The Board of Directors of TASCO wishes to inform the status of the outstanding related party receivables as at 30 June 2019 as set out below:

The related party receivables outstanding for more than 12 months were in relation to the transactions entered with the oversea agents of NYK and YUSEN Group for the international air freight and sea freight shipments. Due to the various operation complications and disputes in some of these shipments, the Group was delayed in settling the outstanding debts. The management will continue to follow up on the status of the case and will take appropriate action to recover the outstanding amounts.

The Group is expecting to recover the aforesaid related party receivables by 31 December 2019.