KUALA LUMPUR, March 18, 2024 – Ge-Shen Corporation Bhd (Ge-Shen), a leading
contract manufacturer has entered a non-binding term sheet to acquire 60 per cent
stakes each in Amity Research & Development Sdn Bhd (ARD), an engineering and
consultancy services provider in the E&E industry and Amity Technical Services &
Consultancy (M) Sdn Bhd (ATSCM), a manufacturer specializes in printed circuit
board assembly (PCBA), product box building, and cable and wire assembly.

The said acquisitions will incur a cost of RM13.5 million for the Company, which will
be entirely funded through internally generated funds and bank borrowings.
The proposed acquisition involved purchasing 60,000 shares of ARD and 300,000
shares of ATSCM from the existing shareholders, Pak Yue Leong, Tan Chung Ken,
Tan Guan Lai, Tan Khay Leang, Tan Kooi Loon, and Teh Sheh Chien.
Upon signing the term sheet, the company is expected to execute the share sales
agreement within 60 days, with full payment to be completed within 3 months
following the execution of the agreement.

The Company said the acquisition is expected to be completed by the third quarter of
2024.

Based on audited statements, ARD achieved RM 0.44 million of PAT, while ATSCM
attained RM 1.73 million of profit after tax (PAT) for the financial year ending 31st
December 2022.

The purchase justification is based on a price-to-earnings ratio of 4.5 times derived
from a minimum PAT of RM3.0 million per year for the targeted companies, totalling
RM6 million for the guaranteed period of FYE 31 December 2024 and 2025.
“This proposed acquisition will expand Ge-Shen’s scale of operations and facilitate the
group’s presence in such a market. It is also in line with the group’s objective of
acquiring strategic stakes in companies involved in high value-added industries with
potential for future growth,” the Company said.

The Bursa main market-listed company is actively pursuing its growth and
diversification strategy into the electronic manufacturing services (EMS) sector with
the recent M&A activities, positioning itself well for a tech upcycle in the coming
quarters.

KUALA LUMPUR, MAR 4, 2024 – Contract manufacturer Ge-Shen (the Company) is seeking
to acquire a 40% stake in Local Assembly Sdn Bhd, an electronic manufacturing service
provider, for RM48 million, indicating the Group’s expansion into the EMS market.
In a bourse filing today, Ge-Shen has proposed to enter into a share sale agreement (SSA)
with the 3 co-founders of Local Assembly Sdn Bhd (LA) to acquire 400,000 ordinary shares.
The co-founders of LA are Chai Voon Sun (37.5% interest), Gurmakh Singh A/L Ajmer Singh
(22.5%) and Wee Thian Song (15%).

As part of the terms stated in SSA, Ge-Shen is guaranteed a minimum Profit After Tax (PAT)
of RM24 million from LA for FYE24 and FYE25.

Ge-Shen said the purchase consideration is in line with the Company’s objective of being a
globally recognised engineering and manufacturing solutions provider.

The Board believes the acquisition will complement the existing business, enabling crossmarketing of products with diverse designs and specifications to a broader clientele. This will
also drive synergistic value across the Company through shared technology know-how.
Of the RM48 mil purchase price, 30% (RM14.4 mil) will be funded via bank borrowings and
the remaining 70% (RM33.6 mil) will be funded via the proceeds to be raised from the
proposed private placement stated in the same filing.

Meanwhile, the Company proposes a private placement of up to 39,478,700 ordinary shares,
equivalent to a maximum of 30% of the issued capital. Proceeds will fund the said acquisition,
repayment of bank borrowings and utilise as working capital.

On the financial front, Ge-Shen noted that the impact of the acquisition on its gearing could
only be determined based on the final breakdown of the funding sources to finance the
acquisition.

The anticipated completion of the proposed acquisition is slated for the second half of 2024.
Ge-Shen will hold an extraordinary general meeting to seek shareholder approval for the
proposals in accordance with Paragraph 10.13(1) of the Main Market Listing Requirements
(MMLR).

Local Assembly started operations in 2000 as a manufacturer of electronic, electrical and
plastic injection moulded components and subcontract assembler of electrical appliances and
equipment. Local Assembly’s primary markets encompass Malaysia and Singapore. In fiscal
year 2022, ending December 31, 2022, the company achieved a PAT of RM20.52 million,
propelled by a revenue of RM131.78 million.

Ge-Shen posted a net profit after tax and non-controlling interest of RM5.87 million in the
fourth quarter ended 31st December 2023 (Q4FY2023), compared to the previous year. This
quarter’s profit is notably the highest since Q4 of FY16.

For the full year ended Dec 31 (FY2023), Ge-Shen’s earning before interest tax depreciation
and amortisation and unrealised foreign exchange (“EBITDAF”) expanded 7.5% to RM29.65
million from RM27.59 million, while revenue climbed 1.1% to RM256.31 million from RM253.61
million.

Precision engineering company Polyplas Sdn Bhd, part of the Ge-Shen Corporation will be at the Compamed 2022 in Dusseldorf! We look forward to learn more about your technical semi-finished parts and assembled products; including high-volume medical parts in a 100K Cleanroom injection moulding environment.

Come talk to us, as we continue to grow our manufacturing presences in the medical industry!

We will be at Hall 8B/A32 & A33. Do come and look for us!

Want to connect during the Compamed? Try email us at info@gscorp.com.my.

About Ge-Shen Corporation / Polyplas Sdn Bhd

Ge-Shen Corporation (Subsidiaries include Ge-Shen Plastic, Polyplas, Ge-Shen Vietnam and Demand Options) is in the South-East Asian region specialising in plastic and metal components manufacturing and assembly services. We have capabilities in mould design, fabrication, stamping, injection moulding, surface finishing and subassembly. We serve many business sectors including Home & Lifestyle, Industrial, Office Automation & Data Storage, Medical, Life Science & Dental and Audio.  

We focus on bringing our customers’ ideas to life. With our engineering expertise, Ge-Shen aims to deliver a hassle-free uncompromised experience, letting our customers focus on designing and selling their products.

Ge-Shen Group continually invests in technical capabilities, automation, infrastructure, and staff. We also look to offering services in more locations around the world, broadening our geographical reach. Ge-Shen Group has a combined workforce of over 1,330 staff across 4 factories located in Malaysia and Vietnam and a global sales location in Singapore.

Ge-Shen Corporation Berhad is listed on the main market of Bursa Malaysia Securities Berhad.

Ge-Shen Plastic (M) Sdn Bhd was one of the 14 companies that exhibited with MATRADE to showcase our capabilities in precision engineering, injection molding and assembly services.

Also during the Fair, Malaysia showcased its capabilities in recycled ocean-bound plastic products – this was spoken of by our very own Trade Commissioner in Europe – Ms. Zuhaila Sedek.

KUALA LUMPUR, Oct 26 (Bernama) — Malaysia is showcasing its strength in supplying recycled ocean-bound plastics at KFair 2022, through its Malaysia Pavilion led by the Malaysia External Trade Development Corporation (MATRADE). 

KFair 2022, acknowledged as the world’s leading plastics and rubber trade fair, runs from Oct 19 to Oct 26, 2022 in Dusseldorf, Germany. 

The Malaysia Pavilion comprises 14 participating companies offering recycled ocean-bound plastic products offered by Malaysian companies, including Heng Hiap Industries Sdn Bhd, Respack Sdn Bhd and Poly Edge Sdn Bhd.

MATRADE’s Trade Commissioner based in Frankfurt, Zuhaila Sedek said the Malaysia Pavilion has been gaining strong traction due to the availability of recycled ocean-bound plastic product producers.

“As one of Southeast Asia’s economic powerhouses, Malaysia is a strong proponent of plastic circularity and we continue to encourage our Malaysian companies to venture into the ocean-bound plastics certification programme as there is a growing demand in this segment,” she said in a statement today.

Zuhaila said growing the number of producers of recycled ocean-bound plastic products would also influence positive changes in Malaysia’s industrial ecosystem.

— BERNAMA

Once again we will be coming to see you at the K-Fair in Dusseldorf! We look forward to learn more about your technical semi-finished parts and assembled products.

We will be at Hall 8B/H70. Do come and look for us!

Want to connect during the K fair? Try making an appointment here. Or email us at info@gscorp.com.my.

About Ge-Shen Corporation

Ge-Shen Corporation (Subsidiaries include Ge-Shen Plastic, Polyplas, Ge-Shen Vietnam and Demand Options) is in the South-East Asian region specialising in plastic and metal components manufacturing and assembly services. We have capabilities in mould design, fabrication, stamping, injection moulding, surface finishing and subassembly. We serve many business sectors including Home & Lifestyle, Industrial, Office Automation & Data Storage, Medical, Life Science & Dental and Audio.  

We focus on bringing our customers’ ideas to life. With our engineering expertise, Ge-Shen aims to deliver a hassle-free uncompromised experience, letting our customers focus on designing and selling their products.

Ge-Shen Group continually invests in technical capabilities, automation, infrastructure, and staff. We also look to offering services in more locations around the world, broadening our geographical reach. Ge-Shen Group has a combined workforce of over 1,330 staff across 4 factories located in Malaysia and Vietnam and a global sales location in Singapore.

Ge-Shen Corporation Berhad is listed on the main market of Bursa Malaysia Securities Berhad.

When dealing with food-contact or food storage plastics especially in injection moulding, safety is of utmost priority! That is one of the reason why a NEBB certified 100K Cleanroom and Control room injection moulding facility is required to protect the food storage products we produce from contamination such as dust, chemical, mildew, bacteria, or other containments that degrades product quality.

Cleanrooms are sealed off from the rest of the facility via kitting rooms and changing rooms. All personnel who work in a cleanroom are required to adhere to a strict standard operating procedures including wearing of shoe cover, suits and hairnet. The cleanroom itself is fitted with technology and equipment to ensure temperature and humidity control, as well as HEPA filters and control systems to ensure optimal & clean air flow in the cleanrooms.

Control rooms are less stringent but also adopt certain standard operating procedures to ensure product quality. Cleanliness is maintain at the highest level, thereby eliminating the majority of containments that compromise product quality especially for food-contact plastics.  By creating a clean environment for production, we offer our customers a peace of mind.

In Ge-Shen Class-8 Cleanroom in Penang and Johor, a positive air flow is maintained through control systems to ensure particulates compliance with the ISO 14644-1 standard, in particular:

• There can be 3,520,000 particulates >= .5 micrometers per cubic meter of air.
• There can be 832,000 particulates >= 1 micrometer per cubic meter of air.
• There can be 29,300 particulates >= 5 micrometers per cubic meter of air.

If you are looking for high quality injection moulding partner for your food storage and food-contact products, contact us now at info@gscorp.com.my!

About Ge-Shen

Founded in 1995, Ge-Shen celebrates its 25th year as a precision injection moulding contract manufacturer this year. Ge-Shen has great experience in high-precision, injection moulding for audio products with great emphasis on aesthetics. In recent years, the company started diversifying into different industries with a focus on the medical, life sciences, food, home and lifestyle product sectors. To meet client demand, Ge-Shen has made large investments in upgrading its facilities. Ge-Shen has ISO 9001 and ISO 13485 certified locations across Malaysia and Vietnam. The company specializes in top-of-the-line products at competitive prices.

For more information, please contact us at info@gscorp.com.my

Ge-Shen, a B2B leader in design, development and technology-driven manufacturing products for clients globally, has successfully obtained certification for a new 4,863 sq. ft. 100K cleanroom facility. The first certified ISO Class-8 (FED STD 209E – 100K) cleanroom in Penang was built in 2019 and this facility is 3 times bigger, with 18 injection moulding machines, ranging from 60 tonnes to 200 tonnes within it.

This cleanroom is destined to cater to its growing client base, especially in the US and Europe region but also locally in Johor and entire Malaysia. This 100K cleanroom injection moulding facility in Johor will boost Ge-Shen’s ability to serve medical customers better.

National Environmental Balancing Bureau (NEBB) cleanroom certified to 100K (100,000 particle count and below) based on ISO14644:2015 standards, the cleanroom has airflow of 20 cycles per hour. Temperature is controlled at 25c +/- 1c with a relative humidity of 60% +/- 5%. The room is designed with minimum dead corners, external material feeding and vacuum-operated feed system, to minimize material movement.

Individuals are required to wear protective clothing like hairnets, face masks, gloves, smock and shoe cover to maintain the highest safety and quality standards at all times. With good design and equipment that controls temperature and humidity fitted with HEPA filters that eliminates airborne particles, Ge-Shen is able to produce high quality parts in a dust free environment, twenty-four hours a day, seven days a week.

The investment in the cleanroom follows the successful ISO13485 certification in July 2020, and is a testimony of Ge-Shen’s commitment to continuously improve itself.

“The successful certification of the 100K Cleanroom is the start of a very exciting journey. We are also currently training to be certified in ISO22000 for Food Safety Management, Good Manufacturing Practice (GMP), and Hazard Analysis Critical Control Point (HACCP) – and aiming to complete training by the end of June 2021.

“Increased demand and enquires for medical injection, moulding, and facilities capable to handle food related products led to the decision to invest in this upgrade and expand our operations nearly 6 months ago. Today it has become reality. All thanks to the dedicated teams at Ge-Shen for working tirelessly and ensuring zero disruptions on day-to-day operations, while also overseeing the design and implementation of the renovations.

“We are still hungry for growth. Since the start of the pandemic, we have increased our machine capacity by more than 20% in our Johor plant alone. With the additional injection moulding machines in our Johor plant, we are looking to better meet the needs of current strategic partners and grow new partnerships with customers across the US, especially in the medical, life sciences, food, home and lifestyle product sectors.”

Louis Lau, Executive Director of Ge-Shen Corporation Berhad

Apart from a Cleanroom, Ge-Shen has also renovated its facility to include a 13,535sqft control room. This control room has also the ability provide clean and dust-free environment, suitable for food-related, household and medical products.

About Ge-Shen

Founded in 1995, Ge-Shen celebrates its 25th year as a precision injection moulding contract manufacturer this year. Ge-Shen has great experience in high-precision, injection moulding for audio products with great emphasis on aesthetics. In recent years, the company started diversifying into different industries with a focus on the medical, life sciences, food, home and lifestyle product sectors. To meet client demand, Ge-Shen has made large investments in upgrading its facilities. Ge-Shen has ISO 9001 and ISO 13485 certified locations across Malaysia and Vietnam. The company specializes in top-of-the-line products at competitive prices.

For more information, please contact Louis Lau, Executive Director of Ge-Shen Corporation at louis@gscorp.com.my