KUALA LUMPUR (Feb 7): Teo Seng Capital Bhd’s wholly owned subsidiary Ritma Prestasi Sdn Bhd has entered into a joint venture (JV) cum shareholders agreement with Shanghai Xiashu Intelligent Technology Co Ltd to set up a JV company in Malaysia, namely Trendata Science Sdn Bhd.

Trendata Science would provide services, sales, research and development of poultry farming-related intelligent machinery, equipment and robots in Southeast Asia, Teo Seng said in a filing with Bursa Malaysia on Wednesday.

“Trendata Science will be incorporated in Malaysia as a private limited company under the Companies Act 2016, with a total issued share capital of RM10,000 comprising 10,000 ordinary shares,” Teo Seng added.

The board of Teo Seng views the JV as in the best interest of the company, and that the terms and conditions of the agreement are fair, reasonable and not detrimental to the minority shareholders.

“The agreement will not have any material effect on the net assets, earnings, gearing, shareholding structure and substantial shareholders’ shareholdings in the company for the financial year ending Dec 31, 2024,” Teo Seng added.

Under the agreement, Ritma Prestasi will hold a 65% stake in the JV company, while Shanghai Xiashu will own the remaining 35%.

According to Teo Seng, Shanghai Xiashu is mainly involved in the business of research and application of artificial intelligence and its related applications, such as designing and manufacturing intelligent equipment, big data science and its applications.

Teo Seng shares closed up four sen or 2.05% at RM1.99, with 1.7 million shares traded. The company's market capitalisation stood at RM579.02 million. The counter had risen 24.38% year-to-date and 161.84% over the past year.