(Yicai) March 6 -- Chinese smart card manufacturer Eastcompeace Technology and its Singaporean unit will jointly invest USD1 million to set up a subsidiary in Indonesia to expand in the local smart card and digital identity security business.

Eastcompeace decided to establish a unit in Indonesia to take advantage of the positive growth expectation of the local market and improve its localization service capabilities and competitiveness in the country, the Zhuhai-based parent company announced yesterday.

The establishment of the subsidiary is subject to the approval of the Indonesian government, Eastcompeace noted, adding that the subsidiary’s business will likely be impacted by changes in the macroeconomic and industry environments and market situation.

Eastcompeace’s revenue rose 18 percent to CNY1 billion (USD138.9 million) in the first three quarters of last year from a year earlier, according to the company’s latest earnings report. Net profit widened 71 percent to CNY104 million (USD14.5 million) in the period.

Eastcompeace’s shares [SHE: 002017] closed 0.3 percent down at CNY9.42 (USD1.31) in Shenzhen today.

Editor: Futura Costaglione