Seeing the Quality in You Annual Report Pnj - 2014 Seeing the Quality in You
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SEEING THE QUALITY IN YOU ANNUAL REPORT PNJ - 2014 SEEING THE QUALITY IN YOU CONTENTS 6 VISION- MISSION 60 PERSONNEL ORGANIZATION & ENTERPRISE ADMINISTRATION 62 ORGANIZATION CHART 8 CORE VALUES 65 BOARD OF DIRECTORS 10 CHAIRWOMAN'S MESSAGE 68 BOARD OF MANAGEMENT 70 BOARD OF SUPERVISION 16 MILESTONES OF ESTABLISHMENT & DEVELOPMENT 72 SITUATION CORPORATE GOVERNANCE 22 CORPORATE REPORT 76 PRODUCTS & SERVICES 78 BRAND PNJ GOLD JEWELRY 24 BOARD OF DIRECTORS' REPORT 79 BRAND PNJSILVER 32 BOARD OF SUPPERVISION REPORT 80 BRAND CAO FINE JEWELLERY 38 BOARD OF MANAGEMENT REPORT 81 BRAND JEMMA AN OVERVIEW OF VIETNAM ECONOMIC SITUATION AND GOLD MARKET 42 IN 2014 52 2014 BUSINESS PERFORMANCE 82 ENTERPRISE CULTURE 54 KEY MISSIONS PERFORMANCE 84 PNJ CULTURAL IDENTITY 56 RISK MANAGEMENT 86 10TH ANNIVERSARY OF PNJ CHARITY FUND – A JOURNEY OF LOVE 57 FINANCIAL RATIOS 89 TYPICAL ACTIVITIES 58 SUBSIDIARIES’ PERFORMANCES 90 FINANCIAL STATEMENTS - 2014 CONCLUSION 135 PNJ DISTRIBUTION NETWORK 2 3 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 Registration License : 0300521758 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) BUSINESS LINES Manufacturing and trading gold, silver, precious stones, accessories and souvenirs Trading watches and gold bar Testing diamond, gemstone and precious metals House leasing base on Real Estate Business Law ANNUAL REPORT PNJ - 2014 SEEING THE QUALITY IN YOU VISION BECOMING THE LEADING JEWELRY PROCESSOR AND RETAILER IN ASIA MARKET AND SECURING NUMBER ONE POSITION IN THE SEGMENT OF MEDIUM AND HIGH-END JEWELRY IN VIETNAM MISSION PNJ BRINGS CUSTOMER PRIDE WITH ELEGANT, OUTSTANDING QUALITY JEWELRY PRODUCTS. 6 7 ANNUAL REPORT PNJ - 2014 SEEING THE QUALITY IN YOU 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 organi- zation ‘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 custom- ers’ 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 com- mit to create continuously, offer breakthrough solutions, produce outstanding products and services 8 9 CHAIRWOMAN’S MESSAGE Dear Value Shareholders, 2014 has passed with many ups, downs and Meeting of Shareholders’ resolutions, ensuring challenges for world and Vietnam economics. the operation is in accordance with proposed However, there have been many signals showing strategy, which are: that Vietnam economy gradually recovered with • Improving the efficiency of manpower by training, positive figures, such as: GDP growth reached coaching, building breakthrough remuneration 5.98%, CPI reached 4.09% - a relative low figure policies; completing the organizational structure in the last 10 years but there was no sign of under the new development model, assigning deflation. additional junior – senior manager staff. According to a report of the World Gold Council, • Raising customers’ satisfaction through regularly world gold jewelry market’s demand in 2014 has launching new jewelry collections which suit deeply declined in most major markets. Total customer tastes or lead the trend; superior estimated value of jewelry consumed in Vietnam quality products with advanced processing has declined 8%, but output yields has grown techniques and skillful workers; assuring quality 4% compared to 2013 - which is a good growing with committed standards by strict controlling sign of the jewelry industry. World gold price has procedures in every stage of the supply chain; fallen unprecedentedly last year, which attracted focusing on building customer care programs consumers to buy more gold jewelry. Changes in to maintain sustainable relations; building gold business operations managing policies have appropriate marketing programs and providing certain influences to the domestic gold market useful information to customers; regularly and have strong impacts to the operation of organizing training courses to enhance customer companies. After more than a year determining service skills of the consultant staffs. to implement Circular 22 on managing jewelry quality of Government agencies, Vietnam gold • Strengthening current sales system under PNJ jewelry market is expected to be transparent and standards and developing new stores according this is an opportunity for well-known companies to network development plan approved by Board with modern, large scale production and broad of Directors, ready for an even more extensive retail stores system as PNJ to rapidly develop PNJ jewelry retail chain development. market, capture the love and trust of customers. • Restructuring jewelry workshops to increase 2014 marked the third year of 10 year development the productivity by 35% over 2013; increasing strategy (2012 – 2017) of PNJ with the mission the industrialized level in production, reducing of completing first phase of the comprehensive wastage and increasing labor productivity to restructuring. PNJ has accomplished 2014 tasks boost marginal profit of sales sector. with impressive results, all criterias reached In 2015, a new phase of the long-term or exceeded targets: gross consolidated sales development strategy has been established and reached 9.297 billion VND; gross profit reached pursued, PNJ continues to set itself new peaks 790 billion VND, rose 32% over the same period to conquer the Vision of "Becoming the Asia's and exceeded yearly plan by 17%; earnings leading jewelry company, ranking Number 1 in before tax reached 326 billion VND, rose 36% the medium and high-end jewelry segment in over the same period and exceed yearly plan by Vietnam" with following goals: 18%, consolidated earnings after tax reached 255 • PNJ is recognized as a leading jewelry brand billion VND, ensured the 2014 dividend payoff is in the middle and high-end segment in the last 15% in cash and 30% in share. few years. PNJ has also constantly improved the To achieve these results, Board of Directors has image and value to be on a par with international closely directed the implementation of short and brands in the region. long-term plans which related to production and • About the product strategy, PNJ will still pursue business operations, implementation of General Ms CAO THỊ NGỌC DUNG, The chairwoman and CEO of PNJ SEEING THE QUALITY IN YOU the path of leading the market and heading the core production business, implementing the toward customers. With a business organizing strategy firmly step by step; ensuring proper and model which is active from designing, processing adequate investment for each critical stage of the and distributing, PNJ can fully meet the diverse investment route; effective financial management needs of the market and build unique marks and risk management… will be a solid foundation through commercial or limited jewelry collections. for PNJ to achieve objectives of growth, earning Continuing to launch diversified and unique market share, increasing profit; which will lead to products, focusing on the product’ types which the rising of employees’ income, total tax income are likely to bring higher margins. value of the Company, shareholders’ dividend • Constantly improving the manpower’s quality, and Company’s value. We commit to strive to prevailing in human and organization by arranging successfully implement objectives set by the and operating the organization by function blocks; General Meeting of Shareholders to deserve the building attractive and fair remuneration policy; trust of shareholders and customers. regularly training to improve employees’ capacity; On behalf of PNJ’s Board of Directors, I would motivating and encouraging creative thinking, like to thank all Authorities, Value Shareholders, supporting positive and optimism thinking, and Partners, Value Customers and all Employees of building sustainable corporate culture. PNJ for supporting and companying, joining hand • Keep developing the retail system intensively to create success for PNJ in 2014.