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Loss-making Garmex Saigon wants to transfer eight hectares of land

The Saigon Times

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HCMC – Garmex Saigon Corporation (HOSE: GMC) plans to sell nearly eight hectares of land to address difficulties stemming from dwindling orders and mounting losses.

The company has suspended production, reduced staffing levels and initiated asset liquidation due to persistent woes.

According to an announcement made on Monday, the list of shareholders eligible for voting on the proposed land sale will be finalized on March 15, with the voting period scheduled for March 25 to April 15.

The company is seeking approval for the transfer of over five hectares of land in Ba Ria-Vung Tau Province and 2.6 hectares in Quang Nam Province.

The firm has been struggling with industry-wide issues such as declining orders and supply chain disruptions, compounded by a contract dispute between its partner, Binh Thanh Import-Export Production & Trade JSC, and the U.S. retail giant Amazon.

In 2022, the company recorded losses of VND85 billion, followed by an additional loss of VND52 billion in 2023. As of the end of 2023, the company’s total assets had decreased by 22% compared to the beginning of the year, amounting to VND410 billion.

With outstanding debts nearing VND27 billion, the company’s leadership is taking action to restructure operations and mitigate financial losses.

Since December 2023, the company has been actively liquidating assets, including vehicles and machinery, as part of its cost-cutting plan.

Its workforce has shrunk from nearly 3,800 employees at the end of 2021 to just 35 individuals by the end of 2023.

Closing the trading session today, February 28, GMC shares stayed at their reference price of VND9,210 per share.

The VN-Index of the Hochiminh Stock Exchange continued its winning momentum today, driven primarily by gains in bank stocks. With 309 stocks advancing and 180 others dropping, the benchmark index rose by 17.09 points, or 1.38%, to 1,254.55 points.

However, stock trade decreased slightly in both volume and value over the previous session, with nearly 970.8 million shares valued at VND23.7 trillion transacted. Block deals totaled 71.2 million shares worth VND1.5 trillion.

Lender VCB was the main driver on the southern stock exchange, shooting up to its daily upper limit of VND97,400 per share. With a matching volume of 4.22 million shares, the stock contributed 9.2 points to the VN-Index.

Other bank stocks such as BID and VPB also performed well, contributing 1.27 and over one point to the main index, with gains of 1.7% and 2.84%, respectively. Other bank stocks advanced between 1.4% to 4.4%.

However, the HNX-Index of the Hanoi Stock Exchange edged down 0.21 point, or a marginal 0.09%, to 235.16 points, despite winners outnumbering losers by 95 to 78. There were 90.5 million shares worth VND1.8 trillion changing hands on the northern market.

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