The Board of Directors of JCY wishes to announce that the Company has on 26 November 2020 announced in its Quarterly Report on Consolidated Results for the financial period ended 30 September 2020 under Future Prospect that “With the expected gradual reduction in global TAM to below 70 million per quarter in the near future, major HDD producers may possibly embark upon a rationalisation of their supply chain, which in turn will affect HDD component suppliers”.

One of JCY’s major customers informed that they intend to firstly reduce and eventually stop purchases of one of the Company’s component products. This is expected to have negative impacts on JCY’s revenue, cost of production and possibly result in impairment provisions for the Company’s financial year ending 30 September 2021.

At the same time, the Company has commenced a major re-alignment of its customer base. JCY has committed a significant amount of capital and resources for this new customer and are ramping up production for certain components, including a new range of products. The Management is fully dedicated to achieving these targets, which will have a countervailing positive impact on JCY’s financial results for the current financial year and beyond.

As of the date of this announcement, because of disclosure constraints, the Company is unable to provide definitive projections.  Further development on the above matter shall be announced in due course.

This announcement is dated 14 January 2021.