We refer to our announcement on 27 April 2021 on the above.

The Board of Directors of the Company wishes to inform that, SHH Furniture Industries Sdn Bhd (“SFI”) and Kurnia Sejati Sdn Bhd (KS), the subsidiaries of the Company have conducted COVID-19 screening on 1 May 2021 for all its employees working at factories and offices located at Kawasan Perindustrian Pagoh, Muar, Johor. The screening revealed that some employees of SFI and KS have tested positive for COVID-19. For mitigation measures, all the production employees of SFI and KS are currently placed under quarantine until 14 May 2021 with guidance from Kementerian Kesihatan Malaysia (KKM).

The Company have also taken an additional step to temporary stop the operations of SFI and KS until  14 May 2021. The Company is cooperating and working closely with KKM to implement the mitigating steps to contain the spread of COVID-19 at these factories, and to safeguard the health of the Company’s employees who may have been exposed to the virus.

The Company will continue to monitor the situation and work closely with the relevant authorities so as to ensure resumption of the facilities with the well-being of employees being safeguarded at all times.

Impact on operations

The temporary suspension of operations of the above subsidiaries are expected to result in delay of shipment of several orders to its customers. The management is currently in discussion with the affected customers for the rescheduling of the delivery dates for these orders.

Barring prolonged suspension of operations in the affected subsidiaries, we intend upon re-commencement of operations to increase production activities with extended shifts to mitigate the delay in shipments.

Impact on financial performance

The Company does not expect any material impact to its financial performance other than the costs associated with the swab tests, disinfection process, daily meal allowance to workers and the costs of implementing extended shifts to fulfil delayed orders.

Barring any prolonged interruptions or closure of operations of the subsidiaries, the Directors do not expect any material adverse impact on the revenue or the earnings of the Group for the financial year ending 2021

 This announcement is dated 3 May 2021.