The Cambodian-listed Taiwanese garment manufacturer Grand Twins International (Cambodia) Plc (GTI) reported a slight decline in business performance in the third quarter (Q3) of 2023 amidst a global reduction in demand.
The downturn is attributed to the ongoing Russia-Ukraine conflict and geopolitical competition among major powers.
In a November 15 filing to the Cambodia Securities Exchange (CSX), the company reported a revenue of 66.432 billion riel (about $16.124 million) for Q3, a decrease of 34.46% from 100.48 billion riel ($24.39 million) in Q3 2022.
Profits before tax stood at 512 million riel ($124,276) for the period, a 53.54% decrease from the previous year’s earnings in Q3 of 1.091 billion riel ($264,769).
The company experienced a loss after tax of 281.15 million riel (USD 68,327) for the quarter.
As of September 30, GTI’s total assets were valued at 351.55 billion riel ($85.33 million), a slight increase from 349.69 billion riel ($84.88 million) in Q3 2022.
“Since our incorporation in 2007, Grand Twins has produced and expanded products to meet customer requirements, establishing ourselves as a leading garment manufacturer in Cambodia. We strongly believe in our capability to create, develop and distribute to our global customers,” GTI chairman Yang Shaw-Shin stated in the filing.
“We continue to maintain good relationships with our main customers to receive more orders in 2023. Meanwhile, we are collaborating with other clients to enhance our revenue streams, including subcontracting and cutting, making and packing (CMP), aiming for higher income than the previous year,” he added.
The company’s June filing noted that it adopted its current legal name after becoming a public limited company on February 19, 2013.
GTI became the second company listed on the CSX on June 16, 2014, raising 77.12 billion riel ($18.71 million) through an initial public offering (IPO), according to the local bourse’s website.
On July 16, 2018, the company acquired the major garment manufacturer QMI Industrial Co Ltd, which has been operational in the Kingdom since the 1990s.
The filing stated that GTI source raw materials from mainland China, Taiwan and Vietnam, adding that in Q1 2023, “our export destinations included countries in Europe (58%), the US (26%) and Asia and other countries with 16% of total revenue”.
Yang stated that for the upcoming quarter of 2023, he is committed to exerting greater effort to enhance corporate governance and to achieve the company’s vision and mission. He emphasised, “Our target is to achieve higher profit than in previous years”.