KUALA LUMPUR (July 24): Building and security management systems provider Metronic Global Bhd (KL:MTRONIC) is ending its joint venture (JV) with Zhuhai SingYes New Materials Technology Co Ltd (Singyes), a Chinese firm involved in green building technology and renewable energy. The JV was expected to develop and market smart city solutions across the country.

In a filing with Bursa Malaysia on Thursday, Metronic said its wholly owned subsidiary Metronic Engineering Sdn Bhd (MESB) had on Thursday issued a notice of termination to Singyes, ending the JV agreement signed in August 2019. Under the original agreement, MESB held an 80% stake in the JV company, with Singyes owning the remaining 20%.

The decision to exit the partnership was attributed to several factors, including the lack of significant progress in developing smart city solutions or any working prototypes, as well as a shortage of relevant expertise. Metronic also cited its intention to streamline operations and refocus on core engineering activities, moving away from previously initiated untested or unprofitable diversifications.

It added that the termination will not have any material effect on the company's net assets per share, gearing and earnings per share for the financial year ending Oct 31, 2025.

The termination does not require shareholder or regulatory approvals.

The JV company had originally been set up to explore and develop various smart city technologies in Malaysia, including smart land transportation systems, solar panel systems, indoor and outdoor smart digital signage, smart film and glass, and camera systems. It also aimed to establish an advanced data centre for big data collection and promote cooperation in infrastructure, green materials, technical knowledge sharing, planning, implementation, support, and maintenance.

Metronic shares closed up 0.5 sen or 50% at 1.5 sen on Thursday, giving it a market capitalisation of RM17.2 million. The stock has fallen 25% so far this year.