|
Gilimex prepares to “resolve” the $280 million lawsuit against Amazon – Illustration |
The Ho Chi Minh City Export and Import Production and Trading Joint Stock Company (Gilimex, HOSE: GIL) plans to hold an extraordinary general meeting of shareholders on the morning of September 11th in Ho Chi Minh City. The main agenda item is the lawsuit against Amazon Robotics LLC.
According to the proposal, Gilimex stated that Amazon has been a major customer since 2014. The company has heavily invested in factories and personnel to meet the partner’s requirements. However, Amazon suddenly reduced its orders, violating the cooperation contract, causing approximately $280 million in damages to Gilimex. In 2022, Gilimex officially filed a lawsuit in the US court, and the case is still ongoing.
The Board of Directors seeks shareholder approval for a mechanism to protect the interests of individuals involved in the lawsuit. Accordingly, the legal representative, General Director, management team, and employees supporting the lawsuit will not be held personally liable for any damages and will have their interests, honor, and reputation protected. At the same time, the Company proposes a bonus of 20% of the remaining amount received from Amazon after deducting losses and litigation costs.
In parallel, Gilimex also suggested a success fee for legal consulting units participating in the lawsuit, amounting to 20% of the total amount the Company receives according to the effective judgment in the US.
Impact of the lawsuit
From 2014 to 2021, Amazon accounted for up to 80% of Gilimex’s revenue. To serve this partner, the company hired more than 7,000 employees and expanded its production scale. When Amazon cut orders, Gilimex faced excess capacity, high inventory levels, and plummeting profits. In 2023 and 2024, the company’s net profit averaged only VND 27 billion per year, a significant decrease compared to previous years.
| Gilimex’s business results for the period 2018-2024 |
According to the plan, the US court may issue a ruling in Q3/2025. If successful, Gilimex expects to compensate for its losses and resume operations. However, if no compensation is received, the company could lose up to one-third of its equity, severely impacting its finances and stock value.
The effects of this case have also spilled over to Garmex Saigon (GMC), Gilimex’s garment manufacturer. Since May 2023, GMC has been forced to discontinue its garment business due to lost orders, pivoting to sports field rentals, generating revenue of over VND 508 million in the first half of 2025. GMC currently has over VND 109 billion in inventory, including goods related to Gilimex that remain unresolved.
HOSE has issued two reminders for the late release of Q2 financial statements
Gilimex has delayed the publication of its Q2/2025 financial statements (separate and consolidated), despite receiving two reminders from HOSE. The most recent Q1/2025 financial statements showed a 43% and 71% decrease in revenue and after-tax profit, respectively, compared to the same period last year.
On the stock market, GIL shares surged to the ceiling price of VND 19,000 per share on August 22nd, with nearly 3 million shares in the buying queue at the ceiling price, despite the VN-Index falling by nearly 43 points. In the past three months, GIL’s market price has recovered by 16%, but it is still 8% lower than a year ago. Compared to its historical peak of over VND 57,000 per share in April 2022, GIL’s current price is 67% lower.
| GIL share price movement in the past year |
– 16:33 22/08/2025
“Gilimex Updates Shareholders on Amazon Lawsuit Developments”
Gilimex has revealed that Amazon’s abrupt change and significant reduction in demand, which breached the cooperation contract between the two parties, has severely impacted the company’s operations and business. The impact of this breach has resulted in a staggering loss of $280 million for Gilimex.
The E-commerce Wars: Amazon Warns Chinese Sellers Against Undercutting Prices on Temu
Amazon is facing a fierce battle to defend its home turf against the onslaught of rivals such as Temu, Shein, and TikTok Shop. The e-commerce giant, which has dominated the online retail space for decades, is now facing a formidable challenge from these emerging platforms that are quickly gaining traction among consumers. With their unique offerings and aggressive strategies, these competitors are threatening to erode Amazon’s market share and shift the landscape of online shopping. The battle for the e-commerce throne has begun, and Amazon is gearing up to protect its dominance in the face of this rising threat.
Captivating the American Market: Unlocking Success in US Home Decor Exports
Businesses should strive to understand the preferences, aesthetics, and even dining habits of American consumers. By investing in product features that cater to these tastes, companies can gain a competitive edge when selling into this market.
Selling Wooden Furniture to the US: “Being in Vietnam is an Advantage”
Mrs. Nguyen Yen My, Senior Account Manager at Amazon Global Selling Vietnam, believes that Vietnamese-made wooden furniture is well-positioned for success in the US market, one of the largest destinations for this industry.
The $2 Billion Lottery Ticket Dispute: Will the Court’s Decision Lead to a Payout?
Mr. Le Trung Phuoc, Director of the Thua Thien – Hue Provincial Lottery Company, expressed the company’s empathy and desire to pay the lottery winner.
