Uzbek State-Owned Fonon Jewelry Factory Listed for 316.7 Billion UZS in Strategic Auction
Gold Moon Tashkent, owner of Fonon Jewelry Factory, reports profit turnaround but maintains significant liabilities ahead of state stake sale.
The Uzbek government has put up for open auction a 100% state stake in Gold Moon Tashkent, the company that owns the Fonon Jewelry Factory, with an initial price of 316.7 billion Uzbek soms (UZS).
The auction is scheduled for September 28 at 10:00 AM, with participation applications accepted until 9:00 AM the same day. Interested bidders must submit a security deposit of 9.5 billion UZS. The bidding will proceed through an incremental price increase approach, with the first increment set at 5% of the starting price or 15.8 billion UZS.
Financial Performance and Balance Sheet Overview
Gold Moon Tashkent showed a financial turnaround in the first half of 2026, reporting a net profit of 33.4 billion UZS, a significant improvement from previous years when the company was operating at a loss. In 2025, the company generated total revenue of 413.8 billion UZS, a slight decrease of approximately 1% compared to the previous year. The net loss narrowed from 12.3 billion UZS in 2024 to 7.8 billion UZS in 2025.
Despite this progress, the company's financial position remains strained. As of July 1, 2026, Gold Moon Tashkent's assets totaled 443 billion UZS, while liabilities stood at 550.3 billion UZS, resulting in negative net assets of 107.3 billion UZS. This marks an improvement from the end of 2025 when net liabilities were 140.8 billion UZS, reflecting a reduction of 33.5 billion UZS over six months, though the company has yet to achieve positive equity.
The buyer will also assume all creditor and debtor obligations, including a creditor debt of 305.9 billion UZS and a debtor debt of 13.2 billion UZS. Additionally, the company’s property assets — which include buildings and structures with a total area of 11,370 square meters on a 2.56-hectare plot in Tashkent’s Chilonzor district — are encumbered by a lien imposed by a commercial bank. Specific details on the bank or the nature of the lien remain undisclosed.
Investment Terms and Operational Considerations
The payment terms for the acquisition allow for installments up to 36 months. If the initial payment is less than 35%, the remaining balance will accrue interest at the Central Bank’s base rate. Notably, the auction terms do not mandate the buyer to make additional investments or maintain or create a certain number of jobs.
There is some inconsistency in reported employee numbers; the auction documents list an average annual workforce of 459 employees, while corporate passports indicate only 309 employees, with no explanation provided for this discrepancy.
"The financial health of Gold Moon Tashkent has improved but remains challenged by significant liabilities exceeding assets, underscoring a cautious outlook for potential investors."
Fonon Jewelry Factory was established in 2021, evolving from a prior scientific-production enterprise bearing the same name. The project was initially valued at approximately $21 million, with a stated annual production capacity of 6 tons of jewelry.
It is important to highlight that while the 'Fonon' brand is associated with both the factory and a jewelry retail house, these are legally distinct entities. The auction covers only the state's stake in Gold Moon Tashkent. The jewelry retail network, operated by a separate company, Empire Jewelry LLC, and the Fonon trademark ownership are excluded from the sale.
