We refer to the announcement made on 24th January 2019 with reference number GA1-24012019-00053 and also the announcement on 25th. June 2019 with reference number GA1-25062019-00067.

We wish to refer to the Loan Agreement signed on 23rd January 2019 between Minho (M) Berhad (“MINHO”) with Euro-CGA Sdn. Bhd. (“ECSB”). MINHO has provided ECSB a term loan of Ringgit One Million (RM1 million) at interest rate of 8.4% per annum for six months period effective from 23rd January 2019. ECSB will eventually repay MINHO, a total of Ringgit One Million Forty Two Thousand (RM1, 042,000.00) inclusive interest. The due date of the term loan is on the 22nd July 2019.

In June 2019, MINHO has accepted ECSB’s application to extend the tenure of the term loan for a period of six months from 22nd. July to 22nd. December 2019 with interest rate charged remain at 8.4% per annum. This shall be referred to as the First Extension of the term loan.

On the 21st. November 2019, MINHO has received from ECSB an amount of Ringgit Two Hundred Thousand (RM200, 000.00) as partial payment of the term loan together with a letter appealing for a further extension of the term loan for another six months, from 22nd. December 2019 to 21st. June 2020 (“Second Extension”). In their appeal, ECSB has stated that they currently facing some constraint in their cash flow. This is in view of the current slow market for timber and also the forthcoming of long Christmas and New Year Holidays of which most of their buyers had requested them to postpone shipment in order to avoid arriving during festival period.

ECSB also appealed to MINHO to reduce the loan interest rate charged in line with the reduction in base lending rate charged by the financial institution which is currently at 6.5% per annum as compared to 6.9% per annum at the date the loan agreement was signed. MINHO has accepted ECSB’s appeal and agreed that ECSB shall make full settlement of the balance of the term loan amounting to Ringgit Eight Hundred Thousand (RM800, 000.00 ) by or before 21st. June 2020.MINHO also agreed to reduce the term loan interest rate from 8.4% per annum to 8% per annum.

Dated this 25 November 2019.