The Board of Directors of Chuan Huat Resources Berhad (“CHRB” or the “Company”), wishes to announce that, pursuant to Paragraph 9.19 (46) of the Main Market Listing Requirements of Bursa Malaysia Securities Berhad, that CHRB and its subsidiary companies (the “Group”) had undertaken a valuation exercise (“Valuation”) on the properties of the Company’s Non-Current Asset, Investment Property (“IP”) and Property, Plant & Equipment (“PPE”).. The Valuation is not subject to approval of any regulatory authorities. 

The Board of Directors of CHRB had on 27 February 2019 approved the incorporation of the revaluation surplus in the unaudited financial statement of CHRB for the fourth quarter ended 31 December 2018.  

PURPOSE 

The revaluation was carried out on a regular basis to reflect the fair value of the Group’s IP & PPE in accordance of the Group’s accounting policy and is in compliance with the Malaysian Financial Reporting Standards (“MFRS”) 140 for the valuation of IP and MRFS 116 for valuation of PPE. 

REVALUATION SURPLUS 

The details of the revaluation surplus/(deficit) are set out in the Appendix A attached herein. The Valuation was conducted by a registered valuer, Raine & Horne International Zaki + Partners Sdn. Bhd. by reference to the open market value based on existing use basis. 

At the consolidated level, a revaluation surplus of RM51.814 million has been incorporated into the unaudited financial statement of CHRB for the fourth quarter ended 31 December 2018. 

The revaluation surplus is recognised in the Statement of Comprehensive Income as revaluation surplus for Property, Plant and Equipment amounting to RM10.551 million and in the Statement of Financial Position the revaluation reserve for Investment Property was RM41.263 million, net of deferred tax of RM2.163 million arriving at the net revaluation reserve of RM39.125 million. The consolidated net assets value per share of CHRB based on the unaudited results of the Group will be increased to RM1.88 for the fourth quarter ended 31 December 2018. 

Copies of the valuation reports are available for inspection at the registered office of CHRB at Wisma Lim Kim Chuan, Lot 50A Jalan 1/89B, 3½ mile off Jalan Sungai Besi, 57100 KUALA LUMPUR during normal business hours on a working day for a period of three (3) months from the date of this announcement. 

The announcement is dated 27 February 2019.