(Unless otherwise stated, the abbreviations and definitions used throughout this announcement shall be the same as those previously defined in the previous announcement)

In response to the queries of Bursa Malaysia Securities Berhad in relation to our announcement dated 27 October 2017 on the Proposed Acquisition, the following are the additional information:-

1. Quantification of the market value placed on Land 1 and Land 2 by the valuer.

Based on the valuation certificates issued by Cheston International (Johor) Sdn. Bhd. on 25 October 2017, Land 1 and Land 2 were appraised at the market value of RM15 million each.

2. Particulars of all liabilities, including contingent liabilities and guarantees to be assumed by XHTT, arising from the Proposed Acquisition.

At this stage, save and except for the costs and expenses related to the relocation of squatters on Land 2, there are no other liabilities, including contingent liabilities and guarantees to be assumed by XHTT arising from the Proposed Acquisition.

3. to 5. Estimated total development cost of the warehouse and open yard (“Development”), expected commencement date and completion date of the Development and sources of funds by XHTT to finance the development cost.

The Company has not worked out a detailed plan on the construction of warehouse and open yard as the Proposed Acquisition is still at its preliminary stage where the Conversion is expected to take at least 6 months and relocation of squatters on Land 2 needs at least 12 months. The Proposed Acquisition still subject to uncertainties as in the event the Conversation or relocation of squatters on Land 2 could not be satisfied by the Vendor, the Proposed Acquisition might be called off.

Further, the estimated cost and duration of the Development would be very much depending on the type of warehouse to be built, which has yet to be decided at this stage as the Company would need to consider various factors such as the demand of the market, type of goods to be stored, clientele, etc. in deciding the structure and design of warehouse to be built.

As to the sources of funds to finance the Development, it is most likely that it would be financed through a combination of internally generated funds and bank borrowings. The exact mix of the internally generated funds and bank borrowings will only be determined after having a concrete construction plan and after taking into consideration the gearing level, interest costs as well as internal cash requirements for the business operations of the Company and its group of companies at that future time.

This announcement is dated 31 October 2017.