1.         INTRODUCTION

The Board of Directors of LYC wishes to announce that LYC Mother & Child Centre Sdn Bhd [Registration No. 201101044567 (972687-K)] (“LYCMC”), a wholly-owned subsidiary of the Company had on 13 April 2021, incorporated a Fifty-One percent (51%) owned subsidiary known as LYC SOG Mother & Child Sdn Bhd [Registration No. 202101013590 (1413889-W) (“LYCSOG”). The remaining Forty-Nine percent (49%) shareholding is held by SOG Mummy & Baby Centre Pte Ltd [Registration No. 202111133M] (“SOGMB”), a wholly-owned subsidiary of Singapore O&G Ltd [Registration No. 201100687M] (“SOG”).

2.        INFORMATION ON LYCSOG

LYCSOG was incorporated on 13 April 2021 as a private limited company by shares in Malaysia under the Companies Act, 2016. The share capital of LYCSOG as at the date of this announcement is Ringgit Malaysia One Hundred Only (RM100.00) comprising One Hundred (100) ordinary shares. LYCMC holds Fifty-One (51) shares for Ringgit Malaysia Fifty-One only (RM51.00), representing Fifty-One percent (51%) shareholding of LYCSOG while SOGMB holds Forty-Nine (49) shares for Ringgit Malaysia Forty-Nine only (RM49.00), representing Forty-Nine percent (49%) shareholding of LYCSOG.

The intended principal activities of LYCSOG are to operate confinement centres, mother and child care centres and its related services.

The current directors of LYCSOG are Mr Sui Diong Hoe, Encik Ahmad Rafique bin Mat Tahir, Dr Yang Jun, Dr Heng Tung Lan and Mr Choo Kok Wei, Eric.

3.       INFORMATION ON SOGMB

SOGMB is a private company limited by shares and was incorporated on 30 March 2021. The issued share capital of SOGMB is Singapore Dollar $1,000.00 comprising 1,000 ordinary shares. The current directors of SOGMB are Dr. Beh Suan Tiong, Dr. Heng Tung Lan and Mr Choo Kok Wei, Eric.

The principal activity of SOGMB is as an investment holding company.

4.       INFORMATION ON SOG

SOG is a company incorporated in the Republic of Singapore. The issued share capital of SOG is Singapore Dollar S$29,808,833 comprising 476,803,002 ordinary shares. The current directors of SOG are Dr. Beh Suan Tiong, Dr. Heng Tung Lan, Dr. Lee Keen Whye, Mr. Ng Boon Yew, Mr. Chan Heng Toong, Mr. Chooi Yee-Choong and Ms. See Tho Soat Ching.

Established since 2011, SOG is a leading healthcare service provider dedicated towards delivering premier quality medical services to women’s and children’s health and wellness at affordable prices. SOG was listed on the Catalist board of the Singapore Exchange Securities Trading Limited since 2015.

5.         RATIONALE

The incorporation of LYCSOG is to facilitate the Company’s expansion of confinement centre operations in Johor with SOG. LYC believes Johor is an attractive location for the Group’s expansion plans with its population, total live births and median income trailing closely behind Selangor and Kuala Lumpur.

It also allows LYC to derive economies of scale and synergies from cross marketing of services under its other healthcare and wellness related services such as fertility, child care and cosmetic and aesthetic business.

Additionally, its close proximity to Singapore would mean that the proposed confinement centre in Johor would be able to tap into Singapore market with live births of 39,115 (as at 2019) per annum based on the Singapore Demographic Bulletin under Singapore’s Immigration & Checkpoints Authority.

According to the Singapore’s Department of Statistics, 74.3% of its population are from the Chinese ethnic group, which typically practice confinement period after the delivery of their babies. LYC believes that the proposed new confinement centre in Johor will be an attractive alternative for both the Singaporean and Malaysian customers who wish to spend their post childbirth confinement period in the state of Johor.

The joint venture between LYC and SOG via LYCSOG enables LYC to rely on SOG’s strong branding and presence in Singapore to reach out and serve the Singaporean customers while LYCMC leverages on its established track record in confinement business to set up and manage the proposed confinement centre in Johor.

6.         FINANCIAL EFFECT OF THE INCORPORATION OF LYCSOG

The incorporation of LYCSOG does not have any effect on the share capital and substantial shareholders’ shareholdings of LYC. It is also not expected to have any material effect on the net assets, gearing and earnings of LYC for the financial year ending 31 March 2022.

7.         DIRECTORS’ AND MAJOR SHAREHOLDERS’ INTERESTS

None of the Directors and/or major shareholders of LYC or persons connected with them, have any direct or indirect interest in the incorporation of LYCSOG.

This announcement is dated 13 April 2021.