Taiwan-owned garment producer Grand Twins International (Cambodia) Plc (GTI) saw a net loss of $23,649 in its first quarter ended March 31, 2023 (Q1 '23) compared to a $275,167 net profit in the corresponding period last year.
In its delayed filing with Cambodia Securities Exchange (CSX) today, the net loss was due to a decline in revenue and accrued minimum tax expenses for the quarter under review.
Revenue fell 42.6 percent to $15.8 million in Q1’23 from $27.6 million a year ago because of a decrease in customer orders, said GTI, a manufacturing subcontractor, an original design manufacturer and exporter.
Its revenue is derived from the sale of products, subcontract and CMP (cut, make and pack). In Q1’23, the sale of products of $63.9 million accounted for 98.9 percent of its total revenue, with subcontract orders coming in at 1.12 percent.
There was no revenue from the CMP segment, which has seen no activity in both the first quarters ended 2022 and 2021.
GTI’s top customer is Adidas. “Over the years we have developed expertise, purchased machinery and developed production lines that meet the standards of the Adidas Group,” the group said.
It also manufactures for global brands, such as Puma, Polo, Napapijri, Marc Jacobs, French company Aigle, Tory Burch, jWS, Callaway and Sundek.
In Q1’23, swimming trunks (24.9 percent), shorts (13.9 percent) and pants (12.1 percent) were among GTI’s large mix sale products.
A large percentage of its exports in the first quarter of 2023 was to Europe (58 percent), the US (26 percent), Asia and other countries (16 percent).
Going forward, GTI is committed to putting in more effort to enhance its corporate governance, and accomplish its vision and mission. “Our target is to achieve higher profit than the previous years,” said its CEO Chen Tsung-Chi.
The stock closed 0.6 percent up at 3,230 riel for a full market capitalisation of 129.2 billion riel ($31.3 million).