Garmex Saigon Joint Stock Company (code GMC) has just announced unusual information about the resolution to finalize the list of shareholders to collect opinions on the plan to transfer land use rights and all assets attached to the land of the company and its subsidiaries. The time to collect shareholders' opinions is expected to be from March 25 to April 15.
Specifically, the garment company will seek opinions on the transfer of land use rights of 50,173 square meters and construction works on the land in Hac Dich commune, Tan Thanh district, Ba Ria - Vung Tau province.
The above land belongs to Garmex Saigon and was granted a certificate by the Department of Natural Resources and Environment of Ba Ria - Vung Tau province in 2014.
In addition, Garmex Saigon will also transfer the right to use the 26,000m2 land and construction works at Ha Lam - Cho Duoc Industrial Park, Binh Phuc Commune, Thang Binh District, Quang Nam Province.
This land is under the ownership of Garmex Quang Nam Company Limited, one of the subsidiaries of Garmex Saigon and was granted a certificate in 2018.
The Board of Directors of Garmex Saigon is authorized to negotiate, decide on the price, form and time of transfer of the two above-mentioned assets.
The predecessor of Garmex Saigon is Saigon Garment Manufacturing and Trading Joint Stock Company. This enterprise was established in 1976 and started as a state-owned enterprise. Initially, this enterprise was called Ho Chi Minh City Garment Enterprise Union, the unit managing a large number of export textile and garment enterprises in Ho Chi Minh City.
Regarding the production and business situation in 2023, Garmex Saigon said it encountered many difficulties and few orders. In the first phase of the year, the company mainly focused on handling inventory.
According to the report of the Board of Directors of Garmex Saigon, if production at the factories is maintained, the company will suffer heavy losses. Therefore, the company must reorganize its apparatus, continue to cut labor, and temporarily suspend production to minimize losses.
Currently, Garmex Saigon has not yet recruited workers for the garment industry. In the near future, depending on market developments, the company will decide whether to invest in restoring the garment industry or not.
Along with the solution of diversifying industries to avoid risks, Garmex Saigon will seek partners to transfer unused assets, optimizing existing resources.
At the end of 2023, Garmex Saigon's consolidated net revenue was only VND8.3 billion, down 97% compared to 2022, and its after-tax loss was VND52 billion. Meanwhile, in 2022, this enterprise recorded a after-tax loss of VND84 billion.
Garmex Saigon’s notable investment last year was increasing its capital contribution from VND18.2 billion to VND29.6 billion at Phu My Joint Stock Company. Because this company increased its capital, Garmex Saigon still maintained its ownership ratio of 32.47%.
It is known that Phu My Joint Stock Company is the investor of a 1.5-hectare housing project and is expected to be implemented in the near future. Garmex Saigon expects this project to bring potential value to the company in the future.
The case of Tan Thuan Company transferring a project in District 7, Ho Chi Minh City to Quoc Cuong Gia Lai Company was determined to have caused a loss of 80 billion VND. However, there are still some issues that the investigation agency has not clarified.
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