02153.HK announced that on 6 December 2021, the company entered into a non-legally binding memorandum of understanding with IFSCapital Limited (IFS) concerning the proposed establishment of a joint venture company to provide tower crane financing in China. The registered capital of the joint venture company will be 40% owned by the company and 60% owned by IFS.
IFS, a company listed on the main board of the Singapore Stock Exchange (stock code: I49), is mainly engaged in providing commercial financial services, including hire purchase, leasing, factoring, loans, government funding schemes and trade financing.
The Directors are of the view that the signing of a memorandum of understanding on the proposed establishment of a joint venture company will enable the Group to expand the financial leasing market for tower cranes in China. The Directors are of the view that the conclusion of the MOU is in the overall interest of the Company and its shareholders as the proposed transaction under the MOU, once completed, will enable the Group to strengthen its tower crane financial leasing business to broaden its revenue sources. The Directors also believe that by leveraging IFS's expertise in financial leasing, the partnership with IFS will advance the Group's existing service portfolio and provide new growth opportunities for the Group in the future, as well as further strengthen the Group's position in the tower crane service market.