Datasonic Group Berhad Annual Report 2020

3.6 Corporate Developments 3.6.1 Expansion of Product Offerings for e-Health On 16 August 2019, the Company entered into a Share Sale Agreement for the acquisition of 2 ordinary shares, representing 100%of the equity interest inMediCloudMalaysia SdnBhd (“MMSB”) for a total cash consideration of RM2. Theacquisitionof100%sharesofMMSBwascompletedon12September2019.Theintendedprincipalactivity of MMSB is provision of cloud solutions for medical facilities. 3.6.2 Business Development in the Philippines On28August2019,theCompanyenteredintoaJointVenture(“JV”)Agreementwiththree(3)Filipinosforthe purposeofestablishingaJVCompanytoparticipateinthepublicbiddingtobeconductedbytheBidsandAward committeeoftheGovernmentofPhilippinesfortheworksof,orinrespectofthePhilippinesNationalIdentity SystemandPhilippinesSecuritySurveillanceandMonitoringSolutions,whichmayincludeothersolutionand services relevant to these Projects/Contracts. Subsequently, a JV Company known as Datasonic Business Technologies Philippines Inc (“DBTP”) was established in the Philippines on 29 August 2019, pursuant to the JV Agreement dated 28 August 2019. The intended principal activities of DBTP are system integration, registration, data encoding, data storage, printing and all services and manufacturing of secured ID cards and chips. 3.6.3 Business Development in the Republic of Nigeria On17September2019,theCompanyenteredintoaJointVentureAgreementwithChromeGrouptoestablish a JV Company known as “Datasonic Nigeria Limited” to: i. ExploreandcarryonbusinessinInformationCommunicationsTechnology(ICT)inNigeria,whichinclude but not restricted to Data Centre, Data Mining, Cloud Computing, Artificial Intelligence, Security Printing, Multi-application Secure Identity, e-Passport, e-Driving License, e-Health Solutions, e-Commerce, e-Payment, Fintech, Integrated Security and Surveillance Systems, Multimodal Facial Recognition Solutions and Border Control System; ii. Establish plants and factories in Nigeria for the purposes of delivery of these services; and iii. Explore any other business opportunities the parties may mutually agree to explore. To-date,theJVCompany,tobeestablishedandownedbybothParties(at60%forChromeGroupand40%for Datasonic) has not been established. 3.6.4 Development of the Next Generation Biometric Applications On23October2019, theCompanyentered intoaShareholdersAgreementwithDigentCo. Ltd (“Digent”) fo the purpose of incorporating a company in Malaysia known as Datasonic Digent Sdn. Bhd. (“DDSB”), to c operate and jointly develop, introduce and exclusively market the next generation biometric applications. DDSBwas subsequently incorporated inOctober 2019and theproportionof the shareholdings heldby the Company and Digent comprises of 60% and 40% respectively. Management Discussion & Analysis (Cont’d) DATASONIC GROUP BERHAD I ANNUAL REPORT 2020 (Registration No. 200801008472 (809759-X)) 28