Uzbek State-Owned Gold Moon Tashkent Jewelry Factory Shares Offered at 316.7 Billion UZS Auction

The Uzbek government has announced an open auction for the sale of its entire 100% stake in "Gold Moon Tashkent," the company that owns the state-controlled Fonon jewelry factory. The initial price for the stake has been set at 316.7 billion Uzbek soms (UZS), with the auction scheduled to commence on September 28, 2025, at 10:00 am local time.

Financial Position and Auction Terms

Gold Moon Tashkent exhibited a significant financial turnaround in the first half of 2026, posting a net profit of 33.4 billion UZS, reversing losses incurred in previous years. Despite this improvement, the company's balance sheet remains strained. As of July 1, 2026, total assets stood at 443 billion UZS while liabilities exceeded this figure by 107.3 billion UZS, resulting in negative net assets.

According to the company's financial passport, total revenue was 413.8 billion UZS in 2025, slightly down by 1% from the prior year. Net losses narrowed from 12.3 billion UZS in 2024 to 7.8 billion UZS in 2025. The gradual financial recovery is evident but incomplete, with negative equity still a concern.

"While the company’s profitability has improved, the buyer will inherit creditor liabilities totaling 305.9 billion UZS," an auction briefing noted.

Participants in the auction must submit bids by 9:00 am on the day of the auction and are required to provide a deposit of 9.5 billion UZS. The bidding will proceed by incremental price increases starting at 5% of the initial price (approximately 15.8 billion UZS). The buyer will assume the company together with all creditor and debtor liabilities, including a creditor debt of 305.9 billion UZS and debtor claims of 13.2 billion UZS.

Additionally, commercial banks have placed encumbrances on the company’s buildings and facilities, although specific details of these pledges have not been disclosed publicly. The property portfolio includes a 2.56-hectare land parcel in Tashkent's Chilonzor district, with buildings totaling 11,370 square meters in area. The book value of fixed assets is 110.7 billion UZS, with a depreciation rate of 33.2%.

Payment terms allow the buyer to pay the purchase price over a period of up to 36 months, with an initial payment of at least 35%. Interest will accrue on the outstanding balance at the Central Bank's base rate.

Operational and Legal Details

There is no stipulated requirement for the buyer to make additional investments or to maintain or create a specific number of jobs. The employee count is inconsistently reported, with the auction documents citing an average annual workforce of 459 employees, while the company passport references 309 employees. No explanation has been provided for this discrepancy.

The Fonon jewelry factory was established in 2021 on the basis of a previous scientific and production enterprise bearing the same name. At its inception, the project was valued at approximately $21 million USD, and the factory’s annual production capacity was estimated at 6 tons of jewelry items.

It is important to note that the "Fonon" name refers both to the factory and a separate jewelry retailer, but they are not legally identical. Official information indicates that the Fonon jewelry factory is operated by Gold Moon Tashkent, whereas the retail operations are conducted by a different company, Empire Jewelry LLC. The auction concerns only the Gold Moon Tashkent stake; the retail network, trademarks, or related assets are not included.

This sale represents a significant state asset divestiture, potentially impacting the local precious metals and jewelry sector. Market participants will be monitoring bidding activity closely, given the factory’s strategic location and asset base despite its current financial challenges.