HWH International Inc. Provides Updates on Travel Joint Venture

Rhea-AI Summary

HWH International (Nasdaq: HWH) provided an update on its Hapi Travel joint venture, where it holds a 19% stake. The venture, established in April 2024 with industry entrepreneur Chen Ziping and HWH's Executive Chairman Heng Fai Chan, has formed HapiTravel Holding Pte. in Singapore as a WOFE for China operations.

The venture focuses on three key areas: educational tours for Chinese schools, conference tour packages, and a B2B hotel booking system. In the first three quarters of 2024, the venture generated over $18 million in revenue. The company has established operations in Hong Kong through Hapi Travel Hong Kong and plans to expand into Singapore and Malaysia to capitalize on growing China-ASEAN travel demand.

Positive

• Generated over $18 million in revenue in first three quarters of 2024
• Successful establishment of Hong Kong operations
• Planned expansion into Singapore and Malaysia markets

Negative

• 19% ownership stake in the joint venture

Insights

Financial Analyst

The joint venture's performance with $18 million in revenue for the first three quarters of 2024 shows promising traction in the travel sector. However, HWH's 19% ownership stake means direct financial benefit to shareholders. The strategic expansion into Hong Kong, Singapore and Malaysia positions the venture to capitalize on growing China-ASEAN travel flows, but the impact on HWH's financials will be relatively modest given the minority stake. The three-pronged business model targeting education tours, conference packages and B2B hotel bookings provides diversified revenue streams, though margins and profitability details are notably absent. This venture represents a small part of HWH's overall business portfolio and while showing operational progress, its financial impact on the parent company remains

Market Research Analyst

The China-ASEAN travel corridor represents a significant market opportunity, with post-pandemic travel recovery driving substantial growth. The joint venture's focus on educational tours aligns well with China's emphasis on international education exposure and cultural exchange. The B2B hotel booking system enters a competitive but expanding market as business travel rebounds. The strategic establishment of a Singapore-based WOFE provides operational advantages for regional expansion. However, the venture faces potential headwinds from regional economic uncertainties and competitive pressures in the travel tech space. While the revenue generation shows early success, the venture's market positioning and competitive differentiation strategy remain unclear, making it challenging to assess long-term market viability.

BETHESDA, MD, Dec. 18, 2024 (GLOBE NEWSWIRE) -- HWH International Inc. (“HWH” or the “Company”) (Nasdaq: HWH) is pleased to provide an update on the progress of a joint venture in its Hapi Travel business, in which HWH holds a 19% interest. HWH established this joint venture in April of 2024 with Mr. Chen Ziping, an experienced entrepreneur in the travel industry and Mr. Heng Fai Chan, HWH’s Executive Chairman.

Hapi Travel Group and its partners have established HapiTravel Holding Pte. Ltd., a Wholly Owned Foreign Enterprise (WOFE) in Singapore to serve as a holding company for its China operations. This joint venture is focused on three key sectors:

• Education Tours: Organizing inbound and outbound educational tours for primary and secondary schools in China.
• Conference Tour Packages: Offering tailored travel solutions for institutions and group events.
• B2B Hotel Booking System: Providing an efficient platform for hotel bookings, catering to businesses.

During the first three quarters of 2024, this joint venture and its predecessors have collectively generated revenue exceeding US$18 million. Additionally, this joint venture has successfully established its educational tour business in Hong Kong through its subsidiary, Hapi Travel Hong Kong Ltd., and plans are underway to set up subsidiaries in Singapore and Malaysia. These initiatives aim to capitalize on the growing travel demand between China and the ASEAN region, as well as vice versa.

“We are thrilled to witness exponential growth in travel between China and the rest of the world while expanding our footprint in the ASEAN region,” said Mr. Heng Fai Chan, Executive Chairman of HWH. “At HWH, promoting health, wealth, and happiness remains at the heart of our mission.”

About HWH International Inc.

HWH International Inc. is a purpose-driven lifestyle company encompassing differentiated offerings from four core pillars: Hapi Marketplace, Hapi Cafe, Hapi Travel and Hapi Wealth Builder. HWH develops new pathways to help people in their pursuit of Health, Wealth and Happiness.

For more information, visit: https://www.hwhintl.com/

Forward Looking Statements

This press release contains, and certain oral statements made by representatives of HWH and its affiliates, from time to time may contain, “forward-looking statements” within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995. HWH’s actual results may differ from expectations, estimates and projections and consequently, you should not rely on these forward-looking statements as predictions of future events. Words such as “expect,” “estimate,” “project,” “budget,” “forecast,” “anticipate,” “intend,” “plan,” “may,” “will,” “could,” “should,” “believes,” “predicts,” “potential,” “might” and “continues,” and similar expressions are intended to identify such forward-looking statements. These forward-looking statements include, without limitation, statements regarding HWH’s continued growth and expansion and its ability to deliver value to customers and investors, along with those other risks described under the heading “Risk Factors” in the registration statement on Form S-1, filed by HWH with the Securities and Exchange Commission (the “SEC”) on December 3, 2024, and those that are included in any of HWH’s future filings with the SEC. These forward-looking statements involve significant risks and uncertainties that could cause actual results to differ materially from expected results. Most of these factors are outside of the control of HWH and are difficult to predict. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those indicated or anticipated by such forward-looking statements. Readers are cautioned not to place undue reliance upon any forward-looking statements, which speak only as of the date made. HWH undertakes no obligation to update forward-looking statements to reflect events or circumstances after the date they were made except as required by law or applicable regulation.

No Offer or Solicitation

This press release does not constitute an offer to sell or the solicitation of an offer to buy any securities, or a solicitation of any vote or approval, nor shall there be any sale of securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction. No offer of securities shall be deemed to be made except by means of a prospectus meeting the requirements of the Securities Act of 1933, as amended.

For investor and media inquiries, please contact:

HWH International Inc. 
4800 Montgomery Lane, Suite 210
Bethesda, MD 20814
301-971-3955
contact@hwhintl.com

FAQ

How much revenue did HWH's Hapi Travel joint venture generate in the first three quarters of 2024?

The joint venture generated revenue exceeding US$18 million during the first three quarters of 2024.

What is HWH's ownership percentage in the Hapi Travel joint venture?

HWH holds a 19% interest in the Hapi Travel joint venture.

When was HWH's Hapi Travel joint venture established?

The joint venture was established in April 2024.

What are the three key business sectors of HWH's Hapi Travel venture?

The venture focuses on education tours for Chinese schools, conference tour packages, and a B2B hotel booking system.

Which countries is HWH's Hapi Travel planning to expand into?

Hapi Travel is planning to expand into Singapore and Malaysia, following its establishment in Hong Kong.