On the morning of September 11, 2025, in Ho Chi Minh City, the Joint Stock Company for Production, Business, and Import-Export of Binh Thanh (Gilimex, HOSE: GIL) held an extraordinary general meeting, focusing on the legal dispute with Amazon in the US courts.
The presidium at Gilimex’s 2025 Extraordinary General Meeting – Photo: The Manh
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The company presented to the shareholders a report on the plan to protect its legitimate rights and interests, including success fees for consulting units (20% of the amount received from Amazon) and bonuses for individuals directly involved in the lawsuit (20% of the remaining amount after deducting damages and expenses). With an overwhelming approval rate of 97.25%, all contents were passed.
Previously, Amazon accounted for up to 80% of Gilimex’s revenue, leading to a massive expansion in factories and personnel. However, from the fourth quarter of 2022, the Group suddenly reduced orders, causing Gilimex to incur losses of about $280 million. Gilimex filed a lawsuit against Amazon in the US in 2022, with a court ruling expected in the third quarter of 2025. The company expects to receive compensation to offset losses but acknowledges that a defeat could result in a loss of up to one-third of its equity.
Gilimex is preparing to “resolve” a $280 million lawsuit with Amazon – Illustrative image
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In the absence of the Chairman, Gilimex shareholders focused on the benefits of the Amazon lawsuit.
Shareholders asked many questions about legal costs, legal basis, chances of winning the case, distribution of compensation, and especially shareholder benefits. A notable point was the absence of Mr. Le Hung – Chairman of the Board of Directors, which was confirmed by the presidium due to work reasons. On behalf of the chairman, Mr. Hoang Tien Dat, a member of the Board of Directors, presided over the meeting.
Mr. Dat said that the lawsuit had consumed a lot of the leadership and staff’s energy. The proposed bonus of 20% for individuals involved is reasonable as it is only calculated after deducting all costs and damages. For legal consulting units, the 20% success fee is negotiated on the principle that no fees will be incurred if the case is lost.
Gilimex’s leaders affirmed that Amazon’s sudden reduction in orders was not due to personal grudges but a change in business strategy. The company now has complete contracts, documents, emails, and related documents, giving it an advantage when filing a lawsuit. Mr. Dat emphasized that Amazon’s counterclaim is typical in international lawsuits, and Gilimex is ready to rebut it.
The lawsuit proceedings are ongoing, with a ruling expected in the third quarter of 2025. The enterprise stated that negotiation between the two parties is inevitable, and if no agreement is reached, the court will make a final decision.
Regarding shareholder benefits, Gilimex’s leaders said that if they win the case, the compensation will be accounted for in the post-tax profit, and the general meeting of shareholders will decide on the dividend plan. In addition, a favorable ruling is expected to positively impact the share price.
Business Turbulence and New Orientation after the Dispute
In addition to the lawsuit, Gilimex also shared about its production activities and the industrial park sector. The company has completed recruitment and is operating at maximum capacity at the Region 4 factory, continuing to develop stuffed animal products for IKEA and planning to develop this product line over the next five years. The headquarters on Phan Van Tri is currently a product development center and is considering restarting production when suitable products are available. In the industrial park sector, site clearance and compensation payments for new projects are being implemented, considering this a long-term pillar.
Since the dispute with Amazon broke out in late 2022, Gilimex’s revenue has plummeted, with quarterly revenue ranging from VND 100-300 billion, much lower than the period when it exceeded VND 1,000 billion. Profit has remained low, with consecutive quarters of losses.
| Gilimex’s business results for the period 2018-2024 |
In the second quarter of 2025, the company recorded a record loss of nearly VND 71 billion. In the first six months, the loss was nearly VND 68 billion, while in the same period last year, the profit was VND 9 billion. Half-year revenue decreased by 30% to VND 255 billion. With these results, the profit target of VND 150 billion in 2025 seems unattainable, while the revenue plan of VND 1,200 billion has only been achieved by over 21%.
On the stock exchange, GIL shares traded at VND 19,400 on the morning of September 11, up 9% in the last three months but still down 2% in one year. Compared to the historical peak of over VND 57,000/share in April 2022, the market price has fallen by over 65%.
| GIL share price movement since 2022 |
– 13:34 09/11/2025
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