1. INTRODUCTION

The Board of Directors of Sunsuria (“Board”) wishes to announce that the Company had on 1 April 2023 entered into a Memorandum of Understanding (“MoU”) with IAT Automobile (the Company and IAT Automobile to be collectively referred to as “the Parties”) to reach a common understanding that the Parties shall invest in Malaysia by carrying out research and development in the area of Electric Vehicle (“EV”) and EV related products, creating and manufacturing Malaysia’s own brand of EV with cutting-edge in technological advance (“Collaboration”).

2. INFORMATION ON IAT AUTOMOBILE

IAT Automobile (Company Registration No. 91110302662152417W), a company duly incorporated and existing under the laws of the People's Republic of China, having its registered address at 9th Floor, Building 11, No.7 of LiangShuiHe 2nd Street, Beijing Economic-Technological Development Area, Beijing and is listed on Shenzhen Stock Exchange in P.R. China on 27 March 2020.

IAT is China’s largest independent car design company having RMB501,417,333 registered capital.

3. SALIENT TERMS OF THE MoU

Both Parties shall carry out discussions and negotiations on the Collaboration on an exclusive basis. Under the terms of the MoU, both Parties agreed, inter-alia, on the following:

• to carry out research and development in the area of EV and EV related products, creating and manufacturing Malaysia’s own brand of EV with cutting-edge in technological advance by investing in Malaysia;

• to build and develop EV innovation parks;

• to create an automotive diversified ECO system;

• to foster cooperation through a joint venture company to be incorporated in Malaysia as its main operation base to be expanded to other countries in South East Asia; and

• to cooperate to jointly establish the ASEAN Automotive Design and Innovation Center. 

Currently, Sunsuria IAT (M) Sdn. Bhd. is a joint venture company between Sunsuria Berhad (holding 51% interest) and IAT Automobile (holding 49% interest).

4. VALIDITY

The MOU shall become effective as of the date of execution of this Agreement by the authorized representatives of both Parties and shall remain in force and effect and may be terminated or renewed upon mutual agreement between the Parties.

The Parties agree to review the performance of this MOU after a period of three (3) months following the date of this MOU and the result of such review shall determine the renewal, termination or adjustment of same.

5. FINANCIAL EFFECTS

The MoU is not expected to have a material effect on the earnings, net assets and gearing of the Company and of the Group for the financial year ending 30 September 2023.

The MoU will not have any effect on the issued and paid-up share capital of the Company as well as its director or its substantial shareholdings.

6. RATIONALE

The MoU will allow the Company an opportunity to collaborate with IAT to tap into the research and development in in the area of Electric Vehicle (“EV”) and EV related products and to provide automotive education (college), talent cultivation for Malaysia and South East Asia to enhance operational efficiency. The MOU is part of the series of foreign direct investments with total commitment of RM170 billion in investments from China, which was secured in conjunction with Prime Minister Datuk Seri Anwar Ibrahim’s visit to China.

7. APPROVAL REQUIRED

The MoU is not subject to the approval of the shareholders of Sunsuria or any other relevant authorities.

8. DIRECTORS’ AND MAJOR SHAREHOLDERS’ INTERESTS

None of the Directors, major shareholders and/or persons connected with a Director or a major shareholder of the Company, have any interest, direct or indirect, in the MoU.

9. DOCUMENTS FOR INSPECTION

The MoU is available for inspection at the Registered Office of the Company at Suite 8, Main Tower, Sunsuria Avenue, Persiaran Mahogani, Kota Damansara PJU 5, 47810 Petaling Jaya, Selangor during normal office hours from Mondays to Fridays (except for public holidays) for a period of three months from the date of this announcement.

This announcement is dated 3 April 2023.