The Company wishes to announce that a fire incident had occurred at one (1) factory building belonging to RK Resources Co. Ltd. (“RK Resources”), an indirect wholly-owned subsidiary of the Company. RK Resources is a major operating subsidiary of the Company and its subsidiaries (the “Group”). The affected building is located within RK Resources’ manufacturing facilities in the Province of Binh Duong, Vietnam. The affected building houses the assembly and packing line, inventories of work-in-progress and finished goods.

The fire started at 12.30 a.m today, 5 April 2018 and was totally put out at 7.00 a.m. The damage sustained from this fire incident is restricted to only one old building. Other manufacturing facilities of RK Resources were not affected and production activities are running as normal. The estimated loss of this fire incident is USD5.50 million (equivalent to approximately RM21.45 million) of which USD3.00 million (equivalent to approximately RM11.70 million) loss on inventories, USD2.00 million (equivalent to approximately RM7.80 million) on building and USD0.50 million (equivalent to approximately RM1.95 million) on machinery.

The fire department and insurance representatives are still conducting investigation to ascertain the cause of the fire. All the assets are adequately covered by insurance. Sufficient insurance coverage has been taken for consequential business loss.

RK Resources is now assessing the operational and financial impact arising from this incident. RK Resources has also commenced discussion with affected customers to reschedule shipments of finished goods and plans to increase production hours by additional overtime to replenish destroyed finished goods.

The Board will make further announcement whenever there is new development as well as any significant financial impact on the insurance claim.

This announcement is dated 5 April 2018.