OTHERS Product purchase agreement between HWG Consortium Sdn Bhd (HWG Consortium), a wholly owned subsidiary of HWGB and Zhejiang Plame Medical Technology Co Ltd (Zhejiang Plame Medical)

HO WAH GENTING BERHAD

Type Announcement
Subject OTHERS
Description
Product purchase agreement between HWG Consortium Sdn Bhd (HWG Consortium), a wholly owned subsidiary of HWGB and Zhejiang Plame Medical Technology Co Ltd (Zhejiang Plame Medical)

1. Introduction

 

Reference is made to the announcement dated 15 May 2020 in relation to the appointment of HWG Consortium as the authorised distributor of Shanghai Liangrun Biomedicine Technology Co. Ltd (“Shanghai Liangrun”) for the distribution of its antibody IgM/IgG Of Novel Coronavirus Covid-19 diagnostic kit (“Diagnostic Kit”) in Malaysia for a validity period from 15 May 2020 to 31 December 2020 (“Appointment”).

 

Following the appointment, the Board of Director of HWGB is pleased to announce that HWG Consortium had on 18 May 2020 entered into a product purchase agreement with Zhejiang Plame Medical, a company duly authorised by Shanghai Liangrun to handle the overseas exports of its Diagnostic Kit (“PPA”).

 

The Diagnostic Kit is one of the rapid test kits that has been evaluated by Institute of Medical Research, Malaysia and National Public Health Laboratory, Malaysia to be used for Covid-19 screening as recommended by Ministry of Health, Malaysia.

 

 

2. Information on Shanghai Liangrun

 

Shanghai Liangrun with its principal place of business at Level 4, Building 1, No.271 Gang'ao Road, Pilot Free Trade Zone, Shanghai, China is a company principally engaged in the biomedicine technology.

 

 

3. Information on Zhejiang Plame Medical

 

Zhejiang Plame Medical with its principal place of business at Room 362, 3F Building 1, Wenzhou National University Science Park, No. 50 Dongfang South Road, Ouhai Economic Development Zone, Wenzhou City, Zhejiang Province, China is a company authorised to handle overseas export business of Shanghai Liangrun.

 

4. Information on HWG Consortium

 

HWG Consortium was incorporated on 18 June 2012 under the Companies Act, 1965 with Company No. 1006524-T.The paid-up capital is RM100,000 with 100,000 ordinary shares in issued with HWGB as the registered shareholder.

 

5. Salient terms of the PPA

 

a. When HWG Consortium has product demand, it shall promptly negotiate with Zhejiang Plame Medical on the quantity, price and delivery place of the distributed products, which shall become effective upon confirmation by both parties.

 

b. The agreement shall come into effect upon being signed by both parties for a term of one year.

 

6. Rationale

 

The PPA and the Appointment enables to the Group’s to participate in the nation’s efforts to contain the further spread of COVID-19 through the supply of COVID-19 test kits to the public and are expected to contribute positively to the financial performance of the Group.

 

 

7. Financial effects

 

The execution of the PPA is not expected to have any immediate material effect on the earnings, net assets, gearing, share capital and substantial shareholders’ shareholdings of HWGB. However, the PPA and the Appointment are expected to contribute positively to the earnings of HWGB for the financial year ending 31 December 2020.

 

 

8. Risk Factors

 

The Company does not expect any material risk arising from the PPA other than the normal operational risk associated with the PPA, which the Company would take appropriate measures to minimise it.

 

 

9. Approvals Required

 

The PPA is not subject to the approval of HWGB’s shareholders and/or any regulatory authorities.

 

HWG Consortium had submitted a notification of medical device for special access in accordance with the Medical Device (Exemption) Order 2016 to Ministry of Health, Malaysia.

 

 

10. Interest of Directors, Major Shareholders and/or persons connected to them

 

None of the directors, major shareholders and/or persons connected to them has any interest, whether direct or indirect, in the PPA.

 

11. Statement of directors

 

The Board, having taken into consideration all aspects of the PPA, is of the opinion that the PPA is in the best interests of the Company.

 

12. Document for inspection

 

The PPA will be made available for inspection at the registered office of the Company at 1st Floor, Wisma Ho Wah Genting, No. 35, Jalan Maharajalela, 50150 Kuala Lumpur during normal business hours (except public holidays) for a period of three (3) months from the date of this announcement.

 

This announcement is dated 20 May 2020.






Announcement Info

Company Name HO WAH GENTING BERHAD
Stock Name HWGB
Date Announced 20 May 2020
Category General Announcement for PLC
Reference Number GA1-20052020-00031