1. INTRODUCTION

Pursuant to Paragraph 10.09(1)(b) of the Main Market Listing Requirements (“Main LR”) of Bursa Malaysia Securities Berhad (“Bursa Securities”), the Board of Directors of EKA wishes to announce that Kilang Bihun Bersatu Sdn Bhd (“Kilang Bihun”) and EKA Foodstuff Sdn Bhd (“EKA Foodstuff”), its wholly-owned subsidiaries had in the ordinary course of business entered into recurrent related party transactions of revenue and/or trading nature (“RRPT”) with the related party as disclosed below.

2. DETAILS OF THE RRPT

The details of the RRPT are as follows:

N1 - EHO was incorporated in Malaysia on 27 August 2018 and has been in the business of manufacturing food products.

N2 - KBB was incorporated in Malaysia on 23 November 2004 and has been in the business of manufacturing and trading of rice vermicelli, laksa noodles and rice flour since 2006.

N3 - Class of related parties and nature of their relationships are as follows:

1. Ang Eng Hooi is a major shareholder and director of EKA
2. Vibrant Class Sdn Bhd is a major shareholder of EKA
3. Ang Kar Ni and Ang Lay Seang are the directors of Kilang Bihun and EKA Foodstuff
4. Ang Eng Hooi is a major shareholder and director of KBB
5. Ang Eng Hooi and Ang Jin Mao have a collective interest of 75.45% in KBB
6. Ang Jin Mao is the sole director and sole shareholder of EHO
7. Ang Eng Hooi, Ang Jin Mao, Ang Kar Ni and Ang Lay Seang are siblings

The total aggregate value of RRPT entered into with the related party pursuant to Paragraph 10.12(2)(a) of the Main LR of Bursa Securities for the period from 01 January 2020 to 31 December 2020 was amounting to RM444,032.81, which exceeded the prescribed limit of percentage ratio of 1% or more under Paragraph 10.09(1)(b) Main LR.

3. RATIONALE OF THE RRPT

The RRPT entered into by the Group were of a revenue or trading nature and were within the ordinary course of business of the Group. The RRPT were undertaken at arm’s length basis and on normal commercial terms which are not more favourable to the related party than those generally extended to the public and are not detrimental to the interests of the minority shareholders of EKA.

4. FINANCIAL EFFECTS

The RRPT will not have any effect on the issued and paid-up capital, substantial shareholders’ shareholdings of the Company and net assets and gearing of the EKA Group. The RRPT are also not expected to have any material effect on the consolidated earnings and earnings per share of the Group.

5. INTEREST OF DIRECTORS, MAJOR SHAREHOLDERS AND/OR PERSONS CONNECTED TO THEM

Save as disclosed in section 2 above, none of the directors and/or major shareholders and/or persons connected with them has any interest, whether direct or indirect in the RRPT.

6. STATEMENT BY AUDIT & RISK MANAGEMENT COMMITTEE

The Audit & Risk Management Committee had reviewed the procedures of the RRPT and is of the opinion that the Group has in place adequate procedures and processes to monitor, track and identify RRPT in a timely and orderly manner and are sufficient to ensure the RRPT are not favourable to the related party than those generally available to the public and are not to the detriment of the minority shareholders.

7. STATEMENT BY DIRECTORS

Save for the interested director, the Board of Directors of EKA, having taken into consideration all aspects of the RRPT, is of opinion that the RRPT is in the best interest of the EKA Group.

This announcement is dated 22 February 2021.