LY Corporation Limited announced that on 5 January 2021, KKM has also directed the closure of 7 factories/warehouses until 11 January 2021. All necessary disinfections, contact tracing, swab tests, quarantine and isolation of persons, where necessary, in relation to the above workers at the abovementioned closed hostels and factories/warehouses have also been carried out via the relevant SOP from KKM. The management has also decided to voluntarily conduct swab tests on all other employees of LY Furniture Sdn Bhd (a wholly-owned subsidiary of LY Corporation Limited), regardless of whether they are close contacts to the quarantined and isolated group. Such tests will be conducted beginning from 6 January 2021. With a majority of the workers currently under quarantined and isolated (857 out of 1,674 workers) and 7 factories/warehouses (out of 21 factories/warehouses) closed, production will be affected. Management is making the necessary contingency plans and adjustments to the production lines/processes while taking into consideration social distancing and other preventive measures for the remaining workers to continue limited production in a safe manner. Management also foresees that the production output of the Group will be affected in the short term and any material financial impact on the Group will be disclosed in due course. The Company will continue to monitor the situation and provide updates on the matter where necessary.