RELIANCE GLO HL (00723) announced that on September 16, 2025, the company's wholly-owned subsidiary Reliance Global Capital entered into a joint venture agreement with AZIO, Hong Kong Innovation Qi, and Zhao Lian to establish a joint venture company for the development and operation of forestry robot-related business.
Under the terms of the joint venture agreement, the total capital commitment for the joint venture company will be HK$150 million, with Reliance Global Capital, AZIO, Hong Kong Innovation Qi, and Zhao Lian contributing HK$60 million, HK$60 million, HK$13.5 million, and HK$16.5 million respectively. Upon establishment, the joint venture will be held 40% by Reliance Global Capital, 40% by AZIO, 9% by Hong Kong Innovation Qi, and 11% by Zhao Lian. The joint venture company will not become a subsidiary of the company, and its financial results will not be consolidated into the group's financial statements.
With technological advancement, robots are playing an increasingly important role in the forestry industry. For example, drones are commonly used for data collection, monitoring tree inventory, tracking forest regeneration, and monitoring wildfires. On the other hand, the development of unmanned ground vehicles (such as automated logging machines) will play a significant role in the future forestry industry.
Leveraging AZIO's expertise in information technology and artificial intelligence, combined with the group's experience in the forestry industry, the joint venture company will primarily engage in the development and operation of forestry robot-related business.
The board believes that establishing the joint venture will enable the group to capitalize on opportunities in the emerging forestry robotics field and complement the group's timber supply chain business. The directors consider that the terms of the joint venture agreement are fair and reasonable, the transactions thereunder are conducted on normal commercial terms, and are in the interests of the company and its shareholders as a whole.