WISE ALLY INTL plans to establish a joint venture company mainly engaged in sales and promotion of the EMS industry development provided by Hong Kong WISE ALLY INTL in cooperation with Giken

WISE ALLY INTL (09918) announced on March 20, 2024 (after trading hours) that Hong Kong Lianian (an indirect wholly-owned subsidiary) and Giken have entered into a joint venture agreement. According to this agreement, the contracting parties have agreed to jointly establish a joint venture company, with Hong Kong Lianian and Giken holding 90% and 10% equity respectively. The joint venture company will mainly engage in the sales and promotion of the EMS industry development provided by the collaboration between Hong Kong Lianian and Giken.

The amount of capital contribution is determined by the contracting parties after considering the expected capital requirements of the joint venture company and the expected operating capital required for initial work, following fair negotiations. Hong Kong Lianian and Giken will subscribe to 90% and 10% of the share capital of the joint venture company respectively, and the total share capital amount to be paid by Hong Kong Lianian and Giken will be SGD 2,000 (equivalent to HKD 11,652), with the contracting parties contributing in proportion to the number of joint venture company shares subscribed.

The Group is a well-known EMS supplier specializing in consumer electronics products, dedicated to providing customers with one-stop solutions. The Group also provides a wide range of EMS services to companies in the medical, healthcare, HVAC, industrial, and electrical fields, and offers innovative IoT terminal equipment solutions to enterprises to help them achieve their business and operational goals. On the other hand, Giken is a long-established comprehensive contract manufacturer, with its holding company listed on the Singapore Stock Exchange since 1993, and its production facilities located on Batam Island, Indonesia. Giken has accumulated rich expertise in four major business areas: precision machining, electronic contract manufacturing (PCBA), plastic injection molding, and complete machine assembly. The directors believe that the establishment of the joint venture company signifies the cooperation between Hong Kong Lianian and Giken in sales and marketing, aiming to promote the synergistic effect of Hong Kong Lianian's new product innovation capabilities and Giken's mature manufacturing capabilities on Batam Island, Indonesia. The joint venture company is envisioned to drive innovation for both contracting parties and enhance customer satisfaction