AKN Technology Bhds 55%-owned subsidiary Autoplus International Group Ltd and Xiamen Overseas Chinese Electronic Inc Ltd (Xoceco) have set up a joint-venture company in China, which would take over Xocecos computer and computer peripherals division.
The company, Xoceco-Ace Co Ltd, would manufacture and market the products in China as well as export to other countries under the brand name of Xoceco.
The company was given the right to use the brand name for 20 years with a nominal fee of RM4,600 per annum.
Xoceco-Ace has a registered capital of RM1.84mil of which Autoplus would subscribe 70% for RM1.3mil cash.
The formation of the joint-venture company allows the AKN group to penetrate the huge domestic market in China supported by an established brand name, AKN said in a statement yesterday.
In addition, the manufacturing activity can be supported by Ace Technology (Dongguan) Co Ltd, a 100%-owned subsidiary of Autoplus in China.''
The investment is expected to contribute positively to AKNs earnings in the current year ending March 31, 2004.