The Board of Directors of Spring Art wishes to inform that some of its employees have been tested positive on 11 January 2021. Spring Art is cooperating and working closely with the Ministry of Health (MOH) to implement the mitigating steps to contain the spread of COVID-19 at the premises, and safeguard the health of employees who may have been exposed to the virus. Following this, the operations of Spring Art’s factories A and B as well as its administrative office have been temporary suspended and shall resume on 20 January 2021.

Impact on operations

The management foresees that the temporary suspension of business shall delay the shipment of several sales orders to its customers in the Middle East, North America and India. The management is currently in discussions with the respective customers for the extension of time to deliver the goods and expects that there will not be any adverse impact to the Group in view of the long-term relationship with the respective customers. After the recommencement of business, the Company expects to be able meet the demand of its customers via overtime and extra shifts to be taken by its workers.

Impact on financial performance

Resulting from the swab test and disinfection process, the Group has incurred an estimated cost of RM0.20 million. Save for the said cost and the overtime expenses to be incurred by the Company, the Company does not expect any material impact to its financial performance.

Impact on earning prospects

There is no impact to the revenue of the Group for the financial year ending 2021.

Strategy and steps taken to address the impact of COVID-19

The Company will continue to adhere to the Government’s guidelines and SOP to minimize the impact of Covid-19 to its staff and business operations moving forward.

This announcement is dated 12 January 2021.