Careplus Group Berhad (Careplus) yesterday announced its joint venture with GoAuto Group Sdn Bhd (Go Auto), Nexv Manufacturing Sdn Bhd (NMSB), has secured a manufacturing license for energy efficient vehicles (EEV).
The glove maker said NMSB have received the manufacturing license on Oct 24, to undertake the activity of manufacturing and assembly of energy efficient vehicles (EEV) for passenger vehicles, commercial vehicles and electrical motorcycles.
“We have received decision letters from Ministry of Investment, Trade and Industry (MITI) on Oct 24, approving our manufacturing license with the standard conditions to comply with Department of Environment (DOE) and local authorities,” it said, adding the manufacturing license is pursuant to Industrial Co-ordination Act 1975 (section 156).
In a statement after their Extraordinary General Meeting (EGM) on October 25, the group said their shareholders have approved their foray into electric vehicles business (EV), as part of diversification of their existing business and the partnership with Go Auto.
The group says in the joint venture with Go Auto, NexV Manufacturing Sdn Bhd (NMSB) it have a 51% stake and the balance of 49% is by Go Auto.
GoAuto is partly owned by Naza Group founder the late Tan Sri SM Nasimuddin Kamal’s son, Datuk Sheikh Mohamad Azli Sheikh Mohamad Nasimuddin Kamal.
NMSB will have an assembling capacity of 30,000 units per year in its first phase and Neta will take up 10,000 units while the balance will be opened to other interested parties, the company said.
“We plan to begin assembling by the end of 2024. Our aim is that we manufacture up to 30,000 units before going on to the second and third phases,” it said.
On the other hand, it said that the joint venture with Go Auto, under NexV Synergy Sdn Bhd (NSSB) will undertake the EV Dealership in respect of EVs manufactured under the NETA brand, where NSSB would have the sole and exclusive dealership rights to NETA EV for the entire territory of Negeri Sembilan.
It will also expand the EV dealership to include other brands of passenger and commercial vehicles and manage and operate Careplus Mall pursuant to the EV dealership, it added.
“We have plan to develop a Careplus Mall into an auto city, in which ‘anything related to auto or new energy’ will be made a part of it.
“Our flagship NETA showroom will be at the Careplus Mall which will have high speed charging stations for EVs, to be installed by Gentari a unit under Petronas.
“Careplus Mall will complement the auto side of businesses with a variety of food & beverage outlets, badminton courts, a TVET training academy and other suitable businesses or activities,” the company said.
The company said the share holders also agreed to joint venture with Go Auto to import vehicles under the Neta brand, by taking up a 30% stake in Intro Synergy Sdn Bhd (ISSB), a wholly owned subsidiary of Go Auto through a share swap.
Careplus said, on Sept 4, it had entered into a joint venture and shareholders agreement (JVSA) and Consideration Shares (SSA), in relations to proposed ISSB JV which involves the purchase of 300,000 shares equivalent to a 30% equity stake in ISSB via a share swap with 25 million new ordinary shares in Careplus valued at RM6 million.
In the agreement, SSB will NETA EV for distribution in Malaysia, on an exclusive basis, according to the terms and conditions agreed. Hozon New Energy Automobile Co. Ltd has been appointed as the sole and exclusive distributor for certain models of NETA EV for Malaysia.
Careplus said that the manufacturing and assembly hub for EEV, NSSB joint venture, will be be built by Careplus Properties Sdn Bhd (CPP), a wholly-owned subsidiary of Careplus on the existing 73.34 acres of land held by CPP and will be operated by NMSB.
“The capex requirement for the two buildings will be approximately RM230 million. We expect to fund RM60 million to RM70 million internally, while the balance will come from bank borrowings,” it added.
