HeartCore Announces the Establishment of HeartCore Luvina Vietnam Co., Ltd.
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Insights
The establishment of HeartCore Luvina Vietnam represents a strategic move by HeartCore Enterprises to leverage the existing partnership with Luvina Software, optimizing their content management system (CMS) and digital asset management (DAM) capabilities. The integration of 850 skilled engineers into the HeartCore ecosystem could significantly enhance operational efficiency and software development capacity. This expansion into Vietnam is indicative of a trend where companies seek to capitalize on lower-cost, high-quality offshore software development to bolster their competitive edge and global reach.
From a market perspective, the joint venture is likely to be viewed favorably by investors as it suggests a proactive approach to growth and international diversification. The focus on generating seamless sales and the potential for increased market share in the United States and Europe could translate into a more robust revenue stream for HeartCore. Additionally, the emphasis on innovation and collaboration could lead to new product offerings, potentially opening up additional market segments.
Financially, the creation of HeartCore Luvina Vietnam is a move likely to impact HeartCore's bottom line positively. By integrating Luvina Software's engineering team, HeartCore can expect to see a reduction in operational costs due to the lower cost of labor in Vietnam compared to Japan. This cost efficiency could improve profit margins and allow HeartCore to offer competitive pricing in the global market. Furthermore, the venture's focus on sales generation through existing and new channels may lead to an uptick in revenue, which could be reflected in future financial statements.
Investors should monitor the joint venture's performance closely, as initial investments and integration costs may affect short-term financials, but the long-term outlook appears promising if the synergy between the two companies translates into sales growth and market expansion. The strategic alignment with a focus on the U.S. and European markets also suggests an anticipation of increased demand in these regions, which could be a significant growth driver for HeartCore's stock performance.
The formation of HeartCore Luvina Vietnam is a calculated step in HeartCore's global strategy, reflecting a shift towards globalization in the software industry. By tapping into the Vietnamese market, HeartCore is not only accessing a pool of technical talent but also positioning itself closer to potential clients in the fast-growing Southeast Asian region. The strategic partnership with Luvina Software, a company with a strong track record and existing relationships with Japanese corporations, could facilitate smoother entry into new markets and enhance HeartCore's service offerings.
Moreover, this move can be seen as a response to the increasing demand for digital transformation services, which has been accelerated by the global shift towards remote work and digital operations. HeartCore's emphasis on the U.S. and European markets signals an understanding of the need to establish a presence in key tech hubs that are ripe for digital innovation. The synergies expected from this joint venture could provide HeartCore with the agility to quickly adapt to market changes and customer needs, which is crucial in the technology sector.
NEW YORK and TOKYO, Feb. 28, 2024 (GLOBE NEWSWIRE) -- HeartCore Enterprises, Inc. (Nasdaq: HTCR) (“HeartCore” or “the Company”), a leading enterprise software and consulting services company based in Tokyo, announced the establishment of HeartCore Luvina Vietnam Co., Ltd. (“HeartCore Luvina Vietnam”), a joint venture with Luvina Software Joint Stock Company (“Luvina Software”), a Vietnam-based IT outsourcing and software development company.
Founded in 2004, Luvina Software is a top 10 IT Outsourcing Services company in Vietnam that specializes in the design, development, maintenance, and operation of IT products. For the past five years, Luvina Software has been a longstanding outsourcing partner in HeartCore’s CMS business, actively engaging in program development, testing, maintenance, and technical services, including collaborating on DAM projects and the overhaul of the UI/UX to enhance the functionality of the administration screens in HeartCore Version 12.
The establishment of HeartCore Luvina Vietnam is poised to catalyze synergies within HeartCore and its group companies to facilitate seamless sales generation. Luvina Software currently staffs 850 engineers and generates
“I am pleased to announce our newly established joint venture company, HearrtCore Luvina Vietnam, which will significantly boost our efforts in expanding our global software business,” said HeartCore CEO Sumitaka Kanno Yamamoto. “Having worked closely with Luvina Software and its talented team over the past five years across various projects, we view this partnership as a critical next step in advancing and optimizing sales generation within our enterprise software business and group companies, specifically Sigmaways. The establishment of HeartCore Luvina Vietnam marks a pivotal move in our overarching global expansion efforts, presenting fresh avenues for growth abroad, particularly in the United States and Europe. We believe this strategic initiative will not only enhance our presence in key markets but also foster new opportunities for innovation and collaboration on an international scale.”
About HeartCore Enterprises, Inc.
Headquartered in Tokyo, Japan, HeartCore Enterprises is a leading enterprise software and consulting services company. HeartCore offers Software as a Service (SaaS) solutions to enterprise customers in Japan and worldwide. The Company also provides data analytics services that allow enterprise businesses to create tailored web experiences for their clients through best-in-class design. HeartCore’s customer experience management platform (CXM Platform) includes marketing, sales, service and content management systems, as well as other tools and integrations, which enable companies to enhance the customer experience and drive engagement. HeartCore also operates a digital transformation business that provides customers with robotics process automation, process mining and task mining to accelerate the digital transformation of enterprises. HeartCore’s GO IPOSM consulting services helps Japanese-based companies go public in the U.S. Additional information about the Company's products and services is available at https://heartcore-enterprises.com/.
Forward-Looking Statements
All statements other than statements of historical facts included in this press release are forward-looking statements. In some cases, forward-looking statements can be identified by words such as “believed,” “intend,” “expect,” “anticipate,” “plan,” “potential,” “continue,” or similar expressions. Such forward-looking statements include risks and uncertainties, and there are important factors that could cause actual results to differ materially from those expressed or implied by such forward-looking statements. These factors, risks, and uncertainties are discussed in HeartCore’s filings with the Securities and Exchange Commission. Investors should not place any undue reliance on forward-looking statements since they involve known and unknown, uncertainties and other factors which are, in some cases, beyond HeartCore’s control which could, and likely will materially affect actual results, and levels of activity, performance, or achievements. Any forward-looking statement reflects HeartCore’s current views with respect to future events and is subject to these and other risks, uncertainties, and assumptions relating to operations, results of operations, growth strategy, and liquidity. HeartCore assumes no obligation to publicly update or revise these forward-looking statements for any reason, or to update the reasons actual results could differ materially from those anticipated in these forward-looking statements, even if new information becomes available in the future. The contents of any website referenced in this press release are not incorporated by reference herein.
HeartCore Investor Relations Contact:
Gateway Group, Inc.
Matt Glover and John Yi
HTCR@gateway-grp.com
(949) 574-3860
FAQ
What was announced by HeartCore Enterprises, Inc. (HTCR) in the press release?
Who is Luvina Software in relation to the joint venture with HeartCore Enterprises, Inc. (HTCR)?
What is the purpose of establishing HeartCore Luvina Vietnam according to the press release?
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