1.0       INTRODUCTION

Pursuant to Rule 10.09 (1)(b) of the Bursa Malaysia Securities Berhad ACE Market Lisitng Requirements, the Board of Directors of YBS wishes to announce that Bumblebee Eco Solutions Sdn. Bhd. (BESSB), a 56%-owned subsidiary of YBS has entered into the following Recurrent Related Party Transactions (RRPTs) with Golden Frontier Packaging Sdn. Bhd. (GFP) as detailed in Section 3.0 herein.

2.0       BACKGROUND INFORMATION

2.1       Information on BESSB

Bumblebee was incorporated in Malaysia as a private limited company under the Companies Act 2016 on June 28, 2016. As at the date of the announcement, BESSB has an issued and paid-up capital of RM3,000,000.00 comprising 3,000,000 Ordinary shares.

The principal business activity of BESSB is manufacture and sale of paper honeycomb products used in packaging and shipping, furniture and fittings, point of purchase display and exhibition.

2.2       Information on GFP

GFP was incorporated in Malaysia as a private limited company under the Companies Act 2016 in the name of Transfro Trading Sdn. Bhd. on June 10, 1977 and assumed its present name of GFP since September 30, 1992.

As at the date of the announcement, GFP has an issued and paid-up capital of RM5,500,000.00 comprising 5,500,000 Ordinary shares.

The principal business activity of GFP is manufacture and sale of corrugated fibreboards and cartons.

3.0       DETAILS OF THE RRPTs

4.0       RATIONALE OF THE RRPTs

BESSB was unable to meet the minimum order quantity imposed by other supplier. The purchase from GFP would enable BESSB to purchase the sheet board in smaller quantity and shorter delivery lead time.

BESSB is supplying the paper products to GFP as its sub-contractor, this would contribute positively to the revenue of BESSB.

5.0       APPROVALS REQUIRED

The RRPTs is not subject to the approval of the shareholders of YBS, or any regulatory authorities.

6.0       MAJOR SHAREHOLDERS’ AND DIRECTORS’ INTERESTS

Mr. Khor Leong, is a common Director of BESSB and GFP. He is also a shareholder of GFP by virtue of his shareholding in TT Khor Holdings Sdn. Bhd. (a major shareholder of GFP).

7.0       TRANSACTION WITH THE SAME RELATED PARTY FOR THE PRECEDING 12 MONTHS        

            Save as disclosed in Section 3.0 herein, there is no transaction entered by the YBS Group with Related Party for the preceding 12 months.

8.0       AUDIT COMMITTEE’S STATEMENT

After taking into consideration the rationale of the RRPTs as disclosed in Section 4.0 herein, the Audit Committee is of the view that the RRPTs have been transacted

a)         in the best interest of YBS Group;

b)         fair, reasonable and on normal commercial terms; and

c)         not detrimental to the interest of the minority shareholders.

9.0       DIRECTORS’ STATEMENT

The Board of Directors of YBS is of the opinion that the RRPTs were in the best interest of YBS Group. 

This announcement is dated 25 November 2020.