News about diamonds

At PNJ's extraordinary shareholders' meeting on Oct. 21, 2026, the board proposed setting aside VND 7,071 billion in provisions this year for losses tied to its diamond buyback policy, projecting a pre-tax loss of over VND 6,000 billion. Excluding this provision, after-tax profit would be about VND 800 billion. Customers sold back about VND 6,000 billion of products in July alone, nearly matching the full-year 2025 total of about VND 7,000 billion, as the daily buyback value rose about 10 times normal levels. PNJ plans to close 25-30 underperforming stores, clear diamond inventory and restructure, and has shortened payment terms for some gold and jewelry products to 2-7 days. Chairwoman Cao Thị Ngọc Dung apologized to shareholders for the losses and the damage to their confidence.

At PNJ's extraordinary shareholders' meeting on 21 October, CEO Phan Quốc Công said the plan to issue up to 550 million additional shares has not been detailed yet, and the company needs to raise about 8,000 billion VND; 550 million is only a maximum. The issue price will be based on book value and the 30-session average price up to the decision date, and a higher share price would mean less dilution for existing shareholders. Existing shareholders cannot be offered shares because the company must honor buyback commitments for diamond jewelry worth about 21,000 billion VND, with a provision of about 7,000 billion VND that could push it into a loss above 6,000 billion VND in 2026, and loss-making firms cannot make public offerings to existing shareholders, so a private placement to funds and professional investors is the remaining route. Assuming 80% of customers redeem, buyback demand would be about 16,800 billion VND, and the CEO expects reconstruction to be completed around 2027 if funding is secured.