MEMORANDUM OF UNDERSTANDING MEMORANDUM OF UNDERSTANDING ENTERED INTO BETWEEN HWG CONSORTIUM SDN BHD AND SHIJIAZHUANG YILING PHARMACEUTICAL CO., LTD. (SHE: 002603)
|HO WAH GENTING BERHAD|
|Subject||MEMORANDUM OF UNDERSTANDING
MEMORANDUM OF UNDERSTANDING ENTERED INTO BETWEEN HWG CONSORTIUM SDN BHD AND SHIJIAZHUANG YILING PHARMACEUTICAL CO., LTD. (SHE: 002603)
The Board of Directors of the Ho Wah Genting Berhad (“HWGB” or “the Company”) wishes to announce that its wholly owned subsidiary, HWG Consortium Sdn Bhd (“HWG Consortium”) had on 15 April 2020 (duly signed copy received on 16 April 2020) entered into a Memorandum of Understanding (“MOU”) with Shijiazhuang Yiling Pharmaceutical Co., Ltd. (Shenzhen Stock Exchange: 002603) (“SYP”) (herein after known as the “Parties”) .
INFORMATION ON SYP
SYP (listed on Shenzhen Stock Exchange, Stock Code: 002603), with its principal place of business at No.238 Tianshan Street, Shijiazhuang City, Hebei, China is a company principally engaged in the research and development, manufacture and distribution of pharmaceutical products.
INFORMATION ON HWG CONSORTIUM
HWG Consortium was incorporated on 18 June 2012 under the Companies Act, 1965 with Company No. 1006524-T. The paid-up capital is RM100,000 with 100,000 ordinary shares in issued with HWGB as the registered shareholder.
SALIENT TERMS OF THE MOU
RATIONALE OF THE MOU
The MOU is entered into to allow the Parties to negotiate the terms of the collaboration and to evaluate the feasibility of the collaboration for the best interest of the Parties.
FINANCIAL EFFECTS OF THE MOU
The MOU is not expected to have any material effect on the earnings per share, net assets per share, gearing, share capital and substantial shareholders’ shareholding of the Company for the financial year ending 31 December 2020. Should the business materialize, it is expected to contribute positively to the future earnings of the Group.
STATEMENT BY DIRECTORS
The Board of Directors of the Company, having taken into consideration all aspects of the MOU, is of the opinion that the MOU is in the best interest of the Company and its subsidiaries.
The MOU is not subject to the approval of the shareholders of the Company.
DOCUMENTS AVAILABLE FOR INSPECTION
The MOU will be made available for inspection at the registered office of the Company at Wisma Ho Wah Genting, No. 35, Jalan Maharajalela, 50150 Kuala Lumpur during normal office hours on Mondays to Fridays (except for public holidays) for a period of three (3) months from the date of this announcement.
This announcement is dated 16 April 2020.
|Company Name||HO WAH GENTING BERHAD|
|Date Announced||16 Apr 2020|
|Category||General Announcement for PLC|