The Board of Directors ("the Board") of Latitude Tree Holdings Berhad wishes to announce that two (2) wholly owned Malaysia subsidiaries of the Company namely Latitude Tree Furniture Sdn. Bhd. and Rhong Khen Industries Sdn. Bhd. had discovered several positive cases of Covid-19 infection among its factory workers. There are 13 positive cases thus far and under treatment and quarantine.

With guidance from the Ministry of Health (“MOH”), both factories are suspending their operation from 8 June to 18 June 2021. The Company has adopted all possible and necessary standard operating procedures (“SOPs”) at our operations, premises, as well as hostels including implementing social distancing measures, temperature checks, proper hygiene, PPE usage, regular sanitisation, restricting visits by outsiders, etc. Despite stringent SOPs practices, the Company has recorded its first cases of Covid-19 infection. We will continue to adhere to Covid-19 preventive SOPs on a stringent basis. Disinfection exercises at all our premises and workers’ accommodation will continue to be conducted regularly, with all the necessary precautionary measures strictly in place.

Subject to further directive from MOH, both factories are expected to resume operations in stages starting from 19 June 2021. Other unaffected production facilities at different locations in Malaysia, Thailand and Vietnam remain fully operational.

Impact on operations

The temporary suspension of both factories is expected to result in delay for the shipment of several orders to its customers in the US and locally. The management is currently in discussion with the affected customers for the rescheduling of the delivery dates for these orders and expects that there will not be any adverse impact to the Company.

The Company expects to increase production with extended shifts upon re-commencement of manufacturing activities.

Impact on financial performance

The Company does not expect any material impact to its financial performance other than the cost incurred for the Covid-19 test and disinfection cost.

Barring any prolonged interruptions or closure of operations of both factories, the Board does not expect any material adverse impact on the revenue or the earnings of the Group for the financial year ending 2021.

This announcement is dated 8 June 2021.