HO WAH GENTING BERHAD’S 2ND MOVE – ENTERED MOU WITH XIAMEN CHIEF TO INCREASE ITS DIVERSITY IN THE MANUFACTURING, ASSEMBLING, AND DISTRIBUTING OF ELECTRIC VEHICLE
KUALA LUMPUR, 22 MARCH 2021 – Ho Wah Genting Berhad (“HWGB” or the “Company”) (Bursa Stock Code: 9601) today announced that its wholly-owned subsidiary, HWGB EV Sdn Bhd (“HWGB EV”) has entered into a Memorandum of Understanding (“MOU”) with XIAMEN CHIEF Electric Vehicle Co. Ltd (“Xiamen Chief”) to establish a basis of co-operation and collaboration between the HWGB EV and Xiamen Chief for the purposes of manufacturing, assembling and distributing of electric vehicles in Malaysia.
Xiamen Chief was established on 19 June 2000 and it is principally engaged in the production, design and development of electric vehicles and spare parts for electric tour buses, electric golf buggy cars and others, and leasing of self-produced products. It mainly produces a series of electric vehicles (“Chief EV”) suitable for tourist attractions, resorts, gated communities, urban pedestrian streets, large factories, stadiums, hospitals and prisons. Xiamen Chief can also design and manufacture various special-purpose modified vehicles according to user’s needs. It introduces the most advanced electric vehicle manufacturing technology from the United States, with all its key components imported.
The collaboration with Xiamen Chief will allow the distribution of the Chief EV series of electric vehicle in Malaysia as it shall appoint HWGB EV on an exclusive basis for the importation, sales, distribution and manufacturing and assembly of its Chief EV series of electric vehicles in Malaysia with the brand name to be decided by HWGB EV and Xiamen Chief collectively. Xiamen Chief will contribute in terms of its experience, qualifications, resources, branding and technology and in return, HWGB shall procure the transfer of 10% of the issued shares in HWGB EV to Xiamen Chief.
Chairman of Xiamen Chief, Mr. Sun Dandan said: “We believe that the Malaysian electric vehicle industry has a lot of untapped potential and we are looking to capitalize on this by expanding into Malaysia market through this collaboration with HWGB. Thus, we have no doubt that this partnership will cement a strong footing for us in the Malaysian electric vehicle industry”.