After being forced to delist on HoSE, GMC shares of Garmex Saigon JSC were re-traded on UPCoM from February 12, but were put under restricted trading.
After being forced to delist on HoSE, GMC shares of Garmex Saigon JSC were re-traded on UPCoM from February 12, but were put under restricted trading.
The Hanoi Stock Exchange (HNX) has just announced its decision to put GMC shares of Garmex Saigon Joint Stock Company under restricted trading on the first trading day on UPCoM. Accordingly, GMC is only allowed to trade on Fridays every week.
The decision was made because the Ho Chi Minh City Stock Exchange (HoSE) had previously delisted more than 33 million GMC shares from January 24, 2025. The reason for the delisting was that Garmex had stopped its main production and business activities for one year or more.
On February 5, 2025, HNX approved the registration of GMC shares trading on UPCoM, with a reference price of VND 4,700/share, corresponding to a market capitalization of nearly VND 160 billion. However, on the first trading day (February 12, 2025), this stock was put on the restricted trading list.
HNX requires that within 15 days from the date the shares are restricted from trading, Garmex must have a written explanation of the cause and propose a solution.
Previously, on December 5, 2024, Garmex sent a document to HoSE informing about its production and business situation, affirming that the garment industry is the company's main business sector. However, since May 2023, the company has temporarily suspended operations due to lack of orders, resulting in no revenue. However, the company still maintains some costs to manage assets, inventory and seek new orders.
In the third and fourth quarters of 2024, the company had no garment orders but did quilt sewing and pharmacy business with insignificant revenue. Garmex is looking for partners from Europe and the US to restore production.
The company is planning to restart the garment industry, expected to start production at the Quang Nam factory in March 2025 with the expectation of expanding to 1,200 workers by the end of the year. At the same time, Garmex is also monitoring and urging Phu My Joint Stock Company to complete the Phu My Housing Project to sell products and recover investment capital.
According to the financial report for the fourth quarter of 2024, Garmex recorded a consolidated loss of more than VND 10 billion, bringing the total accumulated loss by the end of 2024 to more than VND 92 billion. Although revenue in the fourth quarter of 2024 increased from VND 134 million to VND 382 million, mainly from selling blankets and pharmacy business, it still could not cover operating costs.
Garmex said it would continue to cut costs, liquidate unused assets and push for the completion of the Phu My Housing Project to recover capital. However, the company has yet to receive new garment orders.
Source: https://baodautu.vn/chuyen-len-san-upcom-co-phieu-gmc-bi-han-che-giao-dich-d245352.html
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