KUALA LUMPUR (July 11): Apparel manufacturer G3 Global Bhd has teamed up with two American companies to venture into a car cloud platform across Asean markets as part of its expansion into the Internet of Things (IoT).
In a filing to Bursa Malaysia today, G3 Global said its wholly-owned subsidiary Atilze Digital Sdn Bhd has entered into a joint venture (JV) agreement with US-based Gosuncn Welink (USA) Technology Co Ltd and Prospect Industry LLC, and this would eventually lead to the incorporation of a JV company between the three parties in Malaysia.
Under the agreement, Atilze will hold 55% of the JV company, while Welink and Prospect will own 30% and 15% respectively.
Atilze will fund its RM55,000 investment in the JV company via internally generated funds.
G3 Global said the JV is in line with the company's plans to collaborate with a leading provider of a software platform as it is needed to operate the connected car cloud platform and mobile application solutions to undertake the IoT business.
According to the agreement, Welink, among others, will be responsible for the support and maintenance services and to ensure the software is in good operating condition.
It will also be responsible for extension, modifications and improvements to the software from time to time to enable the connected car platform to perform the latest features and functions consistent with technological advances and offerings of competitors in the market.
Incorporated in the US, Welink is principally involved in providing the software platform which is needed for operating the connected car and mobile application solutions and services provided.
Meanwhile, Prospect is principally involved in investment holdings.
G3 Global board of directors believes that the project has good prospects to broaden the revenue base, contribute to future earnings of the company and expand the group's income streams from the area of IoT.
"The board is optimistic that the project will contribute towards the profitability of G3 Global," said the company.
G3 Global was last traded at 85 sen on Monday.