With no orders, Garmex Saigon garment company must sell assets

In the third quarter of 2024, Garmex Saigon - a famous textile and garment export enterprise in Ho Chi Minh City - had a consolidated net revenue of just over VND 116 million, a loss of over VND 8.7 billion. In the first 9 months of 2024, GMC achieved a consolidated net revenue of over VND 474 million, a loss of nearly VND 8 billion.

Explaining the reason for this loss in the explanatory report sent to the State Securities Commission and the Ho Chi Minh City Stock Exchange, GMC said that up to this point, the company continues to have no orders for sewing costumes.

To overcome this, the company is still researching and investing in new industries following the trend to develop the company in the medium and long term. In addition, the company continues to reduce costs, liquidate unused assets, and monitor and promote delivery partners.

In addition to operating a pharmacy at the existing premises at 213 Hong Bang (District 5, Ho Chi Minh City), GMC urged its subsidiary to complete the Phu My housing project ( Ba Ria - Vung Tau ) to sell products and recover investment capital. The company also continued to exploit existing premises.

In the third quarter, implementing the resolution of the General Meeting of Shareholders and the Board of Directors, the company continued to offer unused assets for sale, but there were no successful offers, so other income decreased compared to the same period.

Many textile and garment export companies are facing a situation of no orders. (Illustration: Stock Express News)

Since the beginning of last year, the domestic textile and garment industry has faced many challenges due to the impact of the global and domestic economic situation. In particular, the problem of inflation in key markets such as the US and Europe has caused a decrease in purchasing power and orders.

In a document sent to the Ho Chi Minh City Stock Exchange (HoSE) in March 2024, Garmex Saigon left open the possibility of restoring the textile and garment sector. Instead, the company is stepping up real estate investment by contributing nearly VND24 billion to Phu My Joint Stock Company (an affiliated company), the investor of the Phu My commercial housing project. At the same time, the company plans to transfer land plots in Ba Ria - Vung Tau and Quang Nam .

Garmex Saigon has been operating for more than 20 years and is one of the largest garment manufacturers in the market, working with many international brands. The company used to have 5 factories in Ho Chi Minh City, Ba Ria - Vung Tau and Quang Nam, with a total area of ​​over 10 hectares and 70 production lines. The company suffered its first loss in 2022 when orders dropped sharply, with export sales dropping by 93% compared to a year earlier.

Ngoc Vy

Source: https://vtcnews.vn/rong-ra-khong-co-don-hang-mot-doanh-nghiep-may-o-tp-hcm-phai-ban-tai-san-ar905522.html