HCM CITY — A leading textile company based in HCM City is at risk of being delisted from the HCM City Stock Exchange (HoSE) following a suspension of operations for one year, according to HoSE.

According to the semi-annual financial report for 2024 released by the Southern Auditing and Accounting Financial Consultancy Service, Ltd. (AASCS), Garmex Saigon Corporation (GMC) ceased production from May last year to August this year. 

The share price stood at VNĐ7,400 (US$35 cent) on December 27.

GMC consistently reported revenues amounting to thousands of billions of đồng from 2012 to 2021. 

At the end of 2022, its partner, the Bình Thạnh Export Production and Trading Joint Stock Company, abruptly halted production due to the participation of Amazon Robotics LLC, notwithstanding prior investments in infrastructure and inventory.

As a result, GMC saw an 80 per cent decline in revenue in 2022, totaling VNĐ292 billion, and has since reported ongoing financial losses.

Since May 2023, it has temporarily suspended all production activities, including garment sewing and the manufacturing of fabric cabinets, due to a lack of orders. 

GMC recorded revenue of VNĐ475 million in the first nine months, down 94 per cent year-on-year. The cumulative loss approached VNĐ82 billion as of the end of Q3.

To maintain operations, GMC announced plans earlier this year to sell two land plots totaling nearly 80,000 square metres and has liquidated various assets, including vehicles and machinery. 

At its peak, GMC had five factories on over 10 hectares, 70 production lines, and over 4,000 employees. By the end of 2023, the workforce has fallen to just 35.

Founded in 1976 as a State-owned enterprise, Garmex Saigon Corporation, formerly Saigon Garment Production and Trading JSC, underwent equitisation in 2004 and has been listed on HoSE since 2006. — VNS