Jewelry firm PNJ to issue 15 mln shares to raise capital
The shares to be issue account for 6.6% of total shares in the market. the capital will be used for boosting production capacity, CEO Le Tri Thong told shareholders during the Annual General Meeting organised in Ho Chi Minh City on weekend.
In addition, the jewelry manufacturer will use capital to innovate production technology, product design and optimize costs, along with implementing digital transformation.
PNJ is accelerating its development in the next 5 years, so it needs capital to expand its network of 45 stores with strategy retail and apply new technologies in production and business, the company leaders said.
The firm also got approval to issue more than 3.6 million shares under the Employee Selection Program (ESOP) for key leaders and subsidiaries at the price of VND10.000 apiece.
The company will apply the form of withdrawing ESOP shares if the employees quit their job before the end of the transfer restriction period, except for cases where there is no withdrawal.
The firm targets 2021 after-tax profit at VND1,230 billion ($53 million) from VND21,006 billion ($910 million) in revenue, an increase of 15% and 20% respectively.
The firm opened 29 new Gold gold stores and closed 36 silver stores in 2020 to restructure business and save costs. This strategy helped PNJ's retail segment contributed nearly 60% to the company's total revenue.
In 2020, PNJ’s business grew strongly from increasing market share. Retail sales increased 10% over the same period following the digitization strategy the company adopted in 2019, Chairwoman Cao Thi Ngoc Dung told shareholders.
Specifically, 2020 net revenue reached VND17,510 billion, up 20% from a year ago. After-tax profit reached VND1,069 billion, up 15% year-on-year.
Currently, PNJ has two factories with a capacity of up to 4 million products a year and the company is looking for location to relocate one factory from the residential area. PNJ's ambition to continue adopting new technology for gold wholesale. Currently the factory capacity has not strong enough to meet the retail demand, Dung said.
During the first two months of 2021, PNJ net revenue reached VND5,011 billion ($217 million), up 37% over the same period of last year. Net profit reached VND380 billion, up 11% from a year ago.
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