1. INTRODUCTION

Pursuant to Paragraph 9.19(23) of the Main Market Listing Requirement of Bursa Malaysia Securities Berhad, Ho Wah Genting Berhad ("HWGB" or "the Company") wishes to announce that the Company has incorporated a new wholly-owned subsidiary, HWGB EV Sdn Bhd (“HWGB EV”) in Malaysia under the Companies Act, 2016 on 19 February 2021 (“Incorporation”).

2. INFORMATION OF THE INCORPORATION

The issued capital of HWGB EV is RM100 with 100 ordinary shares in issued.  The intended principal activity of HWGB EV is to engage in the business as dealers in, distributors and/or sellers of particularly but not restricted to assembled electric motor vehicles or motor vehicles of all descriptions.

3. EFFECTS OF THE INCORPORATION

On incorporation, HWGB holds 100% of the total number of issued shares of HWGB EV.

4. FINANCIAL EFFECTS

The Incorporation will not have any material effect on the earnings per share, net assets per share, gearing, share capital and substantial shareholders’ shareholding of HWGB and Group for the financial year ending 30 April 2021.

5. RATIONALE

The Incorporation mainly to facilitate the Group’s business expansion plans.

6. INTERESTS OF DIRECTORS AND/OR SUBSTANTIAL SHAREHOLDERS AND/OR PERSON CONNECTED TO THEM

None of the directors and/or substantial shareholders of the Company, and/or persons connected to such director and/or substantial shareholders have any interest, direct or indirect, in the Incorporation.

7. STATEMENT BY BOARD OF DIRECTORS

The Board of Directors of the Company having considered all aspects of the Incorporation is of the opinion that the Incorporation is in the best interest of the Company.

8. APPROVAL REQUIRED

The Incorporation is not subject to the approval of the shareholders of the Company.

This announcement is dated 22 February 2021.