The Board announced that on 7 September 2022, the Minth Group Limited and Magna entered into the agreement for the formation of the JV Company. The Parties entered into the Agreement on 7 September 2022 to form the JV Company in Anhui, China, to design, produce and sell automobile parts and to provide technological services to OEMs in Anhui Province. The JV Parties shall procure that the required approval and filing with the competent government authorities, including but not limited to the antitrust authorities, are obtained and completed as soon as possible.

Subject to the obtaining of the required approvals, the joint venture is estimated to commence operations in the first quarter of 2023. The Group is principally engaged in the design, manufacture and sale of automobile parts including metal and trim products, plastic products, aluminium products and battery housings, and toolings and moulds, and supplies to many world-renowned international automakers. The Group has been actively exploring possibilities to expand its automobile parts business.

Having considered the latest trends in the automotive industry, the Group has decided to partner with Magna to design, manufacture, and provide front and rear fascias, plastic liftgates and other exterior technologies to customers in Anhui Province. This is in line with the increasing demand through vibrant development of electric and smart vehicles, and intelligent automobile parts are quickly becoming the technology of choice for automakers and strong growth in this area is expected in the coming years.