On April 26, Phu Nhuan Jewelry Joint Stock Company (stock code: PNJ) held the 2025 Annual General Meeting of Shareholders.
Reporting to shareholders, Mr. Le Tri Thong, Vice Chairman of the Board of Directors and General Director of PNJ, emphasized that 2024 is a year of special pressure for the domestic gold, silver, gemstone and jewelry industry when facing a "double storm" of both supply and demand.
On the input side, there is a shortage of raw gold supply due to record high prices and tightening market control activities. On the output side, there is a sharp decline in consumer purchasing power, especially for luxury goods, leading to many businesses continuing to reduce the scale of operations or even closing down.
In the context of general difficulties, PNJ has proactively responded to unexpected market fluctuations, with revenue reaching VND 37,823 billion and profit after tax reaching VND 2,113 billion, up 14.1% and 7.2% respectively compared to the peak set last year.
According to Mr. Thong, the strong fluctuations in gold prices recently have affected the business activities of enterprises, including PNJ.
Specifically, the rapid increase in gold prices will reduce jewelry purchasing power, because product prices are increasing rapidly following the price of gold while consumers' wallets cannot increase as fast.
"Previously, consumers had 5-7 million VND, they could buy a 1-tael piece of jewelry, now this amount of money is not enough. The mentality is to buy and save instead of selling when seeing the price increase rapidly, gold trading is more tightly controlled... This is a shift in the market, requiring businesses to have a professional, transparent platform, better service quality to develop after this turning point" - CEO of PNJ said.
Ms. Cao Thi Ngoc Dung, Chairwoman of PNJ Board of Directors
In 2025, PNJ set a target of after-tax profit of nearly VND 1,960 billion, down 7% compared to last year's record, in the context of facing a double storm. Some shareholders are wondering about the rapid increase in gold prices recently, is PNJ facing any difficulties or benefits? Why does PNJ set a target of reducing revenue and profit in the context of increasing gold prices?
Ms. Cao Thi Ngoc Dung, Chairwoman of PNJ Board of Directors, explained that the company’s business strategy at this time is cautious, adjusting strategic orientation to suit the volatile market situation. In particular, the difficulty in supply is assessed by PNJ as a major challenge for this year.
"Currently, this is an uncertain time, no one can be sure what will happen tomorrow. Therefore, PNJ has built many response scenarios and is ready to face all situations. 2025 is the first year that PNJ has proposed a negative growth plan" - Chairman of PNJ Board of Directors said.
According to PNJ leaders, 2025 is the first year PNJ has proposed a negative growth plan in the context of facing a "double storm".
According to Ms. Cao Thi Ngoc Dung, many people mistakenly believe that when the gold price increases, gold businesses will make a profit, and when the price decreases, they will lose money, but that is not true in the jewelry business. Because only investors and gold speculators make a profit or loss according to price fluctuations. As for businesses like PNJ, which operate based on a separate balance rule, they do not set profit targets based on whether the gold price goes up or down.
To achieve the profit target of nearly VND1,960 billion, PNJ plans to take advantage of the market gap this year to open 12-25 new stores to increase its presence in potential markets. Increase the capacity of the jewelry factory from 4 million to 5 million products per year, ready to meet consumer demand when the market recovers...
Source: https://nld.com.vn/chu-tich-pnj-cao-thi-ngoc-dung-cong-ty-khong-huong-loi-khi-gia-vang-tang-196250426122026446.htm
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