On the 25th of October 2023, Careplus Group Bhd was granted the mandate and approval for a strategic partnership with GoAuto Group Sdn Bhd, referred to as “Go Auto” henceforth. During the shareholder meeting, several crucial decisions were approved. Firstly, Careplus Group Bhd is set to diversify its existing business by venturing into the electric vehicle (“EV”) sector. This marks a significant expansion of their business operations.
Furthermore, Careplus Group Bhd is forging a joint venture with Go Auto to import electric vehicles under the renowned Neta brand. This collaboration involves the acquisition of a 30% stake in Intro Synergy Sdn Bhd (“ISSB”), a wholly owned subsidiary of Go Auto, through a share swap.
In another exciting development, Careplus Group Bhd is joining hands with Go Auto to establish a state-of-the-art manufacturing and assembly hub for new energy vehicles. This new endeavor, named NexV Manufacturing Sdn Bhd (“NMSB”), will be owned in a 51% to 49% partnership with Go Auto. NMSB’s first phase will have an impressive assembling capacity of 30,000 units per year. Out of these, Neta is committed to acquiring 10,000 units, while the remaining slots will be open to other interested parties. Careplus Group Bhd has already received approval from the Ministry of Investment, Trade, and Industry (MITI) for its Manufacturing License, subject to standard conditions ensuring compliance with environmental and local authority regulations.
Simultaneously, NexV Synergy Sdn Bhd (“NSSB”) will play a pivotal role in this partnership. NSSB is set to undertake the exclusive EV Dealership for EVs manufactured under the “NETA” brand in the entire territory of Negeri Sembilan, further expanding to include other brands of passenger and commercial vehicles. Moreover, they will manage and operate Careplus Mall as part of their activities.
Careplus Group Bhd envisions transforming Careplus Mall into a thriving auto city, encompassing everything related to automobiles and new energy. The flagship NETA showroom at Careplus Mall will be equipped with high-speed charging stations for EVs, a project undertaken by Gentari, a unit under Petronas. The mall will also feature a diverse array of food and beverage outlets, badminton courts, a TVET training academy, and various other businesses and activities to complement the automotive side of operations.
On the 4th of September 2023, Careplus Group Bhd entered into the Joint Venture Shareholder Agreement (JVSA 2) and the Share Subscription Agreement (SSA) related to the Proposed ISSB JV. This agreement involves the acquisition of a 30% equity stake in ISSB through a share swap. The primary objective of ISSB is to handle the exclusive distribution of certain models of NETA EV in Malaysia.
The NSSB Joint Venture between Careplus Group Bhd and Go Auto concerning the manufacturing and assembly of new energy vehicles will be executed by Careplus Properties Sdn Bhd (“CPP”), a wholly-owned subsidiary of Careplus Group Bhd. This venture will be operated by a special purpose vehicle, NMSB.
In an exciting development, on the 24th of October 2023, the Ministry of Investment, Trade, and Industry Malaysia granted NMSB, a subsidiary of Careplus Group Bhd, a Manufacturing License to undertake the Manufacture and Assembly of Energy Efficient Vehicles (EEV) for Passenger Vehicles, Commercial Vehicles, and Electrical Motorcycles. This license is subject to various conditions, including adherence to requirements set by the Department of Environment and local authorities.
Careplus Group Bhd’s ambitious manufacturing plans are slated to commence by the end of 2024, beginning with the assembly of up to 10,000 NETA cars, taking full advantage of the facility’s annual capacity of 30,000 units. As other brands express interest in collaborating for Completely Knocked Down (“CKD”) manufacturing, Careplus Group Bhd intends to invite them to join the venture. The capital expenditure (capex) required for the two buildings is estimated at approximately RM230 million. The company anticipates funding a substantial portion, ranging from RM60 million to RM70 million, internally, with the remaining balance to be secured through bank borrowings.
