Gelonghui, April 26 | Fuzhikang Group (02038.HK) announced that on April 25, 2024, Fuzhikang International, a wholly-owned subsidiary of the company, entered into a joint venture agreement with other joint ventures (including Hon Hai Investment and Futai). According to the terms and conditions of the joint venture agreement, (a) the joint venture has agreed to establish a joint venture with an authorized share capital of NT$6,000 million (equivalent to approximately US$185.8 million); and (b) Fuzhikang International has agreed to make a total cash investment of NT$125 million (Equivalent to about 3.9 One million US dollars), which is equivalent to approximately 8.08% of all issued joint ventures where the initial delivery was completed and about 2.08% of all issued joint venture shares after the minimum target capital was fulfilled.
The joint venture will mainly invest in utility/renewable energy projects related to solar, wind and electricity storage in Taiwan, China. In view of the growing global demand for renewable energy (in particular the industries the Group is currently engaged in or planning to work in), the Company believes that: (i) the proposed transaction under the joint venture agreement provides a good, timely and valuable opportunity for the Group to directly participate in future investment projects with relatively stable returns in the joint venture; (ii) given the limited supply of green power in Taiwan, China, as an investor, Fuzhikang International will prioritize purchasing green electricity from joint venture investment projects, and that Fuzhikang International will effectively promote the Group to use more renewable energy and reduce carbon/greenhouses in its business operations Gas emissions initiatives will enable the Group to meet the growing needs of the Group's customers in a timely and adequate manner; and (iii) the proposed transaction under a joint venture agreement will provide the Group with relevant market competitors and participants a valuable opportunity to co-locate in the renewable energy industry and obtain relevant renewable energy expertise and technology, and the Group can use this to establish a network of relevant renewable energy relationships, accumulate relevant renewable energy expertise and technology, and seize potential future business opportunities in the industry.