INVESTOR - LOOK AT PAGE 20 - MD&A -> JOINT VENTURE The investor is Jilin Yuyang Technology Development Co., Ltd (“Jilin Yuyang”).
„Joint Venture
During the year, ZIS established a joint venture company, ZICL, in Shanghai, China with a non-arm’s length party, Jilin Yuyang Technology Development Co., Ltd (“Jilin Yuyang”). As at October 31, 2018, ZICL has received capital injection of RMB 20,000,000.00 from Jilin Yuyang. In return, Jilin Yuyang owns 6.67% interest in ZICL. In addition, ZICL signed a service agreement with Jilin Yuyang, which Jilin Yuyang’s capital contribution in ZICL and its 6.67% share of the net loss in ZICL are recorded in non-controlling interest (Note 15 of the Company’s audited annual consolidated financial statements for the year ended July 31, 2018).“
it seems that this change in ZIC (93,33% to 70%) is still in planning.
„Currently the Company is in the process of issuing 13.33% of shares of ZIC to the investor in exchange of the 12.5% royalty package provided as part of the Joint Venture Agreement. The Company is also in the process of issuing 10% of shares of ZIC to Zecotek Holdings Singapore Pte. Ltd., of which Dr. Zerrouk is a majority shareholder, pursuant to a Share Purchase Agreement in 2006. The Company structure after all the shares have been issued will be as follows.“
Look at Page 4 -MD&A