After more than a year and a half of no orders, shares of a major textile and garment company were delisted.

ANTD.VN - Ho Chi Minh City Stock Exchange (HOSE) has just announced the decision to compulsorily delist GMC shares of Garmex Saigon Joint Stock Company.

According to the announcement, GMC shares are currently under control because the after-tax profit on Garmex Saigon's audited financial statements in the last two years (2022-2023) are all negative numbers.

In addition, based on the audited semi-annual separate and consolidated financial statements for 2024, along with documents from the auditing unit AASCS, Garmex Saigon has temporarily suspended its main production and business activities from May 2023 to the time of issuance of the audit report on August 15, 2024.

Accordingly, the company does not generate revenue and production costs for orders, only incurring some insignificant costs for retained direct and indirect department staff, maintenance costs, and maintenance of fixed assets and inventories.

Pursuant to Decree No. 155/2020/ND-CP dated December 31, 2020, which stipulates that shares of a public company will be delisted when the following cases occur: "The listed organization stops or is forced to stop its main production and business activities for 1 year or more", HOSE said that GMC shares fall into the case of mandatory delisting and will have to be delisted according to regulations.

Garmex Saigon used to be a textile enterprise with annual revenue of thousands of billions.

On the stock market, GMC shares fell by the full margin this morning (December 30) after the above information.

Garmex Saigon Joint Stock Company (GMC), formerly known as the Ho Chi Minh City Garment Factory Union, was established in 1976, converted to operate as a joint stock company in 2004 and listed on HOSE in 2006.

The company operates mainly in the field of manufacturing and exporting high-end clothing according to available markets. Main products include Jackets, ski wear, sportswear, trousers, T-shirts, Polo shirts, Pullovers, sportswear, etc.

The company has 5 factories including An Nhon, An Phu, Binh Tien, Tan My & Garmex Quang Nam. Before the Covid-19 pandemic, this enterprise had more than 4,000 workers.

Garmex Saigon has maintained a revenue of more than 1,000 billion VND for dozens of years from 2021 and before.

However, due to the impact of the epidemic, orders became difficult and in 2022, sales dropped by 93% compared to the previous year, the first time the Company reported a loss.

In the third quarter of 2024, GMC recorded a loss of VND 8.7 billion, bringing the accumulated loss by the end of the third quarter to nearly VND 82 billion.

In early December, regarding the production and business situation, Garmex Saigon said that the temporary suspension of main production and business (garment), no revenue generation due to lack of orders to operate from May 2023 to present is the main objective cause leading to the difficulties of this enterprise.

In 2023, due to low unit prices and no orders, the company only temporarily suspended its main production and business activities. During the period of temporary suspension of production, the company restructured its workforce, retaining only a number of indirect and direct department employees (business - planning, engineering, accounting, warehouse, electromechanical, machinery and equipment) to manage assets, inventories and continue to seek orders, so the company still incurred costs for the garment industry.

The company said that in the future, if conditions are favorable, the company will restore its main production and business. Currently, the company and its major shareholders are looking for European and American partners to get orders to restore the garment industry.

It is known that due to difficulties in its main business activities, since 2023, Garmex Saigon has shifted to real estate, through increasing its capital contribution at Phu My Company with an amount of more than 19 billion VND, bringing the total capital contribution to nearly 24 billion VND, equivalent to 32.47% of charter capital.

Currently, Phu My Company is implementing two projects: Phu My Commercial Housing Area and Tan My Commercial Housing Area.

Garmex Saigon said it is monitoring and urging Phu My Joint Stock Company to complete the Phu My Housing Project to sell products to recover the investment capital contributed to this enterprise to implement the project, in order to bring revenue and profit to the company.

Regarding the plan to restore the garment industry, the company is in contact with customers. If there are orders, it is expected to start sewing at the Quang Nam factory in March 2025. If all goes well, it is expected to restore production at the Quang Nam factory with 1,200 workers by the end of 2025.

Not only is the revenue "empty", the number of employees of the enterprise is shrinking day by day. According to statistics, as of December 31, 2023, the total number of employees of the enterprise is only 35 people, a decrease of 2,066 employees compared to 2022. In the last quarter of 2023 alone, this enterprise cut 1,947 people. According to the financial report of the third quarter of 2024, by October 30, 2024, the Company only has 31 employees.

Source: https://www.anninhthudo.vn/hon-1-nam-ruoi-trang-don-hang-co-phieu-doanh-nghiep-det-may-lon-bi-huy-niem-yet-post599814.antd