On February 2, GLONGHUI | Intercontinental Aerospace Technology (01725.HK) announced that on February 1, 2024, Aspace Saudi, Aspace HK and investors entered into a joint venture agreement with Aspace Saudi. The Board of Directors and investors are looking forward to this cooperation and are pleased to participate in the introduction of satellite manufacturing into the Kingdom of Saudi Arabia. The work has been identified as a priority area under “Saudi Vision 2030” (a government program launched for the Kingdom of Saudi Arabia, which aims to promote diverse economic, social and cultural development).
According to the terms of the joint venture agreement, the shareholding ratio of Aspace HK and investors in Aspace Saudi will be maintained at 85:15, subject to certain conditions to be fulfilled by the investors and Aspace HK. Investors are expected to assist Aspace Saudi in the construction of its satellite manufacturing facility and future business operations in the Kingdom of Saudi Arabia.
The parent company and family office of investor Masarrah Investment Company #是Almutlaq Group (AMG) has been part of the economy of the Kingdom of Saudi Arabia since 1954. It has not only invested and operated companies in the retail, energy and petrochemicals, industrial manufacturing, agriculture and food, real estate, etc., but has recently made many contributions to the region's economy by participating in privatization projects (acquisitions and green space development) in the Kingdom of Saudi Arabia. Aspace Saudi is a limited company incorporated under the laws of the Kingdom of Saudi Arabia and was an indirect non-wholly-owned subsidiary of the company as of the date of this announcement. Aspace Saudi plans to be mainly engaged in satellite manufacturing in the Kingdom of Saudi Arabia.
Considering the investor's business and strategic relationship in the Kingdom of Saudi Arabia and the investor's work to assist in the construction and operation of the Aspace Saudi satellite manufacturing business, the company believes that the joint venture agreement enables the Group to carry out satellite manufacturing business in the Kingdom of Saudi Arabia. Therefore, the company believes that the joint venture agreement can complement the Group's business on the one hand, and also enable the Group to benefit from expanding its overseas satellite manufacturing business.