Bursa Malaysia (KLSE) Stock Investment Portal

REPLY TO UMA

We refer to Bursa Malaysia Securities Berhad's letter dated 22 March 2016 in relation to the unusual market activity (“UMA”) of the Company’s shares.

Pursuant to Paragraph 9.11 of the Main Market Listing Requirements (“LR”) of Bursa Malaysia Securities Berhad, the Board of Directors of the Company, after having made due enquiries, wishes to clarify that the Company is not aware of :

Any corporate development relating to the Group’s business and affairs that has not been previously announced that may account for the UMA including those in the stage of negotiation/discussion.Any rumour or report concerning the business and affairs of the Group that may account for the UMA.Any possible explanation to account for the UMA.

The Board wishes to confirm that the Company is in compliance with Paragraph 9.03 of the LR of Bursa Malaysia Securities Berhad on immediate disclosure obligations.

This announcement is dated 22 March 2016.

Stock

Stock: [EKA]: EKA NOODLES BHD

2016-03-22 18:18 | Report Abuse

PETALING JAYA: EKA Noodles Bhd is planning to team up with a Chinese technology partner for the production of sweetener and extraction of rice protein powder in Malaysia.

The noodle maker yesterday signed a Memorandum of Understanding (MoU) with Anhui Huijia Biological Science and Technology Company Limited (HuiJia) for the transfer of technology.

“Liquid fructose has been identified as EKA’s new product, which is a relevant extension to the existing products range, in view of its competencies in sourcing and processing broken rice,” the company said in a statement.

The sweetener has been identified as its new product, which is a relevant extension to the existing products range, in view of its competencies in sourcing and processing broken rice.

The company, formerly known as KBB Resources Bhd, said the new products would enable it to diversify and expand its product range.

“This is a tremendous business opportunity for EKA in view of the ready supply of broken rice in the northern region as well as the ready demand from the processed food and beverage industries in Malaysia and Asean countries for liquid fructose,” EKA group managing director Datuk Seri Chin Seak Huat said.

“Alternative sugar is about 20% to 40% cheaper than the traditional raw sugar. The competitive advantage of our new product is really dependent on the highly volatile raw sugar price and our economic of scale of our production line for this product,” he added.

Chin said EKA plans to tap into soft drinks market in Malaysia and the Asean region by forming partnership.

Based on the preliminary research compiled by the company, the market size of soft drinks in Asean countries is worth more than US$18bil (RM79.2bil) in 2012 and is expected to grow to US$27bil (RM119bil) in 2017.

“The rice protein powder, the by-product from liquid fructose production, has great potential given that it has high demand from the poultry and livestock farming as well as aqua farming in the Asean region.

“In view of the growing health-conscious population at large, we anticipate the demand for natural sweetener to gain more popularity compared to artificial sweetener moving forward. As such, EKA will be well positioned to tap into such opportunities,” Chin said.