Further to our announcements of 12 November 2020 and 16 November 2020 ("Announcements"), unless otherwise stated, all abbreviations and definition used herein shall have the same meanings as those defined in the Announcements.

Salcon wishes to furnish additional information to question number 2 and 3 of Bursa Malaysia Securities Berhad's letter dated 13 November 2020 as follows:-

2. The total capital and investment outlay to be incurred by JREMT for the additional 12 production line (“Expansion”), its sources of funding (including the breakdown) and to quantify the portion to be borne by Salcon Berhad and/or NJSB.

The proposed funding for the additional 12 production lines of RM150 million is to be financed by the mix of the bank borrowings to be raised by JREMT and the shareholders advances proportionately to its shareholdings. The quantum of the shareholders advances is only to be determined after the finalisation of bank borrowings. The initial estimation of the total amount to be borne by Salcon Berhad via shareholder’s advance is RM15 million.

3. The current production capacity and output of JREMT and the expected production capacity and output after the Expansion.

The current production capacity and output of JREMT are 336 million pieces annually while the expected production capacity after the expansion is 3.05 billion pieces annually. The expected output after the expansion will depend on the global demand of gloves at that time.

This announcement is dated 18 November 2020.