Phú Thịnh-Nhà Bè Garment Joint Stock Company’s management board has agreed to halt its apparel manufacturing business from early next year, as well as to de-list all its 2.2 million shares on the Hà Nội Stock Exchange. — Photo baotintuc.vn

HÀ NỘI – Phú Thịnh-Nhà Bè Garment Joint Stock Company’s management board has agreed to halt its apparel manufacturing business from early next year, as well as to de-list all its 2.2 million shares on the Hà Nội Stock Exchange.

This decision is sought to overhaul its operations which have been declining since 2012.

Net profits of the HCM City-based garment company dropped from VNĐ7.5 billion (US$330 million) in 2012 to an estimated loss of over VNĐ2 billion in 2016. This year is the first time this company has reported a loss.

Its sales decreased 21.5 per cent year-on-year to VNĐ33 billion this year.

At its annual shareholders’ meeting earlier this year, the company approved the targets of nearly VNĐ49 billion in net revenues and VNĐ3.3 billion in net profits, as well as a 10-per-cent dividend.

In its extraordinary shareholders’ meeting on December 24, the garment company decided to stop manufacturing apparel from January 12 next year, citing unstable material sources, rising costs and a shortage of labour which has resulted in ineffective operations.

The garment company will also seek investors to offload its entire holding of 19 per cent of capital, equivalent to VNĐ5.7 billion, in Nhà Bè Real Estate Development JSC, as well as sell stakes worth a combined VNĐ2 billion in Việt Thắng Garment JSC and NBC Communications and Tourism JSC.

To focus on restructuring, the company will also leave the stock exchange but provided no specific timetable.

Phú Thịnh-Nhà Bè Garment turned into a joint stock company in January 2014 and debuted shares on the Hà Nội Stock Exchange in December this year under the stock code of NPS.

Its share prices climbed 151 per cent since its debut to around VNĐ12,000 per share. However, prices hit the floor prices in the last two sessions, to VNĐ10,200 each after the information on delisting was announced. – VNS