The Board of Directors wishes to announce that the Company’s wholly-owned subsidiary, YFG Engineering Sdn Bhd (“YFGE”) had on 13 December 2018 received the Notice of Termination from Atta Properties Sdn Bhd (“Atta Properties”) for the contract works for the proposed construction and completion of 62 units of Apartments and 38 units of Offices on a 23-storey Building on Lot 71113, Jalan Sultan Azlan Shah, Daerah Barat Daya, Mukim 12, Pulau Pinang (“Project”) for RM40 million.

The notice of termination was served to YFGE owing to some legal and financial issues which currently affect the progress and sub-contractor of the Project on the part of Atta Properties.

The Company is seeking legal and other advices on the above.

This termination is not expected to have any material effect on the earnings, net assets and gearing of the Company and the Group for the financial year ending 30 September 2019 as the Project was at the initial stage of commencement.

This announcement is dated 14 December 2018.