1. Introduction

The Board of Directors of LYC wishes to announce that the Company has on 27 December 2019 incorporated a Fifty-One percent (51%) owned subsidiary known as LYC Osteoporosis & Chronic Disease Sdn Bhd (Registration No. 201901046531 (1355861-H)) ("LYCOCD"). The remaining Forty-Nine percent (49%) shareholding is held by Dr. Ting Choon Meng (Republic of Singapore Identity Card No. S1345465E)(“Dr. Ting”).

 2. Information of LYCOCD

LYCOCD was incorporated on 27 December 2019 as a private limited company by shares in Malaysia under the Companies Act, 2016. The share capital of LYCOCD as at the date of announcement is Ringgit Malaysia One Hundred Only (RM100.00) comprising One Hundred (100) ordinary shares. LYC holds Fifty-One (51) shares for Ringgit Malaysia Fifty One only (RM51.00), representing Fifty-One percent (51%) shareholding of LYCOCD while Dr. Ting holds Forty-Nine (49) shares for Ringgit Malaysia Forty-Nine only (RM49.00), representing Forty-Nine percent (49%) shareholding of LYCOCD.

The intended principal activities of LYCOCD are to carry on the business of providing osteoporosis medical services, chronic medical services, specialist consultancy services and other medical and pharmaceutical services.

The current directors of LYCOCD are Mr Sui Diong Hoe, Dr. Ting Choon Meng and Dr. Tan Su-Lin.

3. Information of Dr. Ting Choon Meng

Dr. Ting specializes in treatment of patients primarily for chronic illnesses for over 30 years. Dr. Ting is a medical doctor, serial inventor of medical devices and an author. He is in private practice in Singapore for more than 20 years.

He is also the inventor of the BPro which is the first wrist-worn device capable of capturing 24 hour blood pressure readings and pulse waveform analysis both at the same time. This patented invention which is Food and Drug Administration (FDA) approved has won awards from World Economic Forum and Frost & Sullivan as Monitoring Technology of the year 2007. BPro is now commercialized in more than 25 countries in the world.

Dr. Ting holds an impressive record in medicine for having treated the most osteo-arthritic - or worn out - knees with viscosupplementation ("VSP") in the world. He has treated over 25,000 knees since he discovered VSP in 1991.

Dr. Ting currently owns and operates T&T Family Health Clinic & Surgery located at 181 Kitchener Road #01-36/38, Parkroyal Hotel Shopping Arcade.

4. Rationale

The Company will look to leverage on Dr. Ting’s extensive track record in the osteoporosis and chronic disease industry and LYC’s healthcare and marketing expertise to drive the business of LYCOCD. 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.

According to World Health Organization, in Malaysia, chronic diseases accounted for 71% of all deaths in 2002, which represents 85,000 out of 119,000 deaths in that year.

A Health and Morbidity Survey in 2015 found that 47.7% of Malaysians had high cholesterol levels while 17.7% were deemed obese. Non-communicable chronic diseases such as diabetes, hypertension and hyperlipidemia (high cholesterol levels) among Malaysians above 18 is very high.

With an increasingly ageing population and improving income levels, more people are exposed chronic diseases and will seek the kind of services to be provided by LYCOCD.

5. Financial Effect of the Incorporation of LYCOCD

The incorporation of LYCOCD 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 LYCOCD. 

This announcement is dated 27 December 2019.