IN THE PRESS

August 23, 2010 19:49 PM

Hai-O Signs Two MoUs With UTAR To Undertake R&D

KUALA LUMPUR, Aug 23 (Bernama) -- Multi-level marketing company, Hai-O Enterprise Bhd which is synonymous with Chinese medicinal products, will undertake collaborative research and later commercialisation of related products with Universiti Tunku Abdul Rahman (UTAR) under a memorandum of understanding (MoU).

Under the agreement, both parties would also venture together to further undertake research into the theory and application of a special heat-conducting material proprietary to the Hai-O Group.

UTAR President and Chief Executive Officer Prof Datuk Dr Chuah Hean Teik said both parties would commercialise viable products from the research.

"Success in this collaboration will enhance the reputation of both partners and most importantly, the profitability of the Hai-O Group," he said at the signing of two memorandum of understanding between Hai-O Energy (M) Sdn Bhd and UTAR, witnessed by Deputy Minister for Higher Education Dr Hu Kok Chung here Monday.

The other MoU would facilitate the collaboration in the area of providing intership and jobs for UTAR students with the Hai-O group.

"The memorandum would be a "win-win" situation for the Hai-O group as it will secure a ready source of qualified and well-trained employees," said Dr Chuah.

Meanwhile, Hai-O Group Managing Director Tan Kai Hee said the collaboration would bear fruition by year-end or early next year.

"With their knowledge and our expertise in the distribution field, the partnership would bear good results," he told Bernama after the MoU signing ceremony.

Tan also said once the products, emerging from the research and development process, was commercialised, it would benefit the company in terms of revenue and, in turn, shareholders would reap gains through better dividends.

Hai-O Chairman Tan Sri Osman S. Cassim said: "Previously, we signed an agreement with the China-based Institute of Engineering Termophysics, and now, we are so grateful to be working together with the local institute.

"By teaming up with professors from UTAR, our high intensify heat transfer technology can play a significant role in energy savings and heat technology.

"Hai-O's high efficiency heat pipe technology is making way out of the laboratory into the market."

Last year, Hai-O recorded a 27 per cent increase in pre-tax profit to RM95.55 million while revenue rose 17 per cent to RM511 million.

-- BERNAMA

Source: http://www.bernama.com/bernama/v5/newsbusiness.php?id=523362