Financial Report Anomaly at SJC: 170,876 Gemstones Valued at Just Over 1 Billion Dong
In the context of an ongoing investigation into a major diamond smuggling case involving SJC's retail system, the audited 2025 financial report of Saigon Jewelry Company Joint Stock Company (SJC) has revealed a startling detail: the company is managing 170,876 colored gemstones and semi-precious stones with a total value of just over 1 billion dong, equivalent to approximately 6,000 dong per stone.
Background Context
Saigon Jewelry Company Joint Stock Company (SJC) stands as one of Vietnam's leading enterprises in the gold, silver, and gemstone trading sector. With an extensive distribution network and long-standing reputation, SJC has earned the trust of numerous consumers throughout the country.
However, the company has recently become embroiled in a significant investigation concerning suspected diamond smuggling. This development has captured public attention and regulatory scrutiny, demanding greater transparency in the company's financial operations.
Shocking Information from the Financial Report
According to the recently published audited financial report for 2025, SJC is holding a substantial quantity of colored gemstones and semi-precious stones. Specifically, the company possesses 170,876 such stones, yet their total recorded value in the books amounts to just over 1 billion dong.
This translates to an average value of only approximately 6,000 dong per stone—a figure that raises significant eyebrows, especially when compared to the actual market value of various gemstones.
Analysis of Gemstone Values
The value of gemstones and semi-precious stones depends on multiple factors including type, weight, color, clarity, origin, and rarity. Typically, even small semi-precious stones command market values considerably higher than 6,000 dong per stone.
The following table compares the estimated market values of some common gemstone types:
| Gemstone Type | Average Weight (carat) | Estimated Market Value (dong/stone) | Discrepancy with Recorded Value |
|---|---|---|---|
| Amethyst | 0.5 | 50,000 - 100,000 | 8.3 - 16.7 times |
| Citrine | 0.5 | 30,000 - 80,000 | 5 - 13.3 times |
| Aquamarine | 1.0 | 100,000 - 300,000 | 16.7 - 50 times |
| Ruby | 0.5 | 500,000 - 2,000,000 | 83.3 - 333.3 times |
| Sapphire | 0.5 | 200,000 - 1,000,000 | 33.3 - 166.7 times |
Company's Explanation
According to representatives from SJC, the recorded value in the financial report does not reflect the actual market value of the gemstones. Instead, the company used the original cost method when recording the inventory, which may have been purchased at very low prices from specific suppliers.
However, this explanation has failed to convince many financial and legal experts, as the significant discrepancy between the recorded value and market value—even considering potentially low acquisition costs—still raises doubts about the transparency of the company's accounting practices.
Market Reactions
This information has caused certain fluctuations in the gold, silver, and gemstone market. Many investors and customers have expressed concerns about SJC's reputation and the stability of its gemstone distribution system.
The stock price of SJC's parent company has also experienced slight volatility following the disclosure of this information, indicating the market's sensitivity to news regarding the financial operations of the enterprise.
Connection to the Diamond Smuggling Investigation
The emergence of this information has drawn even greater attention amidst the ongoing expansion of the diamond smuggling investigation involving SJC's retail system. Many questions have been raised regarding whether the undervaluation of gemstones might be connected to money laundering activities or the concealment of illegally sourced goods.
Legal experts suggest that the undervaluation of assets may violate accounting and financial reporting regulations, potentially serving as part of a strategy to conceal the origins of assets derived from illegal activities.
Regulatory Response
In response to this information, Vietnam's Ministry of Finance and the State Securities Commission have requested that SJC provide additional detailed information regarding the valuation of gemstones in its financial report. Meanwhile, the tax authority has commenced inspections to verify the accuracy of these financial items.
Accounting specialists emphasize that asset valuation must comply with current accounting standards, particularly for assets with fluctuating values such as gemstones. Undervaluation could affect the true assessment of the company's value and potentially harm shareholders' interests.
Conclusion
The information regarding the valuation of 170,876 gemstones and semi-precious stones at just over 1 billion dong in SJC's financial report has raised numerous questions about the transparency of the company's operations. In the context of the ongoing diamond smuggling investigation, this information has further increased suspicions regarding SJC's financial activities.
How SJC explains the significant discrepancy between the recorded value and the actual market value of these gemstones, and how the company handles this information moving forward, will determine its reputation and market position.
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