Reference is made to the article titled “Proposed
Diversification” appeared in Sin Chew Daily on 14 December 2020 (“Article”).
Pursuant to the said Article, the Company wishes to provide further clarification to
some of the contents stated therein.
Firstly, the USD300 million order book involves the supply of various products, namely
ultra-capacitors and super batteries, out of which approximately USD230 million is
attributable to the KONE contract. Based on the cost structure relative to the selling
price of these products, an average gross margin of approximately 40% could be derived
therefrom.
Apart from the above, there is potentially another USD250 million worth of prospective
contracts involving the supply and installation of ultra-capacitors and super batteries,
which are currently under negotiation. Notwithstanding that, the Company has been
consistent with the position that its challenge is getting its production lines ready
for its current KONE contract and that any conclusion to the negotiations for those new
contracts will have to be after the production capacity is resolved.
Should operational reformation and revamp plans progress according to schedule, revenue
contribution from the ultra-capacitors and super batteries business will account for
approximately 20% of the overall Group’s consolidated revenue, including that of its
metallurgical coke, for financial year ending 2021.
This announcement is dated 17 December 2020.
