PNJ suffers record losses due to setting aside 865 billion for diamond and gold buybacks

Phu Nhuan Jewelry Joint Stock Company has just announced its Q2 financial report, recording a consolidated after-tax loss of VND 283 billion, compared to a profit of nearly VND 437 billion in the same period last year. This is the largest loss since the company began disclosing information in Q3/2008.

The loss was caused by a 5.2-fold increase in business management expenses compared to the same period last year, reaching nearly VND 1,063 billion. Of this amount, over VND 865 billion came from provisions related to product buybacks, even though this activity occurred after the end of the accounting period.

The management stated that the provision was determined based on available information and reasonable assumptions at the time of preparing the financial statements. The provision criteria included the value of acquired diamonds, the estimated recovery price, and the estimated adjustment rate for each diamond size group.