KUALA LUMPUR (Feb 10): ACE Market-listed automated test equipment manufacturer Aemulus Holdings Bhd is looking to inject capital into Tangming Shengshi Technology (Jiashan) Co Ltd (TMSS), which is involved in the development and sales of semiconductor equipment and the provision of design consultancy services.

In 2020, Aemulus had entered into an agreement with China-based technology firm Tangren Microtelligence Technology (Jiashan) Co Ltd to form a 40:60 joint venture — TMSS — to enter the China market.

In a bourse filing on Thursday (Feb 10), Aemulus said its wholly-owned subsidiary Aemulus Corp Sdn Bhd has entered into a memorandum of understanding (MoU) with Tangren to discuss the details in relation to the capital injection into TMSS.

"Aemulus and Tangren agree to a capital injection into TMSS at the ratio of 40% and 60% respectively within three months," it added.

According to Aemulus, there is no contract value stated as this MoU marks the intention of the parties to a capital injection into TMSS. "The sum of capital injection will be determined and finalised by both parties."

It added that the MoU is not expected to have a material effect on the group's earnings, net assets and gearing for the financial year ending Sept 30, 2022.

"Should the agreement materialise, it is expected to contribute positively to the future earnings of the group," it said.

It is worth noting that Aemulus executive director and chief executive officer and major shareholder Ng Sang Beng is also a director in TMSS. Ng was nominated by Aemulus to sit on the board of TMSS to represent the interest of the group in TMSS.

Aemulus shares closed down 1.5 sen or 1.52% at 97.5 sen on Thursday, bringing a market capitalisation of RM647.49 million.