Gilimex begins to generate revenue from industrial parks

Binh Thanh Import-Export Production and Trading JSC's (Gilimex) first ever revenue from industrial real estate reached over VND15 billion ($611,500) in Q4/2023, with a gross profit margin of 59%.

The firm's consolidated revenue in the quarter from its main business lines, textiles and industrial real estate, dropped 12% to VND230 billion ($9.37 million), while gross profit fell 32% to VND28.2 billion ($1.14 million).

But other business activities allowed Gilimex to earn a net profit of VND91 billion ($3.7 million) in the quarter, nine times more than the same period in 2022, according to its consolidated financial statement.

The corporation, listed on the Ho Chi Minh Stock Exchange (HoSE) as GIL, said the result was the outcome of its restructuring.

As a result, the company avoided a full-year loss of nearly VND28 billion ($1.14 million), a 92% decrease from 2022 and the lowest amount since 2007.

In the textile and garment sector, in addition to the industry's general fall in orders, Gilimex was impacted by Amazon's unexpected cutoff of orders, which accounted for 80% of its revenue. The company laid off almost 900 employees last year, leaving only 968 employees.

GIL has invested in constructing industrial parks in provinces such as Thua Thien-Hue, Vinh Long, Dong Thap, Quang Ngai, and Quang Nam.

Among them, Phu Bai 4 Industrial Park in Hue and Gilimex Vinh Long Industrial Park in Vinh Long province have been approved in principle for investment.

Gilimex Phu Bai 4 Industrial Park spans 460 hectares and will require a total investment of VND2,600 billion ($106 million). In the paper describing its business results for the third quarter of 2023, Gilimex stated that it was speeding up this project in order to hand over land to secondary investors in Q4/2023.

GIl's stock price on Friday was VND31,000 ($1.26) per share.