Press Release
  • LVMC Holdings, 3Q profit turnaround. Profit and loss structure has improved greatly.
    - The Korea Economic Daily

    LVMC Holdings received a good report in the third quarter of this year. Although it was affected by COVID 19, it was because the profit structure was greatly improved.
    According to electronic disclosure by Financial Supervisory Service(FSS), LVMC Holdings' cumulative consolidated sales for the third quarter were 2157 billion won, down 13.6% from the same period last year. On the other hand, operating profit has a surplus at 1.15 billion won. In the same period last year, it was a deficit of 3.2 billion won.
    Sales increased 74% from the previous quarter, showing a gradual recovery from the effects of COVID 19. Gross profit increased by 7.2 billion won, and the gross margin increased from 8.7% to 13.5%.
    The company explained that the profit-oriented management strategy that has been pursued so far is showing results. According to LVMC Holdings, as a strategy for post-COVID 19, financial integrity was improved through a paid-in capital increase that was completed in October.
    In addition, it is expanding its market share by country by investing in production facilities, stabilizing the supply chain. Also, it is securing a mid to long term growth engine by promoting new business.
    An official of the company said, "Recently, the Regional Comprehensive Economic Partnership Agreement (RCEP), in which 10 ASEAN countries, Korea, China, Japan, Australia, and New Zealand participated, has increased expectations for growth." "LVMC Holdings has been operating in the region for 30 years and has a solid network," he said.
    Lee Song-ryul, reporter of
  • LVMC Holdings, Sealed an MOU with Manna Corporation for “Southeast Asia O2O Joint Project”
    - Asia Business Daily

    LVMC Holdings announced on the 6th that it has signed a memorandum of understanding (MOU) with Manna Corporation to promote the online-offline service (O2O) business together in Southeast Asia.
    The agreement ceremony was mainly to discuss launching location-based platform development projects in 9 Southeast Asian countries and to develop delivery service. Officials including Yang-Hyun Cho, CEO of Manna Corporation, and Sung-Seok Roh, CEO of LVMC Holdings have attended this ceremony. To comply with the quarantine guidelines due to the COVID 19 social distancing, only a minimum number of personnel attended and was held briefly.
    Manna Planet, a subsidiary of Manna Corporation, participated in the “Zero Delivery Union” in Seoul as 'Buroosim zero'. In August, the number of proxy delivery per month was reported to exceed 10 million, and the trend continues to rise. Manna Planet shares affiliate stores between brands through “Manna Plus,” an allied brand of 6 proxy delivery service agencies. It is implementing a strategy to differentiate O2O services by introducing the “Manna POS” program that processes orders from delivery in one-stop.
    The success of the strategy is because it has introduced the concept of an integrated program and big data sharing outside the existing industry business model that is specialized for only one side center. The new business model offers both delivery agencies, franchisees and customers integrated to be satisfied with their integrated system.
    LVMC Holdings is a Korean business company founded in Laos in 1997. It has various affiliates, including automobile and motorcycle production and manufacturing, and banks, and ranks first among private companies in Laos in terms of scale. LVMC Holdings has steadily expanded its business area to the Indochina Peninsula, and in 2018 changed its name to LVMC, which means Laos, Vietnam, Myanmar, and Cambodia, with a population of 630 million (the third-largest in the world) and a GDP of $2.7 trillion. (7th in the world) It is taking off as a company representing the scale of the ASEAN market.
    LVMC Holdings has completed the subscription for a paid-in capital increase, which was carried out 11 years after listing, ad announced plans to secure future growth engine by promoting new businesses. In particular, as an extension for this, an MOU for the O2O project in Southeast Asia was promoted. Manna Corporation plans to lay the foundation for a stable entry into new business through joint business with LVMC Holdings, which has established a foundation in the Southeast Asian market for a long time, based on the know-how of O2O service success in Korea.
    An official of LVMC Holdings said, “This MOU contains a concrete action plan, not the level of declarative agreement at the present stage, and will exert a synergy effect with the logistics business that was being promoted.” “We have signed a specific investment contract between the two companies to start a joint business in Laos where LVMC has high brand awareness and has a nationwide distribution network and high market dominance.”
    The official said, "We plan to expand business with Manna Corporation for each ASEAN country." “The Southeast Asian market is in the early stages of launching orders and delivery business for both multinational enterprises and local enterprises.” He added, "The accumulated business and technology know-how of Manna Corporation's management and technical staff, who have been in the location-based platform business for 20 years, will be the cornerstone of the joint success path of the two companies."
    [Reporter Yoo Hyun-seok]
  • LVMC Holdings, Subscription rate of increased paid-in capital by Old shareholder 104.7%
    - Maeil Business Newspaper

    LVMC Holdings announced on the 28th that the subscription rate for a paid-in capital increase to old shareholders, which was conducted on the 24th to 25th, recorded 104.7%.
    After the allocation of shareholders this time, LVMC Holdings raised a total of 32,32,280,150 shares (issued price of 2,480 won) through a paid-in capital increase through a public offering. And as the subscription rate exceeds 100% in the old shareholder allocation subscription, the general public offering will not be conducted.
    The success of the capital increase is reflected in the many success stories that LVMC Holdings has gained from operating business in the ASEAN region for over 30 years and the shareholders’ belief in the growth potential of existing and new business based on the network that’s built.
    A company official said, "This is expected to raise 82.4 billion won through the paid-in capital increase, which was the first in 11 years since LVMC Holdings was listed on the KOSPI market in 2010.” “With the secured funds, we will increase the market share of the rapidly growing Myanmar automobile market and secure a steady future growth engine by promoting new businesses.” He said.
    He emphasized, “In contrast to the situation in which competitors and other industries are struggling after COVID 19 crisis, it is of great significance to LVMC Holdings was given the opportunity to sustain growth through securing quality funds.”
    [Reporter Kim Kyung-taek]
  • LVMC Holdings, surplus with operating profit of 800 million won in the first half...
    - Asia Business Daily

    LVMC Holdings announced on the 1st that despite the impact of Corona 19, sales and profits grew together in the first half of this year.
    LVMC Holdings posted consolidated sales of 149.3 billion won (US$ 1273 million) and an operating profit of 800 million won (US$ 640,000) in the first half of this year through disclosure on the 31st of last month. Compared to the same period of the previous year, sales increased 2.7% and turned into profit-making.
    The main reason that operating profit in the first half of the year turned around compared to the same period last year was the actualization of the largest sales in the first quarter despite COVID 19. As a result, the gross margin of sales from 9.5% in the first half of the previous year rose to 13.1% in the first half of this year. Cash flow from sales activities also increased 61% from 11.8 billion won in the previous year to 19.5 billion won this year, confirming that operating activities are improving despite the corona situation.
    A company official said, "We faced a difficult business environment in the aftermath of COVID 19, but the performance of overseas subsidiaries such as Myanmar and Cambodia, along with Laos, continued to lead to earnings growth in the first half." "LVMC Holdings' overseas subsidiaries recorded 42.6% of total sales in the first half of 71.4 billion won. It is worth notice that there is a decrease in the proportion of sales that were centered to Laos, and growth in neighboring countries with a larger market."
    Laos to be the first country to declare an end to the coronavirus among Southeast Asian countries on June 11, and economic activity is back to normal. In Myanmar, the car registry, which had been temporarily closed since May, is now back on operating and the market is recovering rapidly. It is showing that July-August sales have already recovered beyond the total sales in the second quarter, when some business activities were disrupted due to COVID19, hence we can expect to escape COVID aftereffect from the third quarter.
    Despite the temporary market contraction due to the COVID19, the performance of LVMC Holdings is based on the circumstances of each country, such as expanding online sales channels, activating contact-free delivery, and expanding "after service" visited by mechanics after online diagnosis. Through this, the company explained that it was successful to use a strategy differentiated from other competitors.
    In the second half of this year, they are planned to increase market share in each country by investing in production facilities for market expansion, stable management of supply chains and sales incentive programs as well as improved capital integrity through a paid-in capital increase for the first time since listing.
    An official of LVMC Holdings said, “The first half of this year is of great significance in that despite the impact of COVID 19, sales and profits grew at the same time and showed a full-fledged performance improvement.” "Although we will face many crises and difficulties in the second half of the year, it will be a good opportunity for LVMC Holdings, which is the only automobile company competing in the Indochina peninsula that has built a production plant for each country and has an on/offline sales distribution network and delivery system." he emphasized.
    Reporter Yoo Hyun-seok
  • LVMC Holdings, Ready to take off by launching new cars in the second half.
    - The Korea Economic Daily

    Presenting 5 kinds in Laos and Myanmar showing in the photo below.

    From the top left, Hyundai Venue, Reina, H-1, Crete, Accent PE.

    LVMC Holdings announced on the 23rd that it is planning to launch new cars in Laos and Myanmar in the second half of this year. It is a strategy to build up an impregnable lead in the car market that's been reorganized after the COVID19.
    Laos will launch Hyundai Motor Company's 'Venue' next month. It is a plan to accelerate its entry into the mini sports utility vehicle (SUV) market. SUVs such as Tucson and Santa Fe, which are relatively expensive, are less accessible to Lao consumers. Through the launch of this mini SUV, it is expected that the small SUV will take the lead in the competition with Japanese cars.
    In September, Hyundai Motor Company (262,500 +1.35%)'s the Reina, a small sedan are expected to launch. Reina was developed by Beijing Hyundai Motors aiming at the purchasers of the mid-and late 20s in China. It is also expected to contribute to the expansion of the market share of the sedan market by receiving favorable responses from young customers in Laos. Reyna is expected to secure price competitiveness and high profitability by securing parts from Hyundai Motor's China plant and reducing production costs.
    In the Myanmar market, a total of four products are expected to be released in the second half of this year: H1 (New Starex), Creta 2nd generation (full change), Accent PE, and REINA.
    The H-1, which was previously imported and sold as a complete build-up(CBU), will be assembled and produced directly from the second half of the year by the SKD method. Through this, it will secure price competitiveness and target the market by providing localized options that meet the needs of Myanmar customers. Myanmar, with a population of 60 million, accounts for 70% of all automobile sales in Yangon, an economic city. When importing finished cars, the number of purchasers was limited as they could not be registered in Yangon, but the SKD method is expected to increase sales as Yangon license plates can be attached.
    Also, In Myanmar sales volume of Acent and Creta has been increased, it took a 2nd place setting Toyota aside. In the meantime, Accent and Crete sales have increased in Myanmar, leading Hyundai Motor Company to surpass Toyota to the second place in the market share. When New Accent and Creta are released, Hyundai Motor's market share will be increased.
    A company official said, "We expect to increase sales volume by simultaneously providing long-term installment financing services for young office workers in line with the launch of new cars in Laos." "In Myanmar, when Accents and Creta are released in upgrade options and designs, the market response will be great" he said.
    Han Min-soo, reporter
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