LYC

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OTHERS LYC HEALTHCARE BERHAD ("LYC" OR THE "COMPANY") - INCORPORATION OF A 50% OWNED COMPANY

LYC HEALTHCARE BERHAD

Type Announcement
Subject OTHERS
Description
LYC HEALTHCARE BERHAD ("LYC" OR THE "COMPANY") - INCORPORATION OF A 50% OWNED COMPANY

1. Introduction

 

The Board of Directors of LYC wishes to announce that the Company has on 20 December 2019 incorporated a Fifty percent (50%) owned company known as LYC & Chung Fertility Centre Sdn Bhd (Registration No. 201901045953 (1355283-K)) ("LYCCF"). The remaining Fifty percent (50%) shareholding is held by Dr Chung Chow Cheang (NRIC No. 591104-08-6329)(“Dr Chung”).

 

 2. Information of LYCCF

 

LYCCF was incorporated on 20 December 2019 as a private limited company by shares in Malaysia under the Companies Act, 2016. The share capital of LYCCF as at the date of announcement is Ringgit Malaysia One Hundred Only (RM100.00) comprising One Hundred (100) ordinary shares. LYC holds Fifty (50) shares for Ringgit Malaysia Fifty only (RM50.00), representing Fifty percent (50%) shareholding of LYCCF while Dr Chung holds Fifty (50) shares for Ringgit Malaysia Fifty only (RM50.00), representing Fifty percent (50%) shareholding of LYCCF.

 

The intended principal activities of LYCCF are to carry on the business of providing Assisted Reproductive Technology (“ART”) services, In Vitro Fertilisation (“IVF”), specialist consultancy services, obstetrics and gynecological services, and providing relevant laboratory services in connection with investigative procedures and other medical and pharmaceutical services.

 

The current directors of LYCCF are Mr Sui Diong Hoe and Dr Chung Chow Cheang.

 

3. Information of Dr. Chung Chow Cheang

 

Dr Chung is a highly qualified fertility specialist with qualifications from Bachelor of Medicine & Bachelor of Surgery (MBBS)(Malaysia), Member / Fellow of the Royal College of Obstetricians and Gynaecologists (MRCOG and FRCOG UK) and more than 25 years’ experience in the industry.

 

Dr Chung’s area of specialty includes General Obstetrics & Gynaecology, Gynaecological Disorder & Cancer Screening, Pelvic Floor Disorder, Sexually Transmitted Diseases(STDs), Infertility Comprehensive Diagnostic, Infertility / Assisted Reproductive Technologies, Counseling and Treatment.

 

Dr Chung was previously a Head of Lembaga Penduduk dan Pembangunan Keluarga Negara (LPPKN) Fertility Unit which is under Kementrian Pembangunan Wanita, Keluarga Dan Masyarakat.

 

Dr Chung currently operates his own fertility clinic called CC Chung Gynaecology & Assisted Reproduction in Jalan Binjai, PNB Perdana, 50450 Kuala Lumpur.

 

4. Rationale

 

The Company will look to leverage on Dr. Chung’s extensive track record in the fertility industry and LYC’s healthcare and marketing expertise to drive the business of LYCCF. The move is also in line with the Company’s plans to further diversify its business in the healthcare space, with a focus on medical tourism.

 

After China scrapped its one-child policy in October 2015, Malaysian Healthcare Travel Council (“MHTC”) estimates there are around 90 million couples in China looking to conceive a second child. Out of these, 40 million are over 40 years of age, it added.

 

MHTC noted that fertility and cardiology treatments are among the top five treatments sought after by healthcare travellers to Malaysia, alongside orthopaedics, oncology and aesthetics.

 

Malaysia IVF rates are comparatively cheaper than the other medical tourism countries such as Singapore. This is a potential selling factor which can be tapped on to attract customers.

Based on Malaysia’s Budget 2020, Malaysian couples looking to try IVF may withdraw from their Employees Provident Fund (“EPF”) to fund the procedure. Income tax relief of up to RM6,000 given on expenses incurred for medical treatment of serious illnesses will be expanded to include expenses incurred on fertility treatment.

 

Additionally LYCCF customers could be potential customers of LYC Mother & Child Centre’s confinement services, which may generate synergies.

 

5. Financial Effect of the Incorporation of LYCCF

 

The incorporation of LYCCF 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 LYC for the financial year ending 31 March 2020. 

 

6. Directors’ and Major Shareholders’ Interests

 

Mr Sui Diong Hoe is the Managing Director cum Group Chief Executive 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 LYCCF. 

 

This announcement is dated 20 December 2019.






Announcement Info

Company Name LYC HEALTHCARE BERHAD
Stock Name LYC
Date Announced 20 Dec 2019
Category General Announcement for PLC
Reference Number GA1-20122019-00030