We refer to the announcement dated 3 July 2020 and the query from Bursa Securities dated 6 July 2020 pertaining to the above subject matter.

The Board of Directors of JERASIA wishes to furnish the following additional information pursuant to the query:-

1. Date of the approvals and certifications obtained for the commencement of the production of the PPE products together with the name of the relevant authorities.

CASB had on 19 April 2020 obtained the approval for operating during the Movement Control Order from the Ministry of International Trade and Industry (“MITI”). For CAC, there was no lockdown and no approvals were required.

2. It is noted that the existing production lines of CASB and CAC have been converted and repurposed to produce PPE garments. In this respect, please provide the following:-

(a) total capital and investment outlay as well as financial commitment required for the production of PPE products;

There is no capital and investment outlay as well as further financial commitment by CASB and CAC as both companies’ principal activities include the manufacturing of garments and accessories. CASB and CAC had merely repurposed their existing production lines i.e., existing plant and machineries, for the production of PPE products. In essence, the Company expanded its product lines.

(b) total number of production lines converted and annual/monthly production capacity and output;

To-date, CASB had converted approximately seventy per centum (70%) of its production lines for the production of PPE products; whilst CAC had converted only less than five per centum (5%) of its production lines for the production of PPE products. The remaining ninety-five per centum (95%) of the CAC’s production capacity still remains focused on the manufacturing of fashion apparels and accessories for the export market.  Currently, daily production capacity is up to 100,000 units of PPE items with opportunities to increase capacities as demand grows.

(c) date of commencement and commercialisation of the production of the PPE products; and

For CAC, the production of the PPE products had commenced since 14 April 2020. As for CASB, as mentioned in item (1) above, with the approval of MITI, the production of the PPE products had commenced on 20 April 2020.

As opportunities arose out of the COVID-19 pandemic, the Company deemed it fit to switch towards the production of PPE products contributing towards overcoming domestic and global shortages of such items. When normalcy and certainty return to the Group’s product lines, a new equilibrium will be found, balancing its capacity requirements towards PPE products and regular production of fashion apparel and accessories.The Company will continue to develop and deepen its competencies in the area of PPE production.

(d) name of customers for the sales of the PPE of 750,000 units or more.

The customers for the sales of the PPE products are local health institutions. The names of the customers are proprietary information and JERASIA wishes to keep this private and confidential.

3. Whether the expansion of business via manufacturing of PPE products signifies the proposed diversification in business operations to your group pursuant to Paragraph 10.13 of the Main Market Listing Requirements.

The manufacturing of PPE products does not signify a diversification in business operations pursuant to Paragraph 10.13 of the Main Market Listing Requirements as the manufacturing of PPE products are not expected to result in either –

(a) the diversion of 25% or more of the net assets of JERASIA to an operation which differs widely from those operations previously carried on by JERASIA; or

(b) the contribution of 25% or more of the net profits of JERASIA.

The business operations of CASB and CAC had not changed and the manufacturing of PPE products is merely an expansion of their product lines.

The announcement is dated 7 July 2020.