Founder Group Signs Memorandum of Understanding with GCL Systems Integration Technology Co., Ltd. to Cooperate on Renewable Energy Projects Valued at up to USD $220 Million

Rhea-AI Summary

Founder Group Limited (NASDAQ: FGL) has signed a memorandum of understanding (MOU) with GCL Systems Integration Technology Co. Ltd. to collaborate on renewable energy projects across Malaysia and ASEAN countries, with potential projects valued up to USD $220 million. GCL, listed on the Shenzhen Stock Exchange, is a leading smart PV and storage system integrator with expertise in high-efficiency cells, PV modules, and energy storage systems. The partnership involves information exchange, technical expertise sharing, and joint project development. Both companies will utilize internal resources for sourcing projects, analyzing tenders, and developing proposals. FGL's CEO Lee Seng Chi emphasized that partnering with GCL will enhance their capabilities in supporting regional renewable energy goals while potentially driving significant revenue growth and shareholder value.

Positive

• Potential projects valued at up to USD $220 million indicate significant revenue opportunity
• Partnership with GCL, a world-leading PV and storage system integrator, enhances FGL's market position
• Expansion into ASEAN markets beyond Malaysia shows geographic growth potential
• Access to GCL's technical expertise and high-quality PV products could improve competitive advantage

Negative

• MOU is non-binding and requires separate definitive agreements for actual projects
• No guaranteed timeline or specific project commitments
• Success depends on ability to secure and execute projects in competitive markets

Insights

Renewable Energy Industry Expert

FGL-GCL partnership targets $220M in ASEAN renewable projects, combining local EPCC expertise with global PV manufacturing capabilities.

The memorandum of understanding between Founder Group Limited and GCL Systems Integration Technology represents a strategic positioning in the rapidly developing ASEAN renewable energy market. This partnership combines FGL's regional engineering, procurement, construction, and commissioning expertise with GCL's established manufacturing capabilities in solar PV modules and energy storage systems.

GCL brings significant technical credibility to this partnership as a Shenzhen-listed company with a 20-year track record in PV technology development. Their vertical integration across high-efficiency cells, modules, and storage systems complements FGL's project execution capabilities in Malaysia and potentially other ASEAN markets.

The $220 million potential project pipeline signals ambition, though it's important to recognize that MOUs represent preliminary agreements that require conversion to definitive contracts. The partnership structure appears designed to leverage complementary strengths—GCL's manufacturing scale and technological innovation paired with FGL's local market knowledge and implementation expertise.

This cooperation model follows industry trends where vertically integrated partnerships are increasingly becoming necessary to deliver cost-competitive renewable solutions at scale. By combining GCL's product range with FGL's regional presence, the partnership could potentially deliver more integrated solar and storage solutions than either company could offer independently.

Financial Analyst

Non-binding $220M MOU offers significant potential revenue for FGL, but requires conversion to definitive agreements to realize financial impact.

This memorandum of understanding represents a significant potential business opportunity for Founder Group Limited, with projects valued at up to $220 million across Malaysia and other ASEAN countries. While non-binding at this stage, the agreement establishes a framework for FGL to potentially expand both its geographic reach and project scale.

The partnership with GCL, an established player in the solar PV and energy storage manufacturing space, could strengthen FGL's competitive positioning when bidding for larger-scale renewable energy projects. CEO Lee Seng Chi's statement specifically highlights expectations for this cooperation to drive "top-line growth as well as margin and income expansion," suggesting potential for improved profitability beyond mere revenue growth.

The financial impact remains contingent on the partnership's ability to secure concrete projects, which will require separate definitive agreements as noted in the press release. The announcement does not specify a timeframe for project implementation or FGL's expected revenue share from the $220 million potential pipeline.

This strategic alignment with a vertically integrated manufacturer could create operational efficiencies and potential cost advantages for FGL in project execution. By partnering with a component supplier, FGL may secure more reliable supply chains and potentially more favorable procurement terms than operating independently in an increasingly competitive market.

KUALA LUMPUR, Malaysia, June 17, 2025 (GLOBE NEWSWIRE) -- Founder Group Limited (NASDAQ: FGL) (“Founder Group” or the “Company”), a leading engineering, procurement, construction, and commissioning (EPCC) solutions provider for solar photovoltaic systems in Malaysia, is pleased to announce the signing of a memorandum of understanding (MOU) with GCL Systems Integration Technology Co. Ltd. (GCL). The companies have agreed to cooperate and work together to explore, identify, assess and undertake projects focused on the Renewable Energy industry across Malaysia and other ASEAN countries with an estimated value of up to USD $220 million.

GCL Systems Integration Technology Co., Ltd. is a publicly traded company listed on the Shenzhen Stock Exchange. Founded in 2003, GCL has grown into a world-leading one-stop smart PV and storage system integrator. GCL emphasizes technological innovation and excellence by providing high-quality, efficient and differentiated products. Leveraging on their powerful technical research and development strength and excellent system solution design capability, GCL has secured a leading position in intelligent PV and storage energy solutions after 20 years of unremitting efforts. As of today, their product range includes high efficiency cells, PV modules and energy storage systems. Furthermore, GCL offers diversified service modules such as integrated financial services and intelligent operation and maintenance management, aiming to deliver efficient, intelligent and integrated energy solutions alongside outstanding service experiences to global customers.

Under the agreement, FGL and GCL will employ various methods to achieve their objectives, including exchanging information, proposing and implementing specific actions, and periodically evaluating the effectiveness of their collaboration. Additionally, both companies commit to contributing technical expertise and proficiency to support the collaboration on identified projects.

Each entity will take essential steps to carry out proper procedures professionally and diligently to identify and procure the projects. If any projects are secured, a separate definitive agreement will be executed outlining each company’s commitments, including providing necessary assistance, relevant information and documents required by the other party. Upon execution of the MOU, both entities will utilize internal resources to source and secure potential projects, analyze tender documents, prepare business plans, and develop proposals.

“We are proud to announce our collaboration with GCL Systems Integration Technology on future Renewable Energy projects. Leveraging GCL’s strong global reputation and expertise in manufacturing and supply of solar PV modules and storage will be an integral part of this cooperation to advance our capabilities to support Malaysia and the surrounding countries’ renewable energy goals and promote a greener environment for our customers. Additionally, we anticipate significant revenue opportunities as we work to establish sustainable projects that will drive top-line growth as well as margin and income expansion which we expect will result in substantial gains in shareholder value,” said Lee Seng Chi, Chief Executive Officer of Founder Group Limited.

About Founder Group Limited

Founder Group Limited is a pure-play, end-to-end EPCC solutions provider for solar PV facilities in Malaysia. The company’s primary focus is on two key segments: large-scale solar projects and commercial and industrial (C&I) solar projects. The company’s mission is to provide customers with innovative solar installation services, promote eco-friendly resources and achieve carbon neutrality.

For more information on the Company, please visit https://www.founderenergy.com.my/.

About GCL System Integration Technology Co., Ltd.

GCL System Integration Technology Co., Ltd. strives to be the world’s leading integrator of comprehensive energy systems. The company closely follows the new stage development in the 14^th Five Year Plan and new opportunities of the “Double Carbon Goals”, actively seizes the historical opportunity period, and provides customers with high-quality clean energy one-stop services following the strategic guidance of technological, digital and green GCL.

For more information on the Company, please visit https://en.gclsi.com/about_us.

Safe Harbor Statement

This press release contains forward-looking statements that reflect our current expectations and views of future events. Known and unknown risks, uncertainties and other factors, including those listed under “Risk Factors” in the Company’s filings with the U.S. Securities and Exchange Commission, may cause our actual results, performance or achievements to be materially different from those expressed or implied by the forward-looking statements. You can identify some of these forward-looking statements by words or phrases such as “may,” “will,” “expect,” “anticipate,” “aim,” “estimate,” “intend,” “plan,” “believe,” “is/are likely to,” “potential,” “continue” or other similar expressions. We have based these forward-looking statements largely on our current expectations and projections about future events that we believe may affect our financial condition, results of operations, business strategy and financial needs. These forward-looking statements involve various risks and uncertainties. Except as required by law, we undertake no obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise, after the date on which the statements are made or to reflect the occurrence of unanticipated events. We qualify all of our forward-looking statements by these cautionary statements.

CONTACT INFORMATION:

For media queries, please contact:

Founder Group Limited
info@founderenergy.com.my

Investor Relations Inquiries:

Skyline Corporate Communications Group, LLC
Scott Powell, President
1177 Avenue of the Americas, 5th Floor
New York, New York 10036
Office: (646) 893-5835
Email: info@skylineccg.com

FAQ

What is the value of the potential projects between Founder Group and GCL Systems Integration?

The potential projects between Founder Group and GCL Systems Integration are valued at up to USD $220 million across Malaysia and other ASEAN countries.

What is the purpose of the MOU between FGL and GCL Systems Integration?

The MOU establishes cooperation between the companies to explore, identify, assess, and undertake renewable energy projects across Malaysia and ASEAN countries, combining FGL's EPCC capabilities with GCL's PV and storage expertise.

Who is GCL Systems Integration Technology Co. Ltd?

GCL is a Shenzhen-listed company founded in 2003 that has become a world-leading smart PV and storage system integrator, specializing in high-efficiency cells, PV modules, and energy storage systems.

How will the FGL stock (NASDAQ: FGL) benefit from this partnership?

According to CEO Lee Seng Chi, the partnership is expected to drive top-line growth, margin and income expansion, resulting in substantial gains in shareholder value through significant revenue opportunities.

What are the key terms of the MOU between Founder Group and GCL?

The MOU includes information exchange, technical expertise sharing, joint project development, and requires separate definitive agreements for secured projects, with both companies utilizing internal resources for project sourcing and development.