We refer to our announcement made on 9 April 2019 in relation to Lease-To-Own Agreement ('Lease Agreement') entered between the Company and Smart Goldyear Sdn. Bhd. ('SGSB') ('Announcement'), unless otherwise defined, the definitions set out in the Announcement shall apply herein.

The Board wishes to announce that the Company has on 10 April 2020 entered into a deed of mutual termination with SGSB and both parties have mutually agreed to terminate the Lease Agreement ('Mutual Termination') on the ground that SGSB is unable to continue the lease of the Properties.

Pursuant to the Mutual Termination, SGSB shall return the possession of the Properties to the Company. Neither of the parties have any further rights or obligation and each party hereby releases the other party from the due performance and observance of all its obligations and covenants under the Lease Agreement.

The Mutual Termination is expected to have an estimated gross impact of increasing the net assets and earnings of DWL Group for the financial year ending 30 June 2020 by RM1.295 million (i.e. being the gross lease rental received during the lease period prior to the Mutual Termination). The Mutual Termination will not have any effect on the issued share capital and the substantial shareholders’ shareholdings of DWL.

This announcement is dated 10 April 2020.