1.      Introduction

The Board of Directors of Xin Hwa Holdings Berhad (“XHH” or “Company”) is pleased to announce that the Company’s wholly-owned subsidiary, Xin Hwa Trading & Transport Sdn. Bhd. (“XHTT”) has on 19 March 2016 been awarded and accepted a contract from Pelabuhan Tanjung Pelepas Sdn. Bhd. (“PTP”) for the supply of labour, prime mover and trailer services for depot operation and Inter Terminal Transfer at Pelabuhan Tanjung Pelepas (“Contract”).  

2.      Duration of the Contract

The duration of the Contract is for five (5) years, effective from 1 April 2016 to 31 March 2021.

3.      Value of the Contract

The value of the Contract is dependent on the volume of services required by PTP with a total estimated Contract value of approximately RM24.90 million for 5 years.

4.      Financial Effect of the Contract

The Contract will have no effect on the issued and paid-up capital of the Company but is expected to contribute positively towards the Group's earnings and net assets per share for the financial year ending 31 March 2017.

5.      Risk Factors

Risk factors affecting the Contract include execution risks such as availability of skilled manpower, changes in political, economic and regulatory conditions. Throughout the years, XHTT has established its track record and expertise to perform such services. Notwithstanding this, the Company and XHTT shall ensure strict compliance to the safety and operational procedures in the execution of the Contract requirements.

6.      Directors’ and Substantial Shareholders’ Interest

None of the Directors or substantial shareholders of XHH or person connected with them have any interest, whether direct or indirect, in the aforesaid Contract.

7.      Directors’ Statement

The Board of Directors of XHH is of the opinion that the acceptance of the Contract is in the best interest of XHH.

A copy of the press release in relation to the acceptance of award of Contract and other matters is attached.

This announcement is dated 21 March 2016.