Accsoft shares up on China e-commerce plans

PETALING JAYA: Shares of Accsoft Technology Bhd, formerly known as Oriented Media Group Bhd, rose half a sen yesterday on the firm’s plan to explore the China e-commerce market for shoe products.

The stock closed at 30.5 sen, with some 3.88 million shares changing hands.

On Monday, Accsoft said its indirect wholly-owned subsidiary Fujian Accsoft Technology Development Co Ltd had entered into a cooperation framework agreement with China-listed NanJi E-Commerce Co Ltd (NECL), Nanji E-Commerce (Shanghai) Co Ltd (NESCL) and Liu Shi Miao, to collaborate in exploring the China e-commerce market for shoe products. A new company will be set up to produce not less than 5 million pairs of shoes until Dec 31, 2017.

NECL is involved in the e-commerce business being a one-stop service, one-stop supply chain services and service platform provider, on top of consultancy services, among others.

NESCL is a wholly owned subsidiary of NECL. Both NECL and NESCL own the exclusive rights for the CARTELO and Nan Ji Ren brands of shoes in China. The period for the exclusive rights will begin from the day the new company is incorporated until Nov 1, 2019.

The cooperation agreement will enable all parties to explore the Chinese market together and increase business competitiveness in e-commerce for shoe products. This is in line with Accsoft’s intention to increase its market presence in e-commerce related activities in China.

The agreements are not expected to have material effect on the earnings, net assets and gearing of Accsoft for the current financial year ending Dec 31. However, it expects positive contribution from the operation, promotion and marketing of the e-commerce services on its future earnings.