Cao Thị Ngọc Dung, PNJ’s chairwoman, speaks at the company’s extraordinary general meeting in HCM City on Wednesday. — Photo courtesy of the company

HCM CITY — Phú Nhuận Jewelry Joint Stock Company has announced a comprehensive restructuring plan, including a private share placement and substantial financial provisions, as it seeks to overcome mounting business challenges and return to growth from 2027 at its extraordinary general meeting of shareholders in HCM City on Wednesday.

Opening the meeting, chairwoman Cao Thị Ngọc Dung described the current situation as the most difficult period in her company's 40-year history.

She acknowledged shareholders' concerns over the decline in PNJ's share price, the shift from a profit forecast to a projected loss and unprecedented volatility in the jewellery market, and apologised for the financial losses and damage to investor confidence.

Addressing a diamond smuggling case involving a former director of PNJ Lab, she said investigators had confirmed that none of the diamonds involved had entered PNJ's business system. 

However, unverified information had undermined consumer confidence, triggering a sharp increase in requests to resell or exchange jewellery products and placing enormous pressure on the company's finances, she said.

"Over the past few months, PNJ has made every effort to maintain business operations and respond to market volatility, but we acknowledge that these efforts have not been enough to prevent serious damage to our business performance and corporate value."

She said 2026 would be devoted to restructuring, with a gradual recovery targeted from 2027.

At the meeting, shareholders approved a revised 2026 business plan, cutting the revenue target from VNĐ48.6 trillion to VNĐ39.1 trillion (US$1.5 billion), still up 10 per cent from 2025.

The company also revised its profit target from VNĐ3.4 trillion to a projected loss of VNĐ6.2 trillion.

The adjustment is mainly due to estimated provisions of VNĐ7.1 trillion for potential losses arising from its trade-in policy for previously sold products.

Excluding these provisions, PNJ expects net profits of around VNĐ800 billion in 2026.

Shareholders also approved a private placement of up to 550 million shares to professional securities investors.

Sixty per cent of the proceeds will finance future business operations following adjustments to the product trade-in policy, while the remainder will supplement working capital, meet other financial needs and repay short-term borrowings.

PNJ has received approval to transfer up to VNĐ4.6 trillion from its development investment fund to undistributed after-tax profits. The reclassification will not affect total shareholders' equity.

The meeting also approved reducing the 2025 cash dividend from 20 per cent to 10 per cent, equivalent to the amount already paid.

Dung pledged to use the approved resources transparently and effectively.

The company’s CEO, Phan Quốc Công, outlined a recovery strategy focusing on operational efficiency, rebuilding consumer confidence and strengthening core business operations.

The company plans to address diamond inventory, restructure its organisation, tighten cost controls and close underperforming stores while maintaining customer warranty and after-sales services.

It will also strengthen independent product quality verification to restore consumer trust and prioritise key product lines, promising market segments and new product development.

"New capital will give us additional resources to move forward, but what ultimately matters is that every customer leaves a PNJ store satisfied and wants to return."

Shareholders approved the resignation of Đào Trung Kiên from the board of directors.

He will focus on his role as senior director of strategy and organisational performance. — BIZHUB/VNS