JF Technology unit proposes collaboration with Huawei’s Hubble Technology Investmnent

PETALING JAYA: JF Technology Bhd’s wholly owned subsidiary JF International Sdn Bhd has entered into a proposed business collaboration with Huawei Investment & Holding Co Ltd’s wholly owned subsidiary Hubble Technology Investment Co Ltd (HTI).

According to the group’s Bursa disclosure, the collaboration is formalised with a capital increase and shareholders agreement via JFH Technology (Kunshan) Co Ltd, a wholly owned subsidiary of JF International.

It stated that the agreements set out the basic terms of the relationship between the two with a subscription of capital in JFH Technology by HTI which entails provision on the two parties’ rights and obligations with respect to the corporate governance, equity transfer and other aspects of the company following the completion of the capital increase.

With that the group will subscribe US$500,000 (RM2.1 million) capital in JFH Technology in cash, while HTI shall contribute US$1.5 million in cash to the company with US$410,000 to be credited as increased registered capital and the remaining US$1.09 million shall be credited as capital reserve.

Following the capital subscription, the company will have a registered capital of US$ 910,000 with JF possessing a 55% equity stake and HTI holding the remaining 45% stake.

JF explained that the proposed collaboration will enable it to establish a long-term synergistic partnership which would leverage on each other’s strength.

JFH Technology will manufacture and supply high performance test contactors to HTI and other customers in China. In addition, this would also solidify its relationship as a key customer and strategic partner as well as gaining market access to China.

“With the opportunity for JFH Technology to work closely with HTI to develop new test contacting technology for 5G network and 6G network as well as in the future, there will be technological knowhow and knowledge transfer from JF Group to JFH Technology, enabling JFH Technology to move upthe value chain of the semiconductor industry while developing local talents amongst Malaysians,” it said.

Furthermore, the proposed business collaboration serves to affirm JFH Technology’s maiden step to strengthen its presence in China.

The proposed business collaboration is expected to be completed by the first quarter of FY2022.