(NLDO)- The cooperation period is 12 months from the date of signing the contract and the estimated contract value is about 1.8 billion VND.
Garmex Saigon Joint Stock Company (stock code: GMC) recently approved a transaction contract with an organization related to an insider on business cooperation in sports.
Specifically, Garmex Saigon cooperates with VinaPrint Joint Stock Company, an organization related to Mr. Bui Minh Tuan - Chairman of the Board of Directors and legal representative of VinaPrint Joint Stock Company.
Regarding the form of cooperation, Garmex Saigon will provide a part of the land area managed by the company ( minimum 1,000m2 and maximum 3,000m2 , handover progress according to actual needs) to cooperate in business with VinaPrint in the field of sports education, pickleball courts and other sports.
The cooperation period is 12 months from the date of signing the contract, with consideration for extension based on actual conditions. The estimated contract value is approximately 1.8 billion VND.
The move to cooperate in building a Pickle ball court took place in the context of Garmex Saigon facing financial difficulties.
Garmex Saigon Factory Source: Garmex
Specifically, in 2024, this enterprise recorded net revenue of only VND 857 million (down 90% compared to 2023), mainly from services, pharmacy business and liquidation machine sales, while revenue from the main garment industry was insignificant.
After deducting expenses, the company continued to have a net loss of more than VND 18 billion, but it has improved significantly compared to the loss of nearly VND 52 billion in 2023. Accumulated loss by the end of 2024 reached VND 92 billion, an increase of 25% compared to the beginning of the year.
In the document explaining the 2024 after-tax profit, a representative of Garmex Saigon said that up to this point, the company continues to have no orders for garment manufacturing. The company is still researching and investing in new industries according to trends for medium and long-term development.
At the end of 2024, Garmex's total liabilities were more than VND 8.8 billion, down more than 67% compared to the beginning of the year. Of which, other short-term payables were nearly VND 2.7 billion, accounting for 30.5% of total assets; deferred income tax payable was more than VND 3.3 billion, down 77.7%, accounting for 37.9% of total assets.
Garmex Saigon was established in 1976 and was once a leading garment company in Ho Chi Minh City. Before the COVID-19 pandemic, the company had more than 4,000 employees, but by September 30, 2024, there were only 31 people left.
During the 2012-2021 period, the company maintained a revenue of thousands of billions of VND per year, before plummeting to 474 million VND in the first 9 months of 2024.
The decline of Garmex Saigon has many different causes, including the general difficulties of the market affected by the COVID-19 pandemic, causing a decrease in orders.
In addition, Garmex Saigon also suffered a chain reaction from the sudden production cut by Amazon Robotics LLC, its major partner Gilimex... causing the business to suffer.
On the stock market, recently, the Hanoi Stock Exchange (HNX) has approved the registration of trading of GMC shares of Garmex Saigon.
Accordingly, nearly 33 million GMC shares will be traded on UPCoM from February 12 with a reference price of VND4,700/share. However, HNX announced that GMC shares will be restricted from trading on the first trading day, and will only be traded on Fridays every week.
The reason is that Garmex was forced to delist from the Ho Chi Minh City Stock Exchange (HOSE) from January 24, 2025 due to the suspension of its main production and business activities for 1 year or more.
GMC shares are currently priced at VND5,200/share, up nearly 11% since trading on UpCoM and nearly 2% over the past week.
Source: https://nld.com.vn/tiep-tuc-khong-co-don-hang-mot-cong-ty-may-gan-50-nam-tuoi-hop-tac-kinh-doanh-san-pickleball-196250222140936001.htm
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