Gold producer SJC eyes 7% rise in profits
In this article (5)
State-owned Saigon Jewelry Company targets pre-tax profits of VND60 billion ($2.6 million) on revenues of VND18.8 trillion this year, up 7% and 6% from last year.
Its targeted net profit margin is only 0.25%, much lower than the 5.11% for competitor Phu Nhuan Jewelry.
This year the government tasked SJC with privatizing and expanding into neighboring countries, but in July director Le Thuy Hang said the only focus currently is on achieving the sales and profit targets to be able to pay salaries.
Since 2012 SJC has been the sole gold bullion producer in Vietnam and its gold production is being closely monitored, Hang added.
Last year its profits fell 25% to VND17.7 trillion, the lowest since 2015, as the Covid-19 pandemic hindered forced it to close several stores.
Questions & Answers
Q.Why is SJC's net profit margin so much lower than its main competitor?
Why is SJC's net profit margin so much lower than its main competitor?
SJC's targeted net profit margin for the year is 0.25%, which is significantly lower than the 5.11% reported for competitor Phu Nhuan Jewelry. The article does not provide a reason for this difference.
Q.What impact did the Covid-19 pandemic have on SJC's performance last year?
What impact did the Covid-19 pandemic have on SJC's performance last year?
Last year, SJC's profits fell by 25% to VND17.7 trillion, reaching their lowest level since 2015. This decline was attributed to the Covid-19 pandemic, which forced the company to close several of its stores.
Q.What are SJC's immediate priorities, according to director Le Thuy Hang?
What are SJC's immediate priorities, according to director Le Thuy Hang?
Director Le Thuy Hang stated that the company's sole focus at present is achieving its sales and profit targets. This is necessary to ensure the company is able to pay salaries to its employees.
Q.Has the government given SJC any specific tasks for this year?
Has the government given SJC any specific tasks for this year?
Yes, the government tasked SJC with two specific initiatives this year: privatising the company and expanding into neighbouring countries. However, the director noted these are not the current focus.
Reader pulse
SJC's 0.25% profit margin?
16,272 votes so far