16 March 2017
BOD's resolution on investment activities in Cambodia and Germany
Dear Shareholders,
After reviewing investment activities of the Company, Board of Directors has decided and approved for the sale of 100% company’s contributed capital at Cambodian subsidiary, as well as canceling investment project in Germany as attached Resolution.
Everpia Cambodia Co., Ltd. was the very first foreign-outward investment project of Everpia in 2012. Observing the unstable political situation in Cambodia while tourism activities has also not developed and potential as such previous assessment, hence, B2B business for hotels has not been good as our expectation. Moreover, the government in Cambodia has applied many policies to protect local enterprises, which let Everpia Cambodia suffer from doing business. Hence, if the Company sell out entire amount of capital to local Cambodian investors, it may be better for the Company to keep maintaining market in Cambodia without carrying losses in the future. In which, requirement applied to the Buyer will include: to be an exclusive distributing agent of Everpia in Cambodia, and not to trade any other products except Everpia products, without written permission by Everpia.
Regarding to the investment project in Germany, on 12th Jan 2016, Ministry of Planning and Investment has issued Investment License no. 201600083 to allow the Company on contributing its capital for the subsidiary’s establishment in Germany, with total amount of 1.3 bil VND. The target is to build up market for the exportation of bedding products under Company’s brands into European market. However, the potential for retail selling and exportation has not been good as expection due to the fierce price competition with other products from Pakistan, Turkey and China. Therefore, the Company will not implement the plan anymore. In the upcoming period, the Company will keep carrying out exportation activities by doing OEM and seeking new opportunity in different market.
Yours sincerely,
File for download: BOD's resolution
After reviewing investment activities of the Company, Board of Directors has decided and approved for the sale of 100% company’s contributed capital at Cambodian subsidiary, as well as canceling investment project in Germany as attached Resolution.
Everpia Cambodia Co., Ltd. was the very first foreign-outward investment project of Everpia in 2012. Observing the unstable political situation in Cambodia while tourism activities has also not developed and potential as such previous assessment, hence, B2B business for hotels has not been good as our expectation. Moreover, the government in Cambodia has applied many policies to protect local enterprises, which let Everpia Cambodia suffer from doing business. Hence, if the Company sell out entire amount of capital to local Cambodian investors, it may be better for the Company to keep maintaining market in Cambodia without carrying losses in the future. In which, requirement applied to the Buyer will include: to be an exclusive distributing agent of Everpia in Cambodia, and not to trade any other products except Everpia products, without written permission by Everpia.
Regarding to the investment project in Germany, on 12th Jan 2016, Ministry of Planning and Investment has issued Investment License no. 201600083 to allow the Company on contributing its capital for the subsidiary’s establishment in Germany, with total amount of 1.3 bil VND. The target is to build up market for the exportation of bedding products under Company’s brands into European market. However, the potential for retail selling and exportation has not been good as expection due to the fierce price competition with other products from Pakistan, Turkey and China. Therefore, the Company will not implement the plan anymore. In the upcoming period, the Company will keep carrying out exportation activities by doing OEM and seeking new opportunity in different market.
Yours sincerely,
File for download: BOD's resolution