Phú Thịnh-Nhà Bè Garment to halt production

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  二. 二 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  二. 二 million shares on the Hà Nội Stock Exchange.

This decision is sought to overhaul its operations which have been declining since  二0 一 二.

Net profits of the HCM City-based garment company dropped from VNĐ 七. 五 billion (US$ 三 三0 million) in  二0 一 二 to an estimated loss of over VNĐ 二 billion in  二0 一 六. This year is the first time this company has reported a loss.

Its sales decreased  二 一. 五 per cent year-on-year to VNĐ 三 三 billion this year.

At its annual shareholders’ meeting earlier this year, the company approved the targets of nearly VNĐ 四 九 billion in net revenues and VNĐ 三. 三 billion in net profits, as well as a  一0-per-cent dividend.

In its extraordinary shareholders’ meeting on December  二 四, the garment company decided to stop manufacturing apparel from January  一 二 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  一 九 per cent of capital, equivalent to VNĐ 五. 七 billion, in Nhà Bè Real Estate Development JSC, as well as sell stakes worth a combined VNĐ 二 billion in Việt Thắng Garment JSC and NBC Co妹妹unications 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  二0 一 四 and debuted shares on the Hà Nội Stock Exchange in December this year under the stock code of NPS.

Its share prices climbed  一 五 一 per cent since its debut to around VNĐ 一 二,000 per share. However, prices hit the floor prices in the last two sessions, to VNĐ 一0, 二00 each after the information on delisting was announced. – VNS