VS Industry Beehad shareholders have approved the bonus issue of uo to 395.7 million free new warrants on the basis of 1 warrant for 10 existing VS shares at the extraordinary general meeting ("EGM") held today. The Warrants shall have a tenure of two years.

Speaking after the conclusion of its EGM, Managing Director of VS, Datuk S.Y. Gan said,"VS appreciates our shareholders' continued support hence, this Proposed Bonus Issue of Warrants is an alternative way to reward them, in addition to our regular dividends. Issued at no cost to our shareholders, the Proposed Bonus Issue of Warrants gives them the opportunity to increase their equity participation in the Group by exercising them at a pre-determined price over the tenure of the Warrants."

"Moving forward, we are embarking on a new growth chapter. The progressive uptrend in orders from our customers is expected to continue. Additionally, our value chain enhancement initiatives are gaining healthy traction, which strengthens our capabilities as a vertically integrated EMS provider and enhances our profit margins."

"Meanwhile, the Group's venture into the Philippines to expand our operations has been charting good progress. Just last week, we secured new orders with an aggregate value of RM1.5 billion over the next 2 financial years. VS is confident on this front, which is supported by our asset-light strategy. We target to commence mass production by the first quarter of 2025. Overall, it is exciting times ahead for VS and we are upbeat on the prospects," Datuk S.Y. Gan further added.

Last week, the Group's wholly owned subsidiary, VS Industry Philippines, Inc. ("VSIP"), has secured new orders from a key customer ("Customer") to manufacture selected consumer electronics products on box-build assembly basis, that is, provision of end-to-end processes from production to assembly, testing, packaging, labelling and logistics arrangement.

The expected revenue contribution from the Customer based on the recurring nature of the orders is RM0.3 billion for the financial year ending 31 July 2025 ("FY25") and RM1.2 billion for the financial year ending 31 July 2026 ("FY26"). This is derived from anticipated sales volume and pricing, bringing the aggregate expected revenue over the next 2 financial years to be RM1.5 billion.

The Proposed Bonus Issue of Warrants is expected to be completed by 3rd quarter of 2024 barring any unforeseen circumstances and subject to receipt of all required approvals.