Nearly three weeks after the case of smuggling more than 28,000 diamonds related to the former director of P-Lab, an appraisal company 100% owned by PNJ, was announced, Phu Nhuan Jewelry Joint Stock Company (PNJ) held a surprise press conference on the morning of July 21 to update the situation.
The gold and jewelry market in two months recorded a series of unusual developments, leading to the phenomenon of demand for resale of jewelry, especially diamond jewelry, increasing sharply in a very short time, creating pressure on many businesses in the industry.
From July 3rd - the time of announcing the incident related to the former director of P-Lab inspection company, PNJ leaders said that the total revenue from repurchasing products at PNJ was 5 times higher than the total revenue from sales, in which diamonds accounted for the majority. During this time, the company still maintained a policy of repurchasing and payment on the same day.
Mr. Phan Quoc Cong - General Director of PNJ - also admitted that the pressure on short-term cash flow for PNJ is very large. However, to ensure stable operation and protect the long-term interests of customers, partners and related parties, the Board of Directors and the Board of Directors of PNJ have agreed to synchronously implement new liquidity management solutions.
Accordingly, PNJ commits to fully fulfilling 100% of the buy-back obligation for all customer transactions.
To ensure that payments are carried out stably, transparently and in accordance with the operating capacity of the system, PNJ will apply a maximum daily payment limit according to actual capacity for all acquisition transactions nationwide.
According to the new plan, PNJ will make payments after completing the inspection process, confirming the value of the product and arranging a suitable liquidity source, instead of paying immediately on the same day as before. Payment is made in order of completing the transaction file and the customer's choice plan. In case the total transaction demand exceeds the processing limit on the same day, PNJ still commits to fully fulfilling 100% of the repurchase obligation and ensuring full payment of the transaction value according to the announced schedule.
This is a temporary liquidity management measure, applied during a period of unusual market fluctuations and will be considered for adjustment by PNJ when market conditions return to stability.
Regarding the transaction plan, for detached diamonds, PNJ said that customers can choose to exchange for detached diamonds or receive money, not convert to jewelry and gold bars to comply with Decree 232.
For the remaining product lines, customers can choose to convert the entire or part of the purchased value to products being traded at the PNJ system, including: SJC gold bars/PNJ Fortune gold/grain rings/Kim Bao, jewelry, collected gifts and detached diamonds... The conversion value is applied based on the current preferential policy at the time of transaction, and PNJ adds additional preferential levels according to each product group.
In case customers need to receive money, PNJ will fully pay the purchase value according to the roadmap that the system can meet. Customers can choose a flexible combination option, which is to convert a part of the purchase value to PNJ products and receive payment in cash for the rest. The converted value to products will be applied corresponding incentives according to each product group, and the received value will be paid according to the roadmap.
PNJ's leaders affirmed that they will fully fulfill 100% of the repurchase obligations for all customer transactions. The enterprise will be public and transparent about the handling policy and payment schedule, ensuring customer rights according to the chosen plan. PNJ will also proactively support, answer and receive all feedback through the company's official customer care channels.
Regarding the above incident, PNJ shares have continuously decreased sharply in market price recently. In today's trading session (July 21), PNJ shares again fell to the floor price of 38,150 VND/share, trading liquidity reached more than 320 billion VND. This has caused PNJ's capitalization to decrease by nearly 12,800 billion VND, causing PNJ to lose its position as a billion-dollar company.
