3M Meeting_WW41_Production Final2

[Audio] Good afternoon, For Production Update Highlight the strong performance of BESB production this week, with zero quality issues, high yields meeting above targets, and 100% delivery for Audio and Air Cond Controller to customer Perodua. Production engineers are actively improving assembly DFM or design for manufacturing improvement for the EV or P01A parts and for the new SUV or D66B infotainment, ready for the mass production in November 2025. Design for Manufacturing tool is being used daily for all the process steps enhancement from the R&D stage to actual production eliminating mistakes, using po ka yo ke approach and kaizen approach systematically. Quality first mind set is part of production zero defect initiatives. DFM issues currently on TBOX having software bugs whereby issues on charging not complete, remote function, VIN Number not complete and Auto Wake Up feature intermittent. For Wireless Charger is on improving on the software to have IC Version detection to prevent wrong IC version being used. For USB Charger having form fit issues on PCB to Plastic Part tolerancing improvement. D66B DFM improvement taken on standardized from 5 screw types down to 2 types, which will improve production efficiency and on going to improve work method on cover installation, 2 jigs to 1 jig and improve from RND design having component very close to the edge of PCB to correct this by having clearance to prevent damage during mass production. Team also has successfully conducted trial for night shift with small crew of 8 person running SMT without any issues. On another note, Quality performance with ZERO TESIAR and we have passed the TUV R10 audit by TUV Rheinland on 6 and 7 Oct specific to Bezza Low Grade units which requested by Perodua. OEE, Yield , Cost and Delivery are under good performance, well within targets..

[Audio] Next slide on Sanshin Performance , for October PO, qty to build is 11K units to ship by end of October. Month to date has complete 4900 units. Sanshin focus to drive cost down by shutting down SMT line due to new business at this moment. Looking forward, SoundMax will ramp to double capacity from 10K to 20K in December. Speedtech PO for October, given to another company as Speedtech has not response on our proposed agreement. No clarity if we can get NOVEMBER PO. Another potential is Questwood and due to 30% local content requirement, will need to get feedback from Questwood whether possible to do this which we also propose whether we can do PCBA and LED assembly in Sanshin as well. Now pending Questwood to response. Sanshin current challenge is the the financial P&L of estimated further losses close to RM300K for October. Really need to expedite new customer, new business to break even hopefully by December. Overall Sanshin maintains the good yield, zero quality and 100% delivery performance for existing good customers such as JASM, JP Lintec and SoundMax. Additional note on JASM production shutdown due to material shortage, whereby corrosion protection compound, one of the two parts which is Hardener is zero stock. Team is expediting the delivery in 2 weeks, mistake on stock count which this Part A and Part B were removed from system, change to manual ordering due to cost control back in early 2024. This has been corrected already and automated safety stock trigger..

[Audio] Next slide on the strategic focus areas for the next two weeks: For Sanshin is critical to drive business growth, to have clear direction upon visit to Yibang on early November. SoundMax preparing to double the shipment in December to 20K units. For Questwood New Opportunity, proposal for Sanshin to setup the empty phase 2 floor space, target that Questwood can allow for the 30% local content and gain a value add whereby Sanshin can do the PCBA as well as LED assembly from the chip preparation, die bond, wire bond, lens or phosphor assembly until testing. Other focus area is on BESB final assembly automation development projects to boost productivity and cost efficiency (higher thru put and lower headcount). Another is the Upgrading Sanshin infrastructure on the class 10K clean room, board paper is ready for approval. This is aligned to get ready for Medical product as well as the potential Optic PCBA requirement for mass production. For the flexi lines , high mix low volume – PSS area and Shikino area have been cleared to enable for the flexi line setup. Continuing people development initiatives like DOE training 2nd class for BESB and Sanshin completed last week for total of 24 engineers. After the DOE or Design of Experiment class complete in Week 44, I will do the next training class on Analytical Statistics, Anova and MPCPS, machine process capability study for the young engineers in both BESB and Sanshin . Retention programs activity, complete the 3rd committee meeting to go through areas of concern: Salary, Medical Benefits, Career Growth, Work Culture, Appraisal System Transparency. Will share more from the coming brainstorming with the team on proposal moving forward..

[Audio] Here in this slide on Questwood part breakdown, there is a PCBA and LED assembly where we can propose if these can be done in Sanshin to meet the 30% local content for the CO requirement..

[Audio] This slide is on the Flexi Line Low Volume High Mixed, plan to have multi skill operators to manage several product type. Thus, will keep our cost low..

[Audio] Update on the clean room class 10K, propose vendor is VC whom has built BESB clean room before. Cost is RM996K. This is the end of the presentation. Thank you.