KUALA LUMPUR: AT Systematization Bhd's (ATS) unit, AT Glove Engineering Sdn Bhd (AGESB) has entered into a provisional offtake agreement (POA) with Kstar Healthcare Sdn Bhd (KSTAR) to promote, market and sell AGESB's medical glove product to China and Taiwan.
In an exchange filing today, ATS said upon signing the POA, the representatives will develop a protocol for communications between the parties and an action plan to promote their joint interests to the customer.
"AGESB shall manufacture and assemble the products in accordance with the specifications and supply and deliver to KSTAR.
"The products in such quantities as are required to fulfil purchase orders issued by KSTAR from time to time," it said.
Upon receiving the purchase order(s), AGESB shall provide confirmation to KSTAR on the purchase order(s) and any deposit to be paid to AGESB.
"The products consist of the product with specification and packaging, developed, manufactured, fully assembled and packaged by AGESB, which may be modified from time to time and the products may be added or removed with the written approval of an authorised representative of each party."
With the signing of the POA, the group said it will not only be able to broaden its products offering to its customers via the promoting and marketing of the products, but also to expand its customers to China and Taiwan under KSTAR.
"The execution of POA will not have any effect on the share capital and the substantial shareholders' shareholding of ATS.
The execution of POA is not expected to have any material effect on the earnings per share, net assets per share and gearing for the financial year ending March 31, 2021.
"Barring any unforeseen circumstances, the execution of POA is expected to contribute positively to the future earnings of ATS group once the Products have been marketed, sold and distributed by KSTAR."