LVMC Holdings, Audit Report 'Unqualified'... "Full-scale Expansion of Sales to Countries Beyond Laos"

[Asia Economy Reporter Hyunseok Yoo] LVMC Holdings announced on the 24th that it received an 'unqualified' opinion on its audit report from an accounting firm.

In 2019, on a consolidated basis, sales reached 363.7 billion KRW (312 million USD), and operating profit was 3 billion KRW (2.54 million USD), marking a 24% increase in sales compared to 2018 and a turnaround from operating loss to profit.

The most notable aspect was the expansion of sales in countries other than Laos, showing balanced growth across each country. The gross profit margin improved from 1.6% in 2018 to 7.1% in 2019. Additionally, cash flow from operating activities increased significantly to 26.6 billion KRW compared to 690 million KRW in 2018, improving financial indicators.

Until now, LVMC Holdings, after changing its name from Korao to LVMC, has made efforts to establish price and product competitiveness tailored to each country by completing production and assembly plants in Laos, Vietnam, Myanmar, and Cambodia. In February last year, the company completed investment in four countries with the completion of the SKD assembly plant in Yangon, Myanmar, and began full-scale sales.

Furthermore, with the expansion of sales in countries other than Laos, the proportion of Laos in total sales decreased from 90.1% in 2018 to 69% in 2019. The company explained that this not only laid the foundation for balanced growth across multiple countries instead of concentrated sales in one country but also reduced business risks that relied solely on one country.

A company official stated, “LVMC Holdings is no longer just the Laos market with a population of 7 million but has expanded its business area to the entire Indochina Peninsula with 250 million people, including Myanmar with 65 million, Vietnam with 100 million, and Cambodia with 16 million. It is meaningful to announce our first performance after this expansion,” adding, “Starting with Vietnam in 1990, LVMC Holdings has expanded its business alongside the growth of ASEAN countries. After establishing itself as the number one national company in Laos, the company has expanded its successful experience to neighboring countries, resulting in visible achievements since last year. Please look forward to our 2020 performance.”

This content was produced with the assistance of AI translation services.