The partnership promises opportunities in artificial intelligence, cloud computing and other advanced storage technologies

 

[SINGAPORE] SGX-listed IT products distributor   Serial Achieva   : XHV 0%   inked a memorandum of understanding (MOU) on Mar 16 with new shareholder UFCT Technology (UFCT), to explore opportunities in artificial intelligence (AI), cloud computing and other advanced storage technologies.

 

The partnership follows UFCT&rsquo s move earlier this month to subscribe for about 21 million new shares in Serial Achieva at S$0.22 apiece, raising about S$4.62 million for the company. 

 

Upon completion, UFCT will hold an 11.01 per cent stake in the company&rsquo s enlarged share capital. The deal is expected to close by Apr 30.

 

Under the non-binding MOU, UFCT will use its industry resources to support Serial Achieva&rsquo s business development, including jointly pursuing enterprise customers, cloud service providers, data centres and system integrators. 

 

The tie-up will also include cooperation on AI infrastructure, cloud computing, storage and intelligent computing solutions. UFCT is expected to introduce differentiated products such as storage and memory solutions to strengthen Serial Achieva&rsquo s product mix and regional competitiveness. 

 

UFCT, a Hong Kong-based electronic components distributor, holds distribution rights for semiconductor brands such as MediaTek, SK Hynix and AMD. It counts Alibaba, Tencent and ByteDance among its cloud customers. 

 

UFCT&rsquo s parent, Shannon Semiconductor, is one of China&rsquo s largest electronics components distributors by revenue, with a market capitalisation of around 73 billion yuan (S$13.4 billion). 

 

Sean Goh, chairman of Serial Achieva, said that the collaboration brings together highly complementary strengths and marks &ldquo an important step in positioning Serial Achieva within the rapidly expanding AI and cloud value chain in Asia&rdquo .

 

He added that the partnership would broaden its technology offerings, strengthen its competitiveness in next-generation storage and intelligent computing.

 

Both companies plan to explore deeper capital collaboration, including the possibility of UFCT increasing its shareholding in Serial Achieva over the next two to three years, subject to approvals and due diligence.

 

Serial Achieva has posted losses since 2022, though its net loss for FY2025 narrowed to US$0.7 million from US$6 million in the preceding year, a result of the absence of one-off reverse acquisition costs. 

 

Its management expects that 2026 would remain challenging, citing cautious consumer sentiment and potential pricing pressure from memory shortages. 

Catalist-listed   Serial Achieva   : XHV -0.67% is a distributor of consumer and enterprise IT products with operations in Malaysia and Thailand. It partners brands such as MSI, Intel, Gigabyte, AMD and ViewSonic to offer products ranging from desktop central processing units and motherboards, to video graphics array cards and gaming laptops. 

 

The group has entered into a share subscription agreement with UFCT Technology Co for the issuance of 21 million new ordinary shares at a subscription price of S$0.22 per share, raising around S$4.6 million in gross proceeds. 

 

The subscription price represents a 21.55 per cent premium to the volume-weighted average price of the shares on Mar 10. Post-completion, the new shares will represent about 11.01 per cent of the enlarged issued share capital. 

 

The net proceeds are intended to be used for loan repayment (40 per cent) and working capital (60 per cent). 

 

The subscriber is a wholly owned subsidiary of Shannon Semiconductor Technology Co, a Shenzhen-listed electronic components distributor, and is subject to a six-month restriction on the disposal of the subscription shares.

 

For its H2 FY2025 (ended Dec 31), Serial Achieva recorded a lower net loss of US$200,000 compared with US$900,000 in H2 FY2024. This was due mainly to higher gross profit from improved margins despite lower sales, supported by larger foreign exchange gains.

 

Guided by its 2026 theme of strengthening capabilities and creating opportunities, the company aims to broaden its customer base, diversify revenue sources and enhance operational efficiency and talent development while actively managing external risks through disciplined inventory and credit practices.

 

Serial Achieva&rsquo s indirect wholly-owned subsidiary, Achieva Cloud Services, has secured a contract with a data centre provider to provide AI cloud services to a customer of the company.

 

The contract is valued at about US$22 million ($28.09 million) over a three year period.

 

The company says that this entry into the data centre sector marks a significant step in their plan into the cloud storage, AI and digital infrastructure market segment.

 

Achieva Cloud Services was incorporated in Malaysia on Aug 14, 2025, through the company&rsquo s wholly-owned Singapore subsidiary Achieva Cloud Services. It has a share capital of RM2, comprising two ordinary shares.

 

Its principal activity is the provision of co-location services, comprising rental of data centre space, provision of power supply, and related infrastructure for customers to host their IT equipment.