Auto parts maker EP Manufacturing ventures into EV business
08 Mar 2022
Auto parts maker EP Manufacturing Bhd (EPMB) is venturing into the manufacturing and distribution of two-wheeled electric vehicles (EVs) for Malaysia and other Southeast Asian markets.
The group on Tuesday (March 8) signed an agreement with CIS Pride Silver Rock Fund (CIS) and Sharkgulf Technologies Group Ltd to undertake the business, according to its stock exchange filing.
CIS, incorporated in the Cayman Islands, is an investment fund managed by Silver Rock Capital Ltd, Realchamp Asset Management Ltd and The Pride Group Ltd. It is the main funder for the new venture.
Sharkgulf is a China-based company that manufactures the “Blueshark” brand of two-wheeled EVs.
In a separate statement, EPMB said it will establish a manufacturing facility and a sales and distribution centre in Malaysia for the Blueshark brand of two-wheeled EVs. The group will also set up a research and development (R&D) centre that will provide technical expertise and resources to Sharkgulf.
The R&D sharing between EPMB and Sharkgulf is about keeping pace with rapidly changing developments in the Internet of Things and improving the value chain, said EPMB executive chairman Hamidon Abdullah.
“At the same time, it would help us address international cost tables. At EPMB, we acknowledge that the world is changing and we must evolve in tandem with the rapid change to stay relevant,” he added.
The group cited a ResearchAndMarkets.com study that said the electric two-wheeler market is expected to reach US$367.37 billion by 2026.
For the year ended Dec 31, 2021, EPMB’s net loss narrowed by 45% year-on-year to RM8.2 million, on revenue of RM345.4 million (from RM408.9 million previously), mainly due to the disruption of automotive manufacturing production caused by the floods.
EPMB’s share price rose two sen or 1.69% to RM1.20 on Tuesday, giving it a market capitalisation of RM237.07 million. The stock has risen 224% in the past year from 37 sen.
Source: The Edge Markets