12 January 2018

EVE officially expand business scope via acquisition of the affiliated company

Dear valued Shareholders,

Everpia JSC respectfully send you the Resolutions of BOD dated 29 Dec 2017 regarding the acquisition of Texpia’s entire project of manufacturing fabric and fabric for towel, particularly: buying entire asset, production line, materials and business right of Texpia JSC.

According to draft performance report of 2017, in the last 04 months of the year, Texpia had recorded the surplus profit, after ranges of innovated activities of Everpia, such as: reduce and rebuild the management personnel, training on working consciousness for staff, optimize the production management system. Based on the achievements, the expected turnover for 2018 would be around 93 billion VND, year-by-year sales growth is 15% on average, and net profit margin is expected to be 8-10%.

With the competence and nearly 25 years of experience in consumer garment business, Everpia could take advantage and develop the current available strength of Texpia, with 03 major advantages:

1.      Advantage on products
Main product line of Texpia is the fabric and cleaner made of micro fiber – a not very popular material in Vietnam so far, but very popular and favored in developed countries like Europe, America. This material is well-suited to Vietnamese climate and consumer habit, thus could be developed as fabric and cleaner used in industrial cleaning or civil consumer.

2.      Advantage on export customer network
Texpia has a wide network of loyal export customers over many countries, especially in Europe. In coming time, Everpia could take advantage of this customer network to bring the bedding and padding deeper penetrated into European market, and diversify the exporting product portfolio by adding over 100 new items of Texpia into the product range.

3.      Advantage on domestic market’s potential
In 2017, the domestic sales of Texpia was just accounting for 2% of total sales. Therefore, this is still a very potential market to exploit in upcoming years, by taking advantage of the Everpia’s widespread distribution network. With the strong base of corporate and hotel customers, together with nearly 500 agents and 10 showrooms nationwide, Texpia’ expected domestic sales of towel and cleaner could gradually increase from 300,000 USD in 2018 to 800,000 USD in 2020, equivalent to the propostion in revenue from 7% to 15%.

With these above advantages, the acquisition of entire Texpia project will contribute to enhance the competitiveness of Everpia on the market, and is the basis for the Company to create value and reverse the provision deducted for Texpia.