Hong Kong-listed VMEPH Floats TDRs on TWSE

Taipei, Dec. 4, 2009 (CENS)--The Hong Kong Stock Exchange-listed Vietnam Manufacturing and Export Processing (Holdings) Limited (VMEPH) (code: 0422HK) yesterday began public trading in the form of Taiwan depository receipts (code: 9110) on the Taiwan Stock Exchange (TWSE) at the price of NT$13.5 per unit and up-limit closed at NT$14.4.

The VMEPH TDRs are issued by SY International Ltd., a wholly owned subsidiary of the Taiwan-based San Yang Industry Co. The SYI issued 54,500 units of TDRs with each representing two common shares of the VMEPH traded on the Hong Kong Stock Exchange.

VMEPH is one of the leading manufacturers of scooter and cub motorbikes in Vietnam, which ranks third among the principal foreign-owned motorbike manufacturers in terms of sales volume. Other than the major business, the group also produces motorbike engines and parts for internal use and for sale and sells molds for making die-cast and forged metal parts. The company's manufacturing and assembly operations are conducted principally at two factories located near the two largest cities in Vietnam, namely Ho Chi Minh City and Hanoi.

The company manufactures various types of scooters and cubs to cope with different customer demands so as to raise its market share. In addition, the company has implemented a unique dual-branding strategy under the "SYM" and "SANDA" brand names. SYM scooters are high-end products that use many custom-designed components and are marketed as stylish and technologically modern.

Unlike other foreign-owned enterprises, VMEPH has established its base of operations, including its research and design department, in Vietnam. The company's local presence and focus have improved its ability to devise and deploy marketing campaigns. By way of slashing labor and transportation costs, the company's local base of operations has also leveraged its profitability.

Over the past few years, Vietnam's vehicle market has been thriving on strong domestic demand. Despite the impact of the global financial tsunami, Vietnams' four-largest vehicle manufacturers sold as many as 1.8 million-strong vehicles combined last year. Thanks to the gradual recovery of the Vietnam's vehicle market, VMEPH scored US$12.7 million in after-tax earnings in the first three quarters of this year. The company believed it would be able to score substantial growth in sales this year from last year's 178,000 motorbikes in Vietnam.