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Hai-O targets China ops in 1-2 years
Feb 25, 2010
Source: The Edge
 

KUALA LUMPUR: Multi-level marketing company HAI-O ENTERPRISE BHD [] plans to venture into the China market in one or two years, said group managing director Tan Kai Hee.

He said the group was looking forward to tap into the China market either on its own or through a partnership with local parties.

"We can go there (China) through whichever way that would be the fastest," he told reporters after the group's extraordinary general meeting (EGM) here yesterday.

"As you know companies like Amway had tapped into China now and we will follow suit."

Meanwhile, Tan said the group's first overseas project, PT Hai-O Indonesia, armed with a start-up capital of US$500,000 (RM1.7 million), would commence operation in April and was expected to break even in two years.

"Indonesia is a new market for us and we need to do a lot of promotion there. However, we have started recruiting members there and we believe their number will increase after the launch," he said.

He added products that had been well received in Indonesia were its water filtration systems and beauty corsets.

Hai-O Indonesia has one stockist in Jakarta and is scouting for suitable locations to set up additional stockists.

On the company's outlook for this year, Tan said he was confident of a better performance relative to last year as the economy was on the mend.

"We can see the business is picking up due to the recovery in consumer sentiment and we have been getting good response for our products," he added.

Hai-O shareholders approved yesterday the company's proposed one-for-five bonus issue of up to 16.89 million shares of RM1 each to be credited as fully paid up.

The shareholders also approved its proposal to split each ordinary share of RM1 into two ordinary shares of 50 sen each.

The group has opened five new outlets in Malaysia since the beginning of 2010 and is aiming to have another three to five more outlets next year.