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WKN: A40BNH | ISIN: US0978242057 | Ticker-Symbol:
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(2)

Marvion Inc. (MVNC) Moving into New Businesses with Profitable Opportunities

Finanznachrichten News

HONG KONG, Aug. 19, 2024 /PRNewswire/ --

Dear Shareholders:

As the new CEO, I am honored to lead the Marvion group into a new and brighter future. Building upon our already profitable business operations in logistics and warehousing services, I am committed to fostering innovation, driving sustainable growth, and nurturing a culture of excellence. Together, we will embrace change, seize opportunities, and exceed expectations as we embark on this journey toward continued success and prosperity.

As updated financial information will be disclosed, I would take this opportunity to update our shareholders about our logistic and storage services businesses.

Logistics Business - KSK Logistics

Our logistic services is focusing with servicing the local last miles distributions in Hong Kong. As we walked into the post-pandemic period since the beginning of 2023, consumer spending in Hong Kong has grown from US$61,794 million in Q1 2023 to US$64,615 million in Q2 2024, and forecasting to be US$68,333 million by Q4 2024 (1). The continuous growth of consumer spending pushes up the demand of more logistics services, especially consumer today are more depending on online ecommerce purchases, and cross-border purchases from China for the Hong Kong consumers. We currently own 6 trucks with our crew to cover the local delivery zones. Our logistics clients are not only the general consumers, but we also serve the bigger shipping and logistics partners, as well as vendors, with specialty to serve the furniture industry to distribute the packages to the doorsteps of their clients. The growth in economy and consumer spending continues to help our growth in servicing orders while recent slight drop in gasoline price also lowers our costs to help increasing the profitability opportunities of the business.

Storage Services - United Warehouse

United Warehouse has rented a piece of land at the size of 140,000 square feet (sq ft) in Yuen Long, Hong Kong. We have built a fully equipped cold storage with the size of 24,000 sq ft, and a regular warehouse with the size of 38,600 sq ft. We plan on building another warehouse on the land with the size of 18,000 sq ft by September, 2024. Our warehouses not only provide temporary storage spaces for enterprise clients, but also logistics and inventory services so they can rely on our services to manage their cargos and goods in a cost effective way. By combining with our logistics sister business, we can maximize the utilization of our logistics crew and trucks, and increasing business opportunities for the storage services.

Moving Forward

While both our logistics and warehousing services business units are in healthy and profitable business and financial positions, we are seeking to further expand the size of our warehouse sizes within the land that we have already rented, which is just 50% utilized at the moment. Our logistics services team will continue to focus with local delivery coverage in the Hong Kong local market, seeking for more B2B opportunities and moving into niche industry needs to avoid hostile competitions. Furthermore, with my extensive exposure and experiences in the furniture industry, we are looking into developing a cross-border online furniture and household items ecommerce platform. Online furniture and household ecommerce is already very strong in China which basically takeover most of the traditional offline stores. The problem with Hong Kong is those China -based furniture manufacturers cannot provide a one-stop shipping and servicing service to the customers in Hong Kong. With 2 million households in this metropolitan city, we see this as great business opportunity to explore, by utilizing the logistics and warehousing facilities which we already have.

We have confidence that our team will build good values for the investors of MVNC in the near future and for the long term. Your continue support will give us more resources to explore into more business opportunities and may expand our business operational models overseas.

Sincerely,
Chan Sze Yu
Director and Chief Executive Officer
Marvion Inc. (OTC: MVNC)

(1) https://tradingeconomics.com/hong-kong/consumer-spending

For media queries, please contact:
[email protected]

SOURCE Marvion Inc.

© 2024 PR Newswire
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