1. Receipt of Notice of Termination : (a) Equipment Loan Contract dated 5 October 2009 ("Equipment Loan Agreement"), (b) Preferred Supplier Contract for Supply of Components/Materials dated 6 July 2010 ("PSC") and (c) Framework Agreement for the Supply of Goods and Services dated 1 September 2010 ("Framework Agreement"), between Dyson Manufacturing Sdn. Bhd. (“Dyson Manufacturing”) and JABCO Filter System Sdn. Bhd.

2.Receipt of Notice of Termination : (a) Preferred Supplier Contract for Supply of Components/Materials dated 13 April 2017 (“PSC”), (b) Agreement for Supply of Goods and Services dated 15 July 2014 (“Supply Agreement”), and (c) Framework Agreement for the Supply of Goods and Services dated 18 January 2018 (“Framework Agreement”), between Dyson Manufacturing Sdn. Bhd. (“Dyson Manufacturing”) and Winsheng Plastic Industry Sdn. Bhd.

3.Receipt of Notice of Termination : (a) Preferred Supplier Contract for Supply of Components/Materials dated 14 June 2012 (“PSC”), and (b) Equipment Loan Agreement dated 19 September 2014 (“Equipment Loan Agreement”), between Dyson Operations Pte Ltd (“Dyson Operations”) and Winsheng Plastic Industry Sdn. Bhd.

Further to the announcement on 23 December 2022, the Board of Directors wishes to provide the following additional information on the financial and operational impacts arising from the termination of the Contracts :

b.)   Potential impairment of goodwill on consolidation

In the year 2018, the Company acquired the entire equity interest in IMS Group. The acquisition has been accounted for using reverse accounting in accordance with MFRS 3, Business Combinations. Arising from this acquisition, the Group recognised a goodwill of RM76.4 million. Goodwill is not amortised, but tested for impairment annually based on projected revenues, profit and loss accounts, and the discounted cash flows of the various cash generating units within the Group.

The Company is in the process of discussions with customers and working out the new projections to assess the impact on goodwill on consolidation, and will provide an estimate of the impairment, if any, as soon as possible.

e.) Potential downsizing activities and write down of right-of-use-assets

Due to the termination of contracts, there may be a need for downsizing activities to reduce excess capacity, such as early termination of certain tenancy agreements for leasing of production plant, warehouse and hostel.The Company is in the process of assessing which of the leased facilities that may need to be terminated, and also estimating the write down of right-of-use of assets as a result of the early termination of tenancy agreements. We will provide an estimate as soon as possible.

This announcement is dated 28 December 2022.