In view of the growth in the E&E and semiconductor sectors as described in Section 5.2 of this Circular, our Group foresees an increase in its production, and therefore requires to increase its smelting capacity to cater to the expected demand. Our Board proposes to utilise RM4.4 million of the proceeds raised from the Proposed Private Placement to fund the purchase of 1 unit of rotary alloy furnace to enhance our Group’s smelting capacity. Upon the completion of installation of the new alloy furnace, which is expected to complete by fourth quarter of financial year 2022, our Group’s smelting capacity is expected to increase from 2 MT per day to 6 MT per day.