SJC boss just arrested with salary of half a billion/year, how is gold trading under this boss?

Ms. Le Thuy Hang, General Director of Saigon Jewelry Company Limited (SJC), was prosecuted for the crime of abusing her position and power while performing official duties. Currently, SJC has a new acting General Director.

Ms. Le Thuy Hang before being prosecuted - Photo: TN

As reported by Tuoi Tre Online , in relation to the case at Saigon Jewelry Company (SJC), six people have been prosecuted for two crimes: embezzlement of property; and abuse of position and power while performing official duties.

Among them is Ms. Le Thuy Hang, born in 1970, general director of SJC, accused of abusing her position and power while performing official duties.

How is SJC doing business under Ms. Le Thuy Hang?

Ms. Le Thuy Hang has a master's degree in business administration and a master's degree in banking and finance, and was appointed as general director of SJC in November 2019.

Looking at the long-term data range of SJC's business results, it can be seen that this state-owned gold selling company has recorded quite a big change since 2013.

As in 2012, revenue was very large, more than 72,000 billion VND, and after-tax profit was nearly 300 billion VND. SJC's revenue and profit gradually declined after 2013, in which revenue was about 20,000 - 30,000 billion VND.

During Ms. Hang's time as CEO, except for 2021, revenue every year was also steady at tens of thousands of billions of VND and there was no sudden change.

But more noteworthy is the story of SJC's net profit. In the period after 2013, despite large revenue, this gold company's profit was quite thin, only a few tens of billions of VND, while before that it was 200 - 300 billion VND.

In 2020 - the first financial reporting year when Ms. Hang took over as general director, SJC's revenue reached VND 23,491 billion, an increase of nearly 2% over the previous year, and after-tax profit was nearly VND 56 billion, an increase of more than 6%.

By 2023, the financial report shows that SJC's net revenue reached VND28,408 billion, an increase of nearly 5% compared to 2022. Although revenue increased, SJC's gross profit for the year reached VND241.6 billion, about VND8 billion lower than the previous year.

After deducting all expenses and taxes, the net profit of the "big guy" in the gold industry reached nearly 61 billion VND, an increase of 24% compared to 2022. The reason why SJC's revenue is large but its profit is "meager" is because the cost of goods sold accounts for 99% of revenue. SJC's gross profit margin is very thin, only reaching 0.85%.

	Revenue	Profit after tax
2012	72087	294
2013	27667	190
2014	16037	79
2015	18036	66
2016	21593	65
2017	22950	81
2018	20871	27.79
2019	19655	56.6
2020	24917	61.4
2021	17689	43.2
2022	27153	48.6
2023	28408	61

SJC's revenue and profit - Data: Financial statements, TTO

In the report on general objectives and business plan for 2024, Ms. Le Thuy Hang said that SJC Company focuses on investing in jewelry production and trading, making SJC one of the leading enterprises in jewelry production and trading, expanding the market to Southeast Asia.

According to Ms. Hang's report, SJC also plans to launch new products made from agarwood, handicraft products, watches and eyeglasses, and cooperate with a travel company...

With many business plans, SJC aims to produce 31,692 taels of gold bars, nearly 445,000 pieces of jewelry, with total expected revenue of VND30,145 billion and after-tax profit of more than VND70.2 billion, respectively increasing by 6% and 15% compared to the previous year.

If this target is achieved, SJC will have a record revenue year and the highest profit since 2014.

What did Ms. Le Thuy Hang explain when SJC's profit was thin after 2012?

At a press conference held in May this year, Ms. Le Thuy Hang said that since becoming a national brand, under the management of the State Bank, from 2012 to now, SJC Company has not been allowed to produce or import gold. SJC Company is only allowed to process dented SJC gold bars under the supervision of the State Bank of Vietnam, Ho Chi Minh City branch.

"The dented gold itself is gold bars previously produced by SJC Company. Recently, the price of gold has increased a lot. But even if the price of SJC gold bars is 15, 20, 30 million or even higher than the world price, I can confirm that SJC Company and the State Bank have no interests here, because as stated above, since 2012 SJC Company has not been allowed to import raw materials and has not been allowed to stamp SJC gold bars," Ms. Hang explained at that time.

Ms. Hang also emphasized that "SJC's monopoly does not benefit SJC Company or any individual or group". On the contrary, SJC Company has always been accused of having a monopoly for profit. Therefore, recent reality shows that it is necessary to remove this monopoly. At the same time, all qualified brands are allowed to produce gold bars to compete fairly.

Regarding the personnel issue at SJC Company after Ms. Hang and many others were arrested, the official website of SJC Company updated that Mr. Dao Cong Thang holds the position of acting general director. Mr. Tran Van Tinh is the chairman of the board of members and Mr. Nguyen Tien Phuoc is a member of the board of members.

According to SJC's report, Ms. Le Thuy Hang will receive a salary of about 547 million VND/year in 2022 and 552 million VND/year in 2023, which is only about 20 - 30 million VND lower than Chairman of the Board of Directors Tran Van Tinh.

Source: https://tuoitre.vn/sep-sjc-vua-bi-bat-luong-nua-ti-nam-kinh-doanh-vang-duoi-thoi-vi-nay-ra-sao-2025010119160741.htm