1. Introduction

Reference is made to the article entitled "China JV repositions Aemulus in semiconductor test market” (page 26), appearing in The Edge Malaysia, issued on 2 August 2021.

It was quoted in the article "Recently, Aemulus secured a 3½ year contract worth US$5 million from a Chinese firm - a top six global CIS player that is backed by Will Semiconductor Co Ltd Shanghai to collaborate in developing a CIS specific tester model for the China market".

The Board of Directors of Aemulus wishes to clarify that the 5600 series test system developed by Aemulus in 2019 will be the test solution to meet the Complementary Metal Oxide Semiconductor (“CMOS”) Image Sensors (“CIS”) market demand.

The Board of Directors of the Company wishes to inform that Aemulus Corporation Sdn. Bhd. (“ACSB”), a wholly-owned subsidiary of the Company had on 16 June 2021, entered into a Purchase Agreement with a new customer based in China for the purpose of matters related to the delivery of the Group’s 5600 series test systems over 3.5 years, subject to the receipt of purchase orders (the “Contract”).

The revenue from this Contract shall be recognised progressively upon delivery of the systems.

2. Salient terms

The following are the salient terms of the Contract:-

(i) The delivery of the 5600 series test systems is spread across 3.5 years depending on the size of order and time frame specified by customer.

(ii) Scope of works will involve but not limited to product design and customization, provide technical support for system integration and modules; and

(iii) The total estimated value of the Contract is approximately USD5 million or RM22 million for the abovementioned duration.

3. Financial effects

The Contract is expected to contribute positively to earnings of the Company for the next 3 years.

The Contract is not expected to have any material effect on the net assets per share of the Company for the financial year ending 30 September 2021. The Contract will not have any effect on the share capital and shareholding structure of Aemulus.

4. Risks

Risk factors affecting the Contract include execution risks such as availability of skilled manpower and materials, changes in prices of materials, changes in political, economic and regulatory conditions. Throughout the years, Aemulus has established its track record and expertise to undertake such projects. Notwithstanding this, Aemulus shall ensure strict compliance with safety and operational procedures in the execution of the Contract requirements.

5. Directors’ and Major Shareholders’ Interest

None of the Directors, major shareholders and person connected to them has any interest, direct or indirect, in the Contract.

This announcement is dated 4 August 2021.