1.         INTRODUCTION

The Board of Directors of LYC wishes to announce that LYC Medicare Sdn Bhd [Registration No. 200501003142 (680188-M)] (“LYCM”), a wholly-owned subsidiary of the Company had on 19 April 2021, incorporated a wholly-owned subsidiary known as LYC Nutrihealth Sdn Bhd [Registration No. 202101014421 (1414721-W)](“LYC Nutrihealth”).

2.        INFORMATION ON LYC NUTRIHEALTH

LYC Nutrihealth was incorporated on 19 April 2021 as a private limited company by shares in Malaysia under the Companies Act, 2016. The share capital of LYC Nutrihealth as at the date of this announcement is Ringgit Malaysia One Hundred Only (RM100.00) comprising One Hundred (100) ordinary shares. LYCM holds One Hundred (100) shares for Ringgit Malaysia One Hundred only (RM100.00), representing One Hundred percent (100%) shareholding of LYC Nutrihealth.

The intended principal activity of LYC Nutrihealth is the supply of functional ingredients for the pharmaceutical, nutraceutical, food and beverage, cosmetic, sugar and sweetener and feed industry in Malaysia.

The current directors of LYC Nutrihealth are Mr Sui Diong Hoe and Encik Ahmad Rafique bin Mat Tahir.

3.         RATIONALE

The incorporation of LYC Nutrihealth is to facilitate the Company’s expansion of into another segment of healthcare and wellness, which is the pharmaceutical, nutraceutical, cosmeceutical, food, health and wellness functional ingredient supplier industry.

The key drivers of growth behind the rise in the functional ingredient supply to the food, health and wellness industry is down to the changes in consumer preferences, ageing population, change in lifestyles and increased healthcare costs.

The proposed set up of LYC Nutrihealth will also allow LYC to eventually develop its own in-house healthcare and wellness related products to cater to our existing customers in our existing businesses such as confinement, child care, elderly care, cosmetic and aesthetic, osteoporosis and orthopaedic related services, thereby growing its ancillary income and maximizing the lifetime value of our customers.

4.         FINANCIAL EFFECT OF THE INCORPORATION OF LYC NUTRIHEALTH

The incorporation of LYC Nutrihealth 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.

5.         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 LYC Nutrihealth.

This announcement is dated 19 April 2021.