We refer to the above news article appearing on the Edge Malaysia on 12 April 2021.

Pursuant to Rule 9.09 & 9.10 of the ACE Market Listing Requirements of Bursa Malaysia Securities Berhad (“Bursa Securities”) [“ACE Market LR”], the Company wishes to clarify the following:

The Company’s principal activity is in investment of both quoted and unquoted securities. As such, pursuant to the ACE Market LR and Capital Market and Services Act 2007 (“CMSA 2007”), the Company is mandated to hold shares in other public listed companies. FINTEC only owns stakes in these companies which does not entitle FINTEC to exercise control over the management and affairs of these companies.

Furthermore, the trading of marketable securities is part of the Company’s ordinary course of business. As such, it is incorrect to suggest or imply that the funds or assets of the Company are passed around, and in the process, transferring funds as well as stated in the said article as follows:

“According to people with knowledge of the operations of the companies, assets within the group are passed around, and in the process, transferring funds as well. For instance, in January this year, XOX surfaced as a substantial shareholder in DGB Asia. In July last year, Fintec Global ceased to be a substantial shareholder in DGB Asia after selling out of the company. In January this year, ATS acquired an 18-acre land parcel from Seacera for RM10.5 million. Fintec Global, as stated above, has 28.29% in ATS and 19.17% in Seacera.”

The Company wishes to clarify that FINTEC did not cease to be a shareholder of DGB Asia. As at 22 January 2021, DGB Asia undertook various corporate exercises which resulted in FINTEC’s percentage of shareholding in DGB Asia being diluted.

The said article quoted that “In September last year, The Edge ran a special report on the same group, entitled “Hidden Hands Behind Penny Stock Surge. Back then, sources say, the group had gained control – either via shareholding or the board – of 36 companies, out of which 21 were identified. Now, the number of companies under the group is understood to have ballooned to 60. At the centre of the web is Fintec Global, while the flagship company of the group is Focus Dynamics, a company which has a market value of more than RM3 billion, but which, for its financial year ended December 2020, registered a mere RM16.72 million in net profit from RM66.26 million in revenue. According to the notes accompanying Focus Dynamic’s results, the profit was attributable to “fair value gain on quoted investment”, among others. As at end-2020, Focus Dynamics had accumulated losses of RM419.92 million, making it hard to justify its market capitalisation of more than RM3 billion, which grants it a place on the MSCI Index.” The Company wishes to clarify that the rise in the share price and market capitalisation is beyond the control of listed companies and are volatile depending on the market sentiment amongst other external factors.

The said article quoted that “Almost all the companies in the Group also undertake cash calls via placements, supposedly to acquire assets, and issue new shares. Among those in the stable that have undertaken such exercises are ATS, Vsolar and Fintec Global, taking advantage of Bursa Malaysia’s relaxation of rules for private placements, with the limit raised to 20% of issued share capital from 10% previously, and allowing a 30% quantum for placements if shareholders approve such an exercise……Fintec Global’s share capital more than quadrupled to 3.37 billion shares as at mid-March this year, from 745.56 million as at January 2020.” The Company wishes to clarify that all corporate exercises including private placements undertaken by the Company were implemented in accordance with the ACE Market LR and CMSA 2007 and other relevant rules and regulations. The funds arising from these exercises are at all times secured and placed with licensed and regulated financial institutions. The Company has also announced the intended utilisation of proceeds arising from the relevant corporate exercises or private placements which are at all times were for the sole purpose of the Company’s businesses approved by the shareholders.

The Company wishes to also highlight that all public listed companies in Malaysia are under the constant scrutiny of the authorities including but not limited to Bursa Securities and Securities Commission Malaysia. There are no queries on irregularities of the share price or trading volume of the Company’s quoted securities during this period. The financials statements of the Company are independently audited and inspected by independent external auditor prior to its release to the public shareholders.

The announcement is dated 23 April 2021.