Synertone Communication Corporation (HKG:01613) announces that it has entered into a binding agreement to establish a joint venture for the operation of a virtual asset trading platform (VATP) in Hong Kong.

The collaboration in the joint venture, Jade Power Lab Technology Group Limited, 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, 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.

Synertone Communication Corporation 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 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.