KUALA LUMPUR: EP Manufacturing Bhd (EPMB) has entered into a memorandum of agreement with CIS Pride Silver Rock Fund and China’s Sharkgulf Technologies Group Ltd to assemble, manufacture and distribute two-wheel electronic vehicles (EVs) in Malaysia and Southeast Asia.

       This endeavour will create a new chapter for EPMB to diversify, complementing its present business, said EPMB in a filing with Bursa Malaysia today.

       "The parties are expected to benefit from the strategic cooperation through expanding the breadth of their capabilities and leveraging their combined strengths,” it said.

       Sharkgulf is involved in the business of developing, producing and distributing two-wheel EVs.

       As part of the agreement, the company has agreed to undertake the grant of assembly, manufacturing and distribution rights, provision of technical assistance, Internet of Things (IoT) and technology as well as the grant of intellectual property rights.

       Meanwhile, CIS’ role entails the establishment of Sharkgulf’s manufacturing plant in China and/or EPMB’s manufacturing plant in Malaysia, finance leasing of the contract products as well as facilitation and management of Sharkgulf’s product supply chain.

       The agreement is not expected to have any significant effect on the earnings, net assets and gearing of EPMB for the financial year ending Dec 31, 2022. - Bernama