Quantum Solutions Co., Ltd. establishes joint venture with FOMM Company Limited

Aug 23, 2021 16:12 JST

Source: Quantum Solutions Co., Ltd

HONG KONG, Aug 23, 2021 - (ACN Newswire) - According to the announcement dated 12 July 2021 in respect of "Notice of Capital and Business Alliance with FOMM Limited", Quantum Solutions (hereinafter referred to as the "Company") has agreed to form a capital and business alliance (hereinafter referred to as the "Capital and Business Alliance") with FOMM Limited (hereinafter referred to as "FOMM") and a joint venture agreement was signed today.

1. Purpose of setting up the joint venture

Pursuant to the Capital and Business Alliance, the Group has agreed to invest in FOMM. After discussion, the two parties agreed to set up a joint venture in Hong Kong, namely Quantum FOMM Limited (hereinafter referred to as the "New Company"), to manufacture and distribute electric vehicles in China, in other words to serve the two companies as a vehicle to tap the China market. Asia TeleTech Investment Limited (hereinafter referred to as "ATT"), a wholly-owned subsidiary of the Company, will contribute capital direct to the New Company whereas FOMM will contribute capital as well.

2. Purpose and strategy of the Capital and Business Alliance

(1) Short term plan (12 months)
The New Company plans to start mass production in China as soon as possible after making minor adjustments to the FOMM's existing vehicle model - "FOMM ONE". The two parties expect production costs to be significantly reduced by leveraging the highly efficient supply chain in China.

With production cost lowered, selling price will follow, and correspondingly significant increase in sales volume is projected. Therefore, FOMM and the New Company can expect to see sales volume climb markedly within a short period of time (within 12 months).

(2) Medium-term plan (12-24 months)
To launch a new type of EV that allows people-vehicle interaction via the Internet, it will first be launched in the China market, mainly in small cities and rural areas with large populations in the country.

As an independent Japanese mini-electric vehicle brand, FOMM is going to target small towns and rural areas of China with an aggregate population of approximately 900 million. The major product of FOMM is mini electric vehicle, which is suitable for use in small towns and rural areas of China, where the population is large while the roads are narrow for conventional vehicles to navigate. Therefore, mini electric vehicles should have huge demand in those towns and areas.

3. Joint Venture Companies Information

(1) Company Name: Quantum FOMM Limited
(2) Registered address: ROOM 701-2 EVERBRIGHT CENTRE, 108 GLOUCESTER ROAD, WANCHAI, HONG KONG
(3) Representative: Director TUNG, CHUN FAI
(4) Business nature: Manufacturing of electric vehicles
(5) Capital: HKD30,000 (422,000 yen)
(6) Establishment date: 5 August, 2021
(7) Financial period: February
(8) Net Assets: HKD30,000 (422,000 yen)
(9) Total Assets: HKD30,000 (422,000 yen)
(10) Investment ratio: ATT (Company 100%subsidiary): 66.7%, FOMM:33.3%

4. The financial results of joint venture

The New Company will set up a subsidiary in China (tentatively in Shanghai) to produce and distribute electric vehicles. Related financial results will be disclosed once they are available.

5. Overview of business partners

(1) Company Name: FOMM Company Limited
(2) Registered address: Kanagawa Prefecture, Kawasaki City, Kawasaki City, New Kawasaki 7-7
(3) Representative: Representative Director Tsurumi Hijio
(4) Business nature: Planning, development, manufacturing & sales of EV
(5) Capital: 3,505 million yen
(6) Establishment date: 4 February, 2013
(7)Major shareholders and shareholding ratio: Banpu Next Co., Ltd. (21.5%)
(8)Relationship between the listed company
Capital relationship NA
Interpersonal NA
Business relationship NA
Relevant parties NA
(9) The Company's consolidated operating performance and financial status during the last three years will not be disclosed in accordance with the requirements of the other party.

6. Overview of ATT

(1) Company Name: Asia TeleTech Investment Limited
(2) Registered address: Flat B, 10/F, Tai Wo Mansion, 8 Tai Wo Street, Wan Chai, Hong Kong
(3) Representative: Director TUNG, CHUN FAI
(4) Business nature: Combination of 5G & AI technology related business
(5) Capital: HKD 4,000,000 (56,744,000 yen)
(6) Establishment date: 22 January, 2018
(7) Major shareholders and shareholding ratio: FASTEPS SINGAPORE PTE LTD (100% subsidiary of the Company) 100%
(8) Relationship between the listed company
Capital relationship: FASTEPS SINGAPORE PTE LTD (100% subsidiary of the company) s100%
Interpersonal: Director TUNG, Chun Fai
Business relationship: There are 305 million yen in money obligatory right and 9million yen is paid as servicing fee.
Relevant parties: The company is a 100% subsidiary of the Company (indirectly owned)
(9) The Company's consolidated operating performance and financial status in the last three years

Final accounts December 2018 December 2019 December 2020
Consolidated net assets 133million yen 172 million yen 153 million yen
Consolidated total assets 34million yen 36 million yen 353 million yen
1 share of equivalent combined net assets - - -
Consolidated sales 0 5 million yen 22 million yen
Consolidated business loss 188million yen 40 million yen 30 million yen
Consolidated often loss 188million yen 42 million yen 27 million yen
Attributable to shareholders of the parent company Net loss for the period 189million yen 42 million yen 40 million yen

7. Schedule

(1) Date of signature: 23 August, 2021
(2) Date of Establishment: 5 August, 2021#
(3) Date of commencing business : 1 October, 2021 (pending)
# It is expected that the New Company will be established with 100% of ATT's shares. After signing a joint venture contract, FOMM will contribute capital to the new company after which the joint venture will be deemed set up.

8. Future valuation

The impact of this performance is being evaluated and all information will be disclosed as soon as possible after the detailed assessment.

Quantum Solutions Co.,Ltd. Company Summary
Company name: Quantum Solutions Co.,Ltd.
(Second section of the Tokyo Stock Exchange Stock code: 2338)
Address: 102-0073. Kudan VIGAS Bldg. 3F, 1-10-9 Kudan Kita, Chiyoda-ku, Tokyo, Japan
Representative: SHAO YUN, Chairman of the board
Capital: 2,559 million yen
Businesses: Content development and distribution Software development
Company URL: https://www.quantum-s.co.jp/

For media enquiries:
Quantum Solutions Co.,Ltd.
Sylvia Chan
Email: info@quantum-s.co.jp

Source: Quantum Solutions Co., Ltd
Sectors: Daily Finance, Energy, Alternatives, Daily News, Alternative Energy, EVs, Transportation