JAKARTA – PT Chitose International Tbk (CINT) just signed a joint venture (JV) agreement with C-Eng Co.Ltd based in Japan. The joint venture company will give a positive impact to Chitose since there are several things to be developed such as new technology in product component, market expansion to ASEAN, Oceania and Japan. Chitose also expects to earn more progressive profit with the new business.
The authorized capital for the new JV is as much as Rp 2.5 billion. Chitose has 70% stake in the new company and the remaining 30% is owned by C-Eng Co Ltd. For the first year, the new company targets its revenue to reach Rp 7.8 billion and grow 10% yearly.
For the first half of 2017, Chitose recorded its net revenue as much as Rp 144 billion or flat compared to the same period last year. The company managed to press its cost of goods sold and other expenses which resulted in the higher profit. In this period, the net profit is recorded at Rp 9.91 billion or up from the same period last year of Rp 3.98 billion. (LM)