Bài Tiểu Luận Topic Financial Analysis Of Phu Nhuan Jewelryjoint Stock Company -Pnj.pdf

INTRODUCTION Company's name: + Vietnamese name: PHU NHUAN JEWELRY JOINT STOCK COMPANY + English name: Phu Nhuan Jewelry Joint Stock Company + Short name: PNJ, JSC - Company logo: Head o

UNIVERSITY OF ECONOMICS AND FINANCE

KHOA TÀI CHÍNH

~~~~~~*~~~~~~

BÀI TIỂU LUẬN

TOPIC :

FINANCIAL ANALYSIS OF PHU NHUAN JEWELRY

JOINT STOCK COMPANY -PNJ

HCM city – 2023

Members:

No Full Name Student’s ID Contribution

1 Le Vo Hong Ngoc 215043350 100%

2 Dinh Tran Nhat Lam 215032639 100%

I INTRODUCTION

Company's name:

+ Vietnamese name: PHU NHUAN JEWELRY JOINT STOCK COMPANY

+ English name: Phu Nhuan Jewelry Joint Stock Company

+ Short name: PNJ, JSC

- Company logo:

Head office: 170E Phan Dang Luu – Ward 3 – Phu Nhuan District – Ho Chi Minh City

Phone: (84-28) 39951703 – Fax: (84-28) 39951702 – Email: pnj@pnj.com.vn

Business registration certificate: 0300521758

Tax code: 0300521758

Company type: Joint-stock company

Legal representative: Ms Cao Thi Ngoc Dung – Chairman of the Board of Directors of PNJ Charter capital: 2,252,935,850,000 (Two thousand two hundred and fifty-two billion nine

hundred and thirty-five million eight hundred and fifty thousand dong)

Main business sectors:

- Producing and trading in gold, silver, precious stones, fashion accessories, and souvenirs

- Trading in watches and buying and selling gold bars

- Testing service for diamonds, precious stones, precious metals

- Real estate business

Stock code: PNJ

PROCEDURES AND DEVELOPMENT :

On April 28, 1988, Phu Nhuan Jewelry Store was born

In 1994 and 1998, PNJ established branches in two key economic centers, Hanoi and Da Nang

In 1999, opening a branch in Can Tho, PNJ completed the presence of 3 major economic

centers

In 2001, the PNJSilver brand was born, and in 2005 it re-launched a new image In 2004, PNJ became Phu Nhuan Jewelry Joint Stock Company PNJ won the title of Top 500 Leading Retail Enterprises in Asia - Pacific and received the First Class Labor Medal

In 2005, the high-end jewelry brand CAO Fine Jewelry was born

In 2008, PNJ was the jeweler and crown sponsor of the Miss Universe pageant, held in Vietnam

In 2008 - 20 years of establishment, PNJ announced a new logo change PNJ became one of the

200 largest enterprises in Vietnam as announced by UNDP and was honored to receive the Third Class Independence Medal

In 2009, PNJ shares were officially listed on HOSE, PNJ is the first and only jeweler listed on the stock exchange so far In August 2009, CAO Fashion One Member Limited Liability

Company was established

In 2012, PNJ was inaugurated - one of the leading jewelry manufacturing enterprises in Asia Inaugurated the largest jewelry, diamond, and watch center in the whole system at 52A-52B Nguyen Van Troi, Phu Nhuan, HCMC

In 2013 - 25 years of establishment, the PNJSilver brand repositioned PNJ gold jewelry brand announced a new message "Honor true value"

In 2016, PNJ launched the collection I Love Vietnam with national spirit at Vietnam Fashion Week 2017 - PNJ is honored to accompany the APEC 2017 high-level week, promoting

Vietnam's image through the APEC VIETNAM 2017 badges; PNJ won “ASIA’S BEST

REPORT ON THE SDGS”, Outstanding Enterprise of the Year – ASEAN and Top 3 Asian Retailers voted by JNA, …

In 2018, PNJ marked the 30-year milestone with the largest jewelry fashion show in Vietnam, established a Gold Trust medal for the U23 Vietnam team, entered the Top 50 most effective business companies in Vietnam, and received the JNA award for the 4th time, 3 times in a row, reaching the Top 10 in 100 Sustainable Development Enterprises, becoming a billion-dollar enterprise

Business Philosophy

1 Vision

As the leading jewelry manufacturing and retailing company in Asia, holding the No 1 position

in the mid-and high-end segments in Vietnam

Slogan: FAITH AND STYLE

2 Mission

PNJ brings pride to customers with exquisite jewelry products of outstanding quality

3 Core Values

Integrity - Responsibility - Quality Innovation - Engagement

4 The philosophy of sustainable development

Put customer interests and social benefits in the interests of the business

4.1 Company position

PNJ currently manages and operates PNJ Jewelry Factory with a total investment of 120 billion VND and a production capacity of over 4 million products/year By the end of 2019, PNJ has developed a distribution system with 346 retail stores, e-commerce channels, and indirectly through more than 3,000 wholesale customers nationwide PNJ's products have been exported to

13 countries and territories PNJ was ranked 16th by Plimsoll World, a leading global

organization specializing in providing industry reports

5 Development and investment strategy

To become the leading jewelry manufacturing and retailing company in Asia, holding the No.1 middle and high-end jewelry market segment in Vietnam Focusing on the key business of jewelry production and trading in Vietnam Expanding retail distribution system in key markets, especially in the North Invest in and apply modern machinery and technology to reduce

wastage, diversify and improve product quality

Strength

- High technology and technique in jewelry making

- More than 20 years of experience in the industry

- The brand is trusted by consumers

- Innovative marketing strategy 5 stable export markets

- Wide dealer store for product introduction and distribution

- Invest in R&D a lot

- Professional management system and effective combat already have Dong A Bank in human capital financing activities, and sustainable relationships with partners Weaknesses

- Difficult to forecast to overcome high-risk jewelry production - The market in uncut pieces The source of raw materials is mostly imported from abroad, and the silver jewelry market is

concentrated in the South

- Financial activities have not yet yielded significant profits or invested capital accounts for a high proportion of assets

- Products to serve the needs of customers are still concentrated in the domestic market

PNJ is temporarily having an imbalance because a part of PNJ's long-term assets is being

financed by short-term capital

Opportunity

- The higher the trend of jewelry consumption, the higher the concept of saving for dowry is indispensable for Vietnamese women

- Modern machinery and technology create many designs and ways to compete strongly with foreign enterprises

- The gold trading market is developing to promote gold trading activities

- The number of competitors in the industry is relatively small

- The real estate market recovers the joint venture company that is likely to contribute a lot of profit to PNJ in the future

Challenge

- Fierce competition from domestic and foreign enterprises in the same industry

- Being affected by factors such as natural disasters, epidemics, fires and explosions that affect traditional customers and potential markets

- The world economy is always unstable

- Long-term investment capital in Vietnam will face risk when this investment is not effective

- Changes in political and legal policy are always possible and when they happen less often much influence on the management of production and business activities of PNJ

- The import of gold materials is strictly controlled by the state

II ANALYSIS

1 BALANCE SHEET

a) Current Assets

Why do the years 2020 and 2019 have the lowest numbers while the years 2022 and 2021 represent a turning point? The milestones for short-term assets steadily grow, as shown on the figure, with 2020/2019 being at a relatively low level (-0.03) but increasing rapidly from 2022/2021 (0.29) In terms of short-term assets, both inventories and short-term receivables have grown over time

The total value of Short-term assets is currently the account that accounts for the highest

proportion of total assets at 90% It can be seen that in the period of 2019-2022, the company's short-term assets continuously grow and the size of the business is on an increasing trend In the structure of short-term assets of Phu Nhuan Jewelry Joint Stock Company Current assets

include cash and short-term receipts, inventories , and other short-term assets, in which

inventories are accounting for the highest proportion of short-term assets but from 2019-2022 tend to rate decrease year by year The increase and decrease of inventory greatly affect the company's short-term assets because according to the balance sheet report, the proportion of inventory in short-term assets is 79% and reached the highest level of the year 2021(82%) The company's inventory accounts for a large proportion, showing that the liquidity of inventory is quite low It is quite understandable because the company's products are mainly jewelry items, etc., and targeting certain consumers, so low liquidity is inevitable Other short-term assets in total short-term assets are receivables accounting for a lowest proportion

b) Long-term Assets

According to the comparative analysis from time to time, it shows that short-term assets

decreased but not too much from 0.05 (2020/2019) to 0.03 (2022/2021), but on the contrary, long-term receivables increased suddenly find that the company's management of long-term

debt collection is not good, it is necessary to take more measures to speed up the recovery of long-term debt Total long-term assets in the period 2018-2022 had negligible fluctuations

Account Common-sized analysis

c) SHORT-TERM LIABILITIES

Liabilities in 2019 increased by 46.79% compared to 2022, the proportion decreased to 35.53% According to the data, the company's business situation prefers to invest in short-term debt over long-term debt, but there is no positive effect on short-term debt although short-term debt

accounts for the highest proportion of debt collection payable (46.79% in 2019) but every year

the increase and decrease are uneven… Especially, enterprises keep track of debts on time to pay

on time, so the proportion of current assets decreases

Account Common-sized analysis

2022 2021 2020 2019 Liabilities 35.53% 43.38% 38.21% 46.79%

Short term Liabilities 35.46% 42.97% 38.10% 46.70%

d) Long-term Debt

e) Owner’s Equity

Looking at the comparative analysis chart,

we can see that over the past 3 years, equity

has increased more than Liabilities

Thereby, we can see that the company has a

high reputation, low financial risk, good

financial autonomy because the company uses internal capital, less dependent on external capital

Account Common-sized analysis

2022 2021 2020 2019

Long term

Liabilities 0.07% 0.04% 0.11% 0.09%

Long-term debt accounted for the lowest

proportion of receivables from 0.09% to

0.07% This shows that enterprises want to

save capital costs but need to reconsider

balancing the investment needs of teaching

assets In terms of structure, the company's

term debt mainly comes from

long-term finance leases and loans, the sharp

decrease in this item has greatly affected

the long-term debt structure of PNJ

In the equity structure, equity accounts for the main proportion (accounting for a high proportion

of 64.47% in 2022) The company mainly uses owner's contributed capital which has been positive over the years This is the account for the highest proportion in equity, helping to improve financial autonomy, the business also shows that the business mainly focuses on

mobilizing capital for the company With the additional mobilization by issuing new shares, with stable revenue and profit growth over the years, the company easily completed the capital raising phase, not only that the company also sold shares Issued shares higher than par value causes the company to have additional capital shares from the share premium

Account 2022 Common-sized analysis2021 2020 2019 Owners equity 64.47% 56.62% 61.79% 53.21%

Capital and researves 64.47% 56.62% 61.79% 53.21%

Paid-in capital 18.48% 21.43% 26.83% 26.19%

Share premium 16.90% 9.33% 11.69% 11.25%

2 INCOME STATEMENT

PNJ's business results over the past 4 years have fluctuated In 2019, the business results were more positive than in 2018, the company's profit after corporate income tax increased

by more than 234 billion VND, equivalent to an increase of 24.38%, and the proportion increased by 0.43% However, by 2020, profit after tax will decrease by more than VND 124 billion, corresponding to a decrease of 10.44%, a decrease of 0.92% compared to 2019

As follows:

In 2020, it will decrease by 85.92%, a proportion of 0.09% decrease compared to 2019 Meanwhile, financial costs will increase quite strongly, by 2020 financial costs will still

increase by more than 27 billion VND, equivalent to 20.84 % of which interest expenses increase by more than 39 billion dongs, equivalent to an increase of 33.85%, the proportion increased by 0.2% compared to 2019, the profit from financial dong decreased by more than

42 billion dongs The reason is that the company maintains a high average debt level to ensure liquidity and commitment to customers, thereby further improving the image of a reputable retailer in the market At the same time, PNJ Company is expanding its scale, opening 40 to 45 gold jewelry stores, so interest expenses also increase

Selling expenses tend to increase strongly over 3 years In 2019 it increased by more than

194 billion VND, equivalent to an increase of 16.39%, the proportion decreased by 0.02% compared to 2018 By 2020 the increase was slightly more than VND 39 billion, equivalent

to an increase of 4.34%, and the proportion increased by 0.1 % compared to 2019 The reason is that PNJ Company offers many promotional policies advertising such as a 0% installment purchase policy - easily applied via credit cards of more than 20 banks, 3 hours delivery - own your favorite jewelry within 3 hours, and discount of up to 1.5 million when ordering online Other incomes in 2020 increased sharply by more than VND 724 billion, equivalent to an increase of 15.23% compared to 2019 Meanwhile, other expenses also increased quite strongly, specifically in 2020 increased by more than VND 4 billion, respectively 102.54% compared to 2020 Because of this, other profits also increased and decreased In 2019, other profits decreased by more than 1.4 billion dongs, equivalent to a decrease of 73.93% compared to 2018 By 2020, a decrease of more than 3 billion dongs, equivalent to a decrease of 735.14% compared to 2019 The reason is that the company has income from a property transfer, asset liquidation, income from deposit interest, interest on deferred payment, and installment payment

Conclusion: Based on the data through the Income Statement, we see that Cost of goods

sold (COGS) is the index accounting for the highest percentage when divided by net revenue, and there is a year-over-year fluctuation from 2019- 2022 Besides, the index accounting for the second weight in the table is gross profit, which tends to decrease starting from 2021-2022 The slight increase in the proportion of COGS and decreasing gross profit also shows that the cost management activities The cost of the business is not good, the solvency of the business or the future profitability is also directly affected Corporate income tax (CIT) has halved from 2% in 2019 to 1% in 2021 Net profit after tax has shown signs of decreasing nearly 2.5 times from 2021, showing that businesses are operating Not good, not

on the right path of development, and reducing the possibility of good growth in the future Through the indicators have volatility and the change is not positive, most clearly from 2021,