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Future Plans for Growth:

  • Expansion of Australia operations.

Polymer Link Holding Bhd intends to set up its Australia Warehouse in a leased industrial building. The group plans to use the Australia Warehouse to store the types of manufactured plastic powder that are commonly purchased by its customers in Australia. This can help to reduce the order fulfilment time for customers in Australia from the current 4 weeks to 6 weeks to no more than 1.5 weeks through delivery from the Australia Warehouse. Meanwhile, part of the IPO proceeds will be used as working capital for its Australia operations, which will be used for the purchase of input materials, namely plastic resin. The plastic resin will be allocated for the production of plastic powders for the sale to the group’s customers in Australia, mainly manufactured plastic powder for general applications which is manufactured at its Malaysia Factory. The group intends to use RM5m of its IPO proceeds for the expansion of its Australia operations.

  • Purchase machinery and equipment.

Polymer Link Holding Bhd plans to purchase machinery and equipment that the group plans to install at its Malaysia Factory and Philippines Factory. As at the LPD, the group’s Malaysia Factory has a plastic powder manufacturing capacity of 1,776 kg per hour, which is equivalent to a capacity of 13,466 tonnes per year. The additional plastic powder manufacturing line will have a capacity of 500 kg per hour, which is equivalent to 3,791 tonnes per year. The group will purchase all of these new machinery and equipment within 24 months of the Listing. The group has allocated approximately RM3.6m of its IPO proceeds for the purchase of the new machinery and equipment.

  • Expand sales to customers in Poland.

To expand sales to customers in Poland, the group plans to appoint a representative in the country and allocate additional working capital to purchase plastic resin to manufacture plastic powder targeted for customers in Poland. For FYE 2022, FYE 2023, and FYE 2024, Poland accounted for 5.8%, 3.5%, and 3.6% of its total revenue, respectively. In order to expand sales to customers in Poland, the group intends to allocate additional working capital of approximately RM4.5 million to purchase plastic resin to manufacture plastic powder targeted for customers in Poland.