KUALA LUMPUR (April 24): Meta Bright Group Bhd said its wholly owned subsidiary FBO Land (Serendah) Sdn Bhd and Doople Tech Sdn Bhd have entered a solar supply agreement with Cherengin Hills Sdn Bhd, following its recent collaboration with Doople to form a joint venture (JV) company to bid for renewable energy (RE) projects with a Bumiputera equity requirement.

According to a bourse filing on Tuesday, the rights and obligations of Doople under the agreement dated Nov 20, 2023, have been novated to FBO Land. Subsequently, FBO Land will install, maintain and operate the solar photovoltaic system at Cherengin Hills' properties in Bentong, Pahang, for 21 years from the operational start date.

Doople is involved in, among others, the business of solar energy, electrical installation, wiring and fittings.

Meanwhile, Cherengin Hills will purchase all of the net electricity output generated by the system at the rate of 38.175 sen per kilowatt hour (kWh) throughout the term. The filing does not include any estimation of the total electricity output.

Doople, on the other hand, will receive a sum of three sen per kWh for every energy produced by the system within the term, in consideration of the novation of its rights and obligations.

Meta Bright said in a statement on Tuesday that FBO Land will capitalise on the carbon credits generated by the system, while Cherengin Hills will benefit from reduced energy costs and lower carbon footprints.

Cherengin Hills is principally involved in the business of hotels, motels and holiday camps.

"The novation of the solar supply agreement, which marks our maiden solar project in the resorts segment, represents a strategic initiative by the company to consolidate expertise and resources to ensure long-term growth and optimised operational capabilities," it said.

Meta Bright reported that its total value of completed installation projects stands at RM3.55 million, while those currently in progress are valued at around RM11.89 million.

On April 19, Meta Bright announced that it entered into a subscription and JV agreement with Doople to form a JV company, in which Doople will own a 51% stake and FBO Land will hold the remainder.

Under the agreement, FBO Land will also subscribe to one million redeemable, non-convertible preference shares (RNCPS) in the JV company at an issue price of RM1 per share.

In the JV company, FBO Land shall provide the financing — via the RM1 million from the subscription of RNCPS — and oversee general administration matters, while Doople will be responsible for all technical aspects, as well as application for relevant approvals, certification and licences for the RE projects.

For the second financial quarter ended Dec 31, 2023 (2QFY2024), the group reported a net profit of RM2.7 million, more than double the net profit of RM1.11 million in the corresponding quarter of the previous year. Quarterly revenue climbed 25% to RM9.98 million from RM7.96 million.

At the time of writing, shares of Meta Bright were unchanged at 15.5 sen, valuing the group at RM388 million.