KUALA LUMPUR: GUH Holdings Bhd and its Chinese partner Shenzhen Xixin Electronic Technology Co, Ltd have mutually agreed to terminate a plan to develop a lithium battery assembly plant in Malaysia.
The company in a filing with Bursa Malaysia Securities said it came to the decision after further assessment of the current local market demand for lithium battery products.
In November last year, GUH, through its wholly owned subsidiary GUH Capital Sdn Bhd, signed a cooperation agreement with Xixin, leading to the formation of a JV company called GUH Power Sdn Bhd.
"No battery assembly plant has been established, no equipment has been purchased, and no shares in the JV have been transferred to Xixin pursuant to the cooperation agreement," it said in a filing with Bursa Malaysia today.
With the termination of the agreement, the grant of license for intellectual property from Shenzhen Shiwei Electronic Technology Co Ltd dated November 8, 2023 to GUH Power shall be terminated with immediate effect.
According to GUH, the two original copies of the grant are returned to Xixin immediately."The termination does not have any financial impact on the company and its subsidiaries," it added.
GUH Holdings' share price was up 1.2 per cent to 41.5 sen a share, giving it a market capitalisation of RM117.1 million.
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