Resoluton of BOD's Meeting on the change in business strategy

Dear valued shareholders,

The Cleaner business is currently facing many challenges due to fierce competition in the market. Over the past three years, sales in the cleaner sector have been declining continuously as customers tend to look for competitors with lower prices. This decline has not only affected revenue but also prolonged operating losses, making the cleaner business one of Everpia 's main weaknesses.

In addition, despite the Board of Management’s continuous efforts to improve production processes, negotiate with suppliers and control costs, the ratio of cost of goods sold to revenue has consistently remained around 90%. This has resulted in low or negative profits in recent quarters. Therefore, continuing to operate in the cleaner business may negatively affect the overall development of the company.

Therefore, on 30/09/2024, the Board of Directors discussed and approved Resolution No. 007/2024/HĐQT/NQ on the downsizing of production and business activities of the Cleaner business and establishing the recovery and development plan for 2024-2025. The main objective of this decision is to preserve resources and focus on the businesses with higher profitability and better growth potential.

The details of the resolution can be viewed here (download)

Yours sincerely,

Everpia JSC