At 12.05pm, the electronics manufacturing service provider had pared some of its loss, sliding 2.5 sen or 10.2% to 22 sen, giving it a market capitalisation of RM259.66 million.

The company said its units JABCO Filter System Sdn Bhd and Winsheng Plastic Industry Sdn Bhd (WSP) had received the notices of termination in relation to referred supplier contract for components/materials supply, a framework agreement for goods/services supply, and equipment loan contracts.

The effective date of the terminations is March 31, 2023, “or such dates as agreed by the parties”.

ATA IMS said product sales represented 100% of JABCO’s revenue and 82% of WSP’s revenue. Collectively, Dyson product sales made up about 42% of the group’s revenue for the six months ended Sept 30.

It will discuss with Dyson to purchase back stocks amounting to RM60 million as of Sept 30, to ensure they can be cleared before March 31, 2023, and identify purchase orders for materials and components that are non-cancellable for a delivery date beyond March 31, 2023.

“Due to the termination of the contracts, certain tenancy agreements for leasing of the production plant, warehouse, and hostel may need to be reviewed for downsizing purposes,” it said in a stock exchange filing recently.