Corporate digest

Micro-Mechanics(Holdings)

THE company has reduced operational activities at its factories in Penang and California to a minimum following government measures to combat the spread of the novel coronavirus.

Micro-Mechanics' Penang operations have been allowed to continue at a minimal level despite Malaysia's movement control order. This is because the government regards semiconductors as being part of the supply chain of essential goods.

In the US, public health officers in some of California's counties announced a legal order for residents to shelter at home for three weeks from March 17.

Micro-Mechanics' Santa Clara factory falls under an exemption in the order and has been permitted to perform minimum basic operations.

The reduced operations at both factories are not expected to affect Micro-Mechanics' customers in other markets.

Hyflux

HYFLUX on Thursday said it has received a letter of interest (LOI) from Spain-based water management firm FCC Aqualia for a potential transaction involving Hyflux or its assets. It did not disclose further information.

Last October, before Hyflux signed the restructuring agreement with potential white knight Utico, the Middle-Eastern utility firm had claimed that Aqualia, as well as Europe's Suez Group, were eyeing Hyflux's Algeria project.

Separately, creditors of Hyflux and three of its subsidiaries will vote on the schemes of arrangement for Utico's rescue package on April 22 and 23 this year.

Before that, the Securities Investors Association (Singapore) will conduct its own independent town hall sessions on March 23 for the retail holders of the perpetual securities and preference shares.

Mary Chia Holdings

CATALIST-LISTED Mary Chia on Thursday said it will close all its outlets in Johor and Kuala Lumpur till March 31 to comply with the Malaysian government's 14-day movement control order. The group said it is "unable to quantify or determine the true extent" of the impact on earnings per share and net asset value per share for the financial year ending March 31, 2020.

LY Corporation

LY CORPORATION, which makes and exports wooden bedroom furniture, has closed its subsidiaries in Malaysia following the ongoing movement control order. In a statement on Thursday, the group said it is still assessing the financial impact at this juncture, as the impact is not only limited to the recent closure, but also to Covid-19's effects on the global economy.

Koda

FURNITURE maker Koda on Thursday said has temporarily closed its factories in Senai, Johor to comply with Malaysia's movement control order. The estimated value of production for its operations during the restriction is around US$600,000, accounting for less than 1 per cent of group revenue for the financial year ended June 30, 2019, it said.

KLW Holdings

Doormaker KLW Holdings has temporarily ceased production at its Johor factory till March 31 in light of Malaysia's movement control order.

This will affect order shipments to customers that were originally scheduled during the effective period, said KLW in a statement on Thursday.

The group added that the current restriction - and any extension thereof for a "prolonged period" of time - will negatively impact its cashflow and financial position, as certain fixed costs such as wages and overheads will need to be paid despite the lack of revenue arising from ceasing operations.