Ho Wah Genting Berhad announced that it had on 11 January 2021 entered into a Memorandum of Understanding (MOU) with Chongqing iSIA BIO-Technology CO.,LTD to establish a basis of co-operation and collaboration between the Parties for the purposes of manufacturing and producing in vitro products. The salient terms of the MOU are, amongst others, as follows: HWGB and ISIA are desirous of collaborating to manufacture and produce in vitro diagnostic products. The Parties agree that further details of the collaboration including production matters and specifications shall be determined upon further discussion and shall be incorporated into the Definitive Agreement which shall then supersede the MOU. RATIONALE OF THE MOU: HWGB has a subsidiary in Indonesia, PT Ho Wah Genting which is capable of undertaking the manufacturing of in vitro diagnostic products at its facility located in Batam. With the collaboration with ISIA, HWGB will be able to manufacture and sell in vitro diagnostic products and expand market penetration globally. DURATION OF THE MOU: The MOU remains valid and effective for twelve (12) months from the date of the MOU or terminated by the execution of a definitive agreement which shall then supersede the MOU. Early termination is allowed by either party giving notice to terminate. In the event of termination, the term governing confidentiality and publicity of the MOU shall remain binding and enforceable notwithstanding the termination of the MOU. FINANCIAL EFFECTS OF THE MOU: The MOU is not expected to have any material effect on the earnings per share, net assets per share, gearing, share capital and substantial shareholders’ shareholding of the Company for the financial year ending 31 December 2021. Should the business materialize, it is expected to contribute positively to the future earnings of the Group. RISK FACTORS: The Company does not expect any material risk arising from the MOU as further details of the collaboration including production matters and specifications shall be determined upon further discussion.