General Announcement::COVID-19 Updates - Resumption of Business Operations

LY CORPORATION LIMITED

Company Registration no. 201629154K (Incorporated in the Republic of Singapore)

COVID-19 UPDATES - RESUMPTION OF BUSINESS OPERATIONS

The Board of Directors (the "Board") of LY Corporation Limited (the "Company" and together with its subsidiaries, the "Group") refers to the Company's announcements dated 27 May 2021 and 1 June 2021 in relation to the tighter movement control order between 25 May 2021 and 31 May 2021 where the Group was only allowed to operate at 60% of its overall manpower capacity and the full movement control order ("FMCO") which led to the temporary closure of the Group's operations since 1 June 2021.

The Board is pleased to announce that the Group has received the approvals from the relevant authorities and has resumed operations. As at the date of this announcement, LY Furniture Sdn Bhd, our wholly owned subsidiary, with 40% fully vaccinated staff is allowed to operate its factories at 60% capacity with effect from 27 August 2021 while Leyo Manufacturing Sdn Bhd, a 51%-owned subsidiary, with 60% fully vaccinated staff are allowed to operate its factories at 80% capacity with effect from 30 August 2021. Our factories will be able to resume full operations when our staff are 80% fully vaccinated.

As disclosed in the profit guidance announcement made on 26 August 2021 ("Profit Guidance Announcement"), the Group is expected to report a loss for the first-half financial period ended 30 June 2021 ("1H2021") as the Group registered lower revenue for 1H2021 due to, amongst others, the temporary full/partial closure of the Group's operations in January 2021 and for the period since 25 May 2021.

The Group's revenue for July 2021 and August 2021 were also affected by the FMCO. Accordingly, the Group expects its financial performance for the second half of the financial year ending 31 December 2021 to be affected. However, as the COVID-19 situation in Malaysia is still evolving and the Malaysian government may implement further measures to curb the spread of COVID-19, the Company is currently unable to quantify the extent of the financial impact of the COVID-19 measures on the earnings per share and net asset value per share of the Group for the financial year ending 31 December 2021.

The Company will make further announcements to update shareholders when there are material updates as may be necessary or appropriate.

Shareholders and potential investors are reminded to exercise caution when dealing or trading in the securities of the Company and should consult their stockbrokers, bank managers,

solicitors, accountants or other professional advisers if they are in doubt about the actions that they should take.

BY ORDER OF THE BOARD

Tan Yong Chuan

Executive Director and Chief Executive Officer

30 August 2021

This announcement has been prepared by LY Corporation Limited (the "Company") and its contents have been reviewed by the Company's sponsor, Xandar Capital Pte Ltd (the "Sponsor") for compliance with the relevant rules of the Singapore Exchange Securities Trading Limited (the "SGX-ST") Listing Manual Section B: Rules of Catalist.

This announcement has not been examined or approved by the SGX-ST and the SGX-ST assumes no responsibility for the contents of this announcement, including the accuracy, completeness or correctness of any of the information, statements or opinions made or reports contained in this announcement.

The contact person for the Sponsor is Ms Pauline Sim, Head of Corporate Finance, at 3 Shenton Way, #24-02, Shenton House, Singapore 068805, telephone [phone].