GEORGE TOWN: Eng Kah Corp Bhd, which specialises in cosmetics and beauty products, expects two major deals in Australia and the United Kingdom which it expects to ink by year-end to contribute 20% to its group revenue in its new financial year ending Dec 31, 2015 (FY15).
Chairman and managing director Ewe Eng Kah told reporters yesterday after the group’s extraordinary general meeting that Eng Kah is in the final stages of discussion with a major chain store in Australia and a leading pharmaceutical brand in the UK. “These companies have conducted audits on our group to assess our product quality. We cannot mention their names because we have not finalised the documents yet.
“However, we are confident of these overseas ventures. It would be signed by the end of the year. We believe these deals will contribute about 20% to our group revenue,” he said.
Ewe said the group is also finalising the acquisition of a 30% stake in a company in China. Once completed, it will enable Eng Kah to manufacture products there. On Jan 27, 2012, Eng Kah entered into an agreement with Cosway (China) Co Ltd to establish a joint-venture company in China to manufacture cosmetics, toiletries, and household products.
Cosway China had acquired the entire interest and control of Guangzhou Cosway Cosmetic Manufacture Co Ltd, the joint venture company (JVC) to manufacture cosmetics, toiletries, and household products. Eng Kah said then it would acquire a 30% stake in the JVC and provide the manufacturing experience, expertise and related know-how to the JVC for it to commence manufacturing activities to support Cosway China’s business.
Ewe said despite the softening global economy, he was positive that the group sales would not be badly affected due to the nature of its products.
This article first appeared in The Edge Financial Daily, on January 8, 2015.