1.0       INTRODUCTION

Pursuant to Paragraph 9.19(46) of the Main Market Listing Requirements of Bursa Malaysia Securities Berhad, the Board of Directors of Encorp wishes to announce that Encorp had appointed the following independent professional valuers to undertake the revaluation exercise on properties held by Encorp Group:

• IM Global Property Consultants Sdn Bhd undertakes the valuation exercise on the properties as detailed under items 3.0(a) below; and
• Property Valuation & Advisory (WA) Pty Ltd undertakes valuation exercise on the properties as detailed under item 3.0(b) below.

(IM Global Property Consultants Sdn Bhd and Property Valuation & Advisory (WA) Pty Ltd are collectively referred to as “Valuers”).

The Board had on 31 March 2021 approved the valuation reports from the Valuers and the incorporation of the revaluation deficit and impairment arising from the revaluation of investment properties and land held for development in the fourth quarter unaudited financial results of Encorp for the year ended 31 December 2020.

 2.0       PURPOSE OF THE REVALUATION

The purpose of the revaluation exercise is to ascertain the fair value of the properties in accordance with MFRS 140 and value of inventories to be measured at lower of cost and net realisable value in accordance with MFRS 102 inventories.

3.0       REVALUATION DEFICIT

The details of the revaluation arising from the properties revaluation exercise are set out below:

4.0       DATE OF VALUATION

The date of valuation for the properties as detailed under items 3.0(a) is 31 December 2020 whilst the date of valuation for the property as detailed under item 3.0(b) is 23 December 2020.

 5.0       EFFECT ON NET ASSETS PER SHARE

The recognition of revaluation deficit and impairment loss of RM20.2 million has resulted a decrease in net assets per share attributable to parent of the Group from RM1.21 to RM1.15 for the financial year ended 31 December 2020.

 6.0       DOCUMENTS AVAILABLE FOR INSPECTION

The valuation reports are available for inspection at the registered office of the Company at No. 45-1, Jalan PJU 5/21, Pusat Perdagangan Kota Damansara, Kota Damansara PJU 5, 47810 Petaling Jaya, Selangor Darul Ehsan during normal business hours from Monday to Friday (except public holidays) for a period of 3 months from the date of this announcement.

This announcement is dated 31 March 2021.