On behalf of the Board of Directors of XHH ("Board"), UOB Kay Hian Securities (M) Sdn Bhd ("UOBKH") is pleased to announce that the Company:-

i. had on 10 May 2022, entered into the conditional share sale agreement ("SSA") with Hoon Eel An, Chia Ming How and See Kai Mun (collectively referred to as the "Vendors") for the acquisition by XHH of 355,500 ordinary shares in Micron Metal Engineering Sdn Bhd, representing 79% equity interest in Micron for a purchase consideration of RM19,750,000, to be satisfied via a combination of cash payment of RM16,750,000 and issuance of 10,507,881 new ordinary shares in XHH ("XHH Share(s)" or "Share(s)") at an issue price of RM0.2855 per XHH Share ("Consideration Share(s)") amounting to RM3,000,000, with a put option granted by XHH to the Vendors for the sale of the remaining 94,500 ordinary shares in Micron representing 21% equity interest in Micron ("Option Shares") for a cash consideration of RM5,250,000 ("Put Option"), subject to the terms and conditions contained in the SSA ("Proposed Acquisition"); and

ii. proposes to undertake a diversification of the existing principal activities of XHH and its subsidiaries ("XHH Group" or the "Group") to include the manufacturing of precision machining components and parts ("Precision Machining Business") ("Proposed Diversification").

The Proposed Acquisition and the Proposed Diversification shall collectively be referred to as the "Proposals".

Further details of the Proposals are set out in the attachment enclosed.

This announcement is dated 10 May 2022.