SINGAPORE: OEL (Holdings) Limited (OEL) has entered into a Joint Venture Agreement with Shanghai Suntec Co., Ltd. for the incorporation of a joint venture company in Singapore for the manufacturing and distribution of High-Intensity Focused Ultrasound (HIFU) machines entire end to-end industrial chain of R&D, manufacturing and installation, medical services and equipment after sales service, the HIFU-2001 High-Intensity Focused Ultrasound tumour treatment system will be launched soon.

Under the JVA, OEL and Shanghai Suntec will jointly carry out business activities in relation to production of HIFU machines and providing medical services relating to the HIFU machine such as brand establishment, intellectual property registration, equipment installation, debugging and after sales service, professional medical training, remote operation guidance, etc.

The JV Company will be registered with an initial issued and paid up capital of S$100 comprising of 100 ordinary shares. Pursuant to the JVA, the Company’s wholly owned subsidiary, AJJ Health Care Management Pte. Ltd. (AJJ) will hold 80% interest in the JV Company and the remaining 20% interest will be held by Shanghai Suntec.

The incorporation of the JV Company will be funded through internal resources and is not expected to have any material impact on the net tangible assets and earning per share of the Company for the financial year ending 31 December 2020.