02 November 2021
Everpia's revenue and profit after tax (VND billion)
During this period, the Company increased its charter capital by issuing share for strategic partners in 2007, 2009 and 2010. By the end of 2010, Everpia's charter capital reached VND153bil, with VND191bil. of capital surplus. Besides, accumulated profit after tax accounted for VND225bil. With a solid financial foundation, bright business prospects and transparency of the founder, Everpia took another step forward when deciding to list on the Vietnam Stock Exchange (stock code EVE) – registered as one of the few pioneering FDI enterprises to go public.
After 4 years of being established from spirit and reckless decision of Mr.Lee, it is so proud of Everpia's achievements.
By 2012, Vietnam's economy faced many difficulties when GDP growth was only 5.02%, this is the lowest level in more than 10 years of Vietnam. In two years, 2011-2012, Vietnam implemented a tight monetary policy, interest rates increased very high in order to curb inflation. The businesses activities and the consumption were strongly influenced by this decision.
The popularity of the Everon brand in the difficult business environment at that time caused many competitors to rush to compete for market share with a low-cost strategy. The fertile land suddenly became more crowded than ever. With the low-price policy, the competitors have tried their best to capture every bit of market share, Everpia had to apply many policies to keep customers such as reducing prices, increasing discounts rate for agents, increasing advertising and selling expenses, etc. Brand name like Hanvico, Song Hong, Edena, Dunlopillo, etc made Everpia's revenue and profit almost flat during the period from 2012-2019.
Everpia's revenue and profit after tax in the period 2012 - 2019 (VND billion)
Everon – Success Comes From Passion And Transparency
Talking about the most popular high-class bedding product in Vietnam, the first brand that consumers talk about is EVERON of Everpia JSC. This is the outstanding success of a brand after 20 years of launching. But few people know that behind this success is the life and career story of Mr. Lee Jae Eun - who devoted all his efforts to establish and develop Everpia.
Coming to Vietnam, then choosing to stay and establishing career in Vietnam for Mr. Lee Jae Eun, CEO, founder of Everpia JSC is started by chance. Everpia's beginning was the manufacturing branch in Hanoi of Viko Moolsan Co., Ltd. Which was established in 1993. In the first stage, this branch only produced and traded Padding product. Since 1995, Viko Moolsan produced and traded Bedding product. In 1999, EVERON, the first Korean bedding brand in Vietnam, was officially launched. From 1999 to 2004, EVERON gradually became a premium bedding brand in Vietnam, especially at Hanoi. However, in 2004, Viko Moolsan's parent company in Korea encountered financial difficulties and was forced to sell assets. At that time, Mr. Lee Jae Eun as Investment Director of a Korean Venture Capital Fund, Dream Venture, went to Vietnam and learned about Viko Moolsan's business in Vietnam
Mr. Lee said: “We are a team of many people who study Viko Moolsan's business situation in Vietnam. We work for many days, then one evening we go to a small restaurant in Hanoi for dinner. The hospitable owner asks us what company we work at. When we say that we are in Hanoi to research about Viko Moolsan Company. She does not know about Viko, but when we say EVERON, she immediately exclaims: "Oh, EVERON is very famous, everyone knows it". Then the owner praises "the product is very good" and she really wanted to buy it, but it is quite expensive so she could not afford to buy. The owner's compliment make me realize that the famous and popularity of EVERON brand in Vietnam is a valuable intangible asset, it is not easy for an ordinary person to know and appreciate EVERON products like that”.
After the business trip, Mr.Lee come back Korea and report to his Boss. Perhaps, Everpia JSC would not have been established if the story only stopped at a report. Everpia would not exist without the recklessness and enthusiasm of a man who is determined to develop his career in Vietnam. An accidental story in a small restaurant in Hanoi that night prompted Mr. Lee Jae Eun to decide to buy Viko Moolsan's business in Vietnam with the belief that he would develop and bring EVERON brand to many Vietnamese people. For a 40-year-old man with a wife and two children living peacefully in Korea, the decision to sell all assets in Korea to buy a company in Vietnam and move to Vietnam to set up business, is too reckless. Mr. Lee did so after having the support of his partners.
From a person working in financial field, with no knowledge of production, no understanding of Bedding industry as well as the Vietnamese market, Mr. Lee bet everything he had on EVERON. When the transferring share was completed in 2004, Everpia JSC was officially established with the initial charter capital of VND48 bil.
After the business trip, Mr.Lee come back Korea and report to his Boss. Perhaps, Everpia JSC would not have been established if the story only stopped at a report. Everpia would not exist without the recklessness and enthusiasm of a man who is determined to develop his career in Vietnam. An accidental story in a small restaurant in Hanoi that night prompted Mr. Lee Jae Eun to decide to buy Viko Moolsan's business in Vietnam with the belief that he would develop and bring EVERON brand to many Vietnamese people. For a 40-year-old man with a wife and two children living peacefully in Korea, the decision to sell all assets in Korea to buy a company in Vietnam and move to Vietnam to set up business, is too reckless. Mr. Lee did so after having the support of his partners.
From a person working in financial field, with no knowledge of production, no understanding of Bedding industry as well as the Vietnamese market, Mr. Lee bet everything he had on EVERON. When the transferring share was completed in 2004, Everpia JSC was officially established with the initial charter capital of VND48 bil.
Right after the Company was established, Mr.Lee and his colleagues started on business reconstruction, focused on production and branding. Leaving his family in Korea in the early days, passionate man Lee Jae Eun threw himself into the factory with engineers and workers for first products under the New company name. With his relationship in the financial field and the strong development of Vietnamese stock market in 2007, Mr. Lee decided to offer 10% shares of Everpia JSC to strategic shareholders - Mirae Asset Investment Fund. This decision helped Everpia increase its charter capital from VND48bil. to VND52,8bil. and contributed more than VND25bil. to capital surplus. Strong financial status created solid development, then overcame the global financial crisis in 2008. Mr. Lee says: “In the early days of the establishment, we worked almost without a day off. At weekends, I spent time doing market research, meeting with customers and looking for strategic partners”. Enthusiasm and hard work brought success to the Company in the first year. End of 2007, Everpia's revenue reached VND240 bil., profit after tax reached VND20bil. It can be said that it was an unexpected success but totally worth it.
In the following years, Everpia continuously developed strongly, getting a huge investment capital from strategic shareholders and investment funds. The Company's revenue grew from VND240bil. in 2007 to nearly VND800bil. in 2011. Profit after tax also increased strongly, from VND20bil. in 2007 to a peak of VND150 billion in 2011.
In the following years, Everpia continuously developed strongly, getting a huge investment capital from strategic shareholders and investment funds. The Company's revenue grew from VND240bil. in 2007 to nearly VND800bil. in 2011. Profit after tax also increased strongly, from VND20bil. in 2007 to a peak of VND150 billion in 2011.
Everpia's revenue and profit after tax (VND billion)
(Source EVE)
During this period, the Company increased its charter capital by issuing share for strategic partners in 2007, 2009 and 2010. By the end of 2010, Everpia's charter capital reached VND153bil, with VND191bil. of capital surplus. Besides, accumulated profit after tax accounted for VND225bil. With a solid financial foundation, bright business prospects and transparency of the founder, Everpia took another step forward when deciding to list on the Vietnam Stock Exchange (stock code EVE) – registered as one of the few pioneering FDI enterprises to go public.
After 4 years of being established from spirit and reckless decision of Mr.Lee, it is so proud of Everpia's achievements.
By 2012, Vietnam's economy faced many difficulties when GDP growth was only 5.02%, this is the lowest level in more than 10 years of Vietnam. In two years, 2011-2012, Vietnam implemented a tight monetary policy, interest rates increased very high in order to curb inflation. The businesses activities and the consumption were strongly influenced by this decision.
The popularity of the Everon brand in the difficult business environment at that time caused many competitors to rush to compete for market share with a low-cost strategy. The fertile land suddenly became more crowded than ever. With the low-price policy, the competitors have tried their best to capture every bit of market share, Everpia had to apply many policies to keep customers such as reducing prices, increasing discounts rate for agents, increasing advertising and selling expenses, etc. Brand name like Hanvico, Song Hong, Edena, Dunlopillo, etc made Everpia's revenue and profit almost flat during the period from 2012-2019.
Everpia's revenue and profit after tax in the period 2012 - 2019 (VND billion)
In 2020, the Covid-19 pandemic caused trillions of dollars in damage to the world economy. In Vietnam, four outbreaks time of Covid-19 have caused tens of thousands of businesses to stop working every month, especially those in the fields of hospitality and tourism. Companies specializing in providing bedding for high-class hotels and resorts face many difficulties, including EVE.
Not only B2B business faced difficulties, but B2C also suffered the same situation when many provinces were blocked with closing of almost agents, EVE first recorded a loss in 1Q2020, with a loss of more than VND11bil. With persistent efforts, by the end of 2020, EVE's revenue reached VND855bil., profit after tax accounted for VND42bil. This is the lowest profit since listing. In the most difficult context of the business environment, the Company still stood and overcame it excellently.
With nearly VND600bil. in bank deposits by the end of 2Q2021, EVE has overcome the pandemic. Moreover, the Company repurchased all convertible bonds before maturity. If EVE does not buy back these bonds, all of these bonds will be converted at only 12,700 VND/share, which will cause great losses to all existing shareholders. It can be said that the decision to buy back these bonds is a solution to protect the interests of shareholders.
Not only B2B business faced difficulties, but B2C also suffered the same situation when many provinces were blocked with closing of almost agents, EVE first recorded a loss in 1Q2020, with a loss of more than VND11bil. With persistent efforts, by the end of 2020, EVE's revenue reached VND855bil., profit after tax accounted for VND42bil. This is the lowest profit since listing. In the most difficult context of the business environment, the Company still stood and overcame it excellently.
With nearly VND600bil. in bank deposits by the end of 2Q2021, EVE has overcome the pandemic. Moreover, the Company repurchased all convertible bonds before maturity. If EVE does not buy back these bonds, all of these bonds will be converted at only 12,700 VND/share, which will cause great losses to all existing shareholders. It can be said that the decision to buy back these bonds is a solution to protect the interests of shareholders.
During the outbreak of pandemic in Vietnam, many companies in Textile and garment industry like EVE had to reduce costs, wages and lay off workers. However, with the philosophy of "sharing for success", Employee benefits are always a top priority in any policy, so minimizing costs through salary cutting is always the last solution. Mr. Lee Jae Eun, CEO of EVE decided to retain employees, keep wages for employees and overcome difficulties together. In Mr. Lee's point of view, the employees together with the Company created many miracles and overcame many difficulties. Now, in the general difficulties of pandemic, the Company is and will always stand side by side, with employees to overcome difficulties.
The Covid-19 pandemic is an unprecedented global disaster. However, there is always the chance in danger. Everpia’s Management saw opportunity during the pandemic. When EVE's competitors with weaker financial could not maintain. Many of them are falling into clinical death, even bankruptcy. That was EVE's opportunity.
The Covid-19 pandemic is an unprecedented global disaster. However, there is always the chance in danger. Everpia’s Management saw opportunity during the pandemic. When EVE's competitors with weaker financial could not maintain. Many of them are falling into clinical death, even bankruptcy. That was EVE's opportunity.
Recognizing the opportunity that will come after the pandemic, Everpia has invested in expanding production to capture market share from competitors. The company leased land in Giang Dien Industrial Park, Dong Nai province in order to increase capacity and expand business activities. With strong financial status, plans are carried out decisively. Mr. Lee Jae Eun, CEO, shared: “We recognize that the pandemic has caused Bedding business to face many difficulties, especially in selling products for hotels and resorts. A lot of companies have quit the game or disrupted operations, so we decided to invest in expanding production to increase market share. We believe that EVE's market share will skyrocket when the pandemic ends and consumption recovers. That is also the time when EVE regains its position.”
Everpia factory in Hung Yen
EVE's sales and profits reached VND568bil. and VND15.2bil. respectively for 9M2021. In order to increase the benefits for shareholders, at the beginning of October, the Board of Directors decided to pay stock dividend 2021 at rate of 8% by using treasury shares. The company is expected to continue to pay cash dividends as usual at the end of the financial year. Strong financial position, which has been accumulated for many years from undistributed earning and share premium is an outstanding value, helping the Company to "overcome the storm" successfully.
After nearly 17 years of doing business in Vietnam, Mr. Lee shares: “There were moments when I had to cry when the company had difficulties, when I had to separate my family. I still remember when my son decided to go back to the US and not stay in Vietnam and work for Everpia, at that moment, even though it was very painful, I still encouraged him to choose path he wanted to go. And I once again chose to stay with Everpia because I couldn't leave the Company during that difficult time. For me, besides my family, EVE is ALL I have, so I will protect the Company at all costs, protect the interests of each shareholder, even the smallest shareholder.
Indeed, EVE always focuses on IR activities, ready to listen, discuss and consult shareholders' opinions. IR team is always ready to answer all questions from shareholders. The Board of Directors of EVE always has 2-3 members who are independent Vietnamese members. This is a huge difference of a company with Korean investment capital. Mr. Lee says: “I am commit that EVE will always be one of the most transparent companies on the Vietnamese stock market, that's why there are 2-3 members on EVE's board of directors who are independent and Vietnamese, you will hardly find a company with as many independent management members as EVE”.
From an objective perspective, Mr. Vicente Nguyen, CIO of AFC Vietnam Fund says: “Before we become a major shareholder of EVE, I met Mr. Lee and also EVE's longtime partners to learn about him and Everpia. For us, when investing in the Company is an investment in people, only companies managed by honest, enthusiastic and talented managers are able to overcome hardships and achieve sustainable success. Therefore, we have continuously increased our ownership rate at EVE, because we believe that the future ahead of EVE is extremely open. I also believe that EVE is one of the most transparent companies in the market, which is also Mr. Lee Jae Eun's commitment to me from the first day we met."
It can be said that EVE always puts transparency as a top priority and is committed to protecting the interests of shareholders. One of the recent drastic actions is to repurchase the entire amount of convertible bonds before maturity to avoid dilution and reduce shareholders' benefits. Over the years, EVE has always been voted as one of the companies with the best IR activities on the stock exchange. The company was honored at the Vietnam listed company award 2019 and 2020 with the categories of Corporate Governance and the Best Annual Report. These are awards that recognize and honor efforts to transparently and professionally disclose information to the public.
With the commitment from heart in building and spreading Everon brand and products to Vietnamese people; with the transparency and the mart and careful financial management of Founder, Everpia deserves for customers, shareholders and partners to continue to believe in a future of expansion and strong development after the pandemic.
Indeed, EVE always focuses on IR activities, ready to listen, discuss and consult shareholders' opinions. IR team is always ready to answer all questions from shareholders. The Board of Directors of EVE always has 2-3 members who are independent Vietnamese members. This is a huge difference of a company with Korean investment capital. Mr. Lee says: “I am commit that EVE will always be one of the most transparent companies on the Vietnamese stock market, that's why there are 2-3 members on EVE's board of directors who are independent and Vietnamese, you will hardly find a company with as many independent management members as EVE”.
From an objective perspective, Mr. Vicente Nguyen, CIO of AFC Vietnam Fund says: “Before we become a major shareholder of EVE, I met Mr. Lee and also EVE's longtime partners to learn about him and Everpia. For us, when investing in the Company is an investment in people, only companies managed by honest, enthusiastic and talented managers are able to overcome hardships and achieve sustainable success. Therefore, we have continuously increased our ownership rate at EVE, because we believe that the future ahead of EVE is extremely open. I also believe that EVE is one of the most transparent companies in the market, which is also Mr. Lee Jae Eun's commitment to me from the first day we met."
It can be said that EVE always puts transparency as a top priority and is committed to protecting the interests of shareholders. One of the recent drastic actions is to repurchase the entire amount of convertible bonds before maturity to avoid dilution and reduce shareholders' benefits. Over the years, EVE has always been voted as one of the companies with the best IR activities on the stock exchange. The company was honored at the Vietnam listed company award 2019 and 2020 with the categories of Corporate Governance and the Best Annual Report. These are awards that recognize and honor efforts to transparently and professionally disclose information to the public.
With the commitment from heart in building and spreading Everon brand and products to Vietnamese people; with the transparency and the mart and careful financial management of Founder, Everpia deserves for customers, shareholders and partners to continue to believe in a future of expansion and strong development after the pandemic.
Source: https://fatz.vn/everon-thanh-cong-den-tu-tam-huyet-va-su-minh-bach/