The Company wishes to inform that it was notified by JPMHL’s office in China on 25 November 2020 that a liquidation order was granted by Jilin Province City of Changchun Intermediate People’s Court via a Civil Ruling and was served on JPMHL, at its office address at No. 823 Xi’an Road, Chaoyang District, Changchun, 130061, Jilin Province by Beijing Ding Yuen Group (“the Plaintiff”).

The Company hereby furnishes the information below for public release:-

1.         The Liquidation Order which was granted on 17 November 2020 in Jilin Province City of Changchun Intermediate People’s Court (“the Court”), was forwarded and served via courier service on JPMHL by the Court at its office address at No. 823 Xi’an Road, Chaoyang District, Changchun, 130061, Jilin Province and Jilin Province Yangtze River Bankruptcy Liquidation Services Co. Ltd was appointed as the administrator of JPMHL (“Administrator”).

2.         On 20 January 2014 and 17 April 2014, Plaintiff and JPMHL had entered into agreements where the Plaintiff advanced a sum of RMB7,000,000 (“Advance”) to JPMHL. Because JPMHL withheld the repayment of the Advance due to a dispute, the Plaintiff then filed a legal proceeding at the People’s Court of Chaoyang District, Changchun City to recover the Advance made to JPMHL.

3.         On 26 December 2016, the Plaintiff obtained a judgment granted by the People’s Court of Chaoyang District, Changchun City against JPMHL for the advance of RMB7,000,000 together with interest and cost of RMB120,000.

4.         JPMHL is not a major subsidiary of TTB under the definition of Chapter 1 of the Main Market Listing Requirements of Bursa Malaysia Securities Berhad and the net cost of investment in JPMHL is RM34,127,992 as at 31 March 2020.  

5.         There is no material financial and operational impact on TTB Group arising from the liquidation order and appointment of the Administrator, as JPMHL had already ceased its hotel operation since 2014.

6.         Based on the latest available valuation of the assets of JPMHL, the recoverable value of the assets is expected to exceed the liabilities of JPMHL and as such the Company does not foresee any losses.

7.         JPMHL was negotiating a settlement with the Plaintiff in January 2020. However, our Malaysian representative in China was back to Malaysia in February 2020 and had been unable to return to China even until now due to travel restrictions caused by the global Covid-19 pandemic. The Plaintiff then proceeded to obtain the liquidation order against JPMHL. JPMHL is seeking legal advice to appeal against the liquidation order and at the same time is negotiating with the Plaintiff for an amicable settlement.

This announcement is dated 25 November 2020.