KUALA LUMPUR (April 14): Mobile virtual network operator XOX Bhd will be promoting Cheetah Technology Corporation Ltd’s applications to its distribution network, in a bid to sustain consistent revenue for the group.

In a filing with Bursa Malaysia today, XOX said its wholly-owned subsidiary XOX Media Sdn Bhd had on April 14 entered into a cooperation agreement with Cheetah to outlines the obligations of both parties, whereby XOX Media shall promote Cheetah’s applications to its distribution network digitally via promoting the installation of Cheetah’s applications into the specified mobile devices.

Cheetah is a company incorporated in Hong Kong and a subsidiary of New York Stock Exchange (NYSE)-listed mobile application and games services provider Cheetah Mobile Inc.

“The collabration between XOX Media and Cheetah is expected to sustain consistent revenue for the group,” XOX said.

Meanwhile, in a separate filing, XOX said that XOX Media had also entered into a memorandum of understanding (MOU) with Leopard Mobile, to explore a business collaboration in cross marketing and cross bundling programs, whereby Leopard will promote and market XOX's product, Voopee, through its various channels and its users.

XOX Media will also market the range of Leopard’s products, through its channels and subscribers.

Leopard Leopard is a mobile application, advertisement network and games developer/publisher services provider. The company was incorporated in Taiwan and is a subsidiary of NYSE-listed Cheetah Mobile Inc.

XOX said that if a further agreement is not signed within one year, the MOU will be automatically terminated.

Each party may also terminate the MOU by providing 30 days notice in advance to the other party, it added.

According to XOX, the MOU is not expected to have any material effects on the share capital and shareholding structure of the company.

However, it is expected to have positive contribution to the earnings per share and net assets per share of the group, should the MOU be subsequently commercialised.

Shares of XOX closed 1 sen or 7.14% lower at 13 sen today, with 7.72 million shares traded, for a market capitalisation of RM72.33 million.