Reply to Query Reference is made to the letter dated 16 March 2021 (IQL-16032021-00001) from Bursa Malaysia Securities Berhad (“Bursa Securities”) regarding the Memorandum of Collaboration for strategic partnership between Dataprep (Malaysia) Sdn. Berhad (DPM), a wholly owned subsidiary of Dataprep Holdings Bhd and Asia Coding Centre Sdn Bhd (Asia Coding) (Memorandum of Collaboration).

The Board of Directors of Dataprep wishes to inform that our response based on query from Bursa Malaysia Securities dated 16 March 2021 is as follows:-

1. The details of Asia Coding.

Asia Coding (Company Registration No. 201301003435 (1033274-K)) is a company incorporated in Malaysia on 30 January 2013, having its business address at Suite 1123, Level 11, Block A3, Leisure Commerce Square, Jalan PJS 8/9, 46150 Petaling Jaya, Selangor.

Asia Coding is in the business of providing services relating to information technology and general trading. Asia Coding is certified by Medical Device Authority Malaysia as Authorized Representative, Distributor & Importer (License No. : MDA-1299-WDP120) and Certificate Holder of Conformity for Good Distribution Practice for Medical Devices (GDPMD) (Registration No. : MDA/CAB-020).

2.  The areas of responsibilities of DPM and Asia Coding respectively.

DPM and Asia Coding are desirous to collaborate with each other to undertake a project in relation to providing an integrated solution technology for COVID-19 screening for Kementerian Kesihatan Malaysia.

The following areas are covered under the collaboration:

1. Providing the relevant solution technology and other related products by leveraging the strength of each other;
2. Providing the highest level of technical support, resources and business related matters in areas where the parties can benefit each other;
3. Planning to work strategically in partnership on other potential projects in Malaysia; and
4. Any other areas of co-operation to be mutually agreed upon by the Parties

At this juncture, the area of responsibility of each party is not stated in the Memorandum of Collaboration

3.  The salient terms of the Memorandum of Collaboration.

The salient terms of the Memorandum of Collaboration set out that both parties shall work as strategic partners as well as to collaborate with each other to undertake the said Project.

The Memorandum of Collaboration covers key areas among others, scope of collaboration between both parties, representatives, warranties and undertaking, intellectual property rights, confidentiality, exclusivity and announcement.

Both parties has agreed that, at this juncture the scope and areas of work only as per stated in the Memorandum of Collaboration, summarized as above.

4.  Whether a definitive agreement will be entered into subsequently.

Yes, upon finalisation of the terms and conditions of the definitive agreement.

5.  Whether the duration of the Memorandum of Collaboration is subject to renewal, and if yes, the terms and tenure such renewal.

Memorandum of Collaboration shall be effective for a period of three (3) years from the date of the Memorandum of Collaboration and may be mutually extended by both parties.

At the moment, the Memorandum of Collaboration itself didn’t specified in details on the extension period.

6.  The prospects of the Project.

The prospects of the Project is expected to contribute positively to the Group.

7.  The breakdown of the estimated total capital outlay and investment outlay in the Project and the portion to be borne by DPM.

The estimated capital outlay and investment outlay will be determined upon finalsation of the terms and conditions of the definitive agreement.  

8.  The relevant regulatory approvals required to be obtained for the Project and the estimated time-frame for submission of such applications.

Our strategic partner, Asia Coding has obtained the necessary licensing and registration requirements for the Project as mentioned under item 1.

9.  Whether the Contract has been secured by either of Asia Coding or DPM, and if so, the value and duration of the Contract or if not yet secured, the estimated value of the Project. If it has not been secured, the timeframe for DPM and/or Asia Coding to make a submission to Kementerian Kesihatan Malaysia to bid for the Project.

Our strategic partner, Asia Coding is still negotiating the contract with Kementerian Kesihatan Malaysia.

The proposed estimated value of the project is 500,000 units of integrated screening solutions per month has been submitted to Kementerian Kesihatan Malaysia.

10.  How the revenue from the Contract (once it is secured) will be shared between DPM and Asia Coding.

The revenue sharing from the targeted contract could not be determined at this juncture. However, appropriate disclosure will be announced upon consummation of the said contract in accordance with Bursa Securities Listing Requirements.

Dataprep Group has been continuously working for new opportunities to enhance the value of the Company. The Board of Directors will make the necessary announcement and comply with Bursa Securities Listing Requirements, in particular Paragraph 9.03 of The Main Market Listing Requirements on immediate disclosure obligations.

This announcement is dated 18 March 2021.