Friday 29 Mar 2024
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KUALA LUMPUR (Sept 17): Sino Hua-An International Bhd (Hua-An)’s unit Touchpoint International Sdn Bhd has inked a deal with Technische Investment (PTY) Ltd for the use and commercialisation of a mobile application called SnappiStore App (SSA).

Touchpoint had on Tuesday (Sept 15) entered into a software licence and service agreement with Technische, which is a South Africa-based firm providing online ordering services, payment processing services and delivery services, the group said in a bourse filing today.

“The SSA is the proposed mobile app that will be developed by Touchpoint for Technische in the Republic of South Africa which is a white labelled version of the M Squared platform that is used by Touchpoint in Malaysia,” it added.

According to the group, the SSA is comprised of consumer and merchant mobile apps, as well as the back end system. It features an e-commerce platform, a food ordering and delivery system and an e-wallet.

Under the five-year agreement, Touchpoint will provide the SSA platform to Technische along with a business model, consultation services, technical support, system administration and staff training.

“Touchpoint agrees that Technische shall be the sole and exclusive licensee [of the SnappiStore App] in the Republic of South Africa during the term of the agreement.

“Technische will pay to Touchpoint a revenue share of 2.5% of total revenue generated by Technische and a monthly revenue share of 7.5% of total revenue generated by Snappisavings.

“In the event of the sale or listing of Technische prior to the expiration of the term, a one-time payment of the balance amounting to US$500,000 minus the revenue share received up until sale or listing of the firm,” it said.

According to Hua-An, the deal allows the group to gain a footprint in South Africa, in line with its overall strategy to establish its presence in the international scene.

“This will enable Hua-An to further expand its revenue and profit sources, moving forward,” it added.

Shares in Hua-An settled one sen or 7.69% lower at 12 sen apiece today with 22.48 million units done. This gave the counter a market capitalisation of RM149.08 million.

Edited ByLam Jian Wyn
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