Today, investment fund Dragon Capital announced that five of its eight associated organizations sold PNJ shares, reducing their holdings from 25,8 million to 23,3 million shares. Vietnam Enterprise Investments Limited, an organization with nearly one billion USD in total assets, was the largest seller, divesting almost 1,4 million shares.

Dragon Capital executed the divestment last week when PNJ shares were priced around 41.000 dong. This price represented a 35% decrease from before the incident involving the former director of its subsidiary (P-Lab) and a smuggling ring for 28.000 diamonds was publicized.

PNJ's stock continued its sharp correction, closing today at its floor price of 35.500 dong, with over 17,5 million shares awaiting sale. The market capitalization of the leading jewelry enterprise now stands at only 18.200 billion dong, having lost over 14.000 billion dong since the incident.

Prior to Dragon Capital, investor groups associated with VinaCapital also sold over 6 million shares, ceasing to be major shareholders in PNJ. This means they are not required to disclose future buy or sell transactions unless their ownership stake exceeds 5%.

During yesterday's press conference, CEO Phan Quoc Cong stated that before the incident, foreign investors consistently held the maximum 49% ownership in PNJ, which is the foreign ownership limit. Currently, most institutional shareholders continue to hold their shares, with no significant structural changes. Regarding VinaCapital, this fund group's divestment only accounted for over 1% of PNJ's total shares, which, according to him, did not cause a major shift.

"Major funds continue to monitor closely and offer strong support and trust in PNJ. They have consistently encouraged and contributed ideas to the company's operations recently", he added.

Despite the stock price decline, PNJ's CEO affirmed that the company's business foundation, personnel, and systems remain fundamentally unchanged. He likened this challenging period to "fire tests gold, hardship tests diamonds" (a Vietnamese idiom meaning true character is revealed in adversity) and believes overcoming these challenges will solidify the company's position and transparency, thereby reinforcing long-term investor and consumer confidence.

In a letter to shareholders and investors this afternoon, Cong further stated that "the company's business operations continue as normal," evidenced by a nearly 20% increase in jewelry retail revenue this month compared to the same period last year.

Management stated that the highest priority is currently to stabilize and maintain continuous business operations, as well as preserve the company's long-term value. A crucial solution involves regulating liquidity by extending payment schedules for diamond and gold repurchases.

"The current challenges do not reflect a decline in the company's core business operations or its medium to long-term financial capacity," Cong wrote in the letter. He is also in the process of registering to buy one million PNJ shares.

Some diamond products displayed at a PNJ store in TP HCM. *Quynh Trang*

The sharp correction led many securities companies, including: SSI, KIS, TCBS, FPTS, and Phu Hung, to remove PNJ shares from their margin trading lists. This means investors can only use cash to purchase the shares.

Most securities companies believe PNJ's biggest challenge at this stage is restoring both customer and investor confidence in its corporate governance. In a report published mid-July, Vietcap's analysis team suggested that the incident could temporarily weaken consumer trust in PNJ's diamond-related products, potentially leading to lower gross profit margins in the retail segment. PNJ's profits are expected to face pressure in the second half of this year and next year.

"We expect these difficulties to gradually ease as consumer confidence recovers, helping profits rebound in 2028 from a low base", wrote Vietcap's analysis team.

Phuong Dong - Tat Dat