A record quarter and a criminal probe collided, costing PNJ more than VND6,300 billion in market value between July 3 and July 7. The firm had just reported Q1 2026 revenue of VND17,425 billion, up 79% year on year, and net profit of VND1,467 billion, up 116%, yet its shares hit the daily limit and fell 6.97% to VND58,700. Thanh Hoa Provincial Police say they have dismantled a transnational smuggling network and have charged 22 people, including the former director of PNJ's P-Lab, after seizures and searches. The gap between operational strength and a collapse of market confidence has left retailers, households and the domestic diamond certification market facing immediate losses.
The contrast is stark: robust sales and profits on one hand, an alleged internal route for illegitimate diamonds on the other.
Financials and balance sheet
PNJ's Q1 2026 numbers read like a turnaround. Revenue rose to VND17,425 billion, up 79% year on year, and net profit jumped 116% to VND1,467 billion. Average revenue per store increased about 23% to roughly VND6.4 billion a month. For full-year 2025 the company reported revenue of VND34,976 billion, down 7.5%, and net profit of VND2,829 billion, up 34%.
The balance sheet looked conservative. Borrowings were about 0.2 times equity and cash stood at VND4,510 billion. Management reduced inventory by more than VND2,400 billion ahead of a sharp fall in gold prices. Those figures matter because they show the company was not overleveraged when the governance shock hit.
The criminal probe and the trust breach
Thanh Hoa Provincial Police led the investigation. They said they dismantled a transnational smuggling network that moved more than 28,000 diamonds into Vietnam in 141 shipments since 2024. Police say they seized about 1,100 diamonds during searches of 20 locations and that the probe is active and expanding.
Investigators allege the former director of PNJ's P-Lab removed laser-engraved identifiers from Gemological Institute of America certificates, engraved P-Lab identification numbers and issued new P-Lab grading certificates to legitimise the stones before sale. The former director is among 22 people charged, according to police statements.
Market mechanics amplified the reputational pain. The stock suffered three limit-down sessions in early July.
More than 9.5 million shares were offered at the floor price without matching bids as buyers withdrew liquidity, driving immediate selling pressure that wiped the VND6,300 billion from market value.
PNJ has framed the episode as the personal conduct of an individual and said it will cooperate with investigators. The company appointed new management at P-Lab to keep certification operations running and offered to support customers who want previously purchased diamonds re-certified, saying it retains records to verify technical specifications. PNJ chairwoman Cao Thi Ngoc Dung said the company was surprised by the allegations, apologised to customers and investors for the impact on confidence, and added, "We believe any violations of the law, if proven, must be handled strictly." PNJ also said existing after-sales and buyback policies would remain unchanged.
The corporate response hasn't removed governance questions. Analysts and governance commentators describe the testing unit as more than a technical department, calling it part of the firm’s trust infrastructure. Visible governance structures, they say, aren't necessarily the same as governance depth enough to lock in trust for goods whose pricing depends heavily on independent certification.
One proprietary scoring placed PNJ at 63 out of 100 on an investability scale, on the lower edge of what the scorer called the investable band, with a negative outlook and a watch flag. That rating reflects how quickly a trust shock can reprice perceived risk for retail and institutional holders alike.
PNJ has continued to press longer-term initiatives amid the fallout. Management is pursuing manufacturing and export plans, including a new factory intended to meet international standards and to serve global brands, and is testing markets outside Vietnam such as Singapore. The company said one factory project has been put on hold pending legal procedures.
The immediate effect landed with households and retail investors. Many faced losses as the stock hit floors and liquidity evaporated. For a company whose product depends on certificates that translate into price, the incident has inflicted a direct commercial cost beyond the headline market fall.
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Thanh Hoa Provincial Police say 22 people have been charged and about 1,100 diamonds were seized during searches; PNJ says it will cooperate with investigators and offer re-certification to customers whose purchases may be affected.
This article was created with AI assistance.
