Garmex Saigon Textile Company's shares have been delisted.

The Ho Chi Minh City Stock Exchange has just issued a decision to delist GMC shares of Garmex Saigon Joint Stock Company.

Workers at Garmex Saigon – Photo: GARMEX SAIGON

GMC shares are currently under control due to negative after-tax profits in the audited financial statements for the two most recent years (2022-2023).

According to regulations, shares of a public company are delisted when the listed company ceases or is suspended from its main production and business activities for one year or more.

In fact, Garmex Saigon has suspended its main production operations from May 2023 until now.

At its peak, in late 2018, this textile and garment company employed over 4,100 workers. However, as of 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 its GMC shares have been listed on the HoSE since 2006.

The company used to have major clients 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 for the sharp decline in Garmex Saigon's business results.

One of the impacts is the repercussions from Gilimex's lawsuit against Amazon.

From mid-2022, Amazon reduced orders from suppliers, including Gilimex, which outsourced manufacturing to Garmex Saigon.

Garmex Saigon's business results from 2018 to the first nine months of 2024 – Photo: HONG PHUC

Garmex Saigon has temporarily suspended production and business operations, generating no revenue due to a lack of orders, since May 2023.

In 2023, due to low prices and a lack of orders, the company was only temporarily suspended from operation.

During the temporary suspension, the company restructured its workforce, retaining only a select number of employees in departments such as sales and planning, engineering, accounting, warehousing, electrical and machinery management to handle assets, inventory, and continue seeking orders.

Total assets are still nearly 398 billion VND.

Garmex Saigon's main business is industrial garment manufacturing, with its primary product being ready-made clothing.

By the last two quarters of 2024, the company still had no garment orders, only sewing blankets and running a pharmacy at 213 Hong Bang, but the revenue was negligible.

The company's management stated that they will resume core production and business operations in the future if conditions are favorable.

Currently, the company and its major shareholders are seeking partners in Europe and the US to secure orders to revive its core business.

Regarding the plan to restore its core business, Garmex Saigon is in contact with customers, and if successful, will begin garment manufacturing at its Quang Nam factory in March 2025.

If conditions are favorable, the company expects to resume production at its Quang Nam factory with 1,200 employees by the end of 2025.

As of the end of September 2024, Garmex Saigon's total assets had decreased by more than 5% compared to the beginning of the year, totaling nearly 398 billion VND, with total debt of nearly 10 billion VND and negative equity of nearly 82 billion VND.

Source: https://tuoitre.vn/co-phieu-cong-ty-det-may-garmex-sai-gon-bi-huy-niem-yet-20241228144515366.htm