Xped Signs Joint Venture Agreement for China Expansion
Melbourne, Sep 20, 2016 AEST (ABN Newswire) - Xped Limited (
ASX:XPE) ("Xped" or "the Company") wishes to advise that it has executed a Joint Venture agreement ("JV") with "Complex Semiconductor Co Ltd" ("Complex") to jointly develop a sales and manufacturing channel to allow ADRC growth through Xped app subscriber acquisition, device data capture, analytics and product distribution in China and abroad.
Highlights
- Xped signs JV agreement for China expansion
- Xped & Complex Semiconductor to establish new JV entities in China & Hong Kong
- Dr Wenjun Sheng to be appointed nominee to China based company board to oversee operations
- Company owned manufacturing facilities in Shenzhen China ship annual volumes exceeding 100 million units
- Product sales & marketing opportunities together with device data capture and analytics
- Acquisition of China based Xped app subscribers for potential recurring revenue streams based on product registration service and product distribution to existing wholesale customer base
Under the JV, Xped and Complex will establish newly incorporated entities in Hong Kong and China that will oversee operations in mainland China. Both parties will nominate a Director to the board of these new entities and together jointly manage the operation.
Dr Wenjun Sheng has been nominated from Xped as its appointed nominee to oversee this new operation. Dr Sheng has a strong working relationship with Complex Semiconductor (through their wholly owned manufacturing subsidiary) who currently purchase and utilise Telink Bluetooth enabled chipsets within their manufacturing operation.
The parties' current intentions with respect to the JV is that:
(a) new entities will be established in China with equal ownership primarily to:
1) acquire and accumulate subscribers;
2) advertise and market subscriber based big data or similar data analytics services or products;
3) sell, distribute or market products designated by Complex Semiconductors as covered by this agreement that will incorporate ADRC Technology and utilise Telink Semiconductor chip sets;
4) sell, distribute or market products that Xped designates as covered by this agreement into China; and,
5) leverage or otherwise utilise Complex's wholesale customer base and contacts, and Shenzhen based manufacturing facilities.
Complex Semiconductor through its Shenzhen based facility develops, manufactures and distributes a range of consumer electronic, and automotive electronic accessories.
This JV agreement provides Complex Semiconductor with access to Xped's ADRC technology, and allows Xped to access China, one of the largest consumer and volume markets in the world.
The JV agreement is non-exclusive between Xped and Complex Semiconductor. The Company expects to have other similar agreements in place with other parties in China and abroad, utilising the "joint marketing" approach with Telink Semiconductor that has generated this and other opportunities.
The board would also like to welcome Martin Despain, who recently commenced employment with Xped. Martin will be visiting Telink Semiconductor head office in Shanghai, JCT supplier manufacturing facilities in Shenzhen and key fund managers in Asia over the coming week.
ABOUT COMPLEX SEMICONDUCTOR
Complex Semiconductor has a strong sales network, in the Chinese market and has hundreds of distributors in core brand stores, with an international sales office in Hong Kong allowing it to generate interest from abroad.
Complex through its own products brands and manufacturing facilities in Shenzhen have been exporters in more than 50 countries and regions around over the world.
About XPED Ltd
XPED Ltd (ASX:XPE) is an Australian Internet of Things (“IoT”) technology business. Xped has developed revolutionary and patent-protected technology that allows any consumer, regardless of their technical capability, to connect, monitor and control devices and appliances found in our everyday environment. Xped provides technology solutions for Smart Home, Smart Building, and Healthcare.
At Xped, we’re Making Technology Easy Again(TM)
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