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精彩足球推荐分析(www.99cx.vip):Wellspire to focus on expanding distribution network

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Wellspire Holdings Bhd chief executive officer Mo Guopiao

PETALING JAYA: Wellspire Holdings Bhd, a snack food distributor in Thailand that is looking to list on the ACE Market of Bursa Malaysia in early 2023, will focus on expanding its distribution network.

In its prospectus, Wellspire said part of the proceeds from its initial public offering (IPO) will be used to acquire or build a warehouse and operational facility in Thailand, where it is currently renting a space.

Chief executive officer Mo Guopiao said although rental expenses for the warehouse is not a material element of its operating costs, the acquisition or construction of a warehouse and operational facility, if materialised, is expected to result in a cost saving of RM1.6mil.

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“Currently, at least 95% of our cost of sales are rooting from material costs. Thus, the saving from annual rental cost will help to reduce group cost but does not significantly affect the margin of the group,” he told StarBiz.

Wellspire is a distributor of consumer packaged snack foods such as seeds and nuts as well as baked and confectionery products.

The new warehouse and operational facility, once materialised, will increase Wellspire’s current capacity for general warehousing space as well as its chiller room capacity, in line with its focus to widen the reach of its distribution network.

“The location of the warehouse and operational facility will be in the central region of Thailand, within the Pathum Thani province,” he said.


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