1. INTRODUCTION

The Board of Directors (“the Board”) of New Hoong Fatt Holdings Berhad (“NHF” or “the Group”), wishes to announce, pursuant to Paragraph 9.19(46) of the Main Market Listing Requirements of Bursa Malaysia Securities Berhad, that a revaluation update has been conducted on the Group’s Property, Plant and Equipment and Investment Properties (“Revaluation”). The Revaluation is not subject to approvals of the shareholders of NHF or any regulatory authorities.

2. PURPOSE OF REVALUATION

The Revaluation was carried out to ascertain the market value of the Group’s Property, Plant and Equipment and Investment Properties for accounting purposes. The revaluation of the Property, Plant and Equipment was conducted in compliance with Malaysian Financial Reporting Standard (“MFRS”) 116 and the revaluation for Investment Properties was carried out in compliance with MFRS 140.

3. REVALUATION SURPLUS

The details of the revaluation surplus are set out in the Appendix A attached herein.

Valuations dated 3 December 2018 had been conducted by two (2) registered valuers, KPH Property Consultants (KL) Sdn Bhd in Malaysia and Andreas Parlindungan Siregar in Indonesia on the Group’s Property, Plant and Equipment and Investment Properties (freehold land and building, long term leasehold land and building) by reference to the open market value based on existing use basis and cost approach method respectively.

4. EFFECT OF THE REVALUATION SURPLUS ON THE NET ASSET PER SHARE

A revaluation surplus of RM31.6 million had been incorporated into the Group’s Property, Plant and Equipment and Investment Properties for the financial period ended 31 December 2018. The revaluation surplus (net of tax) that was recognised in the Statement of Financial Position as Revaluation Reserve amounted to RM24.6 million for the Property, Plant and Equipment and RM0.9 million for the Investment Properties in the Retained Earnings. As a result, the consolidated net assets value per share of the Group increased by RM0.31 in the current financial year.

5. DOCUMENTS AVAILABLE FOR INSPECTION

Copies of the valuation update and reports are available for inspection at the registered office of NHF at Level 2, Tower 1, Avenue 5, Bangsar South City, 59200 Kuala Lumpur during normal office hours on a working day for a period of three (3) months from the date of this announcement.

This announcement is dated 25 February 2019.