V2Y Corporation has recently announced a strategic move into the Southeast Asian market through an exclusive distribution agreement with Shouguang Leyi Vegetable Technology Development Co., Ltd. This partnership enables V2Y to distribute Chinese cabbage among other products across the region. The distribution efforts will be managed by Evertrust Distribution (EDPL), a new subsidiary established by V2Y for this purpose. EDPL, which focuses on the wholesale of fruits and vegetables, was incorporated on November 22, as per V2Y's announcement.
The collaboration between V2Y and Shouguang Leyi is structured through a joint venture agreement (JVA), involving V2Y's wholly-owned subsidiary, V2Y Pte Ltd (V2YPL), and Green Grapes Pte Ltd (GGPL). V2YPL holds a 51% stake, while GGPL owns 49% in the joint venture. GGPL's selection as a JV partner was influenced by its established business connections within the industry, including ties with Shouguang Leyi.
The distribution agreement stipulates a three-year term starting from December 1, with automatic renewal under the same terms. EDPL is committed to purchasing a target of $10 million worth of products from Shouguang Leyi between December 1, 2024, and December 31, 2025. The agreement does not penalize EDPL for failing to meet these sales targets.
V2Y Corp has outlined its strategy to sell these products by partnering with potential resellers and has secured the necessary certifications and licenses for sale and export from China. Efforts are also underway to obtain the required certifications for distribution in Singapore.
This venture marks a significant shift for V2Y Corp, previously known as Synagie Corporation, following its shareholders' approval to diversify its business operations. The company has also ventured into the food and beverage (F&B) sector, acquiring a hot-pot chain and entering into a sale and purchase agreement to acquire Urban Exchange. Despite reporting a loss in the third quarter of FY2024, V2Y Corp's shares experienced an uptick on November 29.
Source: The Edge