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

Type Announcement
Subject MEMORANDUM OF UNDERSTANDING
Description
MEMORANDUM OF UNDERSTANDING ENTERED INTO BETWEEN HWG CONSORTIUM SDN BHD AND SHIJIAZHUANG YILING PHARMACEUTICAL CO., LTD. (SHE: 002603)

INTRODUCTION

 

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

 

  1. SYP agrees to authorize HWG Consortium to conduct the registration/filing for its products in Malaysia on behalf of SYP, provided that the ownership of the registration/filing shall belong to SYP.  Cost incurred for such registration shall be reimbursed by SYP.
  2. SYP undertakes that, within thirty (30) days following the execution of this MOU, SYP will issue a power of attorney and enter into a product agency contract with HWG Consortium.
  3. This MOU is valid for six (6) months. If HWG Consortium fails to start the product registration/filing in the name of SYP in HWG Consortium’s locality during the validity term, such Memorandum shall be automatically invalid.

 

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.

 

APPROVALS REQUIRED

 

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.






Announcement Info

Company Name HO WAH GENTING BERHAD
Stock Name HWGB
Date Announced 16 Apr 2020
Category General Announcement for PLC
Reference Number GA1-16042020-00047