Garmex Saigon's shares are about to be delisted after ceasing operations.

The Ho Chi Minh City Stock Exchange (HoSE) has just announced the decision to compulsorily delist more than 33 million GMC shares of Garmex Saigon Joint Stock Company (HoSE: GMC) from January 24. The last trading day is January 23, 2025.

The reason is that Garmex has stopped doing business for more than 1 year, which is a case of mandatory delisting according to the provisions of Point b, Clause 1, Article 120, Decree 155.

Previously, on December 27, 2024, HoSE announced that it would consider delisting GMC shares.

HoSE said that shares of Garmex Saigon Joint Stock Company are currently subject to securities control under Decision No. 158/QD-SGDHCM dated April 4, 2024 of the Ho Chi Minh City Stock Exchange because the after-tax profit on the audited financial statements (FS) in the last 2 years (2022-2023) of the listed organization is a negative number.

Based on the audited separate and consolidated financial statements for the 2024 half-year of GMC and document No. 735/CV-2024/AASCS dated December 16, 2024 of Southern Accounting and Auditing Financial Consulting Services Company Limited (AASCS), the following information is confirmed: "The Company has temporarily suspended its main business production from May 2023 to present (up to the time of issuance of the audit report on August 15, 2024)". Specifically, the company has no revenue and only incurred costs for production of orders, only incurred some insignificant costs for retained direct and indirect department employees, costs for maintenance and repair of fixed assets and inventories.

Pursuant to Point b, Clause 1, Article 120 of Decree No. 155/2020/ND-CP dated December 31, 2020, it is stipulated that shares of a public company shall be delisted in the following cases: "The listed organization ceases or is forced to cease its main production and business activities for 01 year or more".

Before being forced to delist, GMC shares were under control due to net losses for two consecutive years in 2022-2023. As of September 30, 2024, Garmex's accumulated losses increased to VND82 billion. Cash flow from operating activities was negative VND20 billion.

Garmex Saigon – formerly Saigon Garment Production and Trading Joint Stock Company was established in 1976, initially as a state-owned enterprise. In 2004, Garmex Saigon was equitized and listed on HoSE with stock code GMC since 2006.

Before 2020, Garmex Saigon was one of the largest textile and garment enterprises in Vietnam with a regular revenue of over VND 1,500 billion and a scale of over 4,000 employees. However, business results have declined since the Covid-19 outbreak. In the past two years, the company has had almost no revenue, causing the number of employees to decrease sharply, to only 31 people as of October 30, 2024.

The main reason comes from the dependence on a major partner, Binh Thanh Import-Export Production and Trading Joint Stock Company (Gilimex). When the Covid-19 pandemic broke out, Gilimex lost its strategic partner, the e-commerce giant Amazon Robotics LLC, leading to Garmex Saigon no longer having any processing orders. At the same time, the company faced a large amount of inventory without an effective solution.

Garmex leaders have proposed many solutions to overcome difficulties but have not been effective, such as shifting to real estate; expanding to pharmaceutical retail and soon logistics. Regarding the plan to restore the main industry, Garmex said it is in contact with customers, if any, it will deploy sewing at the Quang Nam factory in March 2025.