse, exploiting actively market niches the rapid and strong development of PNJ in the created a significant advantage as a leader. future. JEWELRY RETAIL EXPORTING 3. GOLD BAR bil Jewelry retail segment is the core business Not only in Vietnam, the difficult economic 3,268 Total revenue operation: accounted for 40 % of gold jewelery situation has also affected consumer goods mar- kets in countries around the world including sales. Unlike the wholesale business which has With the advantage of being one of 38 companies ND-CP, valid from the end of Q4/2012) has those of PNJ export markets such as the U.S., concentrated customers, retail business has and financial institutions having licenses for significantly affected the business situation of Europe, Australia .... Therefore, the revenue of large scale and widespread, so the growth rate trading gold bar, its revenue reached 3,268 other gold bar brands, including PNJ. There the gold jewelery export in 2013 is not so good. is always lower, especially in difficult economy. billion VND, increased 25% over the same is no advantage in production costs due Especially when European countries and the period. to own-branded gold bar, the profit margin Despite the general market downtrend, retail U.S. have not been affected by "gold culture" as of this business segment decreased to 0.5%. sales has increased by 6 %. Excluding the gold in the East Asian countries. However this business As we know, in 2013 government policies However, gold bar still contributes 3% of price reduction, retail sales increased by 25 %, segment accounted for only a small proportion related to gold market have changed a lot, gross profit and is the factor to attract customers exceeding the annual target. (2%) in total sales of gold jewelry. especially holding monopoly on gold bar to PNJ’s stores. production of SBV (under Decree 24/2012/
30 31 ANNUAL REPORT 2013 SEEING THE QUALITY IN YOU
BOARD OF MANAGEMENT'S REPORT
FINANCIAL RATIOS
Indicators of liquidity always stay at safe level associated companies and joint ventures, (> 1). In 2013, thanks to applying new software which accounted for a large proportion of total in system management, days in inventory profits in 2012, net profit after tax decreased decreased significantly over the same period. 19% in 2013. This caused decreasing in efficiency ratios such as ROA, ROE and gross As mentioned above, decreasing in gross profit profit margin. margin of some businesses segments such as silver, gold bar led to lower gross profit margin, Excluding financial income, net profit after tax 7.9 % as compared to 8.6 % of last year. In of the parent company increased by 45% due addition, by lacking revenue from divestments of to good performance of core business and subsidiaries and dividends received from reducing interest expenses.
4. OTHER BUSINESSES 5. RETAIL STORES NETWORK II. SUBSIDIARIES PERFORMANCE 0.23% of revenue is accounted for trading By the end of 2013, PNJ has 169 stores. In 2013, 1. CAO FASHION LIMITED COMPANY watches and services. In which watch trading the Board of Directors has concentrated on revenue has grown well thanks to the promotion upgrading stores, increasing sales area per store, Charter capital of 10 billion VND, 2013 revenue reached 43 billion VND, profit after tax reached 2.8 and business operation expansion. Revenue increasing sales revenue per m2, therefore instead of opening 14 stores as planned, only billion VND, increased 3.5 times over the same period. By the end of 2013, CAO distribution system from testing and renting services slightly 6 new stores were opened to bring the best has included 10 stores, remained as the end of 2012. decreased. performance. Besides the Board also actively implemented measures and indicators to 2. PNJ LAB LIMITED COMPANY improve performance of existed stores. Charter capital of 10 billion VND, its revenue in 2013 reached 10.5 billion VND, rose 56% compared At the same time, image recognition and sales to 2012, net profit reached 3.6 billion VND, significantly increased from 972 million of 2012. With space have also been upgraded to provide luxury gemstones testing service has more and more prestige in the market, PNJL’s certificate is recognized appearance but still close and comfortable equally with GIA certification – the highest prestigious testing brand in the world. atmosphere when shopping at PNJ’s chain stores. 3. SAIGON FUEL JOINT STOCK COMPANY (SFC)
Since 07/2013, SFC has became a subsidiary of PNJ with ownership rate of 50.02% and the SFC business results would also be consolidated into PNJ's financial statement.
SFC's net revenues in 2013 reached 2,447 billion VND, rose 17%, earning after tax reached 19.5 billion VND, rose 1% over the same period.
32 33 ANNUAL REPORT 2013 SEEING THE QUALITY IN YOU
BOARD OF MANAGEMENT'S REPORT
2. UPGRADING THE INFORMATION 4. FULLY SUPPLYING REQUESTS OF BUSINESS III. 5 KEY MISSIONS OPERATING PERFORMANCE IN 2013 TECHNOLOGY SYSTEM TO MEET THE NEEDS PARTNER WITH REASONABLE COMPETITIVE OF BUSINESS MODULES AND EFFECTIVE COST MANAGEMENT Despite the new plant has just been operated Considering information technology as the foundation more than a year (from 10/2012), it has quickly for the development, Information technology has stabilized production and finalizing organizational been properly invested and timely responded the structure under the new administrative model. needs of development. IT has also been directed Thus the order response rate in 2013 reached closely by the Board of Directors and Board of 95%, while wastage costs reduced significantly, management, let ERP projects soon complete and saving over 135 gold taels compared with 2012 be put into use to meet the needs of the business (equivalent to 4.7 billion VND). system and financial management thoroughly and promptly, growing revenue, reducing To increase operational efficiency, technological inventory and saving more money. process have been invested - improved, details in the following categories: Simultaneously, training for staff has been fully implemented, ensuring that managers of all - Wire Production process has been upgraded levels and operational staff can directly and shortened, and are in progress of performance understand the program and use it to serve measurement. executive management in business operation. - Additional investment on alchemist technology. 3. IMPROVING AND OPERATING THE INTERNAL PROCESSING SYSTEM PROPERLY WITH THE - Increasing the number and improving the skills NEW MANAGEMENT PROCESS AND of high-end jeweler teams, meeting the needs of EFFICIENTCY CONTROLLING quantity and quality of luxury goods to increase the strength of PNJ’s brand, at the same time The Company has completed developing, directly competing with foreign goods standardizing and deploying key processes related to operations such as: purchasing, sales, - Training activities as well as research and ordering and design. development of new products have always been fully and comprehensively focused. In 2013, in The assessment operation is also performed addition to the vocational training (for who are regularly, periodically combining with sudden in charge of main stages), workers also participate 1. FINALIZING AND OPERATING THE - Applying new Framework on salaries, bonuses inspections to ensure the compliance with developed in the secondary stages training to diverse their HUMAN RESOURCES MANAGEMENT and subsidies standard operating procedures. Efficiency expertise. SYSTEM PROPERLY AND EFFECTIVELY measurement for key processes has been implemented. - Completing KPIs evaluation criteria for over 5. COMPLETING ANNUAL TARGETS OF With professional consulting from a prestigious 80% of staff positions. Performance Administration Division has just REVENUE AND PROFIT HR consultant company, PNJ has completed the been established, implementing 9 key processes’ organizational structure according to the new Implementing throughoutly internal communication efficiency measurement, expected acceptance As detailed analysis in the business performance, model: supplementing the vacancies, completing programs to develop an in-depth corporate culture test will be conducted at late 06/2014. in 2013 for many objective and subjective job descriptions for each specific position under new to all officers and employees, including the prominent reasons PNJ has not completed some planned standards, holding 65 short-term and in-depth media program on the 25th anniversary, targets. By reaching 98% revenue target and training programs to raise the level of awareness, understanding the Company's mission and witnessing 15% growth in , gold jewelry revenue, specialized skills for staff – employees and especially vision accompanying with each individual in it’s a great result of management team’s effort. for the retail business segment. PNJ and preparation programs for business in the integration phase. Develop and apply remuneration policies consistent with the context and common ground of the labor market, to keep and attract high quality personnel.
34 35 ANNUAL REPORT 2013 SEEING THE QUALITY IN YOU
BOARD OF MANAGEMENT'S REPORT
criterias set, allowing to track the performance of Risks of competition on labour market: each stage of production at any given time of the IV. RISK MANAGEMENT each staff position as well as the whole company To maintain and develop experienced and skilled day. At the beginning and end of the process, all performance indicators. The working goal of each human resources as now, on one hand PNJ care goods are checked for weight and quality to help individual is built attaching to the strategic vision of about the rights of workers through wage avoid loss of goods Risk management is an important the whole company. - rewards policies with job results, on the other factor, contributing to the sustainable hand training is also invested in order to build a 4. FINANCIAL RISKS development of every business. Focusing on brand-building, making a difference team with suitable suitable inherited expertise, compared to other competitors. A strong brand Aware of this, the leaders of the ready for the assigned tasks. Especially PNJ culture Liquidity ratios always stay at safe levels. Short-term not only helps a company grow, but also is a tool to protect has always been taken care and accreted debts (account for over 90% of loans) are company has focused on developing that company against risks in business. Aware of over the years, is a valuable asset to make colloidal balanced by inventories. Unlike other businesses, risk management processes right that, right from the early days of establishment, attachment between PNJ’s employees. company's inventories are mostly raw materials from the inception and considering brand-building was invested methodically and and gold goods which is very liquid, is the scientifically, took 5 core values as foundation: 3. RISK MANAGEMENT IN MANUFACTURING specific factors to help mitigate liquidity risk. the completion of this work as one Honesty - Quality - Responsibility - Creativity - of the key objectives of the company. Innovation. Thus, PNJ is proud to be a leading jewelry brand To avoid risks of workplace safety in production, Risks of operational cost in Vietnam and has been always trusted by customers management processes have been applied under for over 25 years. 2013 marked a milestone: 25 international standards such as ISO 9001 – 2008, - Interest controlling: years of establishment and development. PNJ has 5S. Imported machinery and equipments are . organized many program to honor the brand value, tested and guided by foreign experts for smooth + The finance department always actively looks the Golden Night event – the 25th anniversary with operation. for low-cost funding as well as flexibility in the 1. RISK MANAGEMENT IN BUSINESS STRATEGY a media message "Honoring the true value" – has Besides, to strengthen risk avoidance, workers selection of appropriate partners and loan products. created great echoes and moved PNJ brand value and staff are insured adequately. . Identifying proper long-term targets and vision is to a new level. + Balancing loans - inventory to meet the needs the lodestar to bring sustainable development to Environmental Risk: In addition to the of enterprise development the company. With a vision of "A leading jewelry 2. BUSINESS OPERATIONAL ENVIRONMENT RISK environm e n t a l c e r tification issued by concerned manufacturer and retailer in Asia, maintaining leading agencies, jewelry factory has been certified ISO - Saving cost: through measurable indicators of position in every single market segment that PNJ Risks of policy: to minimize the impact of policy 14000 for safety environment. Full compliance performance, the cost of unnecessary or has targeted in Vietnam", the leaders coordinate changes to the business situation, the company has with the regulations on production environment . inappropriate in the present are reduced. Target with foreign consultants to establish a development always updated the latest policy of the State to budget is managed closely and reported regularly strategy for the 10-year period from 2012 to 2022. develop appropriate action plans. Reporting and Risk of loss of goods: ERP Program - production to help Boards of Managers to closely monitor Accordingly, the objectives are specified for each settlement are made fully, transparently and timely module allows managers control the goods at the situation of the company costs. stage of development closely to the real situation. in accordance with the current regulations. 2013 was the first year the program was conducted as planned, difficulties and initial skepticism are Not only that, through high-level meetings, Board of inevitable. But with firmness and close guidance Directors also actively contribute opinions to help from Board of management, project’s programs the government have insights about the business were initially created effective internal confidence environment, together to find solutions to build and as well as the renovation is the premise for future develop Vietnam jewelry industry bigger alongside solid development. Strategic Management Division powers in the region such as Thailand, China, India. that has just been established has timely followed-up and evaluated the implementation of each project, Risks of input price fluctuation are strictly through which detected and adjusted unsuitable controlled by market analysis and price management sites, with the ultimate goal of achieving the policy. proposed strategic vision.. In 2013, ERP software was successfully developed, Processes and assessment criterias are also built contributed to help Board of Management effectively comprehensively to ensure the keeping abreast manage costs and inventory throughout the system, of strategic objectives implementation process. In thus guaranteeing the stable profit rate for most 2013 the company began to develop the KPI assessment product groups.
36 37 ANNUAL REPORT 2013 SEEING THE QUALITY IN YOU
BOARD OF MANAGEMENT'S REPORT
V. 2013 INVESTOR RELATIONS ACTIVITIES VI. CONCLUSION
In 2013, the IR department held more than 100 meetings with investors representing for more than 40 Facing the common difficult situation of the economy, with great efforts PNJ has achieved remarkable investment funds, securities firms in domestic and abroad. In addition, the company has joined major growth, once again confirms the correctness of the period 2012-2022 strategy, in which focusing core conferences organized by Dragon Capital, Vietnam Holdings, Vietnam Capital Securities and Kim Eng business activities and proving the internal power are top priority. Following these successes, 2014 promises to be a more prosperous year with completed and reinforce management system. Securities to actively exchange information with potential investors.
Thanks to be more professionally invested, the 2012 annual report of PNJ was rated as one of the 30 best annual report in the Annual Report 2012 poll co-organized by HOSE and Securities Investment News.
38 39 ANNUAL REPORT 2013 SEEING THE QUALITY IN YOU
KEY ACTIVITIES OF HUMAN RESOURE IN 2013
Developing organizational chart, job title de for their units. The job description also clearly scriptions and key performance indicators described for each position, as well as building Developing a competitive remuneration performance assessment system with Balance Possessing a strong workforce is the desire of most companies. When equalizing in all Pushing internal media Score Cards method to management level. Also, resources such as: finance, technology, equipment and machinery, information, time and Personnel assessing and filtering in 2013, the company established Strategic company culture (or intangible assets), a better human resource is the critical factor that Talent attracting Management Department and Quality Management Training Department. These two units were issued as the creating more advantages for the company. inevitable problems to meet strategic requirements Developing organizational chart, job title and high systematic for large-scale company like PNJ. descriptions and key performance indicators to suit new development orientation DEVELOPING A COMPETITIVE REMUNERATION
Recognizing this, PNJ’s leaders have determined after restructuring the organization, effective use After restructuring the company organization, Regarding remuneration, so far PNJ have pretty to build a strong workforce. Since late 2012, the of human resources in 2013 is the top target, every Department embarks in the rebuilding of good policy on Vietnam's labor market. company has implemented organizational which is considered to be a proper and strategic the organizational chart as well as adjusting the However, the policy was not very attractive so restructuring. With the assistance of reputable orientation leadership from PNJ. functions and duties of its employees. In particular, that in 2013 the company has focused on building foreign experts and the determination of the leaders, the biggest change is the Retail Department and a level system, salary scale, salary policy based on PNJ has a more consistent organizational chart In the beginning of 2013, Board of Directors Jewelry Factory. As the leading units which have 3p method with consultation of Haygroup, p r e s tigious and manpower planning to meet the modern and senior managers of other Departments have great impact on the efficiency of the company company in personnel consulting services on management model of retail chains. In the agreed to identify and target the efficient use of revenue, in the past two years these departments the market. The company also changed the formula difficult economy nowadays, competition human resources in 2013, 2014 with the following have completed new organizational charts and for calculating bonus for business segments, between companies becomes fiercer and fiercer, solutions: planning quantity, quality of personnel needed motivating staff to promote sales. Simultaneously
40 41 ANNUAL REPORT 2013 SEEING THE QUALITY IN YOU
KEY ACTIVITIES OF HUMAN RESOURE IN 2013
GROWTH OF AVERAGE INCOME PER EMPLOYEE 2009-2013 NUMBER OF EMPLOYEE 'S GROWTH RATE 2009-2013
applying the salary with the conversion coefficient PERSONNEL ASSESSING AND FILTERING service is an important indicator of the business for some manufacturing stages in Jewelry Factory. In TALENT ATTRACTING objectives of the Company. Recognizing this, the addition, the Company also adjusted wages for social Personnel assessing and filtering program is an company leaders were very interested in insurance in accordance with the market, additional effective tool to plan efficient use of resources. Besides personnel assessing and filtering, talent training activities in 2013 and will extensively deploy welfare regimes as accident insurance, health Reviewing of the quantity and quality of personnel attracting was also the solution implemented in in 2014. The company has also invited reputable insurance for employees and managers. Overall in is done in three segments: production, business 2013. Company leaders noticed that besides the experts in jewelery retail industry in the world to 2013, the company has a strong adjustment to and office. However, this has been done mainly in team of experienced personnel at present, PNJ need teach and share experience for the senior remuneration policies and brings a certain Retail Department and Jewellery Factory for more additional resources to acquire more new knowledge, management team. Training materials for the business satisfaction for staff. than 80% of the Company's employees working new methods. The combination of old and new segment are composed in detail, standardized and in these two units. Last September, the company personnel will be great synergy for the company to more vivid (video clip). Staff in service of training will PUSHING INTERNAL MEDIA has organized an Assessment Center to assess develop sustainably. Culture integration with new be invested in both number and quality. Equipment, the business supervisory team, which has a large personnel is not easy. However, with the support of tools, teaching instruments will also be supported at 2013 is considered to be the base year for the impact on the business results of the system. The the leaders, and the open culture of Departments, in maximum. It is expected that in 2015, the company changes in the PNJ. Therefore, internal communications objective of this evaluation is to determine 2013 the newly recruited personnel integrated more will set up PNJ Training Center. So that training activities have been focused. The objective of the quality of personnel qualified for a new favorably in PNJ and there have been positive signs activities in PNJ will be growing in scope and internal communications is to help employees job position, and dismiss or transfer who does not in the contribution to the overall results of the com- professionalism. understand how positive the company's change meet the qualifications or professional competence. pany. This solution will continue to be executed in mean. Propaganda for staff to aware and be responsible Since the number of personnel in business segment 2014. Improving the efficiency of human resources is not to complete himself for work. Due to putting a lot are very large, in the coming year the Company will easy and must be implemented drastically, sticking of effort for reform programs in 2013, internal continue to evaluate further to the store team leader TRAINING with it that the company can succeed. To do this, communication is more interested. However true and salesperson 2013 is a year of best efforts of PNJ’s leaders and popularity and effectiveness of this activity is not Companies which consider training activities staff. With the positive results of the reform in 2013, commensurate with the large changes of the Company. seriously will develop sustainably. Furthermore, in along with objectives, high-level commitments and Therefore, this activity should be properly invested large-scale and string-form companies like PNJ, the clear solutions, we completely trust that PNJ will more in 2014. standard and uniform training in personnel quality succeed in restructuring, improving efficiency of is essential. Improving the quality of customer human resources in 2014.
42 43 ORGANIZATION AND MANAGEMENT STRUCTURE ANNUAL REPORT 2013 SEEING THE QUALITY IN YOU
PNJ’S ORGANIZATION CHART
GENERAL SHAREHOLDER COUNCIL
BOARD OF SUPERVISION
BOARD OF DIRECTORS
BOARD OF DIRECTORS OFFICE CHIEF EXECUTIVE OFFICER (CEO)
REPRESENTATIVE MANAGERS (ISO)
DEPUTY DIRECTOR DEPUTY DIRECTOR DEPUTY DIRECTOR DEPUTY DIRECTOR (Permanent)
FINANCE AND ACCOUNTING MARKETING DEPARTMENT PNJ JEWELRY FACTORY STRATEGY DEPARTMENT NORTHERN BRANCH DEPARTMENT
QUALITY CONTROL CENTRAL BRANCH ADMINISTRATIVE DEPARTMENT HUMAN RESOURCE DEPARTMENT E - COMMERCE DEPARTMENT DEPARTMENT
WESTERN BRANCH WHOLESALE DEPARTMENT DESIGN DEPARTMENT
RETAIL SALE DEPARTMENT EXPORT DEPARTMENT IT DEPARTMENT
SUPPLY DEPARTMENT
WARRANTY CENTER
46 47 ANNUAL REPORT 2013 SEEING THE QUALITY IN YOU
Mrs. CAO THI NGOC DUNG - CHAIRWOMAN Mr. NGUYEN TUAN QUYNH - MEMBER OF BOD 1 4 Year of birth: 1957 Year of birth: 1972 BOARD OF DIRECTORS Nationality: Vietnam Nationality: Vietnam Professional skills: Professional skills Bachelor of Industrial Commercial Economics - PhD Degree in Business Administration, Paramount University ( University of Economics Hochiminh city) - MBA of Hochiminh City Open University. - Bachelor of Business Administration, University of EMPLOYMENT HISTORY Economics Hochiminh City 1984 - 1985: Deputy Manager of Planning department, EMPLOYMENT HISTORY Phu Nhuan Synthesis Company 1994 - 2005: - Assistant CEO, Deputy sale manager of Gas Saigon Petro 1985 - 1987: Planning Manager of Phu Nhuan - BOD Member of Sai Gon Phu Yen oil and gas JSC Agricultural Foods Company - BOD Member of Sai Gon Nghe An oil and gas JSC 1988 - 2003: General Manager of Phu Nhuan 2005 - 2007: Deputy Director of Saigon Gas Jewelry Company 1990: General Manager of Phu Gia Credit Center 2007 - 2011: Vice Chairman of Dai Viet Energy JSC 1991 - 1992: General Manager of Phu Nhuan Trading Company 2007 - 2010: Chairman of Hong Vina Gas Company 1992 - 1997: Chairwoman of Dong A bank 2007 - 2012: Deputy Director of Phu Nhuan Jewelry JSC 2003 - present: Chairwoman of Dong A Land 2007 - present: Chairman of Doanh Chu Investment and Training JSC 2004 - present: Chairwoman-CEO of Phu Nhuan Jewelry JSC 2008 - nay: Chairman of Saigon Fuel JSC 2005 - 2011: Chairwoman of Dai Viet Energy JSC 1 Mr. ANDY HO - MEMBER OF BOD 5 Mr. NGUYEN VU PHAN - VICE CHAIRMAN Year of birth: 1972 3 4 2 Year of birth : 1956 Nationality: America Nationality: Vietnam Professional skills: Professional skills: - MBA of Massachusetts Institute of Technology - MBA of University of Technology Hochiminh City - Bachelor of Accounting, Colorado University - Forging and Mechanical Engineer, University EMPLOYMENT HISTORY of Technology Ha Noi 2000 - 2004: Investment Manager at Dell Computer Corp (America) EMPLOYMENT HISTORY 2004 - 2007: Investment Manager at Prudential Fund Management 1978 - 1985: Head of Technical Department, Caric Factory 2007 - nay: Head of Vina Capital representative office 1985 - 1987: Technical Officer of Synthetic Equipment Company ( Hochiminh Industrial Department) Mrs. PHAM VU THANH GIANG - MEMBER OF BOD 1987 - 1996: Technical Officer of New Technology 6 Company (COTEC), Vietnam Scientific Year of birth: 1983 Institution, Hochiminh Branch Nationality: Vietnam 1996 - 1999: Deputy Manager of Garment factory, Binh Duong Professional skills: Manufacturing and Import-Export Company - Master of banking and finance, University of 1999 - 2003: Deputy Manager of Phu Nhuan Applied Sciences, Northwestern Switzerland 2 Jewelry Company - Bachelor of Banking and Finance, 2004 - present: Vice Chairman and Deputy Director Banking University, Ho ChiMinh City of Phu Nhuan Jewelry JSC EMPLOYMENT HISTORY 2005 - 2006: AON Vietnam Staff 2007 - nay: Investment Manager, Mekong Capital Mrs. NGUYEN THI CUC - MEMBER OF BOD 3 Year of birth: 1960 Mrs. NGUYEN THI BICH HA - MEMBER OF BOD Nationality: Vietnam 7 Professional skills: Year of birth: 1969 MBA, University of Economics Hochiminh City Nationality: Vietnam Professional skills: EMPLOYMENT HISTORY - MBA, Vanderbilt University, USA 1983 - 1988: COfficer of Statistic and Planning - Applied economics in policy analysis Certificate, Department, Phu Nhuan District Fulbright Program, Vietnam 1988 - 1995: Chief Accountant of Phu Nhuan - Bachelor of Foreign Trade, University of Jewelry Company Economics Hochiminh City 7 1996 - 2003: Deputy Manager of Phu Nhuan Jewelry Company EMPLOYMENT HISTORY 2004 - present: BOD member and Deputy Director 1992 - 1999: Sale manager of Phu Yen Import- Export of Phu Nhuan Jewelry JSC company, Hochiminh Branch 2007- present: Head of Dong A Bank ‘s Board 5 6 2001 - 2008: Deputy Manager of Dong A Bank of supervision 2006 - 2009: Consultant, BOD member of Binh Minh Community Development 2010 - present: Executive Consultant of College of Business Administration and Management 48 49 ANNUAL REPORT 2013 SEEING THE QUALITY IN YOU
BOARD OF MANAGEMENT Mrs. CAO THI NGOC DUNG - DIRECTOR 1 Year of birth: 1957 Nationality: Vietnam Professional skills: Bachelor of Industrial Commercial Economics ( University of Economics Hochiminh city)
EMPLOYMENT HISTORY 1984 - 1985: Deputy Manager of Planning department, Phu Nhuan Synthesis Company 1985 - 1987: Planning Manager of Phu Nhuan Mr. LE HUU HANH - DEPUTY DIRECTOR Agricultural Foods Company 1988 - 2003: General Manager of Phu Nhuan 4 Jewelry Company Year of birth: 1963 1990: General Manager of Phu Gia Credit Center Nationality: Vietnam 1991 - 1992: General Manager of Phu Nhuan Trading Company Professional skills 1992 - 1997: Chairwoman of Dong A bank - Bachelor of Chemistry, University of 2003 - present: Chairwoman of Dong A Land Technology Hochiminh City 2004 - present: Chairwoman-CEO of Phu Nhuan Jewelry JSC - Gemstone and Diamond Testing Expert 1 2005 - 2011: Chairwoman of Dai Viet Energy JSC EMPLOYMENT HISTORY 1983 - 1988: Technical Staff of No.4 Printing company 3 1988-1992: Sale staff of General Services Company, Mrs. NGUYEN THI CUC - DEPUTY DIRECTOR 3 Go Vap District Year of birth: 1960 1992- 2003: Sale staff, Nationality: Vietnam Manager of Hanoi Branch, Professional skills: Sale Deputy Manager, MBA, University of Economics Hochiminh City Sale manager of Phu Nhuan Jewelry Company 2004 - present: Deputy director of Phu Nhuan Jewelry JSC EMPLOYMENT HISTORY 1983 - 1988: COfficer of Statistic and Planning Department, Phu Nhuan District 1988 - 1995: Chief Accountant of Phu Nhuan Jewelry Company Mrs. PHAM THI MY HANH - DEPUTY DIRECTOR 1996 - 2003: Deputy Manager of Phu Nhuan 5 Year of birth: 1970 Jewelry Company Nationality: Vietnam 2004 - present: BOD member and Deputy Director Professional skills: of Phu Nhuan Jewelry JSC - MBA, National Economics University – Washington University 2 2007- present: Head of Dong A Bank ‘s Board - Bachelor of Foreign Language, University of Social Sciences of supervision and Humananities Hochiminh City - Bachelor of Bussiness Administration, University of Mr. NGUYEN VU PHAN - DEPUTY DIRECTOR Economics Hochiminh City 2 Year of birth : 1956 EMPLOYMENT HISTORY Nationality: Vietnam 1993 - 1994: Staff of Sales Department, Phu Nhuan Professional skills: Jewelry Company - MBA of University of Technology Hochiminh City 1994 -1995: Secretory – Toba Investment - Forging and Mechanical Engineer, University 1995 - 2003: Sale Satf, CEO assistant, of Technology Ha Noi Deputy Manager then Manager of Research and Marketing Department, EMPLOYMENT HISTORY Phu Nhuan Jewelry Company2004 1978 - 1985: Head of Technical Department, Caric Factory 2004 - 2009: Manager of Research andMarketing Department, 1985 - 1987: Technical Officer of Synthetic Equipment Manager of CAO brand Company ( Hochiminh Industrial Department) 2009 - 2011: Manager of CAO Limited company 1987 - 1996: Technical Officer of New Technology 2012 - present: Deputy Director of Phu Nhuan Jewelry JSC Company (COTEC), Vietnam Scientific Institution, Hochiminh Branch 1996 - 1999: Deputy Manager of Garment factory, Binh Duong Manufacturing and Import-Export Company 1999 - 2003: Deputy Manager of Phu Nhuan 4 5 Jewelry Company 2004 - present: Vice Chairman and Deputy Director of Phu Nhuan Jewelry JSC
50 51 ANNUAL REPORT 2013 SEEING THE QUALITY IN YOU
BOARD OF SUPERVISION
Mr. PHAM VAN TAN- HEAD OF BOARD OF SUPERVISION 1 Year of birth: 1960 Nationality: Vietnam Professional skills: - Bachelor of Industrial Commercial Economics ( University of Economics Hochiminh city) - Bachelor of Political Economy, National political institu- tion – Journalism and Communication Department
2 EMPLOYMENT HISTORY 1982 - 1989: In Teaching and administration department, University of Economics Hochiminh city 1989 - 1992: Charge of Sale and Administration, SJC Jewelry Factory Mrs. NGUYEN NGOC HUE - MEMBER OF BOARD OF SUPERVISIONS 1992 - 2010: Manager, Branch manager, 3 Year of birth: 1965 Deputy Director of Dong A Bank Nationality: Vietnam 2010 - 2012: BOD consultant of International Professional skills Cominucation Net (IN-COMNET) 1 - Bachelor of Commercial Finance, Finance and Accouting University, Hochiminh City - Certificate of Accounting & Finance of Import- Export activities, Foreign Trade College - Certificate of Chief accountant training course, Ministry of finance. Mr. TRAN VAN DAN - MEMBER OF BOARD OF SUPERVISION 2 EMPLOYMENT HISTORY Year of birth: 1974 1988 - 1991: General accountant, Nationality: Vietnam Codimex Company Vung Tau Professional skills: 1991 - 1994: Chief accountant, - Bachelor of Accounting, Commercial Canadian Hotel, Vung Tau University- Cử nhân Quản trị kinh doanh, 1994 - 1997: Chief Accountant, - Bachelor of Business Administration, Hochiminh Giao Chau Company, Vung Tau University of Technology (HUTECH) 1997 - 1998: General Accountant, Duhacom, HCM City - Chief accountant certificate, 1998 - 1999: Chief Accountant of Hochiminh National University Compunet Company, HCMC 2000 - 2010: Head of Payment Division of PNJ EMPLOYMENT HISTORY 2011 - present: Chief accountant of PNJ 1997 - present: Have experienced in Phu Nhuan Jewelry JSC as: Laboratory Limited Company. - Worker then head of Quality Division - Deputy Manager of Quality Control Department - Manager of Quality Control department - Deputy manager of Manufacturing Department - Deputy manager of Technical Quality Department - Manager of Technical Jewelry Process - Deputy manager of PNJ Jewelry Factory
3
52 53 ANNUAL REPORT 2013 SEEING THE QUALITY IN YOU
CORPORATE GOVERNANCE SITUATION
INFORMATION II. BOARD OF DIRECTORS RESOLUTIONS Name of company : PHU NHUAN JEWELRY JOINT STOCK COMPANY Address : 170E Phan Dang Luu Street, Ward 3, Phu Nhuan District, HCMC Telephone : (08) 3995 1703 Fax : (08) 3995 1702 Charter capital : VND 755,970,355,000 Ticker : PNJ
I. BOARD OF DIRECTORS ACTIVITIES
1. BOD’S MEETINGS
2. BOD’S SUPERVISION OVER CEO
Some BOD member has joined BOM weekly and monthly meetings. BOD’s supervision over BOM has been made through monthly report.
3. OPERATIONAL ACTIVITIES OF DIVISIONS OF BOD
There is no other division.
54 55 ANNUAL REPORT 2013 SEEING THE QUALITY IN YOU
CORPORATE GOVERNANCE SITUATION
II. BOARD OF DIRECTORS RESOLUTIONS III. TRANSACTION OF INTERNAL SHAREHOLDER AND RELATED PARTIES
1. STOCK TRANSACTIONS
2. OTHER TRANSACTIONS ((made by internal shareholders/ major shareholders and affiliates)
IV. OTHER ISSUES - In 2013, PNJ has revised, supplemented The Company Charter twice: on 25/04/2013 and 27/11/2013.
- PNJ has increased charter capital from VND 719,978,350,000 to VND 755,970,350,000 through issuing new share under Employee Stock Ownership Plan.
- On 18/11/2013, PNJ has changed voting share number due to issuing new shares through ESOP.
56 57 BRANDS PNJ BRINGS CUSTOMER PRIDE WITH ELEGANT, OUTSTANDING QUALITY JEWELRY PRODUCTS.
( PNJ Mission ) ANNUAL REPORT 2013 SEEING THE QUALITY IN YOU
BRANDS
PNJ GOLD CAO FINE JEWELLERY
Officially presented in Vietnam since 1989, PNJ gold Founded and developed since 2005, CAO Fine Jewellery jewelry brand has confirmed its leading position as a is a luxury brand jewelry brand registered in Vietnam, pioneer in the fashion revolution of jewelry in USA and Singapore. As one of the prestigious jewelry Vietnam by the elegant jewelry, diversified designs and brand in the domestic market, CAO Fine Jewellery is superior quality. favored by connoisseurs because of the combination of Western exquisiteness and Asian traditional beauty. In nearly 25 years of establishment and development, PNJ gold jewelry brand has always been innovating The uniqueness of the CAO Fine Jewellery jewelry to continuously launch hundreds of various gold products is reflected in the designing ability of the collection, abundant in gemstone types with pioneering experienced design consultants, always be ready to ground-breaking design, contributing to honour the turn ideas into real masterpieces, serving particular beauty, the elegance and the class of Vietnamese con- needs and preferences of each person. Glamorosa sumers. Especially, with the message "Honouring Collection is a testament to the efficient investment in the true value", PNJ raises the value of each jewelry design of CAO Fine Jewellery in 2013. products, not only adorning the outer beauty but also honouring the values of inner soul and virtues of the In June 2013, CAO Fine Jewellery opened a new women. Besides, collections such as Wedding Jewellery strategic store at 16-18-20 Thu Khoa Huan Street, Gold Happiness, ECZ Jewellery - Excellent Ziconia District 1. The launch has marked right steps and Cubic, Diamond Jewellery... are the proofs of the superior strategic vision in direct competition with the level, bring pride and confirm the mission of PNJ gold international jewelry brand presenting in Vietnam. jewelry brand as "bringing pride to customers by exquisite jewelry with outstanding quality."
60 61 ANNUAL REPORT 2013 SEEING THE QUALITY IN YOU
BRANDS
PNJSILVER JEMMA JEWELRY
Launched in 2001, with the 14-year creative Jemma is a premium jewelry and fashion accessories and developing journey, PNJSilver has confirmed its brand of Phu Nhuan Jewellery JSC - PNJ. Founded leading position in Vietnam jewelry and and developed since late 2002, with the development fashion accessories market. Shaping a young and orientation as a premium fashion accessory brand, modern style, PNJSilver has regularly launched new Jemma is another option for young women, especially collections and many media marketing campaigns the ones working in office, to have more options in towards young customers with a mission of bringing self-refreshing, reaffirming their personalities. dynamic, modern style beauty, self-assertion and been an ideal choice for customers as gifts for special occasions. All Jemma products are designed by Korean and Italian designers, based on the latest fashion trends in The year of 2013 marked an important event in the fashion centers such as Italy, Paris, Korea and Hong development strategy of PNJSilver. PNJSilver officially Kong. Using high-quality materials from India, South repositioned, launched the new brand identity to open Korea, Africa ... Jemma products are manufactured by a "Shining Her World" with fashionable purple colour as modern technological processes, under a strictly quality well as breakthroughs in product and development brand management. Therefore, each Jemma product is not strategy. Accordingly, PNJSilver product lines were only a fashion product, consistent with the trends, but invested, innovated. Beside Duyen dang (Charming) also a logo of class and luxury. and Thanh lich (Elegant) product lines, PNJSilver has launched Phong cach (Stylish) product line – which Jemma consists of two main product lines: jewelry are fashion jewelry accessories with abundant materials, and accessories. There are two main factors for Jemma innovative designs and various prices to suit all different Jewellery success: design team and production technology types of customer. from Italy. Therefore, Jemma jewelry will not only create freshness, modern, character and style, but also With a wide distribution network – over 133 stores na- bear the stamp of luxury, nobility and always be the tionwide, PNJSilver has continuously attempted and pride of its owners. created, aimed to become a fashion icon for young girls and been known as a leading jewelry accessories brand with exceptional quality, various designs and reasonable price .
62 63 CORPORATE CULTURE ANNUAL REPORT 2013 SEEING THE QUALITY IN YOU
“COMMON HOME” – PNJ CULTURE
Khai mạc Ngày hội văn hóa PNJ Trò chơi Ngày hội văn hóa PNJ Văn nghệ Ngày hội văn hóa PNJ
Nowaday, corporation culture has played a very important role in every company’s survival and development. Through corporate culture, we can see the character of each company, which is reflected in every activity, behavior or words of the whole staff or each individual. Corporate culture itself will create a regulated, professional, disciplined team, and that team will always be willing to sacrifice and dedicate everything to the company; in other words, corporate culture will create the company’s strength and spirit and even the everlasting future and destiny of that company.
All the way through more than 25 years of development, PNJ has built, tempered itself a very specific culture: Common Home culture, in which each member of the Hội thảo tại Hồ Tràm Tổng kết năm 2013 PNJ family lives the spirit of discipline, responsibility, professional work style but still full of love, solidarity; seminars, forums for the youth, concerts, sport helps each other in work and life, exchanges information, competitions, PNJ family day, healthcare clubs… encourage each other to raise the cultural and expertise PNJ culture educates its staff and employees to level. The effort of each member will be rewarded with live responsibly to oneself, to the community and remuneration, encouragement and promotion to new society, to be a law-abiding citizen, “Nhân - Lễ - positions, and above all, being a good example for both Nghĩa - Trí – Tín” values (Humanitarian – Politeness team and next generations. – GratituteGratitude – Knowledge – Credit) have always been appreciated. We can say PNJ is To make up “PNJ Common home” culture a unique a school in which learners are not only treated not character, essential and important elements are PNJ’s only by immediate benefits, but also with respect core values: Responsibility, Honesty, Quality, Innovation and love. and Creativity, these 5 elements together make a lodestar in every decision for PNJ’s development, in every action PNJ culture is really preeminent and unique as it program and a standard of behavior in work and life for inherited from the strength and spirit of core values the whole staff and each individual to follow. that has been tempered in 25 years, and that is also the basis of PNJ people, PNJ strength and PNJ spirit. It can be seen that PNJ culture and core values are present Gala Dinner tại Hồ Tràm PNJ culture has made an importancet contribution everywhere, from business culture, customer relations, in the company position, competitive advantages, investor relations, partner relations to public and social builtding a stronger team, attracteding talents, relations and most clearly in internal activities for staff. connecteding employees and beening a base and Through associations and communities, employees oriented a trust for the everlasting sustainable development. activities have been regularly organized, and met meeting PNJ always values, preserves and brings into play the need of health care, raising the living standard of the core values and its culture, which is; has this be employees as well as building a common pride and a preparation and a strong base, and be ready for connecting members: workshops about building teams, the path ahead. 66 67 ANNUAL REPORT 2013 SEEING THE QUALITY IN YOU
2013 PNJ’S MARKS ON COMMUNITY 2013, the year marks the milestone of 25 years for people in calamity affected areas as well establishing and growing of PNJ with great as taking care of poor people in Tet festival. Through charity funds, PNJ directly calls upon achievements and contributions to Vietnam all staff, partners, customers and sponsors jewelry industry as well as to the country’s to donate and carrying out charity trips with socioeconomic development. It’s more thousand gifts for poor people in Tien Giang, meaningful to mark its first ¼ century milestone, Kon Tum, Quang Ngai, especially after disasters, PNJ has implemented various volunteering PNJ’s volunteers hit the road to help and share activities and has made a strong mark in the with suffered people. community as well as showing itself a pioneer and typical enterprise of social works in the Taking care of poor people in Tet festival has business community. long become a cultural beauty of PNJ in many years. Thousand gifts for the poor on the occasion CONTINUE TO FOSTER TALENTS of Tet every year. In 2014 Tet, PNJ organized the event “Sharing Tet with PNJ” and gave 1,500 Education is one of the priorities that PNJ always gifts to the poor in Phu Nhuan district, Go Vap aims at, in order to somewhat contribute to care district and rural remote districts of Quang Ngai; for young talents’ developing – the country’s companions with the program “Tet caring for future generation. PNJ continues to maintain poor women” of Phu Nu HCMC Newspaper the scholarships annually: PNJ scholarship for and the program “Frontier’s Spring” of SGGP 100 poor students in Phu Nhuan District (1,300 Newspaper. in 13 years with the total of 1.5 billion VND); Nguyen Duc Canh scholarship, Tran HELPING POOR PEOPLE “AN CU LAC NGHIEP” V a n O n s c h o l arship, Scholarship for University of (SETTLE AND HAVE A WORK) Economics, HCMC’s student; SFT long-term scholarship (TBKTSG- PNJ), DEF Scholarship In the work of building charity and gratitude fund (fund for education and caring for poor houses, the year 2013 marked 25 years of PNJ’s workers’ spiritual life established by establishment with 25 unity houses given to Business Association of High-quality Vietnamese ethnic minorities of Quang Ngai’s remote rural Goods), Vu A Dinh Scholarship fund established areas and Quang Ngai’s blind association, each by Central Ho Chi Minh Communist Youth house valued 30 million VND. Beside, PNJ also Union… donates hundred million to Phu Nhuan district’s Walk Fund for the Poor, HCMC’s Poor Patient PNJ also actively participates in community Patronizing Association, HCMC Vietnamese action programs of Universities such as Fatherland Front’s Fund for the Poor… to take “Dynamic” contest to encourage talented care of poor people in nationwide. students, funding environmental activities (RMIT’s Earth Day), Green Summer campaign With total costs for charity work nearly 2.5 billion and No-Motorbike School day of HCMC University VND a year, we can see PNJ’s commitment for of Law. Each year, PNJ also spends hundreds of community development always sticks to their gift including of notebooks, books, schoolbags, business philosophy "put social and customers hats, raincoats for poor pupils in remote rural benefit in company’s benefit." PNJ’s sense of areas…in volunteering trips. community responsibility has helped disadvantaged provinces as well as millions of disaster sufferers and IN-DEPTH CHARITY ACTIVITIES poor families so they can have more strength, more determination to overcome difficulties Beside regular activities like blood donation, in life. PNJ’s community action programs have taking care of social polify beneficiaries, public spread strongly in the business community. healthcare, PNJ is also a pioneer in relief works
BUSINESS PHILOSOPHY “PUT SOCIAL AND CUSTOMERS BENEFIT IN COMPANY’S BENEFIT”
68 69 ANNUAL REPORT 2013 SEEING THE QUALITY IN YOU
2013 PNJ’S MARKS ON COMMUNITY
Trao quà người nghèo - Quảng Ngãi
Trao quà người nghèo - Phú Nhuận
Trao quà người nghèo - Gò Vấp Trao nhà tình thương - Quảng Ngãi
Đêm hội trăng rằm
70 71 ANNUAL REPORT 2013 SEEING THE QUALITY IN YOU
MERITS & AWARD
AWARD BESTOWED TITLE OF AWARD LEADING RETAILER TOP 50 QUALITY PRODUCT OF ASIA - PACIFIC 500 NATIONAL BRAND VIETNAMESE GOLDEN STAR ASIA - PACIFIC VIETNAMESE BEST BUSINESS PERFORMENCE ENTERPRISE
BEFORE 2013 YEAR 2013 9 PNJ received certificate and trophy for Vietnamese 17 PNJ was awarded Flag of Honor for “Strong and 1 PNJ received honor for the title of “Gold Golden Star Award in 2003-2012 excellent local Labor Union” by Hochimin Labor 25 Award-winner Vietnamese High- Quality of National Brand’’ 2011 Union (2003) Quality Products 2013 10 PNJ received certificate and trophy for Vietnam 2 Bestowed Title of National Brand by the Record as “the first enterprise to invest in 18 PNJ has been awarded as “Strong and excellent 26 Bestowed Title of National Brand by Government (2009-2011) large scale production and modern technology local Labor Union” by Central Committee of the Government 2013 in jewelry processing” (2007) Hochiminh Communist Party (1997-2011) 3 Award-winner of 16 consecutive Titles of 27 PNJ was awarded a Merit for 25th Vietnamese High-Quality Products 11 The President of the State awarded PNJ with 19 PNJ Annual report was in top 50 best AR of 2012 anniversary (2008-2013) by the Third-Class Independence Medal (June 12, (07/2012) Vietnam Prime Minister. 4 PNJ became on of 3 Vietnamese enterprises 2008) to receive the award for Quality Product of 20 Ms. Cao Thi Ngoc Dung- CEO was awarded First 28 Award-winner Vietnamese Golden Asia-Pacific 2011 12 The President of the State awarded PNJ Class Labor Medal Star 2013 with First-, Second-, and Third-Class Labor 5 PNJ joined top 50 Vietnamese Best Business Medal in 1995, 2000, and 2003, respectively 21 Ms. Cao Thi Ngoc Dung was the only female 29 Receiving title “The Largest Golden Performance Enterprise (19/06/2013) entrepreneur in top 5 entrepreneurs that awarded Bandanna in Vietnam”. claimed by 13 PNJ became leader and receiving Government international Enrst and Young entrepreneur of Vietnam Guinness Record Book 6 PNJ join the rank of 500 Leading Retailer in Flag of Honor (2002) the year Asia-Pacific and top 3 biggest retailer in 30 PNJ sponsor exclusive national gift Vietnam (2003-2012) 14 PNJ was granted City Flag of Honor for 20 22 Ms. Cao Thi Ngoc Dung- CEO received award for for Vietnamese Candidate in Miss year development (1998-2008) by City Peo- 50 pioneers published by Vnexpress (16/10/2012) Universe 2013 7 Vietnamese only enterprise that ranked in ple’s Committee top 16 of 500 worldwide largest manufacturer 23 Cao Thi Ngoc Dung- top 10 successful female 31 Receiving merit from Minister of and retailer published by Plimsoll (England) 15 PNJ was granted Flag of Honor for “Building entrepreneur of 2013, published by Forbes Science & Technology Department 2012 strong Local Communist Party” by Vietnam- Magazine for applying new creative modern ese Communist Party (1995-1999) technology in manufaturing 8 PNJ received certificate and trophy for Strong Brands in 2006 and 2007 16 PNJ Labor Union was awarded with Third-Class Labor Medal
72 73 SEEING THE QUALITY IN YOU
THE COMPANY
Phu Nhuan Jewelry Joint Stock Company (“the Company”) is a shareholding company incorporatedunder the Law on Enterprise of Vietnam pursuant to the Business Registration Certificate No. 0300521758 issued by the Department of Planning and Investment of Ho Chi Minh City on 2 January 2004, as amended.
The Company was listed on the Ho Chi Minh City Stock Exchange (“HOSE”) from 23 March 2009 pursuant to Decision No. 129/DKNY issued by the General Director of HOSE on 26 December 2008.
The current principal activities of the Company are to trade gold, silver, jewelry and gemstones, and to import and export jewelry in gold, silver and gemstones.
The Company’s head office is located at 170E Phan Dang Luu Street, Phu Nhuan District, Ho Chi Minh City, Vietnam. In addition, the Company also has one hundred and sixty five(165) retail shops located at various provinces in Vietnam.
BOARD OF DIRECTORS
Members of the Board of Directors during the year and at the date of this report are:
Mrs Cao Thi Ngoc Dung Chairwoman MrNguyen Vu Phan Vice Chairman Mrs Nguyen Thi Cuc Member Mr Nguyen Tuan Quynh Member Mrs Nguyen Thi Bich Ha Member Mrs Pham Vu Thanh Giang Member Mrs Nguyen Thi Huong Giang Member appointed on 2 April 2013 Mr Andy Ho Member resigned on 2 April 2013
BOARD OF SUPERVISION
Members of the Board of Supervision during the year and at the date of this report are:
Mr Pham Van Tan Head of the Board of Supervision Mrs Nguyen Ngoc Hue Member Mr Tran Van Dan Member
FINANCIAL STATEMENTS 2013
75 ANNUAL REPORT 2013 SEEING THE QUALITY IN YOU
CONSOLIDATED FINANCIAL STATEMENTS 2013
MANAGEMENT Management is responsible for ensuring that proper accounting records are kept which disclose, with Members of the Management during the year and at the date of this report are: reasonable accuracy at any time, the consolidated financial position of the Group and to ensure that the accounting records comply with the applied accounting system. It is also responsible for safeguarding Mrs Cao Thi Ngoc Dung General Director the assets of the Group and hence for taking reasonable steps for the prevention and detection of fraud Mr Le Huu Hanh Deputy General Director and other irregularities. Mrs Nguyen Thi Cuc Deputy General Director Mr Nguyen Vu Phan Deputy General Director Management confirmed that it has complied with the above requirements in preparing the accompanying Mrs Pham Thi My Hanh Deputy General Director consolidated financial statements.
LEGAL REPRESENTATIVE STATEMENT BY MANAGEMENT
The legal representative of the Company during the year and at the date of this report is Mrs Cao Thi Ngoc Dung. Management does hereby state that, in its opinion, the accompanying consolidated financial statements give a true and fair view of the consolidated financial position of the Group as at 31 December 2013and of the consolidated results of its operations and its consolidated cash flows for the year then ended in accordance with Vietnamese Accounting Standards, Vietnamese Enterprise Accounting System and the statutory requirements relevant to preparation and presentation of consolidated financial statements. AUDITORS
The auditor of the Company is Ernst & Young Vietnam Limited. For and on behalf of management Management of Phu Nhuan Jewelry Joint Stock Company (“the Company”) is pleased to present its report and the consolidated financial statements of the Company and its subsidiaries (“the Group”) for the year ended 31 December 2013.
CAO THI NGOC DUNG General Director MANAGEMENT’S RESPONSIBILITY IN RESPECT OF THE CONSOLIDATED FINANCIAL STATEMENTS
Management is responsible for the consolidated financial statements of each financial year which give a true and fair view of the consolidated state of affairs of the Group and of the consolidated results of its operationsand its consolidated cash flows for the year. In preparing those consolidated financial statements, management is required to:
- Select suitable accounting policies and then apply them consistently; - Make judgements and estimates that are reasonable and prudent; - State whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the consolidated financial statements; and - Prepare the consolidated financial statements on the going concern basis unless it is inappropriate to presume that the Group will continue its business.
76 77 ANNUAL REPORT 2013 SEEING THE QUALITY IN YOU
CONSOLIDATED FINANCIAL STATEMENTS 2013
INDEPENDENT AUDITORS’ REPORT CONSOLIDATED BALANCE SHEET as at 31 December 2013 VND To: The Shareholdersof Phu Nhuan Jewelry Joint Stock Company
We have audited the accompanying consolidated financial statements of Phu Nhuan Jewelry Joint Stock Company and its subsidiaries (“the Group”) as prepared on 11 March 2014 and set out on pages 5 to 43 which comprise the consolidated balance sheet as at 31 December 2013, and the consolidated income statement and consolidated cash flow statement for the year then ended, and the notes thereto.
Management’s Responsibility Management is responsible for the preparation and fair presentation of these consolidated financial statements in accordance with Vietnamese Accounting Standards, Vietnamese Enterprise Accounting System and the statutory requirements relevant to preparation and presentation of consolidated financial statements, and for such internal control as management determines is necessary to enable the preparation and presentation of consolidated financial statements that are free from material misstatement, whether due to fraud or error.
Auditors’ Responsibility Our responsibility is to express an opinion on these consolidated financial statements based on our audit. We conducted our audit in accordance with Vietnamese Standards on Auditing. Those standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the consolidated financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the consolidated financial 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 entity'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 entity's internal control. An audit also includes evaluatwing 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.
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, in all material respects, of the consolidated financial position of the Group as at 31 December 2013, and of the consolidated results of its operations and its consolidated cash flows for the year then ended in accordance with Vietnamese Accounting Standards, Vietnamese Enterprise Accounting System and the statutory requirements relevant to preparation and presentation of consolidated financial statements.
Mai Viet Hung Tran Lê Vu Truong Deputy General Director Auditor Audit Practicing Registration Certificate Audit Practicing Registration Certificate No. 0048-2013-004-1 No. 1588-2013-004-1
Ho Chi Minh City, Vietnam 11 March 2014
78 79 ANNUAL REPORT 2013 SEEING THE QUALITY IN YOU
CONSOLIDATED FINANCIAL STATEMENTS 2013
CONSOLIDATED BALANCE SHEET as at 31 December 2013 (Continued) CONSOLIDATEDINCOM STATEMENT for the year ended 31 December 2013 VND VND
OFF BALANCE SHEET ITEM
Dương Quang Hai Đang Thi Lai Cao Thi Ngoc Dung Dương Quang Hai Đang Thi Lai Cao Thi Ngoc Dung Preparer Chief Accountant General Director Preparer Chief Accountant General Director
80 81 ANNUAL REPORT 2013 SEEING THE QUALITY IN YOU
CONSOLIDATED FINANCIAL STATEMENTS 2013
CONSOLIDATED CASH FLOW STATEMENT (continued) for the year ended 31 December 2013 CONSOLIDATED CASH FLOW STATEMENT (continued) for the year ended 31 December 2013 VND VND
Dương Quang Hai Đang Thi Lai Cao Thi Ngoc Dung Preparer Chief Accountant General Director
82 83 ANNUAL REPORT 2013 SEEING THE QUALITY IN YOU
CONSOLIDATED FINANCIAL STATEMENTS 2013
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENT as at and for the year ended 31 December 2013 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENT (continued) as at and for the year ended 31 December 2013
1. CORPORATE INFORMATION 2. BASIS OF PREPARATION Phu Nhuan Jewelry Joint Stock Company (“the Company”) is a shareholding company incorporated under the Law on Enterprise of Vietnam pursuant to the Business Registration Certificate No. 0300521758 2.1 ACCOUNTING STANDARDS AND SYSTEM issued by the Department of Planning and Investment of Ho Chi Minh City on 2 January 2004, as amended. The consolidated financial statements of the Company and its subsidiaries (“the Group”), expressed in Vietnam dong (“VND”), are prepared in accordance with Vietnamese Enterprise Accounting System The Company was listed on the Ho Chi Minh City Stock Exchange (“HOSE”) from 23 March 2009 and Vietnamese Accounting Standards (“VAS”) issued by the Ministry of Finance as per: pursuant to Decision No. 129/DKNY issued by the General Director of HOSE on 26 December 2008. - Decision No. 149/2001/QD-BTC dated 31 December 2001 on the Issuance and Promulgation of Four The current principal activities of the Company are to trade gold, silver, jewelry and gemstones, and to Vietnamese Accounting Standards (Series 1); import and export jewelry in gold, silver and gemstones. - Decision No. 165/2002/QD-BTC dated 31 December 2002 on the Issuance and Promulgation of Six Vietnamese Accounting Standards (Series 2); The Company’s head office is located at 170E Phan Dang Luu Street, Phu Nhuan District, Ho Chi Minh - Decision No. 234/2003/QD-BTC dated 30 December 2003 on the Issuance and Promulgation of Six City, Vietnam. In addition, the Company also has one hundred and sixty five(165) retail shops located Vietnamese Accounting Standards (Series 3); in various provinces in Vietnam. - Decision No. 12/2005/QD-BTC dated 15 February 2005 on the Issuance and Promulgation of Six Vietnamese Accounting Standards (Series 4); and The number of the Group’s employees as at 31 December 2013was 2,653 (31 December 2012: 2,172). - Decision No. 100/2005/QD-BTC dated 28 December 2005 on the Issuance and Promulgation of Four Vietnamese Accounting Standards (Series 5). CORPORATE STRUCTURE Accordingly, the accompanying consolidated balance sheet, consolidated income statement, consolidated The Company’s corporate structure includes three subsidiaries, as follows: cash flow statement and related notes, including their utilisation are not designed for those who are not informed about Vietnam’s accounting principles, procedures and practices and furthermore are not Saigon Fuel Joint Stock Company (“SFC”) is a shareholding company incorporated under the Law on intended to present the financial position and results of operations and cash flows in accordance with Enterprise of Vietnam pursuant to the Business Registration Certificate No. 0300631013 issued by the accounting principles and practices generally accepted in countries other than Vietnam. Department of Planning and Investment of Ho Chi Minh City on 20 June 2000. SFC’s registered head office is located at 1A Pham Ngoc Thach Street, Ben Nghe Ward, District 1, Ho Chi Minh City, 2.2 APPLIED ACCOUNTING DOCUMENTATION SYSTEM Vietnam. SFC’s principal activities are to trade oil and gas products, to trade tools, supplies and machineries for oil and gas, to produce and trade agriculture products, to import, produce and trade wooden products, The Group’s applied accounting documentation system is the General Journal system. and to provide transportation service, rental and construction services. On 5 July 2013, the Company received dividend under bonus shares from SFC. Accordingly, the Company increased its ownership 2.3 FISCAL YEAR interest in SFC from 49.99% to 50.02%, and SFC became its subsidiary from that date. The Group’s fiscal year applicable for the preparation of its consolidated financial statements starts on CAO Fashion Company Limited (“CFC”), a one-member limited liability company, was established under 1 January and ends on 31 December. the Law on Enterprise of Vietnam pursuant to the Business Registration Certificate No. 0309279212 issued by the Department of Planning and Investment of Ho Chi Minh City on 14 August 2009. CFC’s 2.4 ACCOUNTING CURRENCY registered head office is located at 170E Phan Dang Luu Street, Phu Nhuan District, Ho Chi Minh City, Vietnam. CFC’s principal activities are to produce and trade fashion products, silver and gold jewellery, The consolidated financial statements are prepared in VND which is also the Group’s accounting currency. and arts and crafts products, and to import and export art and craft products. 2.5 BASIS OF CONSOLIDATION PNJ Laboratory Company Limited (“PLC”), a one-member limited liability company, was established under the Law on Enterprise of Vietnam pursuant to the Business Registration Certificate No. 0310521330 The consolidated financial statements comprise the financial statements of the Company and its issued by the Department of Planning and Investment of Ho Chi Minh City on 16 December 2010. subsidiariesfor the year ended31 December 2013. PLC’s registered head office is located at 205 Phan Dang Luu Street, Phu Nhuan District, Ho Chi Minh Subsidiariesare fully consolidated from the date of acquisition, being the date on which the Group City, Vietnam. PLC’s principal activities are to provide jewellery inspection and consultancy services. obtains control, and continued to be consolidated until the date that such control ceases. The financial statements of the subsidiaries are prepared for the same reporting year as the parent company, using consistent accounting policies. All intra-company balances, income and expenses and unrealised gains or losses resulting from intra-company transactions are eliminated in full. Minority interests represent the portion of profit or loss and net assets not held by the Group and are presented separately in the consolidated income statement and within equity in the consolidated balance sheet, separately from parent shareholders’ equity.
84 85 ANNUAL REPORT 2013 SEEING THE QUALITY IN YOU
CONSOLIDATED FINANCIAL STATEMENTS 2013
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENT (continued) as at and for the year ended 31 December 2013 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENT (continued) as at and for the year ended 31 December 2013
3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES When fixed assets are sold or retired, their cost and accumulated depreciation or amortization are removed from the consolidated balance sheet and any gain or loss resulting from their disposal is 3.1 CASH AND CASH EQUIVALENTS included in the consolidated income statement.
Cash and cash equivalents comprise cash on hand, cash at banks, gold, and short-term, highly liquid Land use right is recorded as an intangible fixed asset on the consolidated balance sheet when the investments with an original maturity of less than three months that are readily convertible into known Group obtained the landuse right certificates. The costs of land use right comprise all directly attribut- amounts of cash and that are subject to an insignificant risk of change in value. able costs of bringing the land lot to the condition available for intended use
3.2 RECEIVABLES 3.5 DEPRECIATION AND AMORTIZATION
Receivables are presented in the consolidated financial statements at the carrying amounts due from Depreciation and amortization of tangible fixed assets and intangible fixed assets are calculated on a customers and other debtors, after provision for doubtful debts. straight-line basis over the estimated useful life of each asset as follows:
The provision for doubtful debts represents amounts of outstanding receivables at the balance sheet Buildings and structures 3 - 25 years date which are doubtful of being recovered. Increases and decreases to the provision balance are Machinery and equipment 3 - 15 years recorded as general and administrative expense in the consolidated income statement. Motor vehicles 4 - 10 years Office equipment 3 - 8 years 3.3 INVENTORIES Computer software 3 years
Inventories are stated at the lower of cost incurred in bringing each product to its present location and 3.6 INVESTMENT PROPERTIES condition, and net realisable value. Investment properties are stated at cost including transaction costs less accumulated depreciation. Net realisable value represents the estimated selling price in the ordinary course of business less the Subsequent expenditure relating to an investment property that has already been recognized is added estimated costs to complete and the estimated costs necessary to make the sale. to the net book value of the investment property when it is probable that future economic benefits, in excess of the originally assessed standard of performance of the existing investment property, will flow The perpetual method is used to record inventories, which are valued as follows: to the Group. Depreciation of investment properties are calculated on a straight-line basis over the estimated useful life of each asset as follows: Merchandises, consumables, and - cost of purchase on a weighted average basis. raw materials Land use rights 10 years Finished goods and work-in process - cost of direct materials and labour plus attributable Buildings 10 years manufacturing overheads based on the normal oper ating capacity on a weighted average basis. Investment properties are derecognised when either they have been disposed of or when the investment properties are permanently withdrawn from use and no future economic benefit is expected from its Provision for obsolete inventories disposal. The difference between the net disposal proceeds and the carrying amount of the assets is An inventory provision is created for the estimated loss arising due to the impairment of value (through recognised in the consolidated income statement in the period of retirement or disposal. diminution, damage, obsolescence, etc.) of merchandise goods, raw materials, finished goods, and other inventories owned by the Group, based on appropriate evidence of impairment available at the Transfers are made to investment properties when, and only when, there is a change in use, evidenced balance sheet date. by ending of owner-occupation, commencement of an operating lease to another party or ending of construction or development. Transfers are made from investment properties when, and only when, Increases and decreases to the provision balance are recorded into the cost of goods sold account in there is change in use, evidenced by commencement of owner-occupation or commencement of the consolidated income statement. development with a view to sale. The transfer from investment property to owner-occupied property or inventories does not change the cost or the carrying value of the property for subsequent accounting at 3.4 FIXED ASSETS the date of change in use.
Tangible and intangible fixed assets are stated at cost less accumulated depreciation and amortization. 3.7 BORROWING COSTS The cost of a fixed asset comprises its purchase price and any directly attributable costs of bringing the fixed asset to working condition for its intended use. Borrowing costs consist of interest and other costs that an entity incurs in connection with the borrowing of funds and are recorded as expense during the period in which they are incurred. Expenditures for additions, improvements and renewals are added to the carrying amount of the assets and expenditures for maintenance and repairs are charged to the consolidated income statement as incurred.
86 87 ANNUAL REPORT 2013 SEEING THE QUALITY IN YOU
CONSOLIDATED FINANCIAL STATEMENTS 2013
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENT (continued) as at and for the year ended 31 December 2013 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENT (continued) as at and for the year ended 31 December 2013
3.8 PREPAID EXPENSES 3.12 PAYABLES AND ACCRUALS
Prepaid expenses are reported as short-term or long-term prepaid expenses on the consolidated Payables and accruals are recognised for amounts to be paid in the future for goods and services received, balance sheet and are amortized over the period for which the amounts are paid or the period in which whether or not billed to the Group. economic benefits are generated in relation to these expenses. 3.13 FOREIGN CURRENCY TRANSACTIONS The following types of expenses are recorded as long-term prepaid expenses and are amortised to the consolidated income statement. The Group follows the guidance under Vietnamese Accounting Standard No. 10 - Effects of Changes in Foreign Exchange Rates and CircularNo. 179/2012/TT-BTC providing guidance on recognition, measurement, - Prepaid rental includes land and shop rental prepaid for many years under operating lease contracts treatment for foreign exchange differences issued by the Ministry of Finance on 24 October 2012 in relation and are amortized over the lease term; to foreign currency transactions as applied consistently in prior year. - Tools and consumables with large value issued in use and can be used for more than one year; and - Others are amortized to the consolidated income statement over 2 to 3 years. Transactions in currencies other than the Group’s reporting currency of VND are recorded at the exchange rates ruling at the date of the transaction. At the end of the year, monetary assets and liabilities denominated in foreign currencies are translated at buying exchange rate announced by the commercial bank where the 3.9 BUSINESS COMBINATIONS AND GOODWILL Group maintains bank accounts ruling at the balance sheet date. All realised and unrealised foreign exchange differences are taken to the consolidated income statement. Business combinations are accounted for using the purchase method. The cost of a business combination is measured as the fair value of assets given, equity instruments issued and liabilities incurred or assumed 3.14 TREASURY SHARES at the date of exchange plus any costs directly attributable to the business combination. Identifiable assets and liabilities and contingent liabilities assumed in a business combination are measured initially at fair Own equity instruments which are reacquired (treasury shares) are recognised at cost and deducted from values at the date of business combination. equity. No gain or loss is recognised in profit or loss upon purchase, sale, issue or cancellation of the Group’s own equity instruments. After initial recognition, goodwill is measured at cost less accumulated amortisation. Amortisation of goodwill is calculated on a straight-line basis over 10 years during which the source embodying 3.15 APPROPRIATION OF NET PROFITS economic benefits are covered by the Group. Net profit after tax is available for appropriation to shareholders after approval in the shareholders’ meeting, 3.10 INVESTMENTS IN ASSOCIATES and after making appropriation to reserve funds in accordance with the Group’s Charter and Vietnam’s regulatory requirements. The Group’s investment in its associates is accounted for using the equity method of accounting. An associate The Group maintains the following reserve funds which are appropriated from the Group’s net profit as is an entity in which the Group has significant influence that is neither subsidiaries nor joint ventures. The proposed by the Board of Directors and subject to approval by shareholders at the annual general meeting. Group generally deems they have significant influence if they have over 20% of the voting rights. Financial reserve fund Under the equity method, the investment is carried in the consolidated balance sheet at cost plus post This fund is set aside to protect the Group’s normal operations from business risks or losses, or to prepare for acquisition changes in the Group’s share of net assets of the associates. Goodwill arising on acquisition of the unforeseen losses or damages for objective reasons and force majeure, such as fire, economic and financial associate is included in the carrying amount of the investment and is amortized over a 10-year period. The turmoil of the country or elsewhere. consolidated income statement reflects the share of the post-acquisition results of operation of the associate. Investment and development fund The share of post-acquisition profit (loss) of the associates is presented on face of the consolidated income This fund is set aside for use in the Group’s expansion of its operation or in-depth investments. statement and its share of post-acquisition movements in reserves is recognized in reserves. The cumulative post-acquisition movements are adjusted against the carrying amount of the investment. Dividends receivable Bonus and welfare fund from associates reduce the carrying amount of the investment. This fund is set aside for the purpose of pecuniary rewarding and encouraging, common benefits and improvement of the employees’ benefits and is recognised as a liability. The financial statements of the associates are prepared for the same reporting period and use the same accounting policies as the Group. Where necessary, adjustments are made to bring the accounting policies 3.16 EARNINGSPER SHARE in line with those of the Group. Basic earningsper share amounts are calculated by dividing net profitafter tax for the period attributable to 3.11 INVESTMENTS IN SECURITIES AND OTHER INVESTMENTS ordinary shareholders of the Company by the weighted average number of ordinary shares outstanding during the year. Investments in securities and other investments are stated at their acquisition costs. Provision is made for any diminution in value of the investments at the balance sheet date in accordance with Diluted earningsper share amounts are calculated by dividing the net profitafter tax attributable to ordinary the guidance under the Circular No. 228/2009/TT-BTC issued by the Ministry of Finance on 7 December equity holders of the Company (after adjusting for interest on the convertible preference shares) by the weighted 2009 and the Circular No. 89/2013/TT-BTC issued by the Ministry of Finance on 28 June 2013. Increases and average number of ordinary shares outstanding during the year plus the weighted average number of ordinary decreases to the provision balance are recorded as finance expenses in the consolidated income statement. shares that would be issued on conversion of all the dilutive potential ordinary shares into ordinary shares.
88 89 ANNUAL REPORT 2013 SEEING THE QUALITY IN YOU
CONSOLIDATED FINANCIAL STATEMENTS 2013
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENT (continued) as at and for the year ended 31 December 2013 THUYẾT MINH BÁO CÁO TÀI CHÍNH HỢP NHẤT (cho năm tài chính kết thúc ngày 31 tháng 12 năm 2013)
3.17 REVENUE RECOGNITION Deferred income tax assets and liabilities are measured at the tax rates that are expected to apply in the period when the asset is realised or the liability is settled based on tax rates and tax laws that have been enacted at Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Group and the balance sheet date. the revenue can be reliably measured. Revenue is measured at the fair value of the consideration received or receivable, excluding trade discount, rebate and sales return. The following specific recognition criteria must Deferred income tax is charged or credited to the consolidated income statement, except when it relates to also be met before revenue is recognised: items recognised directly to equity, in which case the deferred income tax is also dealt with in the equity account.
Sale of goods Deferred income tax assets and liabilities are offset when there is a legally enforceable right for the Group to Revenue is recognised when the significant risks and rewards of ownership of the goods have passed to the offset current income tax assets against current income tax liabilities and when they relate to income taxes buyer, usually upon the delivery of the goods. levied by the same taxation authority on either the same taxable entity or when the Group intends either settle current income tax liabilities and assets on a net basis or to realise the assets and settle the liabilities simul- Rendering of services taneously, in each future period in which significant amounts of deferred income tax liabilities or assets are Revenue is recognised when the service has been rendered. expected to be settled or recovered.
Interest Revenue is recognised as the interest accrues unless collectability is in doubt. 3.19 FINANCIAL INSTRUMENTS Dividends Income is recognised when the Group’s entitlement as an investor to receive the dividend is established. Financial instruments – initial recognition and presentation
3.18 TAXATION Financial assets Financial assets within the scope of Circular No. 210/2009/TT-BTC providing guidance for the adoption Current income tax in Vietnam of the International Financial Reporting Standards on presentation and disclosures of Current income tax assets and liabilities for the current and prior yearsare measured at the amount expected to financial instruments (“Circular 210”) are classified, for disclosures in the notes to the consolidated be recovered from or paid to the taxation authorities. The tax rates and tax laws used to compute the amount financial statements, as financial assets at fair value through profit or loss, held-to-maturity investments, loans are those that are enacted as at the balance sheet date. and receivables or available-for-sale financial assets as appropriate. The Group determines the classification of its financial assets at initial recognition. Current income tax is charged or credited to the consolidated income statement, except when it relates to items recognised directly to equity, in which case the current income tax is also dealt with in equity. All financial assets are recognised initially at cost plus directly attributable transaction costs.
Current income tax assets and liabilities are offset when there is a legally enforceable right for the Group to The Group’s financial assets include cash, cash equivalents, short-term deposits, and trade and other receivables. offset current income tax assets against current income tax liabilities and when the Group intends to settle its current income tax assets and liabilities on a net basis. Financial liabilities Financial liabilities within the scope of Circular 210 are classified, for disclosures in the notes to Deferred income tax the consolidated financial statements, as financial liabilities at fair value through profit or loss or financial Deferred income tax is provided using the liability method on temporary differences at the balance sheet date liabilities measured at amortised cost as appropriate. The Group determines the classification of its financial between the tax base of assets and liabilities and their carrying amounts for financial reporting purposes. liabilities at initial recognition.
Deferred income tax liabilities are recognised for all taxable temporary differences, except where the deferred All financial liabilities are recognised initially at cost plus directly attributable transaction costs. income tax liability arises from the initial recognition of an asset or liability in a transaction which at the time of the related transaction affects neither the accounting profit nor taxable profit or loss. The Group’s financial liabilities include trade and other payables, and loans.
Deferred income tax assets are recognised for all deductible temporary differences, carried forward unused Financial instruments – subsequent re-measurement tax credit and unused tax losses, to the extent that it is probable that taxable profit will be available against There is currently no guidance in Circular 210 in relation to subsequent re-measurement of financial instruments. which deductible temporary differences, carried forward unused tax credit and unused tax losses can Accordingly, the financial instruments are subsequently re-measured at cost. be utilised, except where the deferred income tax asset in respect of deductible temporary difference which arises from the initial recognition of an asset or liability which at the time of the related transaction, affects Offsetting of financial instruments neither the accounting profit nor taxable profit or loss. Financial assets and financial liabilities are offset and the net amount reported in the consolidated balance sheet if, and only if, there is a currently enforceable legal right to offset the recognised amounts and there is an The carrying amount of deferred income tax assets is reviewed at each balance sheet date and reduced to intention to settle on a net basis, or to realise the assets and settle the liabilities simultaneously. the extent that it is no longer probable that sufficient taxable profit will be available to allow all or part of the deferred income tax asset to be utilised. Previously unrecognised deferred income tax assets are re-assessed at each balance sheet date and are recognised to the extent that it has become probable that future taxable profit will allow the deferred income tax assets to be recovered. 90 91 A LEADING JEWELRY MANUFACTURER AND RETAILER IN ASIA, MAINTAINING LEADING POSITION IN EVERY SINGLE MARKET SEGMENT THAT PNJ HAS TARGETED IN VIETNAM.
( Vision to 2022 ) ANNUAL REPORT 2013 SEEING THE QUALITY IN YOU
CONSOLIDATED FINANCIAL STATEMENTS 2013
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENT (continued) as at and for the year ended 31 December 2013 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENT (continued) as at and for the year ended 31 December 2013
4. BUSINESS COMBINATIONS 5. CASH AND CASH EQUIVALENTS VND On 5 July 2013, the Company received dividend under bonus shares from SFC. Accordingly, the Company increased its ownership interest in SFC from 49.99% to 50.02%, and SFC became its subsidiary from that date. The provisional fair values of the identifiable assets and liabilities of SFC at the acquisition date were as follows:
6. TRADE RECEIVABLES VND
Details of movements of provision for doubtful debts VND
The accounting recognised in the 31 December 2013 consolidated financial statements was based on a provisional assessment of fair value as the Company has not completed its valuation relating to the acquired assets as at the issued date of these reports.
94 95 ANNUAL REPORT 2013 SEEING THE QUALITY IN YOU
CONSOLIDATED FINANCIAL STATEMENTS 2013
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENT (continued) as at and for the year ended 31 December 2013 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENT (continued) as at and for the year ended 31 December 2013
7. INVENTORIES 9. TANGIBLE FIXED ASSETS D VND VN (Note 19).
Inventories of VND 200,000,000,000 were pledged as a collateral for short-term loans obtained from Ho Chi Minh City Housing Development Commercial Joint Stock Bank – Ho Chi Minh branch (Note 15).
8. OTHER CURRENT ASSETS
VND Buildings and machineries with the carrying amount of VND 15,550,763,206 were pledged to obtain loans from commercial banks required as assets fixed tangible of (*) During the year, Group has reclassified those assets that no longer satisfy recognition criteria by the Circular No.45/2013/TT-BTC issued by the Ministry of Finance on 25 April 2013, providing the guidance for management, use and of fixed assets, into long-term prepaid expenses. calculation of depreciation 96 97 ANNUAL REPORT 2013 SEEING THE QUALITY IN YOU
CONSOLIDATED FINANCIAL STATEMENTS 2013
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENT (continued) as at and for the year ended 31 December 2013 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENT (continued) as at and for the year ended 31 December 2013
10. INTANGIBLE FIXED ASSETS 11. INVESTEMENT PROPERTIES
VND VND
The fair value of the investment properties was not formally assessed and determined as at 31 December 2013. However, it is management’s assessment that these properties’ market values are Land use rights with the carrying amount of VND 69,152,139,738 were pledged to obtain bank loans higher than their carrying value as at the balance sheet date. (Note 19).
98 99 ANNUAL REPORT 2013 SEEING THE QUALITY IN YOU
CONSOLIDATED FINANCIAL STATEMENTS 2013
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENT (continued) as at and for the year ended 31 December 2013 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENT (continued) as at and for the year ended 31 December 2013
12. LONG-TERM INVESTMENTS
12.1 INVESTMENTS IN ASSOCIATES 12.2 OTHER LONG-TERM INVESTMENTS
VND VND
VND
Dong A Land Joint Stock Company (“DAL”) is a shareholding company incorporatedunder the Law i) DAB’s shares were pledged to obtain loans from commercial banks (Note 15). on Enterprise of Vietnam pursuant to the Business Registration Certificate No. 4103001739 issued by the Department of Planning and Investment of Ho Chi Minh City on 24 July 2003. DAL’s registered (ii) This represents the advance under Business Cooperation Contract with Vietnam Festival Travel head office is located at 43R/12, Ho Van Hue Street, Ward 9, Phu Nhuan District, Ho Chi Minh City, Company Limited and Dong A Land Joint Stock Company to develop a real estate project located at 8 Vietnam. DAL’s principal activities are to provide design services, project management, construction Hoang Minh Giam Street, Phu Nhuan District, Ho Chi Minh City, Vietnam. services, to provide real estate consulting services and real estate agency, and to trade houses and interior products. 13. LONG-TERM PREPAID EXPENSES
VND
100 101 ANNUAL REPORT 2013 SEEING THE QUALITY IN YOU
CONSOLIDATED FINANCIAL STATEMENTS 2013
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENT (continued) as at and for the year ended 31 December 2013 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENT (continued) as at and for the year ended 31 December 2013
14. GOODWILL (i) Details of short-term loans from banks are as follows:
Movements in goodwill during the year are as follows:
VND
15. SHORT-TERM LOANS
VND
102 103 ANNUAL REPORT 2013 SEEING THE QUALITY IN YOU
CONSOLIDATED FINANCIAL STATEMENTS 2013
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENT (continued) as at and for the year ended 31 December 2013 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENT (continued) as at and for the year ended 31 December 2013
(ii) Details of individual loans are as follows: 19. LONG-TERM LOANS VND
Details of the long-term loans from the banks are as follows: 16. TRADE PAYABLES VND
17. STATUTORY OBLIGATIONS
VND
18. OTHER PAYABLES
VND
104 105 ANNUAL REPORT 2013 SEEING THE QUALITY IN YOU
CONSOLIDATED FINANCIAL STATEMENTS 2013
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENT (continued) as at and for the year ended 31 December 2013 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENT (continued) as at and for the year ended 31 December 2013
20. OWNERS’ EQUITY 20.1 MOVEMENTS IN OWNERS’ EQUITY 20.2 CAPITAL TRANSACTIONS WITH OWNERS AND DISTRIBUTION OF DIVIDENDS D
VN VND program. Based on the program,
“ESOP”) 20.3 SHARES – ORDINARY SHARES
20.4 EARNINGS PER SHARE
VND Companywould issue an additional 3,599,200 ordinary shares to its employees in accordance with the Shareholders’ Resolution No. 485/2012/ NQ-DHĐCD-CTY dated 25 April 2013, and the Board of Directors’ Resolution No. 955/2013/NQ-HDQT-CTY 12 September 2013. On 3 October 2013, the Company received an Official Letter No. 6171/UBCK-QLPH issued by the State Securities Commission,approving its issuance of new shares to its employees in accordance with the Employee Stock Ownership Plan ( 106 107 ANNUAL REPORT 2013 SEEING THE QUALITY IN YOU
CONSOLIDATED FINANCIAL STATEMENTS 2013
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENT (continued) as at and for the year ended 31 December 2013 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENT (continued) as at and for the year ended 31 December 2013
21. REVENUES 23. FINANCE EXPENSES 21.1 REVENUES FROM SALE OF GOODS AND RENDERING OF SERVICES VND VND
24. PRODUCTION AND OPERATING COSTS VND
21.2 FINANCE INCOME VND
25. CORPORATE INCOME TAX
The Group has the obligation to pay corporate income tax ("CIT") at the rate of 25% of taxable profits.
The tax returns filed by the Group are subject to examination by the tax authorities. As the application of tax laws and regulations is susceptible to varying interpretations, the amounts reported in the consolidated financial statements could change at a later date upon final determination by the tax authorities.
25.1 CIT EXPENSE 22. COSTS OF GOODS SOLD AND SERVICES RENDERED VND VND
108 109 ANNUAL REPORT 2013 SEEING THE QUALITY IN YOU
CONSOLIDATED FINANCIAL STATEMENTS 2013
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENT (continued) as at and for the year ended 31 December 2013 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENT (continued) as at and for the year ended 31 December 2013
25.2 CURRENT CIT 25.3 DEFERRED CIT
The current tax payable is based on taxable profit for the year. The taxable profit of the Group for the The following are the deferred tax assets and liabilities recognized by the Group, and the movements year differs from the profit as reported in the consolidated income statement because it excludes items thereon, during the current and prior reporting year. of income or expense that are taxable or deductible in other years and it further excludes items that are not taxable or deductible. The Group’s liability for current tax is calculated using tax rates that have VND been enacted at balance sheet date.
A reconciliation between the profit before tax and taxable profit is presented below:
VND
26. TRANSACTIONS WITH RELATED PARTIES
Significant transactions with related parties during the year were as follows: VND
Remuneration to members of the Board of Directors, the Board of Supervision and Management: VND
The outstanding balance due to arelated party as at 31December 2013was as follows: VND
110 111 ANNUAL REPORT 2013 SEEING THE QUALITY IN YOU
CONSOLIDATED FINANCIAL STATEMENTS 2013
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENT (continued) as at and for the year ended 31 December 2013 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENT (continued) as at and for the year ended 31 December 2013
27. OPERATING LEASE COMMITMENTS D VN The Group leases outlets under operating lease arrangements.The minimum lease commitment as at 31 December 2013 under the operating lease agreement is as follows:
VND
28. SEGMENT INFORMATION
The primary segment reporting format is determined to be business segments as the Group’s risks and rates of return are affected predominantly by differences in the products and services produced. The operating businesses are organized and managed consolidated according to the nature of the products and services provided, with each segment representing a strategic business unit that offers different products and serves different markets.
The Group is principally engaged in trading gold, silver, jewelry, accessories and gemstone; provision of jewelry inspection service, investment property, oil, and gasoline and gas cylinders.
Transfer prices between business segments are set on an arm’s length basis in a manner similar to transactions with third parties. Segment revenue, segment expense and segment results include transfers between business segments. Those transfers are eliminated in preparation of consolidated financial statements.
The Group operates in one geographical segment which is Vietnam. The following tables present revenue and profit certain assets liabilities information regarding the Group’s busin ess segment. 112 113 ANNUAL REPORT 2013 SEEING THE QUALITY IN YOU
CONSOLIDATED FINANCIAL STATEMENTS 2013
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENT (continued) as at and for the year ended 31 December 2013 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENT (continued) as at and for the year ended 31 December 2013
28. SEGMENT INFORMATION 29. FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES
D The Group’s principal financial liabilities comprise loans, trade and other payables. The main purpose of
VN these financial liabilities is to finance the Group’s operations. The Group has trade and other receivables, cash, cash equivalents and short-term deposits that arise directly from its operations. The Group does not hold or issue any derivative financial instruments
The Group is exposed to market risk, credit risk and liquidity risk.
Management reviews and agrees policies for managing each of these risks which are summarized below.
MARKET RISK
Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market prices. Market prices comprise four types of risk: interest rate risk, currency risk, commodity price risk and other price risk, such as equity price risk. Financial instruments affected by market risk include loans, depositsand available-for-sale investments.
The sensitivity analyses in the following sections relate to the position as at 31 December 2013and 31December2012.
Interest rate risk Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. The Group’s exposure to market risk for changes in interest rate relates primarily to the Group’s loans, deposits with floating interest rates.
The Group manages its interest rate risk by keeping close watch on relevant market situation, in order to contemplate and adapt its leverage level as well as financing strategies to the prevailing situation.
Interest rate sensitivity The following table demonstrates the sensitivity to a reasonably possible change in interest rates on that portion of loans.
With all other variables held constant, the Group’s profit before tax is affected through the impact on floating rate borrowings as follows:
VND
114 115 ANNUAL REPORT 2013 SEEING THE QUALITY IN YOU
CONSOLIDATED FINANCIAL STATEMENTS 2013
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENT (continued) as at and for the year ended 31 December 2013 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENT (continued) as at and for the year ended 31 December 2013
Foreign currency risk Commodity price risk
Foreign currency risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate The Group exposes to commodity price risk in relation to purchase of certain commodities. The Group because of changes in foreign exchange rates. The Group’s exposure to the risk of changes in foreign manages its commodity prices risk by keeping close watch on relevant information and situation of exchange rates relates primarily to the Group’s operating activities. commodity market in order to properly manage timing of purchases, production plans and inventories level. The Group does not employ any derivative financial instruments to hedge its commodity price risk. The Group does not employ any derivative financial instruments to hedge its foreign currency exposure. CREDIT RISK Foreign currency sensitivity Credit risk is the risk that counterparty will not meet its obligations under a financial instrument or customer The following table demonstrates the sensitivity to a reasonably possible change in the US$ and gold contract, leading to a financial loss. The Group is exposed to credit risk from its operating activities(primarily exchange rates with all other variables held constant, of the Group’s profit before tax (due to changes in the for trade receivables) and from its financing activities, including deposits with banks. fair value of monetary assets and liabilities). The Group’s exposure to foreign currency changes for all other currencies is not material. Trade receivables
Customer credit risk is managed by the Group based on its established policy, procedures and control relating VND to customer credit risk management. The Group’s exposure to credit risk in relation with receivables is mainly influenced by the individual characteristics of each customer. The Group mostly has cash sale which are not significantly exposured to the credit risk.
Outstanding customer receivables are regularly monitored. The requirement for impairment is analyzed at each reporting date on an individual basis for major clients. In view of the aforementioned and the fact that the Group’s trade receivables relate to a large number of diversified customers, there is no significant concentration of credit risk.
Bank deposits
The Group's bank balances are mainly maintained with well-known banks in Vietnam. Credit risk from balances with banks is managed in accordance with the Group’s policy. The Group’s maximum exposure to credit risk for the components of the consolidated balance sheet at each reporting dates are the carrying Equity price risk amounts as illustrated in Note 4. The Group evaluates the concentration of credit risk in respect to bank deposit as low. The Group’s listed and unlisted equity securities are susceptible to market price risk arising from uncertainty about future values of the investment securities. The Group manages equity price risk by placing a limit on LIQUIDITY RISK equity investments. The Board of Directors reviews and approves all equity investment decisions. The liquidity risk is the risk that the Group will encounter difficulty in meeting financial obligation due to As at 31 December 2013, the exposure to listed and unlisted equity securities at fair value was VND shortage of funds. The Group’s exposure to liquidity risk arises primarily from mismatches of maturities of 509,052,408,400 (31 December 2012: VND 502,441,408,400). A decrease of 10% in the value of the financial assets and liabilities. listed and unlisted securities could have an impact of approximately VND 50,905,240,840 (31 December 2012: VND 50,244,140,840) on the Group’s profit before tax, depending on whether or not the decline is The Group monitors its liquidity risk by maintaining a level of cash, cash equivalents and bank loans deemed significant or prolonged. An increase of 10% in the value of the listed and unlisted securities would increase adequate by management to finance the Group’s operations and to mitigate the effects of fluctuations in cash Group’s profit before tax by VND 50,905,240,840(31 December 2012: VND 50,244,140,840). flows.
116 117 ANNUAL REPORT 2013 SEEING THE QUALITY IN YOU
CONSOLIDATED FINANCIAL STATEMENTS 2013
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENT (continued) as at and for the year ended 31 December 2013 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENT (continued) as at and for the year ended 31 December 2013
The table below summarizes the maturity profile of the Group’s financial liabilities based on contractual 30. FINANCIAL ASSETS AND FINANCIAL LIABILITIES undiscounted payments: D VN
VND
COLLATERAL
The Group has pledged its inventories, fixed assets and DAB shares in order to fulfil the collateral require- ments for loans obtained from commercial banks (Notes 15 and 19).
The Group did not hold any collateral at 31 December 2013and 31 December 2012.
118 119 ANNUAL REPORT 2013 SEEING THE QUALITY IN YOU
CONSOLIDATED FINANCIAL STATEMENTS 2013
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENT (continued) as at and for the year ended 31 December 2013 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENT (continued) as at and for the year ended 31 December 2013
30. FINANCIAL ASSETS AND FINANCIAL LIABILITIES The fair value of the financial assets and liabilities are included at the amount at which the instrument could be exchanged in a current transaction between willing parties, other than in a forced or liquidation sale. D The fair value of the financial assets and liabilities had not yet been formally assessed and determined as at VN 31 December 2013 and 31 December 2012. However, management assessed that the fair values of these financial assets and liabilities were not materially different from their carrying value as at balance sheet date.
31. EVENTS AFTER THE BALANCE SHEET DATE
There have been no significant events occurring after the balance sheet date which would require adjustments or disclosures to be made in the consolidated financial statements.
Dương Quang Hai Đang Thi Lai Cao Thi Ngoc Dung Preparer Chief Accountant General Director
120 121 ANNUAL REPORT 2013 SEEING THE QUALITY IN YOU
PNJ DISTRIBUTION NETWORK PNJ'S DISTRIBUTION NETWORK MAP
HO CHI MINH City HA NOI
1 DIST. HAI BA TRƯNG DIST. PHAN THIET 11 DIST. 174 Le Thanh Ton 6A Tran Nhan Tong Co.opMart Phan Thiet 257 Le Đai Hanh Vincom Center (1st floor) 37B Tran Nhan Tong TP.PLEIKU Lotte Everich - La Đai Hanh 292 Hai Ba Trung TTTM Vincom Co.opMart Pleiku 140 Ong Ich Khiem Thuong xa TAX - Nguyen Hue 548 Bach Mai BUON MA THUOT 12 DIST. Citi Plaza - Nguyen Trai 58 Trieu Viet Vuong Co.opMart Buon Ma Thuot Co.opMart Nguyen Anh Thu Nowzone - 235 Nguyen Van Cu CAU GIAY DIST. LAM ĐONG TAN BINH DIST. 21Tran Quang Khai TTTM BigC Co.opMart Bao Loc 47-49 Ly Thuong Kiet Co.opMart Cong Quynh 256 Cau Giay 08 Hoa Binh, Đa Lat city 230B Le Van Sy Parkson Saigon Tourist ĐONG ĐA DIST. BINH PHUOC Maximark Cong Hoa 129 Chua Boc Co.opMart Binh Phuoc PHU NHUAN DIST. Tan Son Nhat Airport 52A-52B Nguyen Van Troi 136 Ton Đoc Thong TAY NINH 139 CMT8 159 Phan Đang Luu 5B10 Pham Ngoc Thach Co.opMart Tay Ninh 459 Truong Chinh Co.opMart Nguyen Kiem LONG BIEN DIST. BINH DUONG Parkson C&T Tan Son Nhat BigC Hoàng Van Thu 345 Ngoc Lam Co.opMart Binh Duong TAN PHU DIST. 338 Phan Đinh Phung BigC Savico 3A BinhDuong 237 Nguyen Son Co.opMart Rach Mieu BA ĐINH DIST. BigC Green Square BigC Phu Thanh 3 DIST. 30 Đoi Can BIEN HOA City BINH TAN DIST. 652 Nguyen Đinh Chieu 263 Kim Ma BigC Đong Nai BigC An Lac 305 Nguyen Đình Chieu HA ĐONG DIST. Co.op Mart Bien Hoa Co.op Mart Binh Tan Co.opMart Nguyễn Đinh Chieu Co.opMart Sai Gon 97 - 30/4 Street Q. GO VAP 4A Cao Thang THANH XUAN DIST. 105 - 1 Highway 362A Nguyen Van Nghi 132 CMT8 C12 Sieu thi Hapro 88A Mau Than 403 Thong Nhat HAI PHONG BA RIA-VUNG TAU 5 DIST. 21/3A Quang Trung 5 - 7 An Duong Vuong Parkson Hai Phong - TD Plaza Co.opMart Ba Ria BigC Go Vap Parkson Hung Vuong BigC Hai Phong VUNG TAU City BINH THANH DIST. 56 Cau Đat Co.opMart Vung Tau 6 DIST. 127A Đinh Tien Hoang 255A - 255B Hau Giang VINH City LONG AN 131 Hoang Hoa Tham BigC Vinh Co.opMart Long An 7 DIST. 197A Le Quang Đinh Lotte Mart VINH PHUC TIEN GIANG 201 Xo Viet Nghe Tinh BigC Vinh Phuc Co.opMart My Tho 8 DIST. 60 Xo Viet Nghe Tinh Co.opMart Tuy Ly Vuong Co.opMart Vinh Phuc BEN TRE THU ĐUC DIST. HAI DUONG Co.op Mart Ben Tre 9 DIST. 141 Vo Van Ngan Co.opMart Xa lo Ha Noi TTTM BigC VINH LONG City Co.opMart Thu Đuc 10 DIST. NAM ĐINH Co.op Mart Vinh Long CU CHI Maximark 3/2 BigC Nam Đinh CAN THO City CoopMart Cu Chi Co.opMart Ly Thuong Kiet HA TINH 46 Ngo Quyen HOC MON 132 Cach Mang Thang 8 Co.opMart Ha Tinh Co.opMart Can Tho 143/6 Nguyen Anh Thu 127 - 3/2 Street ĐA NANG City 118 Hai Ba Trung 477 Nguyen Tri Phương 70-72 Tran Phu - Hai Chau Dist. 88A Mau Than Co.opMart Phu Tho 123 Hung Vuong SOC TRANG BigC Mien Đong 77 Phan Chu Trinh Co.opMart Soc Trang BigC - Vinh Trung Plaza LONG XUYEN City 123 Hung Vương 63 Hai Ba Trưng Co.opMart Đa Nang Co.opMart Long Xuyen QUANG NGAI 234/3A Nguyen Trai PJS has nationwide retail network Co.opMart Quang Ngai BAC LIEU BINH ĐINH Co.op Mart Bac Lieu with 168 stores in 40 provinces Co.opMart Qui Nhơn KIEN GIANG THANH HOA 38 Hoang Hoa Tham PNJ also has more than BigC Thanh Hoa Co.opMart Kien Giang. HUE City TRA VINH 3,000 wholesale customers, ex- Co.opMart Hue Co.opMart Tra Vinh. porting to USA, Canada, Denmark, BigC Hue CA MAU Germany, Australia and Japan NHA TRANG City 4A Hung Vuong 94 Quang Trung 1F Hoang Thai Hieu Maximark Nha Trang
122 123 Phu Nhuan Jewelry Joint Stock Company 170E Phan Dang Luu Street, Ward 3, Phu Nhuan District, HCMC