Company Announcements

Date : 19 July 2021

OTHERS LATITUDE TREE HOLDINGS BERHAD ("LTHB" OR "THE COMPANY") - TEMPORARY INTERRUPTION OF MANUFACTURING FACILITIES IN BINH DUONG, VIETNAM

LATITUDE TREE HOLDINGS BERHAD

Type Announcement
Subject OTHERS
Description
LATITUDE TREE HOLDINGS BERHAD ("LTHB" OR "THE COMPANY")
- TEMPORARY INTERRUPTION OF MANUFACTURING FACILITIES IN BINH DUONG, VIETNAM

The Board of Directors ("the Board") of Latitude Tree Holdings Berhad wishes to announce that two (2) wholly owned Vietnam subsidiaries of the Company namely Latitude Tree Vietnam Joint Stock Company and RK Resources Co. Ltd. are partially suspending their operation from 19 July to 24 July 2021 to comply with Vietnam Government Directive No. 16.

 

Vietnam Government had on 16 July 2021 announced to impose 14 days social distancing rules under Directive No. 16 effective 19 July 2021 to contain outbreak of Covid-19 virus in 16 southern states of Vietnam. Under Directive No. 16, only factories, businesses and service establishments producing and providing essential goods and services are allowed to open and asked to ensure workers follow strict health guidelines issued by Vietnam Health Authority. For businesses operating during the 14 days period, the businesses must implement "3 on the spot” (on-site production, on-site dining, on-site rest) approach to meet the safety requirements for workers inside the factory or company.

 

Impact on operations

 

Both factories are implementing “3 on the spot” approach but with reduced production capacity starting from 19 July 2021. Estimated production output loss arising from the adoption of “3 on the spot” approach under Directive No. 16 is expected to be around 1.2% to 1.8% of the total estimated annual output volume for the financial year ending 2022.

 

Impact on financial performance

 

The implementation of “3 on the spot” approach by both factories in Vietnam is expected to have an adverse impact of around 1.5% to 2.0% on the revenue of the Group for the financial year ending 2022.

 

The Company will continue to adhere to any upcoming Vietnam Government directives in relation to containment of Covid-19 virus.

 

The Company will continue to monitor the development in Vietnam and will make necessary announcement from time to time.

 






Announcement Info

Company Name LATITUDE TREE HOLDINGS BERHAD
Stock Name LATITUD
Date Announced 19 Jul 2021
Category General Announcement for PLC
Reference Number GA1-19072021-00059



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