Sersol ventures into electric scooters business - MIDA | Malaysian Investment Development Authority
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Sersol ventures into electric scooters business

Sersol ventures into electric scooters business

21 Dec 2022

ACE Market-listed Sersol Bhd is venturing into electric scooters business.

Its wholly owned unit Sersol Energy Sdn Bhd inked a three-month memorandum of understanding (MOU) on Tuesday (Dec 20) with China-based Chongqing Beidou Jiean Neo-Energy Technology Ltd (Beidou) to sell, distribute and produce electric scooters and related accessories, which include charging of the electric scooters.

Sersol Energy entered into the agreement via its joint venture companies, namely Sersol Takuni (M) Sdn Bhd, Sersol Takuni (Thailand) Co Ltd and PT Sersol Takuni (collectively referred as ST). Beidou is a technological company specialised in providing total solutions for new energy technology and its application for various industries.

The MOU is to pave the way for ST and Beidou to collaborate with each other exclusively in Malaysia, Thailand and Indonesia, said Sersol in a Bursa Malaysia filing.

“ST will assist and facilitate Beidou in conducting and to accomplish all business activities in Malaysia, Thailand and Indonesia including but not limited to show rooms, product on-road certification and essential stocks.

“Beidou will provide the products of Beidou, including technology transfer and patent licensing when parties want to set up the manufacturing base in either Malaysia or Thailand,” it added.

Sersol is principally involved in the coatings business relating to buildings, furniture, electrical and electronic products.

It has been a loss-making company since the third quarter ended Sept 30, 2021 (3QFY2021).

For 3QFY2022, its net loss widened to RM542,000 versus RM87,000 a year earlier mainly due to higher raw material costs and expense incurred on corporate exercise. This was despite quarterly revenue increasing to RM5.56 million from RM3.3 million amid higher demand for its products.

At Wednesday’s noon break, Sersol slipped half a sen or 2.56% to 19 sen. At the current price, it was valued at RM113.02 million.

Source : The Edge Markets