WICE establishes a joint-venture, EUROASIA TOTAL LOGISTICS, with its holding 40% of shares to provide cross-border transport services between China, Hong Kong

Stocks and Financial Services Press Releases Thursday September 20, 2018 15:26
Bangkok--20 Sep--Work Link da Agency

WICE establishes a joint-venture, "EUROASIA TOTAL LOGISTICS", with its holding 40% of shares to provide cross-border transport services between China, Hong Kong, and South East Asia with the expectation to achieve the first year's revenue at 200 million baht, leading to the enlisting on the SET. The Company has the confidence of the business growth to accomplish 30% performance as targeted due to the service volume growth of every channel and the WICE brand is widely acknowledged. After the restructuring, WICE will be the leader of the logistics in Asia market.

Mr. Chudet Kongsoonthorn, Managing Director, Business Development of WICE Logistics Pcl., (WICE), the fully integrated international logistics service provider disclosed that the resolution of the Board's meeting had approved the Company's joint venture agreement to establish EUROASIA TOTAL LOGISTICS CO., LTD. or ETL which had recently been registered as a company on September 14.

The company has the registered capital of 70 million baht, consisting of 7,000,000 million common shares at the par of 10 baht per share. The investment ration consists of WICE's investment of 28 million baht, accounting for 40% of shareholding, Mr.Lee Yik Chieh (Malaysian)'s investment of 21 million baht, accounting for 30% of shareholding, and Miss Krishavan Chuecharoenchai's investment of 21 million baht, accounting for 30% of shareholding. WICE's source of fund for the joint-venture comes from the working capital from the operation which has no affect on the Company's financial liquidity.

The joint-venture to establish ETL is to increase the important opportunity of WICE at international level with the cross-border transport services between China, Hong Kong, and South East Asia through the cross border model along China's One-belt, One-road which is an important international trading drive of China in the future. The establishment will also support the expansion of the international e-commerce services.

"The establishment of the joint-venture is the business expansion opportunity of WICE which could help increase sales volume and business benefits in order to receive good returns in the future. In addition, this also helps open a growth opportunity in oversea and Asian countries' markets. Our business proficiency and competitiveness as well as our network covering Singapore, Malaysia, Thailand, Laos, Vietnam, and China, are our important business advantages. China is a large transport market where logistics demand is high, leading to the opportunity to expand our customer base and to build value-added by providing several services to a variety of customers", said Mr. Chudet

The Company has prepared for the marketing activity to introduce cross-border transport services of ETL to the existing customers and other industries. ETL will start to generate the revenue to WICE from October 2018 onward and the first full-year revenue will be realized in 2019 with the first year's target revenue from ETL to reach 200 million baht, and will reach 1 billion baht in the next 3-5 years (2021-2023) due to the expectation of additional cross-border transport networks to other countries. The Company hopes to enlist ETL on the Stock Exchange of Thailand in the future.

The overview of the business towards the end of this year, it is expected that the growth will continue to growth towards the end of the year and as targeted. The Company aims to achieve the revenue of approximately 1,800 million baht or more than 30% growth. The support factors are from the expansion of all-type services volumes which consist of Sea Freight service, Air Freight service, Custom service, local logistics service, and warehouse management service. The support growth factors are from the increase of the work volumes of Air Freight service and Sea Freight service from WICE LOGISTICS (Singapore) and WICE LOGISTICS (Hong Kong). In addition, the Company also receives the benefit from the EEC project which helps increase the warehouse management's work volume, causing the Company to expand its warehouse's area by 9,600 sq. m. to serve the demand of the existing and new customers.

After the Company's corporate restructuring, the Company had changed all invested companies' names to WICE as to enhance the WICE brand as a preparation to be the leader of logistics in Asia's markets, especially, China's market, as the largest market. This has made WICE to be widely recognized and facilitate the mutual operation between its affiliated companies and networks to be more effective.

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