Material Information

2021-06-08

YFY reports on behalf of the subsidiary, Yuen Foong Yu Paper MFG (Yangzhou) Co., Ltd., the fire incident of the No. 1 mill’s warehouse

1.Date of occurrence of the event:2021/06/08
2.Cause of occurrence:
There was a fire incident found in the Company’s subsidiary, Yuen Foong
Yu Paper MFG (Yangzhou) Co., Ltd. The fire was happened in the finished
goods warehouse of No.1 mill.
3.Handling procedure:
Last night about 9:20 pm, the factory staff found a fire in the finished
goods warehouse, and immediately used the factory fire-fighting equipment
and called firefighters to the factory to deal with the fire, firefighters
arrived at about 9:30 pm, and at about 11:00 pm to control the fire. The
fire completely put out at 6:00 am on 6/8.
The fire incident happened in the finished goods warehouse of No. 1 mill
and did not spread to other parts of the plant. No. 1 mill was temporarily
shut down due to the investigation of local fire regulations, while No. 2
and 3 mills remained in normal operation.
4.Anticipated possible loss:
The preliminary estimate including the finished goods warehouse and
inventory does not exceed RMB 9 million.
There were no injuries or fatalities.
5.Amount of insurance claims that might be obtained:
The product and the building are insured for fire insurance and further
negotiations with the insurance company will be conducted to settle
the claim.
6.Improvement status and future countermeasures:
The fire was put out a while ago and the cause of the incident is still
under investigation. Due to the warehouse is located independent area
and does not affect other area of the Yangzhou plant, and the fire does
not cause any injury or death of the staff. There was no significant
impact on the production and operation of the plant and no significant
impact on the Company's operation and finance.
7.Any other matters that need to be specified:None.