XPED Ltd (ASX: XPE) has been in the news lately with regard to its efforts on expansion front. The following points provide a summary in this direction:
Establishing a sales and manufacturing channel in China: XPE has joined hands with Complex Semiconductor to form a new joint venture in China and Hong Kong. Accordingly, XPE was put in a trading halt state session on September 20, 2016 and has resumed trading after the announcement. The group made this Joint Venture to develop a sales and manufacturing channel which would drive the ADRC growth via Xped app subscriber acquisition, device data capture, analytics and product distribution in China and abroad. The joint venture would form new entities in Hong Kong and China which would oversee operations in mainland China. They nominated Dr Wenjun Sheng from Xped, who has already built solid relationship with Complex Semiconductor to look after these new operations. The new entities are expected to acquire and accumulate subscribers while conducting activities like selling and distributing/ marketing products designated by Complex Semiconductor or Xped, as covered by the agreement. Complex Semiconductor would develop, manufacture and distribute a range of consumer electronic, and automotive electronic accessories via its Shenzhen facility. With this agreement, Complex Semiconductor would leverage Xped’s ADRC technology, while Xped would be able to leverage the access to China. This is indicative of a win-win situation for the firms.
Efforts to boost presence: Recently, Xped APP (new device browser app) has been released to Google Play™ Store for Android devices and the verification is pending to release on Apple App Store. This app is available in English while the group is also planning to launch this app in Chinese language, indicating their efforts to boost their presence in China. On the other side, XPE is planning to make various agreements with other firms in China and abroad. The group is considering to partner with Telink Semiconductor to strengthen their presence and appointed Martin Despain. Martin is reported to be visiting Telink Semiconductor as well as JCT supplier manufacturing facilities in Shenzhen and other major fund managers in Asia to pursue opportunities.
Xped App (Source: Company Reports)
Meanwhile, XPE is reported to have recently showcased multiple IoT solutions at a Microsoft Partner Conference in Singapore. XPE stock has fallen over 12.9% in the last five days after rallying over 42.1% in the last six months (as of September 23 2016).