Synertone enters into a joint venture for the operation and licensing of a virtual asset trading platform in Hong Kong

HONG KONG, June 15, 2023 /PRNewswire/ -- Synertone Communication Corporation (stock code: 1613) ("Synertone" or "Group") is pleased to announce that it has entered into binding documentation to establish a joint venture for the operation and licensing of a virtual asset trading platform ("VATP") in Hong Kong. The collaboration in the joint venture, Jade Power Lab Technology Group Limited ("Jade Power"), follows Synertone's decision to expand its business operations to include virtual asset-related activities, aiming to seize the opportunities in Hong Kong's virtual asset market and create new sources of income for the Group.

Synertone will, through its direct wholly-owned subsidiary, hold 51% of the shares in Jade Power. Blockchain technology services for the establishment and continued operation and maintenance of the VATP will be provided by a technology company wholly owned by one of the parties to the joint venture, JPEX Holdings Limited ("JPEX"), leveraging JPEX's technology offering and market experience in operating virtual asset exchanges.

The VATP will be operated by a direct wholly-owned subsidiary of Jade Power (the "Operator"), which has been operating a VATP in Hong Kong and has established a meaningful and substantial presence in Hong Kong since May 2023. In accordance with the new VATP licensing regime that commenced on 1 June 2023, the Operator is permitted to continue to operate the VATP in Hong Kong. The Operator intends to apply to the Hong Kong Securities and Futures Commission for the requisite licenses to operate the VATP in Hong Kong and is working towards compliance with the requirements that are applicable to licensed VATPs during the licensing process.  

The Hong Kong Government's latest policy initiative is to develop Hong Kong into a leading global hub for web3 and virtual asset-related activities. Combined with recent changes to the regulatory landscape in Hong Kong which provide investors with clear regulated avenues for access to virtual assets, the Group and the other parties to joint venture believe that the adoption of virtual assets in Hong Kong is at an inflection point and expects market demand for virtual asset-related products and services in Hong Kong to increase significantly over coming years from a diversified investor base. 

Synertone Communication Corporation (the "Company") was incorporated in the Cayman Islands on 11 October 2006 as an exempted company with limited liability, with its shares listed on the Main Board of The Stock Exchange of Hong Kong Limited on 18 April 2012.

The principal activities of the Company and its subsidiaries (the "Group") are principally engaged in (i) design, development and sales of automation control systems, (ii) design, research and development, manufacture and sales of intelligent building system including video intercom and surveillance system for buildings, and (iii) the rental and maintenance services in relation to computer equipment and machines and other related services.

The Group is a leading provider of building and community intelligence solution products and integrated communication and automation control systems. The Group's products are widely used in high-rise buildings, high-end residential complexes and smart communities by providing fully digital intelligent control systems for human's modern life. As the world's leading provider of automation control systems, the Group possesses leading standard of technical know-how and commercial competitiveness with which the products are extensively applied in diversified industries including electrical power, petrochemical, public utilities, mining, natural gas and food and beverage industries. The Group has its operation base in Jiaxing City, Zhejiang province of China and has established offices and sales network across major cities in China, including Beijing, Shanghai, Changsha and Hangzhou. The Group has also been engaged in data centre business in Hong Kong since 2021 which involves the rental and maintenance services for computer equipment and service robots located in Hong Kong.

SOURCE Synertone Communication Corporation