A nearly 50-year-old garment company received sad news at the end of the year.

(NLDO)- After the news of mandatory delisting, this company's stock continuously hit the floor...

The Ho Chi Minh City Stock Exchange (HOSE) has just announced a decision to compulsorily delist more than 33 million GMC shares of Garmex Saigon Joint Stock Company from January 24.

The reason is that Garmex Saigon has stopped its main production and business activities for more than 1 year, which is a case of mandatory delisting according to regulations.

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 until the time of issuance of the audit report on August 15, 2024.

GMC shares were listed on HOSE in 2006. After the news of mandatory delisting, this stock hit the floor for many consecutive sessions. Closing the session on January 7, GMC shares hit the floor, down to 5,450 VND/share, the lowest in over 11 years.

Decision to delist GMC shares

Before being forced to delist, GMC shares were under control due to net losses for 2 consecutive years in 2022-2023.

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 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.

According to the financial report, in the first 9 months, this garment enterprise recorded revenue of more than 474 million VND, equivalent to 6% compared to the same period in 2023. The majority of this revenue is from providing services and liquidating old machinery.

After deducting expenses, Garmex Saigon reported a loss of nearly VND8 billion, raising the accumulated loss to nearly VND82 billion.

Garmex's leaders have proposed many solutions to overcome difficulties such as shifting to real estate; expanding to pharmaceutical retail and soon logistics, but they have not been effective.

Regarding the plan to restore the main industry, Garmex said it is in contact with customers, and if there are any, it will deploy sewing at the Quang Nam factory in March 2025.

Source: https://nld.com.vn/mot-cong-ty-may-gan-50-nam-tuoi-nhan-tin-buon-vao-cuoi-nam-196250108100347168.htm