BGMC International (HKEX: 01693) has announced a strategic move into Malaysia's renewable energy sector.

On July 3, 2026, the company's indirect subsidiary, Golden Sun Solar Energy Sdn. Bhd. (GSSE), entered into a term sheet with reNIKOLA Sdn. Bhd. (RSB) and reNIKOLA Holdings Sdn. Bhd. (RHSB), collectively known as the reNIKOLA Group.

The agreement outlines plans to establish two joint venture project companies with an initial capital of 100,000 Malaysian Ringgit.

Funding for the ventures will be provided on an equal basis by BGMC's group and the reNIKOLA Group to jointly develop proposed renewable energy projects in Malaysia.

The planned collaboration is expected to supply long-term renewable power to an existing 300-megawatt data center in Johor, Malaysia, under the country's Corporate Renewable Energy Supply Scheme (CRESS).

The data center supported by this development is owned and operated by a Singapore-headquartered data center operator established in 2022.

This operator is a rapidly expanding multinational platform focused on building and operating large-scale, next-generation campuses across Asia.

It collaborates with top-tier hyperscale clients to meet the surging demand for artificial intelligence (AI) computing and cloud infrastructure.

BGMC's group and the reNIKOLA Group will be responsible for managing the technical aspects of the proposed joint development and overseeing all project development matters.

These responsibilities include issues related to land acquisition, land use approvals, and liaising with relevant land authorities.

The project companies are anticipated to enter into bilateral energy supply contracts with the data center operator.

Pursuant to the term sheet, GSSE, RSB, and RHSB intend to collaborate on developing, financing, and operating two large-scale solar photovoltaic facilities in Malaysia.

Each facility is designed with a maximum export capacity of 300 megawatts AC, equipped with battery energy storage systems (BESS), and will supply power to the data center operator under the CRESS framework.

Two project companies, RE Kemaman (CRESS) Sdn. Bhd. and RE Sebapin Sdn. Bhd., have been incorporated to undertake these projects.

The agreed equity structure allocates a 50% stake to the reNIKOLA Group and a 50% stake to GSSE.

The term sheet is legally binding and establishes the preliminary framework for the proposed cooperation.

GSSE, RSB, and RHSB are expected to subsequently execute a definitive shareholders' agreement to govern the management of the project companies, board composition, and future funding commitments.

The board of directors believes the proposed joint development represents a strategic opportunity for the group to expand its footprint in Malaysia's renewable energy sector.

This partnership aligns with the group's commitment to sustainable energy solutions and is expected to contribute positively to its long-term growth.