Gold giant SJC sees sales slump to seven-year low
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The State-owned Saigon Jewelry Company has reported revenues of VND17.7 trillion ($770.3) in 2021, down 25 percent year-on-year to its lowest since 2014.
It has attributed the decrease to Covid-19 restrictions and lockdowns last year, which brought sales from VND13 trillion in the first half down to just VND4.7 trillion in the third and fourth quarter, well below its target of VND23.5 trillion.
The company posted pre-tax profits of VND56 billion last year, down 42.6 percent, and return on equity of 2.8 percent, short of the targeted 5 percent.
At the end of 2021, the value of its total assets was VND1.7 trillion, 70 percent of it in inventory.
Established in 1988, SJC is a wholly state-owned enterprise based in Ho Chi Minh City. It has been the sole producer of gold bullion in the country since 2012, and has around 90 percent of the bullion market.
Questions & Answers
Q.What factors did SJC identify as responsible for the significant fall in its 2021 revenue?
What factors did SJC identify as responsible for the significant fall in its 2021 revenue?
The company attributed the decrease in sales to Covid-19 restrictions and lockdowns throughout 2021. These measures severely impacted sales, particularly in the latter half of the year.
Q.How much of SJC's total assets at the end of 2021 was held in inventory?
How much of SJC's total assets at the end of 2021 was held in inventory?
At the close of 2021, SJC's total assets were valued at VND1.7 trillion. Of this amount, 70 percent was held in inventory, representing a substantial portion of its assets.
Q.How did SJC's actual pre-tax profits compare to the previous year?
How did SJC's actual pre-tax profits compare to the previous year?
SJC posted pre-tax profits of VND56 billion in 2021. This figure represented a decrease of 42.6 percent compared to the previous year's performance.
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