Ho Chi Minh City Stock Exchange has just decided to delist GMC shares of Garmex Saigon Joint Stock Company.
Workers at Garmex Saigon – Photo: GARMEX SAIGON
GMC shares are currently under control because the after-tax profit on the Audited Financial Statements of the last two years (2022-2023) is negative.
According to regulations, shares of a public company are delisted when the listed organization stops or is forced to stop its main production and business activities for one year or more.
In fact, Garmex Saigon has temporarily stopped production since May 2023.
At its peak in late 2018, this textile and garment company employed more than 4,100 workers. But by the end of October 2024, Garmex Saigon had only 31 employees.
Garmex Saigon is headquartered in Go Vap District, Ho Chi Minh City. The company was established in 1976 and GMC shares have been listed on HoSE since 2006.
The company used to have big customers such as Decathlon (France), Columbia (USA), Cutter & Buck (USA)... and achieved revenue of over 2,000 billion VND and net profit of over 120 billion VND in 2018.
There are many reasons leading to the sharp decline in business results of Garmex Saigon.
One of them is the impact from the consequences when partner Gilimex sued Amazon.
From mid-2022, Amazon reduced orders from suppliers, including Gilimex, the unit that hired Garmex Saigon to process.
Garmex Saigon's business results from 2018 to 9 months of 2024 - Photo: HONG PHUC
Garmex Saigon has temporarily suspended production and business, generating no revenue due to lack of orders to operate from May 2023 to present.
In 2023, due to low unit prices and no orders, the company was only temporarily suspended.
During the suspension period, the company restructured its workforce, retaining only a number of departmental staff such as business - planning, engineering, accounting, warehouse, electromechanical and machinery and equipment to manage assets, inventory and continue to seek orders.
Total assets are nearly 398 billion VND
Garmex Saigon's main business is industrial garment, with the main product being ready-made clothing.
By the last two quarters of 2024, the company still had no garment orders, only sewing blankets and operating a pharmacy at 213 Hong Bang, but the revenue was insignificant.
The company's board of directors said that in the future, if conditions are favorable, they will restore main production and business.
Currently, the company and its major shareholders are looking for European and American partners to get orders to restore the main business line.
Regarding the plan to restore the main industry, Garmex Saigon is contacting customers, if any, it will deploy sewing at the Quang Nam factory in March 2025.
If the situation is favorable, the company is expected to restore production at the Quang Nam factory with 1,200 workers by the end of 2025.
As of the end of September 2024, Garmex Saigon's total assets decreased by more than 5% compared to the beginning of the year, to only nearly 398 billion VND, total debt of nearly 10 billion VND and negative equity of nearly 82 billion VND.
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