During a meeting with investors this morning, the management board of Phu Nhuan Jewelry Joint Stock Company (PNJ) faced questions regarding the connection between 28,000 diamonds from a smuggling ring and the company.

Responding to this, Cao Thi Ngoc Dung, Chairwoman of the Board of Directors, affirmed that all of PNJ's imported diamonds enter through official channels, primarily from suppliers in Thailand and Hong Kong (China). These suppliers provide agreements on origin and transparent import documents.

Ms. Dung stated that P-Lab has no business function, serving purely as a unit for diamond inspection services. While PNJ, the parent company, and P-Lab, its subsidiary, have inspection service contracts, there are no buying or selling activities between them.

"I confirm that the diamonds related to this smuggling ring did not enter PNJ's system", she stated.

Cao Thi Ngoc Dung, Chairwoman of PNJ's Board of Directors. _Photo: Thanh Nguyen_

Selling pressure and PNJ's resilience also became a frequent topic of investor questions. Phan Quoc Cong, CEO of Phu Nhuan Jewelry Joint Stock Company, noted a sudden increase in customer traffic at stores when the information first emerged. However, after the company issued announcements reassuring customers of their rights, transactions over the two subsequent days decreased significantly, by 50% and 70% respectively compared to the first day. By this morning, the situation had almost returned to normal.

While diamond repurchases increased PNJ's inventory, Mr. Cong asserted it remains under control. The company plans to utilize the acquired inventory for product lines serving the year-end season.

Following negative news regarding P-Lab's connection to the 28,000-diamond smuggling ring, PNJ's stock dropped to its daily limit of 58,700 dong immediately upon opening on 3/7. This marked its lowest level in nearly 7 months. The stock frequently experienced a "white" buyer situation, meaning investors placed sell orders with no one to absorb them.

This morning, PNJ's stock continued to open at its floor price, falling to 54,600 dong per unit. Liquidity was minimal, with the "white" buyer situation persisting. By lunchtime, only 371,300 shares had traded, while over 13.6 million units remained "stacked on the floor", unsold.

In just two trading sessions since the P-Lab incident, PNJ's market capitalization plummeted by over 4,350 billion dong.

At the meeting, one investor questioned the measures PNJ's management was implementing to support the stock price, including share buybacks. In response, Cao Thi Ngoc Dung stated that the Board of Directors is re-evaluating the possibility of buying back treasury shares (a plan originally approved at the annual meeting in April). According to Ms. Dung, this could be considered a tool to protect the company's value and shareholder interests when necessary.

An investor directly asked if Ms. Dung herself would purchase shares at this time. PNJ's chairwoman explained that many officers and employees are currently buying additional shares through their families. This morning, within Ms. Dung's family, her younger brother intended to buy shares. However, as an insider, this process requires additional time to comply with information disclosure regulations.

Regarding business results, the company's leadership anticipates maintaining two-digit growth in Q2 and for the entire year 2026. This year, PNJ plans for revenue and after-tax profit to increase by 37% and 21% respectively, reaching 48,660 billion dong and 3,409 billion dong. This growth target significantly exceeds projections from many analytical organizations.

Tat Dat