The Company wishes to announce that its wholly-owned subsidiary, Pecca Leather Sdn. Bhd. (“PLSB”) has decided to venture into developing, producing and supplying of Personal Protective Equipment (“PPE”) that include face masks, face shields, and PPE garments to both the commercial and medical communities (hereinafter referred to as “PPE Business”).

PLSB will repurpose some of its existing production lines and leverage on its present pool of craftsmen as well as production facilities to pursue the PPE Business.

The Company has allocated RM 2.2 million in capital expenditure for the purchase of machineries and the setup of cleanroom facilities for the production of face masks.

PLSB is in the midst of applying for the approvals and certifications from all the relevant authorities for the production of the PPE. Subject to the approvals being obtained from all the relevant authorities, the production is expected to commence within the first quarter of financial year ending 30th June 2021.

PLSB is currently in discussion with several key distributors to market and distribute its PPE products to their clientele in the commercial and healthcare industry.

The Company is of the view that the market demand for PPE will continue to be well above normal for the foreseeable future post Novel Coronavirus (“Covid-19) new normal.

Furthermore, repurposing existing production lines is part of PLSB’s plans to fully utilize its present idle resources and to generate additional revenues.

In addition, the PPE Business is part of the Company’s Corporate Social Responsibility (“CSR”) program to join the combat against the Covid-19 pandemic in Malaysia by supporting and equipping the frontline healthcare personnel with the crucial protective equipment.

The Board wishes to announce that the Board has approved the Venturing into PPE Business Activities in the Healthcare Sector.

Please refer to the attachment for further details.

This announcement is dated 29 June 2020.