OTHERS Nexgram Group entering Strategic Cooperation Framework Agreement with Jiangsu Tongguang Optical Cable Co. Limited (China)
|NEXGRAM HOLDINGS BERHAD|
Nexgram Group entering Strategic Cooperation Framework Agreement with Jiangsu Tongguang Optical Cable Co. Limited (China)
The Board of Directors of the Nexgram Holdings Berhad (‘the Company’ or ‘Nexgram’) wish to announce that on 12 March 2018, the Company had entered into a Strategic Cooperation Framework Agreement (“SCFA”) with Jiangsu Tongguang Optical Cable Co., Limited (“JTOCC”), the subsidiary of Jiangsu Tongguang Electronic Wire & Cable Co. Ltd. (“JTEWCC”) (a company listed in Shenzen, China) pursuant to which both parties will carry out all-round operations in the field of Communications Cables, Radio-frequency coaxial cables, High Temporature Resistant Wires and Cables for Aerospace, Aluminium-Alloy Electical Cables, Submarine Optical Fiber Cables and other optical cable along power transmission line (4G,5G), including products research and development, distributions, projects joint venture, maintenances & supports, and others strategic partnership cooperations in South East Asian countries. Malaysia is the new market for JTEWCC Group.
According to Markets and Markets Research Reports, the overall global wire & cable maintenance market is estimated to grow from USD16.91 billion in 2018 to USD 25.26 billion by 2023, and the Asia Pacific is the largest market (refer Note 1 website). According to Worldometers (2018), South East Asian population cross 655 million (i.e, about half of China 1.4 billion population) (refer to Note 2 website).
The SCFA is for duration of one (1) year and the renewal subject to mutual agreement in the future. Nexgram will be the sole distributor and hub for JTOCC in Malaysia market.
JTOCC patented products have been rated as National Key Products, State Torch Plan Project Products, and Jiangsu Provincial Hi-Tech Products. The annual production capability reaches 45,000 cable-km, and in the forefront top seller in China domestic market. JTOCC has set up a long-term strategic relationship with China State Grid Corporation and China Southern Power Grid Corporation. JTOCC products are also military-grade certified and used in China satellite and space programs including submarine cable is widely used in trans-continent national grid and fiber optic service providers globally. The products are widely used by many foreign countries Worldwide such as Sudan, Ethiopia, Nigeria, Congo, Australia, UK, Russia and some other areas. Rely on its sales network and after-sales service centers all over Asia, Africa, Europe and 32 domestic provinces and cities (refer Note 3 website).
Nexgram Holdings Bhd being an investment holding company in telecommunication, software, surveillance, real estate, and infrastructure business investment. The Company long-term strategic business representatives in South East Asia, especially in Indonesia, Thailand, Philippines, Vietnam, and Malaysia, provides support for JTOCC South East Asia expansion plan. The partnership is in line with China government’s “one belt one road” USD1 trillion economic investment initiative (The New York Times, refer Note 4 website) with the national power grid, and 5G infrastructure expenditure in the region playing a major part in the master plan.
None of the Directors, Substantial or Major Shareholders of Nexgram and/or any persons connected to them have any direct or indirect interest in the SCFA.
The SCFA is not expected to have a material effect on the earnings per share, Net Assets (“NA”), NA per share and gearing of the Group for the financial year ending 31 July 2018.
Source & References (Notes):
http://www.chinatgg.com.cn/en/ (official TGG Group profile in English)
This announcement is dated 12th March 2018