1. Introduction

The Board of Directors of LYC wishes to announce that LYC Mother & Child Centre Sdn Bhd (Registration No. 201101044567 (972687-K)) (“LYCMC”), a wholly owned subsidiary of the Company, has on 6 December 2019 incorporated a wholly owned subsidiary known as LYC Child Care Centre Sdn Bhd (Registration No. 201901044276 (1353606-P)) ("LYCCCC").

2. Information of LYCCCC

LYCCCC was incorporated on 6 December 2019 as a private limited company by shares in Malaysia under the Companies Act, 2016. The share capital of LYCCCC as at the date of announcement is Ringgit Malaysia One Hundred Only (RM100.00) comprising One Hundred (100) ordinary shares. LYCMC holds One Hundred (100) ordinary shares for Ringgit Malaysia One Hundred only (RM100.00), representing 100% shareholding of LYCCCC.

The intended principal activities of LYCCCC are to carry on the business of child daycare activities.

The current directors of LYCCCC are Mr Sui Diong Hoe and Encik Ahmad Rafique bin Mat Tahir.

3. Rationale

Through the Company’s operations of confinement services in Taman Tun Dr Ismail and Puchong centres, LYC has observed strong demand from its customers for child care services beyond the confinement period of one (1) month. Parents are increasingly growing concerned about the quality child care providers available in the market currently and are more willing to pay for premium prices for reputable service providers. The Company believe that as it have a captive market via the confinement services, more parents are willing to consider the Company’s child care services for children aged two (2) months to two (2) years old. These customers will be more assured of the high quality and standard of care by LYC and will allow the Company to further maximize the lifetime value of its customers. As part of the first phase, LYCCCC will seek to offer the child care services in both the Taman Tun Dr Ismail and Puchong premises for children aged 2 months to 2 years old.

Additionally LYCCCC customers could be potential customers of LYC Family Clinic services, which may generate synergies.

4. Financial Effect of the Incorporation of LYCCCC

The incorporation of LYCCCC does not have any effect on the share capital and substantial shareholders’ shareholdings of LYC. It is also not expected to have any material effect on the net assets, gearing and earnings of LYCCCC for the financial year ending 31 March 2020. 

5. Directors’ and Major Shareholders’ Interests

Mr Sui Diong Hoe is the Managing Director cum Group Chief Executive Officer and Encik Ahmad Rafique bin Mat Tahir is the Group Chief Operating Officer of LYC.

Save as disclosed above, none of the Directors and/or major shareholders of LYC or persons connected with them, have any direct or indirect interest in the incorporation of LYCCCC. 

This announcement is dated 10 December 2019.