This article first appeared in The Edge Financial Daily on March 21, 2018 - March 27, 2018

KUALA LUMPUR: China-based XingHe Holdings Bhd has entered into a joint-venture (JV) agreement with My Ocean Venture Sdn Bhd (MYO) and VC Marine Sdn Bhd (VCM) to venture into the seafood processing business.

In a filing with Bursa Malaysia yesterday, the company said its 90%-owned subsidiary XingHe-Jefi Sdn Bhd and its JV partners will establish a company, Sea Tuna Industry, to undertake the business of tuna and other seafood processing and trading.

Under the JV agreement, XingHe-Jefi will hold 52% of the shares, while MYO and VCM will hold 35% and 13% respectively in Sea Tuna Industry.

“The proposed JV is intended to unlock alternate business opportunities and enable XingHe group to expand its business by having a new Malaysia-based business in tuna and seafood processing and trading to supplement its existing China-based production — blending and marketing peanut oil and other edible vegetable oils — and provide an additional income stream for XingHe group,” it said.

MYO, a private limited investment holding company, is 50%-owned by Leong Keng Wohand, who has interests in companies supplying lubricants and providing logistics services.

Yu Pao-Chu — a substantial shareholder and president of Thai Ocean Venture Co Ltd — holds the remaining shares in MYO.

VCM, an investment holding company, is 99.99% owned by Datuk Gooi Kok Song, who has interests in companies involved in supplying tyres and lubricants.

XingHe-Jefi will make a capital contribution of RM7.5 million of the agreed issued share capital of RM14.5 million, which will be funded by internally-generated funds.

XingHe-Jefi’s obligations include providing a suitable location to build a processing plant and securing the necessary licences and approvals.

The JV partners will provide the technical know-how and expertise for the construction of the plant, procure a consistent supply of input for the plant, manage and offtake of finished products from the processing plant to customers and procure all necessary food safety certifications. The proposed JV is expected to be completed in the second quarter of 2018.