The Board of Directors of YBS International Berhad (“Board”) wishes to announce the production facilities of the following subsidiaries of YBS have been operated in reduced production capacity due to Covid-19 Pandemic.

a)  Production facilities in Vietnam

Oriental Fastech Manufacturing (Vietnam) Co. Ltd. (“OFMV”), a wholly-owned subsidiary of YBS in Vietnam, are partially suspending their operation from 19 July 2021 onward in compliance with the Directives No. 16 issued by the Vietnam Government on 16 July 2021.

Under Directive No. 16, only factories, businesses and service establishments producing and providing essential goods and services are allowed to open and asked to ensure workers follow strict health guidelines issued by Vietnam Health Authority. For businesses operating during the 14 days period, the businesses must implement "3 on the spot” (on-site production, on-site dining, on-site rest) approach to meet the safety requirements for workers inside the factory or company.

In view of the above, the operation of OFMV has been halt on 19 July 2021 and had on
20 July 2021, resumed its production activities with the reduced production capacity as allowed by the  Vietnam Government from time to time.

b)  Production facilities in Malaysia

Oriental Fastech Manufacturing Sdn. Bhd. (“OFMM”), Golden City Plastic Sdn. Bhd. (“GCPSB”) and Edaran Precision Industries Sdn. Bhd. (“EPISB”), all are wholly-owned subsidiaries of YBS, having their production facilities in Bukit Minyak, Penang and Muar, Johor respectively have been operated in reduced production capacity due to Standard Operating Procedures issued by National Securities Council (MKN) and Ministry of Health.

The Group is mitigating the impact of the production disruption by proactive and close engagement with the customer to manage the production capacity challenges and to have the delivery dates re-scheduled in order to meet the demand of customer. In the meantime, as the Group would also utilize outstanding stocks to fulfil sales orders. The disruption of production capacity in the abovementioned companies is expected to have impact to the financial performance of the Group which could not be quantified as this point in time.

The Group will continuously monitor the development of Covid-19 pandemic and the disruption to its business activities caused by the prolonged effect of such pandemic and evaluate their impact on the financial position, cash flows and operating results of the Group. The Group will make necessary announcement in the event of any material or adverse development relating to this matter.

This announcement is dated 26 July 2021.